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

Lease Obligations (Tables)

12 Months Ended

Dec. 31, 2021

The components of lease expense were as follows (in millions):


	Successor			Predecessor
	Six Months Ended			Six Months Ended			Year Ended
	December 31,			June 30,			December 31,
	2021			2021			2020			2019
Operating lease cost	$	14		$	16		$	40		$	27
Finance lease cost:
Amortization of leased assets		12			13			21			15
Interest of lease liabilities		2			2			4			4
Variable and short-term lease cost		3			3			6			8
Sublease income		(3	)		(4	)		(6	)		(8	)
Total lease cost	$	28		$	30		$	65		$	46

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):


	Successor			Predecessor
	December 31,			December 31,
	2021			2020
Operating Leases
Operating lease right-of-use assets	$	120		$	129

Current operating lease liabilities		44			41
Noncurrent operating lease liabilities		139			155
Total operating lease liabilities	$	183		$	196

Finance Leases
Fixed assets, net	$	62		$	83

Current finance lease liabilities		27			28
Noncurrent finance lease liabilities		34			59
Total finance lease liabilities	$	61		$	87

Weighted Average Remaining Lease Term (in years)
Operating leases		5.8			6.6
Finance leases		2.7			3.5

Weighted Average Discount Rate
Operating leases		4.3	%		5.6	%
Finance leases		4.4	%		4.4	%

Supplemental cash flow and other information related to leases was as follows (in millions):


	Successor		Predecessor
	Six Months Ended		Six Months Ended		Year Ended
	December 31,		June 30,		December 31,
	2021		2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	27	$	22	$	42	$	36
Operating cash flows from finance leases		2		2		4		4
Financing cash flows from finance leases		14		17		24		13

Right-of use assets obtained in exchange for lease obligations
Operating leases	$	2	$	10	$	26	$	58
Finance leases		2		2		62		24

Future lease payments for lease obligations with initial terms in excess of one year as of December 31, 2021 are as follows (in millions):


	Finance Leases			Operating Leases
2022	$	23		$	38
2023		22			34
2024		16			33
2025		4			22
2026		—			17
Thereafter		—			46
Total lease payments		65			190
Less: amount representing interest		(4	)		(27	)
Total lease obligations, net		61			163
Less: current portion of lease obligations, net		(27	)		(37	)
Total long-term portion of lease obligations, net	$	34		$	126