Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 235

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 3
Chunk 235
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 agreement liability (1)— — 620 620 Total liabilities recorded at fair value$— $— $677 $677 December 31, 2023Level 1Level 2Level 3TotalAssetsInterest rate swaps$— $77 $— $77 Total assets recorded at fair value$— $77 $— $77 LiabilitiesInterest rate swaps— 3 — 3 Contingent consideration liability— — 3 3 Seller Earnouts liability— — 95 95 Tax receivable agreement liability (1)— — 634 634 Total liabilities recorded at fair value$— $3 $732 $735 _________________________________________________________(1)Excludes the portion of liability related to the exchanges of Class A Units not measured at fair value on a recurring basis.DerivativesThe valuations of the derivatives intended to mitigate our interest rate risk are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves, interest rate volatility, or spot and forward exchange rates, and reflects the contractual terms of these instruments, including the period to maturity. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential non-performance risk.Contingent ConsiderationThe contingent consideration liabilities relate to acquisitions in previous years and are included in Other current liabilities on the Consolidated Balance Sheets. The fair value of these liabilities is determined using a discounted cash flow analysis. Changes in the fair value of the liabilities are included in Other (income) expense, net in the Consolidated Statements of Comprehensive Income (Loss). Level 3 unobservable inputs are used in the assessment of fair value, including assumptions regarding discount rates and probability assessments based on the likelihood of reaching the various targets set out in the respective acquisition agreements. 

85

The following table summarizes the changes in deferred contingent consideration liabilities (in millions):Year Ended December 31,20242023Beginning balance$3 $13 Measurement period adjustments3 — Remeasurement of acquisition-related contingent consideration— (5)Payments— (5)Ending Balance$6 $3 Additional Disclosures Regarding Fair Value MeasurementsThe fair value of the Company’s debt is classified as Level 2 within the fair value hierarchy and corroborated by observable market data is as follows (in millions