QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2022 |
or |
o | 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: 001-00395 |
Maryland | 31-0387920 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | NCR | New York Stock Exchange |
Large accelerated filer | þ | Accelerated filer | o | ||||||||||||||
Non-accelerated filer | o | Smaller reporting company | |||||||||||||||
Emerging |
PART I. Financial Information | ||||||||
Description | Page | |||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. Other Information | ||||||||
Description | Page | |||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
In millions, except per share amounts | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Product revenue | $ | 590 | $ | 520 | $ | 1,720 | $ | 1,553 | |||||||||||||||
Service revenue | 1,382 | 1,381 | 4,115 | 3,569 | |||||||||||||||||||
Total revenue | 1,972 | 1,901 | 5,835 | 5,122�� | |||||||||||||||||||
Cost of products | 524 | 429 | 1,560 | 1,290 | |||||||||||||||||||
Cost of services | 957 | 952 | 2,902 | 2,442 | |||||||||||||||||||
Selling, general and administrative expenses | 264 | 294 | 886 | 835 | |||||||||||||||||||
Research and development expenses | 40 | 69 | 164 | 204 | |||||||||||||||||||
Total operating expenses | 1,785 | 1,744 | 5,512 | 4,771 | |||||||||||||||||||
Income (loss) from operations | 187 | 157 | 323 | 351 | |||||||||||||||||||
Loss on extinguishment of debt | — | (42) | — | (42) | |||||||||||||||||||
Interest expense | (74) | (68) | (204) | (174) | |||||||||||||||||||
Other income (expense), net | (1) | (5) | 9 | (23) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | 112 | 42 | 128 | 112 | |||||||||||||||||||
Income tax expense (benefit) | 43 | 29 | 56 | 77 | |||||||||||||||||||
Income (loss) from continuing operations | 69 | 13 | 72 | 35 | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 5 | — | |||||||||||||||||||
Net income (loss) | 69 | 13 | 77 | 35 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | — | 1 | 1 | 2 | |||||||||||||||||||
Net income (loss) attributable to NCR | $ | 69 | $ | 12 | $ | 76 | $ | 33 | |||||||||||||||
Amounts attributable to NCR common stockholders: | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | 69 | $ | 12 | $ | 71 | $ | 33 | |||||||||||||||
Series A convertible preferred stock dividends | (4) | (4) | (12) | (12) | |||||||||||||||||||
Income (loss) from continuing operations attributable to NCR common stockholders | 65 | 8 | 59 | 21 | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 5 | — | |||||||||||||||||||
Net income (loss) attributable to NCR common stockholders | $ | 65 | $ | 8 | $ | 64 | $ | 21 | |||||||||||||||
Income (loss) per share attributable to NCR common stockholders: | |||||||||||||||||||||||
Income (loss) per common share from continuing operations | |||||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.06 | $ | 0.43 | $ | 0.16 | |||||||||||||||
Diluted | $ | 0.46 | $ | 0.06 | $ | 0.42 | $ | 0.15 | |||||||||||||||
Net income (loss) per common share | |||||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.06 | $ | 0.47 | $ | 0.16 | |||||||||||||||
Diluted | $ | 0.46 | $ | 0.06 | $ | 0.45 | $ | 0.15 | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | 137.0 | 131.5 | 136.4 | 130.8 | |||||||||||||||||||
Diluted | 140.3 | 137.8 | 140.9 | 137.1 |
In millions, except per share amounts | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Product revenue | $ | 657 | $ | 708 | $ | 1,829 | $ | 1,932 | |||||||
Service revenue | 1,006 | 969 | 2,905 | 2,809 | |||||||||||
Total revenue | 1,663 | 1,677 | 4,734 | 4,741 | |||||||||||
Cost of products | 528 | 528 | 1,430 | 1,487 | |||||||||||
Cost of services | 662 | 672 | 1,955 | 1,951 | |||||||||||
Selling, general and administrative expenses | 220 | 225 | 676 | 678 | |||||||||||
Research and development expenses | 53 | 56 | 178 | 159 | |||||||||||
Restructuring-related charges | — | 7 | — | 13 | |||||||||||
Total operating expenses | 1,463 | 1,488 | 4,239 | 4,288 | |||||||||||
Income from operations | 200 | 189 | 495 | 453 | |||||||||||
