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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 10-Q
_______________  
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                        to
Commission File Number 001-37817
conduentlogoq2a05.jpg
CONDUENT INCORPORATED
(Exact Name of Registrant as specified in its charter)
New York81-2983623
(State or other jurisdiction of
incorporation or organization)		(IRS Employer
Identification No.)
100 Campus Drive, Suite 200,
Florham Park,New Jersey07932
(Address of principal executive offices)(Zip Code)
(844) 663-2638
(Registrant’s telephone number, including area code)
_________________________________________________  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueCNDTNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐Non-accelerated filer☐Small reporting company☐Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒
Class Outstanding at October 31, 2024
Common Stock,$0.01 par value 159,889,601
CNDT Q3 2024 Form 10-Q


FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q ("Form 10-Q") and any exhibits to this Form 10-Q may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Litigation Reform Act"). These forward-looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available. The words “anticipate,” “believe,” “estimate,” “expect,” "plan," “intend,” “will,” “aim,” “should,” “could,” “forecast,” “target,” “may,” "continue to," "endeavor," "if,” “growing,” “projected,” “potential,” “likely,” "see," "ahead," "further," "going forward," "on the horizon," "in the process of," and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements and could materially adversely affect our business, financial condition, results of operations, cash flows and liquidity.
Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: risks related to recently completed divestitures including the (i) transfer of the Company’s BenefitWallet’s health savings account, medical savings account and flexible spending account portfolio (the “BenefitWallet Transfer”), (ii) the sale of the Company’s Curbside Management and Public Safety Solutions businesses and (iii) the sale of the Company's Casualty Claims Solutions business, including but not limited to the Company’s ability to realize the benefits anticipated from such transactions, unexpected costs, liabilities or delays in connection with such transactions, and the significant transaction costs associated with such transactions; government appropriations and termination rights contained in our government contracts; the competitiveness of the markets in which we operate and our ability to renew commercial and government contracts, including contracts awarded through competitive bidding processes; our ability to recover capital and other investments in connection with our contracts; risk and impact of geopolitical events and increasing geopolitical tensions (such as the wars in the Ukraine and the Middle East), macroeconomic conditions, natural disasters and other factors in a particular country or region on our workforce, customers and vendors; our reliance on third-party providers; our ability to deliver on our contractual obligations properly and on time; changes in interest in outsourced business process services; claims of infringement of third-party intellectual property rights; our ability to estimate the scope of work or the costs of performance in our contracts; the loss of key senior management and our ability to attract and retain necessary technical personnel and qualified subcontractors; our failure to develop new service offerings and protect our intellectual property rights; our ability to modernize our information technology infrastructure and consolidate data centers; expectations relating to environmental, social and governance considerations; utilization of our stock repurchase program; the failure to comply with laws relating to individually identifiable information and personal health information; the failure to comply with laws relating to processing certain financial transactions, including payment card transactions and debit or credit card transactions; breaches of our information systems or security systems or any service interruptions; our ability to comply with data security standards; developments in various contingent liabilities that are not reflected on our balance sheet, including those arising as a result of being involved in a variety of claims, lawsuits, investigations and proceedings; risks related to divestitures and acquisitions; risk and impact of potential goodwill and other asset impairments; our significant indebtedness and the terms of such indebtedness; our failure to obtain or maintain a satisfactory credit rating and financial performance; our ability to obtain adequate pricing for our services and to improve our cost structure; our ability to collect our receivables, including those for unbilled services; a decline in revenues from, or a loss of, or a reduction in business from or failure of significant clients; fluctuations in our non-recurring revenue; increases in the cost of voice and data services or significant interruptions in such services; our ability to receive dividends and other payments from our subsidiaries; and other factors that are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management's Discussion and Analysis of Financial Condition and Results of Operations” section and other sections of this Form 10-Q as well as in our 2023 Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q and Current Report on Form 8-K filed (or furnished) with the Securities and Exchange Commission (the "SEC"). Any forward-looking statements made by us in this Form 10-Q speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
CNDT Q3 2024 Form 10-Q
1
CONDUENT INCORPORATED

FORM 10-Q

September 30, 2024
TABLE OF CONTENTS
 
 Page

For additional information about Conduent Incorporated and access to our Annual Reports to Shareholders and SEC filings, free of charge, please visit our website at https://investor.conduent.com/. Any information on or linked from the website is not incorporated by reference into this Form 10-Q.
CNDT Q3 2024 Form 10-Q
2

ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED)

CONDUENT INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions, except per share data)2024202320242023
Revenue$807 $932 $2,556 $2,769 
Operating Costs and Expenses
Cost of services (excluding depreciation and amortization)656 724 2,068 2,148 
Selling, general and administrative (excluding depreciation and amortization)115 115 346 344 
Research and development (excluding depreciation and amortization)1 2 4 5 
Depreciation and amortization44 81 157 199 
Restructuring and related costs4 7 21 49 
Interest expense16 28 62 82 
Goodwill impairment— 287 — 287 
(Gain) loss on divestitures and transaction costs, net(188)3 (696)8 
Litigation settlements (recoveries), net1 — 6 (22)
Loss on extinguishment of debt1 — 6 — 
Other (income) expenses, net(2)(2)(4)(3)
Total Operating Costs and Expenses648 1,245 1,970 3,097 
Income (Loss) Before Income Taxes159 (313)586 (328)
Income tax expense (benefit)36 (24)148 (26)
Net Income (Loss)$123 $(289)$438 $(302)
Net Income (Loss) per Share:
Basic$0.75 $(1.34)$2.28 $(1.42)
Diluted$0.72 $(1.34)$2.22 $(1.42)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

CNDT Q3 2024 Form 10-Q
3
CONDUENT INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Net Income (Loss)$123 $(289)$438 $(302)
Other Comprehensive Income (Loss), Net(1)
Currency translation adjustments, net13 (18)(14)3 
Unrecognized gains (losses), net1 (1)— — 
Other Comprehensive Income (Loss), Net14 (19)(14)3 
Comprehensive Income (Loss), Net$137 $(308)$424 $(299)
__________
(1)All amounts are net of tax. Tax effects were immaterial.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.



CNDT Q3 2024 Form 10-Q
4
CONDUENT INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions, except share data in thousands)September 30, 2024December 31, 2023
Assets
Cash and cash equivalents$393 $498 
Accounts receivable, net528 559 
Assets held for sale— 180 
Contract assets152 178 
Other current assets372 240 
Total current assets1,445 1,655 
Land, buildings and equipment, net174 197 
Operating lease right-of-use assets174 191 
Intangible assets, net15 32 
Goodwill642 651 
Other long-term assets391 436 
Total Assets$2,841 $3,162 
Liabilities and Equity
Current portion of long-term debt$26 $34 
Accounts payable133 174 
Accrued compensation and benefits costs193 183 
Unearned income115 91 
Liabilities held for sale— 58 
Other current liabilities360 328 
Total current liabilities827 868 
Long-term debt718 1,248 
Deferred taxes54 30 
Operating lease liabilities141 157 
Other long-term liabilities78 84 
Total Liabilities1,818 2,387 
Contingencies (See Note 12)
Series A convertible preferred stock142 142 
Common stock2 2 
Treasury stock, at cost(210)(27)
Additional paid-in capital3,952 3,938 
Retained earnings (deficit)(2,418)(2,849)
Accumulated other comprehensive loss(449)(435)
Total Conduent Inc. Equity877 629 
Noncontrolling Interest4 4 
Total Equity881 633 
Total Liabilities and Equity$2,841 $3,162 
Shares of common stock issued and outstanding159,890 211,509 
Shares of series A convertible preferred stock issued and outstanding120 120 
Shares of common stock held in treasury60,868 8,841 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
 
CNDT Q3 2024 Form 10-Q
5
CONDUENT INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Nine Months Ended
September 30,
(in millions)20242023
Cash Flows from Operating Activities:
Net income (loss)$438 $(302)
Adjustments required to reconcile net income (loss) to cash flows from operating activities:
Depreciation and amortization157 199 
Contract inducement amortization2 3 
Deferred income taxes23 (23)
Goodwill impairment— 287 
Amortization of debt financing costs3 3 
Loss on extinguishment of debt6 — 
(Gain) loss on divestitures and sales of fixed assets, net(727)— 
Stock-based compensation14 13 
Changes in operating assets and liabilities:
Accounts receivable6 19 
Other current and long-term assets(86)(115)
Accounts payable and accrued compensation and benefits costs(17)(55)
Other current and long-term liabilities(12)(36)
Net change in income tax assets and liabilities102 (26)
Net cash provided by (used in) operating activities(91)(33)
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment(39)(33)
Cost of additions to internal use software(23)(31)
Proceeds from divestitures823 — 
Net cash provided by (used in) investing activities761 (64)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility80 — 
Payments on revolving credit facility(80)— 
Payments on debt(587)(30)
Treasury stock purchases(182)(7)
Taxes paid for settlement of stock-based compensation(5)(7)
Dividends paid on preferred stock(7)(7)
Contribution from noncontrolling interest— 3 
Net cash provided by (used in) financing activities(781)(48)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(4)2 
Increase (decrease) in cash, cash equivalents and restricted cash(115)(143)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period519 598 
Cash, Cash Equivalents and Restricted Cash at End of period(1)
$404 $455 
 ___________
(1)Includes $11 million and $4 million of restricted cash as of September 30, 2024 and 2023, respectively, that were included in Other current assets on the respective Condensed Consolidated Balance Sheets.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
CNDT Q3 2024 Form 10-Q
6
CONDUENT INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
Three Months Ended September 30, 2024
(in millions)Common StockTreasury StockAdditional Paid-in CapitalRetained Earnings (Deficit)
AOCL(1)
Non-controlling InterestShareholders'
Equity
Balance at June 30, 2024$2 $(196)$3,947 $(2,539)$(463)$4 $755 
Dividends - preferred stock, $20/share
— — — (2)— — (2)
Stock incentive plans, net— — 5 — — — 5 
Treasury stock purchases— (14)— — — (14)
Contribution from noncontrolling interest— — — — — — — 
Comprehensive Income (Loss):
Net Income (Loss)— — — 123 — — 123 
Other comprehensive income (loss), net— — — — 14 — 14 
Total Comprehensive Income (Loss), Net— — — 123 14 — 137 
Balance at September 30, 2024$2 $(210)$3,952 $(2,418)$(449)$4 $881 
Three Months Ended September 30, 2023
(in millions)Common StockTreasury StockAdditional Paid-in CapitalRetained Earnings (Deficit)
AOCL(1)
Non-controlling InterestShareholders'
Equity
Balance at June 30, 2023$2 $(1)$3,931 $(2,561)$(444)$— $927 
Dividends - preferred stock, $20/share
— — — (2)— — (2)
Stock incentive plans, net— — 6 — — — 6 
Treasury stock purchases— (6)— — — — (6)
Contribution from noncontrolling interest— — — — — 3 3 
Comprehensive Income (Loss):
Net Income (Loss)— — — (289)— — (289)
Other comprehensive income (loss), net— — — — (19)— (19)
Total Comprehensive Income (Loss), Net— — — (289)(19)— (308)
Balance at September 30, 2023$2 $(7)$3,937 $(2,852)$(463)$3 $620 
Nine Months Ended September 30, 2024
(in millions)Common StockTreasury StockAdditional Paid-in CapitalRetained Earnings (Deficit)
AOCL(1)
Non-controlling InterestShareholders'
Equity
Balance at December 31, 2023$2 $(27)$3,938 $(2,849)$(435)$4 $633 
Dividends - preferred stock, $60/share
— — — (7)— — (7)
Stock incentive plans, net— — 14 — — — 14 
Treasury stock purchases— (183)— — — — (183)
Contribution from noncontrolling interest— — — — — — — 
Comprehensive Income (Loss):
Net Income (Loss)— — — 438 — — 438 
Other comprehensive income (loss), net— — — — (14)— (14)
Total Comprehensive Income (Loss), Net— — — 438 (14)— 424 
Balance at September 30, 2024$2 $(210)$3,952 $(2,418)$(449)$4 $881 
Nine Months Ended September 30, 2023
(in millions)Common StockTreasury StockAdditional Paid-in CapitalRetained Earnings (Deficit)
AOCL(1)
Non-controlling InterestShareholders'
Equity
Balance at December 31, 2022$2 $— $3,924 $(2,543)$(466)$— $917 
Dividends - preferred stock, $60/share
— — — (7)— — (7)
Stock incentive plans, net— — 13 — — — 13 
Treasury stock purchases— (7)— — — — (7)
Contribution from noncontrolling interest— — — — — 3 3 
Comprehensive Income (Loss):
Net Income (Loss)— — — (302)— — (302)
Other comprehensive income (loss), net— — — — 3 — 3 
Total Comprehensive Income (Loss), Net— — — (302)3 — (299)
Balance at September 30, 2023$2 $(7)$3,937 $(2,852)$(463)$3 $620 
 ___________
(1)AOCL - Accumulated other comprehensive loss. Refer to Note 11 – Accumulated Other Comprehensive Loss for the components of AOCL.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
CNDT Q3 2024 Form 10-Q
7

Note 1 – Basis of Presentation
References herein to “we,” “us,” “our,” the “Company” and “Conduent” refer to Conduent Incorporated and its consolidated subsidiaries unless the context suggests otherwise.
Description of Business
Conduent Incorporated is a New York corporation, organized in 2016. Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 55,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs.
Basis of Presentation
The unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. The year-end Condensed Consolidated Balance Sheet was derived from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position, results of operations and cash flows have been made. These adjustments consist of normal recurring items. The interim results of operations are not necessarily indicative of the results of the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
In the first quarter of 2023, the Company identified an error and recorded an out-of-period adjustment to correct the recognition of revenue on a Government segment contract that originated in 2020 and impacted all quarterly periods through December 31, 2022. This adjustment resulted in a reduction to revenue and income (loss) before income taxes of $7 million and a corresponding decrease to accounts receivable of $1 million and an increase to other current liabilities of $6 million in the first quarter of 2023. The Company evaluated the impact of the out-of-period adjustment and concluded it was not material to any previously issued interim or annual consolidated financial statements and the adjustment was not material to the year ending December 31, 2023.
The Company has evaluated subsequent events through November 6, 2024, and no material subsequent events were identified.
Use of Estimates
Preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, the Company evaluates its estimates, including those related to fair values of financial instruments, goodwill and intangible assets, income taxes and contingent liabilities, among others. The Company bases its estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Summary of Significant Accounting Policies
The Company's significant accounting policies are described in Note 1 – Basis of Presentation and Summary of Significant Accounting Policies in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
During 2024, there have been no changes to the Company's significant accounting policies as described therein.
CNDT Q3 2024 Form 10-Q
8
Note 2 – Recent Accounting Pronouncements
New Accounting Standards Adopted
The Company has not adopted any new accounting standards in 2024 that had a material impact on its Consolidated Financial Statements.
New Accounting Standards To Be Adopted
Segment Reporting: In November 2023, the Financial Accounting Standards Board ("FASB") issued final guidance that expands reportable segment disclosures, particularly incremental segment expense disclosures. This guidance is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is not early adopting this guidance. The Company has gathered the data required to be disclosed upon adoption. As the guidance is disclosure-related, adoption will not have any impact on the Company's Condensed Consolidated Financial Statements.
Income Taxes: In December 2023, the FASB issued final guidance designed to improve income tax disclosures, particularly disclosures around business entities' income tax rate reconciliation and income taxes paid. The guidance requires consistent categories and greater disaggregation of information in the reconciliation of an entity's statutory tax rate to its effective tax rate and information about income taxes paid disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024. The Company is not early adopting this guidance. The Company is currently in the process of gathering the data required to be disclosed upon adoption. As the guidance is disclosure-related, adoption will not have any impact on the Company's Condensed Consolidated Financial Statements.
Disaggregation of Income Statement Expenses: In November 2024, the FASB issued final guidance designed to enhance financial reporting by requiring public business entities to disclose additional details regarding specific expense categories in the notes to the financial statements for both interim and annual periods. The new guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Company is not early adopting this guidance. The Company is currently evaluating the impact this guidance will have on its disclosures.
Note 3 – Revenue
Disaggregation of Revenue
During the second quarter of 2024, revenue from the BenefitWallet Portfolio and the Curbside Management and Public Safety businesses were reclassified to the Divestitures segment from the Commercial and Transportation segments, respectively. In addition, during the third quarter of 2024, revenue from the Casualty Claims Solutions business was reclassified to the Divestitures segment from the Commercial segment. All prior periods presented have been recast to reflect these changes. The following table provides information about disaggregated revenue by major service offering, the timing of revenue recognition and a reconciliation of the disaggregated revenue by reportable segment. Refer to Note 4 – Segment Reporting for additional information on the Company's reportable segments and Note 5 – Divestitures and Assets/Liabilities Held for Sale for additional information on the Company's divestitures.
CNDT Q3 2024 Form 10-Q
9
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Commercial:
Customer experience management$126 $144 $405 $463 
Business operations solutions131 126 400 388 
Healthcare claims and administration solutions53 49 162 155 
Human capital solutions75 78 225 239 
Total Commercial385 397 1,192 1,245 
Government:
Government healthcare solutions137 159 427 453 
Government services solutions118 131 331 371 
Total Government255 290 758 824 
Transportation:
Road usage charging & management solutions58 81 185 237 
Transit solutions83 61 240 157 
Commercial vehicles— 2 1 6 
Total Transportation141 144 426 400 
Divestitures26 101 180 300 
Total Consolidated Revenue$807 $932 $2,556 $2,769 
Timing of Revenue Recognition:
Point in time$24 $25 $80 $76 
Over time783 907 2,476 2,693 
Total Revenue$807 $932 $2,556 $2,769 

