Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 169

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 169
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 of these instruments, including the period to maturity. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential non-performance risk.Contingent ConsiderationThe contingent consideration liabilities relate to acquisitions in previous years and are included in Other current liabilities on the Consolidated Balance Sheets. The fair value of these liabilities is determined using a discounted cash flow analysis. Changes in the fair value of the liabilities are included in Other (income) expense, net in the Consolidated Statements of Comprehensive Income (Loss). Level 3 unobservable inputs are used in the assessment of fair value, including assumptions regarding discount rates and probability assessments based on the likelihood of reaching the various targets set out in the respective acquisition agreements. 

85

The following table summarizes the changes in deferred contingent consideration liabilities (in millions):Year Ended December 31,20242023Beginning balance$3 $13 Measurement period adjustments3 — Remeasurement of acquisition-related contingent consideration— (5)Payments— (5)Ending Balance$6 $3 Additional Disclosures Regarding Fair Value MeasurementsThe fair value of the Company’s debt is classified as Level 2 within the fair value hierarchy and corroborated by observable market data is as follows (in millions):December 31, 2024December 31, 2023Carrying ValueFair ValueCarrying ValueFair ValueLiabilitiesCurrent portion of long-term debt, net$25 $25 $25 $25 Long-term debt, net2,000 2,008 2,769 2,780 Total$2,025 $2,033 $2,794 $2,805 The carrying value of the Term Loan, Secured Senior Notes include the outstanding principal balance, less any unamortized premium. The outstanding balances under the Senior Notes have fixed interest rates and the fair value is classified as Level 2 within the fair value hierarchy and corroborated by observable market data (see Note 8 “Debt”).The carrying amounts of Cash and cash equivalents, Receivables, net and Accounts payable and accrued liabilities approximate their fair values due to the short-term maturities of these instruments.The Seller Note was measured at fair value of $35 million as of July 12, 2024 issued at Closing on a nonrecurring basis using a variation of the income approach and level 3 unobservable inputs. See Note 4 "Discontinued Operations" for additional information