What changed in this filing

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Item 1. Financial Statements

2024-07-26 compared with 2024-04-26 · 431 added, 299 removed, 796 unchanged (48% of the section changed)

Financial Statements (Unaudited)

Condensed Consolidated Statements of Financial Condition as of March 31, 2024 and December 31, 2023

Condensed Consolidated Statements of Operations for the three month periods ended March 31, 2024 and 2023

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three month periods ended March 31, 2024 and 2023

Condensed Consolidated Statements of Cash Flows for the three month periods ended March 31, 2024 and 2023

Condensed Consolidated Statements of Changes in Stockholders’ Equity and Redeemable Noncontrolling Interests for the three month periods ended March 31, 2024 and 2023

Condensed Consolidated Statements of Financial Condition as of June 30, 2024 and December 31, 2023

Condensed Consolidated Statements of Operations for the three month and six month periods ended June 30, 2024 and 2023

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three month and six month periods ended June 30, 2024 and 2023

Condensed Consolidated Statements of Cash Flows for the six month periods ended June 30, 2024 and 2023

Condensed Consolidated Statements of Changes in Stockholders’ Equity and Redeemable Noncontrolling Interests for the three month and six month periods ended June 30, 2024 and 2023

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MARCH 31, 2024 AND DECEMBER 31, 2023

JUNE 30, 2024 AND DECEMBER 31, 2023

(dollars in thousands, except for per share data)

4 unchanged sentences

Receivables (net of allowance for credit losses of $ 29,686 and $ 28,503

at March 31, 2024 and December 31, 2023, respectively):

at June 30, 2024 and December 31, 2023, respectively):

Fees 554,596 560,552

2 unchanged sentences

Investments 687,507 701,964

Property (net of accumulated amortization and depreciation of $ 419,680 and $ 414,547 at March 31, 2024 and December 31, 2023, respectively, including $ 71,343 and $ 72,921 of property held for sale at March 31, 2024 and December 31, 2023, respectively)

Property (net of accumulated amortization and depreciation of $ 424,128 and $ 414,547 at June 30, 2024 and December 31, 2023, respectively, including $ 70,002 and $ 72,921 of property held for sale at June 30, 2024 and December 31, 2023, respectively)

220,663 232,516

1 unchanged sentence

Goodwill and other intangible assets (net of accumulated amortization

of $ 67,696 and $ 67,681 at March 31, 2024 and December 31, 2023, respectively)

of $ 67,711 and $ 67,681 at June 30, 2024 and December 31, 2023, respectively)

393,967 394,928

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MARCH 31, 2024 AND DECEMBER 31, 2023

JUNE 30, 2024 AND DECEMBER 31, 2023

(dollars in thousands, except for per share data)

14 unchanged sentences

15,000,000 shares authorized;

Series A - no shares issued and outstanding

Series B - no shares issued and outstanding

issued and outstanding at June 30, 2024 and December 31, 2023

Common stock:

Par value $ 0.01 per share ( 500,000,000 shares authorized;

112,766,091 shares issued at March 31, 2024 and December 31, 2023, including shares held by subsidiaries)

112,766,091 shares issued at June 30, 2024 and December 31, 2023, including shares held by subsidiaries)

Additional paid-in-capital 218,455 247,204

3 unchanged sentences

Common stock held by subsidiaries, at cost ( 22,596,555 and 25,340,287

shares at March 31, 2024 and December 31, 2023, respectively)

shares at June 30, 2024 and December 31, 2023, respectively)

( 837,338 ) ( 937,259 )

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

(dollars in thousands, except for per share data)

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Investment banking and other advisory fees $ 408,773 $ 350,104 $ 861,800 $ 627,512

30 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

(dollars in thousands)

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

NET INCOME (LOSS) $ 52,053 $ ( 120,376 ) $ 92,277 $ ( 135,575 )

2 unchanged sentences

Employee benefit plans:

Actuarial gain (loss) (net of tax expense (benefit) of

$ 288 and $( 595 ) for the three months ended

March 31, 2024 and 2023, respectively)

Actuarial gain (loss) (net of tax expense (benefit) of $ 371 and $( 479 ) for the three months ended June 30, 2024 and 2023, respectively, and $ 659 and $( 1,074 ) for the six months ended June 30, 2024 and 2023, respectively)

789 ( 2,585 ) 1,604 ( 5,386 )

Adjustment for items reclassified to earnings (net of

tax expense of $ 455 and $ 376 for the three months

ended March 31, 2024 and 2023, respectively)

Adjustment for items reclassified to earnings (net of tax expense of $ 455 and $ 385 for the three months ended June 30, 2024 and 2023, respectively, and $ 910 and $ 761 for the six months ended June 30, 2024 and 2023, respectively)

1,485 1,176 2,887 2,336

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX ( 2,298 ) 1,069 ( 16,343 ) 13,967

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

(dollars in thousands)

Three Months Ended

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

5 unchanged sentences

Amortization and other acquisition-related costs 136 143

Deferred tax provision (benefit) ( 12,836 ) 40,235

Deferred tax benefit ( 14,675 ) ( 114,314 )

Benefit pursuant to tax receivable agreement – ( 40,435 )

Impairment of equity method investments and other receivables – 22,981

Impairment of assets associated with cost-saving initiatives – 7,490

Loss on LGAC liquidation – 17,929

4 unchanged sentences

Accrued compensation and benefits and other liabilities ( 322,239 ) ( 137,048 )

Net cash used in operating activities ( 89,986 ) ( 411,418 )

Net cash provided by (used in) operating activities 86,255 ( 210,422 )

CASH FLOWS FROM INVESTING ACTIVITIES:

1 unchanged sentence

Disposals of property 1,928 100

Purchase of investments ( 98,350 ) –

Acquisition of business, net of cash acquired – ( 10,516 )

1 unchanged sentence

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from (payments for) customer deposits, net 10,840 ( 349,479 )

Proceeds from:

Issuance of senior debt, net of expenses 396,010 –

Customer deposits, net 90,815 –

Contributions from noncontrolling interests 232 180

1 unchanged sentence

Extinguishment of senior debt ( 233,073 ) –

Customer deposits, net – ( 239,051 )

Distributions to noncontrolling interests ( 2,005 ) ( 4,061 )

6 unchanged sentences

Other financing activities ( 8,898 ) ( 7,209 )

Net cash provided by (used in) financing activities 98,487 ( 1,072,415 )

Net cash used in financing activities ( 94,125 ) ( 1,244,188 )

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 23,177 ) 17,517

1 unchanged sentence

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1 1,224,983 2,639,400

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—March 31 $ 1,204,652 $ 1,156,146

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—June 30 $ 1,084,453 $ 1,179,901

See notes to condensed consolidated financial statements.

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2024

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2024

(dollars in thousands)

13 unchanged sentences

Shares $ Shares $

Balance - April 1, 2024 112,766,091 $ 1,128 $ 134,573 $ 1,384,829 $ ( 303,995 ) 22,248,005 $ ( 823,821 ) $ 392,714 $ 55,817 $ 448,531 $ 88,475

Comprehensive income (loss):

Net income 49,909 49,909 1,683 51,592 461

Other comprehensive loss - net of tax ( 2,298 ) ( 2,298 ) – ( 2,298 )

Amortization of share-based incentive compensation 88,438 88,438 909 89,347

Dividend equivalents 6,822 ( 7,019 ) ( 197 ) ( 2,109 ) ( 2,306 )

Common stock dividends ($ 0.50 per share)

( 45,016 ) ( 45,016 ) ( 45,016 )

Purchase of common stock 491,221 ( 18,811 ) ( 18,811 ) ( 18,811 )

Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 117

( 11,378 ) ( 142,815 ) 5,300 ( 6,078 ) – ( 6,078 )

Distributions to noncontrolling

interests, net – ( 765 ) ( 765 )

LFI Consolidated Funds – – – ( 8,005 )

Other 144 ( 6 ) ( 6 ) ( 6 )

Balance - June 30, 2024 112,766,091 $ 1,128 $ 218,455 $ 1,382,703 $ ( 306,293 ) 22,596,555 $ ( 837,338 ) $ 458,655 $ 55,535 $ 514,190 $ 80,931

See notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2024

(dollars in thousands)

Common Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss),

Net of Tax Common Stock

Held By Subsidiaries Total

Stockholders’

Equity Noncontrolling

Interests Total

Stockholders’

Equity Redeemable

Noncontrolling

Shares $ Shares $

Balance - January 1, 2024 112,766,091 $ 1,128 $ 247,204 $ 1,402,636 $ ( 289,950 ) 25,340,287 $ ( 937,259 ) $ 423,759 $ 58,428 $ 482,187 $ 87,675

13 unchanged sentences

LFI Consolidated Funds – – – ( 9,822 )

Balance - March 31, 2024 112,766,091 $ 1,128 $ 134,573 $ 1,384,829 $ ( 303,995 ) 22,248,005 $ ( 823,821 ) $ 392,714 $ 55,817 $ 448,531 $ 88,475

Other 144 ( 6 ) ( 6 ) ( 6 )

Balance - June 30, 2024 112,766,091 $ 1,128 $ 218,455 $ 1,382,703 $ ( 306,293 ) 22,596,555 $ ( 837,338 ) $ 458,655 $ 55,535 $ 514,190 $ 80,931

See notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2023

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2023

(dollars in thousands)

13 unchanged sentences

Shares $ Shares $

Balance - April 1, 2023 112,766,091 $ 1,128 $ 94,312 $ 1,604,650 $ ( 282,957 ) 26,100,898 $ ( 965,707 ) $ 451,426 $ 56,983 $ 508,409 $ 89,472

