Company: CNDT
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001677703-25-000062
Chunk: 70

Company: CONDUENT Inc
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 70
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 Standards Codification 740, which employs an annual effective tax rate method. The noted income tax effect for our non-GAAP performance measures is effectively the difference in income taxes for reported and adjusted pre-tax income calculated under the annual effective tax rate method. The tax effect of the non-GAAP adjustments was calculated based upon evaluation of the statutory tax treatment and the applicable statutory tax rate in the jurisdictions in which such charges were incurred.

#### Adjusted Revenue
We make adjustments to revenue for the following items, as an additional way of assessing certain aspects of our operations that, when viewed with the U.S. GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our on-going business:

• Divestitures for APIP Purposes. Actual 2024 Revenue from divestitures through the dates of sale is excluded and full year 2024 budgeted revenue is included.

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We provide our investors with adjusted revenue as supplemental information because we believe it offers added insight, by itself and for comparability between periods, and may also provide added insight on trends in our ongoing business.

We provide adjusted revenues as supplemental information to our presentation of reported GAAP revenue in order to facilitate additional information to our investors concerning period-to-period comparisons reflecting the impact of our divestitures.

#### Adjusted EBITDA and EBITDA Margin
We use Adjusted EBITDA and Adjusted EBITDA Margin as an additional way of assessing certain aspects of our operations that, when viewed with the U.S. GAAP results and the accompanying reconciliations to corresponding U.S. GAAP financial measures, provide a more complete understanding of our on-going business. Adjusted EBITDA represents income (loss) before interest, income taxes, depreciation and amortization and contract inducement amortization adjusted for the following items. Adjusted EBITDA margin is Adjusted EBITDA divided by adjusted revenue.

• Restructuring and related costs. Restructuring and related costs include restructuring and asset impairment charges as well as costs associated with our strategic transformation program.

• Goodwill impairment. This represents goodwill impairment charges arising from annual or interim goodwill testing.

• (Gain) loss on divestitures and transaction costs. Represents (gain) loss on divested businesses and transaction costs.

• Litigation settlements (recoveries), net. Represents settlements or recoveries for various matters subject to litigation.

• Loss on extinguishment of debt. This represents write-off related debt issuance costs related