38 our consolidated net revenue was derived from the following segments : replace_table_token_5_th we also invest our own capital from time to time , generally alongside capital of qualified institutional and individual investors in alternative investments or private equity investments , and , since 2005 , we have engaged in a number of alternative investments and private equity activities , including investments through ( i ) the edgewater funds ( edgewater ) , our chicago-based private equity firm ( see note 12 of notes to consolidated financial statements ) , ( ii ) lazard australia corporate opportunities fund 2 ( cof2 ) , a lazard-managed australian fund targeting australasian mid-market investments , ( iii ) a mezzanine fund , which invests in mezzanine debt of a diversified selection of small-to mid-cap european companies and ( iv ) a fund targeting significant noncontrolling-stake investments in established private companies . we also make investments to seed our asset management strategies . we may explore and discuss opportunities to expand the scope of our alternative investment and private equity activities in europe , the u.s. and elsewhere . these opportunities could include internal growth of new funds and direct investments by us , partnerships or strategic relationships , investments with third parties or acquisitions of existing funds or management companies . in the third quarter of 2014 , we entered into arrangements with lfcm holdings llc , which is now known as lmdc holdings llc ( lmdc holdings ) and continues to be owned in large part by former and current managing directors of lazard ( including our executive officers ) , and certain of its subsidiaries . pursuant to the arrangements , among other things , ( i ) we acquired certain assets from lmdc holdings relating to its convertible securities business , ( ii ) the business alliance provided for in the business alliance agreement , dated as of may 10 , 2005 , between the company and lmdc holdings , terminated , and ( iii ) lmdc holdings relinquished certain license rights previously granted under the license agreement , dated as of may 10 , 2005 , between the company and lmdc holdings . in addition , lmdc holdings surrendered certain leasehold interests , including leasehold improvements , to the company , and was relieved of obligations to pay related sublease rent . see note 12 of notes to consolidated financial statements . we do not believe that any of these arrangements will have a material effect on our consolidated financial position or results of operations . the acquired assets facilitate the execution of exchange offers and other transactions related to financial advice provided by our capital advisory and convertible securities practice groups . in addition , we have taken steps that will enable us to act as an underwriter in public offerings and other distributions of securities from time to time in order to buttress our financial advisory business . business environment and outlook economic and global financial market conditions can materially affect our financial performance . as described above , our principal sources of revenue are derived from activities in our financial advisory and asset management business segments . as our financial advisory revenues are primarily dependent on the successful completion of merger , acquisition , restructuring , capital raising or similar transactions , and our asset management revenues are primarily driven by the levels of assets under management ( aum ) , weak economic and global financial market conditions can result in a challenging business environment for m & a and capital-raising activity as well as our asset management business , but may provide opportunities for our restructuring business . despite some market volatility in the fourth quarter of 2014 , equity market indices for developed markets at december 31 , 2014 increased as compared to such indices at december 31 , 2013 , with u.s. markets generally outpacing european markets . emerging markets indices at december 31 , 2014 generally decreased as compared to december 31 , 2013. in the global m & a markets during 2014 , the number and value of all completed m & a 39 transactions increased as compared to the same period in the prior year , as did the subset of such transactions involving values greater than $ 500 million . during the same time , the number and value of all announced m & a transactions , including the subset of such transactions involving values greater than $ 500 million , also increased , reflecting an active global m & a environment . during 2014 , global restructuring activity remained low , consistent with the last several years . entering 2015 , corporate cash balances remain high and the outlook for interest rates remains low . the u.s. macroeconomic environment has improved , but europe and many of the developing markets remain unsettled . volatility has returned to the capital markets , but the underpinnings of the u.s.