Comprehensive income (loss):

Net income (loss) ( 124,013 ) ( 124,013 ) 1,034 ( 122,979 ) 2,603

Other comprehensive income (loss) - net of tax 1,071 1,071 ( 2 ) 1,069

Amortization of share-based incentive compensation 79,072 79,072 1,662 80,734

Dividend equivalents 5,842 ( 6,055 ) ( 213 ) ( 1,881 ) ( 2,094 )

Common stock dividends ($ 0.50 per share)

( 43,401 ) ( 43,401 ) ( 43,401 )

Purchase of common stock 5,466 ( 172 ) ( 172 ) ( 172 )

Delivery of common stock in connection with share-based incentive compensation and related tax benefit of $ 482

( 11,023 ) ( 214,903 ) 7,961 ( 3,062 ) – ( 3,062 )

Distributions to noncontrolling interests, net – ( 1,889 ) ( 1,889 )

LFI Consolidated Funds – – – ( 8,492 )

Other ( 581 ) 5,240 ( 149 ) ( 730 ) – ( 730 )

Balance - June 30, 2023 112,766,091 $ 1,128 $ 167,622 $ 1,431,181 $ ( 281,886 ) 25,896,701 $ ( 958,067 ) $ 359,978 $ 55,907 $ 415,885 $ 83,583

See notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2023

(dollars in thousands)

Common Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss),

Net of Tax Common Stock

Held By Subsidiaries Total

Stockholders’

Equity Noncontrolling

Interests Total

Stockholders’

Equity Redeemable

Noncontrolling

Shares $ Shares $

Balance - January 1, 2023 112,766,091 $ 1,128 $ 167,890 $ 1,676,713 $ ( 295,854 ) 26,814,213 $ ( 993,414 ) $ 556,463 $ 118,936 $ 675,399 $ 583,471

1 unchanged sentence

Net income (loss) ( 146,185 ) ( 146,185 ) 1,810 ( 144,375 ) 8,800

Other comprehensive income - net of tax 12,897 12,897 1 12,898

Other comprehensive income (loss) - net of tax 13,968 13,968 ( 1 ) 13,967

Amortization of share-based incentive compensation 147,583 147,583 3,685 151,268

3 unchanged sentences

Purchase of common stock 2,697,627 ( 99,097 ) ( 99,097 ) ( 99,097 )

Delivery of common stock in connection with share-based incentive compensation and related tax expense of $ 392

Delivery of Common stock in connection with share-based incentive compensation and related tax benefit of $ 90

( 187,343 ) ( 3,578,995 ) 133,060 ( 54,283 ) 5,664 ( 48,619 )

6 unchanged sentences

LGAC Liquidation:

Distribution to redeemable noncontrolling interests ( 585,891 )

Reversal to net loss of amounts previously charged to additional paid-in-capital and noncontrolling interests 13,195 13,195 4,734 17,929

Reversal of deferred offering cost liability 14,087 14,087 6,038 20,125

Distribution to redeemable

noncontrolling interests ( 585,891 )

Reversal to net loss of amounts

previously charged to

additional paid-in-capital

and noncontrolling interests 13,195 13,195 4,734 17,929

Reversal of deferred offering

costs liability 14,087 14,087 6,038 20,125

Other ( 581 ) 5,240 ( 149 ) ( 730 ) ( 17 ) ( 747 )

Balance - March 31, 2023 112,766,091 $ 1,128 $ 94,312 $ 1,604,650 $ ( 282,957 ) 26,100,898 $ ( 965,707 ) $ 451,426 $ 56,983 $ 508,409 $ 89,472

Balance - June 30, 2023 112,766,091 $ 1,128 $ 167,622 $ 1,431,181 $ ( 281,886 ) $ 25,896,701 $ ( 958,067 ) $ 359,978 $ 55,907 $ 415,885 $ 83,583

See notes to condensed consolidated financial statements.

10 unchanged sentences

and its subsidiaries following the Conversion and (ii) Lazard Ltd and its subsidiaries prior to the Conversion.

As the Conversion became effective on January 1, 2024, the accompanying financial statements and related notes as of December 31, 2023 and for the three months ended March 31, 2023 reflect Lazard as an exempted company incorporated under the laws of Bermuda named Lazard Ltd.

indirectly held 100 % of all outstanding common membership interests of Lazard Group LLC, a Delaware limited liability company (collectively referred to, together with its subsidiaries, as “Lazard Group”) as of March 31, 2024 and December 31, 2023.

As the Conversion became effective on January 1, 2024, the accompanying financial statements and related notes as of December 31, 2023 and for the three month and six month periods ended June 30, 2023 reflect Lazard as an exempted company incorporated under the laws of Bermuda named Lazard Ltd.

Lazard, Inc., through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Amended and Restated Operating Agreement that is effective as of January 1, 2023 (the “Operating Agreement”).

10 unchanged sentences

The accompanying condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the condensed consolidated financial statements and the accompanying disclosures.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an estimated annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items.

For example, discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an estimated annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items.

Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates.

The condensed consolidated results of operations for the three month period ended March 31, 2024 are not indicative of the results to be expected for any future interim or annual period.

The condensed consolidated results of operations for the three month and six month periods ended June 30, 2024 are not indicative of the results to be expected for any future interim or annual period.

The condensed consolidated financial statements include Lazard, Inc.

10 unchanged sentences

Intercompany transactions and balances have been eliminated.

Lazard Growth Acquisition Corp.

In February 2021, Lazard Growth Acquisition Corp.

I (“LGAC”) consummated its $ 575,000 initial public offering (the “LGAC IPO”).

LGAC was a special purpose acquisition company, that was incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”).

LGACo 1 LLC, a Delaware series limited liability company and the Company’s subsidiary, was the sponsor of LGAC.

LGAC was considered to be a VIE.

The Company held a controlling financial interest in LGAC through the sponsor’s ownership of Class B founder shares of LGAC.

As a result, both LGAC and the sponsor were consolidated in the Company’s financial statements.

“Redeemable noncontrolling interests” of $ 583,471 associated with the publicly held LGAC Class A ordinary shares were recorded on the Company’s consolidated statements of financial condition as of December 31, 2022 at redemption value and classified as temporary equity.

Changes in redemption value were recognized immediately as they occurred and adjusted the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period.

Increases or decreases in the carrying amount of redeemable noncontrolling interests were affected by credits or charges to additional paid-in-capital and noncontrolling interests attributable to certain members of LGACo 1 LLC based on pro rata ownership.

On February 23, 2023, LGAC redeemed all of its outstanding publicly held Class A ordinary shares as a result of LGAC not consummating a Business Combination within the time period required by its amended and restated memorandum and articles of association resulting in the distribution of $ 585,891 of the cash held in the trust account to the LGAC shareholders.

The Company recognized $ 17,929 of losses on the liquidation of LGAC in “revenue-other” on the

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

condensed consolidated statement of operations for the three month period ended March 31, 2023.

In addition, the $ 20,125 of non-cash deferred underwriting fees was no longer probable of being incurred and therefore was reversed from other liabilities to additional paid-in-capital.

There were no redemption rights or liquidating distributions with respect to the LGAC warrants.

RECENT ACCOUNTING DEVELOPMENTS

11 unchanged sentences

The Company is currently evaluating the new guidance.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Compensation – Stock Compensation (Topic 718):

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Financial Advisory (a) $ 411,308 $ 352,477 $ 864,815 $ 630,051

7 unchanged sentences

Retainer fees are generally fixed and recognized over the period in which the advisory services are performed.

However, transaction

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events.

However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events.

Therefore, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods.

10 unchanged sentences

Such income may be earned by providing trade facilitation, execution, clearance and settlement, custody, and trade administration services to clients.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

With regard to the disclosure requirement for remaining performance obligations, the Company elected the practical expedients permitted in the guidance to (i) exclude contracts with a duration of one year or less;

1 unchanged sentence

Excluded variable consideration typically relates to contracts with a duration of one year or less, and is generally constrained due to uncertainties.

At March 31, 2024, the Company had deferred revenue of $ 136,272 included in “other liabilities” on the condensed consolidated statements of financial condition.

During the three months ended March 31, 2024, the Company recognized $ 5,676 in revenue that was included in the deferred revenue balance as of December 31, 2023 of $ 140,417 .

At June 30, 2024, the Company had deferred revenue of $ 135,286 included in “other liabilities” on the condensed consolidated statements of financial condition.

During the three month and six month periods ended June 30, 2024, the Company recognized $ 4,892 and $ 10,568 in revenue, respectively, that was included in the deferred revenue balance as of December 31, 2023 of $ 140,417 .

RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

The Company’s receivables represent fee receivables, amounts due from customers and other receivables.

Where applicable, receivables are stated net of an estimated allowance for credit losses determined in accordance with the CECL model.

Of the Company’s fee receivables at March 31, 2024 and December 31, 2023, $ 98,834 and $ 113,929 , respectively, represented financing receivables for our Private Capital Advisory fees.

At March 31, 2024 and December 31, 2023, customers and other receivables included $ 81,911 and $ 86,412 , respectively, of customer loans provided by LFB to high net worth individuals and families , which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of both March 31, 2024 and December 31, 2023.

