Equity

9 Months Ended

Sep. 30, 2020

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 September 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 nine months of 2020, Federated Hermes repurchased approximately 2.4 million shares of its Class B common stock for $54.1 million ($1.0 million of which was accrued in Other Current Liabilities as of September 30, 2020), most of which were repurchased in the open market. At September 30, 2020, approximately 2.2 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 nine months ended September 30, 2020 and 2019. Class A shares have been excluded as there was no activity during these same periods.


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2020	2019	2020	2019
Class B Shares
Beginning Balance	100,279,043	101,211,023	101,130,379	100,803,382
Stock Award Activity	22,500	7,500	728,831	528,574
Purchase of Treasury Stock	(866,900)	(79,592)	(2,424,567)	(193,025)
Ending Balance	99,434,643	101,138,931	99,434,643	101,138,931

Treasury Shares
Beginning Balance	9,226,413	8,294,433	8,375,077	8,702,074
Stock Award Activity	(22,500)	(7,500)	(728,831)	(528,574)
Purchase of Treasury Stock	866,900	79,592	2,424,567	193,025
Ending Balance	10,070,813	8,366,525	10,070,813	8,366,525

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
Net Income (Loss)	1,473		(611)		862
Other Comprehensive Income (Loss), net of tax	0		7,316		7,316
Subscriptions—Redeemable Noncontrolling Interest Holders	3,212		0		3,212

Stock Award Activity	0		2,164		2,164
Distributions to Noncontrolling Interest in Subsidiaries	(358)		0		(358)

Change in Estimated Redemption Value of Redeemable Noncontrolling Interests	0		(3,567)		(3,567)
Balance at September 30, 2020	$	21,643	$	192,658	$	214,301


(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
Net Income (Loss)	(209)		832		623
Other Comprehensive Income (Loss), net of tax	0		(5,544)		(5,544)
Subscriptions—Redeemable Noncontrolling Interest Holders	687		0		687

Stock Award Activity	0		2,125		2,125
Distributions to Noncontrolling Interest in Subsidiaries	(387)		0		(387)


Balance at September 30, 2019	$	11,798	$	187,694	$	199,492