10-Q 1 laz-10q_20170630.htm 10-Q laz-10q_20170630.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

001-32492

(Commission File Number)

 

LAZARD LTD

(Exact name of registrant as specified in its charter)

 

 

Bermuda

98-0437848

(State or Other Jurisdiction of Incorporation

(I.R.S. Employer Identification No.)

or Organization)

 

Clarendon House

2 Church Street

Hamilton HM11, Bermuda

(Address of principal executive offices)

Registrant’s telephone number: (441) 295-1422

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes      No  

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer  

Accelerated filer  

Non-accelerated filer    

Smaller reporting company  

 

Emerging growth company  

If the Registrant is an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of July 21, 2017, there were 129,766,091 shares of the Registrant’s Class A common stock outstanding (including 8,157,267 shares held by subsidiaries).

 

 

 

 

 

 


 

TABLE OF CONTENTS

When we use the terms “Lazard”, “we”, “us”, “our” and “the Company”, we mean Lazard Ltd, a company incorporated under the laws of Bermuda, and its subsidiaries, including Lazard Group LLC, a Delaware limited liability company (“Lazard Group”), that is the current holding company for our businesses. Lazard Ltd’s primary operating asset is its indirect ownership as of June 30, 2017 of all of the common membership interests in Lazard Group and its controlling interest in Lazard Group.

 

 

 

 

i


 

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

 

 

 

 

1


 

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2017 AND DECEMBER 31, 2016

(UNAUDITED)

(dollars in thousands, except for per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

955,639

 

 

$

1,158,785

 

Deposits with banks and short-term investments

 

 

756,507

 

 

 

419,668

 

Cash deposited with clearing organizations and other segregated cash

 

 

34,480

 

 

 

29,030

 

Receivables (net of allowance for doubtful accounts of $25,094 and $16,386 at

   June 30, 2017 and December 31, 2016, respectively):

 

 

 

 

 

 

 

 

Fees

 

 

527,470

 

 

 

564,291

 

Customers and other

 

 

127,269

 

 

 

73,991

 

 

 

 

654,739

 

 

 

638,282

 

Investments

 

 

421,727

 

 

 

459,422

 

Property (net of accumulated amortization and depreciation of $307,080 and $286,001

   at June 30, 2017 and December 31, 2016, respectively)

 

 

200,301

 

 

 

209,021

 

Goodwill and other intangible assets (net of accumulated amortization of $61,771 and

   $60,080 at June 30, 2017 and December 31, 2016, respectively)

 

 

389,216

 

 

 

382,024

 

Deferred tax assets

 

 

1,113,528

 

 

 

1,075,777

 

Other assets

 

 

243,625

 

 

 

184,499

 

Total Assets

 

$

4,769,762

 

 

$

4,556,508

 

 

See notes to condensed consolidated financial statements.

 

2


 

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2017 AND DECEMBER 31, 2016

(UNAUDITED)

(dollars in thousands, except for per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits and other customer payables

 

$

829,993

 

 

$

472,283

 

Accrued compensation and benefits

 

 

378,279

 

 

 

541,588

 

Senior debt

 

 

1,189,489

 

 

 

1,188,600

 

Tax receivable agreement obligation

 

 

512,834

 

 

 

513,610

 

Deferred tax liabilities

 

 

8,966

 

 

 

9,168

 

Other liabilities

 

 

547,488

 

 

 

537,446

 

Total Liabilities

 

 

3,467,049

 

 

 

3,262,695

 

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred stock, par value $.01 per share; 15,000,000 shares authorized:

 

 

 

 

 

 

 

 

Series A - no shares issued and outstanding

 

 

-

 

 

 

-

 

Series B - no shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock:

 

 

 

 

 

 

 

 

Class A, par value $.01 per share (500,000,000 shares authorized;

   129,766,091 shares issued at June 30, 2017 and December 31, 2016,

   including shares held by subsidiaries as indicated below)

 

 

1,298

 

 

 

1,298

 

Additional paid-in-capital

 

 

673,242

 

 

 

688,231

 

Retained earnings

 

 

1,166,026

 

 

 

1,134,186

 

Accumulated other comprehensive loss, net of tax

 

 

(277,785

)

 

 

(314,222

)

 

 

 

1,562,781

 

 

 

1,509,493

 

Class A common stock held by subsidiaries, at cost (8,160,804 and 7,628,786

   shares at June 30, 2017 and December 31, 2016, respectively)

 

 

(319,755

)

 

 

(273,506

)

Total Lazard Ltd Stockholders’ Equity

 

 

1,243,026

 

 

 

1,235,987

 

Noncontrolling interests

 

 

59,687

 

 

 

57,826

 

Total Stockholders’ Equity

 

 

1,302,713

 

 

 

1,293,813

 

Total Liabilities and Stockholders’ Equity

 

$

4,769,762

 

 

$

4,556,508

 

 

 

See notes to condensed consolidated financial statements.

 

3


 

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2017 AND 2016

(UNAUDITED)

(dollars in thousands, except for per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment banking and other advisory fees

 

$

410,275

 

 

$

286,609

 

 

$

745,191

 

 

$

551,752

 

Asset management fees

 

 

293,879

 

 

 

241,397

 

 

 

566,803

 

 

 

475,128

 

Interest income

 

 

1,609

 

 

 

1,168

 

 

 

3,263

 

 

 

2,540

 

Other

 

 

24,183

 

 

 

17,468

 

 

 

52,109

 

 

 

27,338

 

Total revenue

 

 

729,946

 

 

 

546,642

 

 

 

1,367,366

 

 

 

1,056,758

 

Interest expense

 

 

12,766

 

 

 

11,962

 

 

 

26,722

 

 

 

23,860

 

Net revenue

 

 

717,180

 

 

 

534,680

 

 

 

1,340,644

 

 

 

1,032,898

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

414,612

 

 

 

308,310

 

 

 

776,413

 

 

 

605,520

 

Occupancy and equipment

 

 

30,828

 

 

 

27,163

 

 

 

58,312

 

 

 

54,170

 

Marketing and business development

 

 

24,027

 

 

 

23,877

 

 

 

43,779

 

 

 

43,565

 

Technology and information services

 

 

32,032

 

 

 

24,296

 

 

 

56,056

 

 

 

47,227

 

Professional services

 

 

11,234

 

 

 

11,245

 

 

 

22,696

 

 

 

21,007

 

Fund administration and outsourced services

 

 

18,338

 

 

 

15,895

 

 

 

34,251

 

 

 

29,330

 

Amortization and other acquisition-related costs

 

 

1,257

 

 

 

330

 

 

 

4,831

 

 

 

974

 

Other

 

 

12,351

 

 

 

10,328

 

 

 

21,608

 

 

 

19,492

 

Total operating expenses

 

 

544,679

 

 

 

421,444

 

 

 

1,017,946

 

 

 

821,285

 

OPERATING INCOME

 

 

172,501

 

 

 

113,236

 

 

 

322,698

 

 

 

211,613

 

Provision for income taxes

 

 

51,600

 

 

 

31,872

 

 

 

91,367

 

 

 

59,526

 

NET INCOME

 

 

120,901

 

 

 

81,364

 

 

 

231,331

 

 

 

152,087

 

LESS - NET INCOME ATTRIBUTABLE TO

   NONCONTROLLING INTERESTS

 

 

523

 

 

 

1,007

 

 

 

3,400

 

 

 

4,907

 

NET INCOME ATTRIBUTABLE TO LAZARD LTD

 

$

120,378

 

 

$

80,357

 

 

$

227,931

 

 

$

147,180

 

ATTRIBUTABLE TO LAZARD LTD CLASS A

      COMMON STOCKHOLDERS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OF COMMON STOCK

     OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

122,368,150

 

 

 

125,461,948

 

 

 

122,591,656

 

 

 

125,751,195

 

Diluted

 

 

132,139,616

 

 

 

132,341,522

 

 

 

132,414,496

 

 

 

132,616,403

 

NET INCOME PER SHARE OF COMMON STOCK:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.98

 

 

$

0.64

 

 

$

1.86

 

 

$

1.17

 

Diluted

 

$

0.91

 

 

$

0.61

 

 

$

1.72

 

 

$

1.11

 

DIVIDENDS DECLARED PER SHARE OF

     COMMON STOCK

 

$

0.41

 

 

$

0.38

 

 

$

1.99

 

 

$

1.93

 

 

 

See notes to condensed consolidated financial statements.

