XML 49 R37.htm IDEA: XBRL DOCUMENT v3.19.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2019
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, 2019 and December 31, 2018, 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, 2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

99,535

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

99,535

 

Equities

 

 

36,390

 

 

 

-

 

 

 

1,724

 

 

 

-

 

 

 

38,114

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

16,930

 

 

 

-

 

 

 

-

 

 

 

10,194

 

 

 

27,124

 

Debt

 

 

112,251

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

112,258

 

Equity

 

 

215,782

 

 

 

-

 

 

 

-

 

 

 

39

 

 

 

215,821

 

Private equity

 

 

-

 

 

 

-

 

 

 

2,146

 

 

 

40,355

 

 

 

42,501

 

Derivatives

 

 

-

 

 

 

3,278

 

 

 

-

 

 

 

-

 

 

 

3,278

 

Total

 

$

480,888

 

 

$

3,278

 

 

$

3,870

 

 

$

50,595

 

 

$

538,631

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

1,555

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,555

 

Contingent consideration liability

 

 

-

 

 

 

-

 

 

 

1,895

 

 

 

-

 

 

 

1,895

 

Derivatives

 

 

-

 

 

 

228,116

 

 

 

-

 

 

 

-

 

 

 

228,116

 

Total

 

$

1,555

 

 

$

228,116

 

 

$

1,895

 

 

$

-

 

 

$

231,566

 

 

 

 

December 31, 2018

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

202,874

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

202,874

 

Equities

 

 

30,639

 

 

 

-

 

 

 

1,622

 

 

 

-

 

 

 

32,261

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

16,863

 

 

 

-

 

 

 

-

 

 

 

889

 

 

 

17,752

 

Debt

 

 

90,313

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

90,320

 

Equity

 

 

175,054

 

 

 

-

 

 

 

-

 

 

 

34

 

 

 

175,088

 

Private equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

56,343

 

 

 

56,343

 

Derivatives

 

 

-

 

 

 

11,967

 

 

 

-

 

 

 

-

 

 

 

11,967

 

Total

 

$

515,743

 

 

$

11,967

 

 

$

1,622

 

 

$

57,273

 

 

$

586,605

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

3,929

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

3,929

 

Contingent consideration liability

 

 

-

 

 

 

-

 

 

 

10,009

 

 

 

-

 

 

 

10,009

 

Derivatives

 

 

-

 

 

 

188,962

 

 

 

-

 

 

 

-

 

 

 

188,962

 

Total

 

$

3,929

 

 

$

188,962

 

 

$

10,009

 

 

$

-

 

 

$

202,900

 

 
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, 2019 and 2018:

 

 

 

Three Months Ended September 30, 2019

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses

Included In

Earnings (a)

 

 

Purchases/

Acquisitions/

Transfers

 

 

Sales/

Dispositions/

Settlements

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,606

 

 

$

148

 

 

$

-

 

 

$

-

 

 

$

(30

)

 

$

1,724

 

Private equity funds

 

 

2,131

 

 

 

15

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,146

 

Total Level 3 Assets

 

$

3,737

 

 

$

163

 

 

$

-

 

 

$

-

 

 

$

(30

)

 

$

3,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

4,386

 

 

$

(73

)

 

$

-

 

 

$

(2,418

)

 

$

-

 

 

$

1,895

 

Total Level 3 Liabilities

 

$

4,386

 

 

$

(73

)

 

$

-

 

 

$

(2,418

)

 

$

-

 

 

$

1,895

 

 

 

 

Nine Months Ended September 30, 2019

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses

Included In

Earnings (a)

 

 

Purchases/

Acquisitions/

Transfers (b)

 

 

Sales/

Dispositions/

Settlements

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,622

 

 

$

134

 

 

$

-

 

 

$

-

 

 

$

(32

)

 

$

1,724

 

Private equity funds

 

 

-

 

 

 

15

 

 

 

2,131

 

 

 

-

 

 

 

-

 

 

 

2,146

 

Total Level 3 Assets

 

$

1,622

 

 

$

149

 

 

$

2,131

 

 

$

-

 

 

$

(32

)

 

$

3,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

10,009

 

 

$

7,577

 

 

$

-

 

 

$

(15,691

)

 

$

-

 

 

$

1,895

 

Total Level 3 Liabilities

 

$

10,009

 

 

$

7,577

 

 

$

-

 

 

$

(15,691

)

 

$

-

 

 

$

1,895

 

 

 

 

Three Months Ended September 30, 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

 

$

1,629

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(1

)

 

$

1,628

 

Total Level 3 Assets

 

$

1,629

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(1

)

 

$

1,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

19,628

 

 

$

(6,707

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

12,921

 

Total Level 3 Liabilities

 

$

19,628

 

 

$

(6,707

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

12,921

 

 

 

 

Nine Months Ended September 30, 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

 

 

$

61

 

 

$

1

 

 

$

-

 

 

$

(26

)

 

$

1,628

 

Total Level 3 Assets

 

$

1,592

 

 

$

61

 

 

$

1

 

 

$

-

 

 

$

(26

)

 

$

1,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

28,941

 

 

$

(16,020

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

12,921

 

Total Level 3 Liabilities

 

$

28,941

 

 

$

(16,020

)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

12,921

 

 

(a)

Earnings recorded in “other revenue” for investments in equities for the three month and nine month periods ended September 30, 2019 and the three month and nine month periods ended September 30, 2018 include net unrealized gains (losses) of $163, $149, $0 and $61, respectively. Earnings recorded in “amortization and other acquisition-related (benefits) costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2019 and the three month and nine month periods ended September 30, 2018 include unrealized (gains) losses of $(73), $7,577, $(6,707) and $(16,020), respectively.

(b)

Certain investments that were valued at NAV as of December 31, 2018 were transferred to Level 3 during the nine month period ended September 30, 2019 as these investments are valued based on a potential transaction value that differs from NAV.
Fair Value of Certain Investments Based on NAV

The following tables present, at September 30, 2019 and December 31, 2018, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

9,578

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

30-60 days

Funds of funds

 

 

24

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

>90 days

Other

 

 

592

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-30 days

Debt funds

 

 

7

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

<30 days

Equity funds

 

 

39

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

40,355

 

 

 

8,264

 

(f)

 

 

100

%

 

 

20

%

 

 

14

%

 

 

66

%

 

NA

 

NA

Total

 

$

50,595

 

 

$

8,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

monthly (99%) and quarterly (1%)

(b)

quarterly (100%)

(c)

daily (6%) and monthly (94%)

(d)

daily (100%)

(e)

daily (24%), monthly (71%) and annually (5%)

(f)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $13,400 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

 

 

 

December 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

 

$

299

 

 

$

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(a)

 

30-60 days

Funds of funds

 

 

23

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(b)

 

>90 days

Other

 

 

567

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(c)

 

<30-30 days

Debt funds

 

 

7

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(d)

 

<30 days

Equity funds

 

 

34

 

 

 

-

 

 

 

NA

 

 

NA

 

 

NA

 

 

NA

 

 

(e)

 

<30-90 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

56,343

 

 

 

8,338

 

(f)

 

 

100

%

 

 

14

%

 

 

34

%

 

 

52

%

 

NA

 

NA

Total

 

$

57,273

 

 

$

8,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

monthly (100%)   

(b)

quarterly (100%)

(c)

daily (6%) and monthly (94%)

(d)

daily (100%)

(e)

daily (25%), monthly (70%) and annually (5%)

(f)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $14,437 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.