Company: CNDT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001677703-25-000126
Chunk: 92

Company: CONDUENT Inc
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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 to consideration become unconditional. Unearned income includes payments received in advance of performance under the contract, which are realized when the associated revenue is recognized under the contract. The following table provides information about significant movements in contract assets (current and long-term) for the six months ended June 30, 2025 and 2024:(in millions)20252024Beginning balance$135 $190 Additional contract assets recognized71 86 Billed and transferred to Accounts receivable and other(66)(120)Ending balance(1)$140 $156 ___(1) Of which $2 million and $7 million are included in Other long-term assets as of June 30, 2025 and 2024, respectively. The following table provides information about significant movements in unearned income balances (current and long-term) for the six months ended June 30, 2025 and 2024:(in millions)20252024Beginning balance$155 $146 Additional deferral of income98 130 Revenue recognized related to deferral of income(1)(113)(124)Ending balance(2)$140 $152 ___(1) Of which $66 million and $69 million were recognized during the six months ended June 30, 2025 and 2024, respectively, that related to the Company's unearned income as of December 31, 2024 and 2023, respectively. (2) Of which $60 million and $57 million are included in Long-term unearned income as of June 30, 2025 and 2024, respectively. Transaction Price Allocated to the Remaining Performance Obligations

Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at June 30, 2025 was approximately $1.5 billion. The Company expects to recognize approximately 71% of this revenue over the next two years and the remainder thereafter. 

Note 4 – Segment Reporting

The Company's reportable segments correspond to how it organizes and manages the business, as defined by the Company's Chief Executive Officer, who is also its Chief Operating Decision Maker ("CODM"), and are aligned to the industries in which the Company's clients operate. The Company's segments involve the delivery of business process services and include service arrangements where it manages a customer's business activity or process.Divestitures includes the Company's BenefitWallet Portfolio, for which the Company completed the transfer in the second quarter of 2024,