Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 146

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 146
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 of Depreciation and Amortization 

Cost of services, exclusive of depreciation and amortization, decreased $25 million, or 3.6%, for the six months ended June 30, 2025 as compared to the prior year period. The decrease was primarily driven by lower revenues and savings realized in conjunction with productivity initiatives.

Depreciation and Amortization

Depreciation and amortization expenses increased by $6 million, or 12.8%, as compared to the prior year period, primarily driven by capitalized software.

Selling, General and Administrative

Selling, general and administrative expenses decreased $58 million, or 19.9%, for the six months ended June 30, 2025 as compared to the prior year period. The decrease was driven by a reduction in compensation expenses primarily related to non-cash share-based awards and lower professional fees incurred related to the sale and separation of the Divested business, partially offset by higher restructuring charges. 

Depreciation and Intangible Amortization

Depreciation and intangible amortization expenses decreased by $1 million, or 0.7%, and were consistent with the prior year period.

Goodwill Impairment

We identified an impairment in the Health Solutions reporting unit and recorded a $983 million non-cash goodwill impairment charge for the six months ended June 30, 2025. There was no impairment recognized for the six months ended June 30, 2024. 

Change in Fair Value of Financial Instruments

There was a $20 million loss related to the change in the fair value of financial instruments for the six months ended June 30, 2025 compared to a gain of $31 million for the prior year period, primarily due to the $50 million write down of our Additional Seller Note, partially offset by a gain on the remeasurement of the Seller Earnout. We are required 

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to remeasure the financial instruments at the end of each reporting period and reflect a gain or loss for the change in fair value of the financial instruments in the period the change occurred. Changes in the fair value are primarily due to changes in the underlying assumptions of each respective instrument, including changes in the risk-free interest rate, volatility, cost of debt, forecasts, and the closing stock price for the period. See Note 14 "Financial Instruments" within the Condensed Consolidated Financial Statements for additional information. 

Change in Fair Value of Tax Receivable Agreement

The change in the fair value of the TRA resulted in