Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 110

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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, respectively (see Note 15 "Tax Receivable Agreement" for additional information).

Other current liabilities and Other liabilities include the fair value of outstanding derivative instruments related to interest rate swaps. There were no interest rate swaps recorded in Other current liabilities as of both June 30, 2025 and December 31, 2024. The interest rate swap balance in Other liabilities as of June 30, 2025 was $1 million. There were no interest rate swaps recorded in Other liabilities as of December 31, 2024 (see Note 13 “Derivative Financial Instruments” for additional information).  

6. Goodwill and Intangible assets, net The changes in the net carrying amount of goodwill are as follows (in millions):TotalBalance as of December 31, 2024$3,212 Impairment(1)(983)Balance at June 30, 2025$2,229 (1)Amount relates to a non-cash goodwill impairment charge for the Company's Health Solutions reporting unit.Goodwill for each reporting unit is tested for impairment annually as of October 1, or more frequently if there are indicators that a reporting unit may be impaired. During the fourth quarter of 2024, the Company performed a quantitative assessment in accordance with FASB Accounting Standards Codification ("ASC") 350. The Company determined the fair value of its reporting units exceeded the carrying value as of October 1, 2024, and therefore, goodwill was not impaired.During the second quarter of 2025, we evaluated the macroeconomic, industry and market conditions, both current and future expected financial performance, and relevant entity-specific events for each of the reporting units to determine whether there were any interim indicators of impairment. Based on these considerations, we concluded there were indicators of impairment in the Health Solutions reporting unit and the Company recorded a non-cash goodwill impairment charge of $983 million, which is included in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025. The Company determines the fair value of the reporting units by using a combination of the present value of expected future cash flows and a market approach based on earnings multiple data from peer companies, using unobservable level 3 inputs. If an impairment is identified, an impairment is recorded by the amount that the carrying value exceeds the fair value for each reporting unit as a non-recurring fair value measurement. While the future cash flows are consistent with those that are used in