Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 84

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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, General and Administrative

Selling, general and administrative expenses decreased $16 million, or 11.0%, for the three months ended June 30, 2025 as compared to the prior year period. The decrease was driven by lower professional fees incurred related to the sale and separation of the Divested business and a reduction in compensation expenses primarily related to non-cash share-based awards, partially offset by higher restructuring charges incurred related to the post-separation plan. 

Depreciation and Intangible Amortization

Depreciation and intangible amortization expenses were consistent with the prior year period.

Goodwill Impairment

We identified a goodwill impairment in the Health Solutions reporting unit and recorded a $983 million non-cash impairment charge for the three months ended June 30, 2025. There was no impairment recognized for the three months ended June 30, 2024. 

Change in Fair Value of Financial Instruments

There was a $28 million loss related to the change in the fair value of financial instruments for the three months ended June 30, 2025 compared to a gain of $52 million for the prior year period, primarily due to the $36 million write down of our Additional Seller Note, partially offset by a gain on the remeasurement of the Seller Earnout. We are required to remeasure the financial instruments at the end of each reporting period and reflect a gain or loss for the change in fair value of the financial instruments in the period the change occurred. Changes in the fair value are primarily due to changes in the underlying assumptions of each respective instrument, including changes in the risk-free interest rate, volatility, cost of debt, forecasts, and the closing stock price for the period. See Note 14 "Financial Instruments" within the Condensed Consolidated Financial Statements for additional information. 

Change in Fair Value of Tax Receivable Agreement

The change in the fair value of the TRA resulted in a loss of $23 million for the three months ended June 30, 2025, a decrease of $54 million compared to a gain of $31 million for the prior year period. The change in fair value was due to changes in the Company's assumptions related to the timing of the utilization of tax attributes during the term of the TRA, changes in the discount rate and the passage of time.

Interest Expense

Interest expense decreased $11 million for the three months ended June 30, 2025, as compared to the prior year period. The decrease was primarily due to the