Redeemable Noncontrolling Interest in Subsidiaries

6 Months Ended

Jun. 30, 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. This program was fulfilled in May 2020. In April 2020, the board of directors authorized a share repurchase program with no stated expiration date that allows the buy back of up to 3.5 million shares of Class B common stock. No other programs existed as of June 30, 2020. The program authorizes 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 six months of 2020, Federated Hermes repurchased approximately 1.6 million shares of its Class B common stock for $34.1 million ($1.2 million of which was accrued in Other Current Liabilities as of June 30, 2020), most of which were repurchased in the open market. At June 30, 2020, approximately 3.0 million shares remain available to be purchased under Federated Hermes' remaining buyback program.

The following table presents the activity for the Class B common stock and Treasury stock for the three and six months ended June 30, 2020 and 2019. Class A shares have been excluded as there was no activity during these same periods.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Class B Shares
Beginning Balance	101,065,709		101,240,873		101,130,379		100,803,382
Stock Award Activity	56,750		22,750		706,331		521,074
Purchase of Treasury Stock	(843,416	)	(52,600	)	(1,557,667	)	(113,433	)
Ending Balance	100,279,043		101,211,023		100,279,043		101,211,023
Treasury Shares
Beginning Balance	8,439,747		8,264,583		8,375,077		8,702,074
Stock Award Activity	(56,750	)	(22,750	)	(706,331	)	(521,074	)
Purchase of Treasury Stock	843,416		52,600		1,557,667		113,433
Ending Balance	9,226,413		8,294,433		9,226,413		8,294,433

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
Net Income (Loss)	2,560			1,045			3,605
Other Comprehensive Income (Loss), net of tax	0			(435		)	(435		)
Subscriptions—Redeemable Noncontrolling Interest Holders	6,225			0			6,225
Stock Award Activity	0			2,087			2,087
Distributions to Noncontrolling Interest in Subsidiaries	(4,058		)	0			(4,058		)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests	0			(2,013		)	(2,013		)
Balance at June 30, 2020	$	17,316		$	187,356		$	204,672

(in thousands)	Consolidated Investment Companies			Hermes			Total
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
Net Income (Loss)	340			776			1,116
Other Comprehensive Income (Loss), net of tax	0			(4,600		)	(4,600		)
Subscriptions—Redeemable Noncontrolling Interest Holders	1,822			0			1,822
Stock Award Activity	0			1,773			1,773
Distributions to Noncontrolling Interest in Subsidiaries	(541		)	0			(541		)
Business Acquisition	0			(386		)	(386		)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests	0			16,604			16,604
Balance at June 30, 2019	$	11,707		$	190,281		$	201,988