The aggregate carrying amount of other fees and customers and other receivables was $ 569,738 and $ 561,978 at March 31, 2024 and December 31, 2023, respectively.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Activity in the allowance for credit losses for the three month periods ended March 31, 2024 and 2023 was as follows:

Where applicable, receivables are stated net of an estimated allowance for credit losses determined in accordance with the current expected credit losses (“CECL”) model.

Of the Company’s fee receivables at June 30, 2024 and December 31, 2023, $ 123,124 and $ 113,929 , respectively, represented financing receivables for our Private Capital Advisory fees.

At June 30, 2024 and December 31, 2023, customers and other receivables included $ 91,704 and $ 86,412 , respectively, of customer loans provided by LFB to high net worth individuals and families , which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of both June 30, 2024 and December 31, 2023.

The aggregate carrying amount of other fees and customers and other receivables was $ 510,660 and $ 561,978 at June 30, 2024 and December 31, 2023, respectively.

Activity in the allowance for credit losses for the three month and six month periods ended June 30, 2024 and 2023 was as follows:

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Beginning Balance $ 30,086 $ 24,929 $ 28,503 $ 17,738

Bad debt expense, net of reversals 4,998 7,825

Provision for credit losses, net of reversals ( 75 ) 3,194 4,923 11,019

Charge-offs ( 260 ) ( 1,044 ) ( 3,483 ) ( 1,886 )

1 unchanged sentence

Ending Balance $ 29,686 $ 27,095 $ 29,686 $ 27,095

Bad debt expense, net of reversals represents the current period provision of expected credit losses and is included in “operating expenses-other” on the condensed consolidated statements of operations.

The provision for credit losses, net of reversals represents the current period provision of expected credit losses and is included in “operating expenses-other” on the condensed consolidated statements of operations.

The allowance for credit losses is substantially all related to Financial Advisory fee receivables and other receivables.

The Company’s investments consist of the following at March 31, 2024 and December 31, 2023:

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The Company’s investments consist of the following at June 30, 2024 and December 31, 2023:

2024 December 31,

8 unchanged sentences

___________________________________

(a) Interests in alternative investment funds, debt funds and equity funds include investments, including those held by LFI Consolidated Funds (see Note 21), with fair values of $ 23,912 , $ 140,132 and $ 235,299 , respectively, at March 31, 2024 and $ 27,454 , $ 175,449 and $ 284,099 , respectively, at December 31, 2023, held in order to satisfy the Company’s obligation upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements.

(a) Interests in alternative investment funds, debt funds and equity funds include investments, including those held by LFI Consolidated Funds (see Note 21), with fair values of $ 22,807 , $ 128,916 and $ 225,225 , respectively, at June 30, 2024 and $ 27,454 , $ 175,449 and $ 284,099 , respectively, at December 31, 2023, held in order to satisfy the Company’s obligation upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements.

LFI represent grants by the Company to eligible employees of interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 7 and 13).

Debt securities primarily consists of investments in government securities held within separately managed accounts in order to seed strategies in our Asset Management business.

Debt securities primarily consists of U.S.

Treasury securities with remaining maturities at time of purchase of greater than three months and less than one year and investments in government securities held within separately managed accounts in order to seed strategies in our Asset Management business.

Equity securities primarily consist of investments in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts in order to seed strategies in our Asset Management business.

1 unchanged sentence

Such amounts primarily consist of investments in funds in order to seed strategies in our Asset Management business, and amounts related to LFI discussed above.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Debt funds primarily consist of investments in debt securities in order to seed strategies in our Asset Management business, amounts related to LFI discussed above and an investment in a Lazard-managed debt fund.

Debt funds primarily consist of investments in debt securities in order to seed strategies in our Asset Management business and amounts related to LFI discussed above.

Equity funds primarily consist of investments in equity securities in order to seed strategies in our Asset Management business, and amounts related to LFI discussed above.

4 unchanged sentences

Private equity investments consolidated but not owned by Lazard relate to the economic interests that are owned by the management team and other investors in the Edgewater Funds (“Edgewater”).

During the three month periods ended March 31, 2024 and 2023, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to equity securities and trading debt securities still held as of the reporting date as follows:

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

During the three month and six month periods ended June 30, 2024 and 2023, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to equity securities and trading debt securities still held as of the reporting date as follows:

Three Months Ended

Net unrealized investment gains $ 11,001 $ 24,787

June 30, Six Months Ended

2024 2023 2024 2023

Net unrealized investment gains (losses) $ ( 10,248 ) $ 13,643 $ 753 $ 38,430

FAIR VALUE MEASUREMENTS

5 unchanged sentences

Items included in Level 3 include securities or other financial assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis.

The fair value of debt securities, including instruments reported as either cash and cash equivalents or investments, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of debt securities, including instruments reported as either cash and cash equivalents, deposits with banks and short-term investments, or investments, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

The fair value of equity securities is classified as Level 1 or Level 3 as follows:

2 unchanged sentences

The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are based on the publicly reported closing price for the fund, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The fair value of investments in certain private equity funds is classified as Level 3 for (i) certain investments that are valued based on the potential transaction value and (ii) when the acquisition price is considered the best measure of fair value.

5 unchanged sentences

Any change in the fair value is recognized in “amortization and other acquisition-related costs” in the condensed consolidated statements of operations.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds.

7 unchanged sentences

The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) private equity funds are not redeemable in the near term as a result of redemption restrictions.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The following tables present, as of March 31, 2024 and December 31, 2023, 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, 2024

The following tables present, as of June 30, 2024 and December 31, 2023, 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, 2024

Level 1 Level 2 Level 3 NAV Total

Cash and cash equivalents:

treasury securities $ 164,589 $ – $ – $ – $ 164,589

Debt – 546 – – 546

Cash and cash equivalents (a) $ 69,495 $ – $ – $ – $ 69,495

Deposits with banks and short-term

investments (a) 24,488 – – – 24,488

Debt (a) 98,350 904 – – 99,254

Equity 53,831 – 611 – 54,442

9 unchanged sentences

Total $ 5,235 $ 274,033 $ 4,389 $ – $ 283,657

__________________________________

(a) Level 1 represents U.S.

Treasury securities.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

December 31, 2023

12 unchanged sentences

Total $ 4,809 $ 368,673 $ 6,583 $ – $ 380,065

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, 2024 and 2023:

Three Months Ended June 30, 2024

Balance Net Unrealized/

Earnings (a) Purchases/

Issuances Sales/

Settlements Foreign

Adjustments Ending

Equity $ 475 $ 37 $ 109 $ – $ ( 10 ) $ 611

Private equity funds 267 – – – ( 3 ) 264

Total Level 3 assets $ 742 $ 37 $ 109 $ – $ ( 13 ) $ 875

Contingent consideration

liability $ 4,336 $ 53 $ – $ – $ – $ 4,389

Total Level 3 liabilities $ 4,336 $ 53 $ – $ – $ – $ 4,389

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

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, 2024 and 2023:

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Balance Net Unrealized/

9 unchanged sentences

Total Level 3 liabilities $ 6,583 $ 106 $ – $ ( 2,300 ) $ – $ 4,389

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Balance Net Unrealized/

Earnings (a) Purchases/Acquisitions/

Earnings (a) Purchases/

Issuances Sales/

Settlements Foreign

Transfers (c) Foreign

Adjustments Ending

3 unchanged sentences

Contingent consideration

liability (b) $ – $ 33 $ 7,754 $ ( 1,445 ) $ – $ 6,342

liability $ 6,342 $ 80 $ – $ – $ – $ 6,422

Total Level 3 liabilities $ 6,342 $ 80 $ – $ – $ – $ 6,422

__________________________________

(a) Unrealized losses of $ 53 and $ 33 were recorded in “ amortization and other acquisition-related costs ” for the contingent consideration liability for the three month periods ended March 31, 2024 and 2023, respectively.

(b) For the three month period ended March 31, 2023, acquisitions represent the initial recognition of the contingent consideration liability (noncash transaction).

Settlements for the three month periods ended March 31, 2024 and 2023 represent aggregate cash and noncash settlement of contingent consideration after the acquisition date.

There were no transfers into or out of Level 3 within the fair value hierarchy during the three month periods ended March 31, 2024 and 2023.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The following tables present, at March 31, 2024 and December 31, 2023, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

March 31, 2024

Six Months Ended June 30, 2023

Balance Net Unrealized/

Earnings (a) Purchases/Acquisitions/

Issuances Sales/

Transfers (c) Foreign

Adjustments Ending

Equities $ 646 $ 14 $ – $ – $ ( 18 ) $ 642

Private equity funds 18,772 – – ( 18,508 ) 4 268

Total Level 3 assets $ 19,418 $ 14 $ – $ ( 18,508 ) $ ( 14 ) $ 910

Contingent consideration

liability (b) $ – $ 113 $ 7,754 $ ( 1,445 ) $ – $ 6,422

Total Level 3 liabilities $ – $ 113 $ 7,754 $ ( 1,445 ) $ – $ 6,422

__________________________________

(a) Earnings recorded in “ other revenue ” for investments in Level 3 assets for the three month and six month periods ended June 30, 2024 and 2023 include net unrealized gains of $ 37 , $ 37 , $ 13 and $ 14 , respectively.

Unrealized losses of $ 53 , $ 106 , $ 80 and $ 113 were recorded in “ amortization and other acquisition-related costs ” for the contingent consideration liability for the three month and six month periods ended June 30, 2024 and 2023, respectively.

(b) For the six month period ended June 30, 2023, acquisitions represent the initial recognition of the contingent consideration liability (noncash transaction).

Settlements for the six month periods ended June 30, 2024 and 2023 represent aggregate cash and noncash settlement of contingent consideration after the acquisition date.

(c) Transfers out of Level 3 private equity funds in the three month and six month periods ended June 30, 2023 reflect investments valued at NAV as of June 30, 2023 that were previously valued based on the acquisition price.

There were no other transfers into or out of Level 3 within the fair value hierarchy during the three month and six month periods ended June 30, 2024 and 2023.

The following tables present, at June 30, 2024 and December 31, 2023, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

June 30, 2024

Investments Redeemable

12 unchanged sentences

(b) daily ( 4 %) and monthly ( 96 %)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

25 unchanged sentences

(f) Distributions from each fund will be received as the underlying investments of the funds are liquidated.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The tables below present the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 13) on the accompanying condensed consolidated statements of financial condition as of March 31, 2024 and December 31, 2023.

Notional amounts provide an indication of the volume of the Company's derivative activity.

1 unchanged sentence

In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral.

These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition.

March 31, 2024

These amounts mitigate

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition.

June 30, 2024

Derivative Assets Derivative Liabilities

13 unchanged sentences

$ 4,879 $ 273,487

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

December 31, 2023

18 unchanged sentences

Where this is the case, the amount of collateral offset within net derivatives is limited to the net derivative assets and net derivative liabilities balances with that counterparty.

Net gains (losses) with respect to derivative instruments (included in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2024 and 2023, were as follows:

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Net gains (losses) with respect to derivative instruments (included in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2024 and 2023 were as follows:

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Forward foreign currency exchange rate contracts $ 1,894 $ ( 794 ) $ 3,225 $ ( 700 )

3 unchanged sentences

Total $ 3,516 $ ( 15,489 ) $ ( 10,890 ) $ ( 38,143 )

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

PROPERTY, NET

At March 31, 2024 and December 31, 2023, property consisted of the following:

Life in Years March 31,

At June 30, 2024 and December 31, 2023, property consisted of the following:

Life in Years June 30,

2024 December 31,

4 unchanged sentences

163,289 162,075

Computer software 3 - 5

68,474 68,638

Construction in progress 13,934 11,788

3 unchanged sentences

________________________

(a) The Company classified assets relating to an owned office building as held for sale as of March 31, 2024 and December 31, 2023, the carrying amount of which was $ 71,343 and $ 72,921 (net of accumulated depreciation), respectively.

The owned office building is available for immediate sale in its present condition and the Company expects the owned office building to be sold during 2024.

(a) The Company classified assets relating to an owned office building as held for sale as of June 30, 2024 and December 31, 2023, the carrying amount of which was $ 70,002 and $ 72,921 (net of accumulated depreciation), respectively.

The property held for sale is reported within the Corporate segment.

Effective January 1, 2024, depreciation expense is no longer being recorded on this asset.

In addition, a $ 6,550 receivable (included in “other assets”) related to operating lease income on the owned office building is classified as held for sale as of March 31, 2024 and December 31, 2023 .

In addition, a $ 6,550 receivable (included in “other assets”) related to operating lease income on the owned office building is classified as held for sale as of June 30, 2024 and December 31, 2023 .

On July 22, 2024, the Company completed the sale of the owned office building, including rights to the operating lease income, for gross proceeds of approximately $ 193,000 which resulted in a net pre-tax gain of approximately $ 95,000 , which will be recognized in the three month and nine month periods ending September 30, 2024.

Effective June 30, 2024, in the table above, computer software is being reported separately.

Computer software was previously included as a component of furniture and equipment.

Prior year information has been recast to reflect the updated presentation.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at March 31, 2024 and December 31, 2023 are presented below:

The components of goodwill and other intangible assets at June 30, 2024 and December 31, 2023 are presented below:

2024 December 31,

2 unchanged sentences

$ 393,967 $ 394,928

Changes in the carrying amount of goodwill for the three month periods ended March 31, 2024 and 2023 are as follows:

Three Months Ended March 31,

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2024 and 2023 are as follows:

Six Months Ended June 30,

Financial Advisory Asset Management Total Financial Advisory Asset Management Total

2 unchanged sentences

Foreign currency translation adjustments ( 931 ) – ( 931 ) 676 – 676

Balance, March 31 $ 312,828 $ 81,270 $ 394,098 $ 312,938 $ 81,247 $ 394,185

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Senior debt is comprised of the following as of March 31, 2024 and December 31, 2023:

Balance, June 30 $ 312,697 $ 81,270 $ 393,967 $ 313,375 $ 81,247 $ 394,622

Senior debt is comprised of the following as of June 30, 2024 and December 31, 2023:

Outstanding as of

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Amount Maturity

3 unchanged sentences

Debt Costs Carrying

Lazard Group 2025 Senior Notes (a) $ 400,000 2/13/25 3.75 % $ 164,347 $ 170 $ 164,177 $ 400,000 $ 531 $ 399,469

Lazard Group 2027 Senior Notes 300,000 3/1/27 3.625 % 300,000 1,138 298,862 300,000 1,235 298,765

Lazard Group 2028 Senior Notes 500,000 9/19/28 4.50 % 500,000 3,799 496,201 500,000 4,012 495,988

Lazard Group 2029 Senior Notes 500,000 3/11/29 4.375 % 500,000 3,828 496,172 500,000 4,022 495,978

Lazard Group 2031 Senior Notes (a) 400,000 3/15/31 6.00 % 400,000 3,968 396,032 – – –

Notes (a) $ 400,000 2/13/25 3.75 % $ 164,347 $ 121 $ 164,226 $ 400,000 $ 531 $ 399,469

Notes 300,000 3/1/27 3.625 % 300,000 1,040 298,960 300,000 1,235 298,765

Notes 500,000 9/19/28 4.50 % 500,000 3,586 496,414 500,000 4,012 495,988

Notes 500,000 3/11/29 4.375 % 500,000 3,635 496,365 500,000 4,022 495,978

Notes (a) 400,000 3/15/31 6.00 % 400,000 3,816 396,184 – – –

Total $ 1,864,347 $ 12,198 $ 1,852,149 $ 1,700,000 $ 9,800 $ 1,690,200

1 unchanged sentence

(a) In March 2024, Lazard Group completed an offering of $ 400,000 aggregate principal amount of 6.00 % senior notes due 2031.

Interest on the 2031 Notes is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2024.

Interest on the 2031 Notes is payable semi-annually on March 15 and September 15 of each year, beginning

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

September 15, 2024.

Lazard Group used a portion of the net proceeds from the 2031 Notes to purchase in a tender offer $ 235,653 aggregate principal amount of the 2025 Notes.

(b) The effective interest rates of the 2025 Notes, the 2027 Notes, the 2028 Notes, the 2029 Notes and the 2031 Notes are 3.78 %, 3.76 %, 4.67 %, 4.53 % and 6.14 %, respectively.

The Company’s senior debt is carried at its principal amount outstanding, net of unamortized debt costs.

At March 31, 2024 and December 31, 2023, the fair value of such senior debt was approximately $ 1,815,000 and $ 1,652,000 , respectively.

The Company’s senior debt is unsecured and is carried at its principal amount outstanding, net of unamortized debt costs.

At June 30, 2024 and December 31, 2023, the fair value of such senior debt was approximately $ 1,823,000 and $ 1,652,000 , respectively.

The fair value of the Company’s senior debt is based on market quotations.

1 unchanged sentence

On June 6, 2023 , Lazard Group entered into a Second Amended and Restated Credit Agreement with a group of lenders for a five-year , $ 200,000 senior revolving credit facility expiring in June 2028 (the “Second Amended and Restated Credit Agreement”).

The Second Amended and Restated Credit Agreement amended and restated the three-year , $ 200,000 senior revolving credit facility that was due to expire in July 2023 (the “Previous Credit Agreement”) in its entirety.

Borrowings under the Second Amended and Restated Credit Agreement generally will bear interest at adjusted term SOFR plus an applicable margin for specific interest periods determined based on Lazard Group’s highest credit rating from an internationally recognized credit agency.

The Second Amended and Restated Credit Agreement contains certain covenants, events of default and other customary provisions, including customary benchmark-replacement mechanics.

As of March 31, 2024, the Company had approximately $ 209,200 in unused lines of credit available to it, including the credit facility provided under the Second Amended and Restated Credit Agreement.

As of June 30, 2024, the Company had approximately $ 209,100 in unused lines of credit available to it, including the credit facility provided under the Second Amended and Restated Credit Agreement.

The Second Amended and Restated Credit Agreement and the indenture and the supplemental indentures relating to Lazard Group’s senior notes contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable.

As of March 31, 2024, the Company was in compliance with such provisions.

All of the Company’s senior debt obligations are unsecured.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

COMMITMENTS AND CONTINGENCIES

Commitments —See Notes 6 and 14 for information regarding commitments relating to investment capital funding commitments and obligations to fund our pension plans, respectively.

In June 2024, the Company commenced a non-cancelable office lease with a lease term of approximately 15 years.

Such lease has increased operating lease right-of-use assets and operating lease liabilities on the condensed consolidated statements of financial condition by $ 76,539 and $ 71,977 , respectively, as of June 30, 2024, the initial recognition being a noncash transaction.

In July 2024, the Company signed a lease agreement for additional office facilities, with lease commencement anticipated in 2027.

The lease term is 10 years and has undiscounted future lease payments of approximately $ 110,000 .

Other Commitments

See Notes 6 and 14 for information regarding commitments relating to investment capital funding commitments and obligations to fund our pension plans, respectively.

