XML 43 R31.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2017
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 June 30, 2017 and December 31, 2016, 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:

 

 

 

June 30, 2017

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

7

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

7

 

Equities

 

 

43,065

 

 

 

-

 

 

 

3,072

 

 

 

-

 

 

 

46,137

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

15,648

 

 

 

-

 

 

 

-

 

 

 

7,808

 

 

 

23,456

 

Debt

 

 

86,287

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

86,294

 

Equity

 

 

185,987

 

 

 

-

 

 

 

-

 

 

 

47

 

 

 

186,034

 

Private equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

79,036

 

 

 

79,036

 

Derivatives

 

 

-

 

 

 

2,595

 

 

 

-

 

 

 

-

 

 

 

2,595

 

Total

 

$

330,994

 

 

$

2,595

 

 

$

3,072

 

 

$

86,898

 

 

$

423,559

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

4,527

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

4,527

 

Contingent consideration liability

 

 

-

 

 

 

-

 

 

 

25,539

 

 

 

-

 

 

 

25,539

 

Derivatives

 

 

 

 

 

 

176,300

 

 

 

 

 

 

 

-

 

 

 

176,300

 

Total

 

$

4,527

 

 

$

176,300

 

 

$

25,539

 

 

$

-

 

 

$

206,366

 

 

 

 

December 31, 2016

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 
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 three month and six month periods ended June 30, 2017 and 2016:

 

 

 

Three Months Ended June 30, 2017

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses Included In Earnings (a)

 

 

Purchases/

Acquisitions

 

 

Sales/

Dispositions

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,537

 

 

$

(128

)

 

$

1,661

 

 

$

-

 

 

$

2

 

 

$

3,072

 

Total Level 3 Assets

 

$

1,537

 

 

$

(128

)

 

$

1,661

 

 

$

-

 

 

$

2

 

 

$

3,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

25,104

 

 

$

435

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

25,539

 

Total Level 3 Liabilities

 

$

25,104

 

 

$

435

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

25,539

 

 

 

 

Six Months Ended June 30, 2017

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses Included In Earnings (a)

 

 

Purchases/

Acquisitions

 

 

Sales/

Dispositions

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,508

 

 

$

(126

)

 

$

1,661

 

 

$

(8

)

 

$

37

 

 

$

3,072

 

Total Level 3 Assets

 

$

1,508

 

 

$

(126

)

 

$

1,661

 

 

$

(8

)

 

$

37

 

 

$

3,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

22,608

 

 

$

3,180

 

 

$

-

 

 

$

(249

)

 

$

-

 

 

$

25,539

 

Total Level 3 Liabilities

 

$

22,608

 

 

$

3,180

 

 

$

-

 

 

$

(249

)

 

$

-

 

 

$

25,539

 

 

 

 

Three Months Ended June 30, 2016

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses Included In Earnings (a)

 

 

Purchases/

Acquisitions

 

 

Sales/

Dispositions

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,301

 

 

$

7

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

1,298

 

Total Level 3 Assets

 

$

1,301

 

 

$

7

 

 

$

-

 

 

$

-

 

 

$

(10

)

 

$

1,298

 

 

 

 

Six Months Ended June 30, 2016

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses Included In Earnings (a)

 

 

Purchases/

Acquisitions

 

 

Sales/

Dispositions

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,276

 

 

$

10

 

 

$

-

 

 

$

-

 

 

$

12

 

 

$

1,298

 

Total Level 3 Assets

 

$

1,276

 

 

$

10

 

 

$

-

 

 

$

-

 

 

$

12

 

 

$

1,298

 


(a)

Earnings recorded in “other revenue” for investments in equities for the three month and six month periods ended June 30, 2017 and the three month and six month periods ended June 30, 2016 include net unrealized gains (losses) of $(128), $(128), $2 and $5, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month and six month periods ended June 30, 2017 includes unrealized losses of $435 and $3,180, respectively.

Fair Value of Certain Investments Based on NAV

The following tables present, at June 30, 2017 and December 31, 2016, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

 

 

 

June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

6,717

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

<30-60 days

Funds of funds

 

 

515

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

<30-90 days

Other

 

 

576

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-60 days

Debt funds

 

 

7

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

30 days

Equity funds

 

 

47

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

79,036

 

 

 

9,183

 

(f)

 

 

100

%

 

 

15

%

 

 

39

%

 

 

46

%

 

NA

 

NA

Total

 

$

86,898

 

 

$

9,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

weekly (53%), monthly (1%) and quarterly (46%)

(b)

monthly (97%) and quarterly (3%)

(c)

daily (6%) and monthly (94%)

(d)

daily (100%)

(e)

daily (18%), monthly (51%) and quarterly (31%)

(f)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,904 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

 

 

 

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.