Lazard Ltd Reports Full-Year And Fourth-Quarter 2012 Results

LAZARD LTD
SELECTED SUMMARY FINANCIAL INFORMATION (a)
(Non-GAAP - unaudited)
	Three Months Ended						% Change From
	December 31, 2012		September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011
($ in thousands, except per share data)
Revenues:
Financial Advisory
M&A and Other Advisory	$233,517		$171,417		$167,099		36%		40%
Capital Raising	27,685		14,174		17,691		95%		56%
Strategic Advisory	261,202		185,591		184,790		41%		41%
Restructuring	48,095		34,382		75,704		40%		(36%)
Total	309,297		219,973		260,494		41%		19%
Asset Management
Management fees	208,637		202,324		190,073		3%		10%
Incentive fees	26,755		10,606		5,373		NM		NM
Other	9,815		7,397		8,960		33%		10%
Total	245,207		220,327		204,406		11%		20%
Corporate	19,143		2,911		3,807		NM		NM
Operating revenue (b)	$573,647		$443,211		$468,707		29%		22%
Expenses:
Compensation and benefits expense (c)	$341,766		$278,070		$337,007		23%		1%
Ratio of compensation to operating revenue	59.6%		62.7%		71.9%
Non-compensation expense (d)	$114,908		$95,113		$108,674		21%		6%
Ratio of non-compensation to operating revenue	20.0%		21.5%		23.2%
Earnings:
Earnings from operations (e)	$116,973		$70,028		$23,026		67%		NM
Operating margin (f)	20.4%		15.8%		4.9%
Net income (g)	$81,627		$35,384		$1,431		NM		NM
Diluted net income per share	$0.61		$0.26		$0.01		NM		NM
Diluted weighted average shares	133,855,611		135,380,036		135,721,618		(1%)		(1%)
Effective tax rate (h)	15.1%		26.7%		NM
This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

LAZARD LTD
SELECTED SUMMARY FINANCIAL INFORMATION (a)
(Non-GAAP - unaudited)
	Year Ended December 31,
($ in thousands, except per share data)	2012		2011		% Change
Revenues:
Financial Advisory
M&A and Other Advisory	$792,928		$700,539		13%
Capital Raising	73,403		93,888		(22%)
Strategic Advisory	866,331		794,427		9%
Restructuring	182,759		197,743		(8%)
Total	1,049,090		992,170		6%
Asset Management
Management fees	806,044		818,038		(1%)
Incentive fees	43,661		26,245		66%
Other	32,470		38,494		(16%)
Total	882,175		882,777		-
Corporate	39,551		8,922		NM
Operating revenue (b)	$1,970,816		$1,883,869		5%
Expenses:
Compensation and benefits expense (c)	$1,217,791		$1,168,229		4%
Ratio of compensation to operating revenue	61.8%		62.0%
Non-compensation expense (d)	$421,023		$399,677		5%
Ratio of non-compensation to operating revenue	21.4%		21.2%
Earnings:
Earnings from operations (e)	$332,002		$315,963		5%
Operating margin (f)	16.8%		16.8%
Net income (g)	$194,907		$178,614		9%
Diluted net income per share	$1.44		$1.31		10%
Diluted weighted average shares	135,116,690		137,629,525		(2%)
Effective tax rate (h)	21.3%		20.7%
This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

LAZARD LTD
COMPENSATION AND BENEFITS - ANALYSIS
(unaudited)
($ in millions except share price)
					2006		2007		2008		2009		2010		2011		2012
ADJUSTED U.S. GAAP BASIS (c)
Base salary and benefits					$397.8		$456.2		$467.7		$422.6		$452.9		$506.4		$515.8
Cash incentive compensation					470.6		562.1		224.7		404.6		472.8		372.4		367.2
Total cash compensation and benefits					868.4		1,018.3		692.4		827.2		925.7		878.8		883.0
Amortization of deferred incentive awards					23.0		104.8		238.3		333.4		240.5		289.4		334.8
Compensation and benefits - Adjusted U.S. GAAP basis (i)					$891.4		$1,123.1		$930.7		$1,160.6		$1,166.2		$1,168.2		$1,217.8
% of Operating Revenue					56.7%		55.7%		55.6%		71.7%		58.9%		62.0%		61.8%
AWARDED BASIS
