Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 77

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 on a recurring basis are as follows (in millions):September 30, 2025Level 1Level 2Level 3TotalAssetsInterest rate swaps$— $9 $— $9 Additional seller note— — — — Total assets recorded at fair value$— $9 $— $9 LiabilitiesInterest rate swaps$— $1 $— $1 Seller earnouts liability— — 2 2 Tax receivable agreement liability (1)— — 493 493 Total liabilities recorded at fair value$— $1 $495 $496 

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December 31, 2024Level 1Level 2Level 3TotalAssetsInterest rate swaps$— $31 $— $31 Additional seller note— — 50 50 Total assets recorded at fair value$— $31 $50 $81 LiabilitiesInterest rate swaps$— $— $— $— Contingent consideration liability— — 6 6 Seller earnouts liability— — 51 51 Tax receivable agreement liability (1)— — 620 620 Total liabilities recorded at fair value$— $— $677 $677 _________________________________________________________(1)Excludes the portion of liability related to the exchanges of Class A Units not measured at fair value on a recurring basis.DerivativesThe valuations of the derivatives intended to mitigate our interest rate risk are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves, interest rate volatility, or spot and forward exchange rates, and reflects the contractual terms 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.Additional Disclosures Regarding Fair Value MeasurementsThe fair value of the Company’s debt is classified as Level 2 and the Seller note is classified as Level 3 within the fair value hierarchy and corroborated by observable market data is as follows (in millions):September 30, 2025December 31, 2024Carrying ValueFair ValueCarrying ValueFair ValueAssetsSeller note$41 $45 $37 $37 Total assets$41 $45