Interest expense | (42 | ) | (41 | ) | (122 | ) | (130 | ) | |||||||
Other (expense), net | (8 | ) | (8 | ) | (22 | ) | (33 | ) | |||||||
Income from continuing operations before income taxes | 150 | 140 | 351 | 290 | |||||||||||
Income tax expense | 31 | 31 | 78 | 75 | |||||||||||
Income from continuing operations | 119 | 109 | 273 | 215 | |||||||||||
(Loss) income from discontinued operations, net of tax | — | (2 | ) | 5 | (2 | ) | |||||||||
Net income | 119 | 107 | 278 | 213 | |||||||||||
Net income attributable to noncontrolling interests | 1 | 2 | 1 | — | |||||||||||
Net income attributable to NCR | $ | 118 | $ | 105 | $ | 277 | $ | 213 | |||||||
Amounts attributable to NCR common stockholders: | |||||||||||||||
Income from continuing operations | $ | 118 | $ | 107 | $ | 272 | $ | 215 | |||||||
Series A convertible preferred stock dividends | (12 | ) | (13 | ) | (36 | ) | (37 | ) | |||||||
Deemed dividend on modification of Series A convertible preferred stock | — | — | (4 | ) | — | ||||||||||
Deemed dividend on Series A convertible preferred stock related to redemption | — | — | (58 | ) | — | ||||||||||
Income from continuing operations attributable to NCR common stockholders | 106 | 94 | 174 | 178 | |||||||||||
(Loss) income from discontinued operations, net of tax | — | (2 | ) | 5 | (2 | ) | |||||||||
Net income attributable to NCR common stockholders | $ | 106 | $ | 92 | $ | 179 | $ | 176 | |||||||
Income per share attributable to NCR common stockholders: | |||||||||||||||
Income per common share from continuing operations | |||||||||||||||
Basic | $ | 0.87 | $ | 0.76 | $ | 1.43 | $ | 1.41 | |||||||
Diluted | $ | 0.77 | $ | 0.69 | $ | 1.37 | $ | 1.37 | |||||||
Net income per common share | |||||||||||||||
Basic | $ | 0.87 | $ | 0.74 | $ | 1.47 | $ | 1.40 | |||||||
Diluted | $ | 0.77 | $ | 0.68 | $ | 1.41 | $ | 1.36 | |||||||
Weighted average common shares outstanding | |||||||||||||||
Basic | 121.5 | 123.9 | 121.9 | 126.0 | |||||||||||
Diluted | 153.1 | 155.4 | 126.9 | 156.8 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 119 | $ | 107 | $ | 278 | $ | 213 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Currency translation adjustments | |||||||||||||||
Currency translation gains (losses) | 6 | 3 | 35 | (23 | ) | ||||||||||
Derivatives | |||||||||||||||
Unrealized (losses) gains on derivatives | (5 | ) | 4 | (15 | ) | 4 | |||||||||
(Gains) losses on derivatives recognized during the period | 1 | — | (2 | ) | 2 | ||||||||||
Less income tax benefit (expense) | — | (1 | ) | 3 | (1 | ) | |||||||||
Employee benefit plans | |||||||||||||||
Amortization of prior service benefit | (1 | ) | (4 | ) | (6 | ) | (14 | ) | |||||||
Amortization of actuarial benefit | (1 | ) | — | (2 | ) | (1 | ) | ||||||||
Less income tax benefit | — | 1 | 2 | 4 | |||||||||||
Other comprehensive (loss) income | — | 3 | 15 | (29 | ) | ||||||||||
Total comprehensive income | 119 | 110 | 293 | 184 | |||||||||||
Less comprehensive income attributable to noncontrolling interests: | |||||||||||||||
Net income (loss) | 1 | 2 | 1 | — | |||||||||||
Currency translation losses | (2 | ) | (1 | ) | (2 | ) | (7 | ) | |||||||
Amounts attributable to noncontrolling interests | (1 | ) | 1 | (1 | ) | (7 | ) | ||||||||
Comprehensive income attributable to NCR | $ | 120 | $ | 109 | $ | 294 | 191 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) | $ | 69 | $ | 13 | $ | 77 | $ | 35 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Currency translation adjustments | |||||||||||||||||||||||
Currency translation gains (loss) | (75) | (29) | (154) | (28) | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Unrealized gains (loss) on derivatives | 77 | — | 155 | — | |||||||||||||||||||
Loss (gains) on derivatives recognized during the period | (9) | — | (3) | — | |||||||||||||||||||
Less income tax | (16) | — | (35) | — | |||||||||||||||||||
Employee benefit plans | |||||||||||||||||||||||
Amortization of prior service cost (benefit) | — | — | (1) | (1) | |||||||||||||||||||
Less income tax | — | — | — | — | |||||||||||||||||||