Total cash compensation and benefits (per above)					$868.4		$1,018.3		$692.4		$827.2		$925.7		$878.8		$883.0
Deferred year-end incentive awards					203.9		336.7		351.7		239.3		292.7		282.4		272.4
Compensation and benefits - before special deferred
incentive awards					1,072.3		1,355.0		1,044.1		1,066.5		1,218.4		1,161.2		1,155.4
Sign-on and other special deferred incentive awards (j)					12.8		87.9		179.6		39.2		27.3		40.0		42.1
Year-end foreign exchange adjustment (k)					6.9		6.6		(9.7)		5.6		3.3		(4.6)		1.4
Total Compensation and benefits - Notional					1,092.0		1,449.5		1,214.0		1,111.3		1,249.0		1,196.6		1,198.9
Adjustment for actual/estimated forfeitures (l)					(23.8)		(35.2)		(21.7)		(17.1)		(27.8)		(28.0)		(27.4)
Total Compensation and benefits - Awarded					$1,068.2		$1,414.3		$1,192.3		$1,094.2		$1,221.2		$1,168.6		$1,171.5
% of Operating Revenue - Awarded Basis					68.0%		70.2%		71.2%		67.6%		61.7%		62.0%		59.4%
Memo:
	Total value of deferred equity-based year end
	incentive awards				$198.9		$332.2		$202.3		$233.8		$261.4		$192.7		TBD
	Equity-based year end awards - share equivalents ('000)				3,971		8,787		6,489		6,477		5,775		6,932		TBD
	Price at issuance				$50.08		$37.81		$31.17		$36.10		$45.26		$27.80		TBD
	Deferred compensation awards ratio (m)				19.1%		23.8%		29.5%		21.9%		24.0%		24.2%		23.3%
	Operating revenue				$1,571.1		$2,014.8		$1,675.1		$1,617.6		$1,978.5		$1,883.9		$1,970.8
This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to comparable U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Statement of Operations and Notes to Financial Schedules.

LAZARD LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. GAAP)
	Three Months Ended						% Change From
	December 31,		September 30,		December 31,		September 30,		December 31,
($ in thousands, except per share data)	2012		2012		2011		2012		2011
Total revenue	$580,857		$449,464		$473,109		29%		23%
Interest expense	(20,164)		(20,658)		(21,331)
Net revenue	560,693		428,806		451,778		31%		24%
Operating expenses:
Compensation and benefits	445,602		283,818		338,934		57%		31%
Occupancy and equipment	32,854		25,680		30,668
Marketing and business development	25,888		19,096		29,577
Technology and information services	23,750		21,474		22,646
Professional services	12,859		8,514		13,929
Fund administration and outsourced services	12,090		13,179		12,016
Amortization of intangible assets related to acquisitions	2,187		2,494		7,019
Other	10,660		7,825		11,447
Subtotal	120,288		98,262		127,302		22%		(6%)
Provision pursuant to tax receivable agreement	-		-		429
Operating expenses	565,890		382,080		466,665		48%		21%
Operating income (loss)	(5,197)		46,726		(14,887)		NM		65%
Provision (benefit) for income taxes	(1,091)		13,053		(6,764)		NM		NM
Net income (loss)	(4,106)		33,673		(8,123)		NM		49%
Net income (loss) attributable to noncontrolling interests	1,259		372		(3,330)
Net income (loss) attributable to Lazard Ltd	($5,365)		$33,301		($4,793)		NM		(12%)
Attributable to Lazard Ltd Common Stockholders:
Weighted average shares outstanding:
Basic	114,747,744		115,603,351		119,369,997		(1%)		(4%)
Diluted	114,747,744		135,380,036		119,369,997		(15%)		(4%)
Net income (loss) per share:
Basic	($0.05)		$0.29		($0.04)		NM		(25%)
Diluted	($0.05)		$0.26		($0.04)		NM		(25%)

LAZARD LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. GAAP)
		Year Ended
		December 31,		December 31,
($ in thousands, except per share data)		2012		2011		% Change
Total revenue		$1,994,013		$1,919,638		4%
Interest expense		(81,565)		(90,126)