-led global economic recovery appear to remain in place . although market volatility may continue , the longer-term trends appear to remain favorable for both of our businesses . we intend to leverage our existing infrastructure to capitalize on any global macroeconomic recovery , positive momentum in the m & a cycle , and strength in the global equity markets . we expect to generate revenue growth by remaining adequately staffed to capitalize on any macroeconomic recovery and deploying our intellectual capital to generate new revenue streams . our outlook with respect to our financial advisory and asset management businesses is described below . financial advisory  the fundamentals for continued growth of a strategic m & a cycle appear to remain in place . demand continues for expert , independent strategic advice that can be levered across geographies and our range of advisory capabilities . the global scale and breadth of our financial advisory business allows us to advise on large , complex cross-border transactions across a variety of industries . story_separator_special_tag our operating expenses also include non-compensation expense ,  which includes costs for occupancy and equipment , marketing and business development , technology and information services , professional services , fund administration and outsourced services and other expenses . in 2013 , non-compensation expense also included the implementation of the cost saving initiatives and expenses related to the refinancing of the 7.125 % senior notes due 2015 ( the 2015 notes ) and the issuance of $ 500 million of 4.25 % senior notes maturing in 2020 ( the 2020 notes ) ( see note 11 of notes to consolidated financial statements ) . in 2012 , non-compensation expense included the implementation of the cost saving initiatives , and the relevant portion of the expense relating to the staff reductions . for all periods , the amortization of intangible assets related to acquisitions pertains primarily to the acquisition of edgewater . we believe that adjusted non-compensation expense ,  a non-u.s. gaap measure , provides a more meaningful basis for assessing our operating results . for calculations with respect to adjusted non-compensation expense see the table under consolidated results of operations below . 44 provision for income taxes lazard ltd , through its subsidiaries , is subject to u.s. federal income taxes on all of its u.s. operating income , as well as on the portion of non-u.s. income attributable to its u.s. subsidiaries . outside the u.s. , lazard group operates principally through subsidiary corporations that are subject to local income taxes in foreign jurisdictions . lazard group is also subject to unincorporated business tax ( ubt ) attributable to its operations apportioned to new york city ( see note 17 of notes to consolidated financial statements for additional information ) . noncontrolling interests noncontrolling interests primarily consist of amounts related to edgewater 's management vehicles that the company is deemed to control but not own and , through may 2014 , the amount attributable to laz-md holdings llc 's ( laz-md holdings ) ownership interest in the net income of lazard group . see note 13 of notes to consolidated financial statements for information regarding the company 's noncontrolling interests . in may 2014 , the remaining lazard group common membership interests held by laz-md holdings were exchanged for shares of the company 's class a common stock . following the exchange , lazard group became a wholly-owned indirect subsidiary of lazard ltd , and the sole issued and outstanding share of the company 's class b common stock was automatically converted into one share of the company 's class a common stock pursuant to the provisions of the company 's bye-laws , resulting in only one outstanding class of common stock . see note 1 of notes to consolidated financial statements . consolidated results of operations lazard 's consolidated financial statements are presented in u.s. dollars . many of our non-u.s. subsidiaries have a functional currency ( i.e . , the currency in which operational activities are primarily conducted ) that is other than the u.s. dollar , generally the currency of the country in which the subsidiaries are domiciled . such subsidiaries ' assets and liabilities are translated into u.s. dollars using exchange rates as of the respective balance sheet date , while revenue and expenses are translated at average exchange rates during the respective periods based on the daily closing exchange rates . adjustments that result from translating amounts from a subsidiary 's functional currency are reported as a component of stockholders ' equity . foreign currency remeasurement gains and losses on transactions in non-functional currencies are included in the consolidated statements of operations . 45 the consolidated financial statements are prepared in conformity with u.s. gaap . selected financial data from the company 's reported consolidated results of operations is set forth below , followed by a more detailed discussion of both the consolidated and business segment results . replace_table_token_8_th the tables below describe the components of operating revenue , adjusted and awarded compensation and benefits expense , adjusted non-compensation expense , earnings from operations and related key ratios , which are non-u.s. gaap measures used by the company to manage its business . we believe such non-u.s. gaap measures provide the most meaningful basis for comparison between present , historical and future periods , as described above . replace_table_token_9_th ( a ) interest expense ( excluding interest expense incurred by lfb ) is added back in determining operating 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 . ( b ) revenue related to the consolidation of noncontrolling interests is excluded from operating revenue because the company has no economic interest in such amount . ( c ) 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 . 