What changed in this filing

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Item 1. Financial Statements

2024-11-01 compared with 2024-07-26 · 269 added, 235 removed, 992 unchanged (34% of the section changed)

Financial Statements (Unaudited)

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

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

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

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

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

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

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2024 AND DECEMBER 31, 2023

SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

(dollars in thousands, except for per share data)

September 30,

2024 December 31,

3 unchanged sentences

Receivables (net of allowance for credit losses of $ 27,239 and $ 28,503

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

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

Fees 529,322 560,552

2 unchanged sentences

Investments 688,411 701,964

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)

Property (net of accumulated amortization and depreciation of $ 332,911 and $ 414,547 at September 30, 2024 and December 31, 2023, respectively, including $ 72,921 of property held for sale at December 31, 2023)

158,440 232,516

1 unchanged sentence

Goodwill and other intangible assets (net of accumulated amortization

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

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

394,575 394,928

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2024 AND DECEMBER 31, 2023

SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

(dollars in thousands, except for per share data)

September 30,

2024 December 31,

13 unchanged sentences

15,000,000 shares authorized;

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

issued and outstanding at September 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 June 30, 2024 and December 31, 2023, including shares held by subsidiaries)

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

Additional paid-in-capital 284,091 247,204

3 unchanged sentences

Common stock held by subsidiaries, at cost ( 22,296,316 and 25,340,287

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

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

( 826,800 ) ( 937,259 )

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023

(dollars in thousands, except for per share data)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

20 unchanged sentences

NET INCOME (LOSS) 116,135 6,774 208,412 ( 128,801 )

LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 2,144 3,637 6,613 10,610

LESS - NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 8,197 ( 365 ) 14,810 10,245

NET INCOME (LOSS) ATTRIBUTABLE TO LAZARD $ 107,938 $ 7,139 $ 193,602 $ ( 139,046 )

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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

FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023

(dollars in thousands)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

2 unchanged sentences

Currency translation adjustments:

Currency translation adjustments before reclassification 41,627 ( 19,935 ) 20,793 ( 2,946 )

Adjustment for items reclassified to earnings – 2,129 – 2,157

Employee benefit plans:

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)

Actuarial gain (loss) (net of tax expense (benefit) of $( 2,254 ) and $ 1,195 for the three months ended September 30, 2024 and 2023, respectively, and $( 1,595 ) and $ 121 for the nine months ended September 30, 2024 and 2023, respectively)

( 9,033 ) 5,054 ( 7,429 ) ( 332 )

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)

Adjustment for items reclassified to earnings (net of tax expense of $ 545 and $ 374 for the three months ended September 30, 2024 and 2023, respectively, and $ 1,455 and $ 1,135 for the nine months ended September 30, 2024 and 2023, respectively)

1,888 1,580 4,775 3,916

1 unchanged sentence

COMPREHENSIVE INCOME (LOSS) 150,617 ( 4,398 ) 226,551 ( 126,006 )

LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 2,144 3,635 6,613 10,609

LESS - COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 8,230 ( 364 ) 14,843 10,245

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO LAZARD $ 142,387 $ ( 4,034 ) $ 211,708 $ ( 136,251 )

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023

(dollars in thousands)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

1 unchanged sentence

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization of property 18,319 21,660

Noncash lease expense 32,824 32,509

Amortization of deferred expenses and share-based incentive compensation 377,066 353,698

Noncash lease expense 49,903 47,641

Depreciation and amortization of property 27,284 32,177

Currency translation adjustment reclassification – 2,157

Amortization and other acquisition-related costs 189 239

1 unchanged sentence

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

Gain on sale of property ( 114,271 ) –

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

9 unchanged sentences

Additions to property ( 30,625 ) ( 19,505 )

Disposals of property 1,928 100

Purchase of investments ( 98,350 ) –

Proceeds from sale of property 194,283 –

Purchase of equity method investment ( 17,488 ) –

Purchase of debt securities ( 98,350 ) –

Proceeds from sales and maturities of debt securities 50,000 –

Other disposals of property 1,995 352

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

Net cash used in investing activities ( 109,483 ) ( 22,406 )

Net cash provided by (used in) investing activities 99,815 ( 29,669 )

CASH FLOWS FROM FINANCING ACTIVITIES:

15 unchanged sentences

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 14,763 ( 5,101 )

NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 140,530 ) ( 1,459,499 )

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 288,756 ( 1,632,625 )

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

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

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—September 30 $ 1,513,739 $ 1,006,775

See notes to condensed consolidated financial statements.

