•Deferred policy acquisition costs ("DAC"), value of business acquired ("VOBA") and other intangibles (collectively, "DAC/VOBA and other intangibles");
Fixed Maturities and Equity Securities: The Company measures its equity securities at fair value and recognizes any changes in fair value in net income.
entity in which the Company holds a variable interest is a VIE and (b) whether the Company's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (e.g., management and performance related fees), would give it a controlling financial interest.
The Company invests in various categories of CMOs, including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of December 31, 2020 and 2019, approximately 44.5% and 43.4%, respectively, of the Company's CMO holdings, were invested in the above mentioned types of CMOs such as interest-only or principal-only strips, that are subject to more prepayment and extension risk than traditional CMOs.
The Company engages in securities lending whereby the initial collateral is required at a rate of 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. As of December 31, 2020 and 2019, the fair value of loaned securities was $197 and $1,159, respectively, and is included in Securities pledged on the Consolidated Balance Sheets.
The following tables present commercial mortgage loans by year of origination and LTV ratio as of the dates indicated. The information is updated as of December 31, 2020 and December 31, 2019, respectively.
ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.
(1) Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction.
Amortization expense related to intangible assets was $55, $60 and $61 for the years ended December 31, 2020, 2019 and 2018, respectively.
The 2014 Omnibus Plan was adopted by the Company's Board of Directors and approved by shareholders in 2014, and has substantially the same terms as the 2013 Omnibus Plan, except for certain changes intended to allow certain performance-based compensation awards to comply with the criteria for tax deductibility set forth in Section 162(m) of the Internal Revenue Code. The 2014 Omnibus Plan provides for 17,800,000 shares of common stock to be available for issuance as equity-based compensation awards. As of December 31, 2020, common stock reserved and available for issuance under the 2014 Omnibus Plan was 3,337,319 shares.
(2) Equity securities include two assets that use NAV to calculate fair value. Baillie Gifford Funds has a balance of $125 and Silchester has a fund balance of $110. See footnote 2 to previous table for further information.
Pension plan assets are categorized into a three-level fair value hierarchy based upon the inputs available in evaluating each of the assets. Certain investments are measured at fair value using the NAV per share as a practical expedient and have not been classified in the fair value hierarchy. The leveling hierarchy is applied to the pension plans assets as follows:
•Equity securities: Fair values for actively traded equity securities are based upon a quoted market price determined in an active market and are included in Level 1. Collective trust use observable pricing method such as matrix pricing, market corroborated pricing or inputs such as yield curves and indices. These investments are classified as Level 2. Commingled funds are estimated at NAV per share. See footnote (2) in fair value hierarchy table above for a description of the fund's redemption policies.
The aggregate amounts of future principal payments of long-term debt issued by the Company at December 31, 2020 for the next five years and thereafter are $1 in 2021, $1 in 2022, $141 in 2023, $400 in 2024, $1 in 2025 and $2,531 thereafter.
On February 24, 2021, the Company repurchased $21 and $53 par value of its 3.125% Senior Notes, due 2024 and 3.65% Senior Notes, due 2026, respectively, for $22 and $60, respectively, on the open market.
Cost of insurance litigation for the Company includes Barnes v. Security Life of Denver (USDC District of Colorado, No. 1:18-cv-00718) (filed March 27, 2018), a putative class action in which the plaintiff alleges that his insurance policy only permitted the Company to rely upon his expected future mortality experience to establish and increase his cost of insurance, but the Company instead relied upon other, non-disclosed factors to do so. Plaintiff alleges breach of contract and conversion claims against the Company and also seeks declaratory relief. The Company denies the allegations in the complaint, believes the complaint to be without merit, and intends to defend the matter vigorously.
•Restricted, publicly traded securities may be valued at a discount from the closing public market price on the reporting date, depending on the circumstances; and
The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2019:
Transfers of investments out of Level 3 and into Level 2 or Level 1, if any, are recorded as of the beginning of the period in which the transfer occurred. For the years ended December 31, 2020 and 2019, there were no transfers in or out of Level 3 or transfers between Level 1 and Level 2.
As a result of the revision, Investments in subsidiaries was adjusted from $11,003 to $10,982, Deferred income taxes was adjusted from $816 to $825, and Unappropriated was adjusted from $(4,649) to $(4,661) within the Balance Sheets on Schedule II for 2019. Other expenses was adjusted from $12 to $10, Interest expense was adjusted from $151 to $149, Income tax expense (benefit) was adjusted from $(277) to $(285), and Equity in earnings (losses) of subsidiaries, net of tax was adjusted from $(503) to $(524) within the Statements of Operations on Schedule II for 2019. Additionally, Other expenses was adjusted from $11 to $14, Interest expense was adjusted from $175 to $176, and Income tax expense (benefit) was adjusted from $0 to $(1) within the Statements of Operations on Schedule II for 2018.
Voya Financial, Inc. provides credit support to its Roaring River IV, LLC ("Roaring River IV") captive reinsurance subsidiary through a surplus maintenance agreement with a third-party bank in connection with a financing arrangement involving $565 of statutory reserves which matures December 31, 2028. The reimbursement agreement requires Voya Financial, Inc. to cause capital to be maintained in Roaring River IV Holding LLC, the intermediate holding company of Roaring River IV, and in Roaring River IV. These amounts will vary over time based on a percentage of Roaring River IV in force life insurance. In connection with the closing of the Individual Life Transaction on January 4, 2021, this facility was terminated.
•Voya Financial, Inc. and Voya Holdings provide a guarantee to certain Voya insurance subsidiaries of VIAC’s payment obligations to those subsidiaries under certain VIAC surplus notes held by those subsidiaries. The agreement provides for Voya and Voya Holdings to reimburse the applicable subsidiary to the extent that any interest on, principal of, or any redemption payment with respect to such surplus note is unpaid by VIAC on its scheduled date of payment.
(1) The year ended December 31, 2018 included $70 of non-cash activities.