Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 115

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 115
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, outsourcing certain internal functions and engaging in other actions designed to reduce its cost structure and improve productivity. The implementation of the Company's operational efficiency improvement initiatives has reduced the Company's real estate footprint across all geographies and segments resulting in lease right-of-use asset impairments and other related costs. Also included in Restructuring and related costs are incremental, non-recurring costs related to the consolidation of the Company's data centers, which totaled $5 million, $9 million and $10 million for the years ended December 31, 2024, 2023 and 2022, respectively. Management continues to evaluate the Company's businesses, and in the future, there may be additional provisions for new plan initiatives and/or changes in previously recorded estimates as payments are made, or actions are completed.Costs associated with restructuring, including employee severance and lease termination costs, are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility. In those geographies where the Company has either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, it recognizes employee severance costs when they are both probable and reasonably estimable. Asset impairment costs related to the reduction of the Company's real estate footprint include impairment of operating lease right-of-use ("ROU") assets and associated leasehold improvements.A summary of the Company's restructuring program activity during the two years ended December 31, 2024 is as follows:(in millions)Severance and Related CostsTermination and Other Costs(2)Asset ImpairmentsTotalBalance at December 31, 2022$10 $— $— $10 Provision31 22 11 64 Changes in estimates(2)— — (2)Total Net Current Period Charges(1)29 22 11 62 Charges against reserve and currency(30)(21)(11)(62)Balance at December 31, 2023$9 $1 $— $10 Provision22 19 6 47 Changes in estimates(1)— — (1)Total Net Current Period Charges(1)21 19 6 46 Charges against reserve and currency(17)(18)(6)(41)Balance at December 31, 2024$13 $2 $— $15 __________(1)Represents amounts recognized within the Consolidated Statements of