Company: CNDT
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001677703-25-000152
Chunk: 107

Company: CONDUENT Inc
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 107
---
 which have a non-dollar functional currency, thereby reducing volatility of earnings or protecting fair values of assets and liabilities.  At September 30, 2025 and December 31, 2024, the Company had outstanding forward exchange contracts with gross notional values of $239 million and $203 million, respectively. At September 30, 2025, approximately 81% of these contracts mature within three months, 7% in three to six months, 9% in six to twelve months and 3% in greater than twelve months. Most of these foreign currency derivative contracts are designated as cash flow hedges and did not have a material impact on the Company's condensed consolidated balance sheet, income statement or cash flows for the periods presented.Refer to Note 9 – Fair Value of Financial Assets and Liabilities for additional information regarding the fair value of the Company's foreign exchange forward contracts.

Note 9 – Fair Value of Financial Assets and Liabilities

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP established a hierarchy framework to classify the fair value based on the observability of significant inputs to the measurement. The levels of the fair value hierarchy are as follows:Level 1: Fair value is determined using an unadjusted quoted price in an active market for identical assets or liabilities. Level 2: Fair value is estimated using inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

CNDT Q3 2025 Form 10-Q17

Level 3: Fair value is estimated using unobservable inputs that are significant to the fair value of the assets or liabilities. Summary of Financial Assets and Liabilities Accounted for at Fair Value on a Recurring BasisThe following table represents assets and liabilities measured at fair value on a recurring basis. The basis for the measurement at fair value in all cases was Level 2. (in millions)September 30, 2025December 31, 2024Assets:Foreign exchange contracts - forward$— $— Total Assets$— $— Liabilities:Foreign exchange contracts - forward$(2)$(2)Total Liabilities$(2)$(2)Summary of Other Financial Assets and LiabilitiesThe estimated fair values of other financial assets and liabilities were as follows: September 30, 2025December 31, 2024(in millions)CarryingAmountFairValueCarrying