Contract Balances
The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are the Company’s rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Contract assets are transferred to Accounts receivable, net when the rights to consideration become unconditional. Unearned income includes payments received in advance of performance under the contract, which are realized when the associated revenue is recognized under the contract.
The following table provides information about the balances of the Company's contract assets, unearned income and receivables from contracts with customers:
(in millions)September 30, 2024December 31, 2023
Contract Assets (Liabilities)
Current contract assets$152 $178 
Long-term contract assets(1)
4 12 
Current unearned income(115)(91)
Long-term unearned income(2)
(53)(55)
Net Contract Assets (Liabilities)$(12)$44 
Accounts receivable, net$528 $559 
__________
(1)Presented in Other long-term assets in the Condensed Consolidated Balance Sheets.
(2)Presented in Other long-term liabilities in the Condensed Consolidated Balance Sheets.
Revenues of $12 million and $81 million were recognized during the three and nine months ended September 30, 2024, respectively, related to the Company's unearned income at December 31, 2023. Revenues of $8 million and $50 million were recognized during the three and nine months ended September 30, 2023, respectively, related to the Company's unearned income at December 31, 2022.
CNDT Q3 2024 Form 10-Q
10
The Company had no material asset impairment charges related to contract assets for the three and nine months ended September 30, 2024 or 2023.
Transaction Price Allocated to the Remaining Performance Obligations
Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at September 30, 2024 was approximately $1.5 billion. The Company expects to recognize approximately 70% of this revenue over the next two years and the remainder thereafter.
Note 4 – Segment Reporting
The Company's reportable segments correspond to how it organizes and manages the business, as defined by the Company's Chief Executive Officer, who is also the Company's Chief Operating Decision Maker (the "CODM"). The Company's segments involve the delivery of business process solutions on behalf of its clients to improve cost, performance, and end-user experiences.
As described in Note 5 – Divestitures and Assets/Liabilities Held for Sale, the Company transferred or sold certain businesses to third parties in 2024 including (i) the BenefitWallet Portfolio, (ii) the Curbside Management and Public Safety Solutions businesses, and (iii) the Casualty Claims Solutions business. Accordingly, the results of these divested businesses, previously reported within the Commercial and Transportation segments, have been reclassified to the Divestitures segment. All prior periods presented have been recast to reflect these changes.
The Company's financial performance is based on Segment Profit (Loss) for its three reportable segments (Commercial, Government and Transportation), Divestitures and Unallocated Costs. Additionally, the Company's CODM does not evaluate operating segments using discrete asset information as a significant portion of the assets is managed at the total Company level.
Commercial: The Commercial segment provides business process services and customized solutions and services to clients in a variety of industries. Across the Commercial segment, the Company operates on its clients’ behalf to deliver mission-critical solutions and services to reduce costs, improve efficiencies and enhance performance for the Company's clients and deliver better experiences for their consumers and employees.
Government: The Government segment provides government-centric business process services to U.S. federal, state and local government agencies and foreign governments for public assistance, healthcare programs and administration, transaction processing and payment services. The solutions in this segment help governments provide constituents access to and delivery of benefits, respond to changing rules for eligibility and keep pace with increasing citizen expectations.
Transportation: The Transportation segment provides systems, support, and revenue-generating solutions to government transportation agencies. The Company delivers mission-critical mobility and digital payment solutions for public transit and road usage charging that streamline operations, increase revenue and reduce congestion while creating safe, seamless travel experiences for consumers while reducing impact on the environment.
Divestitures includes the Company's BenefitWallet Portfolio, the transfer of which was completed in the second quarter of 2024, its Curbside Management and Public Safety Solutions businesses which it sold in the second quarter of 2024, and its Casualty Claims business, which it sold in the third quarter of 2024. Refer to Note 5 – Divestitures and Assets/Liabilities Held for Sale for additional information.
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.
CNDT Q3 2024 Form 10-Q
11
Selected financial information for the Company's segments was as follows:
Three Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$385 $255 $141 $26 $— $807 
Segment profit (loss)$15 $50 $(6)$3 $(70)$(8)
2023
Revenue$397 $290 $144 $101 $— $932 
Segment profit (loss)$(19)$84 $(5)$26 $(75)$11 
Nine Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$1,192 $758 $426 $180 $— $2,556 
Segment profit (loss)$48 $130 $(15)$35 $(213)$(15)
2023
Revenue$1,245 $824 $400 $300 $— $2,769 
Segment profit (loss)$13 $224 $(11)$76 $(224)$78 

(in millions)Three Months Ended
September 30,		Nine Months Ended
September 30,
Segment Profit (Loss) Reconciliation to Income (Loss) Before Income Taxes2024202320242023
Income (Loss) Before Income Taxes$159 $(313)$586 $(328)
Reconciling items:
Amortization of acquired intangible assets1 1 4 5 
Restructuring and related costs4 7 21 49 
Interest expense16 28 62 82 
Goodwill impairment— 287 — 287 
(Gain) loss on divestitures and transaction costs, net(188)3 (696)8 
Litigation settlements (recoveries), net1 — 6 (22)
Loss on extinguishment of debt1 — 6 — 
Other (income) expenses, net(2)(2)(4)(3)
Segment Profit (Loss)$(8)$11 $(15)$78 
Refer to Note 3 – Revenue for additional information on disaggregated revenues of the reportable segments.
Note 5 – Divestitures and Assets/Liabilities Held for Sale
The Company entered into various agreements to transfer or sell certain portfolios and businesses in 2023 and 2024. Each of these transactions is described below. As applicable, the assets and liabilities held for sale for each transaction are also presented below.
Transfer of BenefitWallet Portfolio
In September 2023, the Company entered into a Custodial Transfer and Asset Purchase Agreement to transfer its BenefitWallet health savings account and medical savings account portfolio (collectively, the "BenefitWallet Portfolio") to HealthEquity, Inc. ("HealthEquity") for an aggregate purchase price of $425 million (the "Purchase Price"), subject to customary purchase price adjustments. As of December 31, 2023, there were no asset or liability balances related to the BenefitWallet Portfolio that would require disclosure as assets and liabilities held for sale on the Company's Condensed Consolidated Balance Sheet.
CNDT Q3 2024 Form 10-Q
12
The BenefitWallet transfer closed in multiple tranches. The first tranche closed on March 7, 2024 with the Company receiving $164 million as the pro-rata share of the Purchase Price. On April 11, 2024, the second tranche closed and the Company received $85 million as the pro-rata share of the Purchase Price. The third and final tranche closed on May 14, 2024 and the Company received $176 million comprising the balance of the aggregate purchase price of $425 million. The Company recorded a gain on the transfer of $425 million less costs to sell of $13 million, which is recorded in Gain (loss) on divestitures and transaction costs, net. The Company recorded $101 million of income tax expense in connection with the BenefitWallet transfer.
The BenefitWallet Portfolio generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$— $30 $30 $89 
Pre-tax profit— 22 20 67 
Divestiture of Curbside Management and Public Safety Solutions Businesses
In December 2023, the Company signed a definitive agreement to sell its Curbside Management and Public Safety Solutions businesses to Modaxo, a division of Constellation Software Inc., for $230 million (plus the assumption of certain indebtedness), subject to customary purchase price adjustments. The assets and liabilities of these businesses (collectively referred to as the "Curbside Disposal Group") were reclassified as held for sale and measured at the lower of carrying value or fair value less costs to sell.
On April 30, 2024, Conduent completed the sale of this business. The Company received $174 million of cash consideration, a $50 million non-interest bearing note payable to the Company due on April 30, 2025, and other amounts receivable of $56 million related to: (i) the reimbursement for payments made by the Company related to finance lease liabilities and related costs; (ii) the reimbursement for the purchase of certain equipment made by the Company on the buyer's behalf; and (iii) customary closing date purchase price holdbacks related to net asset targets, all of which are payable in the fourth quarter of 2024. The sale is subject to customary purchase price adjustments expected to be settled in the fourth quarter of 2024. In the second quarter of 2024, the Company recorded a gain on the sale of $108 million less costs to sell of $4 million, which is recorded in Gain (loss) on divestitures and transaction costs. The Company recorded $30 million of income tax expense in connection with the divestiture.
The Curbside Disposal Group generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$— $34 $50 $101 
Pre-tax profit— 2 6 3 
Divestiture of Casualty Claims Solutions Business
On 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. On September 1, 2024, the sale was completed and MedRisk paid Conduent $224 million of cash consideration, subject to certain post-closing adjustments. These adjustments are expected to be finalized in the first quarter of 2025 and are not expected to be material.
In the third quarter of 2024, the Company recorded a gain on the sale of $195 million less costs to sell of $7 million, which is recorded in Gain (loss) on divestitures and transaction costs. Additionally, the Company recorded $35 million of income tax expense related to the divestiture.
The Casualty Disposal Group generated revenue and pre-tax profit as follows:
CNDT Q3 2024 Form 10-Q
13
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$26 $38 $100 $111 
Pre-tax profit3 2 6 5 
Assets/Liabilities Held for Sale
As noted above, the BenefitWallet Portfolio did not have any associated assets and liabilities to disclose as held for sale in the Company's Condensed Consolidated Balance Sheet at December 31, 2023. The divestiture of the Curbside Disposal Group was announced in December 2023 and completed in the second quarter of 2024. Accordingly, the assets and liabilities of these businesses were disclosed as held for sale as of December 31, 2023.
In the second quarter of 2024, the assets and liabilities of the Casualty Disposal Group were disclosed as held for sale as of June 30, 2024. Since the sale of the Casualty Disposal Group was completed during the third quarter of 2024, no associated assets or liabilities are reported as held for sale as of September 30, 2024.
The following is a summary of the major categories of assets and liabilities that have been reclassified as held for sale for the Curbside Disposal Group:
(in millions)December 31, 2023
Accounts Receivable, net$49 
Other current assets3 
Land, building and equipment, net52 
Operating lease right-of-use assets6 
Intangible assets, net— 
Goodwill35 
Other long-term assets35 
Total Assets held for sale$180 
Current portion of long-term debt$5 
Accounts payable11 
Accrued compensation and benefits costs2 
Unearned income4 
Other current liabilities9 
Long-term debt19 
Operating lease liabilities4 
Other long-term liabilities4 
Total Liabilities held for sale$58 
Note 6 – Restructuring Programs and Related Costs
The Company engages in a series of restructuring programs related to exiting certain activities, downsizing its employee base, outsourcing certain internal functions and engaging in other actions designed to reduce its cost structure and improve productivity. The implementation of the Company's operational efficiency improvement initiatives has reduced the Company's real estate footprint across all geographies and segments resulting in lease right-of-use ("ROU") asset impairments and other related costs. Also included in Restructuring and related costs are incremental, non-recurring costs related to the consolidation of the Company's data centers and bringing certain technology functions in-house, which totaled $1 million and $3 million for the three months ended September 30, 2024 and 2023, respectively, and $4 million and $7 million for the nine months ended September 30, 2024 and 2023, respectively. Management continues to evaluate the Company's businesses and, in the future, there may be additional provisions for new plan initiatives and/or changes in previously recorded estimates as payments are made, or actions are completed.
CNDT Q3 2024 Form 10-Q
14
Costs associated with restructuring, including employee severance and lease termination costs, are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility. In those geographies where the Company has either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, it recognizes employee severance costs when they are both probable and reasonably estimable. Asset impairment costs related to the reduction of the Company's real estate footprint include impairment of operating lease ROU assets and associated leasehold improvements.
A summary of the Company's restructuring program activity during the nine months ended September 30, 2024 and 2023 is as follows:
(in millions)Severance and Related CostsTermination and Other CostsAsset ImpairmentsTotal
Accrued Balance at December 31, 2023$9 $1 $— $10 
Provision9 10 2 21 
Changes in estimates— — — — 
Total Net Current Period Charges(1)
9 10 2 21 
Charges against reserve and currency(15)(11)(2)(28)
Accrued Balance at September 30, 2024$3 $— $— $3 
(in millions)Severance and Related CostsTermination and Other CostsAsset ImpairmentsTotal
Accrued Balance at December 31, 2022$10 $— $— $10 
Provision25 18 7 50 
Changes in estimates(1)— — (1)
Total Net Current Period Charges(1)
24 18 7 49 
Charges against reserve and currency(24)(17)(7)(48)
Accrued Balance at September 30, 2023$10 $1 $— $11 
__________
(1)Represents amounts recognized within the Consolidated Statements of Income (Loss) for the years shown.

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by reportable and non-reportable segment:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Commercial$1 $2 $4 $25 
Government— — — — 
Transportation— — 1 — 
Divestitures— — — — 
Unallocated Costs(1)
3 5 16 24 
Total Net Restructuring Charges$4 $7 $21 $49 
__________
(1)Represents costs related to the consolidation of the Company's data centers, operating lease ROU assets impairment, termination and other costs not allocated to the segments.

CNDT Q3 2024 Form 10-Q
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Note 7 – Debt
Long-term debt was as follows:
(in millions)September 30, 2024December 31, 2023
Term loan A due 2026$191 $238 
Term loan B due 2028— 505 
Senior notes due 2029520 520 
Finance lease obligations29 22 
Other13 15 
Principal debt balance753 1,300 
Debt issuance costs and unamortized discounts(9)(18)
Less: current maturities(26)(34)
Total Long-term Debt$718 $1,248 

As of September 30, 2024, the Company had no outstanding borrowings under its $550 million revolving credit facility (the "Revolver"). Additionally, the Company utilized $11 million of the Revolver to issue letters of credit as of September 30, 2024. The net Revolver available to be drawn upon as of September 30, 2024 was $539 million.
In March 2024, the Company utilized the proceeds from the closing of the first tranche of the BenefitWallet Transfer to voluntarily prepay $164 million of principal of the Senior Secured Term Loan B due 2028 ("Term Loan B").
In April and May 2024, the Company voluntarily prepaid $300 million of principal of the Term Loan B.
In September 2024, the Company voluntarily prepaid (i) the entire remaining outstanding balance of the Term Loan B in an amount equal to $38 million and (ii) $37 million of the Senior Secured Term Loan A due 2026 ("Term Loan A").
In connection with these voluntary prepayments, the Company wrote-off related debt issuance costs of $1 million and $6 million for the three and nine months ended September 30, 2024, respectively, which is included in Loss on extinguishment of debt in the Condensed Consolidated Statements of Income (Loss).
At September 30, 2024, the Company was in compliance with all debt covenants related to the borrowings in the table above.

Note 8 – Financial Instruments
The Company is a global company that is exposed to foreign currency exchange rate fluctuations in the normal course of its business. As a part of the Company's foreign exchange risk management strategy, the Company uses derivative instruments, primarily forward contracts, to hedge the funding of foreign entities which have a non-dollar functional currency, thereby reducing volatility of earnings or protecting fair values of assets and liabilities.
At September 30, 2024 and December 31, 2023, the Company had outstanding forward exchange contracts with gross notional values of $181 million and $148 million, respectively. At September 30, 2024, approximately 76% of these contracts mature within three months, 9% in three to six months, 11% in six to twelve months and 4% 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 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:
CNDT Q3 2024 Form 10-Q
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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.
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 Basis
The 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, 2024December 31, 2023
Assets:
Foreign exchange contracts - forward$1 $1 
Total Assets$1 $1 
Liabilities:
Foreign exchange contracts - forward$— $— 
Total Liabilities$— $— 
Summary of Other Financial Assets and Liabilities
The estimated fair values of other financial assets and liabilities were as follows:
 September 30, 2024December 31, 2023
(in millions)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Liabilities:
Long-term debt$718 $697 $1,248 $1,191 
Liabilities held for sale$— $— $58 $58 
The fair value amounts for Cash and cash equivalents, Restricted cash, Accounts receivable, net and Short-term debt approximate carrying amounts due to the short-term maturities of these instruments.
The fair value of Long-term debt was estimated using quoted market prices for identical or similar instruments (Level 2 inputs).
Note 10 – Employee Benefit Plans
The Company has post-retirement pension, savings and investment plans in several countries, including the U.S., India and the Philippines. In many instances, employees participating in defined benefit pension plans that have been amended to freeze future service accruals were transitioned to an enhanced defined contribution plan. In these plans, employees are permitted to contribute a portion of their salaries and bonuses to the plans. The Company, at its discretion, matches a portion of employee contributions.
The Company recognized an expense related to its defined contribution plans of $2 million and $2 million for the three months ended September 30, 2024 and 2023, respectively, and $8 million and $8 million for the nine months ended September 30, 2024 and 2023, respectively. The balance sheet and income statement impacts of any remaining defined benefit plans are immaterial for all periods presented in these Condensed Consolidated Financial Statements.

CNDT Q3 2024 Form 10-Q
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Note 11 – Accumulated Other Comprehensive Loss ("AOCL")
Below are the balances and changes in AOCL(1):
(in millions)Currency Translation AdjustmentsGains (Losses) on Cash Flow HedgesDefined Benefit Pension ItemsTotal
Balance at December 31, 2023$(441)$2 $4 $(435)
Other comprehensive income (loss)(14)— — (14)
Balance at September 30, 2024$(455)$2 $4 $(449)
(in millions)Currency Translation AdjustmentsGains (Losses) on Cash Flow HedgesDefined Benefit Pension ItemsTotal
Balance at December 31, 2022$(472)$1 $5 $(466)
Other comprehensive income (loss)3 — — 3 
Balance at September 30, 2023$(469)$1 $5 $(463)
__________
(1)All amounts are net of tax. Tax effects were immaterial.

