Net Income Per Share of Class A Common Stock

12 Months Ended

Dec. 31, 2016

Net Income Per Share of Class A Common Stock

17.	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, 2016, 2015 and 2014 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) changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation and, in 2014, 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 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 required to settle share-based incentive compensation and, in 2014, 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 years ended December 31, 2016, 2015 and 2014 are presented below:

	Year Ended December 31,
	2016		2015		2014
Net income attributable to Lazard Ltd - basic	$	387,698	$	986,373	$	427,277
Add - dilutive effect, as applicable, of: Adjustments to net income relating to interest expense and changes to net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, and, in 2014, exchangable interests, net of tax		-		-		581
Net income attributable to Lazard Ltd - diluted	$	387,698	$	986,373	$	427,858
Weighted average number of shares of Class A common stock outstanding		124,635,160		125,294,261		121,942,939
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		135,241		72,011		408,897
Weighted average number of shares of Class A common stock outstanding - basic		124,770,401		125,366,272		122,351,836
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation and in 2014, exchangable interests		7,863,229		7,878,274		11,461,287
Weighted average number of shares of Class A common stock outstanding - diluted		132,633,630		133,244,546		133,813,123
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic	$	3.11	$	7.87	$	3.49
Diluted	$	2.92	$	7.40	$	3.20