Other comprehensive income (loss) | (23) | (29) | (38) | (29) | |||||||||||||||||||
Total comprehensive income (loss) | 46 | (16) | 39 | 6 | |||||||||||||||||||
Less comprehensive income (loss) attributable to noncontrolling interests: | |||||||||||||||||||||||
Net income (loss) | — | 1 | 1 | 2 | |||||||||||||||||||
Currency translation losses | (2) | — | (3) | — | |||||||||||||||||||
Amounts attributable to noncontrolling interests | (2) | 1 | (2) | 2 | |||||||||||||||||||
Comprehensive income (loss) attributable to NCR | $ | 48 | $ | (17) | $ | 41 | $ | 4 |
In millions, except per share amounts | September 30, 2017 | December 31, 2016 | In millions, except per share amounts | September 30, 2022 | December 31, 2021 | |||||||||||||
Assets | Assets | |||||||||||||||||
Current assets | Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 405 | $ | 498 | Cash and cash equivalents | $ | 434 | $ | 447 | |||||||||
Accounts receivable, net | 1,408 | 1,282 | ||||||||||||||||
Accounts receivable, net of allowances of $29 and $24 as of September 30, 2022 and December 31, 2021, respectively | Accounts receivable, net of allowances of $29 and $24 as of September 30, 2022 and December 31, 2021, respectively | 1,116 | 959 | |||||||||||||||
Inventories | 824 | 699 | Inventories | 827 | 754 | |||||||||||||
Restricted cash | Restricted cash | 302 | 295 | |||||||||||||||
Other current assets | 263 | 278 | Other current assets | 512 | 421 | |||||||||||||
Total current assets | 2,900 | 2,757 | Total current assets | 3,191 | 2,876 | |||||||||||||
Property, plant and equipment, net | 321 | 287 | Property, plant and equipment, net | 620 | 703 | |||||||||||||
Goodwill | 2,741 | 2,727 | Goodwill | 4,572 | 4,519 | |||||||||||||
Intangibles, net | 591 | 672 | Intangibles, net | 1,184 | 1,316 | |||||||||||||
Operating lease assets | Operating lease assets | 377 | 419 | |||||||||||||||
Prepaid pension cost | 115 | 94 | Prepaid pension cost | 263 | 300 | |||||||||||||
Deferred income taxes | 595 | 575 | Deferred income taxes | 678 | 732 | |||||||||||||
Other assets | 587 | 561 | Other assets | 898 | 776 | |||||||||||||
Total assets | $ | 7,850 | $ | 7,673 | Total assets | $ | 11,783 | $ | 11,641 | |||||||||
Liabilities and stockholders’ equity | Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | Current liabilities | |||||||||||||||||
Short-term borrowings | $ | 269 | $ | 50 | Short-term borrowings | $ | 106 | $ | 57 | |||||||||
Accounts payable | 720 | 781 | Accounts payable | 876 | 826 | |||||||||||||
Payroll and benefits liabilities | 202 | 234 | Payroll and benefits liabilities | 319 | 389 | |||||||||||||
Deferred service revenue and customer deposits | 465 | 468 | ||||||||||||||||
Contract liabilities | Contract liabilities | 507 | 516 | |||||||||||||||
Settlement liabilities | Settlement liabilities | 271 | 263 | |||||||||||||||
Other current liabilities | 390 | 432 | Other current liabilities | 691 | 757 | |||||||||||||
Total current liabilities | 2,046 | 1,965 | Total current liabilities | 2,770 | 2,808 | |||||||||||||
Long-term debt | 2,984 | 3,001 | Long-term debt | 5,611 | 5,505 | |||||||||||||
Pension and indemnity plan liabilities | 771 | 739 | Pension and indemnity plan liabilities | 723 | 789 | |||||||||||||
Postretirement and postemployment benefits liabilities | 127 | 127 | Postretirement and postemployment benefits liabilities | 121 | 119 | |||||||||||||
Income tax accruals | 138 | 142 | Income tax accruals | 108 | 116 | |||||||||||||
Operating lease liabilities | Operating lease liabilities | 358 | 388 | |||||||||||||||
Other liabilities | 197 | 138 | Other liabilities | 371 | 383 | |||||||||||||
Total liabilities | 6,263 | 6,112 | Total liabilities | 10,062 | 10,108 | |||||||||||||
Commitments and Contingencies (Note 7) | ||||||||||||||||||
Redeemable noncontrolling interest | 14 | 15 | ||||||||||||||||
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.8 shares issued and outstanding as of September 30, 2017 and, 0.9 shares issued and outstanding as of December 31, 2016; redemption amount and liquidation preference of $813 and $870 as of September 30, 2017 and December 31, 2016, respectively | 799 | 847 | ||||||||||||||||
