XML 51 R35.htm IDEA: XBRL DOCUMENT v3.6.0.2
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of Classification of Investments and Certain Other Assets and Liabilities Measured at Fair Value on Recurring Basis and Investments Measured at NAV

The following tables present, as of December 31, 2016 and 2015, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient:

 

 

 

December 31, 2016

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV (a)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Equities

 

 

39,509

 

 

 

-

 

 

 

1,508

 

 

 

-

 

 

 

41,017

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

25,316

 

 

 

-

 

 

 

-

 

 

 

7,125

 

 

 

32,441

 

Debt

 

 

74,591

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

74,597

 

Equity

 

 

188,229

 

 

 

-

 

 

 

-

 

 

 

39

 

 

 

188,268

 

Private equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

122,421

 

 

 

122,421

 

Derivatives

 

 

-

 

 

 

1,993

 

 

 

-

 

 

 

-

 

 

 

1,993

 

Total

 

$

327,645

 

 

$

1,993

 

 

$

1,508

 

 

$

129,591

 

 

$

460,737

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

4,482

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

4,482

 

Contingent consideration liability

 

 

-

 

 

 

 

 

 

 

22,608

 

 

 

 

 

 

 

22,608

 

Derivatives

 

 

-

 

 

 

182,223

 

 

 

-

 

 

 

-

 

 

 

182,223

 

Total

 

$

4,482

 

 

$

182,223

 

 

$

22,608

 

 

$

-

 

 

$

209,313

 

 

 

 

December 31, 2015

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV (a)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

535

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

535

 

Equities

 

 

43,558

 

 

 

-

 

 

 

1,276

 

 

 

-

 

 

 

44,834

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

45,135

 

 

 

-

 

 

 

-

 

 

 

22,465

 

 

 

67,600

 

Debt

 

 

67,128

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

67,134

 

Equity

 

 

197,745

 

 

 

-

 

 

 

-

 

 

 

42

 

 

 

197,787

 

Private equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

100,219

 

 

 

100,219

 

Derivatives

 

 

-

 

 

 

1,048

 

 

 

-

 

 

 

-

 

 

 

1,048

 

Total

 

$

354,101

 

 

$

1,048

 

 

$

1,276

 

 

$

122,732

 

 

$

479,157

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

3,239

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

3,239

 

Derivatives

 

 

-

 

 

 

195,689

 

 

 

-

 

 

 

-

 

 

 

195,689

 

Total

 

$

3,239

 

 

$

195,689

 

 

$

-

 

 

$

-

 

 

$

198,928

 

 

(a)

Represents certain investments measured at NAV or its equivalent as a practical expedient in determining fair value. In accordance with current accounting guidance, these investments have not been classified in the fair value hierarchy. See Note 3 for additional information.
Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the years ended December 31, 2016, 2015 and 2014:

 

 

 

Year Ended December 31, 2016

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses Included In Earnings (a)

 

 

Purchases/

Acquisitions

 

 

Sales/

Dispositions/

Settlements

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,276

 

 

$

248

 

 

$

-

 

 

$

-

 

 

$

(16

)

 

$

1,508

 

Total Level 3 Assets

 

$

1,276

 

 

$

248

 

 

$

-

 

 

$

-

 

 

$

(16

)

 

$

1,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

-

 

 

$

32,725

 

 

$

19,950

 

 

$

(30,067

)

 

$

-

 

 

$

22,608

 

Total Level 3 Liabilities

 

$

-

 

 

$

32,725

 

 

$

19,950

 

 

$

(30,067

)

 

$

-

 

 

$

22,608

 

 

 

 

Year Ended December 31, 2015 (b)

 

 

 

 

 

 

 

Net  Unrealized/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized

 

 

 

 

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

Gains /Losses

 

 

 

 

 

 

 

 

 

 

Currency

 

 

 

 

 

 

 

Beginning

 

 

Included In

 

 

Purchases/

 

 

Sales/

 

 

Translation

 

 

Ending

 

 

 

Balance

 

 

Earnings (a)

 

 

Acquisitions

 

 

Dispositions

 

 

Adjustments

 

 

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,315

 

 

$

14

 

 

$

-

 

 

$

-

 

 

$

(53

)

 

$

1,276

 

Total Level 3 Assets

 

$

1,315

 

 

$

14

 

 

$

-

 

 

$

-

 

 

$

(53

)

 

$

1,276

 

 

 

 

Year Ended December 31, 2014 (b)

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses Included In Earnings (a)

 

 

Purchases/

Acquisitions

 

 

Sales/

Dispositions

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,340

 

 

$

19

 

 

$

-

 

 

$

(1

)

 

$

(43

)

 

$

1,315

 

Total Level 3 Assets

 

$

1,340

 

 

$

19

 

 

$

-

 

 

$

(1

)

 

$

(43

)

 

$

1,315

 

 

(a)

Earnings recorded in “other revenue” for investments in equities for the years ended December 31, 2016, 2015 and 2014 include net unrealized gains of $243, $14 and $19, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the year ended December 31, 2016 include unrealized losses of $2,658 and realized losses of $30,067 due to the change in the fair value of contingent consideration associated with the Edgewater business acquisition.

