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Redeemable Noncontrolling Interest in Subsidiaries | 9 Months Ended
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Sep. 30, 2021
Noncontrolling Interest [Abstract] |
Redeemable Noncontrolling Interest in Subsidiaries | Equity In April 2021, the board of directors authorized a share repurchase program with no stated expiration date that allows the repurchase of up to 4.0 million shares of Class B common stock. No other program existed as of September 30, 2021. 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 2021, Federated Hermes repurchased approximately 3.1 million shares of its Class B common stock for $94.5 million ($3.2 million of which was accrued in Other Current Liabilities as of September 30, 2021), nearly all of which were repurchased in the open market. At September 30, 2021, approximately 2.6 million shares remained available to be repurchased under this share repurchase 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, 2021 and 2020. 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,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Class B Shares |  |  |  |  |  |  |  |
Beginning Balance |  | 97,558,017 |  |  | 100,279,043 |  |  | 99,331,443 |  |  | 101,130,379 |
Stock Award Activity |  | 10,000 |  |  | 22,500 |  |  | 734,674 |  |  | 728,831 |
Purchase of Treasury Stock |  | (593,619) |  |  | (866,900) |  |  | (3,091,719) |  |  | (2,424,567) |
Ending Balance |  | 96,974,398 |  |  | 99,434,643 |  |  | 96,974,398 |  |  | 99,434,643 |
Treasury Shares |  |  |  |  |  |  |  |
Beginning Balance |  | 11,947,439 |  |  | 9,226,413 |  |  | 10,174,013 |  |  | 8,375,077 |
Stock Award Activity |  | (10,000) |  |  | (22,500) |  |  | (734,674) |  |  | (728,831) |
Purchase of Treasury Stock |  | 593,619 |  |  | 866,900 |  |  | 3,091,719 |  |  | 2,424,567 |
Ending Balance |  | 12,531,058 |  |  | 10,070,813 |  |  | 12,531,058 |  |  | 10,070,813 |
Redeemable Noncontrolling Interest in Subsidiaries The following table presents the changes in Redeemable Noncontrolling Interest in Subsidiaries:
(in thousands) |  | Consolidated Investment Companies |  | HFML and other entities |  | Total
Balance at December 31, 2020 |  | $ | 24,246 |  |  | $ | 212,741 |  |  | $ | 236,987 |
Net Income (Loss) |  | (1,091) |  |  | 953 |  |  | (138) |
Other Comprehensive Income (Loss), net of tax |  | 0 |  |  | 1,430 |  |  | 1,430 |
Subscriptions—Redeemable Noncontrolling Interest Holders |  | 25,762 |  |  | 0 |  |  | 25,762 |
Consolidation/(Deconsolidation) |  | (25,419) |  |  | 9,182 |  |  | (16,237) |
Stock Award Activity |  | 0 |  |  | 2,481 |  |  | 2,481 |
Distributions to Noncontrolling Interest in Subsidiaries |  | (1,320) |  |  | (578) |  |  | (1,898) |
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests |  | 0 |  |  | (2,670) |  |  | (2,670) |
Balance at March 31, 2021 |  | $ | 22,178 |  |  | $ | 223,539 |  |  | $ | 245,717 |
Net Income (Loss) |  | 682 |  |  | (3,087) |  |  | (2,405) |
Other Comprehensive Income (Loss), net of tax |  | 0 |  |  | 868 |  |  | 868 |
Subscriptions—Redeemable Noncontrolling Interest Holders |  | 899,250 |  |  | 712 |  |  | 899,962 |
Consolidation/(Deconsolidation) |  | (894,175) |  |  | 0 |  |  | (894,175) |
Stock Award Activity |  | 0 |  |  | 2,518 |  |  | 2,518 |
Distributions to Noncontrolling Interest in Subsidiaries |  | (622) |  |  | (394) |  |  | (1,016) |
Balance at June 30, 2021 |  | $ | 27,313 |  |  | $ | 224,156 |  |  | $ | 251,469 |
Net Income (Loss) |  | (108) |  |  | 2,232 |  |  | 2,124 |
Other Comprehensive Income (Loss), net of tax |  | 0 |  |  | (9,953) |  |  | (9,953) |
Subscriptions—Redeemable Noncontrolling Interest Holders |  | 66,506 |  |  | 397 |  |  | 66,903 |
Consolidation/(Deconsolidation) |  | (74,836) |  |  | 0 |  |  | (74,836) |
Stock Award Activity |  | 0 |  |  | 2,557 |  |  | 2,557 |
Distributions to Noncontrolling Interest in Subsidiaries |  | (575) |  |  | (603) |  |  | (1,178) |
Acquisition of Additional Equity of HFML |  | 0 |  |  | (165,112) |  |  | (165,112) |
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests |  | 0 |  |  | (16,502) |  |  | (16,502) |
Balance at September 30, 2021 |  | $ | 18,300 |  |  | $ | 37,172 |  |  | $ | 55,472 |
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 noncash transaction and was therefore excluded from the Consolidated Statements of Cash Flows.
(in thousands) |  | Consolidated Investment Companies |  | HFML and other entities |  | 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 |

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