Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 70

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 LiabilitiesOther current liabilities$— $— Other liabilities1 — Total$1 $— The Company estimates that approximately $12 million of derivative gains included in Accumulated other comprehensive income as of June 30, 2025 will be reclassified into earnings over the next twelve months.

14. Financial Instruments Seller EarnoutsUpon completion of the Business Combination, the equity owners of Alight Holdings received an earnout in the form of non-voting shares of Class B-1 and Class B-2 Common Stock, which automatically convert into Class A Common Stock if, at any time during the seven years following the Closing Date, certain criteria are achieved. See Note 9 “Stockholders’ Equity” for additional information regarding the Seller Earnouts.The portion of the Seller Earnouts related to employee compensation was accounted for as share-based compensation. As all employee compensation associated with the Seller Earnouts was ultimately vested on July 2, 2024, no portion of the Seller Earnout as of June 30, 2025 was accounted for as share-based compensation. See Note 10 “Share-Based Compensation” for additional information.As of June 30, 2025, all of the remaining Seller Earnouts were accounted for as a contingent consideration liability at fair value within Financial instruments on the Condensed Consolidated Balance Sheets because the Seller Earnouts do 

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not meet the criteria for classification within equity. This liability is subject to remeasurement at each balance sheet date. At June 30, 2025 and December 31, 2024, the Seller Earnouts had a fair value of $21 million and $51 million, respectively. For the three months ended June 30, 2025 and 2024, the fair value remeasurement of the Seller Earnouts resulted in a gain of $8 million and $48 million, respectively. For the six months ended June 30, 2025 and 2024, the fair value remeasurement of the Seller Earnouts resulted in a gain of $30 and $29 million, respectively. Gains or losses related to the remeasurement of Seller Earnouts are recorded in (Gain) Loss from change in fair value of financial instruments within the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss).The fair value of the Class B-1 and B-2 Seller Earnouts, and, prior to the Class Z vesting on July 2, 2024, the Class Z-B-1 and Z-B-