Company: CNDT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001677703-25-000126
Chunk: 95

Company: CONDUENT Inc
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 95
---
 to Income (loss) before income taxes:Three Months Ended June 30,Six Months Ended June 30,(in millions)2025202420252024Segment Profit (Loss)$56 $49 $98 $104 Reconciling items:Divestitures profit(1)— 8 — 32 Unallocated costs(2)(67)(71)(145)(143)Amortization of acquired intangible assets(1)(2)(1)(3)Restructuring and related costs(8)(8)(12)(17)Interest expense(12)(19)(24)(46)Loss on extinguishment of debt— (3)— (5)Gain (loss) on divestitures and transaction costs, net(4)347 (7)508 Litigation (settlements) recoveries, net— (1)(2)(5)Other income (expenses), net(2)— (1)2 Income (Loss) Before Income Taxes$(38)$300 $(94)$427 (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 six months ended June 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 Q2 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 described below. Divestiture of Casualty Claims Solutions BusinessOn May 3, 2024, the Company entered into a definitive agreement to sell the Company’s Casualty Claims Solutions business (collectively referred to as the "Casualty Disposal Group") to MedRisk, Inc. ("MedRisk"). On September 1, 2024, the sale was completed and MedRisk paid Conduent $224 million of cash consideration, subject to certain post-closing adjustments. These