Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 143

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 143
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 The Company’s remaining operating leases are primarily comprised of equipment leases. The Company also leases certain IT equipment under finance leases which are reflected on the Company’s Consolidated Balance Sheets as computer equipment within Fixed assets, net. Certain of the Company’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. These variable payments are not included in the lease liabilities reflected on the Company’s Consolidated Balance Sheets.The Company subleases portions of its buildings to third parties. The right of use liability associated with these leases are not offset with expected rental incomes, as we remain primarily obligated for the leases. The Company’s lease agreements do not contain material residual value guarantees, restrictions, or covenants.The components of lease expense were as follows (in millions):Year Ended December 31,202420232022Operating lease cost$15 $16 $15 Finance lease cost:Amortization of leased assets21 21 24 Interest of lease liabilities3 1 2 Variable and short-term lease cost8 5 5 Sublease income(5)(5)(8)Total lease cost$42 $38 $38 

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Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):December 31,2024December 31,2023Operating LeasesOperating lease right-of-use assets$42 $56 Current operating lease liabilities17 28 Noncurrent operating lease liabilities56 66 Total operating lease liabilities$73 $94 Finance LeasesFixed assets, net$62 $19 Current finance lease liabilities19 10 Noncurrent finance lease liabilities39 6 Total finance lease liabilities$58 $16 Weighted Average Remaining Lease Term (in years)Operating leases5.26.0Finance leases3.92.4Weighted Average Discount RateOperating leases5.4 %4.9 %Finance leases5.8 %3.8 %Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31,202420232022Cash paid for amounts included in the measurement of lease liabilitiesOperating cash flows from operating leases$28 $30 $27 Operating cash flows from finance leases3 1 2 Financing cash flows from finance leases27 25 30 Right