v3.26.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2025
The Lincoln Electric Company Employee Savings Plan  
Fair Value Measurements  
Fair Value Measurements

Note 6 — Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

Level 1Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2Inputs to the valuation methodology include:

Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets or liabilities in inactive markets;
Inputs other than quoted prices that are observable for the asset or liability; and
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specific (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

The following tables set forth by level within the fair value hierarchy the Plan’s investments at fair value as of December 31, 2025 and 2024:

Assets at Fair Value as of December 31, 2025

Level 1

Level 2

Level 3

Total

Mutual funds

$

206,848,437

$

-

$

-

$

206,848,437

Self-directed brokerage accounts

37,845,069

-

-

37,845,069

Lincoln Electric Stock

168,399,752

-

-

168,399,752

Total investments in the fair value hierarchy

413,093,258

-

-

413,093,258

Common/collective trusts measured at NAV

852,362,860

Total investments at fair value

$

1,265,456,118

Assets at Fair Value as of December 31, 2024

Level 1

Level 2

Level 3

Total

Mutual funds

$

374,537,747

$

-

$

-

$

374,537,747

Self-directed brokerage accounts

37,217,171

-

-

37,217,171

Lincoln Electric Stock

148,524,969

-

-

148,524,969

Total investments in the fair value hierarchy

560,279,887

-

-

560,279,887

Common/collective trusts measured at NAV

530,663,072

Total investments at fair value

$

1,090,942,959