XML 46 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018 and December 31, 2017, 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:

 

 

 

March 31, 2018

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

7

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

7

 

Equities

 

 

39,179

 

 

 

-

 

 

 

1,599

 

 

 

-

 

 

 

40,778

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

16,540

 

 

 

-

 

 

 

-

 

 

 

1,007

 

 

 

17,547

 

Debt

 

 

62,801

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

62,808

 

Equity

 

 

157,640

 

 

 

-

 

 

 

-

 

 

 

53

 

 

 

157,693

 

Private equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

75,570

 

 

 

75,570

 

Derivatives

 

 

-

 

 

 

11,607

 

 

 

-

 

 

 

-

 

 

 

11,607

 

Total

 

$

276,167

 

 

$

11,607

 

 

$

1,599

 

 

$

76,637

 

 

$

366,010

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

4,274

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

4,274

 

Contingent consideration liability

 

 

-

 

 

 

-

 

 

 

28,974

 

 

 

-

 

 

 

28,974

 

Derivatives

 

 

-

 

 

 

214,975

 

 

 

-

 

 

 

-

 

 

 

214,975

 

Total

 

$

4,274

 

 

$

214,975

 

 

$

28,974

 

 

$

-

 

 

$

248,223

 

 

 

 

December 31, 2017

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

6

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

6

 

Equities

 

 

43,665

 

 

 

-

 

 

 

1,592

 

 

 

-

 

 

 

45,257

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

17,353

 

 

 

-

 

 

 

-

 

 

 

3,640

 

 

 

20,993

 

Debt

 

 

84,071

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

84,077

 

Equity

 

 

199,565

 

 

 

-

 

 

 

-

 

 

 

53

 

 

 

199,618

 

Private equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

76,679

 

 

 

76,679

 

Derivatives

 

 

-

 

 

 

3,732

 

 

 

-

 

 

 

-

 

 

 

3,732

 

Total

 

$

344,660

 

 

$

3,732

 

 

$

1,592

 

 

$

80,378

 

 

$

430,362

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

7,338

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

7,338

 

Contingent consideration liability

 

 

-

 

 

 

-

 

 

 

28,941

 

 

 

-

 

 

 

28,941

 

Derivatives

 

 

-

 

 

 

198,417

 

 

 

-

 

 

 

-

 

 

 

198,417

 

Total

 

$

7,338

 

 

$

198,417

 

 

$

28,941

 

 

$

-

 

 

$

234,696

 

 
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 periods ended March 31, 2018 and 2017:

 

 

 

Three Months Ended March 31, 2018

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses

Included In

Earnings (a)

 

 

Purchases/

Acquisitions

 

 

Sales/

Dispositions

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,592

 

 

$

(1

)

 

$

1

 

 

$

-

 

 

$

7

 

 

$

1,599

 

Total Level 3 Assets

 

$

1,592

 

 

$

(1

)

 

$

1

 

 

$

-

 

 

$

7

 

 

$

1,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

28,941

 

 

$

33

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

28,974

 

Total Level 3 Liabilities

 

$

28,941

 

 

$

33

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

28,974

 

 

 

 

 

Three Months Ended March 31, 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

 

 

$

2

 

 

$

-

 

 

$

(8

)

 

$

35

 

 

$

1,537

 

Total Level 3 Assets

 

$

1,508

 

 

$

2

 

 

$

-

 

 

$

(8

)

 

$

35

 

 

$

1,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

22,608

 

 

$

2,745

 

 

$

-

 

 

$

(249

)

 

$

-

 

 

$

25,104

 

Total Level 3 Liabilities

 

$

22,608

 

 

$

2,745

 

 

$

-

 

 

$

(249

)

 

$

-

 

 

$

25,104

 

 

(a)

Earnings recorded in “other revenue” for investments in equities for the three month periods ended March 31, 2018 and 2017 include net unrealized losses of $1 and $0, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month periods ended March 31, 2018 and 2017  include unrealized losses of $33 and $2,745, respectively.

Fair Value of Certain Investments Based on NAV

The following tables present, at March 31, 2018 and December 31, 2017, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

 

 

 

March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

371

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

<30-60 days

Funds of funds

 

 

26

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

90 days

Other

 

 

610

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-60 days

Debt funds

 

 

7

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

30 days

Equity funds

 

 

53

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

75,570

 

 

 

9,590

 

(f)

 

 

100

%

 

 

16

%

 

 

39

%

 

 

45

%

 

NA

 

NA

Total

 

$

76,637

 

 

$

9,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

weekly (10%) and monthly (90)%

(b)

quarterly (100%)

(c)

daily (6%) and monthly (94%)

(d)

daily (100%)

(e)

daily (19%), monthly (49%) and quarterly (32%)

(f)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $18,694 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

 

 

 

December 31, 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

 

$

2,517

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

<30-60 days

Funds of funds

 

 

528

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

<30-90 days

Other

 

 

595

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-60 days

Debt funds

 

 

6

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

30 days

Equity funds

 

 

53

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

76,679

 

 

 

10,300

 

(f)

 

 

100

%

 

 

16

%

 

 

38

%

 

 

46

%

 

NA

 

NA

Total

 

$

80,378

 

 

$

10,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

weekly (3%), monthly (5%) and quarterly (92%)

(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 $5,902 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.