Net revenue		1,912,448		1,829,512		5%
Operating expenses:
Compensation and benefits		1,351,129		1,168,945		16%
Occupancy and equipment		113,163		100,698
Marketing and business development		95,573		88,411
Technology and information services		86,892		83,212
Professional services		43,958		48,324
Fund administration and outsourced services		51,390		52,793
Amortization of intangible assets related to acquisitions		8,359		11,915
Other		38,099		39,286
Subtotal		437,434		424,639		3%
Provision pursuant to tax receivable agreement		-		429
Operating expenses		1,788,563		1,594,013		12%
Operating income		123,885		235,499		(47%)
Provision for income taxes		31,100		44,940		(31%)
Net income		92,785		190,559		(51%)
Net income attributable to noncontrolling interests		8,476		15,642
Net income attributable to Lazard Ltd		$84,309		$174,917		(52%)
Attributable to Lazard Ltd Common Stockholders:
Weighted average shares outstanding:
Basic		116,953,989		118,032,020		(1%)
Diluted		129,325,622		137,629,525		(6%)
Net income per share:
Basic		$0.72		$1.48		(51%)
Diluted		$0.65		$1.36		(52%)

LAZARD LTD
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL CONDITION
(U.S. GAAP)
			December 31,		December 31,
($ in thousands)			2012		2011
ASSETS
Cash and cash equivalents			$850,190		$1,003,791
Deposits with banks			292,494		286,037
Cash deposited with clearing organizations and other segregated cash			65,232		75,506
Receivables			478,043		504,455
Investments			414,673		378,521
Goodwill and other intangible assets			392,822		393,099
Other assets			493,439		440,527
Total Assets			$2,986,893		$3,081,936
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities
Deposits and other customer payables			$269,763		$288,427
Accrued compensation and benefits			467,578		383,513
Senior debt			1,076,850		1,076,850
Other liabilities			521,162		466,290
Total liabilities			2,335,353		2,215,080
Commitments and contingencies
Stockholders' equity
Preferred stock, par value $.01 per share			-		-
Common stock, par value $.01 per share			1,282		1,230
Additional paid-in capital			846,050		659,013
Retained earnings			182,647		258,646
Accumulated other comprehensive loss, net of tax			(110,541)		(88,364)
			919,438		830,525
Class A common stock held by subsidiaries, at cost			(349,782)		(104,382)
Total Lazard Ltd stockholders' equity			569,656		726,143
Noncontrolling interests			81,884		140,713
Total stockholders' equity			651,540		866,856
Total liabilities and stockholders' equity			$2,986,893		$3,081,936

LAZARD LTD
ASSETS UNDER MANAGEMENT ("AUM")
(unaudited)
($ in millions)
	As of						Variance
	December 31,		September 30,		December 31,
	2012		2012		2011		Qtr to Qtr		YTD
Equities	$138,171		$132,231		$116,362		4.5%		18.7%
Fixed Income	22,718		21,905		17,750		3.7%		28.0%
Alternative Investments	4,600		4,753		5,349		(3.2%)		(14.0%)
Private Equity	1,398		1,428		1,486		(2.1%)		(5.9%)
Cash	173		94		92		84.0%		88.0%
Total AUM	$167,060		$160,411		$141,039		4.1%		18.4%
	Three Months Ended December 31,						Year Ended December 31,
	2012		2011				2012		2011
AUM - Beginning of Period	$160,411		$135,812				$141,039		$155,337
Net Flows	(47)		(294)				2,741		(1,048)
Market and foreign exchange
appreciation (depreciation)	6,696		5,521				23,280		(13,250)
AUM - End of Period	$167,060		$141,039				$167,060		$141,039
Average AUM	$163,816		$140,136				$155,549		$152,072
% Change in average AUM	16.9%						2.3%
Note: Average AUM is generally based on an average of quarterly ending balances for the respective periods.