1 unchanged sentence

THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION:

September 30,

2024 December 31,

5 unchanged sentences

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

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2024

FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 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

Balance - July 1, 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

Comprehensive income (loss):

Net income 107,938 107,938 2,620 110,558 5,577

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

Other comprehensive income - net of tax 34,449 34,449 33 34,482

Amortization of share-based incentive compensation 74,787 74,787 797 75,584

8 unchanged sentences

LFI Consolidated Funds ( 2,041 )

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

Balance - September 30, 2024 112,766,091 $ 1,128 $ 284,091 $ 1,437,698 $ ( 271,844 ) 22,296,316 $ ( 826,800 ) $ 624,273 $ 55,715 $ 679,988 $ 84,467

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

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2024

(dollars in thousands)

16 unchanged sentences

Net income 193,602 193,602 6,155 199,757 8,655

Other comprehensive loss - net of tax ( 16,343 ) ( 16,343 ) – ( 16,343 )

Other comprehensive income - net of tax 18,106 18,106 33 18,139

Amortization of share-based incentive compensation 232,998 232,998 2,131 235,129

10 unchanged sentences

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

Balance - September 30, 2024 112,766,091 $ 1,128 $ 284,091 $ 1,437,698 $ ( 271,844 ) 22,296,316 $ ( 826,800 ) $ 624,273 $ 55,715 $ 679,988 $ 84,467

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 JUNE 30, 2023

FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 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

Balance - July 1, 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

Comprehensive income (loss):

8 unchanged sentences

( 28,196 ) ( 624,796 ) 23,145 ( 5,051 ) – ( 5,051 )

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

Contributions from noncontrolling interests, net – 61 61

LFI Consolidated Funds 1,449

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

Balance - September 30, 2023 112,766,091 $ 1,128 $ 202,617 $ 1,388,508 $ ( 293,059 ) 25,356,940 $ ( 937,876 ) $ 361,318 $ 58,243 $ 419,561 $ 81,781

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

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2023

(dollars in thousands)

16 unchanged sentences

Net income (loss) ( 139,046 ) ( 139,046 ) 4,696 ( 134,350 ) 5,549

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

Other comprehensive income - net of tax 2,795 2,795 – 2,795

Amortization of share-based incentive compensation 204,641 204,641 4,989 209,630

21 unchanged sentences

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

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

Balance - September 30, 2023 112,766,091 $ 1,128 $ 202,617 $ 1,388,508 $ ( 293,059 ) $ 25,356,940 $ ( 937,876 ) $ 361,318 $ 58,243 $ 419,561 $ 81,781

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 month and six month periods ended June 30, 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 June 30, 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 nine month periods ended September 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”).

15 unchanged sentences

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 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 results of operations for the three month and nine month periods ended September 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.

32 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

26 unchanged sentences

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

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 .

At September 30, 2024, the Company had deferred revenue of $ 137,040 included in “other liabilities” on the condensed consolidated statements of financial condition.

During the three month and nine month periods ended September 30, 2024, the Company recognized $ 5,134 and $ 15,702 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

1 unchanged sentence

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:

Of the Company’s fee receivables at September 30, 2024 and December 31, 2023, $ 116,333 and $ 113,929 , respectively, represented financing receivables for our Private Capital Advisory fees.

At September 30, 2024 and December 31, 2023, customers and other receivables included $ 93,417 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 September 30, 2024 and December 31, 2023.

The aggregate carrying amount of other fees and customers and other receivables was $ 472,277 and $ 561,978 at September 30, 2024 and December 31, 2023, respectively.

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

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

8 unchanged sentences

(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:

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

September 30,

2024 December 31,

7 unchanged sentences

Investments, at fair value 670,474 701,964

Equity method investments 17,937 –

Total investments $ 688,411 $ 701,964

___________________________________

(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.

(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 $ 23,829 , $ 133,925 and $ 237,687 , respectively, at September 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).

13 unchanged sentences

(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:

Equity method investments include an interest in a venture capital asset management entity accounted for under the equity method of accounting.

The carrying amount includes amounts related to intangible assets, which are amortized, and goodwill.

During the three month and nine month periods ended September 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

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

16 unchanged sentences

The contingent consideration liability is initially recorded at fair value on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition.

The fair value of the contingent consideration liability is remeasured at each reporting period.

The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods.

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

The fair value of the contingent consideration liability is remeasured at each

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

reporting period.

