Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

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

	Three Months Ended
	March 31,
(in thousands)	2020		2019
Equity	$	137,290	$	123,634
Money Market	151,420		117,307
Fixed-Income	46,607		43,677
Other1	23,866		22,432
Total Revenue	$	359,183	$	307,050

1 Primarily includes Alternative / Private Markets (including but not limited to private equity, real estate and infrastructure), Multi-Asset and stewardship services revenue.

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

	Three Months Ended
	March 31,
(in thousands)	2020		2019
Asset Management1	$	240,660	$	211,199
Administrative Services	72,199		54,135
Distribution2	38,934		36,246
Other3	7,390		5,470
Total Revenue	$	359,183	$	307,050

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. A portion of this revenue relates to a performance obligation that has been satisfied in a prior period.

3 Primarily includes shareholder service fees and stewardship services revenue.

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

	Three Months Ended
	March 31,
(in thousands)	2020		2019
Domestic	$	296,362	$	252,390
Foreign1	62,821		54,660
Total Revenue	$	359,183	$	307,050

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

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

	Three Months Ended
	March 31,
(in thousands)	2020		2019
Federated Hermes Funds	$	296,885	$	248,352
Separate Accounts	57,421		55,592
Other1	4,877		3,106
Total Revenue	$	359,183	$	307,050

1 Primarily includes stewardship services revenue.

Federated Hermes 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 Hermes expects to recognize revenue in the future related to the unsatisfied portion of the stewardship services and real estate development performance obligations at March 31, 2020. 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 notice, generally from three to twelve months. Based on existing contracts and the exchange rates as of March 31, 2020, Federated Hermes may recognize future fixed revenue from these services as presented in the following table:

(in thousands)
Remainder of 2020	$	7,147
2021	3,695
2022	1,691
2023 and Thereafter	1,292
Total Remaining Unsatisfied Performance Obligations	$	13,825