The fulfillment of the commitments described herein should not have a material adverse effect on the Company’s condensed consolidated financial position or results of operations.

4 unchanged sentences

The Company believes, however, based on currently available information, that the results of any pending matters, in the aggregate, will not have a material effect on its business or financial condition.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

Share Repurchase Program — The Board of Directors of Lazard authorized the repurchase of Lazard, Inc.

common stock (“common stock”) as set forth in the table below:

common stock (“common stock”) as set forth in the table below as of June 30, 2024:

Date Repurchase

2 unchanged sentences

July 2022 $ 500,000 December 31, 2024

The Company’s purchases under the share repurchase program over time are used to offset most or all of the shares that have been or will be issued under Lazard’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”).

The Company’s purchases under the share repurchase program over time are used to offset dilution from the shares that have been or will be issued under Lazard’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”).

Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions.

1 unchanged sentence

Purchases with respect to such program are set forth in the table below:

Three Months Ended March 31:

Six Months Ended June 30:

Purchased Average

1 unchanged sentence

2024 1,055,913 $ 38.66

During the three month periods ended March 31, 2024 and 2023, certain of our executive officers received common stock in connection with the vesting or settlement of previously-granted deferred equity incentive awards.

During the six month periods ended June 30, 2024 and 2023, certain of our executive officers received common stock in connection with the vesting or settlement of previously-granted deferred equity incentive awards.

The vesting or settlement of such equity awards gave rise to a tax payable by the executive officers, and, consistent with our past practice, the Company purchased shares of common stock from certain of our executive officers equal in value to all or a portion of the estimated amount of such tax.

The aggregate value of all such purchases during the three month periods ended March 31, 2024 and 2023 was approximately $ 11,200 and $ 11,100 , respectively.

The aggregate value of all such purchases during the six month periods ended June 30, 2024 and 2023 was approximately $ 11,200 and $ 11,100 , respectively.

Such shares of common stock are reported at cost, and are included in “common stock held by subsidiaries” on the accompanying condensed consolidated statements of financial condition.

As of March 31, 2024, a total of $ 178,090 of share repurchase authorization remaining available under Lazard, Inc.’s share repurchase program will expire on December 31, 2024 .

As of June 30, 2024, a total of $ 159,278 of share repurchase authorization remaining available under Lazard, Inc.’s share repurchase program will expire on December 31, 2024 .

In addition, on July 24, 2024, the Board of Directors authorized the repurchase of up to $ 200,000 of additional shares of common stock, which authorization will expire on December 31, 2026 , bringing the total share repurchase authorization as of July 24, 2024 to approximately $ 360,000 .

During the six month period ended June 30, 2024, Lazard, Inc.

had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

During the three month period ended March 31, 2024, Lazard, Inc.

had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

Preferred Stock —Lazard, Inc.

has 15,000,000 authorized shares of preferred stock, par value $ 0.01 per share, inclusive of its Series A and Series B preferred stock.

Series A and Series B preferred shares were issued in connection with certain prior year business acquisitions and were each non-participating securities convertible into common stock, and had no voting or dividend rights.

As of both March 31, 2024 and December 31, 2023, no shares of Series A or Series B preferred stock were outstanding.

Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax —The tables below reflect the balances of each component of AOCI at March 31, 2024 and 2023 and activity during the three month periods then ended:

Three Months Ended March 31, 2024

Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax — The tables below reflect the balances of each component of AOCI at June 30, 2024 and 2023 and activity during the three month and six month periods then ended:

Three Months Ended June 30, 2024

Adjustments Employee

2 unchanged sentences

Interests Total

Balance, January 1, 2024 $ ( 123,991 ) $ ( 165,958 ) $ ( 289,949 ) $ 1 $ ( 289,950 )

Balance - April 1, 2024 $ ( 140,253 ) $ ( 163,741 ) $ ( 303,994 ) $ 1 $ ( 303,995 )

Other comprehensive income (loss) before reclassifications ( 4,572 ) 789 ( 3,783 ) – ( 3,783 )

1 unchanged sentence

Net other comprehensive income (loss) ( 4,572 ) 2,274 ( 2,298 ) – ( 2,298 )

Balance, March 31, 2024 $ ( 140,253 ) $ ( 163,741 ) $ ( 303,994 ) $ 1 $ ( 303,995 )

Three Months Ended March 31, 2023

Balance, June 30, 2024 $ ( 144,825 ) $ ( 161,467 ) $ ( 306,292 ) $ 1 $ ( 306,293 )

Six Months Ended June 30, 2024

Adjustments Employee

6 unchanged sentences

Net other comprehensive income (loss) ( 20,834 ) 4,491 ( 16,343 ) – ( 16,343 )

Balance, March 31, 2023 $ ( 142,385 ) $ ( 140,571 ) $ ( 282,956 ) $ 1 $ ( 282,957 )

Balance, June 30, 2024 $ ( 144,825 ) $ ( 161,467 ) $ ( 306,292 ) $ 1 $ ( 306,293 )

Three Months Ended June 30, 2023

Adjustments Employee

Attributable to

Noncontrolling

Interests Total

Balance - April 1, 2023 $ ( 142,385 ) $ ( 140,571 ) $ ( 282,956 ) $ 1 $ ( 282,957 )

Other comprehensive income (loss) before reclassifications 2,478 ( 2,585 ) ( 107 ) ( 2 ) ( 105 )

Adjustments for items reclassified to earnings, net of tax – 1,176 1,176 – 1,176

Net other comprehensive income (loss) 2,478 ( 1,409 ) 1,069 ( 2 ) 1,071

Balance, June 30, 2023 $ ( 139,907 ) $ ( 141,980 ) $ ( 281,887 ) $ ( 1 ) $ ( 281,886 )

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month periods ended March 31, 2024 and 2023:

Six Months Ended June 30, 2023

Adjustments Employee

Attributable to

Noncontrolling

Interests Total

Balance - January 1, 2023 $ ( 156,924 ) $ ( 138,930 ) $ ( 295,854 ) $ – $ ( 295,854 )

Other comprehensive income (loss) before reclassifications 17,017 ( 5,386 ) 11,631 ( 1 ) 11,632

Adjustments for items reclassified to earnings, net of tax – 2,336 2,336 – 2,336

Net other comprehensive income (loss) 17,017 ( 3,050 ) 13,967 ( 1 ) 13,968

Balance, June 30, 2023 $ ( 139,907 ) $ ( 141,980 ) $ ( 281,887 ) $ ( 1 ) $ ( 281,886 )

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and six month periods ended June 30, 2024 and 2023:

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Employee benefit plans:

5 unchanged sentences

Such amounts are included in “operating expenses–other” on the condensed consolidated statements of operations.

Noncontrolling Interests —Noncontrolling interests principally represent (i) interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own, (ii) profits interest participation rights (see Note 13), (iii) LGAC interests (see Note 1) and (iv) consolidated VIE interests held by employees (see Note 21).

The tables below summarize net income attributable to noncontrolling interests for the three month periods ended March 31, 2024 and 2023 and noncontrolling interests as of March 31, 2024 and December 31, 2023 in the Company’s condensed consolidated financial statements:

Attributable to Noncontrolling

Three Months Ended

Edgewater $ 1,852 $ 639

Total noncontrolling interests (nonredeemable) 1,852 776

LFI Consolidated Funds 2,617 4,365

Total noncontrolling interests (redeemable) 2,617 6,197

Total noncontrolling interests $ 4,469 $ 6,973

Noncontrolling Interests as of

2024 December 31,

Edgewater $ 47,386 $ 46,571

Profits interest participation rights 8,418 11,843

Total $ 55,817 $ 58,428

Redeemable Noncontrolling Interests —Redeemable noncontrolling interests principally represent consolidated VIE interests held by employees (vested LFI awards), which may be redeemed at any time at the option of the holder for cash, are recorded on the Company’s condensed consolidated statements of financial position at redemption value and classified as temporary equity.

Changes in redemption value are recognized immediately as they occur and will adjust the

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period (see Note 21).

Dividends Declared, April 24, 2024 —On April 24, 2024 , the Board of Directors of Lazard declared a quarterly dividend of $ 0.50 per share on our common stock.

The dividend is payable on May 17, 2024 , to stockholders of record on May 6, 2024 .

Changes in redemption value are recognized immediately as they occur and will adjust the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period (see Note 21).

Dividends Declared, July 24, 2024 —On July 24, 2024 , the Board of Directors of Lazard declared a quarterly dividend of $ 0.50 per share on our common stock.

The dividend is payable on August 16, 2024 , to stockholders of record on August 5, 2024 .

INCENTIVE PLANS

Share-Based Incentive Plan Awards

A description of the 2018 Plan and Lazard’s 2008 Incentive Compensation Plan (the “2008 Plan”) and activity with respect thereto during the three month periods ended March 31, 2024 and 2023 is presented below.

Shares Available Under the 2018 Plan and 2008 Plan

Total shares available for issuance under incentive compensation plans are primarily from the 2018 Plan, which became effective on April 24, 2018.

Total shares available for issuance under incentive compensation plans are primarily from the 2018 Plan, which became effective on April 24, 2018 and was amended on May 9, 2024 to increase the aggregate number of shares authorized for issuance by 20,000,000 shares.

The aggregate number of shares authorized for issuance under the 2018 Plan is 70,000,000 .

Such shares may be issued pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), restricted stock awards (“RSAs”), profits interest participation rights (“PIPRs”), and other share-based awards, as further discussed below.

The 2008 Plan authorized the issuance of shares of common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs, PRSUs and other share-based awards.