The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods.

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

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.

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

The following tables present, as of September 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:

September 30, 2024

Level 1 Level 2 Level 3 NAV Total

33 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

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month and nine month periods ended September 30, 2024 and 2023:

Three Months Ended September 30, 2024

Balance Net Unrealized/

11 unchanged sentences

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

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Balance Net Unrealized/

9 unchanged sentences

Total Level 3 liabilities $ 6,583 $ 159 $ – $ ( 2,300 ) $ – $ 4,442

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Balance Net Unrealized/

1 unchanged sentence

Issuances Sales/

Transfers (c) Foreign

Settlements/ Foreign

Adjustments Ending

7 unchanged sentences

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

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Balance Net Unrealized/

10 unchanged sentences

__________________________________

(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

(a) Earnings recorded in “ other revenue ” for investments in Level 3 assets for the three month and nine month periods ended September 30, 2024 and 2023 include net unrealized gains (losses) of $ 9 , $ 46 , $( 76 ) and $( 62 ), respectively.

Unrealized losses of $ 53 , $ 159 , $ 81 and $ 194 were recorded in “ amortization and other acquisition-related costs ” for the contingent consideration liability for the three month and nine month periods ended September 30, 2024 and 2023, respectively.

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

Settlements for the nine month periods ended September 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 nine month period ended September 30, 2023 reflect investments valued at NAV as of September 30, 2023 that were previously valued based on the acquisition price.

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

September 30, 2024

Investments Redeemable

12 unchanged sentences

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

(d) monthly ( 100 %)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

(d) monthly ( 32 %) and annually ( 68 %)

(e) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $ 8,800 are excluded.

23 unchanged sentences

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

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 June 30, 2024 and December 31, 2023.

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

5 unchanged sentences

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

September 30, 2024

Derivative Assets Derivative Liabilities

35 unchanged sentences

(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:

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 nine month periods ended September 30, 2024 and 2023 were as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

5 unchanged sentences

PROPERTY, NET

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

Life in Years June 30,

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

Life in Years September 30,

2024 December 31,

11 unchanged sentences

________________________

(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 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.

(a) On July 22, 2024, the Company completed the sale of an owned office building, including rights to the operating lease income, for gross proceeds of $ 194,283 .

The carrying amount of the property at the time of sale was $ 72,594 .

The asset was previously classified as property held for sale.

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

The sale resulted in a gain of $ 114,271 , which has been recognized in “revenue-other” on the condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2024 and is reported in the Corporate segment.

Effective June 30, 2024, in the table above, computer software is being reported separately for September 30, 2024 and December 31, 2023.

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

3 unchanged sentences

GOODWILL AND OTHER INTANGIBLE ASSETS

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

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

September 30,

2024 December 31,

2 unchanged sentences

$ 394,575 $ 394,928

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,

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

Nine Months Ended September 30,

Financial Advisory Asset Management Total Financial Advisory Asset Management Total

2 unchanged sentences

Foreign currency translation adjustments ( 323 ) – ( 323 ) 80 – 80

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:

Balance, September 30 $ 313,305 $ 81,270 $ 394,575 $ 312,779 $ 81,270 $ 394,049

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 September 30, 2024 and December 31, 2023:

Outstanding as of

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Amount Maturity

Rate(b) Principal Unamortized

Rate Effective Interest Rate Principal Unamortized

Debt Costs Carrying

8 unchanged sentences

__________________________

(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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

September 15, 2024.

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

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

On October 30, 2024, the Company announced that it will redeem all of the issued and outstanding 2025 Notes on December 12, 2024.

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.

At September 30, 2024 and December 31, 2023, the fair value of such senior debt was approximately $ 1,876,000 and $ 1,652,000 , respectively.

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

3 unchanged sentences

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

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 September 30, 2024, the Company had approximately $ 209,500 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, 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.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

COMMITMENTS AND CONTINGENCIES

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.

Such lease 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.

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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 as of June 30, 2024:

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

Date Repurchase

2 unchanged sentences

July 2022 $ 500,000 December 31, 2024

July 2024 $ 200,000 December 31, 2026

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”).

2 unchanged sentences

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

Six Months Ended June 30:

Nine Months Ended September 30:

Purchased Average

1 unchanged sentence

2024 1,123,413 $ 39.10

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 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 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.

During the nine month periods ended September 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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

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

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.

In addition, during the nine month periods ended September 30, 2024 and 2023, the Company purchased shares of common stock from certain of our executive officers.

