Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 126

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 126
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 the ordinary course of operations. Although realization is not assured, the Company has concluded that it is more-likely-than-not that the deferred tax assets, for which a valuation allowance was determined to be unnecessary, will be realized in the ordinary course of operations based on the available positive and negative evidence, including scheduling of deferred tax liabilities and projected income from operating activities. The amount of the net deferred tax assets considered realizable, however, could be reduced in the near term if actual future income or income tax rates are lower than estimated, or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences. At December 31, 2024, the Company had tax credit carryforwards of $10 million available to offset future income taxes, which will expire between 2027 and 2043, if not utilized.The following table presents the Company's worldwide net operating loss carryforwards ("NOLs") as of December 31, 2024 and 2023:December 31, 2024December 31, 2023(in millions)GrossTax EffectedGrossTax EffectedU.S Federal NOLs limited by Section 382 of the Tax Code$2 $— $3 $1 U.S. State NOLs255 13 367 18 Foreign NOLs303 71 308 79 Total$560 $84 $678 $98 

CNDT 2024 Annual Report83

The Company has $560 million of gross net operating loss carryforwards for income tax purposes including $439 million that will expire between 2025 and 2044, if not utilized, and $121 million available to offset future taxable income indefinitely. The Company had $7 million of foreign capital losses available to offset future capital gains income indefinitely. The Company does not expect to receive a tax benefit for the majority of the NOLs presented above, as valuation allowances have been recorded against most of the state and foreign NOLs and capital losses.

Note 15 – Contingencies and Litigation

As more fully discussed below, the Company is involved in a variety of claims, lawsuits, investigations and proceedings concerning a variety of matters, including: governmental entity contracting, servicing and procurement law; intellectual property law; employment law; commercial and contracts law; the Employee Retirement Income Security Act ("ERISA"); and other laws and regulations. The Company determines whether an estimated loss from a contingency should be accrued by assessing