The 2008 Plan was terminated on April 24, 2018 although outstanding deferred stock unit (“DSU”) awards granted under the 2008 Plan before its termination continue to be subject to its terms.

The following reflects the expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, PRSUs, RSAs and PIPRs) and “professional services” expense (with respect to DSUs) within the Company’s accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2024 and 2023:

Such shares may be issued pursuant to the grant or exercise of stock options;

stock appreciation rights;

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

restricted stock units, restricted stock awards, and deferred stock units (collectively “RSUs”);

performance-based restricted stock units (“PRSUs”);

profits interest participation rights (“PIPRs”);

and other share-based awards.

The following reflects the expense with respect to share-based incentive plans, which is primarily recorded within “compensation and benefits” expense in the Company’s accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2024 and 2023:

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Share-based incentive awards:

1 unchanged sentence

PRSUs 314 562 719 1,351

RSAs 3,903 6,926

PIPRs 21,614 18,200 30,287 37,262

3 unchanged sentences

The Company periodically assesses forfeiture rates, including as a result of any applicable performance conditions.

A change in estimated forfeiture rates or performance results in a cumulative adjustment to compensation and

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

benefits expense and also would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described below.

A change in estimated forfeiture rates or performance results in a cumulative adjustment to compensation and benefits expense and also would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described below.

The Company’s share-based incentive plans and awards are described below.

RSUs, PRSUs and DSUs

RSUs generally require future service as a condition for vesting (unless the recipient is then eligible for retirement under the Company’s retirement policy) and convert into shares of common stock on a one-for-one basis after the stipulated vesting periods.

RSUs and PRSUs

RSUs generally require future service as a condition for vesting (unless the recipient is then eligible for retirement under the Company’s retirement policy or is a non-executive member of the Board of Directors) and convert into shares of common stock on a one-for-one basis after the stipulated vesting periods.

The grant date fair value of the RSUs, net of an estimated forfeiture rate, is expensed over the requisite service periods (generally, one-third after two years and the remaining two-thirds after the third year), and is adjusted for actual forfeitures over such period.

RSUs generally include a dividend participation right that provides that, during the applicable vesting period, each RSU is attributed additional RSUs equivalent to any dividends paid on common stock during such period.

During the three month period ended March 31, 2024, dividend participation rights required the issuance of 230,377 RSUs and the associated charge to “retained earnings” (with corresponding credits to “additional paid-in-capital”) was $ 8,814 .

In connection with RSUs and PRSUs that settled during the three month period ended March 31, 2024, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,240,025 and 29,690 shares, respectively, of common stock during such three month period.

Accordingly, 1,788,672 and 33,479 shares, respectively, of common stock held by the Company were delivered during the three month period ended March 31, 2024.

PRSUs are RSUs that are subject to performance-based and service-based vesting conditions, and beginning with awards granted in February 2021, a market-based condition.

RSUs generally include a dividend participation right during the applicable vesting period, which is payable in additional units.

During the six month period ended June 30, 2024, dividend participation rights required the issuance of an aggregate 443,272 units of RSUs and the associated aggregate charge to “retained earnings” (with a corresponding credit to “additional paid-in-capital”) was $ 16,263 .

In connection with RSUs and PRSUs that settled during the six month period ended June 30, 2024, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,561,290 and 29,690 shares, respectively, of common stock during such six month period.

Accordingly, 2,169,708 and 33,479 shares, respectively, of common stock held by the Company were delivered during the six month period ended June 30, 2024.

PRSUs are a type of RSU that is incrementally subject to performance-based and service-based vesting conditions and a market-based condition.

The number of shares of common stock that a recipient receives upon vesting of a PRSU is calculated by reference to certain performance-based and market-based metrics that relate to Lazard, Inc.’s performance over a three-year period.

The target number of shares of common stock subject to each PRSU is one ;

however, based on the achievement of both the performance-based and market-based conditions, the number of shares of common stock that may be received will range from zero to 2.4 times the target number.

however, based on the achievement of both the performance-based and market-based conditions, the number of shares of common stock that may

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

be received will range from zero to 2.4 times the target number.

PRSUs vest on a single date approximately three years following the date of the grant, provided the applicable service and performance conditions are satisfied.

1 unchanged sentence

Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value.

Non-executive members of the Board of Directors (“Non-Executive Directors”) receive a portion of their compensation for service on the Board of Directors and its committees in the form of DSUs and can elect to receive the cash-portion of their compensation in DSUs in lieu of cash.

Total DSUs granted to Non-Executive Directors during the three month period ended March 31, 2024 were 3,146 .

DSUs are convertible into shares of common stock on a one-for-one basis at the time of cessation of service to the Board of Directors.

DSUs include a cash dividend participation right equivalent to dividends paid on common stock.

DSU awards are expensed at their fair value on their date of grant.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The following is a summary of activity relating to RSUs, PRSUs and DSUs during the three month period ended March 31, 2024:

RSUs PRSUs DSUs

The following is a summary of activity relating to RSUs and PRSUs during the six month period ended June 30, 2024:

Units Weighted

Fair Value Units Weighted

Balance, January 1, 2024 12,633,027 $ 36.16 125,465 $ 41.07

3 unchanged sentences

Settled ( 3,730,998 ) $ 38.64 ( 63,169 ) $ 46.63

Balance, March 31, 2024 16,011,966 $ 37.01 62,296 $ 35.44 331,876 $ 36.74

The weighted-average grant date fair value of RSUs granted in the three month periods ended March 31, 2024 and 2023 was $ 38.75 and $ 37.44 , respectively.

The weighted-average grant date fair value of DSUs granted in the three month periods ended March 31, 2024 and 2023 was $ 37.22 and $ 37.85 , respectively.

As of March 31, 2024, the total estimated unrecognized compensation expense of RSUs and PRSUs was $ 365,760 and $ 704 , respectively.

The Company expects to expense such amounts over weighted-average periods of approximately 1.1 and 0.2 years, respectively, subsequent to March 31, 2024.

The following is a summary of activity related to RSAs associated with compensation arrangements during the three month period ended March 31, 2024:

RSAs Weighted

Balance, January 1, 2024 1,235,946 $ 36.10

Granted (including 16,268 relating to dividend participation)

16,268 $ 36.13

Forfeited ( 4,376 ) $ 37.77

Settled ( 411,988 ) $ 37.40

Balance, March 31, 2024 835,850 $ 35.45

The weighted-average grant date fair value of RSAs granted in the three month periods ended March 31, 2024 and 2023 was $ 36.13 and $ 37.75 , respectively.

In connection with RSAs that settled during the three month period ended March 31, 2024, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 173,767 shares of common stock during such three month period.

Accordingly, 238,221 shares of common stock held by the Company were delivered during the three month period ended March 31, 2024.

RSAs granted in 2024 generally include a dividend participation right that provides that during the applicable vesting period each RSA is attributed additional RSAs equivalent to any dividends paid on common stock during such period.

During the three month period ended March 31, 2024, dividend participation rights required the issuance of 16,268 RSAs and the associated charge to “retained earnings” (with corresponding credits to “additional paid-in-capital”) was $ 627 .

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

At March 31, 2024, estimated unrecognized RSAs expense was $ 11,912 , with such expense to be recognized over a weighted average period of approximately 0.7 years subsequent to March 31, 2024.

Balance, June 30, 2024 16,534,720 $ 36.88 62,296 $ 35.44

The weighted-average grant date fair value of RSUs granted in the six month period ended June 30, 2023 was $ 36.78 .

As of June 30, 2024, the total estimated unrecognized compensation expense related to RSUs and PRSUs was $ 292,538 and $ 390 , respectively.

The Company expects to expense such amounts over weighted-average periods of approximately 1.0 and 0.2 years, respectively, subsequent to June 30, 2024.

Profits Interest Participation Rights

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PIPRs, with the exception of Stock Price PIPRs (“SP-PIPRs”), as explained below, generally provide for vesting approximately three years following the grant date, so long as applicable vesting and other conditions have been satisfied.

Like outstanding RSUs and similar awards, PIPRs are subject to continued employment and other conditions and restrictions and are forfeited if those conditions and restrictions are not fulfilled.

PIPRs are subject to continued employment and other conditions and restrictions and are forfeited if those conditions and restrictions are not fulfilled.

A recipient generally realizes value from PIPRs only to the extent that applicable vesting and other conditions are satisfied, and an amount of economic appreciation in the assets of Lazard Group occurs as necessary to satisfy certain partnership tax rules (referred to as the “Minimum Value Condition”), otherwise the PIPRs will be forfeited.

2 unchanged sentences

All PIPR awards are subject to service-based vesting conditions.

In addition to PIPR awards with only service based vesting conditions (“Ordinary PIPRs”) granted to certain of our executive officers and a limited number of employees, the Company has granted the following types of PIPRs to certain of our executive officers, that are subject to additional vesting and market-based conditions:

• Performance PIPRs (“P-PIPRs”), which are subject to service-based and performance-based vesting conditions, and beginning in February 2021, incremental market-based conditions.

In addition to PIPR awards with only service based vesting conditions (“Ordinary PIPRs”) granted to certain of our executive officers and a limited number of

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

employees, the Company has granted the following types of PIPRs to certain of our executive officers, that are subject to additional vesting and market-based conditions:

• Performance PIPRs (“P-PIPRs”), which are subject to service-based and performance-based vesting conditions and incremental market-based conditions.

• SP-PIPRs, which are subject to service-based vesting conditions and common stock price milestones and are eligible to vest in three tranches.

