Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 114

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 114
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 primarily driven by the Purchase Agreement and was recognized in the third quarter of 2023. The fair values of the goodwill impairment charge were estimated based on a determination of the implied fair value of goodwill, leveraging the results from the Income Approach and Market Approach, and are designated as level 3 of the fair value hierarchy.In connection with the Commercial reporting unit impairment assessment, the Company first performed a recoverability assessment of long-lived assets and concluded that such assets were not impaired.2022 Impairment ChargeIn the fourth quarter of 2022, the Commercial reporting unit experienced lower than expected new customer contract signings, and an unexpected softening of the future business pipeline for certain solutions. Management believed these were driven by macroeconomic conditions present in the fourth quarter of 2022. The combination of these factors led management, in December 2022, to review the Commercial reporting unit and further evaluate the portfolio. These factors triggered the need for management to perform an interim goodwill impairment assessment for this reporting unit as of December 31, 2022, which resulted in a pre-tax impairment charge of $358 million.

CNDT 2024 Annual Report74

Intangible Assets, Net Net intangible assets were $14 million at December 31, 2024, substantially all of which is recorded in the Company's Commercial segment. Intangible assets were comprised exclusively of Customer relationships as follows: December 31, 2024December 31, 2023(in millions, except years)Weighted AverageAmortizationGrossCarryingAmountAccumulatedAmortizationNetAmountGrossCarryingAmountAccumulatedAmortizationNetAmountTotal Intangible Assets14 years$36 $22 $14 $85 $53 $32 In 2024, intangible assets with a net book value of $13 million were divested in connection with the sale of the Casualty Claims Solutions business. Amortization expense related to intangible assets was $5 million, $7 million and $13 million for the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense is expected to approximate $3 million in 2025, $2 million in 2026, $2 million in 2027, $1 million in 2028 and $1 million in 2029.

Note 8 – Restructuring Programs and Related Costs

The Company engages in a series of restructuring programs related to downsizing its employee base, exiting certain activities