LAZARD LTD
RECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL INFORMATION (a)
(unaudited)
	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
($ in thousands, except per share data)	2012		2012		2011		2012		2011
Operating Revenue
Net revenue - U.S. GAAP Basis	$560,693		$428,806		$451,778		$1,912,448		$1,829,512
Adjustments:
Gain on repurchase of subordinated debt	-		-		-		-		(18,171)
Revenue related to noncontrolling interests (n)	(3,963)		(1,193)		(2,351)		(14,104)		(16,696)
Loss (gain) related to Lazard Fund Interests ("LFI") and other similar arrangements	(2,918)		(4,728)		(937)		(7,557)		3,024
Interest expense	19,835		20,326		20,217		80,029		86,200
Operating revenue, as adjusted	$573,647		$443,211		$468,707		$1,970,816		$1,883,869
Compensation & Benefits Expense
Compensation & benefits expense - U.S. GAAP Basis	$445,602		$283,818		$338,934		$1,351,129		$1,168,945
Adjustments:
Charges pertaining to cost savings initiatives (Q4)	(99,987)		-		-		(99,987)		-
Charges pertaining to staff reductions (Q1)	-		-		-		(21,754)		-
(Charges) credits pertaining to LFI and other similar arrangements compensation liability	(2,918)		(4,728)		(937)		(7,557)		3,024
Compensation related to noncontrolling interests (n)	(931)		(1,020)		(990)		(4,040)		(3,740)
Compensation & benefits expense, as adjusted	$341,766		$278,070		$337,007		$1,217,791		$1,168,229
Non-Compensation Expense
Non-compensation expense - Subtotal - U.S. GAAP Basis	$120,288		$98,262		$127,302		$437,434		$424,639
Adjustments:
Charges pertaining to cost savings initiatives (Q4)	(2,589)		-		-		(2,589)		-
Charges pertaining to staff reductions (Q1)	-		-		-		(2,905)		-
Write-off of Lazard Alternative Investment Holdings option prepayment	-		-		(5,500)		-		(5,500)
Provision for onerous lease contract for UK facility	-		-		(5,539)		-		(5,539)
Amortization of intangible assets related to acquisitions	(2,187)		(2,494)		(7,019)		(8,359)		(11,915)
Non-compensation expense related to noncontrolling interests (n)	(604)		(655)		(570)		(2,558)		(2,008)
Non-compensation expense, as adjusted	$114,908		$95,113		$108,674		$421,023		$399,677
Earnings From Operations
Operating Income (loss) - U.S. GAAP Basis	($5,197)		$46,726		($14,887)		$123,885		$235,499
Other adjustments:
Charges pertaining to cost savings initiatives (Q4)	102,576		-		-		102,576		-
Charges pertaining to staff reductions (Q1)	-		-		-		24,659		-
Gain on repurchase of subordinated debt	-		-		-		-		(18,171)
Write-off of Lazard Alternative Investment Holdings option prepayment	-		-		5,500		-		5,500
Provision for onerous lease contract for UK facility	-		-		5,539		-		5,539
Revenue related to noncontrolling interests (n)	(3,963)		(1,193)		(2,351)		(14,104)		(16,696)
Interest expense	19,835		20,326		20,217		80,029		86,200
Expenses related to noncontrolling interests (n)	1,535		1,675		1,560		6,598		5,748
Amortization of intangible assets related to acquisitions	2,187		2,494		7,019		8,359		11,915
Adjustment related to the provision pursuant to the tax receivable agreement ("TRA")	-		-		429		-		429
Earnings from operations, as adjusted	$116,973		$70,028		$23,026		$332,002		$315,963
Net Income attributable to Lazard Ltd
Net income (loss) attributable to Lazard Ltd - U.S. GAAP Basis	($5,365)		$33,301		($4,793)		$84,309		$174,917
Adjustments:
Charges pertaining to cost savings initiatives (Q4)	102,576		-		-		102,576		-
Charges pertaining to staff reductions (Q1)	-		-		-		24,659		-
Gain on repurchase of subordinated debt	-		-		-		-		(18,171)
Write-off of Lazard Alternative Investment Holdings option prepayment	-		-		5,500		-		5,500
Provision for onerous lease contract for UK facility	-		-		5,539		-		5,539
Tax (benefits) allocated to adjustments	(15,542)		140		(4,634)		(21,108)		-
Amount attributable to LAZ-MD Holdings	(1,340)		(49)		(390)		(2,449)		411
Adjustment for full exchange of exchangeable interests (o):
Tax adjustment for full exchange	(200)		5		(190)		(643)		(1,135)
Amount attributable to LAZ-MD Holdings	1,498		1,987		399		7,563		11,553
Net income, as adjusted	$81,627		$35,384		$1,431		$194,907		$178,614
Diluted net income (loss) per share:
U.S. GAAP Basis	($0.05)		$0.26		($0.04)		$0.65		$1.36
Non-GAAP Basis, as adjusted	$0.61		$0.26		$0.01		$1.44		$1.31
This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to comparable U.S. GAAP measures, see Notes to Financial Schedules.