Note 12 – Contingencies and Litigation
As more fully discussed below, the Company is involved in a variety of claims, lawsuits, investigations and proceedings concerning a variety of matters, including: governmental entity contracting, servicing and procurement law; intellectual property law; employment law; commercial and contracts law; the Employee Retirement Income Security Act ("ERISA"); and other laws and regulations. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing its litigation and regulatory matters using available information. The Company develops its view on estimated losses in consultation with outside counsel handling its defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in the Company's determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts in excess of any accrual for such matter or matters, this could have a material adverse effect on the Company's results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs. The Company believes it has recorded adequate provisions for any such matters as of September 30, 2024. Litigation is inherently unpredictable, and it is not possible to predict the ultimate outcome of these matters and such outcome in any such matter could be more than any amounts accrued and could be material to the Company's results of operations, cash flows or financial position in any reporting period.
Additionally, guarantees, indemnifications and claims arise during the ordinary course of business from relationships with suppliers, customers and non-consolidated affiliates when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Nonperformance under a contract could trigger an obligation of the Company. These potential claims include actions based upon alleged exposures to products, real estate, intellectual property (such as patents), environmental matters and other indemnifications. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the outcome of these claims. However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Company's consolidated financial position or liquidity. As of September 30, 2024, the Company had accrued its estimate of liability incurred under its indemnification arrangements and guarantees.
CNDT Q3 2024 Form 10-Q
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Litigation Against the Company
Skyview Capital LLC and Continuum Global Solutions, LLC v. Conduent Business Services, LLC: On February 3, 2020, plaintiffs Skyview Capital LLC and Continuum Global Solutions LLC (collectively "Skyview") filed a lawsuit in the Supreme Court of the State of New York, County of New York against Conduent Business Services, LLC, a wholly-owned subsidiary of the Company ("CBS"). The lawsuit relates to the sale of a portion of CBS's select standalone customer care call center business to plaintiffs, which sale closed in February 2019. Under the terms of the sale agreement, CBS received approximately $23 million in principal amount of promissory notes from plaintiffs (the "Notes"). The lawsuit alleges various causes of action in connection with the acquisition, including: indemnification for breach of representation and warranty; indemnification for breach of covenant; and fraud. Plaintiffs alleged that their obligation to mitigate damages and their contractual right of set-off permits them to withhold and deduct from any amounts that are owed to CBS under the Notes, and plaintiffs sought a judgment that they have no obligation to pay the Notes. On August 20, 2020, CBS filed counterclaims against Skyview seeking the outstanding balance on the Notes, the amounts owed for operating certain Jamaica-based call centers on plaintiffs' behalf pending closing (the "Jamaica Deferred Closing"), other transition services agreement ("TSA") and TSA amendments, and late rent payment obligations. CBS also moved to dismiss Skyview’s claims in 2020. In May 2021, the court denied the motion and allowed the claims to proceed. Fact and expert discovery have concluded and the parties filed summary judgment motions on July 24, 2023. On December 5, 2023, the court heard oral argument on the parties’ cross-motions for summary judgment, and rendered its decision on December 8, 2023, finding there are certain material issues of fact that require trial, and also entering partial summary judgment for each side. On January 5, 2024, CBS filed its notice of appeal of the portion of the ruling that did not grant its motion for summary judgment in its entirety and that granted certain limited relief in favor of plaintiffs. On January 23, 2024, Skyview filed its own notice of appeal, challenging the decision granting a portion of CBS’s counterclaims. Under the present schedule, the parties' appeals will be fully briefed as of November 8, 2024. Oral argument has not yet been scheduled.
In July 2024, Skyview informed CBS of its intention to sell a portion of its call center business. The parties reached an agreement on August 8, 2024, under which, contemporaneously with the closing of such a transaction, Skyview will pay the outstanding principal plus interest due on the outstanding Notes, fully discharging Skyview's obligations under the Notes, and will pay certain of CBS's litigation costs.
On September 24, 2024, Skyview and the buyer, Everise, announced a signed and binding asset purchase agreement. Following regulatory review, the transaction is expected to close in the fourth quarter of 2024, at which point Skyview will pay CBS the outstanding principal and interest due on the Notes. Skyview will then withdraw its arguments in the litigation regarding its purported right to set-off amounts due under the Notes, though Skyview's claims for alleged fraud, breach of covenant, and breach of representation and warranty otherwise will be unaffected. In addition, CBS will dismiss its two counterclaims related to the Notes. CBS's remaining counterclaims related to the Jamaica Deferred Closing, the TSAs and rent payment obligations will be unaffected.
CBS continues to deny all of plaintiffs' allegations, believes that it has strong defenses to all of plaintiffs’ claims, and will continue to defend the litigation vigorously. The Company is not able to determine or predict the ultimate outcome of this proceeding or reasonably provide an estimate or range of estimates of the possible outcome or loss, if any, in excess of currently recorded reserves.
Other Contingencies
Certain contracts, primarily in the Company's Government and Transportation segments, require the Company to provide a surety bond or a letter of credit as a guarantee of performance. As of September 30, 2024, the Company had $614 million of outstanding surety bonds issued to secure its performance of contractual obligations with its clients, and $177 million of outstanding letters of credit issued to secure the Company's performance of contractual obligations to its clients as well as other corporate obligations. In general, the Company would only be liable for these guarantees in the event of default in the Company's performance of its obligations under each contract. The Company believes it has sufficient capacity in the surety markets and liquidity from its cash flow and its various credit arrangements to allow it to respond to future requests for proposals that require such credit support.
CNDT Q3 2024 Form 10-Q
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Note 13 – Common Stock and Preferred Stock
Icahn Share Repurchase
On June 8, 2024, the Company entered into a purchase agreement (the "Purchase Agreement") with Carl C. Icahn and certain of his affiliates ("Icahn Parties") pursuant to which the Company agreed to purchase an aggregate of approximately 38 million shares of the Company’s common stock, at a price of $3.47 per share, the closing price on June 7, 2024, the last full trading day prior to the execution of the Purchase Agreement, for an aggregate purchase price of approximately $132 million. The purchase was completed and settled on June 10, 2024, and was funded through a combination of cash on hand and a drawdown under the Company’s Revolver, which has since been repaid.
Series A Preferred Stock
In December 2016, the Company issued 120,000 shares of Series A convertible perpetual preferred stock with an aggregate liquidation preference of $120 million and an initial fair value of $142 million. The convertible preferred stock earns quarterly cash dividends at a rate of 8% per year ($9.6 million per year). Each share of convertible preferred stock is convertible at any time, at the option of the holder, into 44.9438 shares of common stock for a total of 5,393,000 shares (reflecting an initial conversion price of approximately $22.25 per share of common stock), subject to customary anti-dilution adjustments.
Note 14 – Earnings (Loss) per Share
The Company did not declare any common stock dividends in the periods presented.
The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions, except per share data in whole dollars and shares in thousands)2024202320242023
Basic Net Earnings (Loss) per Share:
Net Income (Loss)$123 $(289)$438 $(302)
Dividend - Preferred Stock(2)(2)(7)(7)
Adjusted Net Income (Loss) Available to Common Shareholders - Basic$121 $(291)$431 $(309)
Diluted Net Earnings (Loss) per Share:
Net Income (Loss)$123 $(289)$438 $(302)
Dividend - Preferred Stock— (2)— (7)
Adjusted Net Income (Loss) Available to Common Shareholders - Diluted$123 $(291)$438 $(309)
Weighted Average Common Shares Outstanding - Basic161,684 217,348 189,107 217,992 
Common Shares Issuable With Respect To:
Restricted Stock And Performance Units / Shares4,077 — 2,473 — 
8% Convertible Preferred Stock5,393 — 5,393 — 
Weighted Average Common Shares Outstanding - Diluted171,154 217,348 196,973 217,992 
Net Earnings (Loss) per Share:
Basic$0.75 $(1.34)$2.28 $(1.42)
Diluted$0.72 $(1.34)$2.22 $(1.42)
The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands):
Restricted stock and performance shares/units10,288 12,297 10,329 12,297 
Convertible preferred stock— 5,393 — 5,393 
Total Anti-Dilutive and Contingently Issuable Securities10,288 17,690 10,329 17,690 

CNDT Q3 2024 Form 10-Q
20
Note 15 – Supplementary Financial Information
The components of Other assets and Other liabilities were as follows:
(in millions)September 30, 2024December 31, 2023
Other Current Assets
Prepaid expenses$106 $70 
Income taxes receivable8 38 
Value-added tax (VAT) receivable7 8 
Restricted cash11 21 
Net receivables from buyers of divested businesses128 — 
Other112 103 
Total Other Current Assets$372 $240 
Other Current Liabilities
Accrued liabilities to vendors$146 $188 
Litigation related accruals12 6 
Current operating lease liabilities52 54 
Restructuring liabilities3 10 
Income tax payable75 1 
Other taxes payable16 19 
Accrued interest13 6 
Other43 44 
Total Other Current Liabilities$360 $328 
Other Long-term Assets
Internal use software, net$110 $143 
Deferred contract costs, net120 91 
Product software, net76 92 
Deferred tax assets22 21 
Other63 89 
Total Other Long-term Assets$391 $436 
Other Long-term Liabilities
Income tax liabilities1 6 
Unearned income53 55 
Other24 23 
Total Other Long-term Liabilities$78 $84 

CNDT Q3 2024 Form 10-Q
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ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis ("MD&A") is intended to provide a reader of our financial statements with a narrative from the perspective of management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. Unless otherwise noted, transactions and other factors significantly impacting our financial condition, results of operations and liquidity are discussed in order of magnitude. Our MD&A is presented in seven sections:
•Overview;
•Financial Information and Analysis of Results of Operations;
•Metrics;
•Capital Resources and Liquidity;
•Critical Accounting Estimates and Policies;
•Recent Accounting Changes; and
•Non-GAAP Financial Measures.
The MD&A is provided as a supplement to, and should be read in conjunction with, our Condensed Consolidated Financial Statements and the accompanying Notes.
Overview
We deliver digital business solutions and services to streamline and manage enterprise processes on behalf of commercial, government and transportation organizations – creating valuable outcomes for our clients and the millions of people who count on them. Our solutions combine innovative technology platforms with automation, artificial intelligence, process expertise and services that improve quality, efficiency and productivity. With a dedicated global team of approximately 55,000 associates, our solutions span customer service, business administration and operations, healthcare administration and payment management. Across many industries and government agencies, we reduce costs, improve end-user experiences and enable digital transformation for our global clients.
Headquartered in Florham Park, New Jersey, we have operations in 24 countries.
Our reportable segments correspond to how we organize and manage the business and are aligned to the industries in which our clients operate. These three segments are:
•Commercial – Our Commercial segment provides business process solutions and services to clients in a variety of industries. Across the Commercial segment, we operate on our clients’ behalf to deliver mission-critical solutions and services to reduce costs, improve efficiencies and enhance performance for our clients and deliver better experiences for their consumers and employees.
•Government – Our Government segment provides government-centric business process services to U.S. federal, state and local government agencies and foreign governments for public assistance, healthcare programs and administration, transaction processing and payment services. The solutions in this segment help governments provide constituents access and delivery of benefits, respond to changing rules for eligibility and keep pace with increasing citizen expectations.
•Transportation – Our Transportation segment provides systems, support, and revenue-generating solutions, to government transportation agencies. We deliver mission-critical mobility and digital payment solutions for public transit and road usage charging that streamline operations, increase revenue and reduce congestion while creating safe, seamless travel experiences for consumers while reducing impact on the environment.
CNDT Q3 2024 Form 10-Q
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Executive Summary
During the first quarter of 2023, we held an investor briefing to communicate the next chapter in the Conduent journey. Our intense emphasis on growth, quality, and efficiency, beginning in the first quarter of 2020, resulted in a strengthened foundation. We remain focused on accelerating growth and enhancing value for our stakeholders and intend to achieve this by doubling down on key themes outlined in the March 2023 investor briefing. We also intend to continue our portfolio rationalization strategy, divesting certain solutions which have either scarcity value outside of Conduent or are capital intensive relative to their growth opportunity, and thereby allowing management the bandwidth and increased capital to focus on solutions where we believe we have competitive advantages or higher growth expectations.
We believe this focus on our portfolio rationalization strategy will result in a more nimble and faster growing Conduent with modest levels of net leverage, enhanced valuation, and significant excess capital to be deployed over time.
During the third quarter of 2024 we achieved the following:
•Completed the sale of the Casualty Claims Solutions business on September 1, 2024 and received $224 million of cash consideration.
•Used the proceeds from the divested businesses to voluntarily prepay the entire remaining outstanding balance of $38 million of the Term Loan B and voluntarily prepaid $37 million of the Term Loan A.
•Repurchased 3.9 million shares of common stock during the quarter as part of the previously approved $75 million share repurchase program, which has now been completed.
•Appointed a new Group President of the Commercial segment and a new Head of Government Solutions.
Financial Information and Analysis of Results of Operations
Three Months Ended
September 30,		2024 vs. 2023
(in millions)20242023$ Change% Change
Revenue$807 $932 $(125)(13)%
Operating Costs and Expenses
Cost of services (excluding depreciation and amortization)656 724 (68)(9)%
Selling, general and administrative (excluding depreciation and amortization)115 115 — — %
Research and development (excluding depreciation and amortization)1 2 (1)(50)%
Depreciation and amortization44 81 (37)(46)%
Restructuring and related costs4 7 (3)(43)%
Interest expense16 28 (12)(43)%
Goodwill impairment— 287 (287)n/m
(Gain) loss on divestitures and transaction costs, net(188)3 (191)n/m
Litigation settlements (recoveries), net1 — 1 n/m
Loss on extinguishment of debt1 — 1 n/m
Other (income) expenses, net(2)(2)— — %
Total Operating Costs and Expenses648 1,245 (597)
Income (Loss) Before Income Taxes159 (313)472 
Income tax expense (benefit)36 (24)60 
Net Income (Loss)$123 $(289)$412 
CNDT Q3 2024 Form 10-Q
23
Nine Months Ended
September 30,		2024 vs. 2023
(in millions)20242023$ Change% Change
Revenue$2,556 $2,769 $(213)(8)%
Operating Costs and Expenses
Cost of services (excluding depreciation and amortization)2,068 2,148 (80)(4)%
Selling, general and administrative (excluding depreciation and amortization)346 344 2 1 %
Research and development (excluding depreciation and amortization)4 5 (1)(20)%
Depreciation and amortization157 199 (42)(21)%
Restructuring and related costs21 49 (28)(57)%
Interest expense62 82 (20)(24)%
Goodwill impairment— 287 (287)n/m
(Gain) loss on divestitures and transaction costs, net(696)8 (704)n/m
Litigation settlements (recoveries), net6 (22)28 (127)%
Loss on extinguishment of debt6 — 6 n/m
Other (income) expenses, net(4)(3)(1)33 %
Total Operating Costs and Expenses1,970 3,097 (1,127)
Income (Loss) Before Income Taxes586 (328)914 
Income tax expense (benefit)148 (26)174 
Net Income (Loss)$438 $(302)$740 
Revenue
Revenue for the three months ended September 30, 2024 decreased compared to the prior year period, approximately two thirds of which was due to the impact of the Benefit Wallet Transfer and the sales of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses. Excluding the divestitures impact, lost business and lower volumes contributed to the decrease and were partially offset by new business ramp, particularly in our Commercial and Transportation segments.
Revenue for the nine months ended September 30, 2024 decreased, compared to the prior year period, approximately three quarters of which was due to the impact of the Benefit Wallet Transfer and the sales of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses. Excluding the divestitures impact, lost business across our three segments was partially offset by new business ramp, including the State of Victoria contract.
Cost of Services (excluding depreciation and amortization)
Cost of services for the three months ended September 30, 2024 decreased, compared to the prior year period, primarily due to the impact of the Benefit Wallet Transfer and the sales of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses. Excluding the divestitures impact, lower expenses on lower revenues and cost optimizations contributed to the decline.
Cost of services for the nine months ended September 30, 2024 decreased, compared to the prior year period, over half of which was primarily driven by the impact of the Benefit Wallet Transfer and the sales of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses. Excluding the divestitures impact, lower expenses on lower revenues and cost optimizations contributed to the decrease and were partially offset by the absence of a $17 million reversal of liabilities due to the settlement of the Cognizant matter in the prior year period described in Note 16 – Contingencies and Litigation to the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K.
Selling, General and Administrative ("SG&A") (excluding depreciation and amortization)
SG&A for the three months ended September 30, 2024 was unchanged, compared to the prior year period.
CNDT Q3 2024 Form 10-Q
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SG&A for the nine months ended September 30, 2024 increased, compared to the prior year periods, primarily driven by costs to transition away from a technology vendor, partially offset by the impact of the sales of the Curbside Management and Public Safety Solutions business.
Depreciation and Amortization
Depreciation and amortization for the three months ended September 30, 2024 decreased, compared to the prior year period due to the impact of the sales of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses and a prior year write-off of an abandoned internal use software asset in our Commercial segment totaling $25 million, stemming from management's decision to abandon an internal use software product and a decision by a customer to not implement a product software solution.
Depreciation and amortization for the nine months ended September 30, 2024 decreased, compared to the prior year period due to the impact of the sales of the Curbside Management and Public Safety Solutions and Casualty Claims Solutions businesses, the prior year write-off of an internal use software asset in our Commercial segment as noted above and lower capital investments.
Restructuring and Related Costs
We engage in a series of restructuring programs related to optimizing our employee base, reducing our real estate footprint, exiting certain activities, outsourcing certain internal functions, consolidating our data centers and engaging in other actions designed to reduce our cost structure and improve productivity. The following are the components of our Restructuring and related costs:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Severance and related costs$2 $1 $9 $24 
Data center consolidation costs1 3 4 7 
Termination, insourcing and asset impairment costs1 3 8 18 
Restructuring and related costs$4 $7 $21 $49 
Restructuring and related costs for the nine months ended September 30, 2024 decreased compared to the prior year period. The decrease is primarily driven by severance and related costs due to the closure of one of our Commercial segment operations in Europe in the prior year period as well as lower facilities downsizing costs in the current year.
Refer to Note 6 – Restructuring Programs and Related Costs to the Condensed Consolidated Financial Statements for additional information regarding our restructuring programs.
Interest Expense
Interest expense represents interest on long-term debt and the amortization of debt issuance costs. Interest expense for the three and nine months ended September 30, 2024 decreased, compared to the prior year periods primarily due to voluntary prepayments of the entire Term Loan B balance outstanding and a portion of the Term Loan A balance with proceeds from divestitures.
(Gain) Loss on Divestitures and Transaction Costs
The completion of the BenefitWallet Transfer resulted in a gain of $425 million for the nine months ended September 30, 2024. The completion of the sale of the Curbside Management and Public Safety businesses in the second quarter of 2024 resulted in a gain of $108 million for the nine months ended September 30, 2024. The completion of the sale of the Casualty Claims Solutions business in the third quarter of 2024 resulted in a gain of $195 million for the three and nine months ended September 30, 2024. Additionally, professional fees and other costs related to these consummated and certain other non-consummated transactions considered by the Company are included in this financial statement line item for all periods.
Litigation Settlements (Recoveries), Net
Litigation settlements (recoveries), net for the nine months ended September 30, 2023 primarily consisted of a $26 million reversal of reserves due to the settlement of the Cognizant matter.
CNDT Q3 2024 Form 10-Q
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Income Taxes
The effective tax rate for the three months ended September 30, 2024 was 22.2%, compared to 7.8% for the three months ended September 30, 2023. The September 30, 2024 rate was higher than the U.S. statutory rate of 21%, primarily due to state and local taxes, geographic mix of income, and other discrete tax items, partially offset by a favorable permanent difference on gains from divestitures.
The effective tax rate for the three months ended September 30, 2023 was lower than the U.S. statutory rate of 21% primarily due to permanently non-deductible amounts related to the book goodwill impairment and changes in the geographic mix of income.
Excluding the impact of the gains from divestitures, restructuring costs, amortization of intangibles, valuation allowance and other discrete tax adjustments, the normalized effective tax rate for the three months ended September 30, 2024 was 12.5%. The normalized effective tax rate for the three months ended September 30, 2023 was (6.1)%, primarily due to excluding the impact of restructuring costs, amortization of intangible assets and goodwill impairment. The normalized effective tax rate for the three months ended September 30, 2024 was higher than the rate for the three months ended September 30, 2023 primarily due to higher pre-tax loss and the geographic mix of income.
The effective tax rate for the nine months ended September 30, 2024 was 25.2%, compared to 7.8% for the nine months ended September 30, 2023. The September 30, 2024 rate was higher than the U.S. statutory rate of 21%, primarily due to state and local taxes and geographic mix of income, partially offset by favorable permanent difference on gain from divestitures, tax benefit from valuation allowances and audit settlement reserve releases.
The effective tax rate for the nine months ended September 30, 2023 was lower than the U.S. statutory rate of 21%, primarily due to permanently non-deductible amounts related to the book goodwill impairment, the geographic mix of income and the charge for valuation allowances.
Excluding the impact of the gains from divestitures, restructuring costs, amortization of intangible assets, litigation reserve, audit settlement reserve release, valuation allowance and other discrete tax items, the normalized effective tax rate for the nine months ended September 30, 2024 was 19.7%. The normalized effective tax rate for the nine months ended September 30, 2023 was (158.4)%, primarily due to excluding the impact of goodwill impairment, amortization of intangible assets, restructuring costs, litigation reserve releases and certain discrete tax items. The September 30, 2023 rate was anomalous due to the small adjusted pre-tax loss and tax, which was a result of geographic mix of income and valuation allowances against losses in certain jurisdictions resulting in no tax benefit. The normalized effective tax rate for the nine months ended September 30, 2024 was higher than the rate for the nine months ended September 30, 2023 primarily due to the geographic mix of income and higher pre-tax loss.
In 2021, the Organization for Economic Cooperation and Development released model rules for a 15% global minimum tax, known as Pillar Two. This alternative minimum tax is treated as a period cost beginning in 2024 and does not have a material impact on the Company's financial results of operations for the current period. The Company continues to monitor legislative developments, as well as additional guidance from countries that have enacted legislation.
Operations Review of Segment Revenue and Profit
Our financial performance is based on Segment Profit (Loss) and Segment Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") for the following three segments:
•Commercial;
•Government; and
•Transportation.
Divestitures includes our BenefitWallet and Casualty Claims Solutions businesses (both of which were reclassified from our Commercial segment) and our Curbside Management and Public Safety Solutions businesses (which was reclassified from our Transportation segment).
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 our reportable segments.
CNDT Q3 2024 Form 10-Q
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Results of financial performance by segment were:
Three Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$385 $255 $141 $26 $— $807 
Segment profit (loss)$15 $50 $(6)$3 $(70)$(8)
Segment depreciation and amortization$20 $10 $6 $1 $7 $44 
Adjusted EBITDA$35 $60 $— $4 $(63)$36 
% of Total Revenue47.7 %31.6 %17.5 %3.2 %— %100.0 %
Adjusted EBITDA Margin9.1 %23.5 %— %15.4 %— %4.5 %
2023
Revenue$397 $290 $144 $101 $— $932 
Segment profit (loss)$(19)$84 $(5)$26 $(75)$11 
Segment depreciation and amortization$48 $11 $8 $6 $8 $81 
Adjusted EBITDA$29 $95 $3 $32 $(67)$92 
% of Total Revenue42.6 %31.1 %15.5 %10.8 %— %100.0 %
Adjusted EBITDA Margin7.3 %32.8 %2.1 %34.0 %— %9.9 %
Nine Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$1,192 $758 $426 $180 $— $2,556 
Segment profit (loss)$48 $130 $(15)$35 $(213)$(15)
Segment depreciation and amortization$68 $34 $19 $13 $21 $155 
Adjusted EBITDA$116 $164 $4 $48 $(192)$140 
% of Total Revenue46.6 %29.7 %16.7 %7.0 %— %100.0 %
Adjusted EBITDA Margin9.7 %21.6 %0.9 %26.7 %— %5.5 %
2023
Revenue$1,245 $824 $400 $300 $— $2,769 
Segment profit (loss)$13 $224 $(11)$76 $(224)$78 
Segment depreciation and amortization$99 $31 $20 $20 $27 $197 
Adjusted EBITDA$112 $255 $9 $96 $(197)$275 
% of Total Revenue45.0 %29.8 %14.4 %10.8 %— %100.0 %
Adjusted EBITDA Margin9.0 %30.9 %2.3 %32.0 %— %9.9 %

