Alight, Inc. / Delaware - 10-K filing on 2022-03-10

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Net Carrying Amount of Goodwill

The changes in the net carrying amount of goodwill are as follows (in millions):


	Predecessor
	Employer		Professional
	Solutions		Services		Total
Balance as of December 31, 2020	$	1,985	$	260	$	2,245
Measurement period adjustments		2		—		2
Foreign currency translation		2		1		3
Balance as of June 30, 2021	$	1,989	$	261	$	2,250

	Successor
	Employer		Professional
	Solutions		Services		Total
Balance as of July 1, 2021	$	3,309	$	74	$	3,383
Acquisitions		255		—		255
Balance as of December 31, 2021	$	3,564	$	74	$	3,638

Schedule of Intangible Assets by Asset Class

Intangible assets by asset class are as follows (in millions):


	Successor						Predecessor
	December 31, 2021						December 31, 2020
	Gross				Net		Gross
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Net Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Intangible assets:
Customer-related and contract based intangibles	$	3,662	$	119	$	3,543	$	2,078	$	486	$	1,592
Technology related intangibles		254		20		234		316		180		136
Trade name (finite life)		407		14		393		8		6		2
Trade name (indefinite life)		—		—		—		3		—		3
Total	$	4,323	$	153	$	4,170	$	2,405	$	672	$	1,733

Schedule of Intangible Asset Net Carrying Amount and Weighted Average Remaining Useful Lives

The following table reflects intangible asset net carrying amount and weighted average remaining useful lives as of December 31, 2021 (in millions, except for years):


	Net		Weighted Average
	Carrying		Remaining
	Amount		Useful Lives
Intangible assets at December 31, 2021:
Customer-related and contract based intangibles	$	3,543		14.5
Technology related intangibles		234		5.5
Trade name (finite life)		393		14.3
Total	$	4,170

Schedule of Intangible Assets Expected Annual Amortization Expense

Subsequent to December 31, 2021, the annual amortization expense is expected to be as follows (in millions):


	Customer-Related		Technology		Trade
	and Contract Based		Related		Name
	Intangibles		Intangibles		Intangible
2022	$	245	$	43	$	28
2023		245		43		28
2024		245		43		28
2025		245		43		28
2026		245		42		27
Thereafter		2,318		20		254
Total amortization expense	$	3,543	$	234	$	393