XML 32 R23.htm IDEA: XBRL DOCUMENT v3.22.2.2
Redeemable Noncontrolling Interests in Subsidiaries
 9 Months Ended
Sep. 30, 2022
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interests in Subsidiaries Equity 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 allows the repurchase of up to 5.0 million shares of Class B common stock. No other program existed as of September 30, 2022. 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 nine months ended September 30, 2022, Federated Hermes repurchased approximately 6.1 million shares of its Class B common stock for $199.0 million, nearly all of which were repurchased in the open market. At September 30, 2022, approximately 5.0 million shares remain available to be repurchased under this share repurchase program.
In July 2022, Federated Hermes’ board of directors authorized the retirement of 10 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.
The following table presents the activity for the Class B common stock and Treasury stock for the three and nine months ended September 30, 2022 and 2021. Class A shares have been excluded as there was no activity during these same periods.
 Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Class B Shares
Beginning Balance89,197,952 97,558,017 93,410,968 99,331,443 
Stock Award Activity 0 10,000 1,704,592 734,674 
Purchase of Treasury Stock(211,885)(593,619)(6,129,493)(3,091,719)
Ending Balance88,986,067 96,974,398 88,986,067 96,974,398 
Treasury Shares
Beginning Balance20,307,504 11,947,439 16,094,488 10,174,013 
Stock Award Activity 0 (10,000)(1,704,592)(734,674)
Purchase of Treasury Stock211,885 593,619 6,129,493 3,091,719 
Retirement of Treasury Stock(10,000,000)0 (10,000,000)0 
Ending Balance10,519,389 12,531,058 10,519,389 12,531,058 
Redeemable Noncontrolling Interests in Subsidiaries
The following table presents the changes in Redeemable Noncontrolling Interests in Subsidiaries:
(in thousands)Consolidated Investment CompaniesFHL and other entitiesTotal
Balance at December 31, 2021$24,659 $38,543 $63,202 
Net Income (Loss)(1,744)478 (1,266)
Other Comprehensive Income (Loss), net of tax0 (457)(457)
Subscriptions—Redeemable Noncontrolling Interest Holders29,577 763 30,340 
Consolidation/(Deconsolidation)(16,034)0 (16,034)
Stock Award Activity0 707 707 
Distributions to Noncontrolling Interests in Subsidiaries(771)(3,568)(4,339)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL0 14,221 14,221 
Acquisition of Additional Equity of FHL0 (37,805)(37,805)
Balance at March 31, 2022$35,687 $12,882 $48,569 
Net Income (Loss)(7,616)717 (6,899)
Other Comprehensive Income (Loss), net of tax0 (1,068)(1,068)
Subscriptions—Redeemable Noncontrolling Interest Holders14,977 337 15,314 
Distributions to Noncontrolling Interests in Subsidiaries(1,024)(161)(1,185)
Balance at June 30, 2022$42,024 $12,707 $54,731 
Net Income (Loss)(2,104)199 (1,905)
Other Comprehensive Income (Loss), net of tax0 (1,713)(1,713)
Subscriptions—Redeemable Noncontrolling Interest Holders3,591 903 4,494 
Consolidation/(Deconsolidation)15,599 0 15,599 
Distributions to Noncontrolling Interests in Subsidiaries(15,512)(1,108)(16,620)
Balance at September 30, 2022$43,598 $10,988 $54,586 
(in thousands)Consolidated Investment CompaniesFHL and other entitiesTotal
Balance at December 31, 2020$24,246 $212,741 $236,987 
Net Income (Loss)(1,091)953 (138)
Other Comprehensive Income (Loss), net of tax0 1,430 1,430 
Subscriptions—Redeemable Noncontrolling Interest Holders25,762 0 25,762 
Consolidation/(Deconsolidation)(25,419)9,182 (16,237)
Stock Award Activity0 2,481 2,481 
Distributions to Noncontrolling Interests in Subsidiaries(1,320)(578)(1,898)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL0 (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 tax0 868 868 
Subscriptions—Redeemable Noncontrolling Interest Holders899,250 712 899,962 
Consolidation/(Deconsolidation)(894,175)0 (894,175)
Stock Award Activity0 2,518 2,518 
Distributions to Noncontrolling Interests 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 tax0 (9,953)(9,953)
Subscriptions—Redeemable Noncontrolling Interest Holders66,506 397 66,903 
Consolidation/(Deconsolidation)(74,836)0 (74,836)
Stock Award Activity0 2,557 2,557 
Distributions to Noncontrolling Interests in Subsidiaries(575)(603)(1,178)
Acquisition of Additional Equity of FHL0 (165,112)(165,112)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL0 (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.