Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 139

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 139
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counted and not remeasured at fair value. The following table summarizes the changes in the TRA liabilities (in millions):Tax Receivable Agreement Liability Beginning balance as of December 31, 2023$795 Fair value remeasurement34 Payments(62)Conversion of noncontrolling interest90 Ending balance as of December 31, 2024857 Less: current portion included in other current liabilities(100)Total long-term tax receivable agreement liability$757 

16. Fair Value MeasurementFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standards related to fair value measurements include a hierarchy for information and valuations used in measuring fair value that is broken down into three levels based on reliability, as follows: •Level 1 – observable inputs such as quoted prices in active markets for identical assets and liabilities;•Level 2 – inputs other than quoted prices for identical assets in active markets that are observable either directly or indirectly; and•Level 3 – unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions.

84

The Company’s financial assets and liabilities measured at fair value on a recurring basis are as follows (in millions):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 $677 December 31, 2023Level 1Level 2Level 3TotalAssetsInterest rate swaps$— $77 $— $77 Total assets recorded at fair value$— $77 $— $77 LiabilitiesInterest rate swaps— 3 — 3 Contingent consideration liability— — 3 3 Seller Earnouts liability— — 95 95 Tax receivable agreement liability (1)— — 634