8 unchanged sentences

• 20 % if, during the three years following the date of grant, the common stock price has appreciated 25 % above the average trailing 30 consecutive day stock price preceding the date of grant (the “Grant Date Stock Price”);

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

• 40 % if, during the five years following the date of grant, the common stock price has appreciated 50 % above the Grant Date Stock Price;

2 unchanged sentences

If the service conditions and common stock price milestones, as described above, are not achieved as of the Expiration Date, all SP-PIPRs in such Tranche will be forfeited.

The following is a summary of activity relating to all PIPRs during the three month period ended March 31, 2024:

The following is a summary of activity relating to all PIPRs during the six month period ended June 30, 2024:

Ordinary PIPRs (a) P-PIPRs SP-PIPRs

6 unchanged sentences

Settled ( 601,433 ) $ 43.23 ( 995,169 ) $ 46.63 – $ –

Balance, March 31, 2024 3,408,300 $ 35.78 963,660 $ 35.44 2,250,000 $ 15.06

Balance, June 30, 2024 3,346,422 $ 35.78 963,660 $ 35.44 2,250,000 $ 15.06

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

__________________________

1 unchanged sentence

Fair values shown above represent the weighted average as of grant date.

The weighted-average grant date fair value of ordinary PIPRs granted in the three month periods ended March 31, 2024 and 2023 was $ 38.26 and $ 35.94 , respectively.

The weighted-average grant date fair value of ordinary PIPRs granted in the six month periods ended June 30, 2023 was $ 35.94 .

Compensation expense recognized for ordinary PIPRs and P-PIPRs is determined by multiplying the number of shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value.

Compensation expense recognized for SP-PIPRs is determined by multiplying the number of shares of common stock underlying such awards by the grant date fair value.

As of March 31, 2024, the total estimated unrecognized compensation expense of all profits interest participation rights was $ 100,467 and the Company expects to expense such amount over a weighted-average period of approximately 1.3 years subsequent to March 31, 2024.

As of June 30, 2024, the total estimated unrecognized compensation expense of all profits interest participation rights was $ 76,635 and the Company expects to expense such amount over a weighted-average period of approximately 1.4 years subsequent to June 30, 2024.

LFI and Other Similar Deferred Compensation Arrangements

3 unchanged sentences

The related compensation liability is accounted for at fair value as a derivative liability, which contemplates the impact of estimated forfeitures, and is adjusted for changes in fair value primarily related to changes in value of the underlying investments.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the three month period ended March 31, 2024:

The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the six month period ended June 30, 2024:

Asset Compensation

5 unchanged sentences

Other ( 77 ) ( 1,677 )

Balance, March 31, 2024 $ 122,235 $ 282,148

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.8 years subsequent to March 31, 2024.

The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2024 and 2023:

Balance, June 30, 2024 $ 93,774 $ 270,217

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.8 years subsequent to June 30, 2024.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Amortization and the impact of forfeitures $ 22,406 $ 57,558 $ 58,105 $ 92,086

2 unchanged sentences

Cash Retention Awards

In the first quarter of 2024, the Company granted and paid approximately $ 92,000 of cash retention awards that are subject to repayment in full in connection with a termination of employment for cause or resignation without good reason on or prior to the three-year service period.

In the first half of 2024, the Company granted and paid approximately $ 94,000 of cash retention awards that are subject to repayment in full in connection with a termination of employment for cause or resignation without good reason on or prior to the three-year service period.

In connection with these awards, the Company recorded a prepaid compensation asset on the grant date based upon the amount paid.

The prepaid compensation asset is amortized over the requisite service period beginning on the grant date and is charged to “compensation and benefits” expense in the condensed consolidated statements of operations.

Amortization expense for the three months ended March 31, 2024 was approximately $ 11,000 .

The remaining prepaid compensation asset was approximately $ 81,000 as of March 31, 2024.

Amortization expense for the six months ended June 30, 2024 was approximately $ 32,000 .

The remaining prepaid compensation asset was approximately $ 61,000 as of June 30, 2024.

EMPLOYEE BENEFIT PLANS

3 unchanged sentences

Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense for the service cost component, and “operating expenses-other” for the other components of benefit costs on the condensed consolidated statements of operations.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Employer Contributions to Pension Plans —The Company’s funding policy for its U.S.

1 unchanged sentence

Management also evaluates from time to time whether to make voluntary contributions to the plans.

The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s pension plans for the three month periods ended March 31, 2024 and 2023:

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s pension plans for the three month and six month periods ended June 30, 2024 and 2023:

Pension Plans

Three Months Ended March 31,

Three Months Ended June 30,

Components of Net Periodic Benefit Cost (Credit):

7 unchanged sentences

Net periodic benefit cost (credit) $ 857 $ 1,668

Pension Plans

Six Months Ended June 30,

Components of Net Periodic Benefit Cost (Credit):

Service cost $ 328 $ 182

Interest cost 10,429 10,424

Expected return on plan assets ( 13,076 ) ( 11,848 )

Amortization of:

Prior service cost 264 53

Net actuarial loss 3,533 3,044

Settlement loss – 1,542

Net periodic benefit cost (credit) $ 1,478 $ 3,397

COST-SAVING INITIATIVES

The Company conducted firm-wide cost-saving initiatives over the course of 2023 and during the first quarter of 2024.

Expenses and losses associated with the cost-saving initiatives for the three month periods ended March 31, 2024 and 2023 consisted of the following:

Three Months Ended March 31, 2024

The Company conducted firm-wide cost-saving initiatives over the course of 2023, which were completed during the first quarter of 2024.

Expenses and losses associated with the cost-saving initiatives for the six month period ended June 30, 2024 and for the three month and six month periods ended June 30, 2023 consisted of the following:

Six Months Ended June 30, 2024

Financial Advisory Asset Management Corporate Total

5 unchanged sentences

Total $ 33,481 $ 11,559 $ 3,689 $ 48,729

Three Months Ended March 31, 2023

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Three Months Ended June 30, 2023

Financial Advisory Asset Management Corporate Total

3 unchanged sentences

expense) $ 81,266 $ 29,533 $ 25,809 $ 136,608

Technology asset impairments

(included in "technology and

information services") 88 7,297 – 7,385

Other 522 280 1,910 2,712

Total $ 81,876 $ 37,110 $ 27,719 $ 146,705

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Activity related to the obligations pursuant to the cost-saving initiatives during the three month period ended March 31, 2024 was as follows:

Six Months Ended June 30, 2023

Financial Advisory Asset Management Corporate Total

Severance and other employee

termination expenses (included

in "compensation and benefits"

expense) $ 90,043 $ 40,768 $ 26,537 $ 157,348

Technology asset impairments

(included in "technology and

information services") 88 7,297 – 7,385

Other 522 280 1,910 2,712

Total $ 90,653 $ 48,345 $ 28,447 $ 167,445

Activity related to the obligations pursuant to the cost-saving initiatives during the six month period ended June 30, 2024 was as follows:

Accrued Compensation and Benefits Other Total

3 unchanged sentences

Payments and settlements 75,609 53 75,662

Balance, March 31, 2024 $ 36,496 $ 56 $ 36,552

Balance, June 30, 2024 $ 12,919 $ 18 $ 12,937

___________________________________

7 unchanged sentences

In addition, Lazard Group is subject to Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.

The Company recorded an income tax provision of $ 14,337 and an income tax benefit of $ 21,725 for the three month periods ended March 31, 2024 and 2023, respectively, representing effective tax rates of 26.3 % and 58.8 %, respectively.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The Company recorded income tax provisions of $ 11,587 and $ 25,924 for the three month and six month periods ended June 30, 2024, respectively, and an income tax provision (benefit) of $ 10,303 and $( 11,422 ) for the three month and six month periods ended June 30, 2023, respectively, representing effective tax rates of 18.2 %, 21.9 %, ( 9.4 )% and 7.8 %, respectively.

The difference between the U.S.

federal statutory rate of 21.0 % and the effective tax rates reflected above principally relates to (i) the tax impact of differences in the value of share based incentive compensation and other discrete items, (ii) foreign source income (loss) not subject to U.S.

federal statutory rate of 21.0 % and the effective tax rates reflected above principally relates to (i) the tax impact of differences in the value of share based incentive compensation, changes in judgment relating to uncertain tax positions and other discrete items, (ii) foreign source income (loss) not subject to U.S.

income taxes, (iii) taxes payable to foreign jurisdictions that are not offset against U.S.

5 unchanged sentences

The Company is required to utilize the “two-class” method of computing basic and diluted net income per share because the Company issued certain PIPRs, including certain P-PIPRs, which are treated as participating securities.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The Company’s basic and diluted net income (loss) per share calculations using the “two-class” method for the three month periods ended March 31, 2024 and 2023 are presented below:

The Company’s basic and diluted net income (loss) per share calculations using the “two-class” method for the three month and six month periods ended June 30, 2024 and 2023 are presented below:

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Net income (loss) attributable to Lazard $ 49,909 $ ( 124,013 ) $ 85,664 $ ( 146,185 )

12 unchanged sentences

___________________________________

(a) The aggregate weighted average number of incremental shares of common stock issuable from PIPRs for the three month period ended March 31, 2024 of 2,167,520 and from RSUs, PRSUs and PIPRs for the three month period ended March 31, 2023 of 6,046,499 , that could be potentially dilutive in future periods, have been excluded from the computation of diluted net income (loss) per share as the effect would be antidilutive in the respective periods.

