Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 152

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 152
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 general and administrative expenses decreased $113 million, or 26.0%, for the nine months ended September 30, 2025 as compared to the prior year period. The decrease was driven by a reduction in compensation expense, primarily from lower non-cash share-based awards, lower professional fees incurred related to the sale and separation of the Divested Business and productivity savings. 

Depreciation and Intangible Amortization

Depreciation and intangible amortization expenses were consistent with the prior year period.

Goodwill Impairment

During the nine months ended September 30, 2025, the Company identified interim indicators of impairment and recorded a total of $2,321 million non-cash goodwill impairment charges for the period. There was no impairment recognized for the nine months ended September 30, 2024. See Note 6 "Goodwill and Intangible assets, net" within the Condensed Consolidated Financial Statements for additional information.

Change in Fair Value of Financial Instruments

There was a $1 million loss related to the change in the fair value of financial instruments for the nine months ended September 30, 2025 compared to a gain of $54 million for the prior year period, primarily due to the $50 million 

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write down of our Additional Seller Note in the current year, partially offset by a gain on remeasurement of the Seller Earnout. We are required 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 a gain of $34 million for the nine months ended September 30, 2025, an increase of $85 million compared to a loss of $51 million for the prior year period. The change in fair value was due to changes in the Company's assumptions related to the timing of the utilization of tax attributes during the term of the TRA, changes in the discount rate and the passage of time.

Interest Expense

Interest expense decreased $15 million for the nine months ended September 30, 202