46 replace_table_token_10_th ( a ) represents expenses related to the first quarter 2012 staff reductions and the cost saving initiatives for ( i ) severance costs and benefit payments ; ( ii ) the acceleration of unrecognized amortization expense of deferred incentive compensation previously granted to individuals whose employment with lazard has been terminated ; and ( iii ) the settlement of certain contractual obligations . ( b ) expenses related to the consolidation of noncontrolling interests are excluded because lazard has no economic interest in such amounts . ( c ) incentive compensation expense pertaining to private equity transactions for which revenue may be recognized in the future is excluded in order to more closely align the timing of the recognition of such expense to the timing of the recognition of the related revenue . ( d ) represents changes in fair value of the compensation liability recorded in connection with lfi and other similar deferred incentive compensation awards for which a corresponding equal amount

liquidity and capital resources the company 's liquidity and capital resources are derived from operating activities , financing activities and equity offerings . operating activities net revenue , operating income and cash receipts fluctuate significantly between periods . in the case of financial advisory , fee receipts are generally dependent upon the successful completion of client transactions , the occurrence and timing of which is irregular and not subject to lazard 's control . liquidity is significantly impacted by cash payments for , or in respect of , incentive compensation , a significant portion of which are made during the first three months of the year . as a consequence , cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year . we also pay certain tax advances during the year on behalf of our managing directors , which serve to reduce their respective incentive compensation payments . we expect this seasonal pattern of cash flow to continue . during 2013 liquidity also was impacted by cash payments , including severance payments , associated with the cost saving initiatives ( see cost saving initiatives above and note 16 of notes to consolidated financial statements ) . lazard 's consolidated financial statements are presented in u.s. dollars . many of lazard 's non-u.s. subsidiaries have a functional currency ( i.e . , the currency in which operational activities are primarily conducted ) that is other than the u.s. dollar , generally the currency of the country in which such subsidiaries are domiciled . such subsidiaries ' assets and liabilities are translated into u.s. dollars at the respective balance sheet date exchange rates , while revenue and expenses are translated at average exchange rates during the year based on the daily closing exchange rates . adjustments that result from translating amounts from a subsidiary 's functional currency are reported as a component of stockholders ' equity . foreign currency remeasurement gains and losses on transactions in non-functional currencies are included on the consolidated statements of operations .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources the company 's liquidity and capital resources are derived from operating activities , financing activities and equity offerings . operating activities net revenue , operating income and cash receipts fluctuate significantly between periods . in the case of financial advisory , fee receipts are generally dependent upon the successful completion of client transactions , the occurrence and timing of which is irregular and not subject to lazard 's control . liquidity is significantly impacted by cash payments for , or in respect of , incentive compensation , a significant portion of which are made during the first three months of the year . as a consequence , cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year . we also pay certain tax advances during the year on behalf of our managing directors , which serve to reduce their respective incentive compensation payments . we expect this seasonal pattern of cash flow to continue . during 2013 liquidity also was impacted by cash payments , including severance payments , associated with the cost saving initiatives ( see cost saving initiatives above and note 16 of notes to consolidated financial statements ) . lazard 's consolidated financial statements are presented in u.s. dollars . many of lazard 's non-u.s. subsidiaries have a functional currency ( i.e . , the currency in which operational activities are primarily conducted ) that is other than the u.s. dollar , generally the currency of the country in which such subsidiaries are domiciled . such subsidiaries ' assets and liabilities are translated into u.s. dollars at the respective balance sheet date exchange rates , while revenue and expenses are translated at average exchange rates during the year based on the daily closing exchange rates . adjustments that result from translating amounts from a subsidiary 's functional currency are reported as a component of stockholders ' equity . foreign currency remeasurement gains and losses on transactions in non-functional currencies are included on the consolidated statements of operations .
