Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2023

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:

(in thousands)	2023		2022		2021
Money market	$	754,074	$	575,261	$	239,318
Equity	483,650		526,957		677,917
Fixed-income	189,280		206,794		237,702
Other1	182,570		136,802		145,510
Total Revenue	$	1,609,574	$	1,445,814	$	1,300,447

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:

(in thousands)	2023		2022		2021
Asset Management1	$	1,115,783	$	1,011,631	$	915,984
Administrative Services	343,332		294,557		306,639
Distribution2	126,350		112,356		49,600
Other3	24,109		27,270		28,224
Total Revenue	$	1,609,574	$	1,445,814	$	1,300,447

1    The performance obligation can 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 product type:

(in thousands)	2023		2022		2021
Federated Hermes Funds	$	1,348,591	$	1,188,933	$	1,024,922
Separate Accounts	244,952		238,638		259,026
Other1	16,031		18,243		16,499
Total Revenue	$	1,609,574	$	1,445,814	$	1,300,447

1    Primarily includes stewardship services revenue.

For nearly all 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 December 31, 2023. 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 applicable foreign exchange rates as of December 31, 2023, Federated Hermes may recognize future fixed revenue from these services as presented in the following table:

(in thousands)
2024	$	10,891
2025	2,507
2026	1,421
2027 and Thereafter	46
Total Remaining Unsatisfied Performance Obligations	$	14,865