CNDT Q3 2024 Form 10-Q
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(in millions)Three Months Ended
September 30,		Nine Months Ended
September 30,
Segment Profit (Loss) Reconciliation to Income (Loss) Before Income Taxes2024202320242023
Income (Loss) Before Income Taxes$159 $(313)$586 $(328)
Reconciling items:
Amortization of acquired intangible assets1 1 4 5 
Restructuring and related costs4 7 21 49 
Interest expense16 28 62 82 
Goodwill impairment— 287 — 287 
(Gain) loss on divestitures and transaction costs(188)3 (696)8 
Litigation settlements (recoveries)1 — 6 (22)
Loss on extinguishment of debt1 — 6 — 
Other (income) expenses, net(2)(2)(4)(3)
Segment Profit (Loss)$(8)$11 $(15)$78 
Segment depreciation and amortization (including contract inducements)44 81 $155 $197 
Adjusted EBITDA$36 $92 $140 $275 
Commercial Segment
Revenue
Commercial revenue for the three months ended September 30, 2024 declined compared to the prior year period, driven by lower volumes, partially offset by new business ramp outpacing lost business.
Commercial revenue for the nine months ended September 30, 2024 declined compared to the prior year period, driven by lost business and lower volumes, partially offset by new business ramp.
Segment Profit and Adjusted EBITDA
Commercial segment profit and adjusted EBITDA for the three and nine months ended September 30, 2024 increased compared to the prior year periods primarily due to new business ramp and cost efficiencies, partially offset by the impact of lost business and lower volumes. Commercial segment profit also benefited from the impact of lower depreciation due to the prior year write-off of internal use software and fully amortized assets.
Government Segment
Revenue
Government revenue for the three and nine months ended September 30, 2024 decreased, compared to the prior year periods, primarily driven by lost business in our Government Healthcare business and lower volumes in our Government Services business due to the change in funding mechanism for the Electronic Benefits Transfer ("EBT") programs.
Segment Profit and Adjusted EBITDA
Government segment profit and adjusted EBITDA for the three months ended September 30, 2024 decreased compared to the prior year period primarily due to lost business and the lower volumes mentioned above.
Government segment profit and adjusted EBITDA for the nine months ended September 30, 2024 decreased compared to the prior year periods primarily due to the impact of lost business, lower volumes and the absence of a $17 million reversal of liabilities due to the settlement of the Cognizant matter in the prior year period and unfavorable revenue mix.
CNDT Q3 2024 Form 10-Q
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Transportation Segment
Revenue
Transportation revenue for the three months ended September 30, 2024 declined slightly compared to the prior year period, primarily due to lower small project activity. New business ramp outpaced losses and a Tolling customer price decline. In addition, operational performance improved with less impact from extended implementation timelines compared to the prior year period.
Transportation revenue for the nine months ended September 30, 2024 increased compared to the prior year period, primarily driven by the ramp of new business and improved operational performance with fewer delays from extended implementation timelines compared to the prior year period, partially offset by lost business, the price decline noted above and lower volumes.
Segment Profit and Adjusted EBITDA
Transportation segment profit and adjusted EBITDA for the three and nine months ended September 30, 2024 were slightly lower due to the non-retained portion of a Tolling contract, partially offset by improved operational performance and reduced impact from extended implementation timelines compared to the prior year period.
Divestitures
Revenue, Segment Profit and Adjusted EBITDA
The decrease in revenue, segment profit and Adjusted EBITDA for the three and nine months ended September 30, 2024 was due to the BenefitWallet portfolio, the Curbside Management and Public Safety Solutions businesses and Casualty Claims Solutions businesses being included in the full three and nine months of the prior year period whereas their results were only included until the date of their transfer and sale, as applicable, in 2024.
Unallocated Costs
Unallocated Costs for the three and nine months ended September 30, 2024 decreased compared to the prior year periods primarily due to lower technology costs.
Metrics
Metrics
We use metrics to evaluate our business, determine the allocation of our resources, make decisions regarding corporate strategies and evaluate forward-looking projections and trends affecting our business. We disclose these metrics to provide transparency in our performance trends. We present certain key metrics, including Signings and Net ARR Activity below. The metrics for all periods presented below have been recast to remove the activity related to the BenefitWallet Portfolio and the Curbside Management and Public Safety Solutions businesses.
Signings
Signings are defined as estimated future revenues from contracts signed during the period, including renewals of existing contracts. Total Contract Value ("TCV") is the estimated total contractual revenue related to signed contracts. TCV signings is defined as estimated future revenues from contracts signed during the period, including renewals of existing contracts. Due to the inconsistency of when existing contracts end, quarterly and yearly comparisons are not a good measure of renewal performance. New business Annual Contract Value ("ACV") is calculated as TCV divided by the contract term, in months, multiplied by 12 for an annual measure.
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Signing information for the three and nine months ended September 30, 2024 and 2023 is as follows:
Three Months Ended
September 30,		2024 vs. 2023
($ in millions)
2024(3)
2023(3)
$ Change% Change
New business ACV$111 $141 $(30)(21)%
New business TCV$235 $266 $(31)(12)%
Renewals TCV659 434 225 52 %
Total Signings$894 $700 $194 28 %
Annual recurring revenue signings(1)
$63 $53 $10 19 %
Non-recurring revenue signings(2)
$50 $96 $(46)(48)%
Nine Months Ended
September 30,		2024 vs. 2023
($ in millions)
2024(3)
2023(3)
$ Change% Change
New business ACV$348 $468 $(120)(26)%
New business TCV$651 $1,847 $(1,196)(65)%
Renewals TCV1,296 1,249 47 4 %
Total Signings$1,947 $3,096 $(1,149)(37)%
Annual recurring revenue signings(1)
$155 $219 $(64)(29)%
Non-recurring revenue signings(2)
$230 $515 $(285)(55)%
 ___________
(1)Recurring revenue signings are for new business contracts longer than one year.
(2)Non-recurring revenue signings are for contracts shorter than one year.
(3)Adjusted to remove Curbside Management and Public Safety Solutions businesses and Casualty Claims Solutions business new business signings.
The total new business pipeline at the end of September 30, 2024 and 2023 was $21.2 billion and $21.4 billion, respectively. Total new business pipeline is defined as total new business TCV pipeline of deals in all sell stages. This extends past the next twelve-month period to include total pipeline, excluding the impact of divested business as required.
Net ARR Activity
Net ARR Activity is a metric that is defined as Projected Annual Recurring Revenue ("ARR") for contracts signed in the prior 12 months, less the annualized impact of any client losses, contractual volume and price changes, and other known impacts for which the Company was notified in that same time period, which could positively or negatively impact results. The metric annualizes the net impact to revenue. Timing of revenue impact varies and may not be realized within the forward 12-month timeframe. The metric is for indicative purposes only. This metric excludes non-recurring revenue signings. This metric is not indicative of any specific 12-month timeframe.
The Net ARR activity metric for the trailing twelve months for each of the prior five quarters was as follows:
(in millions)Net ARR Activity metric
September 30, 2024$46 
June 30, 2024(47)
March 31, 20246 
December 31, 202349 
September 30, 202391 
CNDT Q3 2024 Form 10-Q
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Capital Resources and Liquidity
As of September 30, 2024 and December 31, 2023, total cash and cash equivalents were $393 million and $498 million, respectively. We also have a $550 million revolving line of credit for our various cash needs, of which $11 million was used for letters of credit. The net amount available to be drawn upon under our revolving line of credit as of September 30, 2024, was $539 million.
As of September 30, 2024, our total principal debt outstanding was $753 million, of which $26 million was due within one year. Refer to Note 7 – Debt in the Condensed Consolidated Financial Statements for additional debt information.
To provide financial flexibility and finance certain investments and projects, we may continue to utilize external financing arrangements. However, we believe that our cash on hand, projected cash flow from operations, sound balance sheet and our revolving line of credit will continue to provide sufficient financial resources to meet our expected business obligations for at least the next twelve months.
Cash Flow Analysis
The following table summarizes our cash flows, as reported in our Condensed Consolidated Statement of Cash Flows in the accompanying Condensed Consolidated Financial Statements:
 Nine Months Ended September 30,
(in millions)20242023Better (Worse)
Net cash provided by (used in) operating activities$(91)$(33)$(58)
Net cash provided by (used in) investing activities$761 $(64)825 
Net cash provided by (used in) financing activities$(781)$(48)(733)
Operating activities
The net increase in cash used in operating activities of $58 million, compared to the prior year period, was primarily due to lower Adjusted EBITDA and a decrease in days payable outstanding, partially offset by lower interest payments. We expect significant cash tax payments in the fourth quarter of 2024 due to gains on divestitures.
Investing activities
Investing cash flow increased by $825 million mainly due to $823 million of proceeds received from the divestitures.
Financing activities
The increase in cash used in financing activities was due to the voluntary prepayment of $539 million of debt using the proceeds received from the recent divestitures, as well as the repurchase of $182 million of treasury stock, including the $132 million purchased from the Icahn Parties.
Sales of Accounts Receivable
We have entered into a factoring agreement in the normal course of business as part of our cash and liquidity management, to sell certain accounts receivable without recourse to a third-party financial institution. The transactions under this agreement are treated as sales and are accounted for as reductions in accounts receivable because the agreement transfers effective control over, and risk related to, the receivables to the buyer. Cash proceeds from this arrangement are included in cash flow from operating activities in the Condensed Consolidated Statements of Cash Flows.
The net impact from the sales of accounts receivable on net cash provided by (used in) operating activities for the nine months ended September 30, 2024 and 2023 was $(4) million and $(14) million, respectively.
Material Cash Requirements from Contractual Obligations
We believe our balances of cash and cash equivalents, which totaled $393 million as of September 30, 2024, along with cash generated by operations and amounts available for borrowing under our 2021 Revolving Credit Facility, will be sufficient to satisfy our cash requirements over the next 12 months and beyond.
CNDT Q3 2024 Form 10-Q
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At September 30, 2024, the Company’s material cash requirements include debt, leases and estimated purchase commitments. See Part II, Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operation of our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on our material cash requirements.
Critical Accounting Estimates and Policies
Our management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying Condensed Consolidated Financial Statements and notes thereto.
There have been no significant changes during the nine months ended September 30, 2024 to our critical accounting estimates and policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.
Recent Accounting Changes
See Note 2 – Recent Accounting Pronouncements for information on accounting standards adopted during the current year, as well as recently issued accounting standards not yet required to be adopted and the expected impact of the adoption of these accounting standards.
Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). In addition, within this Form 10-Q Part I Item 2 we have discussed our financial results using non-GAAP measures.
We believe these non-GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with U.S. GAAP, to exclude the effects of certain items as well as their related tax effects. Management believes that these non-GAAP financial measures provide an additional means of analyzing the results of the current period compared to the corresponding prior period. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with U.S. GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable U.S. GAAP measures and should be read only in conjunction with our Consolidated Financial Statements prepared in accordance with U.S. GAAP. Our management regularly uses our non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions, and providing such non-GAAP financial measures to investors allows for a further level of transparency as to how management reviews and evaluates our business results and trends. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on certain of these non-GAAP measures.
A reconciliation of the non-GAAP financial measures Adjusted EBITDA and EBITDA Margin to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP are provided in the Segment Performance Review above.
Adjusted EBITDA and Adjusted 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 Margin is adjusted EBITDA divided by revenue. Adjusted EBITDA represents income (loss) before interest, income taxes, depreciation and amortization and contract inducement amortization adjusted for the following items:
•Amortization of acquired intangible assets. The amortization of acquired intangible assets is driven by acquisition activity, which can vary in size, nature and timing as compared to other companies within our industry and from period to period.
•Restructuring and related costs. Restructuring and related costs include restructuring and asset impairment charges as well as costs associated with our strategic transformation program.
CNDT Q3 2024 Form 10-Q
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•Goodwill impairment. This represents goodwill impairment charges related to entering the agreement to transfer the BenefitWallet Portfolio.
•(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 of debt issuance costs related to prepayments of debt.
•Other charges (credits). This includes Other (income) expenses, net on the Consolidated Statements of Income (loss) and other insignificant (income) expenses and other adjustments.
Adjusted EBITDA is not intended to represent cash flows from operations, operating income (loss) or net income (loss) as defined by U.S. GAAP as indicators of operating performance. Management cautions that amounts presented in accordance with Conduent's definition of adjusted EBITDA and adjusted EBITDA Margin may not be comparable to similar measures disclosed by other companies because not all companies calculate adjusted EBITDA and adjusted EBITDA Margin in the same manner.
ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk from changes in foreign currency exchange rates which could affect operating results, financial position and cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. We may utilize derivative financial instruments to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We also may hedge the cost to fund material non-dollar entities by buying currencies periodically in advance of the funding date. This is accounted for using derivative accounting.
Recent market and economic events have not caused us to materially modify or change our financial risk management strategies with respect to our exposures to foreign currency risk. Refer to Note 8 – Financial Instruments in the Condensed Consolidated Financial Statements for additional discussion on our financial risk management.
During the reporting period, there have been no material changes to the quantitative and qualitative disclosures regarding our market risk set forth in our Annual Report on Form 10-K for the year ended December 31, 2023.
 
ITEM 4 — CONTROLS AND PROCEDURES
(a)Evaluation of Disclosure Controls and Procedures
The Company’s management evaluated, with the participation of our principal executive officer and principal financial officer, or persons performing similar functions, the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of the end of the period covered by this Form 10-Q. Based on this evaluation, our principal executive officer and principal financial officer have concluded that, as of the end of the period covered by this Form 10-Q, our disclosure controls and procedures were effective to ensure that information we are required to disclose in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms relating to the Company, including our consolidated subsidiaries, and was accumulated and communicated to the Company’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b)    Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

CNDT Q3 2024 Form 10-Q
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ITEM 1 — LEGAL PROCEEDINGS
The information set forth under Note 12 – Contingencies and Litigation in the Condensed Consolidated Financial Statements of this Form 10-Q is incorporated herein by reference in answer to this Item.
 