(a) The aggregate weighted average number of incremental shares of common stock issuable from PIPRs for the three month and six month periods ended June 30, 2024 of 1,229,021 and 1,698,271 , respectively, and from RSUs, PRSUs and PIPRs for the three month and six month periods ended June 30, 2023 of 3,427,886 and 4,737,193 , respectively, that could be potentially dilutive in future periods, have been excluded from the computation of diluted net income (loss) per share as the effect would be antidilutive in the respective periods.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

RELATED PARTIES

1 unchanged sentence

The Company serves as an investment advisor for certain affiliated investment companies and fund entities and receives management fees and, for the alternative investment funds, performance-based incentive fees for providing such services.

Asset management fees relating to such services were $ 134,220 and $ 133,523 for the three month periods ended March 31, 2024 and 2023, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations.

Of such amounts, $ 56,134 and $ 67,598 remained as receivables at March 31, 2024 and December 31, 2023, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition.

Asset management fees relating to such services were $ 133,630 and $ 267,850 for the three month and six month periods ended June 30, 2024, respectively, and $ 135,847 and $ 269,370 for the three month and six month periods ended June 30, 2023, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations.

Of such amounts, $ 51,345 and $ 67,598 remained as receivables at June 30, 2024 and December 31, 2023, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition.

Tax Receivable Agreement

3 unchanged sentences

Any amount paid by our subsidiaries to the Trust will generally be distributed pro rata to the owners of the Trust, who include certain of our executive officers.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

required to pay had there been no increase in the tax basis of certain assets of Lazard Group and had our subsidiaries not entered into the TRA.

For purposes of the TRA, cash savings in income and franchise tax will be computed by comparing our subsidiaries’ actual income and franchise tax liability to the amount of such taxes that our subsidiaries would have been required to pay had there been no increase in the tax basis of certain assets of Lazard Group and had our subsidiaries not entered into the TRA.

The term of the TRA will continue until approximately 2033 or, if earlier, until all relevant tax benefits have been utilized or expired.

4 unchanged sentences

Adjustments, if necessary, to the related deferred tax assets would be recorded through the “provision (benefit) for income taxes”.

Pursuant to the periodic revaluation of the TRA liability and the assumptions reflected in the estimate, the revaluation had the effect in the three months ended March 31, 2023 of reducing the estimated liability under the TRA.

Pursuant to the periodic revaluation of the TRA liability and the assumptions reflected in the estimate, the revaluation had the effect in the six months ended June 30, 2023 of reducing the estimated liability under the TRA.

As a result, the Company recorded a “benefit pursuant to tax receivable agreement” of $ 40,435 on the condensed consolidated statements of operations.

The cumulative liability relating to our obligations under the TRA as of March 31, 2024 and December 31, 2023 was $ 115,001 and $ 115,087 , respectively, and is recorded in “tax receivable agreement obligation” on the condensed consolidated statements of financial condition.

The cumulative liability relating to our obligations under the TRA as of June 30, 2024 and December 31, 2023 was $ 84,137 and $ 115,087 , respectively, and is recorded in “tax receivable agreement obligation” on the condensed consolidated statements of financial condition.

See Note 12 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers.

2 unchanged sentences

registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the Exchange Act.

Under the basic method permitted by this rule, the minimum required net capital, as defined, is a specified fixed percentage (6 2/3%) of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $ 5 , whichever is greater.

Under the basic method permitted by this rule, the minimum required net capital, as defined, is a specified

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

fixed percentage (6 2/3%) of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $ 5 , whichever is greater.

In addition, the ratio of aggregate indebtedness (as defined) to net capital may not exceed 15:1.

At March 31, 2024, LFNY’s regulatory net capital was $ 117,818 , which exceeded the minimum requirement by $ 114,006 .

LFNY’s aggregate indebtedness to net capital ratio was 0.49 :1 as of March 31, 2024.

At June 30, 2024, LFNY’s regulatory net capital was $ 86,388 , which exceeded the minimum requirement by $ 80,804 .

LFNY’s aggregate indebtedness to net capital ratio was 0.97 :1 as of June 30, 2024.

subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (collectively, the “U.K.

Subsidiaries”) are regulated by the Financial Conduct Authority.

At March 31, 2024, the aggregate regulatory net capital of the U.K.

At June 30, 2024, the aggregate regulatory net capital of the U.K.

Subsidiaries was $ 171,625 , which exceeded the minimum requirement by $ 98,640 .

2 unchanged sentences

The investment services activities exercised through LFB and other subsidiaries of CFLF, primarily LFG, also are subject to regulation and supervision by the Autorité des Marchés Financiers.

At December 31, 2023, the consolidated regulatory net capital of CFLF was $ 156,703 , which exceeded the minimum requirement set for regulatory capital levels by $ 62,519 .

At March 31, 2024, the consolidated regulatory net capital of CFLF was $ 153,263 , which exceeded the minimum requirement set for regulatory capital levels by $ 54,335 .

In addition, pursuant to the consolidated supervision rules in the European Union, LFB, in particular, as a French credit institution, is required to be supervised by a regulatory body, either in the U.S.

1 unchanged sentence

LFB and certain other non-Financial Advisory subsidiaries of the Company in the European Union (referred to herein, on a combined basis, as the “combined European regulated group”) is subject to consolidated supervision based on an agreement with the ACPR and under such rules is required to comply with minimum requirements for regulatory net capital.

At December 31, 2023, the regulatory net capital of the combined European regulated group was $ 181,665 , which exceeded the minimum requirement

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

set for regulatory capital levels by $ 78,796 .

At March 31, 2024, the regulatory net capital of the combined European regulated group was $ 176,085 , which exceeded the minimum requirement set for regulatory capital levels by $ 68,858 .

Additionally, the combined European regulated group, together with our Financial Advisory entities in the European Union, is required to perform an annual risk assessment and provide certain other information on a periodic basis.

1 unchanged sentence

subsidiaries are subject to various capital adequacy requirements promulgated by various regulatory and exchange authorities in the countries in which they operate.

At March 31, 2024, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $ 101,442 , which exceeded the minimum required capital by $ 78,564 .

At March 31, 2024, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

At June 30, 2024, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $ 107,788 , which exceeded the minimum required capital by $ 84,389 .

At June 30, 2024, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

SEGMENT INFORMATION

3 unchanged sentences

In addition, as described in Note 1, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month periods ended March 31, 2024 and 2023 is prepared using the following methodology:

The Company’s segment information for the three month and six month periods ended June 30, 2024 and 2023 is prepared using the following methodology:

• Revenue and expenses directly associated with each segment are included in determining operating income.

1 unchanged sentence

• Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

The Company records other revenue, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

1 unchanged sentence

Such administrative services include, but are not limited to, accounting, tax, human resources, legal, information technology, facilities management and senior management activities.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(dollars in thousands, except for per share data, unless otherwise noted)

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Financial Advisory Net Revenue $ 411,308 $ 352,477 $ 864,815 $ 630,051

10 unchanged sentences

Operating Income (Loss) $ 63,640 $ ( 110,073 ) $ 118,201 $ ( 146,997 )

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Financial Advisory $ 1,154,804 $ 1,154,483

5 unchanged sentences

CONSOLIDATED VIEs

The Company’s consolidated VIEs as of March 31, 2024 and December 31, 2023 include certain funds (“LFI Consolidated Funds”) that were established for the benefit of employees participating in the Company’s existing LFI deferred compensation arrangement.

LFI Consolidated Funds

The Company’s consolidated VIEs as of June 30, 2024 and December 31, 2023 include certain funds (“LFI Consolidated Funds”) that were established for the benefit of employees participating in the Company’s existing LFI deferred compensation arrangement.

Lazard invests in these funds and is the investment manager and is therefore deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds.

The assets of LFI Consolidated Funds, except as it relates to $ 78,135 and $ 113,174 of LFI held by Lazard Group as of March 31, 2024 and December 31, 2023, respectively, can only be used to settle the obligations of LFI Consolidated Funds.

The Company’s consolidated VIE assets and liabilities for LFI Consolidated Funds as reflected in the condensed consolidated statements of financial condition consist of the following at March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

The assets of LFI Consolidated Funds, except as it relates to $ 73,053 and $ 113,174 of LFI held by Lazard Group as of June 30, 2024 and December 31, 2023, respectively, can only be used to settle the obligations of LFI Consolidated Funds.

June 30, 2024 December 31, 2023

Cash and cash equivalents $ 377 $ 4,627

6 unchanged sentences

Total liabilities $ 476 $ 23,851

Lazard Growth Acquisition Corp.

In addition, the Company’s consolidated VIEs for the six month period ended June 30, 2023 included Lazard Growth Acquisition Corp.

I (“LGAC”), a former special purpose acquisition company.

The Company held a controlling financial interest in LGAC through a subsidiary’s ownership of Class B founder shares of LGAC.

As a result, both LGAC and the sponsor were consolidated in the Company’s financial statements.

On February 23, 2023, LGAC redeemed all of its outstanding publicly held Class A ordinary shares as a result of LGAC not consummating a business combination within the time period required by its amended and restated memorandum and articles of association resulting in the distribution of $ 585,891 of the cash held in the trust account to the LGAC shareholders.

The Company recognized $ 17,929 of losses on the liquidation of LGAC in “revenue-other” on the condensed consolidated statement of operations for the six month period ended June 30, 2023.

In addition, $ 20,125 of non-cash deferred underwriting fees was no longer probable of being incurred and therefore was reversed from other liabilities to additional paid-in-capital.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements