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Revenue from Contracts with Customers | 6 Months Ended
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Jun. 30, 2020
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:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(in thousands) | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Money Market | 157,430 |  |  | 123,136 |  |  | 308,850 |  |  | 240,443 |
Equity | $ | 123,328 |  |  | $ | 134,035 |  |  | $ | 260,618 |  |  | $ | 257,669 |
Fixed-Income | 43,691 |  |  | 44,782 |  |  | 90,297 |  |  | 88,459 |
Other1 | 36,263 |  |  | 19,526 |  |  | 60,130 |  |  | 41,958 |
Total Revenue | $ | 360,712 |  |  | $ | 321,479 |  |  | $ | 719,895 |  |  | $ | 628,529 |
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:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(in thousands) | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Asset Management1 | $ | 245,126 |  |  | $ | 220,669 |  |  | $ | 485,787 |  |  | $ | 431,868 |
Administrative Services | 83,733 |  |  | 57,968 |  |  | 155,932 |  |  | 112,103 |
Distribution2 | 25,579 |  |  | 37,196 |  |  | 64,513 |  |  | 73,442 |
Other3 | 6,274 |  |  | 5,646 |  |  | 13,663 |  |  | 11,116 |
Total Revenue | $ | 360,712 |  |  | $ | 321,479 |  |  | $ | 719,895 |  |  | $ | 628,529 |
1 | The performance obligation may 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 geographical market:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(in thousands) | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Domestic | $ | 292,784 |  |  | $ | 265,893 |  |  | $ | 589,147 |  |  | $ | 518,283 |
Foreign1 | 67,928 |  |  | 55,586 |  |  | 130,748 |  |  | 110,246 |
Total Revenue | $ | 360,712 |  |  | $ | 321,479 |  |  | $ | 719,895 |  |  | $ | 628,529 |
1 | This represents revenue earned by non-U.S. domiciled subsidiaries.
The following table presents Federated Hermes' revenue disaggregated by product type:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(in thousands) | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Federated Hermes Funds | $ | 299,125 |  |  | $ | 264,174 |  |  | $ | 596,009 |  |  | $ | 512,527 |
Separate Accounts | 58,100 |  |  | 54,368 |  |  | 115,522 |  |  | 109,959 |
Other1 | 3,487 |  |  | 2,937 |  |  | 8,364 |  |  | 6,043 |
Total Revenue | $ | 360,712 |  |  | $ | 321,479 |  |  | $ | 719,895 |  |  | $ | 628,529 |
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 June 30, 2020. 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 exchange rates as of June 30, 2020, Federated Hermes may recognize future fixed revenue from these services as presented in the following table:
(in thousands) |  |
Remainder of 2020 |  | $ | 5,657 |
2021 |  | 4,644 |
2022 |  | 2,120 |
2023 and Thereafter |  | 1,850 |
Total Remaining Unsatisfied Performance Obligations |  | $ | 14,271 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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