Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 20

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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 under which the Company provides certain reimbursable post-closing services to support the business on a transitional basis and are anticipated to be provided for an initial period of up to 18 months, with the option to extend for an additional six months. As part of the TSA agreement, $15 million of the Closing Cash Consideration payable at closing was accounted for as a prepayment to the Company for services provided under the TSA. During the three months ended March 31, 2025, TSA services income of $10 million was recognized in Other (income) expense, net, with the corresponding expenses recorded in Cost of services and Selling, general and administrative expense in the Condensed Consolidated Statement of Comprehensive Income (Loss). During the three months ended March 31, 2025, pass-through costs of approximately $15 million were incurred under the TSA, which were netted against the equal and offsetting reimbursement amounts due from the Divested Business.Revenue earned during the three months ended March 31, 2025 from customer care commercial services provided to the Divested Business was $12 million.

9

An additional loss on sale of the Divested Business of $7 million, net of tax, was recorded for the three months ended March 31, 2025 upon customary post closing selling price adjustments of the sale and reflects the impact of net proceeds received less cost to sell relative to the carrying value of the Divested Business net assets. Post-closing selling price adjustments and completion of other Purchase Agreement provisions in connection with the sale could result in further adjustments to the loss on sale amount which could be material.The following table presents the results as reported in Income (Loss) from Discontinued Operations, Net of Tax, within our Condensed Consolidated Statements of Comprehensive Income (Loss) (in millions):Three Months Ended March 31,20252024Revenue$24 $257 Cost of services, exclusive of depreciation and amortization24 187 Depreciation and amortization— 3 Gross Profit— 67 Operating ExpensesSelling, general and administrative— 37 Depreciation and intangible amortization— 8 Goodwill Impairment— — Total Operating Expenses— 45 Income (loss) from Discontinued Operations— 22 Interest expense— — Other (income) expense, net— 2 Income (Loss) from Discontinued Operations Before Income Taxes— 20 Loss on sale of disposition, net of tax7 —