18.

NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company’s basic and diluted net income per share calculations for the years ended December 31, 2013, 2012 and 2011 are computed as described below.

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective years, plus applicable adjustments to such net income associated with the inclusion of shares of Class A common stock issuable on a non-contingent basis.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective years, plus applicable adjustments to such shares associated with shares of Class A common stock issuable on a non-contingent basis.

Diluted Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective years as in the basic net income per share calculation described above, plus, to the extent applicable and dilutive, (i) interest expense on convertible debt, (ii) changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt and convertible preferred stock and, on an “as-if-exchanged” basis, amounts applicable to LAZ-MD Holdings exchangeable interests and (iii) income tax related to (i) and (ii) above.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective years as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock to settle share-based incentive compensation, convertible debt, convertible preferred stock and LAZ-MD Holdings exchangeable interests, using the “treasury stock” method, the “if converted” method or the “as-if-exchanged” basis, as applicable.

The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the years ended December 31, 2013, 2012 and 2011 are presented below:


	Year Ended December 31,
	2013		2012		2011
Net income attributable to Lazard Ltd	$	160,212		$84,309		$174,917
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		—		7		284

Net income attributable to Lazard Ltd - basic		160,212		84,316		175,201
Add - dilutive effect, as applicable, of:
Adjustments to income relating to interest expense and changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt, convertible preferred stock and exchangeable interests, net of tax		1,065		371		12,512

Net income attributable to Lazard Ltd - diluted		$161,277		$84,687		$187,713


Weighted average number of shares of Class A common stock outstanding		120,096,305		116,163,821		115,005,676
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		757,962		790,168		3,026,344

Weighted average number of shares of Class A common stock outstanding - basic		120,854,267		116,953,989		118,032,020
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation, convertible debt, convertible preferred stock and exchangeable interests		12,882,812		12,371,633		19,597,505

Weighted average number of shares of Class A common stock outstanding - diluted		133,737,079		129,325,622		137,629,525

Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$1.33		$0.72		$1.48

Diluted		$1.21		$0.65		$1.36