Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 453

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 453
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 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.

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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 $— $77 LiabilitiesInterest rate swaps— 3 — 3 Contingent consideration liability— — 3 3 Seller Earnouts liability— — 95 95 Tax receivable agreement liability (1)— — 634 634 Total liabilities recorded at fair value$— $3 $732 $735 _________________________________________________________(1)Excludes the portion of liability related to the exchanges of Class A Units not measured at fair value on a recurring basis.DerivativesThe valuations of the derivatives intended to mitigate our interest rate risk are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves, interest rate volatility, or spot and forward exchange rates, and reflects the contractual terms