ITEM 1A — RISK FACTORS
Reference is made to the Risk Factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to our risk factors as previously reported in our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a)Sales of Unregistered Securities during the Quarter ended September 30, 2024
During the quarter ended September 30, 2024, the Company did not issue any securities in transactions that were not registered under the Securities Act of 1933, as amended.
(b)Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Share repurchase activity during the three months ended September 30, 2024 was as follows:
Period
Total Number of Shares Purchased(1)
Average Price Paid Per Share (2)
Total Number of Shares Purchased as a Part of Publicly Announced PlanApproximate Dollar Value of Shares that May Yet Be Purchased Under Plan (in millions)
July 1-31, 20241,380,510 $3.64 1,380,510 $9 
August 1-31, 20241,730,498 3.43 1,730,498 3 
September 1-30, 2024815,726 3.80 815,726 — 
Total3,926,734 $3.58 3,926,734 $— 
(1) On May 16, 2023, the Board of Directors authorized a three-year share repurchase program, granting approval for the Company to repurchase up to $75 million of its common stock from time to time as market and business conditions warrant, including through open market purchases or Rule 10b5-1 trading plans. This program was completed in September 2024.
(2) Average share price includes transaction commissions.
ITEM 3 — DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 — MINE SAFETY DISCLOSURES
None.
ITEM 5 — OTHER INFORMATION
10b5-1 Plans
During the three months ended September 30, 2024, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).
CNDT Q3 2024 Form 10-Q
34
ITEM 6 — EXHIBITS
Incorporated by Reference
Exhibit No.DescriptionFiled HerewithFormExhibit No.Filing Date
2.18-K2.19/19/2023
2.210-Q2.28/7/2024
3.18-K3.112/23/2016
3.210-Q3.211/1/2023
31(a)
X
31(b)
X
32*X
101
The following materials from the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 formatted in Inline XBRL: (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Shareholders' Equity and (vi) Notes to Consolidated Financial Statements.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
————————
*    Document has been furnished, is deemed not filed and is not to be incorporated by reference into any of Registrant’s filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, irrespective of any general incorporation language contained in any such filing.


CNDT Q3 2024 Form 10-Q
35
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
CONDUENT INCORPORATED
(Registrant)
By:
/S/ GEORGE J. ABATE
 George J. Abate
Vice President and Chief Accounting Officer
(Principal Accounting Officer)

Date: November 6, 2024


CNDT Q3 2024 Form 10-Q
36
EXHIBIT 31(a)

CEO CERTIFICATIONS
I, Clifford Skelton, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Conduent Incorporated;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
November 6, 2024

 
/S/ CLIFFORD SKELTON
Clifford Skelton
Principal Executive Officer


EXHIBIT 31(b)

CFO CERTIFICATIONS
I, Stephen Wood, certify that:
 
1.I have reviewed this Quarterly Report on Form 10-Q of Conduent Incorporated;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
November 6, 2024

/S/ STEPHEN WOOD
Stephen Wood
Principal Financial Officer


EXHIBIT 32

CERTIFICATION OF CEO AND CFO PURSUANT TO 18 U.S.C. § 1350,
AS ADOPTED PURSUANT TO § 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Conduent Incorporated, a New York corporation (the “Company”), for the quarter ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Clifford Skelton, Chief Executive Officer of the Company, and Stephen Wood, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his/her knowledge, that:
 
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


/S/  CLIFFORD SKELTON
Clifford Skelton
Chief Executive Officer            
November 6, 2024
/S/  STEPHEN WOOD
Stephen Wood
Chief Financial Officer
November 6, 2024

This certification accompanies this Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.
A signed original of this written statement required by § 906 has been provided to Conduent Incorporated and will be retained by Conduent Incorporated and furnished to the Securities and Exchange Commission or its staff upon request.

v3.24.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2024
Oct. 31, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-37817  
Entity Registrant Name CONDUENT INC  
Entity Incorporation, State or Country Code NY  
Entity Tax Identification Number 81-2983623  
Entity Address, Address Line One 100 Campus Drive,  
Entity Address, Address Line Two Suite 200,  
Entity Address, City or Town Florham Park,  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07932  
City Area Code 844  
Local Phone Number 663-2638  
Title of 12(b) Security Common Stock, $0.01 par value  
Trading Symbol CNDT  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   159,889,601
Entity Central Index Key 0001677703  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.24.3
Condensed Consolidated Statements of Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue        
Revenue $ 807 $ 932 $ 2,556 $ 2,769
Operating Costs and Expenses        
Cost of services (excluding depreciation and amortization) 656 724 2,068 2,148
Selling, general and administrative (excluding depreciation and amortization) 115 115 346 344
Research and development (excluding depreciation and amortization) 1 2 4 5
Depreciation and amortization 44 81 157 199
Restructuring and related costs 4 7 21 49
Interest expense 16 28 62 82
Goodwill impairment 0 287 0 287
(Gain) loss on divestitures and transaction costs, net (188) 3 (696) 8
Litigation settlements (recoveries), net 1 0 6 (22)
Loss on extinguishment of debt 1 0 6 0
Other (income) expenses, net (2) (2) (4) (3)
Total Operating Costs and Expenses 648 1,245 1,970 3,097
Income (Loss) Before Income Taxes 159 (313) 586 (328)
Income tax expense (benefit) 36 (24) 148 (26)
Net Income (Loss) $ 123 $ (289) $ 438 $ (302)
Net Income (Loss) per Share:        
Basic (in USD per share) $ 0.75 $ (1.34) $ 2.28 $ (1.42)
Diluted (in USD per share) $ 0.72 $ (1.34) $ 2.22 $ (1.42)
v3.24.3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) $ 123 $ (289) $ 438 $ (302)
Other Comprehensive Income (Loss), Net:        
Currency translation adjustments, net [1] 13 (18) (14) 3
Unrecognized gains (losses), net [1] 1 (1) 0 0
Other Comprehensive Income (Loss), Net [1] 14 (19) (14) 3
Comprehensive Income (Loss), Net $ 137 $ (308) $ 424 $ (299)
[1] All amounts are net of tax. Tax effects were immaterial.
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Assets, Current [Abstract]    
Cash and cash equivalents $ 393 $ 498
Accounts receivable, net 528 559
Assets held for sale 0 180
Contract assets 152 178
Other current assets 372 240
Total current assets 1,445 1,655
Land, buildings and equipment, net 174 197
Operating lease right-of-use assets 174 191
Intangible assets, net 15 32
Goodwill 642 651
Other long-term assets 391 436
Total Assets 2,841 3,162
Liabilities, Current [Abstract]    
Current portion of long-term debt 26 34
Accounts payable 133 174
Accrued compensation and benefits costs 193 183
Unearned income 115 91
Liabilities held for sale 0 58
Other current liabilities 360 328
Total current liabilities 827 868
Long-term debt 718 1,248
Deferred taxes 54 30
Operating lease liabilities 141 157
Other long-term liabilities 78 84
Total Liabilities 1,818 2,387
Contingencies
Series A convertible preferred stock 142 142
Common stock 2 2
Treasury stock, at cost (210) (27)
Additional paid-in capital 3,952 3,938
Retained earnings (deficit) (2,418) (2,849)
Accumulated other comprehensive loss (449) (435)
Total Conduent Inc. Equity 877 629
Noncontrolling Interest 4 4
Total Equity 881 633
Total Liabilities and Equity $ 2,841 $ 3,162
Shares of common stock issued (in shares) 159,890,000 211,509,000
Shares of common stock outstanding (in shares) 159,890,000 211,509,000
Shares of series A convertible preferred stock issued (in shares) 120,000 120,000
Shares of series A convertible preferred stock outstanding (in shares) 120,000 120,000
Shares of common stock held in treasury 60,868,000 8,841,000
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash Flows from Operating Activities:    
Net income (loss) $ 438 $ (302)
Adjustments required to reconcile net income (loss) to cash flows from operating activities:    
Depreciation and amortization 157 199
Contract inducement amortization 2 3
Deferred income taxes 23 (23)
Goodwill impairment 0 287
Amortization of debt financing costs 3 3
Loss on extinguishment of debt 6 0
(Gain) loss on divestitures and sales of fixed assets, net (727) 0
Stock-based compensation 14 13
Changes in operating assets and liabilities:    
Accounts receivable 6 19
Other current and long-term assets (86) (115)
Accounts payable and accrued compensation and benefits costs (17) (55)
Other current and long-term liabilities (12) (36)
Net change in income tax assets and liabilities 102 (26)
Net cash provided by (used in) operating activities (91) (33)
Cash Flows from Investing Activities:    
Cost of additions to land, buildings and equipment (39) (33)
Cost of additions to internal use software (23) (31)
Pro-rata share of purchase price 823 0
Net cash provided by (used in) investing activities 761 (64)
Cash Flows from Financing Activities:    
Proceeds from revolving credit facility 80 0
Payments on revolving credit facility (80) 0
Payments on debt (587) (30)
Treasury stock purchases (182) (7)
Taxes paid for settlement of stock-based compensation (5) (7)
Dividends paid on preferred stock (7) (7)
Contribution from noncontrolling interest 0 3
Net cash provided by (used in) financing activities (781) (48)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (4) 2
Increase (decrease) in cash, cash equivalents and restricted cash (115) (143)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period 519 598
Cash, Cash Equivalents and restricted Cash at End of period [1] $ 404 $ 455
[1] Includes $11 million and $4 million of restricted cash as of September 30, 2024 and 2023, respectively, that were included in Other current assets on the respective Condensed Consolidated Balance Sheets.
v3.24.3
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2024
Sep. 30, 2023
Restricted Cash [Abstract]    
Restricted Cash $ 11 $ 4
v3.24.3
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
$ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Earnings (Deficit)
AOCL
 [1]
Non-controlling Interest
Balance at period start at Dec. 31, 2022 $ 917 $ 2 $ 0 $ 3,924 $ (2,543) $ (466)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends - preferred stock (7)       (7)    
Stock incentive plans, net 13     13      
Treasury stock purchases (7)   (7)        
Contribution from noncontrolling interest 3            
Comprehensive Income (Loss):              
Net income (loss) (302)       (302)    
Other comprehensive income (loss), net 3 [2]         3  
Comprehensive Income (Loss), Net (299)       (302) 3  
Balance at period end at Sep. 30, 2023 620 2 (7) 3,937 (2,852) (463) $ 3
Balance at period start at Jun. 30, 2023 927 2 (1) 3,931 (2,561) (444) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends - preferred stock (2)       (2)    
Stock incentive plans, net 6     6      
Treasury stock purchases (6)   (6)        
Contribution from noncontrolling interest 3           3
Comprehensive Income (Loss):              
Net income (loss) (289)       (289)    
Other comprehensive income (loss), net (19) [2]         (19)  
Comprehensive Income (Loss), Net (308)       (289) (19)  
Balance at period end at Sep. 30, 2023 620 2 (7) 3,937 (2,852) (463) 3
Balance at period start at Dec. 31, 2023 633 2 (27) 3,938 (2,849) (435)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends - preferred stock (7)       (7)    
Stock incentive plans, net 14     14      
Treasury stock purchases (183)   (183)        
Contribution from noncontrolling interest 0            
Comprehensive Income (Loss):              
Net income (loss) 438       438    
Other comprehensive income (loss), net (14) [2]         (14)  
Comprehensive Income (Loss), Net 424       438 (14)  
Balance at period end at Sep. 30, 2024 881 2 (210) 3,952 (2,418) (449) 4
Balance at period start at Jun. 30, 2024 755 2 (196) 3,947 (2,539) (463) 4
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends - preferred stock (2)       (2)    
Stock incentive plans, net 5     5      
Treasury stock purchases (14)   (14)        
Contribution from noncontrolling interest 0            
Comprehensive Income (Loss):              
Net income (loss) 123       123    
Other comprehensive income (loss), net 14 [2]         14  
Comprehensive Income (Loss), Net 137       123 14  
Balance at period end at Sep. 30, 2024 $ 881 $ 2 $ (210) $ 3,952 $ (2,418) $ (449) $ 4
[1] AOCL - Accumulated other comprehensive loss. Refer to Note 11 – Accumulated Other Comprehensive Loss for the components of AOCL.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
[2] All amounts are net of tax. Tax effects were immaterial.
v3.24.3
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]        
Preferred stock, dividend rate (in dollars per share) $ 20 $ 20 $ 60 $ 60
v3.24.3
Basis of Presentation
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
References herein to “we,” “us,” “our,” the “Company” and “Conduent” refer to Conduent Incorporated and its consolidated subsidiaries unless the context suggests otherwise.
Description of Business
Conduent Incorporated is a New York corporation, organized in 2016. Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 55,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs.
Basis of Presentation
The unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. The year-end Condensed Consolidated Balance Sheet was derived from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position, results of operations and cash flows have been made. These adjustments consist of normal recurring items. The interim results of operations are not necessarily indicative of the results of the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
In the first quarter of 2023, the Company identified an error and recorded an out-of-period adjustment to correct the recognition of revenue on a Government segment contract that originated in 2020 and impacted all quarterly periods through December 31, 2022. This adjustment resulted in a reduction to revenue and income (loss) before income taxes of $7 million and a corresponding decrease to accounts receivable of $1 million and an increase to other current liabilities of $6 million in the first quarter of 2023. The Company evaluated the impact of the out-of-period adjustment and concluded it was not material to any previously issued interim or annual consolidated financial statements and the adjustment was not material to the year ending December 31, 2023.
The Company has evaluated subsequent events through November 6, 2024, and no material subsequent events were identified.
Use of Estimates
Preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, the Company evaluates its estimates, including those related to fair values of financial instruments, goodwill and intangible assets, income taxes and contingent liabilities, among others. The Company bases its estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Summary of Significant Accounting Policies
The Company's significant accounting policies are described in Note 1 – Basis of Presentation and Summary of Significant Accounting Policies in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
During 2024, there have been no changes to the Company's significant accounting policies as described therein.
v3.24.3
Recent Accounting Pronouncements
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
New Accounting Standards Adopted
The Company has not adopted any new accounting standards in 2024 that had a material impact on its Consolidated Financial Statements.
New Accounting Standards To Be Adopted
Segment Reporting: In November 2023, the Financial Accounting Standards Board ("FASB") issued final guidance that expands reportable segment disclosures, particularly incremental segment expense disclosures. This guidance is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is not early adopting this guidance. The Company has gathered the data required to be disclosed upon adoption. As the guidance is disclosure-related, adoption will not have any impact on the Company's Condensed Consolidated Financial Statements.
Income Taxes: In December 2023, the FASB issued final guidance designed to improve income tax disclosures, particularly disclosures around business entities' income tax rate reconciliation and income taxes paid. The guidance requires consistent categories and greater disaggregation of information in the reconciliation of an entity's statutory tax rate to its effective tax rate and information about income taxes paid disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024. The Company is not early adopting this guidance. The Company is currently in the process of gathering the data required to be disclosed upon adoption. As the guidance is disclosure-related, adoption will not have any impact on the Company's Condensed Consolidated Financial Statements.
Disaggregation of Income Statement Expenses: In November 2024, the FASB issued final guidance designed to enhance financial reporting by requiring public business entities to disclose additional details regarding specific expense categories in the notes to the financial statements for both interim and annual periods. The new guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Company is not early adopting this guidance. The Company is currently evaluating the impact this guidance will have on its disclosures.
v3.24.3
Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue
During the second quarter of 2024, revenue from the BenefitWallet Portfolio and the Curbside Management and Public Safety businesses were reclassified to the Divestitures segment from the Commercial and Transportation segments, respectively. In addition, during the third quarter of 2024, revenue from the Casualty Claims Solutions business was reclassified to the Divestitures segment from the Commercial segment. All prior periods presented have been recast to reflect these changes. The following table provides information about disaggregated revenue by major service offering, the timing of revenue recognition and a reconciliation of the disaggregated revenue by reportable segment. Refer to Note 4 – Segment Reporting for additional information on the Company's reportable segments and Note 5 – Divestitures and Assets/Liabilities Held for Sale for additional information on the Company's divestitures.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Commercial:
Customer experience management$126 $144 $405 $463 
Business operations solutions131 126 400 388 
Healthcare claims and administration solutions53 49 162 155 
Human capital solutions75 78 225 239 
Total Commercial385 397 1,192 1,245 
Government:
Government healthcare solutions137 159 427 453 
Government services solutions118 131 331 371 
Total Government255 290 758 824 
Transportation:
Road usage charging & management solutions58 81 185 237 
Transit solutions83 61 240 157 
Commercial vehicles— 2 1 6 
Total Transportation141 144 426 400 
Divestitures26 101 180 300 
Total Consolidated Revenue$807 $932 $2,556 $2,769 
Timing of Revenue Recognition:
Point in time$24 $25 $80 $76 
Over time783 907 2,476 2,693 
Total Revenue$807 $932 $2,556 $2,769 

Contract Balances
The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are the Company’s rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Contract assets are transferred to Accounts receivable, net when the rights to consideration become unconditional. Unearned income includes payments received in advance of performance under the contract, which are realized when the associated revenue is recognized under the contract.
The following table provides information about the balances of the Company's contract assets, unearned income and receivables from contracts with customers:
(in millions)September 30, 2024December 31, 2023
Contract Assets (Liabilities)
Current contract assets$152 $178 
Long-term contract assets(1)
4 12 
Current unearned income(115)(91)
Long-term unearned income(2)
(53)(55)
Net Contract Assets (Liabilities)$(12)$44 
Accounts receivable, net$528 $559 
__________
(1)Presented in Other long-term assets in the Condensed Consolidated Balance Sheets.
(2)Presented in Other long-term liabilities in the Condensed Consolidated Balance Sheets.
Revenues of $12 million and $81 million were recognized during the three and nine months ended September 30, 2024, respectively, related to the Company's unearned income at December 31, 2023. Revenues of $8 million and $50 million were recognized during the three and nine months ended September 30, 2023, respectively, related to the Company's unearned income at December 31, 2022.
The Company had no material asset impairment charges related to contract assets for the three and nine months ended September 30, 2024 or 2023.
Transaction Price Allocated to the Remaining Performance Obligations
Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at September 30, 2024 was approximately $1.5 billion. The Company expects to recognize approximately 70% of this revenue over the next two years and the remainder thereafter.
v3.24.3
Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's reportable segments correspond to how it organizes and manages the business, as defined by the Company's Chief Executive Officer, who is also the Company's Chief Operating Decision Maker (the "CODM"). The Company's segments involve the delivery of business process solutions on behalf of its clients to improve cost, performance, and end-user experiences.
As described in Note 5 – Divestitures and Assets/Liabilities Held for Sale, the Company transferred or sold certain businesses to third parties in 2024 including (i) the BenefitWallet Portfolio, (ii) the Curbside Management and Public Safety Solutions businesses, and (iii) the Casualty Claims Solutions business. Accordingly, the results of these divested businesses, previously reported within the Commercial and Transportation segments, have been reclassified to the Divestitures segment. All prior periods presented have been recast to reflect these changes.
The Company's financial performance is based on Segment Profit (Loss) for its three reportable segments (Commercial, Government and Transportation), Divestitures and Unallocated Costs. Additionally, the Company's CODM does not evaluate operating segments using discrete asset information as a significant portion of the assets is managed at the total Company level.
Commercial: The Commercial segment provides business process services and customized solutions and services to clients in a variety of industries. Across the Commercial segment, the Company operates on its clients’ behalf to deliver mission-critical solutions and services to reduce costs, improve efficiencies and enhance performance for the Company's clients and deliver better experiences for their consumers and employees.
Government: The Government segment provides government-centric business process services to U.S. federal, state and local government agencies and foreign governments for public assistance, healthcare programs and administration, transaction processing and payment services. The solutions in this segment help governments provide constituents access to and delivery of benefits, respond to changing rules for eligibility and keep pace with increasing citizen expectations.
Transportation: The Transportation segment provides systems, support, and revenue-generating solutions to government transportation agencies. The Company delivers mission-critical mobility and digital payment solutions for public transit and road usage charging that streamline operations, increase revenue and reduce congestion while creating safe, seamless travel experiences for consumers while reducing impact on the environment.
Divestitures includes the Company's BenefitWallet Portfolio, the transfer of which was completed in the second quarter of 2024, its Curbside Management and Public Safety Solutions businesses which it sold in the second quarter of 2024, and its Casualty Claims business, which it sold in the third quarter of 2024. Refer to Note 5 – Divestitures and Assets/Liabilities Held for Sale for additional information.
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.
Selected financial information for the Company's segments was as follows:
Three Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$385 $255 $141 $26 $— $807 
Segment profit (loss)$15 $50 $(6)$3 $(70)$(8)
2023
Revenue$397 $290 $144 $101 $— $932 
Segment profit (loss)$(19)$84 $(5)$26 $(75)$11 
Nine Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$1,192 $758 $426 $180 $— $2,556 
Segment profit (loss)$48 $130 $(15)$35 $(213)$(15)
2023
Revenue$1,245 $824 $400 $300 $— $2,769 
Segment profit (loss)$13 $224 $(11)$76 $(224)$78 

