Company: CNDT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001677703-25-000076
Chunk: 83

Company: CONDUENT Inc
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 83
---
59 76 62 197 Rent lease and maintenance expense34 17 10 61 Other operating expense1 2 1 4 Depreciation and amortization expense26 13 6 45 Segment expenses$400 $216 $150 $766 Segment profit (loss)$19 $42 $(6)$55 __________(1)    Total excludes Divestitures and Unallocated Costs.Other operating expense shown above is primarily comprised of third-party legal fees and other miscellaneous expenses.

CNDT Q1 2025 Form 10-Q12

The following is a reconciliation of Segment profit (loss) to Income (loss) before income taxes:(in millions)Three Months Ended March 31,20252024Segment Profit (Loss)$42 $55 Reconciling items:Divestitures profit(1)— 24 Unallocated costs(2)(78)(72)Amortization of acquired intangible assets— (1)Restructuring and related costs(4)(9)Interest expense(12)(27)Loss on extinguishment of debt— (2)Gain (loss) on divestitures and transaction costs, net(3)161 Litigation (settlements) recoveries, net(2)(4)Other income (expenses), net1 2 Income (Loss) Before Income Taxes$(56)$127 (1)    Divestitures profit is Income (loss) before income taxes.(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 2025 period are $25 million of Direct response costs related to the January 2025 Cyber Incident and a $9 million insurance recovery related to the 2019 Texas Matter. Refer to Note 3 – Revenue for additional information on disaggregated revenues of the reportable segments.

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