Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 111

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 111
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 $102 million and $111 million, respectively.Internal Use and Product SoftwareInternal use and Product software are included in Other long-term assets on the Company's Consolidated Balance Sheets. Additions to Internal use and Product software as well as year-end balances for these assets were as follows:(in millions)Year Ended December 31,Additions to:202420232022Internal use software$28 $42 $61 Product software14 21 39 December 31,(in millions)20242023Internal use software, at cost$528 $612 Accumulated amortization(421)(469)Internal use software, net$107 $143 Product software, at cost$226 $219 Accumulated amortization(154)(127)Product software, net$72 $92 The useful lives of the Company's Internal use software and enhancements range from one to five years. Product software is amortized over the shorter of: (i) four years; (ii) the expected economic life of the product; or (iii) the term of the associated customer contract. Amortization expense for Internal use and Product software for the years ended December 31, 2024, 2023 and 2022 was $79 million, $114 million and $71 million, respectively. The 2023 amount includes the write-off of capitalized software costs totaling $25 million, stemming from management’s decision to abandon an internal use software product and a decision by a customer to not implement a product software solution.

CNDT 2024 Annual Report71

Note 6 - Leases

The Company has entered into non-cancelable operating and finance leases primarily for office space and equipment with lease terms that range from less than one year to 21 years.The components of lease costs were as follows:Year Ended December 31,(in millions)202420232022Finance Lease Costs:Amortization of right of use assets$12 $12 $10 Interest on lease liabilities3 2 1 Total Finance Lease Costs$15 $14 $11 Operating lease costs:Base rent$67 $75 $79 Short-term lease costs1 2 4 Variable lease costs(1)21 23 24 Sublease income(1)— (1)Total Operating Lease Costs$88 $100 $106 __________(1)Primarily related to taxes, insurance and common area and other maintenance costs for real