The aggregate value of all such purchases during the nine month periods ended September 30, 2024 and 2023 was approximately $ 14,300 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 September 30, 2024, a total of $ 356,166 of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program, of which $ 156,166 will expire on December 31, 2024 and $ 200,000 will expire on December 31, 2026 .

During the nine month period ended September 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.

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

Three Months Ended September 30, 2024

Adjustments Employee

2 unchanged sentences

Interests Total

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

Balance - July 1, 2024 $ ( 144,825 ) $ ( 161,467 ) $ ( 306,292 ) $ 1 $ ( 306,293 )

Other comprehensive income (loss) before reclassifications 41,627 ( 9,033 ) 32,594 33 32,561

1 unchanged sentence

Net other comprehensive income (loss) 41,627 ( 7,145 ) 34,482 33 34,449

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

Six Months Ended June 30, 2024

Balance, September 30, 2024 $ ( 103,198 ) $ ( 168,612 ) $ ( 271,810 ) $ 34 $ ( 271,844 )

Nine Months Ended September 30, 2024

Adjustments Employee

6 unchanged sentences

Net other comprehensive income (loss) 20,793 ( 2,654 ) 18,139 33 18,106

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

Three Months Ended June 30, 2023

Balance, September 30, 2024 $ ( 103,198 ) $ ( 168,612 ) $ ( 271,810 ) $ 34 $ ( 271,844 )

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

Three Months Ended September 30, 2023

Adjustments Employee

2 unchanged sentences

Interests Total

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

Balance - July 1, 2023 $ ( 139,907 ) $ ( 141,980 ) $ ( 281,887 ) $ ( 1 ) $ ( 281,886 )

Other comprehensive income (loss) before reclassifications ( 19,935 ) 5,054 ( 14,881 ) 1 ( 14,882 )

1 unchanged sentence

Net other comprehensive income (loss) ( 17,806 ) 6,634 ( 11,172 ) 1 ( 11,173 )

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)

Six Months Ended June 30, 2023

Balance, September 30, 2023 $ ( 157,713 ) $ ( 135,346 ) $ ( 293,059 ) $ – $ ( 293,059 )

Nine Months Ended September 30, 2023

Adjustments Employee

3 unchanged sentences

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

Other comprehensive loss before reclassifications ( 2,946 ) ( 332 ) ( 3,278 ) – ( 3,278 )

Adjustments for items reclassified to earnings, net of tax 2,157 3,916 6,073 – 6,073

Net other comprehensive income (loss) ( 789 ) 3,584 2,795 – 2,795

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:

Balance, September 30, 2023 $ ( 157,713 ) $ ( 135,346 ) $ ( 293,059 ) $ – $ ( 293,059 )

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

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Currency translation losses (a) $ – $ 2,129 $ – $ 2,157

Employee benefit plans:

Amortization relating to employee benefit plans (a) $ 1,940 $ 1,561 $ 3,797 $ 3,097

Amortization relating to employee benefit plans (b) 2,433 1,954 6,230 5,051

Less - related income taxes 545 374 1,455 1,135

1,888 1,580 4,775 3,916

Total reclassifications, net of tax $ 1,888 $ 3,709 $ 4,775 $ 6,073

__________________________

(a) Included in the computation of net periodic benefit cost (see Note 14).

(a) Represents currency translation losses reclassified from AOCI associated with closing of certain of our offices.

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

(b) Included in the computation of net periodic benefit cost (see Note 14).

Such amounts are included in “operating expenses–other” 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)

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) and (iii) LGAC interests (see Note 21).

1 unchanged sentence

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 .

Dividends Declared, October 30, 2024 —On October 30, 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 November 15, 2024 , to stockholders of record on November 8, 2024 .

INCENTIVE PLANS

4 unchanged sentences

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”);

2 unchanged sentences

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

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

9 unchanged sentences

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

RSUs and PRSUs

2 unchanged sentences

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.

During the nine month period ended September 30, 2024, dividend participation rights required the issuance of an aggregate 608,673 units of RSUs and the associated aggregate charge to “retained earnings” (with a corresponding credit to “additional paid-in-capital”) was $ 23,896 .

In connection with RSUs and PRSUs that settled during the nine month period ended September 30, 2024, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,619,201 and 29,690 shares, respectively, of common stock during such nine month period.

Accordingly, 2,537,447 and 33,479 shares, respectively, of common stock held by the Company were delivered during the nine month period ended September 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.

