Company: CNDT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001677703-25-000126
Chunk: 43

Company: CONDUENT Inc
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 $1,595 ExpensesWages and benefits$545 $215 $133 $893 Services and supplies109 147 125 381 Rent lease and maintenance expense70 33 22 125 Other operating expense2 4 2 8 Depreciation and amortization expense48 24 12 84 Segment expenses$774 $423 $294 $1,491 Segment profit (loss)$33 $80 $(9)$104 __________(1)    Total excludes Divestitures and Unallocated Costs.Other operating expense shown above is primarily comprised of third-party legal fees and other miscellaneous expenses.The following is a reconciliation of Segment profit (loss) to Income (loss) before income taxes:Three Months Ended June 30,Six Months Ended June 30,(in millions)2025202420252024Segment Profit (Loss)$56 $49 $98 $104 Reconciling items:Divestitures profit(1)— 8 — 32 Unallocated costs(2)(67)(71)(145)(143)Amortization of acquired intangible assets(1)(2)(1)(3)Restructuring and related costs(8)(8)(12)(17)Interest expense(12)(19)(24)(46)Loss on extinguishment of debt— (3)— (5)Gain (loss) on divestitures and transaction costs, net(4)347 (7)508 Litigation (settlements) recoveries, net— (1)(2)(5)Other income (expenses), net(2)— (1)2 Income (Loss) Before Income Taxes$(38)$300 $(94)$427 (1)    Divestitures profit is Income (loss) before income taxes excluding certain non-operating income and expenses.(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 three and six months ended June 30, 2025 periods are $0 million and $25 million, respectively, of Direct response costs related to the January 2025 Cyber Incident as well as a $0 million and $9 million, respectively, insurance recovery related to the 2019 Texas Matter. Refer to Note 3 – Revenue for additional information on disaggregated revenues of the report