(in millions)Three Months Ended
September 30,		Nine Months Ended
September 30,
Segment Profit (Loss) Reconciliation to Income (Loss) Before Income Taxes2024202320242023
Income (Loss) Before Income Taxes$159 $(313)$586 $(328)
Reconciling items:
Amortization of acquired intangible assets1 1 4 5 
Restructuring and related costs4 7 21 49 
Interest expense16 28 62 82 
Goodwill impairment— 287 — 287 
(Gain) loss on divestitures and transaction costs, net(188)3 (696)8 
Litigation settlements (recoveries), net1 — 6 (22)
Loss on extinguishment of debt1 — 6 — 
Other (income) expenses, net(2)(2)(4)(3)
Segment Profit (Loss)$(8)$11 $(15)$78 
Refer to Note 3 – Revenue for additional information on disaggregated revenues of the reportable segments.
v3.24.3
Divestitures and Assets/Liabilities Held for Sale
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures and Assets/Liabilities Held for Sale Divestitures and Assets/Liabilities Held for Sale
The Company entered into various agreements to transfer or sell certain portfolios and businesses in 2023 and 2024. Each of these transactions is described below. As applicable, the assets and liabilities held for sale for each transaction are also presented below.
Transfer of BenefitWallet Portfolio
In September 2023, the Company entered into a Custodial Transfer and Asset Purchase Agreement to transfer its BenefitWallet health savings account and medical savings account portfolio (collectively, the "BenefitWallet Portfolio") to HealthEquity, Inc. ("HealthEquity") for an aggregate purchase price of $425 million (the "Purchase Price"), subject to customary purchase price adjustments. As of December 31, 2023, there were no asset or liability balances related to the BenefitWallet Portfolio that would require disclosure as assets and liabilities held for sale on the Company's Condensed Consolidated Balance Sheet.
The BenefitWallet transfer closed in multiple tranches. The first tranche closed on March 7, 2024 with the Company receiving $164 million as the pro-rata share of the Purchase Price. On April 11, 2024, the second tranche closed and the Company received $85 million as the pro-rata share of the Purchase Price. The third and final tranche closed on May 14, 2024 and the Company received $176 million comprising the balance of the aggregate purchase price of $425 million. The Company recorded a gain on the transfer of $425 million less costs to sell of $13 million, which is recorded in Gain (loss) on divestitures and transaction costs, net. The Company recorded $101 million of income tax expense in connection with the BenefitWallet transfer.
The BenefitWallet Portfolio generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$— $30 $30 $89 
Pre-tax profit— 22 20 67 
Divestiture of Curbside Management and Public Safety Solutions Businesses
In December 2023, the Company signed a definitive agreement to sell its Curbside Management and Public Safety Solutions businesses to Modaxo, a division of Constellation Software Inc., for $230 million (plus the assumption of certain indebtedness), subject to customary purchase price adjustments. The assets and liabilities of these businesses (collectively referred to as the "Curbside Disposal Group") were reclassified as held for sale and measured at the lower of carrying value or fair value less costs to sell.
On April 30, 2024, Conduent completed the sale of this business. The Company received $174 million of cash consideration, a $50 million non-interest bearing note payable to the Company due on April 30, 2025, and other amounts receivable of $56 million related to: (i) the reimbursement for payments made by the Company related to finance lease liabilities and related costs; (ii) the reimbursement for the purchase of certain equipment made by the Company on the buyer's behalf; and (iii) customary closing date purchase price holdbacks related to net asset targets, all of which are payable in the fourth quarter of 2024. The sale is subject to customary purchase price adjustments expected to be settled in the fourth quarter of 2024. In the second quarter of 2024, the Company recorded a gain on the sale of $108 million less costs to sell of $4 million, which is recorded in Gain (loss) on divestitures and transaction costs. The Company recorded $30 million of income tax expense in connection with the divestiture.
The Curbside Disposal Group generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$— $34 $50 $101 
Pre-tax profit— 2 6 3 
Divestiture of Casualty Claims Solutions Business
On 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. On September 1, 2024, the sale was completed and MedRisk paid Conduent $224 million of cash consideration, subject to certain post-closing adjustments. These adjustments are expected to be finalized in the first quarter of 2025 and are not expected to be material.
In the third quarter of 2024, the Company recorded a gain on the sale of $195 million less costs to sell of $7 million, which is recorded in Gain (loss) on divestitures and transaction costs. Additionally, the Company recorded $35 million of income tax expense related to the divestiture.
The Casualty Disposal Group generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$26 $38 $100 $111 
Pre-tax profit3 2 6 5 
Assets/Liabilities Held for Sale
As noted above, the BenefitWallet Portfolio did not have any associated assets and liabilities to disclose as held for sale in the Company's Condensed Consolidated Balance Sheet at December 31, 2023. The divestiture of the Curbside Disposal Group was announced in December 2023 and completed in the second quarter of 2024. Accordingly, the assets and liabilities of these businesses were disclosed as held for sale as of December 31, 2023.
In the second quarter of 2024, the assets and liabilities of the Casualty Disposal Group were disclosed as held for sale as of June 30, 2024. Since the sale of the Casualty Disposal Group was completed during the third quarter of 2024, no associated assets or liabilities are reported as held for sale as of September 30, 2024.
The following is a summary of the major categories of assets and liabilities that have been reclassified as held for sale for the Curbside Disposal Group:
(in millions)December 31, 2023
Accounts Receivable, net$49 
Other current assets3 
Land, building and equipment, net52 
Operating lease right-of-use assets6 
Intangible assets, net— 
Goodwill35 
Other long-term assets35 
Total Assets held for sale$180 
Current portion of long-term debt$5 
Accounts payable11 
Accrued compensation and benefits costs2 
Unearned income4 
Other current liabilities9 
Long-term debt19 
Operating lease liabilities4 
Other long-term liabilities4 
Total Liabilities held for sale$58 
v3.24.3
Restructuring Programs and Related Costs
 9 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Programs and Related Costs Restructuring Programs and Related Costs
The Company engages in a series of restructuring programs related to exiting certain activities, downsizing its employee base, outsourcing certain internal functions and engaging in other actions designed to reduce its cost structure and improve productivity. The implementation of the Company's operational efficiency improvement initiatives has reduced the Company's real estate footprint across all geographies and segments resulting in lease right-of-use ("ROU") asset impairments and other related costs. Also included in Restructuring and related costs are incremental, non-recurring costs related to the consolidation of the Company's data centers and bringing certain technology functions in-house, which totaled $1 million and $3 million for the three months ended September 30, 2024 and 2023, respectively, and $4 million and $7 million for the nine months ended September 30, 2024 and 2023, respectively. Management continues to evaluate the Company's businesses and, in the future, there may be additional provisions for new plan initiatives and/or changes in previously recorded estimates as payments are made, or actions are completed.
Costs associated with restructuring, including employee severance and lease termination costs, are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility. In those geographies where the Company has either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, it recognizes employee severance costs when they are both probable and reasonably estimable. Asset impairment costs related to the reduction of the Company's real estate footprint include impairment of operating lease ROU assets and associated leasehold improvements.
A summary of the Company's restructuring program activity during the nine months ended September 30, 2024 and 2023 is as follows:
(in millions)Severance and Related CostsTermination and Other CostsAsset ImpairmentsTotal
Accrued Balance at December 31, 2023$9 $1 $— $10 
Provision9 10 2 21 
Changes in estimates— — — — 
Total Net Current Period Charges(1)
9 10 2 21 
Charges against reserve and currency(15)(11)(2)(28)
Accrued Balance at September 30, 2024$3 $— $— $3 
(in millions)Severance and Related CostsTermination and Other CostsAsset ImpairmentsTotal
Accrued Balance at December 31, 2022$10 $— $— $10 
Provision25 18 7 50 
Changes in estimates(1)— — (1)
Total Net Current Period Charges(1)
24 18 7 49 
Charges against reserve and currency(24)(17)(7)(48)
Accrued Balance at September 30, 2023$10 $1 $— $11 
__________
(1)Represents amounts recognized within the Consolidated Statements of Income (Loss) for the years shown.

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by reportable and non-reportable segment:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Commercial$1 $2 $4 $25 
Government— — — — 
Transportation— — 1 — 
Divestitures— — — — 
Unallocated Costs(1)
3 5 16 24 
Total Net Restructuring Charges$4 $7 $21 $49 
__________
(1)Represents costs related to the consolidation of the Company's data centers, operating lease ROU assets impairment, termination and other costs not allocated to the segments.
v3.24.3
Debt
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt was as follows:
(in millions)September 30, 2024December 31, 2023
Term loan A due 2026$191 $238 
Term loan B due 2028— 505 
Senior notes due 2029520 520 
Finance lease obligations29 22 
Other13 15 
Principal debt balance753 1,300 
Debt issuance costs and unamortized discounts(9)(18)
Less: current maturities(26)(34)
Total Long-term Debt$718 $1,248 

