Company: LAZ
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001628280-25-007441
Chunk: 271

Company: Lazard, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 271
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(a)Revenue or loss related to the consolidation of noncontrolling interests and similar arrangements are excluded from adjusted net revenue because the Company has no economic interest in such amounts.

(b)Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation and benefits expense. 

(c)Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and provision for credit losses relating to fees and other receivables that are deemed uncollectible for which an equal amount is excluded for purposes of determining adjusted non-compensation expense.

(d)Interest expense (excluding interest expense incurred by LFB) is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.

(e)Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive losses in the years ended December 31, 2024 and 2023 and transactions related to foreign currency exchange in the year ended December 31, 2023.

(f)Represents gain on the sale of an owned office building.

(g)Adjusted net revenue is a non-GAAP measure.

46

Year Ended December 31,202420232022($ in thousands)Lazard, Inc. Adjusted Compensation and Benefits Expense:Total compensation and benefits expense$2,003,212 $1,946,010 $1,656,451 Adjustments:Compensation and benefits expense related to noncontrolling interests and similar arrangements (a)(19,961)(9,233)(10,855)(Charges) credits pertaining to LFI and other similar arrangements (b)(16,176)(41,463)44,261 Expenses associated with cost-saving initiatives(46,610)(182,103)– Expenses associated with sale of property (c)(17,002)– – Expenses associated with senior management transition (d)– (10,674)(33,019)Adjusted compensation and benefits expense (e)$1,903,463 $1,702,537 $1,656,838 Adjusted compensation and benefits expense, as a % of adjusted net  revenue (e)65.9 %69.8 %59.8 %________________________

(a)Expenses