Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 268

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 268
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 the tax benefits of certain NOLs and other deferred tax assets, and periodically assesses the adequacy thereof. During the year ended December 31, 2024, the valuation allowance increased by $26 million compared to the prior year, of which $23 million related to U.S. tax credits and interest limitation carryforwards. $3 million related to NOLs in non-U.S. jurisdictions. During the year ended December 31, 2023, the valuation allowance increased by $14 million compared to the prior year, of which $10 million related to U.S. tax credits and $4 million related to NOLs in non-U.S. jurisdictions.The Tax Cuts and Jobs Act established global intangible law-taxed income ("GILTI") provisions that impose a tax on foreign income in excess of a deemed return on intangible assets of foreign corporations. The Company recognizes the taxes on GILTI as a period expense rather than recognizing deferred taxes for basis differences that are expected to affect the amount of GILTI inclusion upon reversal.

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Uncertain Tax PositionsThe following is a reconciliation of the Company’s beginning and ending amount of uncertain tax positions (in millions):Year Ended December 31,202420232022Beginning Balance $2 $1 $19 Additions for tax positions of prior years— 1 — Lapse of statute of limitations(2)— (18)Ending Balance at December 31$— $2 $1 There was no liability for uncertain tax positions as of December 31, 2024. The Company’s liability for uncertain tax positions as of December 31, 2023 was $2 million related to amounts that would impact the effective tax rate if recognized. The Company records interest and penalties related to uncertain tax positions in its provision for income taxes. There were no accrued potential interest and penalties as of December 31, 2024. The Company accrued potential interest and penalties of $2 million as of December 31, 2023. The Company and its subsidiaries file income tax returns in their respective jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2020. The Company has concluded income tax examinations in its primary non-U.S. jurisdictions through 2021.

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8. DebtDebt outstanding consisted of the following (in millions):Maturity DateDecember 31,2024December 31,2023Sixth Incremental Term Loans(1)August 31,