As of September 30, 2024, the Company had no outstanding borrowings under its $550 million revolving credit facility (the "Revolver"). Additionally, the Company utilized $11 million of the Revolver to issue letters of credit as of September 30, 2024. The net Revolver available to be drawn upon as of September 30, 2024 was $539 million.
In March 2024, the Company utilized the proceeds from the closing of the first tranche of the BenefitWallet Transfer to voluntarily prepay $164 million of principal of the Senior Secured Term Loan B due 2028 ("Term Loan B").
In April and May 2024, the Company voluntarily prepaid $300 million of principal of the Term Loan B.
In September 2024, the Company voluntarily prepaid (i) the entire remaining outstanding balance of the Term Loan B in an amount equal to $38 million and (ii) $37 million of the Senior Secured Term Loan A due 2026 ("Term Loan A").
In connection with these voluntary prepayments, the Company wrote-off related debt issuance costs of $1 million and $6 million for the three and nine months ended September 30, 2024, respectively, which is included in Loss on extinguishment of debt in the Condensed Consolidated Statements of Income (Loss).
At September 30, 2024, the Company was in compliance with all debt covenants related to the borrowings in the table above.
v3.24.3
Financial Instruments
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
The Company is a global company that is exposed to foreign currency exchange rate fluctuations in the normal course of its business. As a part of the Company's foreign exchange risk management strategy, the Company uses derivative instruments, primarily forward contracts, to hedge the funding of foreign entities which have a non-dollar functional currency, thereby reducing volatility of earnings or protecting fair values of assets and liabilities.
At September 30, 2024 and December 31, 2023, the Company had outstanding forward exchange contracts with gross notional values of $181 million and $148 million, respectively. At September 30, 2024, approximately 76% of these contracts mature within three months, 9% in three to six months, 11% in six to twelve months and 4% 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 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.
v3.24.3
Fair Value of Financial Assets and Liabilities
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities 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.
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 Basis
The 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, 2024December 31, 2023
Assets:
Foreign exchange contracts - forward$1 $1 
Total Assets$1 $1 
Liabilities:
Foreign exchange contracts - forward$— $— 
Total Liabilities$— $— 
Summary of Other Financial Assets and Liabilities
The estimated fair values of other financial assets and liabilities were as follows:
 September 30, 2024December 31, 2023
(in millions)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Liabilities:
Long-term debt$718 $697 $1,248 $1,191 
Liabilities held for sale$— $— $58 $58 
The fair value amounts for Cash and cash equivalents, Restricted cash, Accounts receivable, net and Short-term debt approximate carrying amounts due to the short-term maturities of these instruments.
The fair value of Long-term debt was estimated using quoted market prices for identical or similar instruments (Level 2 inputs).
v3.24.3
Employee Benefit Plans
 9 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
The Company has post-retirement pension, savings and investment plans in several countries, including the U.S., India and the Philippines. In many instances, employees participating in defined benefit pension plans that have been amended to freeze future service accruals were transitioned to an enhanced defined contribution plan. In these plans, employees are permitted to contribute a portion of their salaries and bonuses to the plans. The Company, at its discretion, matches a portion of employee contributions.
The Company recognized an expense related to its defined contribution plans of $2 million and $2 million for the three months ended September 30, 2024 and 2023, respectively, and $8 million and $8 million for the nine months ended September 30, 2024 and 2023, respectively. The balance sheet and income statement impacts of any remaining defined benefit plans are immaterial for all periods presented in these Condensed Consolidated Financial Statements.
v3.24.3
Accumulated Other Comprehensive Loss ("AOCL")
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Loss ("AOCL") Accumulated Other Comprehensive Loss ("AOCL")
Below are the balances and changes in AOCL(1):
(in millions)Currency Translation AdjustmentsGains (Losses) on Cash Flow HedgesDefined Benefit Pension ItemsTotal
Balance at December 31, 2023$(441)$2 $4 $(435)
Other comprehensive income (loss)(14)— — (14)
Balance at September 30, 2024$(455)$2 $4 $(449)
(in millions)Currency Translation AdjustmentsGains (Losses) on Cash Flow HedgesDefined Benefit Pension ItemsTotal
Balance at December 31, 2022$(472)$1 $5 $(466)
Other comprehensive income (loss)3 — — 3 
Balance at September 30, 2023$(469)$1 $5 $(463)
__________
(1)All amounts are net of tax. Tax effects were immaterial.
v3.24.3
Commitment and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Contingencies and Litigation Contingencies and Litigation
As more fully discussed below, the Company is involved in a variety of claims, lawsuits, investigations and proceedings concerning a variety of matters, including: governmental entity contracting, servicing and procurement law; intellectual property law; employment law; commercial and contracts law; the Employee Retirement Income Security Act ("ERISA"); and other laws and regulations. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing its litigation and regulatory matters using available information. The Company develops its view on estimated losses in consultation with outside counsel handling its defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause a change in the Company's determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters result in a final adverse judgment or be settled for significant amounts in excess of any accrual for such matter or matters, this could have a material adverse effect on the Company's results of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement occurs. The Company believes it has recorded adequate provisions for any such matters as of September 30, 2024. Litigation is inherently unpredictable, and it is not possible to predict the ultimate outcome of these matters and such outcome in any such matter could be more than any amounts accrued and could be material to the Company's results of operations, cash flows or financial position in any reporting period.
Additionally, guarantees, indemnifications and claims arise during the ordinary course of business from relationships with suppliers, customers and non-consolidated affiliates when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Nonperformance under a contract could trigger an obligation of the Company. These potential claims include actions based upon alleged exposures to products, real estate, intellectual property (such as patents), environmental matters and other indemnifications. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the outcome of these claims. However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Company's consolidated financial position or liquidity. As of September 30, 2024, the Company had accrued its estimate of liability incurred under its indemnification arrangements and guarantees.
Litigation Against the Company
Skyview Capital LLC and Continuum Global Solutions, LLC v. Conduent Business Services, LLC: On February 3, 2020, plaintiffs Skyview Capital LLC and Continuum Global Solutions LLC (collectively "Skyview") filed a lawsuit in the Supreme Court of the State of New York, County of New York against Conduent Business Services, LLC, a wholly-owned subsidiary of the Company ("CBS"). The lawsuit relates to the sale of a portion of CBS's select standalone customer care call center business to plaintiffs, which sale closed in February 2019. Under the terms of the sale agreement, CBS received approximately $23 million in principal amount of promissory notes from plaintiffs (the "Notes"). The lawsuit alleges various causes of action in connection with the acquisition, including: indemnification for breach of representation and warranty; indemnification for breach of covenant; and fraud. Plaintiffs alleged that their obligation to mitigate damages and their contractual right of set-off permits them to withhold and deduct from any amounts that are owed to CBS under the Notes, and plaintiffs sought a judgment that they have no obligation to pay the Notes. On August 20, 2020, CBS filed counterclaims against Skyview seeking the outstanding balance on the Notes, the amounts owed for operating certain Jamaica-based call centers on plaintiffs' behalf pending closing (the "Jamaica Deferred Closing"), other transition services agreement ("TSA") and TSA amendments, and late rent payment obligations. CBS also moved to dismiss Skyview’s claims in 2020. In May 2021, the court denied the motion and allowed the claims to proceed. Fact and expert discovery have concluded and the parties filed summary judgment motions on July 24, 2023. On December 5, 2023, the court heard oral argument on the parties’ cross-motions for summary judgment, and rendered its decision on December 8, 2023, finding there are certain material issues of fact that require trial, and also entering partial summary judgment for each side. On January 5, 2024, CBS filed its notice of appeal of the portion of the ruling that did not grant its motion for summary judgment in its entirety and that granted certain limited relief in favor of plaintiffs. On January 23, 2024, Skyview filed its own notice of appeal, challenging the decision granting a portion of CBS’s counterclaims. Under the present schedule, the parties' appeals will be fully briefed as of November 8, 2024. Oral argument has not yet been scheduled.
In July 2024, Skyview informed CBS of its intention to sell a portion of its call center business. The parties reached an agreement on August 8, 2024, under which, contemporaneously with the closing of such a transaction, Skyview will pay the outstanding principal plus interest due on the outstanding Notes, fully discharging Skyview's obligations under the Notes, and will pay certain of CBS's litigation costs.
On September 24, 2024, Skyview and the buyer, Everise, announced a signed and binding asset purchase agreement. Following regulatory review, the transaction is expected to close in the fourth quarter of 2024, at which point Skyview will pay CBS the outstanding principal and interest due on the Notes. Skyview will then withdraw its arguments in the litigation regarding its purported right to set-off amounts due under the Notes, though Skyview's claims for alleged fraud, breach of covenant, and breach of representation and warranty otherwise will be unaffected. In addition, CBS will dismiss its two counterclaims related to the Notes. CBS's remaining counterclaims related to the Jamaica Deferred Closing, the TSAs and rent payment obligations will be unaffected.
CBS continues to deny all of plaintiffs' allegations, believes that it has strong defenses to all of plaintiffs’ claims, and will continue to defend the litigation vigorously. The Company is not able to determine or predict the ultimate outcome of this proceeding or reasonably provide an estimate or range of estimates of the possible outcome or loss, if any, in excess of currently recorded reserves.
Other Contingencies
Certain contracts, primarily in the Company's Government and Transportation segments, require the Company to provide a surety bond or a letter of credit as a guarantee of performance. As of September 30, 2024, the Company had $614 million of outstanding surety bonds issued to secure its performance of contractual obligations with its clients, and $177 million of outstanding letters of credit issued to secure the Company's performance of contractual obligations to its clients as well as other corporate obligations. In general, the Company would only be liable for these guarantees in the event of default in the Company's performance of its obligations under each contract. The Company believes it has sufficient capacity in the surety markets and liquidity from its cash flow and its various credit arrangements to allow it to respond to future requests for proposals that require such credit support.
v3.24.3
Common Stock and Preferred Stock
 9 Months Ended
Sep. 30, 2024
Temporary Equity Disclosure [Abstract]  
Common Stock and Preferred Stock Common Stock and Preferred Stock
Icahn Share Repurchase
On June 8, 2024, the Company entered into a purchase agreement (the "Purchase Agreement") with Carl C. Icahn and certain of his affiliates ("Icahn Parties") pursuant to which the Company agreed to purchase an aggregate of approximately 38 million shares of the Company’s common stock, at a price of $3.47 per share, the closing price on June 7, 2024, the last full trading day prior to the execution of the Purchase Agreement, for an aggregate purchase price of approximately $132 million. The purchase was completed and settled on June 10, 2024, and was funded through a combination of cash on hand and a drawdown under the Company’s Revolver, which has since been repaid.
Series A Preferred Stock
In December 2016, the Company issued 120,000 shares of Series A convertible perpetual preferred stock with an aggregate liquidation preference of $120 million and an initial fair value of $142 million. The convertible preferred stock earns quarterly cash dividends at a rate of 8% per year ($9.6 million per year). Each share of convertible preferred stock is convertible at any time, at the option of the holder, into 44.9438 shares of common stock for a total of 5,393,000 shares (reflecting an initial conversion price of approximately $22.25 per share of common stock), subject to customary anti-dilution adjustments.
v3.24.3
Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share Earnings (Loss) per Share
The Company did not declare any common stock dividends in the periods presented.
The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions, except per share data in whole dollars and shares in thousands)2024202320242023
Basic Net Earnings (Loss) per Share:
Net Income (Loss)$123 $(289)$438 $(302)
Dividend - Preferred Stock(2)(2)(7)(7)
Adjusted Net Income (Loss) Available to Common Shareholders - Basic$121 $(291)$431 $(309)
Diluted Net Earnings (Loss) per Share:
Net Income (Loss)$123 $(289)$438 $(302)
Dividend - Preferred Stock— (2)— (7)
Adjusted Net Income (Loss) Available to Common Shareholders - Diluted$123 $(291)$438 $(309)
Weighted Average Common Shares Outstanding - Basic161,684 217,348 189,107 217,992 
Common Shares Issuable With Respect To:
Restricted Stock And Performance Units / Shares4,077 — 2,473 — 
8% Convertible Preferred Stock5,393 — 5,393 — 
Weighted Average Common Shares Outstanding - Diluted171,154 217,348 196,973 217,992 
Net Earnings (Loss) per Share:
Basic$0.75 $(1.34)$2.28 $(1.42)
Diluted$0.72 $(1.34)$2.22 $(1.42)
The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands):
Restricted stock and performance shares/units10,288 12,297 10,329 12,297 
Convertible preferred stock— 5,393 — 5,393 
Total Anti-Dilutive and Contingently Issuable Securities10,288 17,690 10,329 17,690 
v3.24.3
Supplementary Financial Information
 9 Months Ended
Sep. 30, 2024
Supplementary Financial Information [Abstract]  
Supplementary Financial Information Supplementary Financial Information
The components of Other assets and Other liabilities were as follows:
(in millions)September 30, 2024December 31, 2023
Other Current Assets
Prepaid expenses$106 $70 
Income taxes receivable8 38 
Value-added tax (VAT) receivable7 8 
Restricted cash11 21 
Net receivables from buyers of divested businesses128 — 
Other112 103 
Total Other Current Assets$372 $240 
Other Current Liabilities
Accrued liabilities to vendors$146 $188 
Litigation related accruals12 6 
Current operating lease liabilities52 54 
Restructuring liabilities3 10 
Income tax payable75 1 
Other taxes payable16 19 
Accrued interest13 6 
Other43 44 
Total Other Current Liabilities$360 $328 
Other Long-term Assets
Internal use software, net$110 $143 
Deferred contract costs, net120 91 
Product software, net76 92 
Deferred tax assets22 21 
Other63 89 
Total Other Long-term Assets$391 $436 
Other Long-term Liabilities
Income tax liabilities1 6 
Unearned income53 55 
Other24 23 
Total Other Long-term Liabilities$78 $84 
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Recent Accounting Pronouncements (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. The year-end Condensed Consolidated Balance Sheet was derived from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position, results of operations and cash flows have been made. These adjustments consist of normal recurring items. The interim results of operations are not necessarily indicative of the results of the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
In the first quarter of 2023, the Company identified an error and recorded an out-of-period adjustment to correct the recognition of revenue on a Government segment contract that originated in 2020 and impacted all quarterly periods through December 31, 2022. This adjustment resulted in a reduction to revenue and income (loss) before income taxes of $7 million and a corresponding decrease to accounts receivable of $1 million and an increase to other current liabilities of $6 million in the first quarter of 2023. The Company evaluated the impact of the out-of-period adjustment and concluded it was not material to any previously issued interim or annual consolidated financial statements and the adjustment was not material to the year ending December 31, 2023.
The Company has evaluated subsequent events through November 6, 2024, and no material subsequent events were identified.
Use of Estimates
Use of Estimates
Preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, the Company evaluates its estimates, including those related to fair values of financial instruments, goodwill and intangible assets, income taxes and contingent liabilities, among others. The Company bases its estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
New Accounting Standards Adopted and To Be Adopted
New Accounting Standards Adopted
The Company has not adopted any new accounting standards in 2024 that had a material impact on its Consolidated Financial Statements.
New Accounting Standards To Be Adopted
Segment Reporting: In November 2023, the Financial Accounting Standards Board ("FASB") issued final guidance that expands reportable segment disclosures, particularly incremental segment expense disclosures. This guidance is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is not early adopting this guidance. The Company has gathered the data required to be disclosed upon adoption. As the guidance is disclosure-related, adoption will not have any impact on the Company's Condensed Consolidated Financial Statements.
Income Taxes: In December 2023, the FASB issued final guidance designed to improve income tax disclosures, particularly disclosures around business entities' income tax rate reconciliation and income taxes paid. The guidance requires consistent categories and greater disaggregation of information in the reconciliation of an entity's statutory tax rate to its effective tax rate and information about income taxes paid disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024. The Company is not early adopting this guidance. The Company is currently in the process of gathering the data required to be disclosed upon adoption. As the guidance is disclosure-related, adoption will not have any impact on the Company's Condensed Consolidated Financial Statements.
Disaggregation of Income Statement Expenses: In November 2024, the FASB issued final guidance designed to enhance financial reporting by requiring public business entities to disclose additional details regarding specific expense categories in the notes to the financial statements for both interim and annual periods. The new guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Company is not early adopting this guidance. The Company is currently evaluating the impact this guidance will have on its disclosures.
v3.24.3
Revenue (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue by Major Service Line The following table provides information about disaggregated revenue by major service offering, the timing of revenue recognition and a reconciliation of the disaggregated revenue by reportable segment. Refer to Note 4 – Segment Reporting for additional information on the Company's reportable segments and Note 5 – Divestitures and Assets/Liabilities Held for Sale for additional information on the Company's divestitures.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Commercial:
Customer experience management$126 $144 $405 $463 
Business operations solutions131 126 400 388 
Healthcare claims and administration solutions53 49 162 155 
Human capital solutions75 78 225 239 
Total Commercial385 397 1,192 1,245 
Government:
Government healthcare solutions137 159 427 453 
Government services solutions118 131 331 371 
Total Government255 290 758 824 
Transportation:
Road usage charging & management solutions58 81 185 237 
Transit solutions83 61 240 157 
Commercial vehicles— 2 1 6 
Total Transportation141 144 426 400 
Divestitures26 101 180 300 
Total Consolidated Revenue$807 $932 $2,556 $2,769 
Timing of Revenue Recognition:
Point in time$24 $25 $80 $76 
Over time783 907 2,476 2,693 
Total Revenue$807 $932 $2,556 $2,769 
Schedule of Contract Assets, Unearned Income and Receivables from Contracts with Customers
The following table provides information about the balances of the Company's contract assets, unearned income and receivables from contracts with customers:
(in millions)September 30, 2024December 31, 2023
Contract Assets (Liabilities)
Current contract assets$152 $178 
Long-term contract assets(1)
4 12 
Current unearned income(115)(91)
Long-term unearned income(2)
(53)(55)
Net Contract Assets (Liabilities)$(12)$44 
Accounts receivable, net$528 $559 
__________
(1)Presented in Other long-term assets in the Condensed Consolidated Balance Sheets.
(2)Presented in Other long-term liabilities in the Condensed Consolidated Balance Sheets.
v3.24.3
Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Schedule of reportable segments
Selected financial information for the Company's segments was as follows:
Three Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$385 $255 $141 $26 $— $807 
Segment profit (loss)$15 $50 $(6)$3 $(70)$(8)
2023
Revenue$397 $290 $144 $101 $— $932 
Segment profit (loss)$(19)$84 $(5)$26 $(75)$11 
Nine Months Ended
September 30,
(in millions)CommercialGovernmentTransportationDivestituresUnallocated CostsTotal
2024
Revenue$1,192 $758 $426 $180 $— $2,556 
Segment profit (loss)$48 $130 $(15)$35 $(213)$(15)
2023
Revenue$1,245 $824 $400 $300 $— $2,769 
Segment profit (loss)$13 $224 $(11)$76 $(224)$78 
Reconciliation to pre-tax income (loss)
(in millions)Three Months Ended
September 30,		Nine Months Ended
September 30,
Segment Profit (Loss) Reconciliation to Income (Loss) Before Income Taxes2024202320242023
Income (Loss) Before Income Taxes$159 $(313)$586 $(328)
Reconciling items:
Amortization of acquired intangible assets1 1 4 5 
Restructuring and related costs4 7 21 49 
Interest expense16 28 62 82 
Goodwill impairment— 287 — 287 
(Gain) loss on divestitures and transaction costs, net(188)3 (696)8 
Litigation settlements (recoveries), net1 — 6 (22)
Loss on extinguishment of debt1 — 6 — 
Other (income) expenses, net(2)(2)(4)(3)
Segment Profit (Loss)$(8)$11 $(15)$78 
v3.24.3
Divestitures and Assets/Liabilities Held for Sale (Tables)
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups
The BenefitWallet Portfolio generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$— $30 $30 $89 
Pre-tax profit— 22 20 67 
The Curbside Disposal Group generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$— $34 $50 $101 
Pre-tax profit— 2 6 3 
The Casualty Disposal Group generated revenue and pre-tax profit as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenue$26 $38 $100 $111 
Pre-tax profit3 2 6 5 
The following is a summary of the major categories of assets and liabilities that have been reclassified as held for sale for the Curbside Disposal Group:
(in millions)December 31, 2023
Accounts Receivable, net$49 
Other current assets3 
Land, building and equipment, net52 
Operating lease right-of-use assets6 
Intangible assets, net— 
Goodwill35 
Other long-term assets35 
Total Assets held for sale$180 
Current portion of long-term debt$5 
Accounts payable11 
Accrued compensation and benefits costs2 
Unearned income4 
Other current liabilities9 
Long-term debt19 
Operating lease liabilities4 
Other long-term liabilities4 
Total Liabilities held for sale$58 
v3.24.3
Restructuring Programs and Related Costs (Tables)
 9 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Program Activity
A summary of the Company's restructuring program activity during the nine months ended September 30, 2024 and 2023 is as follows:
(in millions)Severance and Related CostsTermination and Other CostsAsset ImpairmentsTotal
Accrued Balance at December 31, 2023$9 $1 $— $10 
