Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 113

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 113
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 $150,000,000 3.9100 %December 2026During the three months ended March 31, 2025, we did not execute any new interest rate swaps. Our interest rate swaps have been designated as cash flow hedges.Financial Instrument PresentationThe fair values and location of outstanding derivative instruments recorded in the Condensed Consolidated Balance Sheets are as follows (in millions):March 31,2025December 31,2024AssetsOther current assets$17 $23 Other assets4 8 Total$21 $31 LiabilitiesOther current liabilities$— $— Other liabilities1 — Total$1 $— The Company estimates that approximately $17 million of derivative gains included in Accumulated other comprehensive income as of March 31, 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 March 31, 2025 was accounted for as share-based compensation. See Note 10 “Share-Based Compensation” for additional information.As of March 31, 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 not meet the criteria for classification within equity. This liability is subject to remeasurement at each balance sheet date. At March 31, 2025 and December 31, 2024, the Seller Earnouts had a fair value of $29 million and $51 million, respectively. For the three months ended March 31, 2025 and 2024, the fair value remeasurement of the Seller Earnouts resulted in a gain of $22 million and loss of $19 million, respectively. Gains or losses related to the remeasurement of Seller Earnouts