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 and nine month periods ended September 30, 2014 and 2013 are computed as described below.

Basic Net Income Per Share

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

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods 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 required to settle share-based incentive compensation and LAZ-MD Holdings exchangeable interests, using the “treasury stock” 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 and nine month periods ended September 30, 2014 and 2013 are presented below:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2014			2013		2014		2013
Net income attributable to Lazard Ltd		$88,859			$60,282		$254,893		$106,995
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		–			–		–		–

Net income attributable to Lazard Ltd - basic		88,859			60,282		254,893		106,995
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		(3	)		316		604		787

Net income attributable to Lazard Ltd - diluted		$88,856			$60,598		$255,497		$107,782


Weighted average number of shares of Class A common stock outstanding		121,800,294			121,441,956		121,954,428		119,797,545
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		406,620			757,998		412,204		758,502

Weighted average number of shares of Class A common stock outstanding - basic		122,206,914			122,199,954		122,366,632		120,556,047
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		11,359,770			12,042,190		11,356,144		12,617,953

Weighted average number of shares of Class A common stock outstanding - diluted		133,566,684			134,242,144		133,722,776		133,174,000

Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.73			$0.49		$2.08		$0.89

Diluted		$0.67			$0.45		$1.91		$0.81