Provision9 10 2 21 
Changes in estimates— — — — 
Total Net Current Period Charges(1)
9 10 2 21 
Charges against reserve and currency(15)(11)(2)(28)
Accrued Balance at September 30, 2024$3 $— $— $3 
(in millions)Severance and Related CostsTermination and Other CostsAsset ImpairmentsTotal
Accrued Balance at December 31, 2022$10 $— $— $10 
Provision25 18 7 50 
Changes in estimates(1)— — (1)
Total Net Current Period Charges(1)
24 18 7 49 
Charges against reserve and currency(24)(17)(7)(48)
Accrued Balance at September 30, 2023$10 $1 $— $11 
__________
(1)Represents amounts recognized within the Consolidated Statements of Income (Loss) for the years shown.
Total Costs incurred with Restructuring programs, by segment
The following table summarizes the total amount of costs incurred in connection with these restructuring programs by reportable and non-reportable segment:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Commercial$1 $2 $4 $25 
Government— — — — 
Transportation— — 1 — 
Divestitures— — — — 
Unallocated Costs(1)
3 5 16 24 
Total Net Restructuring Charges$4 $7 $21 $49 
__________
(1)Represents costs related to the consolidation of the Company's data centers, operating lease ROU assets impairment, termination and other costs not allocated to the segments.
v3.24.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Long-term debt was as follows:
(in millions)September 30, 2024December 31, 2023
Term loan A due 2026$191 $238 
Term loan B due 2028— 505 
Senior notes due 2029520 520 
Finance lease obligations29 22 
Other13 15 
Principal debt balance753 1,300 
Debt issuance costs and unamortized discounts(9)(18)
Less: current maturities(26)(34)
Total Long-term Debt$718 $1,248 
v3.24.3
Fair Value of Financial Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair value of financial assets and liabilities
The 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, 2024December 31, 2023
Assets:
Foreign exchange contracts - forward$1 $1 
Total Assets$1 $1 
Liabilities:
Foreign exchange contracts - forward$— $— 
Total Liabilities$— $— 
Estimated fair values of financial assets and liabilities not measured at fair value on a recurring basis
The estimated fair values of other financial assets and liabilities were as follows:
 September 30, 2024December 31, 2023
(in millions)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Liabilities:
Long-term debt$718 $697 $1,248 $1,191 
Liabilities held for sale$— $— $58 $58 
v3.24.3
Accumulated Other Comprehensive Loss ("AOCL") (Tables)
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
Below are the balances and changes in AOCL(1):
(in millions)Currency Translation AdjustmentsGains (Losses) on Cash Flow HedgesDefined Benefit Pension ItemsTotal
Balance at December 31, 2023$(441)$2 $4 $(435)
Other comprehensive income (loss)(14)— — (14)
Balance at September 30, 2024$(455)$2 $4 $(449)
(in millions)Currency Translation AdjustmentsGains (Losses) on Cash Flow HedgesDefined Benefit Pension ItemsTotal
Balance at December 31, 2022$(472)$1 $5 $(466)
Other comprehensive income (loss)3 — — 3 
Balance at September 30, 2023$(469)$1 $5 $(463)
__________
(1)All amounts are net of tax. Tax effects were immaterial.
v3.24.3
Earnings (Loss) Per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions, except per share data in whole dollars and shares in thousands)2024202320242023
Basic Net Earnings (Loss) per Share:
Net Income (Loss)$123 $(289)$438 $(302)
Dividend - Preferred Stock(2)(2)(7)(7)
Adjusted Net Income (Loss) Available to Common Shareholders - Basic$121 $(291)$431 $(309)
Diluted Net Earnings (Loss) per Share:
Net Income (Loss)$123 $(289)$438 $(302)
Dividend - Preferred Stock— (2)— (7)
Adjusted Net Income (Loss) Available to Common Shareholders - Diluted$123 $(291)$438 $(309)
Weighted Average Common Shares Outstanding - Basic161,684 217,348 189,107 217,992 
Common Shares Issuable With Respect To:
Restricted Stock And Performance Units / Shares4,077 — 2,473 — 
8% Convertible Preferred Stock5,393 — 5,393 — 
Weighted Average Common Shares Outstanding - Diluted171,154 217,348 196,973 217,992 
Net Earnings (Loss) per Share:
Basic$0.75 $(1.34)$2.28 $(1.42)
Diluted$0.72 $(1.34)$2.22 $(1.42)
The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands):
Restricted stock and performance shares/units10,288 12,297 10,329 12,297 
Convertible preferred stock— 5,393 — 5,393 
Total Anti-Dilutive and Contingently Issuable Securities10,288 17,690 10,329 17,690 
v3.24.3
Supplementary Financial Information (Tables)
 9 Months Ended
Sep. 30, 2024
Supplementary Financial Information [Abstract]  
Supplementary Financial Information Table
The components of Other assets and Other liabilities were as follows:
(in millions)September 30, 2024December 31, 2023
Other Current Assets
Prepaid expenses$106 $70 
Income taxes receivable8 38 
Value-added tax (VAT) receivable7 8 
Restricted cash11 21 
Net receivables from buyers of divested businesses128 — 
Other112 103 
Total Other Current Assets$372 $240 
Other Current Liabilities
Accrued liabilities to vendors$146 $188 
Litigation related accruals12 6 
Current operating lease liabilities52 54 
Restructuring liabilities3 10 
Income tax payable75 1 
Other taxes payable16 19 
Accrued interest13 6 
Other43 44 
Total Other Current Liabilities$360 $328 
Other Long-term Assets
Internal use software, net$110 $143 
Deferred contract costs, net120 91 
Product software, net76 92 
Deferred tax assets22 21 
Other63 89 
Total Other Long-term Assets$391 $436 
Other Long-term Liabilities
Income tax liabilities1 6 
Unearned income53 55 
Other24 23 
Total Other Long-term Liabilities$78 $84 
v3.24.3
Basis of Presentation (Details)
associate in Thousands, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
associate
Sep. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Sep. 30, 2024
USD ($)
associate
Sep. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Number of associates on global team | associate 55     55    
Revenue $ (807) $ (932)   $ (2,556) $ (2,769)  
Income (Loss) Before Income Taxes (159) $ 313   (586) $ 328  
Accounts receivable, net (528)     (528)   $ (559)
Other current liabilities $ 360     $ 360   $ 328
Revision of Prior Period, Error Correction, Adjustment            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Revenue     $ 7      
Income (Loss) Before Income Taxes     7      
Accounts receivable, net     1      
Other current liabilities     $ 6      
v3.24.3
Revenue - Disaggregated Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Revenue $ 807 $ 932 $ 2,556 $ 2,769
Point in time        
Disaggregation of Revenue [Line Items]        
Revenue 24 25 80 76
Over time        
Disaggregation of Revenue [Line Items]        
Revenue 783 907 2,476 2,693
Commercial:        
Disaggregation of Revenue [Line Items]        
Revenue 385 397 1,192 1,245
Government:        
Disaggregation of Revenue [Line Items]        
Revenue 255 290 758 824
Transportation:        
Disaggregation of Revenue [Line Items]        
Revenue 141 144 426 400
Divestitures | Divestitures        
Disaggregation of Revenue [Line Items]        
Revenue 26 101 180 300
Customer experience management | Commercial:        
Disaggregation of Revenue [Line Items]        
Revenue 126 144 405 463
Business operations solutions | Commercial:        
Disaggregation of Revenue [Line Items]        
Revenue 131 126 400 388
Healthcare claims and administration solutions | Commercial:        
Disaggregation of Revenue [Line Items]        
Revenue 53 49 162 155
Human capital solutions | Commercial:        
Disaggregation of Revenue [Line Items]        
Revenue 75 78 225 239
Government healthcare solutions | Government:        
Disaggregation of Revenue [Line Items]        
Revenue 137 159 427 453
Government services solutions | Government:        
Disaggregation of Revenue [Line Items]        
Revenue 118 131 331 371
Road usage charging & management solutions | Transportation:        
Disaggregation of Revenue [Line Items]        
Revenue 58 81 185 237
Transit solutions | Transportation:        
Disaggregation of Revenue [Line Items]        
Revenue 83 61 240 157
Commercial vehicles | Transportation:        
Disaggregation of Revenue [Line Items]        
Revenue $ 0 $ 2 $ 1 $ 6
v3.24.3
Revenue - Contract Balances (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Contract Assets (Liabilities)          
Current contract assets $ 152   $ 152   $ 178
Long-term contract assets 4   4   12
Current unearned income (115)   (115)   (91)
Long-term unearned income (53)   (53)   (55)
Net Contract Liabilities (12)   (12)    
Net Contract Assets (Liabilities)         44
Accounts receivable, net 528   528   $ 559
Revenue recognized related to unearned income $ 12 $ 8 $ 81 $ 50  
v3.24.3
Revenue - Remaining Performance Obligation (Details)
$ in Billions
Sep. 30, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 1.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percentage 70.00%
Remaining performance obligation, expected timing of satisfaction 2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, expected timing of satisfaction
v3.24.3
Segment Reporting - Narrative (Details)
 9 Months Ended
Sep. 30, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 3
v3.24.3
Segment Reporting - Segment Revenue and Segment Profit (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Segment Reporting Information [Line Items]        
Revenue $ 807 $ 932 $ 2,556 $ 2,769
Segment profit (loss) (8) 11 (15) 78
Divestitures | Divestitures        
Segment Reporting Information [Line Items]        
Revenue 26 101 180 300
Segment profit (loss) 3 26 35 76
Operating Segments | Commercial:        
Segment Reporting Information [Line Items]        
Revenue 385 397 1,192 1,245
Segment profit (loss) 15 (19) 48 13
Operating Segments | Government:        
Segment Reporting Information [Line Items]        
Revenue 255 290 758 824
Segment profit (loss) 50 84 130 224
Operating Segments | Transportation:        
Segment Reporting Information [Line Items]        
Revenue 141 144 426 400
Segment profit (loss) (6) (5) (15) (11)
Unallocated Costs        
Segment Reporting Information [Line Items]        
Revenue 0 0 0 0
Segment profit (loss) $ (70) $ (75) $ (213) $ (224)
v3.24.3
Segment Reporting - Reconciliation Of Operating Profit Loss (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Segment Reporting [Abstract]        
Income (Loss) Before Income Taxes $ 159 $ (313) $ 586 $ (328)
Reconciling items:        
Amortization of acquired intangible assets 1 1 4 5
Restructuring and related costs 4 7 21 49
Interest expense 16 28 62 82
Goodwill impairment 0 287 0 287
(Gain) loss on divestitures and transaction costs, net (188) 3 (696) 8
Litigation settlements (recoveries), net 1 0 6 (22)
Loss on extinguishment of debt 1 0 6 0
Other (income) expenses, net (2) (2) (4) (3)
Segment Profit (Loss) $ (8) $ 11 $ (15) $ 78
v3.24.3
Divestitures and Assets/Liabilities Held for Sale - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended
Sep. 01, 2024
May 14, 2024
Apr. 30, 2024
Apr. 11, 2024
Mar. 07, 2024
Sep. 30, 2023
Sep. 30, 2024
Jun. 30, 2024
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Pro-rata share of purchase price                 $ 823 $ 0  
BenefitWallet                      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Purchase price                     $ 425
Gain on transfer and sale           $ 425          
Cost to sell           13          
Income tax expense           $ 101          
BenefitWallet Tranche 1                      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Pro-rata share of purchase price         $ 164            
BenefitWallet Tranche 2                      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Pro-rata share of purchase price       $ 85              
BenefitWallet Tranche 3                      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Pro-rata share of purchase price   $ 176                  
Curbside Management and Public Safety Solutions                      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Purchase price                     $ 230
Gain on transfer and sale               $ 108      
Cost to sell               4      
Income tax expense               $ 30      
Curbside Management and Public Safety Solutions | Divestitures                      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Cash consideration received in sale of business     $ 174                
Note receivable     50                
Other amounts receivable     $ 56                
Casualty Claims                      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                      
Gain on transfer and sale $ 224           $ 195        
Cost to sell             7        
Income tax expense             $ 35        
v3.24.3
Divestitures and Assets/Liabilities Held for Sale - Schedule of Disposal Group Revenue and Pre-tax Profit (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Revenue $ 807 $ 932 $ 2,556 $ 2,769
BenefitWallet        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Revenue 0 30 30 89
Pre-tax profit 0 22 20 67
Curbside Management and Public Safety Solutions        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Revenue 0 34 50 101
Pre-tax profit 0 2 6 3
Casualty Claims        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Revenue 26 38 100 111
Pre-tax profit $ 3 $ 2 $ 6 $ 5
v3.24.3
Divestitures and Assets/Liabilities Held for Sale - Schedule of Assets and Liabilities Reclassified as Held for Sale (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Other current assets $ 372 $ 240
Operating lease right-of-use assets 174 191
Intangible assets, net 15 32
Goodwill 642 651
Other long-term assets 391 436
Assets held for sale 0 180
Current portion of long-term debt 26 34
Accounts payable 133 174
Accrued compensation and benefits costs 193 183
Unearned income 115 91
Other current liabilities 360 328
Long-term debt 718 1,248
Operating lease liabilities 141 157
Other long-term liabilities 78 84
Liabilities held for sale $ 0 58
Disposal Group, Held-for-sale, Not Discontinued Operations    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Accounts Receivable, net   49
Other current assets   3
Land, building and equipment, net   52
Operating lease right-of-use assets   6
Intangible assets, net   0
Goodwill   35
Other long-term assets   35
Assets held for sale   180
Current portion of long-term debt   5
Accounts payable   11
Accrued compensation and benefits costs   2
Unearned income   4
Other current liabilities   9
Long-term debt   19
Operating lease liabilities   4
Other long-term liabilities   4
Liabilities held for sale   $ 58
v3.24.3
Restructuring Programs and Related Costs - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]        
Non-recurring costs     $ 21 $ 50
Termination and Other Costs        
Restructuring Cost and Reserve [Line Items]        
Non-recurring costs     10 18
Termination and Other Costs | Data Center Consolidation        
Restructuring Cost and Reserve [Line Items]        
Non-recurring costs $ 1 $ 3 $ 4 $ 7
v3.24.3
Restructuring Programs and Related Costs - Schedule of Restructuring Program Activity (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Restructuring Reserve [Roll Forward]        
Balance at beginning of period     $ 10 $ 10
Provision     21 50
Changes in estimates     0 (1)
Total Net Current Period Charges $ 4 $ 7 21 49
Charges against reserve and currency     (28) (48)
Balance at end of period 3 11 3 11
Severance and Related Costs        
Restructuring Reserve [Roll Forward]        
Balance at beginning of period     9 10
Provision     9 25
Changes in estimates     0 (1)
Total Net Current Period Charges     9 24
Charges against reserve and currency     (15) (24)
Balance at end of period 3 10 3 10
Termination and Other Costs        
Restructuring Reserve [Roll Forward]        
Balance at beginning of period     1 0
Provision     10 18
Changes in estimates     0 0
Total Net Current Period Charges     10 18
Charges against reserve and currency     (11) (17)
Balance at end of period 0 1 0 1
Asset Impairments        
Restructuring Reserve [Roll Forward]        
Balance at beginning of period     0 0
Provision     2 7
Changes in estimates     0 0
Total Net Current Period Charges     2 7
Charges against reserve and currency     (2) (7)
Balance at end of period $ 0 $ 0 $ 0 $ 0
v3.24.3
Restructuring Programs and Related Costs - Schedule of Costs Incurred with Restructuring Programs (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]        
Total Net Restructuring Charges $ 4 $ 7 $ 21 $ 49
Operating Segments | Commercial:        
Restructuring Cost and Reserve [Line Items]        
Total Net Restructuring Charges 1 2 4 25
Operating Segments | Government:        
Restructuring Cost and Reserve [Line Items]        
Total Net Restructuring Charges 0 0 0 0
Operating Segments | Transportation:        
Restructuring Cost and Reserve [Line Items]        
Total Net Restructuring Charges 0 0 1 0
Operating Segments | Divestitures        
Restructuring Cost and Reserve [Line Items]        
Total Net Restructuring Charges 0 0 0 0
Unallocated Costs        
Restructuring Cost and Reserve [Line Items]        
Total Net Restructuring Charges $ 3 $ 5 $ 16 $ 24
v3.24.3
Debt - Schedule of Long-Term Debt (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Finance lease obligations $ 29 $ 22
Other 13 15
Principal debt balance 753 1,300
Debt issuance costs and unamortized discounts (9) (18)
Less: current maturities (26) (34)
Total Long-term Debt 718 1,248
Term loan A due 2026    
Debt Instrument [Line Items]    
Long-term debt, gross 191 238
Term loan B due 2028    
Debt Instrument [Line Items]    
Long-term debt, gross 0 505
Senior notes due 2029    
Debt Instrument [Line Items]    
Long-term debt, gross $ 520 $ 520
v3.24.3
Debt - Narrative (Details) - USD ($)
 1 Months Ended 2 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2024
Mar. 31, 2024
May 31, 2024
Sep. 30, 2024
Sep. 30, 2024
Revolving credit facility maturing 2026 | Revolving Credit Facility          
Debt Instrument [Line Items]          
Outstanding borrowings $ 0     $ 0 $ 0
Maximum borrowing capacity 550,000,000     550,000,000 550,000,000
Letter of credit outstanding 11,000,000     11,000,000 11,000,000
Remaining borrowing capacity 539,000,000     539,000,000 539,000,000
Term Loan A due 2026 and Term Loan B due 2028          
Debt Instrument [Line Items]          
Write-off related to debt issuance costs       $ 1,000,000 $ 6,000,000
Term loan B due 2028          
Debt Instrument [Line Items]          
Repayment of debt 38,000,000 $ 164,000,000 $ 300,000,000    
Term loan A due 2026          
Debt Instrument [Line Items]          
Repayment of debt $ 37,000,000        
v3.24.3
Financial Instruments (Details) - Designated as Hedging Instrument - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Outstanding forward exchange contracts gross notional value $ 181 $ 148
Percentage of forward exchange contract maturing within three months 76.00%  
Percentage of forward exchange contract maturing within six months 9.00%  
Percentage of forward exchange contract maturing within twelve months 11.00%  
Percentage of forward exchange contract maturing in more than twelve months 4.00%  
v3.24.3
Fair Value of Financial Assets and Liabilities - Recurring (Details) - Fair Value, Recurring - Significant Other Observable Inputs (Level 2) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Assets:    
Total Assets $ 1 $ 1
Liabilities:    
Total Liabilities 0 0
Foreign exchange contracts - forward    
Assets:    
Foreign exchange contracts - forward 1 1
Liabilities:    
Foreign exchange contracts - forward $ 0 $ 0
v3.24.3
Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Fair Value, Nonrecurring - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Carrying Amount    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 718 $ 1,248
Liabilities held for sale 0 58
Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 697 1,191
Liabilities held for sale $ 0 $ 58
v3.24.3
Employee Benefit Plans (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pension Plan        
Defined Contribution Plan Disclosure [Line Items]        
Defined contribution plans $ 2 $ 2 $ 8 $ 8
v3.24.3
Accumulated Other Comprehensive Loss ("AOCL") (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Balance at beginning of period     $ (435)  
Other comprehensive income (loss), net [1] $ 14 $ (19) (14) $ 3
Balance at end of period (449)   (449)  
AOCL        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Balance at beginning of period     (435) (466)
Other comprehensive income (loss), net [2] 14 (19) (14) 3
Balance at end of period (449) (463) (449) (463)
Currency Translation Adjustments        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Balance at beginning of period     (441) (472)
Other comprehensive income (loss), net     (14) 3
Balance at end of period (455) (469) (455) (469)
Gains (Losses) on Cash Flow Hedges        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Balance at beginning of period     2 1
Other comprehensive income (loss), net     0 0
Balance at end of period 2 1 2 1
Defined Benefit Pension Items        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Balance at beginning of period     4 5
Other comprehensive income (loss), net     0 0
Balance at end of period $ 4 $ 5 $ 4 $ 5
[1] All amounts are net of tax. Tax effects were immaterial.
[2] AOCL - Accumulated other comprehensive loss. Refer to Note 11 – Accumulated Other Comprehensive Loss for the components of AOCL.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
v3.24.3
Contingencies and Litigation (Details) - USD ($)
$ in Millions
Feb. 03, 2020
Sep. 30, 2024
Surety Bond    
Loss Contingencies [Line Items]    
Maximum exposure, undiscounted   $ 614
Letters of Credit Issued to Secured Contractual Obligations    
Loss Contingencies [Line Items]    
Maximum exposure, undiscounted   $ 177
Skyview Capital LLC and Continuum Global Solutions, LLC v. Conduent Business Services, LLC | Pending Litigation    
Loss Contingencies [Line Items]    
Loss contingency, damages sought $ 23  
v3.24.3
Common Stock and Preferred Stock (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended
Jun. 10, 2024
Dec. 31, 2016
Sep. 30, 2024
Dec. 31, 2023
Temporary Equity [Line Items]        
Shares of series A convertible preferred stock issued (in shares)   120,000 120,000 120,000
Preferred stock, aggregated liquidation preference   $ 120.0    
Preferred stock, initial fair value   $ 142.0    
Preferred stock, quarterly cash dividend rate   8.00%    
Preferred stock annual dividends   $ 9.6    
Total shares available for issuance (in shares)   5,393,000    
Initial conversion price per share (in dollar USD per share)   $ 22.25    
Common Stock        
Temporary Equity [Line Items]        
Shares issued upon conversion (in shares)   44.9438    
Icahn Parties        
Temporary Equity [Line Items]        
Aggregate number of shares agreed to purchase (in shares) 38,000,000      
Price per share of shares agreed to purchase (in USD per share) $ 3.47      
Aggregate purchase price of shares agree to purchase $ 132.0      
v3.24.3
Earnings (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Net Income (Loss) $ 123 $ (289) $ 438 $ (302)
Dividend - Preferred Stock (2) (2) (7) (7)
Adjusted Net Income (Loss) Available to Common Shareholders - Basic 121 (291) 431 (309)
Net Income (Loss) 123 (289) 438 (302)
Dividend - Preferred Stock 0 (2) 0 (7)
Adjusted Net Income (Loss) Available to Common Shareholders - Diluted $ 123 $ (291) $ 438 $ (309)
Weighted Average Number of Shares Outstanding - Basic (in shares) 161,684 217,348 189,107 217,992
8% Convertible preferred Stock (in shares) 5,393 0 5,393 0
Weighted Average Number of Shares Outstanding - Diluted (in shares) 171,154 217,348 196,973 217,992
Net Income (Loss) per Share:        
Basic (in USD per share) $ 0.75 $ (1.34) $ 2.28 $ (1.42)
Diluted (in USD per share) $ 0.72 $ (1.34) $ 2.22 $ (1.42)
Anti-Dilutive and Contingently Issuable Securities (in shares) 10,288 17,690 10,329 17,690
Restricted stock and performance shares/units        
Net Income (Loss) per Share:        
Anti-Dilutive and Contingently Issuable Securities (in shares) 10,288 12,297 10,329 12,297
Convertible preferred stock        
Net Income (Loss) per Share:        
Anti-Dilutive and Contingently Issuable Securities (in shares) 0 5,393 0 5,393
Restricted stock and performance shares/units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Restricted Stock And Performance Units / Shares (in shares) 4,077 0 2,473 0
v3.24.3
Supplementary Financial Information (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Supplementary Financial Information [Abstract]    
Prepaid expenses $ 106 $ 70
Income taxes receivable 8 38
Value-added tax (VAT) receivable 7 8
Restricted cash 11 21
Net receivables from buyers of divested businesses 128 0
Other 112 103
Total Other Current Assets 372 240
Accrued liabilities to vendors 146 188
Litigation related accruals 12 6
Current operating lease liabilities 52 54
Restructuring liabilities 3 10
Income tax payable 75 1
Other taxes payable 16 19
Accrued interest 13 6
Other 43 44
Total Other Current Liabilities 360 328
Internal use software, net 110 143
Deferred contract costs, net 120 91
Product software, net 76 92
Deferred tax assets 22 21
Other 63 89
Total Other Long-term Assets 391 436
Income tax liabilities 1 6
Unearned income 53 55
Other 24 23
Total Other Long-term Liabilities $ 78 $ 84
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