What changed in this filing

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Item 1. Financial Statements

2023-08-02 compared with 2023-05-03 · 110 added, 54 removed, 482 unchanged (25% of the section changed)

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in millions, except per share data) 2023 2022 2023 2022

22 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in millions) 2023 2022 2023 2022

11 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except share data in thousands) March 31, 2023 December 31, 2022

(in millions, except share data in thousands) June 30, 2023 December 31, 2022

Cash and cash equivalents $ 500 $ 582

24 unchanged sentences

Common stock 2 2

Treasury stock, at cost ( 1 ) —

Additional paid-in capital 3,931 3,924

5 unchanged sentences

Shares of series A convertible preferred stock issued and outstanding 120 120

Shares of common stock held in treasury 267 —

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

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

Six Months Ended

(in millions) 2023 2022

23 unchanged sentences

Payments on debt ( 20 ) ( 16 )

Treasury stock purchases ( 1 ) —

Taxes paid for settlement of stock-based compensation ( 6 ) —

5 unchanged sentences

Cash, Cash Equivalents and Restricted Cash at End of period (1)

(1) Includes $ 21 million and $ 5 million of restricted cash as of March 31, 2023 and 2022, respectively, that were included in Other current assets on their respective Condensed Consolidated Balance Sheets.

(1) Includes $ 5 million and $ 11 million of restricted cash as of June 30, 2023 and 2022, respectively, that were included in Other current assets on their respective Condensed Consolidated Balance Sheets.

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

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

Three Months Ended March 31, 2023

(in millions) Common Stock Additional Paid-in Capital Retained Earnings (Deficit) AOCL (1)

Three Months Ended June 30, 2023

(in millions) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings (Deficit) AOCL (1)

Shareholders' Equity

Balance at March 31, 2023 $ 2 $ — $ 3,926 $ ( 2,551 ) $ ( 448 ) $ 929

Dividends - preferred stock, $ 20 /share

— — — ( 3 ) — ( 3 )

Stock incentive plans, net — — 5 — — 5

Treasury stock purchases — ( 1 ) — — — ( 1 )

Comprehensive Income (Loss):

Net Income (Loss) — — — ( 7 ) — ( 7 )

Other comprehensive income (loss), net — — — — 4 4

Total Comprehensive Income (Loss), Net — — — ( 7 ) 4 ( 3 )

Balance at June 30, 2023 $ 2 $ ( 1 ) $ 3,931 $ ( 2,561 ) $ ( 444 ) $ 927

Three Months Ended June 30, 2022

(in millions) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings (Deficit) AOCL (1)

Shareholders'

Balance at March 31, 2022 $ 2 $ — $ 3,912 $ ( 2,217 ) $ ( 435 ) $ 1,262

Dividends - preferred stock, $ 20 /share

— — — ( 3 ) — ( 3 )

Stock incentive plans, net — — 6 — — 6

Treasury stock purchases — — — — — —

Comprehensive Income (Loss):

Net Income (Loss) — — — — — —

Other comprehensive income (loss), net — — — — ( 40 ) ( 40 )

Total Comprehensive Income (Loss), Net — — — — ( 40 ) ( 40 )

Balance at June 30, 2022 $ 2 $ — $ 3,918 $ ( 2,220 ) $ ( 475 ) $ 1,225

Six Months Ended June 30, 2023

(in millions) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings (Deficit) AOCL (1)

Shareholders'

Balance at December 31, 2022 $ 2 $ — $ 3,924 $ ( 2,543 ) $ ( 466 ) $ 917

2 unchanged sentences

Stock incentive plans, net — — 7 — — 7

Treasury stock purchases — ( 1 ) — — — ( 1 )

Comprehensive Income (Loss):

2 unchanged sentences

Total Comprehensive Income (Loss), Net — — — ( 13 ) 22 9

Balance at March 31, 2023 $ 2 $ 3,926 $ ( 2,551 ) $ ( 448 ) $ 929

Three Months Ended March 31, 2022

(in millions) Common Stock Additional Paid-in Capital Retained Earnings (Deficit) AOCL (1)

Balance at June 30, 2023 $ 2 $ ( 1 ) $ 3,931 $ ( 2,561 ) $ ( 444 ) $ 927

Six Months Ended June 30, 2022

(in millions) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings (Deficit) AOCL (1)