LAZARD LTD
Notes to Financial Schedules
(a)	Selected Summary Financial Information are non-U.S. GAAP ("non-GAAP") measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(b)	A non-GAAP measure which excludes (i) gains/losses related to the changes in the fair value of investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements for which a corresponding equal amount is excluded from compensation & benefits expense, (ii) revenues related to non-controlling interests (see (n) below), (iii) interest expense primarily related to corporate financing activities, and (iv) for the twelve month period ended December 31, 2011, excludes the gain on repurchase of the Company's subordinated debt. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(c)	A non-GAAP measure which excludes (i) charges/credits related to the changes in the fair value of the compensation liability recorded in connection with Lazard Fund Interests and other similar deferred compensation arrangements, (ii) compensation and benefits related to noncontrolling interests (see (n) below), (iii) for the three and twelve month periods ended December 31, 2012, charges pertaining to the implementation of cost-savings initiatives (see (g) below), and (iv) for the twelve month period ended December 31, 2012, certain first quarter charges pertaining to staff reductions (see (g) below). (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(d)	A non-GAAP measure which excludes (i) amortization of intangible assets related to acquisitions, (ii) expenses related to noncontrolling interests (see (n) below), (iii) for the three and twelve month periods ended December 31, 2012, charges pertaining to the implementation of cost-savings initiatives (see (g) below), and (iv) for the twelve month period ended December 31, 2012, certain first quarter charges pertaining to staff reductions (see (g) below). The three and twelve month periods for 2011 are also adjusted to exclude a provision for an onerous lease contract for the Company's leased facility in the U.K. and a charge related to the write-off of a partial prepayment of the Company's option to acquire the fund management activities of Lazard Alternative Investment Holdings. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(e)	A non-GAAP measure which excludes (i) amortization of intangible assets related to acquisitions, (ii) interest expense primarily related to corporate financing activities, (iii) revenues and expenses related to noncontrolling interests (see (n) below), (iv) for the three and twelve month periods ended December 31, 2012, charges pertaining to the implementation of cost-savings initiatives (see (g) below), (v) for the twelve month period ended December 31, 2012, certain first quarter charges pertaining to staff reductions (see (g) below), (vi) for the twelve month period ended December 31, 2011, gain on repurchase of the Company's subordinated debt, (vii) for the three and twelve month periods for 2011 a provision for an onerous lease contract for the Company's leased facility in the U.K. and a charge related to the write-off of a partial prepayment of the Company's option to acquire the fund management activities of Lazard Alternative Investment Holdings, and (viii) for the three and twelve month periods ended December 31, 2011, a provision pursuant to the tax receivable agreement of $429. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(f)	Represents earnings from operations as a percentage of operating revenue, and is a non-GAAP measure. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(g)	A non-GAAP measure which is adjusted to reflect the full conversion of outstanding exchangeable interests held by members of LAZ-MD Holdings and excludes (i) for the three and twelve month periods ended December 31, 2012, charges pertaining to cost-savings initiatives including severance benefit payments, acceleration of unrecognized amortization of deferred incentive compensation previously granted to individuals terminated and other non-compensation related costs, net of applicable tax benefits, (ii) for the twelve month period ended December 31, 2012, certain first quarter charges pertaining to staff reductions including severance, benefit payments and acceleration of unrecognized amortization of deferred incentive compensation previously granted to individuals terminated, net of applicable tax benefits, (iii) for the twelve month period ended December 31, 2011, excludes gain on repurchase of the Company's subordinated debt, net of applicable tax, (iv) for the three and twelve month periods ended December 31, 2011, a provision for an onerous lease contract for the Company's leased facility in the U.K. and a charge related to the write-off of a partial prepayment of the Company's option to acquire the fund management activities of Lazard Alternative Investment Holdings. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(h)	Effective tax rate is a non-GAAP measure which is computed based on a quotient, the numerator of which is the provision (benefit) for income taxes of $14,572, $12,908 and ($1,511) for the three month periods ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively, and $52,772 and $46,504 for the twelve month periods ended December 31, 2012 and 2011, respectively, and the denominator of which is pre-tax income (loss) of $97,300, $46,726 and ($3,419) for the three month periods ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively, and $251,041 and $228,796 for the twelve month periods ended December 31, 2012 and 2011, respectively, exclusive of net income (loss) attributable to noncontrolling interests of $1,101, ($1,566) and ($3,339) for the three month periods ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively, and $3,362 and $3,678 for the twelve month periods ended December 31, 2012 and 2011, respectively.
(i)	A reconciliation of U.S. GAAP compensation and benefits expense to compensation and benefits expense, as adjusted:
		Year Ended December 31,
	($ in thousands)	2006		2007		2008		2009		2010		2011		2012
	Compensation & benefits expense - U.S. GAAP Basis	$891,421		$1,123,068		$1,128,253		$1,309,240		$1,194,168		$1,168,945		$1,351,129
	Adjustments:
	Charges pertaining to cost savings initiatives (Q4)	-		-		-		-		-		-		(99,987)
	Charges pertaining to staff reductions (Q1)	-		-		-		-		-		-		(21,754)
	(Charges) credits pertaining to LFI and other similar arrangements comp. liability	-		-		-		-		-		3,024		(7,557)
	Acceleration of restricted stock unit vesting related to retirement policy change	-		-		-		-		(24,860)		-		-
	Acceleration of unamortized restricted stock units	-		-		-		(86,514)		-		-		-
	Acceleration of unamortized deferred cash awards	-		-		-		(60,512)		-		-		-
	LAM Equity Charge	-		-		(197,550)		-		-		-		-
	Compensation related to noncontrolling interests (n)	-		-		-		(1,657)		(3,098)		(3,740)		(4,040)
	Compensation & benefits expense, as adjusted	$891,421		$1,123,068		$930,703		$1,160,557		$1,166,210		$1,168,229		$1,217,791
LAZARD LTD
Notes to Financial Schedules (continued)
(j)	Special deferred incentive awards are granted outside the year end compensation process and include grants to new hires.
(k)	Represents an adjustment to year end foreign exchange spot rate from full year average rate for year end incentive compensation awards.
(l)	Under U.S. GAAP, an estimate is made for future forfeitures of the deferred portion of such awards. This estimate is based on both historical experience and future expectations. The result reflects the cost associated with awards that are expected to vest. This calculation is undertaken in order to present awarded compensation on a similar basis to GAAP compensation. Amounts for 2007-2009 represent actual forfeiture experience. The 2010-2012 amounts represent estimated forfeitures.
(m)	Deferred compensation awards ratio is year end incentive awards excluding special incentive awards that are outside of the year-end compensation process such as sign-on and retention awards, divided by total awarded compensation.
(n)	Noncontrolling interests include revenue and expenses principally related to Edgewater, and is a non-GAAP measure. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information)
(o)	Represents a reversal of noncontrolling interests related to LAZ-MD Holdings’ ownership of Lazard Group common membership interests and an adjustment for Lazard Ltd entity-level taxes to affect a full exchange of interests and excluding the adjustments noted in (g) above.
NM	Not meaningful
TBD	To be determined

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