Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 113

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 113
---
 have not been recognized on the Company's Consolidated Balance Sheet. These leases are expected to commence in 2025 with average lease terms of 3 years, 7 years and 5 years, respectively.

CNDT 2024 Annual Report73

Note 7 - Goodwill and Intangible Assets, Net

GoodwillThe following table presents the changes in the carrying amount of goodwill, by reportable segment:(in millions)CommercialGovernmentTransportationTotalBalance at December 31, 2022$287 $611 $57 $955 Foreign currency translation— 12 6 18 Impairment(287)— — (287)Assets Held For Sale— — (35)(35)Balance at December 31, 2023$— $623 $28 $651 Foreign currency translation— (14)— (14)Impairment— — (28)(28)Balance at December 31, 2024$— $609 $— $609 Gross goodwill$2,198 $1,363 $608 $4,169 Accumulated impairment(2,198)(754)(608)(3,560)Balance at December 31, 2024$— $609 $— $609 2024 Impairment Testing and Impairment ChargeThe Company performed its annual goodwill impairment test as of October 1, 2024 for the Government and Transportation reporting units. This testing did not identify any goodwill impairment for the Government reporting unit and, accordingly, no impairment charge was recorded. However, the testing identified a $28 million goodwill impairment for the Transportation reporting unit, which was primarily due to a reduction in projected cash flows from new customer contract signings and increased delivery costs. This represents a full impairment of goodwill for the Transportation reporting unit.2023 Impairment ChargeIn September 2023, the Company entered into a Custodial Transfer and Asset Purchase Agreement (the "Purchase Agreement") to transfer its BenefitWallet Portfolio, which was reported within the Company’s Commercial segment. Since the Purchase Agreement did not represent a disposition of a business, no goodwill was allocated to the BenefitWallet Portfolio related to this transaction.Consequently, the Purchase Agreement was identified as a triggering event for the Commercial reporting unit that required the Company to evaluate goodwill for impairment. This evaluation resulted in a full impairment of the Commercial reporting unit's goodwill, totaling $287 million. The impairment charge was