Shareholders'

3 unchanged sentences

Stock incentive plans, net — — 8 — — 8

Treasury stock purchases — — — — — —

Comprehensive Income (Loss):

2 unchanged sentences

Total Comprehensive Income (Loss), Net — — — 136 ( 46 ) 90

Balance at March 31, 2022 $ 2 $ 3,912 $ ( 2,217 ) $ ( 435 ) $ 1,262

Balance at June 30, 2022 $ 2 $ — $ 3,918 $ ( 2,220 ) $ ( 475 ) $ 1,225

(1) AOCL - Accumulated other comprehensive loss.

7 unchanged sentences

As a global technology-led business process solutions company, Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating exceptional 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 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.

14 unchanged sentences

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 is not expected to be material to the year ending December 31, 2023.

The Company has evaluated subsequent events through May 3, 2023, and no material subsequent events were identified.

The Company has evaluated subsequent events through August 2, 2023, and no material subsequent events were identified.

Use of Estimates

4 unchanged sentences

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.

As of March 31, 2023, the effects of global macroeconomic and geopolitical uncertainty on the Company's business, results of operations and financial condition continue to evolve.

As of June 30, 2023, the effects of global macroeconomic and geopolitical uncertainty on the Company's business, results of operations and financial condition continue to evolve.

As a result, many of the Company's estimates and assumptions continue to require increased judgment and carry a higher degree of variability and volatility.

1 unchanged sentence

CNDT Q2 2023 Form 10-Q

To the extent there are significant contract losses, potential disposition or sale of assets and rising interest rates in response to persistent inflation, there exists a risk that the fair value of the Commercial reporting unit could fall below its carrying value, resulting in a goodwill impairment charge.

Summary of Significant Accounting Policies

There have been no changes to the Company's Significant Accounting Policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 other than the addition of a policy related to a share repurchase program as described below.

Share Repurchase Program

On May 16, 2023, the Board of Directors authorized a share repurchase program, granting approval for the Company to repurchase up to $ 75 million of its common stock over the next three years .

The Company has the discretion to repurchase shares periodically through open market transactions and may include Rule 10b5-1 trading plans.

This share repurchase program does not obligate the Company to acquire a specific number of shares and the program may be modified, suspended or discontinued at any time at the Company’s discretion without prior notice.

The Company holds repurchased shares of common stock as treasury stock.

The Company accounts for treasury stock under the cost method and includes treasury stock as a component of shareholders' equity.

The Company accrues the cost of repurchased shares and excludes such shares from the calculation of basic and diluted earnings per share, as of the trade date.

The Company recognizes a liability for share repurchases which have not settled and for which cash has not been paid in Other current liabilities on the Company's Condensed Consolidated Balance Sheets.

Note 2 – Recent Accounting Pronouncements

8 unchanged sentences

Refer to Note 4 – Segment Reporting for additional information on the Company's reportable segments.

CNDT Q2 2023 Form 10-Q

Three Months Ended

June 30, Six Months Ended

(in millions) 2023 2022 2023 2022

20 unchanged sentences

Total Revenue $ 915 $ 928 $ 1,837 $ 1,895

CNDT Q1 2023 Form 10-Q

Contract Balances

5 unchanged sentences

The following table provides information about the balances of the Company's contract assets, unearned income and receivables from contracts with customers:

(in millions) March 31, 2023 December 31, 2022

(in millions) June 30, 2023 December 31, 2022

Contract Assets (Unearned Income)

8 unchanged sentences

(2) Presented in Other long-term liabilities in the Condensed Consolidated Balance Sheets.

Revenues of $ 29 million were recognized during the three months ended March 31, 2023 related to the Company's unearned income at December 31, 2022.

Revenues of $ 35 million were recognized during the three months ended March 31, 2022 related to the Company's unearned income at December 31, 2021.

The Company had no material asset impairment charges related to contract assets for the three months ended March 31, 2023 or 2022.

CNDT Q2 2023 Form 10-Q

Revenues of $ 13 million and $ 42 million were recognized during the three and six months ended June 30, 2023, respectively, related to the Company's unearned income at December 31, 2022.

