CONDUENT IncCNDT
CONDUENT Inc Segments Disclosure
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 its Chief Operating Decision Maker ("CODM"), and are aligned to the industries in which the Company's clients operate. The Company's segments involve the delivery of business process services and include service arrangements where it manages a customer's business activity or process.
Divestitures includes the results of the Company's BenefitWallet Portfolio, Curbside Management and Public Safety Solutions businesses and Casualty Claims business, each of which was divested in 2024. Refer to Note 4 – Divestitures for additional information.
The Company's CODM evaluates the Company's financial performance based on Segment profit (loss) for its three reportable segments - Commercial, Government and Transportation. The Company's CODM uses Segment profit (loss) information to monitor budget versus actual results and then uses this information to help make informed decisions about future resource investment, potential restructuring of segments to enhance overall company performance, and future divestitures and acquisitions.
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 that span its clients' businesses end-to-end from the front-office to the back-office for a variety of commercial industries. These solutions are both cross-industry and industry-specific in nature. 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 and solutions to U.S. federal, state, local and foreign governments for public assistance, healthcare program administration, transaction processing, eligibility and enrollment processing, payment services and case management. In this segment, the Company helps governments respond to changing rules for eligibility and keep pace with increasing citizen expectations, modernize legacy technology systems, combat benefits fraud and adapt to an evolving regulatory environment.
•Transportation: The Transportation segment provides government agencies and transportation authorities around the world with systems, support, and revenue-generating solutions serving toll and fare collections as well as mobility and digital payments that help streamline operations and increase revenue to government transportation agencies. With an expanded focus on sustainability and enhancing the quality of life for citizens and communities around the world, the Company's solutions help reduce congestion and greenhouse emissions, while creating seamless travel experiences for consumers throughout transportation ecosystems.
The following table presents revenues, expenses and segment profit (loss) for the Company's reportable segments:
| Year Ended December 31, | ||||||||||||||||||||||||||
| (in millions) | Commercial | Government | Transportation | Total(1) | ||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||
| Segment revenue | $ | 1,511 | $ | 922 | $ | 609 | $ | 3,042 | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Wages and benefits | $ | 1,002 | $ | 383 | $ | 251 | $ | 1,636 | ||||||||||||||||||
| Services and supplies | 202 | 243 | 288 | 733 | ||||||||||||||||||||||
| Rent lease and maintenance expense | 149 | 69 | 48 | 266 | ||||||||||||||||||||||
| Other operating expense | 5 | 7 | 5 | 17 | ||||||||||||||||||||||
| Depreciation and amortization expense | 87 | 45 | 29 | 161 | ||||||||||||||||||||||
| Segment expenses | $ | 1,445 | $ | 747 | $ | 621 | $ | 2,813 | ||||||||||||||||||
| Segment profit (loss) | $ | 66 | $ | 175 | $ | (12) | $ | 229 | ||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| Segment Revenue | $ | 1,606 | $ | 984 | $ | 586 | $ | 3,176 | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Wages and benefits | $ | 1,081 | $ | 420 | $ | 256 | $ | 1,757 | ||||||||||||||||||
| Services and supplies | 212 | 282 | 279 | 773 | ||||||||||||||||||||||
| Rent lease and maintenance expense | 145 | 66 | 46 | 257 | ||||||||||||||||||||||
| Other operating expense | 1 | 6 | 6 | 13 | ||||||||||||||||||||||
| Depreciation and amortization expense | 90 | 44 | 24 | 158 | ||||||||||||||||||||||
| Segment expenses | $ | 1,529 | $ | 818 | $ | 611 | $ | 2,958 | ||||||||||||||||||
| Segment profit (loss) | $ | 77 | $ | 166 | $ | (25) | $ | 218 | ||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||
| Segment Revenue | $ | 1,668 | $ | 1,094 | $ | 558 | $ | 3,320 | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Wages and benefits | $ | 1,132 | $ | 411 | $ | 247 | $ | 1,790 | ||||||||||||||||||
| Services and supplies | 224 | 284 | 242 | 750 | ||||||||||||||||||||||
| Rent lease and maintenance expense | 140 | 65 | 43 | 248 | ||||||||||||||||||||||
| Other operating expense | 8 | 9 | 10 | 27 | ||||||||||||||||||||||
| Depreciation and amortization expense | 128 | 41 | 23 | 192 | ||||||||||||||||||||||
| Segment expenses | $ | 1,632 | $ | 810 | $ | 565 | $ | 3,007 | ||||||||||||||||||
| Segment profit (loss) | $ | 36 | $ | 284 | $ | (7) | $ | 313 | ||||||||||||||||||
__________
(1) Total excludes Divestitures and Unallocated Costs.
Other operating expense shown above is primarily comprised of third-party legal fees and other miscellaneous expenses.
The following is a reconciliation of Segment profit (loss) to Income (loss) before income taxes:
| Year Ended December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Segment Profit (Loss) | $ | 229 | $ | 218 | $ | 313 | ||||||||||||||
| Reconciling items: | ||||||||||||||||||||
Divestitures profit(1) | — | 35 | 103 | |||||||||||||||||
Unallocated costs(2) | (285) | (287) | (304) | |||||||||||||||||
| Amortization of acquired intangible assets | (2) | (5) | (7) | |||||||||||||||||
| Restructuring and related costs | (35) | (46) | (62) | |||||||||||||||||
| Interest expense | (48) | (75) | (111) | |||||||||||||||||
| Loss on extinguishment of debt | (1) | (8) | — | |||||||||||||||||
| Goodwill impairment | — | (28) | (287) | |||||||||||||||||
| Gain (loss) on divestitures and transaction costs, net | (11) | 696 | (10) | |||||||||||||||||
| Litigation (settlements) recoveries, net | 1 | (9) | 30 | |||||||||||||||||
| Other income (expenses), net | (8) | 13 | 3 | |||||||||||||||||
| Income (Loss) Before Income Taxes | $ | (160) | $ | 504 | $ | (332) | ||||||||||||||
__________
(1) Divestitures profit is Income (loss) before income taxes.
(2) Unallocated Costs includes IT infrastructure costs that are shared by multiple reportable segments, enterprise application costs and certain corporate overhead expenses not directly attributable or allocated to the reportable segments.
Refer to Note 2 – Revenue for additional information on disaggregated revenues of the reportable segments.
No sales to an individual customer accounted for more than 10% of revenue for the years ended December 31, 2025, 2024 or 2023. Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows for each of the years ended December 31:
| Revenues | Long-Lived Assets (1) | |||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | 2025 | 2024 | |||||||||||||||||||||||||||
| United States | $ | 2,545 | $ | 2,887 | $ | 3,328 | $ | 351 | $ | 386 | ||||||||||||||||||||||
| Europe | 298 | 291 | 314 | 30 | 31 | |||||||||||||||||||||||||||
| Other areas | 199 | 178 | 80 | 92 | 98 | |||||||||||||||||||||||||||
| Total Revenues and Long-Lived Assets | $ | 3,042 | $ | 3,356 | $ | 3,722 | $ | 473 | $ | 515 | ||||||||||||||||||||||
__________
(1)Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Internal use software, net, (iii) Product software, net and (iv) Operating lease right-of-use assets.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 10, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.