Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 123

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 123
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)%— %— %Impairments(2)0.9 %(12.2)%(39.8)%Unrecognized tax benefits1.7 %0.4 %6.6 %Audit and other tax adjustments0.9 %(1.4)%(1.2)%Excess tax benefits— %— %0.6 %Other(3)(0.3)%(0.2)%(0.4)%Effective Income Tax Rate15.5 %10.7 %(43.9)% _______________(1)    The “Foreign rate differential adjusted for U.S. taxation of foreign profits” includes the U.S. tax, net of foreign tax credits, associated with actual and deemed repatriations of earnings from our non-U.S. subsidiaries. (2)    Impairment represents adjustments for the non-deductible component of goodwill in 2024, 2023 and 2022.(3)    In 2024, 2023 and 2022, the "Other" line includes immaterial reconciling items. As such, the Company believes it is appropriate for these items to remain in "Other".On a consolidated basis, the Company paid $44 million, $18 million and $53 million in combined income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2024, 2023 and 2022, respectively. Unrecognized Tax Benefits and Audit Resolutions The Company recognizes tax liabilities when, despite its belief that its tax return positions are supportable, the Company believes that certain positions may not be fully sustained upon review by tax authorities. Each period the Company assesses uncertain tax positions for recognition, measurement and effective settlement. Benefits from uncertain tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. Where the Company has determined that its tax return filing position does not satisfy the more-likely-than-not recognition threshold, the Company has recorded no tax benefits.The Company is also subject to ongoing tax examinations in numerous jurisdictions due to the extensive geographical scope of its operations. The Company's ongoing assessments of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can increase or decrease the Company's effective tax rate, as well as impact its operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. In the fourth quarter of 2024, the Company