(b)

The tables for the years ended December 31, 2015 and 2014 reflect the retrospective application of new disclosure guidance adopted by the Company for investments using NAV or its equivalent as a practical expedient when measuring fair value. See Note 3.
Financial Instruments Not Measured at Fair Value

Financial Instruments Not Measured at Fair Value—The tables below present the carrying value, fair value and fair value hierarchy category of certain financial instruments as of December 31, 2016 and 2015 that are not measured at fair value in the Company’s consolidated statement of financial condition, and excludes certain financial instruments such as equity method investments.

 

 

 

December 31, 2016

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

 

 

 

 

Carrying Value

 

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,158,785

 

 

$

1,158,785

 

 

$

1,158,785

 

 

$

-

 

 

$

-

 

Deposits with banks and short-term

   investments

 

 

419,668

 

 

 

419,668

 

 

 

419,668

 

 

 

-

 

 

 

-

 

Cash deposited with clearing

   organizations and other segregated

   cash

 

 

29,030

 

 

 

29,030

 

 

 

29,030

 

 

 

-

 

 

 

-

 

Interest-bearing financing receivables

 

 

76,133

 

 

 

78,072

 

 

 

-

 

 

 

-

 

 

 

78,072

 

Interest-bearing deposits (included within

   investments)

 

 

456

 

 

 

456

 

 

 

456

 

 

 

-

 

 

 

-

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and other customer payables

 

$

472,283

 

 

$

472,283

 

 

$

472,283

 

 

$

-

 

 

$

-

 

Senior debt

 

 

1,188,600

 

 

 

1,204,171

 

 

 

-

 

 

 

1,204,171

 

 

 

-

 

 

 

 

December 31, 2015

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

 

 

 

 

Carrying Value

 

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,132,083

 

 

$

1,132,083

 

 

$

1,132,083

 

 

$

-

 

 

$

-

 

Deposits with banks and short-term investments

 

 

389,861

 

 

 

389,861

 

 

 

389,861

 

 

 

-

 

 

 

-

 

Cash deposited with clearing

   organizations and other segregated

   cash

 

 

34,948

 

 

 

34,948

 

 

 

34,948

 

 

 

-

 

 

 

-

 

Interest-bearing financing receivables

 

 

81,774

 

 

 

82,573

 

 

 

-

 

 

 

-

 

 

 

82,573

 

Interest-bearing deposits (included within

   investments)

 

 

54,885

 

 

 

54,885

 

 

 

54,885

 

 

 

-

 

 

 

-

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and other customer payables

 

$

506,665

 

 

$

506,665

 

 

$

506,665

 

 

$

-

 

 

$

-

 

Senior debt

 

 

989,358

 

 

 

993,999

 

 

 

-

 

 

 

993,999

 

 

 

-

 

 
Fair Value of Certain Investments Based on NAV

The following tables present, at December 31, 2016 and 2015, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

 

 

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Liquidation Period of

Investments Not Redeemable

 

 

Investments

Redeemable

 

 

Fair Value

 

 

Unfunded

Commitments

 

 

 

% of

Fair Value

Not

Redeemable

 

 

%

Next

5 Years

 

 

%

5-10

Years

 

 

%

Thereafter

 

 

Redemption

Frequency

 

Redemption

Notice Period

Alternative investment funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds

 

$

6,190

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

<30-60 days

Funds of funds

 

 

492

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

<30-90 days

Other

 

 

443

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-60 days

Debt funds

 

 

6

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

30 days

Equity funds

 

 

39

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

90,824

 

 

 

9,183

 

(f)

 

 

100

%

 

 

12

%

 

 

33

%

 

 

55

%

 

NA

 

NA

Mezzanine debt

 

 

31,597

 

 

 

-

 

 

 

 

100

%

 

 

-

 

 

 

-

 

 

 

100

%

 

NA

 

NA

Total

 

$

129,591

 

 

$

9,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

weekly (73%), monthly (2%) and quarterly (25%)

(b)

monthly (98%) and quarterly (2%)

(c)

daily (7%) and monthly (93%)

(d)

daily (100%)

(e)

daily (19%), monthly (50%) and quarterly (31%)

(f)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,886 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

 

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Liquidation Period of

Investments Not Redeemable

 

 

Investments

Redeemable

 

 

Fair Value

 

 

Unfunded

Commitments

 

 

 

% of

Fair Value

Not

Redeemable

 

 

%

Next

5 Years

 

 

%

5-10

Years

 

 

%

Thereafter

 

 

Redemption

Frequency

 

Redemption

Notice Period

Alternative investment funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds

 

$

20,410

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

<30-60 days

Funds of funds

 

 

465

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

<30-90 days

Other

 

 

1,590

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-60 days

Debt funds

 

 

6

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

30 days

Equity funds

 

 

42

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

67,895

 

 

 

10,242

 

(f)

 

 

100

%

 

 

18

%

 

 

39

%

 

 

43

%

 

NA

 

NA

Mezzanine debt

 

 

32,324

 

 

 

-

 

 

 

 

100

%

 

 

-

 

 

 

-

 

 

 

100

%

 

NA

 

NA

Total

 

$

122,732

 

 

$

10,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

weekly (23%), monthly (69%) and quarterly (8%)

(b)

monthly (98%) and quarterly (2%)

(c)

daily (20%) and monthly (80%)

(d)

daily (100%)

(e)

daily (18%), monthly (54%) and quarterly (28%)

(f)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $5,501 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.