Company: APO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001858681-25-000117
Chunk: 269

Company: Apollo Global Management, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 269
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 Instruments Without Readily Determinable Fair ValuesPreviously, the Company elected the measurement alternative under ASC 321 to account for an equity security that did not have a readily determinable fair value because of which the equity security was held at cost less any impairment. In connection with the initial public offering of the issuer of the equity security, the Company transitioned to measuring the investment at fair value using Level 1 inputs. This resulted in an observable transaction price below the Company’s carrying amount. Consequently, during the three months ended June 30, 2025, the Company recognized an impairment loss of $257 million and the carrying value of the investment was written down to its fair value of $101 million as of June 30, 2025.The carrying amount of the equity security was $358 million, net of an impairment of $42 million, as of December 31, 2024. Fair Value Option – Retirement ServicesThe following represents the gains (losses) recorded for instruments for which Athene has elected the fair value option, including related parties and VIEs:Three months ended June 30,Six months ended June 30,(In millions)2025202420252024Trading securities$261 $(40)$336 $(100)Mortgage loans892 82 1,933 (318)Investment funds114 3 155 (25)Future policy benefits10 31 5 58 Other(29)(11)(17)4 Total gains (losses)$1,248 $65 $2,412 $(381)Gains and losses on trading securities, mortgage loans, and other are recorded in investment related gains (losses) on the condensed consolidated statements of operations. Gains and losses related to investment funds are recorded in net investment income on the condensed consolidated statements of operations. Gains and losses related to investments of consolidated VIEs are recorded in revenues of consolidated VIEs on the condensed consolidated statements of operations. The change in fair value of future policy benefits is recorded in future policy and other policy benefits on the condensed consolidated statements of operations.The following summarizes information for fair value option mortgage loans, including related parties and VIEs:(In millions)June 30, 2025December 31, 2024Unpaid principal balance$82,709 $69,754 Mark to fair value(1,601)(2,639)Fair value$81,108 $67,115 The following represents the commercial