Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 63

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 63
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 headcount in whole numbers)20242023Severance and related costs(1)$21 $29 Data center consolidation costs5 9 Termination, insourcing and asset impairment costs(2)16 24 Total Net Current Period Charges42 62 Consulting and other costs4 — Restructuring and Related Costs$46 $62 Reduction in headcount(3)600 700 

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(1)2023 includes costs related to the closure of one of our Commercial segment operations in Europe.

(2)Includes costs in 2024 and 2023 incurred for disengagement from a significant IT outsourcing provider.

(3)Relates to approximate headcount reductions worldwide associated with Severance and related costs.

Refer to Note 8 – Restructuring Programs and Related Costs to the Consolidated Financial Statements for additional information regarding our restructuring programs.

Interest Expense

Interest expense represents interest on long-term debt and the amortization of debt issuance costs. The decrease in Interest expense for 2024, compared to the prior year, was driven primarily by lower debt balances as we utilized proceeds from divestitures closed in 2024 to voluntarily prepay all of our Term Loan B and a portion of our Term Loan A. Refer to Note 10 – Debt to the Consolidated Financial Statements for additional information.

CNDT 2024 Annual Report34

Goodwill Impairment

The goodwill impairment for 2024 is related to the write-down of the Transportation reporting unit's goodwill arising from the annual goodwill impairment test. The impairment in 2023 is related to the write-down of the carrying value of the Commercial reporting unit. This resulted from the evaluation of goodwill triggered by entering into the Custodial Transfer and Asset Purchase Agreement to transfer our BenefitWallet Portfolio. Refer to Note 7 – Goodwill and Intangible Assets, Net to the Consolidated Financial Statements for additional information on these impairments.

(Gain) Loss on Divestitures and Transaction Costs

Our 2024 divestitures resulted in gains of $721 million. Additionally, we recorded a $3 million gain adjustment related to a prior year divestiture following the partial settlement of the Skyview matter. This financial statement line also includes professional fees and other costs associated with both consummated and non-consummated transactions totaling $30 million and $10 million in 2024 and 2023, respectively. The 2024 amount also includes a $2 million reimbursement of previously incurred legal fees related to