Redeemable Noncontrolling Interest in Subsidiaries

3 Months Ended

Mar. 31, 2020

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest in Subsidiaries

Equity

In October 2016, the board of directors authorized a share repurchase program with no stated expiration date that allows the buy back of up to 4 million shares of Class B common stock. This program was fulfilled in March 2020. In March 2020, the board of directors authorized a share repurchase program with no stated expiration date that allows the buy back of up to 500 thousand shares of Class B common stock. No other programs existed as of March 31, 2020. The programs authorize executive management to determine the timing and the amount of shares for each purchase. The repurchased stock is to be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities, unless Federated Hermes' board of directors subsequently determines to retire the repurchased stock and restore the shares to authorized but unissued status (rather than holding the shares in treasury). During the first three months of 2020, Federated Hermes repurchased approximately 714 thousand shares of its Class B common stock for $16.0 million ($1.0 million of which was accrued in Other Current Liabilities as of March 31, 2020), most of which were repurchased in the open market. At March 31, 2020, approximately 347 thousand shares remain available to be purchased under Federated Hermes' remaining buyback program. See Note (19) for information regarding a new share repurchase program approved by the board of directors on April 30, 2020.

The following table presents the activity for the Class B common stock and Treasury stock for the three months ended March 31, 2020 and 2019. Class A shares have been excluded as there was no activity during the three months ended March 31, 2020 or 2019.

	Three Months Ended
	March 31,
	2020		2019
Class B Shares
Beginning Balance	101,130,379		100,803,382
Stock Award Activity	649,581		498,324
Purchase of Treasury Stock	(714,251	)	(60,833	)
Ending Balance	101,065,709		101,240,873
Treasury Shares
Beginning Balance	8,375,077		8,702,074
Stock Award Activity	(649,581	)	(498,324	)
Purchase of Treasury Stock	714,251		60,833
Ending Balance	8,439,747		8,264,583

Redeemable Noncontrolling Interest in Subsidiaries

The following table presents the changes in Redeemable Noncontrolling Interest in Subsidiaries:

(in thousands)	Consolidated Investment Companies			Hermes			Total
Balance at December 31, 2019	$	19,872		$	192,214		$	212,086
Net Income (Loss)	(2,802		)	1,889			(913		)
Other Comprehensive Income (Loss), net of tax	0			(11,454		)	(11,454		)
Subscriptions—Redeemable Noncontrolling Interest Holders	5,577			0			5,577
Consolidation/(Deconsolidation)	(4,019		)	0			(4,019		)
Stock Award Activity	0			2,153			2,153
Distributions to Noncontrolling Interest in Subsidiaries	(6,039		)	0			(6,039		)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests	0			1,870			1,870
Balance at March 31, 2020	$	12,589		$	186,672		$	199,261
Balance at December 31, 2018	$	11,626		$	170,887		$	182,513
Net Income (Loss)	678			(613		)	65
Other Comprehensive Income (Loss), net of tax	0			3,714			3,714
Subscriptions—Redeemable Noncontrolling Interest Holders	42			0			42
Stock Award Activity	0			2,126			2,126
Distributions to Noncontrolling Interest in Subsidiaries	(2,260		)	0			(2,260		)
Balance at March 31, 2019	$	10,086		$	176,114		$	186,200

During 2020, the Hermes Redeemable Noncontrolling Interest in Subsidiaries carrying value was adjusted by $1.9 million to the current redemption value, assuming the Hermes noncontrolling interest was redeemable at the balance sheet date. The noncontrolling interest was adjusted through a corresponding adjustment to retained earnings.