 

4


 

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2017 AND 2016

(UNAUDITED)

(dollars in thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

NET INCOME

 

$

120,901

 

 

$

81,364

 

 

$

231,331

 

 

$

152,087

 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF

   TAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency translation adjustments (including a tax benefit of

   $1,723 for the three months ended June 30, 2016 and

   $2,869 for the six months ended June 30, 2016)

 

 

26,167

 

 

 

(16,104

)

 

 

43,099

 

 

 

(4,365

)

Employee benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial loss (net of tax benefit of $2,215 and $228

   for the three months ended June 30, 2017 and  2016,

   respectively, and $2,476 and $298 for the six months

   ended June 30, 2017 and 2016, respectively)

 

 

(8,609

)

 

 

(475

)

 

 

(9,104

)

 

 

(616

)

Adjustment for items reclassified to earnings (net of

   tax expense of $196 and $403 for the three months

   ended June 30, 2017 and 2016, respectively, and

   $472 and $796 for the six months ended June 30,

   2017 and 2016, respectively)

 

 

1,356

 

 

 

1,121

 

 

 

2,442

 

 

 

2,307

 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

 

 

18,914

 

 

 

(15,458

)

 

 

36,437

 

 

 

(2,674

)

COMPREHENSIVE INCOME

 

 

139,815

 

 

 

65,906

 

 

 

267,768

 

 

 

149,413

 

LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO

   NONCONTROLLING INTERESTS

 

 

523

 

 

 

1,007

 

 

 

3,400

 

 

 

4,907

 

COMPREHENSIVE INCOME ATTRIBUTABLE TO

   LAZARD LTD

 

$

139,292

 

 

$

64,899

 

 

$

264,368

 

 

$

144,506

 

 

 

 

See notes to condensed consolidated financial statements.

 

5


 

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2017 AND 2016

(UNAUDITED)

(dollars in thousands)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2017

 

 

2016

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

231,331

 

 

$

152,087

 

Adjustments to reconcile net income to net cash provided by (used in)

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization of property

 

 

15,371

 

 

 

16,630

 

Amortization of deferred expenses and share-based incentive compensation

 

 

209,127

 

 

 

199,217

 

Amortization and other acquisition-related costs

 

 

4,831

 

 

 

974

 

Deferred tax provision

 

 

39,936

 

 

 

25,159

 

(Increase) decrease in operating assets:

 

 

 

 

 

 

 

 

Deposits with banks and short-term investments

 

 

(286,538

)

 

 

(271,010

)

Cash deposited with clearing organizations and other segregated cash

 

 

(4,592

)

 

 

1,697

 

Receivables-net

 

 

2,227

 

 

 

120

 

Investments

 

 

30,454

 

 

 

51,342

 

Other assets

 

 

(88,178

)

 

 

(52,586

)

Increase (decrease) in operating liabilities:

 

 

 

 

 

 

 

 

Deposits and other payables

 

 

305,645

 

 

 

207,503

 

Accrued compensation and benefits and other liabilities

 

 

(181,227

)

 

 

(312,862

)

Net cash provided by operating activities

 

 

278,387

 

 

 

18,271

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Additions to property

 

 

(9,408

)

 

 

(11,118

)

Disposals of property

 

 

193

 

 

 

159

 

Net cash used in investing activities

 

 

(9,215

)

 

 

(10,959

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from:

 

 

 

 

 

 

 

 

Contributions from noncontrolling interests

 

 

-

 

 

 

93

 

Excess tax benefits from share-based incentive compensation

 

 

-

 

 

 

2,340

 

Other financing activities

 

 

-

 

 

 

8,004

 

Payments for:

 

 

 

 

 

 

 

 

Capital lease obligations

 

 

(7,320

)

 

 

(835

)

Distributions to noncontrolling interests

 

 

(1,743

)

 

 

(708

)

Payments under tax receivable agreement

 

 

(776

)

 

 

(10,086

)

Purchase of Class A common stock

 

 

(184,892

)

 

 

(194,729

)

Class A common stock dividends

 

 

(242,427

)

 

 

(242,085

)

Settlement of vested share-based incentive compensation

 

 

(66,085

)

 

 

(54,164

)

Other financing activities

 

 

(8,970

)

 

 

(2,327

)

Net cash used in financing activities

 

 

(512,213

)

 

 

(494,497

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

 

39,895

 

 

 

1,556

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(203,146

)

 

 

(485,629

)

CASH AND CASH EQUIVALENTS—January 1

 

 

1,158,785

 

 

 

1,132,083

 

CASH AND CASH EQUIVALENTS—June 30

 

$

955,639

 

 

$

646,454

 

 

 

 

See notes to condensed consolidated financial statements.