Revenues of $ 18 million and $ 53 million were recognized during the three and six months ended June 30, 2022, respectively, related to the Company's unearned income at December 31, 2021.

The Company had no material asset impairment charges related to contract assets for the three and six months ended June 30, 2023 or 2022.

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 March 31, 2023 was approximately $ 1.1 billion.

Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at June 30, 2023 was approximately $ 1.6 billion.

The Company expects to recognize approximately 61 % of this revenue over the next two years and the remainder thereafter.

9 unchanged sentences

The solutions in this segment help governments respond to changing rules for eligibility and increasing citizen expectations.

CNDT Q1 2023 Form 10-Q

Transportation:

10 unchanged sentences

Segment profit (loss) $ 22 $ 70 $ 16 $ — $ ( 72 ) $ 36

CNDT Q2 2023 Form 10-Q

Six Months Ended

(in millions) Commercial Government Transportation Divestitures Unallocated Costs Total

Revenue $ 979 $ 534 $ 324 $ — $ — $ 1,837

Segment profit (loss) $ 81 $ 140 $ ( 5 ) $ — $ ( 149 ) $ 67

Revenue $ 982 $ 565 $ 341 $ 7 $ — $ 1,895

Segment profit (loss) $ 50 $ 145 $ 24 $ 2 $ ( 131 ) $ 90

(in millions) Three Months Ended

June 30, Six Months Ended

Segment Profit (Loss) Reconciliation to Pre-tax Income (Loss) 2023 2022 2023 2022

14 unchanged sentences

The Company recorded approximately $ 62 million of income taxes in connection with the divestiture.

The revenue generated by this business was $ 7 million for the three months ended March 31, 2022.

CNDT Q1 2023 Form 10-Q

The revenue generated by this business was $ 7 million for the six months ended June 30, 2022.

There was no revenue generated by this business for the three months ended June 30, 2022.

Note 6 – Restructuring Programs and Related Costs

1 unchanged sentence

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 asset (ROU) 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, which totaled $ 2 million and $ 4 million for the three months ended March 31, 2023 and 2022, respectively.

Also included in Restructuring and related costs are incremental, non-recurring costs related to the consolidation of the Company's data centers, which totaled $ 2 million and $ 3 million for the three months ended June 30, 2023 and 2022, respectively, and $ 4 million and $ 7 million for the six months ended June 30, 2023 and 2022, 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.

2 unchanged sentences

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 three months ended March 31, 2023 and 2022 is as follows:

CNDT Q2 2023 Form 10-Q

A summary of the Company's restructuring program activity during the six months ended June 30, 2023 and 2022 is as follows:

(in millions) Severance and Related Costs Termination and Other Costs Asset Impairments Total

4 unchanged sentences

Charges against reserve and currency ( 14 ) ( 13 ) ( 6 ) ( 33 )

Accrued Balance at March 31, 2023 $ 22 $ 4 $ — $ 26

Accrued Balance at June 30, 2023 $ 19 $ — $ — $ 19

(in millions) Severance and Related Costs Termination and Other Costs Asset Impairments Total

4 unchanged sentences

Charges against reserve and currency ( 5 ) ( 11 ) ( 6 ) ( 22 )

Accrued Balance at March 31, 2022 $ 1 $ 1 $ — $ 2

Accrued Balance at June 30, 2022 $ 1 $ 1 $ — $ 2

(1) Represents amounts recognized within the Consolidated Statements of Income (Loss) for the years shown.

In addition, during the three months ended March 31, 2023, the Company also incurred $ 4 million of professional support costs associated with bringing certain technology functions in-house.

CNDT Q1 2023 Form 10-Q

During the three and six months ended June 30, 2023, the Company incurred $ 2 million and $ 6 million, respectively, of professional support costs associated with bringing certain technology functions in-house.

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

June 30, Six Months Ended

(in millions) 2023 2022 2023 2022

8 unchanged sentences

Long-term debt was as follows:

(in millions) March 31, 2023 December 31, 2022

(in millions) June 30, 2023 December 31, 2022

Term loan A due 2026 $ 245 $ 252

7 unchanged sentences

Total Long-term Debt $ 1,274 $ 1,277

As of March 31, 2023, the Company had no outstanding borrowings under its Revolver.

However, the Company utilized $ 2 million of the Revolver to issue letters of credit as of March 31, 2023.

