Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 113

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 52 Net Income (Loss) from Discontinued Operations, Net of Tax$(13)$(30)$(22)$2 The Company concluded that it controlled a portion of the Divested Business services subsequent to separation as a result of certain shared contractual relationships that had not been legally assigned as of September 30, 2025. As such, the Company determined it was the principal for these services and, therefore, the Company recorded $3 million and $40 million for the three and nine months ended September 30, 2025, respectively, and $33 million for each of the three and nine months ended September 30, 2024 of Revenue and Cost of services on a gross basis within discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss).

11

The Company recorded $13 million of tax expense for the three months ended September 30, 2025 and $34 million for the three months ended September 30, 2024, respectively. This additional income tax is due to application of the dual consolidated loss rules as a result of the filing of the federal tax return during the interim period. The application of the dual consolidated loss rule was impacted by the sale of the Divested Business, which disallowed foreign losses previously elected. The Company recorded $14 million of tax expense for the nine months ended September 30, 2025 and $52 million of tax expense for the nine months ended September 30, 2024, respectively. This additional income tax is due to application of the dual consolidated loss rules as a result of the filing of the federal tax return, as well as the Company’s recording of the tax provision for the Divested business during the prior period.   The expense amounts reflected above represent only the direct costs attributable to the Divested Business and excludes allocations of corporate costs retained following the sale.

5. Other Financial DataCondensed Consolidated Balance Sheets InformationReceivables, netThe components of Receivables, net are as follows (in millions):September 30,2025December 31,2024Billed and unbilled receivables$408 $480 Allowance for expected credit losses(9)(9)Balance at end of period$399 $471 Other current assetsThe components of Other current assets are as follows (in millions):September 30,2025December 31,2024Deferred project costs$29 $23 Prepaid expenses59 56 Commissions receivable27 89 Other60