Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 76

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 of 26.3%; (ii) the latest estimates in taxable income inclusive of the OBBBA which was enacted into law in the U.S in July 2025; (iii) the ability to utilize tax attributes based on current tax forecasts; and (iv) future payments under the TRA are made when due under the TRA. The amount of the expected future payments under the TRA has been discounted to its present value using a discount rate of 7.4%. Subsequent to the Business Combination, we record additional liabilities under the TRA as and when Class A units of Alight Holdings are exchanged for Class A Common Stock. Liabilities resulting from these exchanges will be recorded on a gross undiscounted basis and are not remeasured at fair value on a recurring basis. During the nine months ended September 30, 2025, there were no significant exchanges. As such, no additional TRA liability was established as a result of the exchanges. During the nine months ended September 30, 2024, an additional TRA liability of $90 million was established as a result of exchanges. As of September 30, 2025, $493 million of the TRA liability was measured at fair value on a recurring basis and $230 million was undiscounted 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, 2024$857 Fair value remeasurement(34)Payments(100)Ending balance as of September 30, 2025723 Less: current portion included in other current liabilities(164)Total long-term tax receivable agreement liability$559 

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.The Company’s financial assets and liabilities measured at fair value