The net Revolver available to be drawn upon as of March 31, 2023 was $ 548 million.

At March 31, 2023, the Company was in compliance with all debt covenants related to the borrowings in the table above.

CNDT Q2 2023 Form 10-Q

As of June 30, 2023, the Company had no outstanding borrowings under its Revolver.

However, the Company utilized $ 2 million of the Revolver to issue letters of credit as of June 30, 2023.

The net Revolver available to be drawn upon as of June 30, 2023 was $ 548 million.

At June 30, 2023, the Company was in compliance with all debt covenants related to the borrowings in the table above.

Note 8 – Financial Instruments

1 unchanged sentence

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 March 31, 2023 and December 31, 2022, the Company had outstanding forward exchange contracts with gross notional values of $ 99 million and $ 104 million, respectively.

At March 31, 2023, approximately 59 % of these contracts mature within three months, 17 % in three to six months, 18 % in six to twelve months and 6 % in greater than twelve months.

At June 30, 2023 and December 31, 2022, the Company had outstanding forward exchange contracts with gross notional values of $ 119 million and $ 104 million, respectively.

At June 30, 2023, approximately 69 % of these contracts mature within three months, 12 % in three to six months, 15 % 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.

CNDT Q1 2023 Form 10-Q

Note 9 – Fair Value of Financial Assets and Liabilities

5 unchanged sentences

Fair value is estimated using unobservable inputs that are significant to the fair value of the assets or liabilities.

CNDT Q2 2023 Form 10-Q

Summary of Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis

1 unchanged sentence

The basis for the measurement at fair value in all cases was Level 2.

(in millions) March 31, 2023 December 31, 2022

(in millions) June 30, 2023 December 31, 2022

Foreign exchange contract - forward $ 1 $ —

4 unchanged sentences

The estimated fair values of other financial assets and liabilities were as follows:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

(in millions) Carrying

8 unchanged sentences

The Company, at its discretion, matches a portion of employee contributions.

The Company recognized an expense related to its defined contribution plans of $ 3 million and $ 5 million for the three months ended March 31, 2023 and 2022, respectively.

The Company recognized an expense related to its defined contribution plans of $ 3 million and $ 3 million for the three months ended June 30, 2023 and 2022, respectively, and $ 6 million and $ 8 million for the six months ended June 30, 2023 and 2022, 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 Q1 2023 Form 10-Q

Note 11 – Accumulated Other Comprehensive Loss (AOCL)

3 unchanged sentences

Other comprehensive income (loss) 21 1 — 22

Balance at March 31, 2023 $ ( 455 ) $ 2 $ 5 $ ( 448 )

Balance at June 30, 2023 $ ( 451 ) $ 2 $ 5 $ ( 444 )

(in millions) Currency Translation Adjustments Gains (Losses) on Cash Flow Hedges Defined Benefit Pension Items Total

1 unchanged sentence

Other comprehensive income (loss) ( 45 ) ( 1 ) — ( 46 )

Balance at March 31, 2022 $ ( 436 ) $ 1 $ — $ ( 435 )

Balance at June 30, 2022 $ ( 476 ) $ 1 $ — $ ( 475 )

(1) All amounts are net of tax.

Tax effects were immaterial.

CNDT Q2 2023 Form 10-Q

Note 12 – Contingencies and Litigation

10 unchanged sentences

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 March 31, 2023.

The Company believes it has recorded adequate provisions for any such matters as of June 30, 2023.

Litigation is inherently unpredictable, and it is not possible to predict the ultimate outcome of these matters and such outcome in any such matters 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.

4 unchanged sentences

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 March 31, 2023, the Company had accrued its estimate of liability incurred under its indemnification arrangements and guarantees.

CNDT Q1 2023 Form 10-Q

As of June 30, 2023, the Company had accrued its estimate of liability incurred under its indemnification arrangements and guarantees.

Litigation Against the Company

2 unchanged sentences

On March 8, 2019, a putative class action lawsuit alleging violations of certain federal securities laws in connection with our statements and alleged omissions regarding the Company's financial guidance and business and operations was filed against the Company, its former Chief Executive Officer, and its former Chief Financial Officer in the United States District Court for the District of New Jersey (the Court).

