Company: CNDT
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001677703-25-000152
Chunk: 97

Company: CONDUENT Inc
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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 right to consideration becomes unconditional. Contract assets are the Company’s rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Contract assets are transferred to Accounts receivable, net when the rights to consideration become unconditional. Contract liabilities include payments received in advance of performance under the contract, which are realized when the associated revenue is recognized under the contract. 

CNDT Q3 2025 Form 10-Q10

The following table provides information about significant movements in contract assets (current and long-term) for the nine months ended September 30, 2025 and 2024:(in millions)20252024Beginning balance$135 $190 Additional contract assets recognized149 124 Billed and transferred to Accounts receivable and other(116)(158)Ending balance(1)$168 $156 ___(1) Of which $9 million and $4 million are included in Other long-term assets as of September 30, 2025 and 2024, respectively. The following table provides information about significant movements in contract liabilities balances (current and long-term) for the nine months ended September 30, 2025 and 2024:(in millions)20252024Beginning balance$155 $146 Additional contract liabilities recorded159 205 Revenue recognized related to contract liabilities and other(1)(169)(183)Ending balance(2)$145 $168 ___(1) Of which $79 million and $82 million were recognized during the nine months ended September 30, 2025 and 2024, respectively, that related to the Company's contract liabilities as of December 31, 2024 and 2023, respectively. (2) Of which $63 million and $53 million are included in Other long-term liabilities as of September 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 September 30, 2025 was approximately $1.4 billion. The Company expects to recognize approximately 73% 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