16.

NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company’s basic and diluted net income per share calculations for the three month periods ended March 31, 2014 and 2013 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 three month periods ended March 31, 2014 and 2013 are presented below:


	Three Months Ended March 31,
	2014		2013
Net income attributable to Lazard Ltd	$	80,842	$	15,360
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		–		–

Net income attributable to Lazard Ltd - basic		80,842		15,360
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 and exchangeable interests, net of tax		433		182

Net income attributable to Lazard Ltd - diluted	$	81,275	$	15,542


Weighted average number of shares of Class A common stock outstanding		121,361,210		116,921,983
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		414,997		786,221

Weighted average number of shares of Class A common stock outstanding - basic		121,776,207		117,708,204
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation and exchangeable interests		12,249,784		15,107,356

Weighted average number of shares of Class A common stock outstanding - diluted		134,025,991		132,815,560

Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.66		$0.13

Diluted		$0.61		$0.12