Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 111

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 our internal planning process inclusive of long-term growth assumptions, estimating cash flows requires significant judgment. Future changes to our projected cash flows can vary from the cash flows eventually realized, which may have a material impact on the outcomes of future goodwill impairment tests.The Company uses a weighted average cost of capital that represents the blended average required rate of return for equity and debt capital based on observed market return data and company-specific risk factors. Other significant assumptions utilized included the Company’s projections of expected future revenues and EBITDA margin, which is defined as earnings before interest, taxes, depreciation and intangible amortization as a percentage of revenue. We utilized a discount rate of 11.5% and a long-term growth rate of 3.5% for our Health Solutions and Wealth Solutions reporting units in the determination of fair value. A hypothetical 25-basis point increase in the discount rate or a hypothetical 50-basis 

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point decrease in the long-term growth rate could have resulted in an additional goodwill impairment in the Company’s Health Solutions reporting unit of $200 million. The estimated fair value of the Wealth Solutions reporting unit continued to exceed its carrying value. At June 30, 2025, our Health Solutions and Wealth Solutions reporting units had $2,101 million and $128 million of goodwill, respectively. Intangible assets by asset class are as follows (in millions):June 30, 2025December 31, 2024GrossCarryingAmountAccumulatedAmortizationNetCarryingAmountGrossCarryingAmountAccumulatedAmortizationNetCarryingAmountIntangible assets:Customer-related and contract based intangibles$3,192 $850 $2,342 $3,192 $742 $2,450 Technology related intangibles230 152 78 230 133 97 Trade name408 114 294 408 100 308 Total$3,830 $1,116 $2,714 $3,830 $975 $2,855 Amortization expense from finite-lived intangible assets for the three months ended June 30, 2025 and 2024 was $70 million and $69 million, respectively. Amortization expense from finite-lived intangible assets for the six months ended June 30, 2025 and 2024 was $141 million and $140 million, respectively. Amortization expense from finite-lived intangible assets was recorded in Depreciation and intangible amort