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 Suspicious Activity Report : 38 our consolidated net revenue was derived from the following segments : replace_table_token_5_th we also invest our own capital from time to time , generally alongside capital of qualified institutional and individual investors in alternative investments or private equity investments , and , since 2005 , we have engaged in a number of alternative investments and private equity activities , including investments through ( i ) the edgewater funds ( edgewater ) , our chicago-based private equity firm ( see note 12 of notes to consolidated financial statements ) , ( ii ) lazard australia corporate opportunities fund 2 ( cof2 ) , a lazard-managed australian fund targeting australasian mid-market investments , ( iii ) a mezzanine fund , which invests in mezzanine debt of a diversified selection of small-to mid-cap european companies and ( iv ) a fund targeting significant noncontrolling-stake investments in established private companies . we also make investments to seed our asset management strategies . we may explore and discuss opportunities to expand the scope of our alternative investment and private equity activities in europe , the u.s. and elsewhere . these opportunities could include internal growth of new funds and direct investments by us , partnerships or strategic relationships , investments with third parties or acquisitions of existing funds or management companies . in the third quarter of 2014 , we entered into arrangements with lfcm holdings llc , which is now known as lmdc holdings llc ( lmdc holdings ) and continues to be owned in large part by former and current managing directors of lazard ( including our executive officers ) , and certain of its subsidiaries . pursuant to the arrangements , among other things , ( i ) we acquired certain assets from lmdc holdings relating to its convertible securities business , ( ii ) the business alliance provided for in the business alliance agreement , dated as of may 10 , 2005 , between the company and lmdc holdings , terminated , and ( iii ) lmdc holdings relinquished certain license rights previously granted under the license agreement , dated as of may 10 , 2005 , between the company and lmdc holdings . in addition , lmdc holdings surrendered certain leasehold interests , including leasehold improvements , to the company , and was relieved of obligations to pay related sublease rent . see note 12 of notes to consolidated financial statements . we do not believe that any of these arrangements will have a material effect on our consolidated financial position or results of operations . the acquired assets facilitate the execution of exchange offers and other transactions related to financial advice provided by our capital advisory and convertible securities practice groups . in addition , we have taken steps that will enable us to act as an underwriter in public offerings and other distributions of securities from time to time in order to buttress our financial advisory business . business environment and outlook economic and global financial market conditions can materially affect our financial performance . as described above , our principal sources of revenue are derived from activities in our financial advisory and asset management business segments . as our financial advisory revenues are primarily dependent on the successful completion of merger , acquisition , restructuring , capital raising or similar transactions , and our asset management revenues are primarily driven by the levels of assets under management ( aum ) , weak economic and global financial market conditions can result in a challenging business environment for m & a and capital-raising activity as well as our asset management business , but may provide opportunities for our restructuring business . despite some market volatility in the fourth quarter of 2014 , equity market indices for developed markets at december 31 , 2014 increased as compared to such indices at december 31 , 2013 , with u.s. markets generally outpacing european markets . emerging markets indices at december 31 , 2014 generally decreased as compared to december 31 , 2013. in the global m & a markets during 2014 , the number and value of all completed m & a 39 transactions increased as compared to the same period in the prior year , as did the subset of such transactions involving values greater than $ 500 million . during the same time , the number and value of all announced m & a transactions , including the subset of such transactions involving values greater than $ 500 million , also increased , reflecting an active global m & a environment . during 2014 , global restructuring activity remained low , consistent with the last several years . entering 2015 , corporate cash balances remain high and the outlook for interest rates remains low . the u.s. macroeconomic environment has improved , but europe and many of the developing markets remain unsettled . volatility has returned to the capital markets , but the underpinnings of the u.s.-led global economic recovery appear to remain in place . although market volatility may continue , the longer-term trends appear to remain favorable for both of our businesses . we intend to leverage our existing infrastructure to capitalize on any global macroeconomic recovery , positive momentum in the m & a cycle , and strength in the global equity markets . we expect to generate revenue growth by remaining adequately staffed to capitalize on any macroeconomic recovery and deploying our intellectual capital to generate new revenue streams . our outlook with respect to our financial advisory and asset management businesses is described below . financial advisory  the fundamentals for continued growth of a strategic m & a cycle appear to remain in place . demand continues for expert , independent strategic advice that can be levered across geographies and our range of advisory capabilities . the global scale and breadth of our financial advisory business allows us to advise on large , complex