Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 207

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 3
Chunk 207
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 (in millions):Year Ended December 31,202420232022Income tax expense (benefit):Current:Federal$(4)$(21)$(18)State5 9 5 Foreign10 1 4 Total current tax expense (benefit)$11 $(11)$(9)Deferred tax expense (benefit):Federal$(9)$(1)$19 State(12)(8)— Foreign2 — 6 Total deferred tax expense (benefit)$(19)$(9)$25 Total income tax expense (benefit)$(8)$(20)$16 

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Effective Tax Rate ReconciliationThe reconciliation of the effective tax rate for all periods presented is as follows (in millions):Year Ended December 31,202420232022Amount%Amount%Amount%Income (Loss) from continuing operations before taxes$(148)$(337)$(124)Provision for income taxes at the statutory rate$(31)21 %$(71)21 %$(26)21 %State income taxes, net of federal benefit2 (1)%(1)— %3 (2)%Jurisdictional rate differences5 (3)%(4)1 %5 (4)%Changes in valuation allowances26 (18)%14 (4)%17 (14)%Benefit of income not allocated to the Company— — %3 (1)%6 (5)%Income in separate U.S. tax consolidations1 (1)%1 — %15 (12)%Adjustments based on filed tax returns(2)1 %— — %(1)1 %Non-deductible expenses6 (4)%45 (13)%32 (27)%Tax credits(17)11 %(14)4 %(7)6 %Change in uncertain tax positions— — %— — %(27)22 %Other2 (1)%7 (2)%(1)1 %Total income tax expense (benefit)$(8)5 %$(20)6 %$16 (13)%The Company’s effective tax rate for the year ended December 31, 2024, year ended December 31, 2023, and year ended December 31, 2022 was 5%, 6% and 13%, respectively.The Company’s income tax expense varies from the expense that would be expected based