Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

The following table presents Federated's revenue disaggregated by asset class:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2019		2018		2019		2018
Equity	$	134,035	$	102,089	$	257,669	$	205,698
Money Market	123,136		98,923		240,443		203,406
Fixed-Income	44,782		44,497		88,459		89,545
Other1	19,526		10,484		41,958		21,196
Total Revenue	$	321,479	$	255,993	$	628,529	$	519,845

1 Includes Alternative / Private Markets (including but not limited to private equity, real estate and infrastructure), Multi-Asset and, beginning in the third quarter of 2018, stewardship services revenue.

The following table presents Federated's revenue disaggregated by performance obligation:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2019		2018		2019		2018
Asset Management1	$	220,669	$	168,127	$	431,868	$	342,393
Administrative Services	57,968		48,370		112,103		97,393
Distribution2	37,196		36,923		73,442		74,980
Other3	5,646		2,573		11,116		5,079
Total Revenue	$	321,479	$	255,993	$	628,529	$	519,845

1 The performance obligation may include administrative, distribution and other services recorded as a single asset management fee under Topic 606, as it is part of a unitary fee arrangement with a single performance obligation.

2 The performance obligation is satisfied at a point in time and may include contingent deferred sales charges and upfront commissions. A portion of this revenue relates to a performance obligation that has been satisfied in a prior period.

3 Includes shareholder service fees and, beginning in the third quarter of 2018, stewardship services revenue.

The following table presents Federated's revenue disaggregated by geographical market:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2019		2018		2019		2018
Domestic	$	265,893	$	248,872	$	518,283	$	504,964
Foreign1	55,586		7,121		110,246		14,881
Total Revenue	$	321,479	$	255,993	$	628,529	$	519,845

1 This represents revenue earned by non-U.S. domiciled subsidiaries.

The following table presents Federated's revenue disaggregated by product type:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2019		2018		2019		2018
Federated Funds	$	264,174	$	218,396	$	512,527	$	443,213
Separate Accounts	54,368		37,597		109,959		76,632
Other1	2,937		0		6,043		0
Total Revenue	$	321,479	$	255,993	$	628,529	$	519,845

1 Includes stewardship services revenue.

Federated is not required to disclose certain estimates of revenue expected to be recorded in future periods as a result of applying the following exemptions: (1) contract terms are short-term in nature (i.e., expected duration of one year or less due to termination provisions) and (2) the expected variable consideration would be allocated entirely to future service periods.

Federated expects to recognize revenue in the future related to the unsatisfied portion of the stewardship services performance obligations at June 30, 2019. Generally, contracts are billed in arrears on a quarterly basis and have a three year duration, after which the customer can terminate the agreement with a three to twelve month notice. Based on existing contracts and the exchange rates as of June 30, 2019, Federated may recognize future fixed revenue from stewardship services as presented in the following table:

(in thousands)
Remainder of 2019	$	5,031
2020	4,032
2021	1,989
2022 and Thereafter	749
Total Remaining Unsatisfied Performance Obligations	$	11,801