Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 37

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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 our business, make planning decisions, and as performance measures for Company-wide incentive compensation plans. These key financial measures provide an additional view of our operational performance over the long-term and provide useful information that we use in order to maintain and grow our business. The Company does not report assets by reportable segments as this information is not reviewed by the CODM on a regular basis.Information regarding the Company’s reportable segment is as follows (in millions):Three Months Ended March 31,20252024RevenueRecurring$520 $521 Project28 38 Total Revenue$548 $559 Less (1)Cost of sales - Technology (2)$76 $82 Cost of sales - Delivery, Customer Care and Other (3)272 269 Stock Based Compensation3 5 Depreciation and Amortization26 21 Total Gross Profit$171 $182 Selling, General, and Administrative (4)97 108 Restructuring4 15 Stock Based Compensation3 23 Depreciation and Intangible Amortization75 76 Interest expense22 31 Other segment items (5)(13)50 Net Income (Loss) From Continuing Operations$(17)$(121)(1) - The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.(2) - Cost of sales - Technology is primarily attributable to cost related to application development and client-related infrastructure.(3) - Cost of sales - Delivery, Customer Care and Other is primarily attributable to costs related personnel and vendors providing services to support our client base and client participants. (4) - Selling, General, and Administrative expenses excludes restructuring, stock based compensation and depreciation and intangible amortization and primarily include compensation-related costs for administrative and management employees, system and facilities expense, and costs for external professional and consulting services. (5) - Other segment items - includes gain/loss from change in fair value of financial instruments, gain/loss from change in fair value of tax receivable agreement, other (income) expense, net and income taxes. There was no single client who accounted for more than 10% of the Company’s revenues in any of the periods presented.

13. Derivative Financial InstrumentsThe Company is exposed to market risks, including changes in interest rates. To manage the risk related to these exposures, the Company has entered into various derivative instruments that reduce these risks by creating offsetting exposures.

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Interest Rate SwapsThe Company has utilized swap agreements