XML 45 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 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 September 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:

 

 

 

September 30, 2017

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

6

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

6

 

Equities

 

 

44,634

 

 

 

-

 

 

 

1,547

 

 

 

-

 

 

 

46,181

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

15,798

 

 

 

-

 

 

 

-

 

 

 

7,720

 

 

 

23,518

 

Debt

 

 

86,894

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

86,900

 

Equity

 

 

191,144

 

 

 

-

 

 

 

-

 

 

 

49

 

 

 

191,193

 

Private equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

78,376

 

 

 

78,376

 

Derivatives

 

 

-

 

 

 

3,443

 

 

 

-

 

 

 

-

 

 

 

3,443

 

Total

 

$

338,476

 

 

$

3,443

 

 

$

1,547

 

 

$

86,151

 

 

$

429,617

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

5,921

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

5,921

 

Contingent consideration liability

 

 

-

 

 

 

-

 

 

 

24,927

 

 

 

-

 

 

 

24,927

 

Derivatives

 

 

-

 

 

 

189,142

 

 

 

-

 

 

 

-

 

 

 

189,142

 

Total

 

$

5,921

 

 

$

189,142

 

 

$

24,927

 

 

$

-

 

 

$

219,990

 

 

 

 

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 nine month periods ended September 30, 2017 and 2016:

 

 

 

Three Months Ended September 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

 

$

3,072

 

 

$

130

 

 

$

-

 

 

$

(1,661

)

 

$

6

 

 

$

1,547

 

Total Level 3 Assets

 

$

3,072

 

 

$

130

 

 

$

-

 

 

$

(1,661

)

 

$

6

 

 

$

1,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

25,539

 

 

$

(612

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

24,927

 

Total Level 3 Liabilities

 

$

25,539

 

 

$

(612

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

24,927

 

 

 

 

Nine Months Ended September 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

 

 

$

4

 

 

$

1,661

 

 

$

(1,669

)

 

$

43

 

 

$

1,547

 

Total Level 3 Assets

 

$

1,508

 

 

$

4

 

 

$

1,661

 

 

$

(1,669

)

 

$

43

 

 

$

1,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

22,608

 

 

$

2,568

 

 

$

-

 

 

$

(249

)

 

$

-

 

 

$

24,927

 

Total Level 3 Liabilities

 

$

22,608

 

 

$

2,568

 

 

$

-

 

 

$

(249

)

 

$

-

 

 

$

24,927

 

 

 

 

Three Months Ended September 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

 

$

1,298

 

 

$

2

 

 

$

-

 

 

$

-

 

 

$

21

 

 

$

1,321

 

Total Level 3 Assets

 

$

1,298

 

 

$

2

 

 

$

-

 

 

$

-

 

 

$

21

 

 

$

1,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

-

 

 

$

28

 

 

$

17,000

 

 

$

-

 

 

$

-

 

 

$

17,028

 

Total Level 3 Liabilities

 

$

-

 

 

$

28

 

 

$

17,000

 

 

$

-

 

 

$

-

 

 

$

17,028

 

 

 

 

Nine Months Ended September 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

 

 

$

12

 

 

$

-

 

 

$

-

 

 

$

33

 

 

$

1,321

 

Total Level 3 Assets

 

$

1,276

 

 

$

12

 

 

$

-

 

 

$

-

 

 

$

33

 

 

$

1,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

-

 

 

$

28

 

 

$

17,000

 

 

$

-

 

 

$

-

 

 

$

17,028

 

Total Level 3 Liabilities

 

$

-

 

 

$

28

 

 

$

17,000

 

 

$

-

 

 

$

-

 

 

$

17,028

 

 

(a)

Earnings recorded in “other revenue” for investments in equities for the three month and nine month periods ended September 30, 2017 and the three month and nine month periods ended September 30, 2016 include net unrealized gains of $130, $2, $2 and $7, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2017 and the three month and nine month periods ended September 30, 2016 include unrealized gains (losses) of $612, $(2,568), $(28) and $(28), respectively.

Fair Value of Certain Investments Based on NAV

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

 

 

 

September 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

 

$

6,617

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

<30-60 days

Funds of funds

 

 

517

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

<30-90 days

Other

 

 

586

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-60 days

Debt funds

 

 

6

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

30 days

Equity funds

 

 

49

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

78,376

 

 

 

10,085

 

(f)

 

 

100

%

 

 

16

%

 

 

39

%

 

 

45

%

 

NA

 

NA

Total

 

$

86,151

 

 

$

10,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

weekly (51%), monthly (2%) and quarterly (47%)

(b)

monthly (97%) and quarterly (3%)

(c)

daily (6%) and monthly (94%)

(d)

daily (100%)

(e)

daily (18%), monthly (50%) and quarterly (32%)

(f)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $5,915 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.