1 unchanged sentence

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

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.

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.

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.

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

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

Units Weighted

5 unchanged sentences

Settled ( 4,156,648 ) $ 38.54 ( 63,169 ) $ 46.63

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

Balance, September 30, 2024 16,515,745 $ 36.93 62,296 $ 35.44

The weighted-average grant date fair value of RSUs granted in the nine month period ended September 30, 2023 was $ 36.56 .

As of September 30, 2024, the total estimated unrecognized compensation expense related to RSUs and PRSUs was $ 245,018 and $ 73 , respectively.

The Company expects to expense such amounts over weighted-average periods of approximately 1.8 and 0.1 years, respectively, subsequent to September 30, 2024.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

PIPRs are equity incentive awards that, subject to certain vesting and other conditions described below, may be exchanged for shares of common stock pursuant to the 2018 Plan.

7 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

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:

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 incremental market-based conditions.

7 unchanged sentences

Their aggregate fair value at the grant date, which based on the estimated probability of achieving the common stock price milestones is approximately $ 33,900 , is expensed over the requisite service periods.

SP-PIPRs will vest:

Each Tranche, as described below, is subject to the executive’s continued employment through the applicable anniversary of the date of grant and requires that the applicable common stock price milestone is sustained for any 30 consecutive day period prior to the anniversary of the date of grant of the applicable Tranche (the “Expiration Date”).

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

SP-PIPRs vest:

• 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”);

1 unchanged sentence

• 40 % if, during the seven years following the date of grant, the common stock price has appreciated 100 % above the Grant Date Stock Price.

Each Tranche is subject to the executive’s continued employment through the applicable anniversary of the date of grant and requires that the applicable common stock price milestone is sustained for any 30 consecutive day period prior to the anniversary of the date of grant of the applicable Tranche (the “Expiration Date”).

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 six month period ended June 30, 2024:

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

Ordinary PIPRs (a) P-PIPRs SP-PIPRs

6 unchanged sentences

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

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)

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

__________________________

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 six month periods ended June 30, 2023 was $ 35.94 .

The weighted-average grant date fair value of ordinary PIPRs and SP-PIPRs granted in the nine month periods ended September 30, 2023 was $ 35.94 and $ 15.06 , respectively.

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 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.

As of September 30, 2024, the total estimated unrecognized compensation expense of all profits interest participation rights was $ 58,979 and the Company expects to expense such amount over a weighted-average period of approximately 3.0 years subsequent to September 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.

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:

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 nine month period ended September 30, 2024:

Asset Compensation

5 unchanged sentences

Other ( 73 ) 384

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)

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 and six month periods ended June 30, 2024 and 2023:

Balance, September 30, 2024 $ 71,576 $ 284,968

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 1.3 years subsequent to September 30, 2024.

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

3 unchanged sentences

Cash Retention Awards

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 the first nine months 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 six months ended June 30, 2024 was approximately $ 32,000 .

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

Amortization expense for the nine months ended September 30, 2024 was approximately $ 47,000 .

The remaining prepaid compensation asset was approximately $ 44,000 as of September 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.

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:

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

Pension Plans

Three Months Ended June 30,

Components of Net Periodic Benefit Cost (Credit):

Three Months Ended September 30,

Components of Net Periodic Benefit Cost:

Service cost $ 170 $ 74

3 unchanged sentences

Prior service cost 138 28

Net actuarial loss (gain) 1,809 1,534

Net actuarial loss 2,295 1,926

Settlement loss – 791

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

Net periodic benefit cost $ 1,227 $ 2,073

Pension Plans

Six Months Ended June 30,

Components of Net Periodic Benefit Cost (Credit):

Nine Months Ended September 30,

Components of Net Periodic Benefit Cost:

Service cost $ 498 $ 256

5 unchanged sentences

Settlement loss – 2,333

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

Net periodic benefit cost $ 2,705 $ 5,470

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

COST-SAVING INITIATIVES

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

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

Nine Months Ended September 30, 2024

Financial Advisory Asset Management Corporate Total

5 unchanged sentences

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Financial Advisory Asset Management Corporate Total

6 unchanged sentences

information services") 56 515 – 571

Foreign exchange related losses associated with closing of certain offices (included in "revenue other") 2,164 – 2,483 4,647

Other 1,478 28 42 1,548

Total $ 3,677 $ 4,733 $ 7,297 $ 15,707

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Financial Advisory Asset Management Corporate Total