cross-border transactions across a variety of industries . story_separator_special_tag our operating expenses also include non-compensation expense ,  which includes costs for occupancy and equipment , marketing and business development , technology and information services , professional services , fund administration and outsourced services and other expenses . in 2013 , non-compensation expense also included the implementation of the cost saving initiatives and expenses related to the refinancing of the 7.125 % senior notes due 2015 ( the 2015 notes ) and the issuance of $ 500 million of 4.25 % senior notes maturing in 2020 ( the 2020 notes ) ( see note 11 of notes to consolidated financial statements ) . in 2012 , non-compensation expense included the implementation of the cost saving initiatives , and the relevant portion of the expense relating to the staff reductions . for all periods , the amortization of intangible assets related to acquisitions pertains primarily to the acquisition of edgewater . we believe that adjusted non-compensation expense ,  a non-u.s. gaap measure , provides a more meaningful basis for assessing our operating results . for calculations with respect to adjusted non-compensation expense see the table under consolidated results of operations below . 44 provision for income taxes lazard ltd , through its subsidiaries , is subject to u.s. federal income taxes on all of its u.s. operating income , as well as on the portion of non-u.s. income attributable to its u.s. subsidiaries . outside the u.s. , lazard group operates principally through subsidiary corporations that are subject to local income taxes in foreign jurisdictions . lazard group is also subject to unincorporated business tax ( ubt ) attributable to its operations apportioned to new york city ( see note 17 of notes to consolidated financial statements for additional information ) . noncontrolling interests noncontrolling interests primarily consist of amounts related to edgewater 's management vehicles that the company is deemed to control but not own and , through may 2014 , the amount attributable to laz-md holdings llc 's ( laz-md holdings ) ownership interest in the net income of lazard group . see note 13 of notes to consolidated financial statements for information regarding the company 's noncontrolling interests . in may 2014 , the remaining lazard group common membership interests held by laz-md holdings were exchanged for shares of the company 's class a common stock . following the exchange , lazard group became a wholly-owned indirect subsidiary of lazard ltd , and the sole issued and outstanding share of the company 's class b common stock was automatically converted into one share of the company 's class a common stock pursuant to the provisions of the company 's bye-laws , resulting in only one outstanding class of common stock . see note 1 of notes to consolidated financial statements . consolidated results of operations lazard 's consolidated financial statements are presented in u.s. dollars . many of our non-u.s. subsidiaries have a functional currency ( i.e . , the currency in which operational activities are primarily conducted ) that is other than the u.s. dollar , generally the currency of the country in which the subsidiaries are domiciled . such subsidiaries ' assets and liabilities are translated into u.s. dollars using exchange rates as of the respective balance sheet date , while revenue and expenses are translated at average exchange rates during the respective periods based on the daily closing exchange rates . adjustments that result from translating amounts from a subsidiary 's functional currency are reported as a component of stockholders ' equity . foreign currency remeasurement gains and losses on transactions in non-functional currencies are included in the consolidated statements of operations . 45 the consolidated financial statements are prepared in conformity with u.s. gaap . selected financial data from the company 's reported consolidated results of operations is set forth below , followed by a more detailed discussion of both the consolidated and business segment results . replace_table_token_8_th the tables below describe the components of operating revenue , adjusted and awarded compensation and benefits expense , adjusted non-compensation expense , earnings from operations and related key ratios , which are non-u.s. gaap measures used by the company to manage its business . we believe such non-u.s. gaap measures provide the most meaningful basis for comparison between present , historical and future periods , as described above . replace_table_token_9_th ( a ) interest expense ( excluding interest expense incurred by lfb ) is added back in determining operating 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 . ( b ) revenue related to the consolidation of noncontrolling interests is excluded from operating revenue because the company has no economic interest in such amount . ( c ) 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 . 46 replace_table_token_10_th ( a ) represents expenses related to the first quarter 2012 staff reductions and the cost saving initiatives for ( i ) severance costs and benefit payments ; ( ii ) the acceleration of unrecognized amortization expense of deferred incentive compensation previously granted to individuals whose employment with lazard has been terminated ; and ( iii ) the settlement of certain contractual obligations . ( b ) expenses related to the consolidation of noncontrolling interests are excluded because lazard has no economic interest in such amounts . ( c ) incentive compensation expense pertaining to private equity transactions for which revenue may be recognized in the future is excluded in order to more closely align the timing of the recognition of such expense to the timing of the recognition of the related revenue . ( d ) represents changes in fair value of the compensation liability recorded in connection with lfi and other similar deferred incentive compensation awards for which a corresponding equal amount

