Company: CNDT
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001677703-25-000152
Chunk: 100

Company: CONDUENT Inc
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 4 4 10 Depreciation and amortization expense67 34 18 119 Segment expenses$1,144 $628 $441 $2,213 Segment profit (loss)$48 $130 $(15)$163 __________(1)    Total excludes Divestitures and Unallocated Costs.Other operating expense shown above is primarily comprised of third-party legal fees and other miscellaneous expenses.The following is a reconciliation of Segment profit (loss) to Income (loss) before income taxes:Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Segment Profit (Loss)$62 $59 $160 $163 Reconciling items:Divestitures profit(1)— 3 — 35 Unallocated costs(2)(70)(70)(215)(213)Amortization of acquired intangible assets(1)(1)(2)(4)Restructuring and related costs(12)(4)(24)(21)Interest expense(12)(16)(36)(62)Loss on extinguishment of debt(1)(1)(1)(6)Gain (loss) on divestitures and transaction costs, net(1)188 (8)696 Litigation (settlements) recoveries, net— (1)(2)(6)Other income (expenses), net(3)2 (4)4 Income (Loss) Before Income Taxes$(38)$159 $(132)$586 (1)    Divestitures profit is Income (loss) before income taxes excluding certain non-operating income and expenses.(2)    Unallocated Costs includes IT infrastructure costs that are shared by multiple reportable segments, enterprise application costs and certain corporate overhead expenses not directly attributable or allocated to the reportable segments.  Included in the three and nine months ended September 30, 2025 periods are $0 million and $25 million, respectively, of Direct response costs related to the January 2025 Cyber Incident as well as a $0 million and $9 million, respectively, insurance recovery related to the 2019 Texas Matter. Refer to Note 3 – Revenue for additional information on disaggregated revenues of the reportable segments.

CNDT Q3 2025 Form 10-Q13

Note 5 – Divestitures

The Company entered into various agreements to transfer or sell certain portfolios and businesses in 2024. Each of these transactions is