Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 147

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 147
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 a loss of $32 million for the  six months ended June 30, 2025, an increase of $8 million compared to a loss of $24 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 $20 million for the six months ended June 30, 2025 as compared to the prior year period. The decrease was primarily due to the partial repayment of debt in the prior year, the opportunistic repricing of our 2028 term loan and higher interest income, partially offset by the Company's hedges. See Note 8 “Debt” within the Condensed Consolidated Financial Statements for additional information. 

Other (Income) Expense, net

Under the terms of the TSA as described in Note 4 "Discontinued Operations" within the Condensed Consolidated Financial Statements, the Company is providing technology infrastructure, risk and security, and various other corporate services to the Divested Business subsequent to the close. We recorded $18 million for services performed under the TSA for the six months ended June 30, 2025 in Other (income) expense, net, and the corresponding expenses were recognized in Cost of services and Selling, general and administrative expense in the Condensed Consolidated Statement of Comprehensive Income (Loss).

Income (Loss) From Continuing Operations Before Taxes

Loss from continuing operations before taxes was $1,096 million for the six months ended June 30, 2025 as compared to loss from continuing operations before taxes of $150 million for the six months ended June 30, 2024. The increase in loss was primarily attributable to the $983 million non-cash goodwill impairment charge, the non-operating fair value remeasurements of financial instruments and the tax receivable agreement, partially offset by lower selling, general and administrative expenses, lower interest expense as a result of the debt pay down and other income recorded in conjunction with the TSA entered into with the purchaser of the Divested Business.

Income Tax Expense (Benefit)

Income tax benefit was $6 million for the six months ended June 30, 2025, as compared to an income tax benefit of $25 million for the prior year period. The effective tax rate of 1% for the six months ended June 30, 2025 was lower than the 21% U.S.