| Fair Value Measurements and Fair Value Hierarchy |
3. Fair Value Measurements and Fair Value Hierarchy Accounting Standard Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. The Plan has categorized its financial instruments into the three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the Plan bases the category level on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets recorded at fair value on the Statements of Net Assets Available for Benefits are categorized as follows: . Unadjusted quoted prices for identical assets in an active market. . Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset. Level 2 inputs include the following:
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a) |
Quoted prices for similar assets in active markets |
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b) |
Quoted prices for identical or similar assets in non-active markets |
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c) |
Inputs other than quoted market prices that are observable |
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d) |
Inputs that are derived principally from or corroborated by observable market data through correlation or other means | . Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Both observable and unobservable inputs may be used to determine the fair value of positions classified in Level 3. The circumstance for using unobservable measurements includes those in which there is little, if any, market activity for the assets. Therefore, the Plan must make assumptions about inputs that a hypothetical market participant would use to value the assets. The following tables present the Plan’s hierarchy for its assets measured at fair value on a recurring basis at December 31, 2025 and 2024:
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$ |
163,607 |
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$ |
1,467 |
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$ |
— |
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$ |
165,074 |
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38,020 |
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— |
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— |
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38,020 |
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Self-directed brokerage account (c) |
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143,684 |
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|
1,896 |
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— |
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145,580 |
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Investments measured at NAV (d) |
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— |
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— |
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— |
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2,119,731 |
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$ |
345,311 |
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$ |
3,363 |
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$ |
— |
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$ |
2,468,405 |
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$ |
194,859 |
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$ |
1,004 |
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$ |
— |
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$ |
195,863 |
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95,768 |
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— |
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— |
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95,768 |
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Self-directed brokerage account (c) |
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128,123 |
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1,248 |
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— |
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129,371 |
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Investments measured at NAV (d) |
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— |
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— |
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— |
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1,786,268 |
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$ |
418,750 |
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$ |
2,252 |
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$ |
— |
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$ |
2,207,270 |
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| (a) |
The Common stock fund includes both the Aegon Ltd. Common Stock Fund as well as other common stock funds held. The fair value of the assets of the Common stock fund is determined using quoted prices in active markets for common shares and is classified as Level 1. Cash equivalents including short-term investments are carried at amortized cost, which approximates fair value, and are classified as Level 2, unless the cash equivalent received a vendor price at which point it is classified as Level 1. |
| (b) |
Mutual funds are valued based on NAV provided by the fund managers, whose NAV’s are quoted in an active market and therefore considered Level 1. |
| (c) |
In accordance with Accounting Standard Updates (“ASU”) No. 2015-12 Subtopic 962-325, investments measured using fair value in the Statement of Net Assets Available for Benefits or in the notes shall be presented by general type. Self-directed brokerage accounts are considered a general type and are presented as one line item for both December 31, 2025, and 2024. The fair value of assets determined using identical assets in an active market are classified as Level 1. Assets classified as Level 2 are valued using inputs from third party pricing services. |
| (d) |
Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy in accordance with Subtopic 820-10. NAV is provided by the fund managers, is not quoted in an active market and these investments do not have lockup periods. | The following table summarizes investments for which fair value is measured using the net asset per share practical expedient:
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Redemption
Frequency
(If Currently
Eligible) |
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Investments measured at NAV |
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$ |
2,119,731 |
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None |
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Daily |
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None |
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Total investments measured at NAV |
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$ |
2,119,731 |
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Redemption
Frequency
(If Currently
Eligible) |
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Investments measured at NAV |
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| |
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$ |
1,786,268 |
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None |
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Daily |
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None |
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Total investments measured at NAV |
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$ |
1,786,268 |
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| The Plan recognizes transfers between levels at the beginning of the year. There were no transfers between levels during 2025 and 2024. |