The complaint seeks certification of a class of all persons who purchased or otherwise acquired the Company's securities from February 21, 2018 through November 6, 2018, and also seeks unspecified monetary damages, costs, and attorneys’ fees.

The complaint sought certification of a class of all persons who purchased or otherwise acquired the Company's securities from February 21, 2018 through November 6, 2018, and also sought unspecified monetary damages, costs, and attorneys’ fees.

The Company moved to dismiss the class action complaint in its entirety.

3 unchanged sentences

Without any admission of liability or damages, in the third quarter of 2022, the parties settled this matter following that mediation, and filed the necessary documentation for preliminary approval by the court, class notice, and the claims administration process.

The Court granted preliminary approval of the settlement terms and related documentation on January 27, 2023, with a final Settlement Hearing scheduled for May 24, 2023.

The Court's order notes that it "will likely be able to approve the proposed Settlement as fair, reasonable and adequate under Federal Rule of Civil Procedure 23(e)(2)." As a result, during the fourth quarter of 2022, the Company reversed the reserve pertaining to this matter.

The Court granted preliminary approval of the settlement terms and related documentation on January 27, 2023, and conducted the final Settlement Hearing on May 24, 2023, at which time the settlement received final approval as did plaintiffs' fee request.

The Court's preliminary order had previously noted that it "will likely be able to approve the proposed Settlement as fair, reasonable and adequate under Federal Rule of Civil Procedure 23(e)(2)." As a result, during the fourth quarter of 2022, the Company reversed the reserve pertaining to this matter.

The Company maintains insurance that covers the costs arising out of this litigation and resulting settlement having met the deductible and other terms and conditions thereof.

CNDT Q2 2023 Form 10-Q

Skyview Capital LLC and Continuum Global Solutions, LLC v.

10 unchanged sentences

In May 2021, the court denied the motion and allowed the claims to proceed.

This matter has been proceeding through fact and expert discovery.

Fact and expert discovery has been concluded and the parties filed summary judgment motions on July 24, 2023.

Conduent denies all of the 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 estimate of the possible outcome or loss, if any, in excess of currently recorded reserves.

CNDT Q1 2023 Form 10-Q

Conduent Business Services, LLC v.

17 unchanged sentences

As a result of the settlement agreements entered with the insurers, in the three months ended March 31, 2022, the Company received an aggregate sum of $ 38 million, of which $ 14 million was recognized as defense costs recovery in Selling, general and administrative and $ 24 million was recognized in Litigation settlements (recoveries), net.

CNDT Q2 2023 Form 10-Q

Since 2014, Conduent Education Services, LLC, formerly Xerox Education Services LLC (CES), has cooperated with several federal and state agencies regarding a variety of matters, including CES' self-disclosure to the U.S.

7 unchanged sentences

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 March 31, 2023, the Company had $ 631 million of outstanding surety bonds issued to secure its performance of contractual obligations with its clients and $ 91 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.

As of June 30, 2023, the Company had $ 639 million of outstanding surety bonds issued to secure its performance of contractual obligations with its clients and $ 97 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 Q1 2023 Form 10-Q

Note 13 – Preferred Stock

3 unchanged sentences

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.

CNDT Q2 2023 Form 10-Q

Note 14 – Earnings (Loss) per Share

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in millions, except per share data in whole dollars and shares in thousands) 2023 2022 2023 2022

22 unchanged sentences

The components of Other assets and Other liabilities were as follows:

(in millions) March 31, 2023 December 31, 2022

(in millions) June 30, 2023 December 31, 2022

Other Current Assets

3 unchanged sentences

Restricted cash 5 16

Current portion of capitalized cloud computing implementation costs, net 4 5

Total Other Current Assets $ 247 $ 242

12 unchanged sentences

Product software, net 104 110

Cloud computing implementation costs, net 3 4

Deferred tax assets 26 20

12 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in millions) 2023 2022 2023 2022

1 unchanged sentence

Purchases from related parties $ 6 $ 8 $ 12 $ 13

The Company's receivable and payable balances with related party entities were not material as of March 31, 2023 and December 31, 2022.

The Company's receivable and payable balances with related party entities were not material as of June 30, 2023 and December 31, 2022.

CNDT Q2 2023 Form 10-Q

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements