Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 72

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 72
---
 no single client who accounted for more than 10% of the Company’s revenues in any of the periods presented.

25

13. Derivative Financial InstrumentsThe Company is exposed to market risks, including changes in interest rates. To manage the risk related to these exposures, the Company has entered into various derivative instruments that reduce these risks by creating offsetting exposures.Interest Rate SwapsThe Company has utilized swap agreements that will fix the floating interest rates associated with its Term Loan as shown in the following table: Designation DateEffective DateInitial Notional AmountNotional Amount Outstanding as of September 30, 2025Fixed RateExpiration DateMarch 2022June 2025$1,197,000,000 $1,197,000,000 2.5540 %December 2026March 2023March 2023$150,000,000 $150,000,000 3.9025 %December 2026March 2023March 2023$150,000,000 $150,000,000 3.9100 %December 2026During the nine months ended September 30, 2025, we did not execute any new interest rate swaps. Our interest rate swaps have been designated as cash flow hedges.Financial Instrument PresentationThe fair values and location of outstanding derivative instruments recorded in the Condensed Consolidated Balance Sheets are as follows (in millions):September 30,2025December 31,2024AssetsOther current assets$8 $23 Other assets1 8 Total$9 $31 LiabilitiesOther current liabilities$1 $— Other liabilities— — Total$1 $— The Company estimates that approximately $7 million of derivative gains included in Accumulated other comprehensive income as of September 30, 2025 will be reclassified into earnings over the next twelve months.

14. Financial Instruments Seller EarnoutsUpon completion of the Business Combination, the equity owners of Alight Holdings received an earnout in the form of non-voting shares of Class B-1 and Class B-2 Common Stock, which automatically convert into Class A Common Stock if, at any time during the seven years following the Closing Date, certain criteria are achieved. See Note 9 “Stockholders’ Equity” for additional information regarding the Seller Earnouts.The portion of the Seller Earnouts related to employee compensation was accounted for as share-based compensation. As all employee compensation associated with the Seller Earnouts was ultimately