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Redeemable Noncontrolling Interests in Subsidiaries
 12 Months Ended
Dec. 31, 2023
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interests in Subsidiaries Common Stock
The Class A Shareholder has the entire voting rights of Federated Hermes; however, without the consent of the majority of the holders of Class B common stock, the Class A Shareholder cannot alter Federated Hermes’ structure, dispose of all or substantially all of its assets, amend its Articles of Incorporation or Bylaws to adversely affect the Class B common stockholders, or liquidate or dissolve Federated Hermes. With respect to dividends, distributions and liquidation rights, the Class A common stock and Class B common stock have equal preferences and rights.
(a) Dividends
Cash dividends of $98.1 million, $97.9 million and $105.8 million were paid in 2023, 2022 and 2021, respectively, to holders of Federated Hermes common stock. All dividends were considered ordinary dividends for tax purposes.
(b) Treasury Stock
In December 2021, the board of directors authorized a share repurchase program with no stated expiration date that allowed the repurchase of up to 7.5 million shares of Class B common stock. This program was fulfilled in September 2022. In June 2022, the board of directors authorized a share repurchase program with no stated expiration date that allowed the repurchase of up to 5.0 million shares of Class B common stock. This program was fulfilled in December 2023. In October 2023, the board of directors authorized a share repurchase program with no stated expiration date that allows the repurchase of up to 5.0 million shares of Class B common stock. No other program existed as of December 31, 2023. 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 year ended December 31, 2023, Federated Hermes repurchased 5.3 million shares of its Class B common stock for $178.0 million ($2.7 million of which was accrued in Other Current Liabilities as of December 31, 2023), nearly all of which were repurchased in the open market. At December 31, 2023, 4.5 million shares remained available to be repurchased under this share repurchase program.
In July 2022, Federated Hermes’ board of directors authorized the retirement of 10.0 million treasury shares which restored these shares to authorized but unissued status. Federated Hermes recorded a $313.8 million reduction to Treasury Stock, at cost using the specific-identification method and a $42.7 million reduction to Class B common stock, at cost using the average cost method. The difference was recorded as a reduction to Retained Earnings and Additional Paid-In Capital from Treasury Stock Transactions. There was no impact to total equity as a result of this non-cash transaction.
Redeemable Noncontrolling Interests in Subsidiaries
The following table presents the changes in Redeemable Noncontrolling Interests in Subsidiaries:
(in thousands)Consolidated Investment Companies
FHL and other entities
Total
Balance at January 1, 2021$24,246 $212,741 $236,987 
Net Income (Loss)304 1,711 2,015 
Other Comprehensive Income (Loss), net of tax0 (7,443)(7,443)
Subscriptions—Redeemable Noncontrolling Interest Holders997,556 1,409 998,965 
Consolidation/(Deconsolidation)(994,430)9,182 (985,248)
Stock Award Activity0 9,410 9,410 
Distributions to Noncontrolling Interests in Subsidiaries(3,017)(1,909)(4,926)
Acquisition of Additional Equity of FHL0 (167,302)(167,302)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL0 (19,256)(19,256)
Balance at December 31, 2021$24,659 $38,543 $63,202 
Net Income (Loss)(6,320)1,388 (4,932)
Other Comprehensive Income (Loss), net of tax0 (2,329)(2,329)
Subscriptions—Redeemable Noncontrolling Interest Holders53,040 2,131 55,171 
Consolidation/(Deconsolidation)(435)0 (435)
Stock Award Activity0 707 707 
Distributions to Noncontrolling Interests in Subsidiaries(20,627)(5,352)(25,979)
Acquisition of Additional Equity of FHL0 (37,805)(37,805)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL0 14,221 14,221 
Balance at December 31, 2022$50,317 $11,504 $61,821 
Net Income (Loss)5,311 490 5,801 
Other Comprehensive Income (Loss), net of tax(8)593 585 
Subscriptions—Redeemable Noncontrolling Interest Holders72,463 360 72,823 
Consolidation/(Deconsolidation)(75,225)0 (75,225)
Distributions to Noncontrolling Interests in Subsidiaries(38,517)(1,443)(39,960)
Balance at December 31, 2023$14,341 $11,504 $25,845 
The activity in 2021 includes $892.1 million of contributions from noncontrolling interests in subsidiaries as a result of a purchase-in-kind investment into a previously consolidated VRE. This was a non-cash transaction and was therefore excluded from the Consolidated Statements of Cash Flows.
During 2022 and 2021, the FHL Redeemable Noncontrolling Interests in Subsidiaries carrying value was adjusted by $14.2 million and $19.3 million, respectively, to the current redemption value, assuming the FHL noncontrolling interests was redeemable at the balance sheet date. The noncontrolling interests were adjusted through a corresponding adjustment to retained earnings. On March 14, 2022, Federated Hermes acquired the remaining shares of FHL.