 

6


 

.LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2016

(UNAUDITED)

(dollars in thousands)

 

 

 

Series A

 

 

 

 

 

Additional

 

 

 

 

 

 

Accumulated

Other

Comprehensive

 

 

Class A

Common Stock

 

 

Total

Lazard Ltd

 

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-In-

 

 

Retained

 

 

Income (Loss),

 

 

Held By Subsidiaries

 

 

Stockholders’

 

 

Noncontrolling

 

 

Stockholders’

 

 

 

Shares

 

 

$

 

 

Shares

 

 

$

 

 

Capital

 

 

Earnings

 

 

Net of Tax

 

 

Shares

 

 

$

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance - January 1, 2016

 

 

7,921

 

 

$

-

 

 

 

129,766,091

 

 

$

1,298

 

 

$

600,034

 

 

$

1,123,728

 

 

$

(234,356

)

 

 

4,253,381

 

 

$

(177,249

)

 

$

1,313,455

 

 

$

53,851

 

 

$

1,367,306

 

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147,180

 

 

 

4,907

 

 

 

152,087

 

Other comprehensive loss - net

   of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,674

)

 

 

 

 

 

 

 

 

 

 

(2,674

)

 

 

 

 

 

 

(2,674

)

Amortization of share-based incentive

   compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

155,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

155,325

 

 

 

 

 

 

 

155,325

 

Dividend-equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,364

 

 

 

(30,691

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,327

)

 

 

 

 

 

 

(2,327

)

Class A common stock dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(242,085

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(242,085

)

 

 

 

 

 

 

(242,085

)

Purchase of Class A common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,646,092

 

 

 

(194,729

)

 

 

(194,729

)

 

 

 

 

 

 

(194,729

)

Delivery of Class A common stock in

   connection with share-based incentive

   compensation and related tax benefit

   of $7,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(203,406

)

 

 

 

 

 

 

 

 

 

 

(3,889,417

)

 

 

156,332

 

 

 

(47,074

)

 

 

 

 

 

 

(47,074

)

Business acquisitions and related equity

   transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delivery of Class A common stock

    and related tax benefit of $11,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,167

)

 

 

 

 

 

 

 

 

 

 

(799,437

)

 

 

30,293

 

 

 

11,126

 

 

 

 

 

 

 

11,126

 

Distributions to noncontrolling interests,

   net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

(615

)

 

 

(615

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,004

 

 

 

 

 

 

 

8,004

 

Balance - June 30, 2016

 

 

7,921

 

 

$

-

 

 

 

129,766,091

 

 

$

1,298

 

 

$

569,154

 

 

$

998,132

 

 

$

(237,030

)

 

 

5,210,619

 

 

$

(185,353

)

 

$

1,146,201

 

 

$

58,143

 

 

$

1,204,344

 

 

 

See notes to condensed consolidated financial statements.

 

7


 

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2017

(UNAUDITED)

(dollars in thousands)

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Accumulated

Other

Comprehensive

 

 

Class A

Common Stock

 

 

Total

Lazard Ltd

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In-

 

 

Retained

 

 

Income (Loss),

 

 

Held By Subsidiaries

 

 

Stockholders’

 

 

Noncontrolling

 

 

Stockholders’

 

 

 

Shares

 

 

$

 

 

Capital

 

 

Earnings

 

 

Net of Tax

 

 

Shares

 

 

$

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance - January 1, 2017

 

 

129,766,091

 

 

$

1,298

 

 

$

688,231

 

 

$

1,134,186

 

 

$

(314,222

)

 

 

7,628,786

 

 

$

(273,506

)

 

$

1,235,987

 

 

$

57,826

 

 

$

1,293,813

 

Adjustment for the cumulative effect on prior

   years from the adoption of new accounting

   guidance related to share-based incentive

   compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

81,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

81,544

 

 

 

 

 

 

 

81,544

 

Balance, as adjusted - January 1, 2017