6 unchanged sentences

information services") 144 7,812 – 7,956

Foreign exchange related losses

associated with closing

of certain offices (included in

"revenue-other") 2,164 – 2,483 4,647

Other 2,000 308 1,952 4,260

Total $ 94,330 $ 53,078 $ 35,744 $ 183,152

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

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 nine month period ended September 30, 2024 was as follows:

Accrued Compensation and Benefits Other Total

3 unchanged sentences

Payments and settlements 79,797 53 79,850

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

Balance, September 30, 2024 $ 8,910 $ – $ 8,910

___________________________________

7 unchanged sentences

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

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 Company recorded income tax provisions of $ 45,052 and $ 70,976 for the three month and nine month periods ended September 30, 2024, respectively, and income tax benefits of $ 11,631 and $ 23,053 for the three month and nine month periods ended September 30, 2023, respectively, representing effective tax rates of 28.0 %, 25.4 %, 239.5 % and 15.2 %, respectively.

The difference between the U.S.

5 unchanged sentences

federal statutory tax rate.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

NET INCOME (LOSS) PER SHARE OF COMMON STOCK

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.

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:

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

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

13 unchanged sentences

___________________________________

(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)

(a) The aggregate weighted average number of incremental shares of common stock issuable from PIPRs for the three month and nine month periods ended September 30, 2024 of 1,229,021 and 1,541,854 , respectively, and from RSUs, PRSUs and PIPRs for the nine month period ended September 30, 2023 of 4,785,903 , 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.

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 $ 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.

Asset management fees relating to such services were $ 140,025 and $ 407,875 for the three month and nine month periods ended September 30, 2024, respectively, and $ 135,899 and $ 405,269 for the three month and nine month periods ended September 30, 2023, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations.

Of such amounts, $ 52,589 and $ 67,598 remained as receivables at September 30, 2024 and December 31, 2023, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

Tax Receivable Agreement

10 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 six months ended June 30, 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 nine months ended September 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 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.

The cumulative liability relating to our obligations under the TRA as of September 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

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.

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.

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

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.

At September 30, 2024, LFNY’s regulatory net capital was $ 126,504 , which exceeded the minimum requirement by $ 119,918 .

LFNY’s aggregate indebtedness to net capital ratio was 0.78 :1 as of September 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 June 30, 2024, the aggregate regulatory net capital of the U.K.

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

Subsidiaries was $ 156,894 , which exceeded the minimum requirement by $ 79,560 .

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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

CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) for its banking activities conducted through its subsidiary, LFB.

1 unchanged sentence

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 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 .

At June 30, 2024, the consolidated regulatory net capital of CFLF was $ 160,273 , which exceeded the minimum requirement set for regulatory capital levels by $ 68,870 .

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 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 .

At June 30, 2024, the regulatory net capital of the combined European regulated group was $ 182,588 , which exceeded the minimum requirement set for regulatory capital levels by $ 83,794 .

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 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.

At September 30, 2024, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $ 108,953 , which exceeded the minimum required capital by $ 84,860 .

At September 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 and six month periods ended June 30, 2024 and 2023 is prepared using the following methodology:

The Company’s segment information for the three month and nine month periods ended September 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

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

7 unchanged sentences

Operating Expenses 37,737 1,155 73,721 48,252

Operating Loss $ ( 26,926 ) $ ( 42,199 ) $ ( 31,660 ) $ ( 63,955 )

Operating Income (Loss) $ 82,334 $ ( 28,140 ) $ 50,674 $ ( 92,095 )

Total Net Revenue $ 784,866 $ 523,918 $ 2,234,968 $ 1,709,468

1 unchanged sentence

Operating Income (Loss) $ 161,187 $ ( 4,857 ) $ 279,388 $ ( 151,854 )

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Financial Advisory $ 1,169,828 $ 1,154,483

6 unchanged sentences

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.

The Company’s consolidated VIEs as of September 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 $ 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.

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 June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

The assets of LFI Consolidated Funds, except as it relates to $ 71,964 and $ 113,174 of LFI held by Lazard Group as of September 30, 2024 and December 31, 2023, respectively, can only be used to settle the obligations of LFI Consolidated Funds.

September 30, 2024 December 31, 2023

Cash and cash equivalents $ 2,921 $ 4,627

7 unchanged sentences

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.

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

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

3 unchanged sentences

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.

The Company recognized $ 17,929 of losses on the liquidation of LGAC in “revenue-other” on the condensed consolidated statement of operations for the nine month period ended September 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