1. ORGANIZATION AND BASIS OF PRESENTATION Organization The accompanying condensed consolidated financial statements are those of Lazard Group LLC and its subsidiaries (collectively referred to as Lazard Group, we or the Company). Lazard Group is a Delaware limited liability company, which is governed by an Amended and Restated Operating Agreement dated as of February 4, 2019 (the Operating Agreement). Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as Lazard Ltd), including its indirect investment in Lazard Group, is one of the worlds preeminent financial advisory and asset management firms and has long specialized in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, governments, institutions, partnerships and individuals. Lazard Ltd indirectly held 100% of all outstanding Lazard Group common membership interests as of June 30, 2019 and December 31, 2018. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group. Lazard Groups principal operating activities are included in two business segments:  Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding mergers and acquisitions (M&amp;A), capital advisory, restructurings, shareholder advisory, sovereign advisory, capital raising and other strategic advisory, and  Asset Management, which offers a broad range of global investment solutions and investment management services in equity and fixed income strategies, asset allocation strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients. In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness, certain contingent obligations, and assets and liabilities associated with Lazard Groups Paris-based subsidiary Lazard Freres Banque SA (LFB). Basis of Presentation The accompanying condensed consolidated financial statements of Lazard Group have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (U.S. GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Groups Annual Report on Form 10-K for the year ended December 31, 2018. The accompanying December 31, 2018 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. For example, discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an assumed annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on managements knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates. The consolidated results of operations for the three month and six month periods ended June 30, 2019 are not indicative of the results to be expected for any future interim or annual period. The condensed consolidated financial statements include Lazard Group and Lazard Groups principal operating subsidiaries: Lazard Freres &amp; Co. LLC (LFNY), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as LAM); the French limited liability companies Compagnie Financiere Lazard Freres SAS (CFLF) along with its subsidiaries, LFB and Lazard Freres Gestion SAS (LFG), and Maison Lazard SAS and its subsidiaries; and Lazard &amp; Co., Limited (LCL), through Lazard &amp; Co., Holdings Limited (LCH), an English private limited company, together with their jointly owned affiliates and subsidiaries. The Companys policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates:  Voting interest entities (VOEs) where the Company holds a majority of the voting interest in such VOEs, and  Variable interest entities (VIEs) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE (see Note 20). When the Company does not have a controlling interest in an entity, but exerts significant influence over such entitys operating and financial decisions, the Company either (i) applies the equity method of accounting in which it records a proportionate share of the entitys net earnings, or (ii) elects the option to measure at fair value. Intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation.