Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 101

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 101
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 contracts. These inducement payments are capitalized and amortized as a reduction of revenue over the term of the customer contract.The Company also capitalizes costs incurred to fulfill its contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract and (iii) are expected to be recovered through revenue generated under the contract. These costs primarily 

CNDT 2024 Annual Report62

consist of set-up and transition activities and are included in Deferred contract costs, net within Other long-term assets. Contract fulfillment costs are amortized within Depreciation and amortization on a systematic basis over the expected period of benefit as the Company satisfies its performance obligations by transferring services to the customer.  Deferred contract costs are periodically reviewed for impairment.Refer to Note 2 – Revenue for further discussion.

Note 2 – Revenue

Disaggregation of RevenueIn 2024, revenue from the BenefitWallet Portfolio and the Casualty Claims Solutions business were reclassified to the Divestitures segment from the Commercial segment. In addition, in 2024, revenue from the Curbside Management and Public Safety businesses was reclassified to the Divestitures segment from the Transportation segment. All prior periods presented have been recast to reflect these changes. The following table provides information about disaggregated revenue by major service offering and reportable segment and the timing of revenue recognition. Refer to Note 3 – Segment Reporting for additional information on the Company's reportable segments. Year Ended December 31,(in millions)202420232022Commercial:Customer experience management$552 $619 $636 Business operations solutions536 516 553 Healthcare claims and administration solutions216 211 210 Human capital solutions302 322 370 Total Commercial1,606 1,668 1,769 Government:Government healthcare solutions551 605 589 Government services solutions433 489 561 Total Government984 1,094 1,150 Transportation:Road usage charging & management solutions244 317 328 Transit solutions341 233 226 Commercial vehicles1 8 8 Total Transportation586 558 562 Divestitures180 402 377 Total Consolidated Revenue$3,356 $3,722 $3,858 Timing of Revenue Recognition:Point in time$106 $107 $115 Over time3,250 3,615 3,743