Commitments and Contingencies (Note 10) | Commitments and Contingencies (Note 10) | |||||||||||||||||
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.3 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively; redemption amount and liquidation preference of $276 as of September 30, 2022 and December 31, 2021, respectively | Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.3 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively; redemption amount and liquidation preference of $276 as of September 30, 2022 and December 31, 2021, respectively | 275 | 274 | |||||||||||||||
Stockholders’ equity | Stockholders’ equity | |||||||||||||||||
NCR stockholders’ equity | NCR stockholders’ equity | |||||||||||||||||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | — | — | ||||||||||||||||
Common stock: par value $0.01 per share, 500.0 shares authorized, 121.5 and 124.6 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 1 | 1 | ||||||||||||||||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | — | — | |||||||||||||||
Common stock: par value $0.01 per share, 500.0 shares authorized, 137.0 and 132.2 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | Common stock: par value $0.01 per share, 500.0 shares authorized, 137.0 and 132.2 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 1 | 1 | |||||||||||||||
Paid-in capital | 44 | 32 | Paid-in capital | 675 | 515 | |||||||||||||
Retained earnings | 913 | 867 | Retained earnings | 1,095 | 1,031 | |||||||||||||
Accumulated other comprehensive loss | (188 | ) | (205) | Accumulated other comprehensive loss | (326) | (291) | ||||||||||||
Total NCR stockholders’ equity | 770 | 695 | Total NCR stockholders’ equity | 1,445 | 1,256 | |||||||||||||
Noncontrolling interests in subsidiaries | 4 | 4 | Noncontrolling interests in subsidiaries | 1 | 3 | |||||||||||||
Total stockholders’ equity | 774 | 699 | Total stockholders’ equity | 1,446 | 1,259 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 7,850 | $ | 7,673 | Total liabilities and stockholders’ equity | $ | 11,783 | $ | 11,641 |
In millions | Nine months ended September 30 | ||||||||||
2022 | 2021 | ||||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 77 | $ | 35 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Loss (income) from discontinued operations | (5) | — | |||||||||
Loss on debt extinguishment | — | 42 | |||||||||
Depreciation and amortization | 451 | 364 | |||||||||
Stock-based compensation expense | 97 | 119 | |||||||||
Deferred income taxes | 24 | 30 | |||||||||
Loss (gain) on disposal of property, plant and equipment and other assets | 4 | — | |||||||||
Changes in assets and liabilities, net of effects of business acquired: | |||||||||||
Receivables | (274) | 240 | |||||||||
Inventories | (220) | (165) | |||||||||
Current payables and accrued expenses | 113 | 210 | |||||||||
Contract liabilities | (24) | 5 | |||||||||
Employee benefit plans | (3) | (30) | |||||||||
Other assets and liabilities | 5 | (43) | |||||||||
Net cash provided by operating activities | $ | 245 | $ | 807 | |||||||
Investing activities | |||||||||||
Expenditures for property, plant and equipment | $ | (72) | $ | (68) | |||||||
Proceeds from sale of property, plant and equipment and other assets | 8 | 1 | |||||||||
Additions to capitalized software | (217) | (174) | |||||||||
Business acquisitions, net of cash acquired | (12) | (2,466) | |||||||||
Purchases of short-term investments | — | (13) | |||||||||
Proceeds from sales of short-term investments | — | 14 | |||||||||
Other investing activities, net | (5) | (6) | |||||||||
Net cash used in investing activities | $ | (298) | $ | (2,712) | |||||||
Financing activities | |||||||||||
Payments on term credit facilities | $ | (31) | $ | (106) | |||||||
Payments on revolving credit facilities | (846) | (1,431) | |||||||||
Payments of senior unsecured notes | — | (400) | |||||||||
Borrowings on term credit facilities | — | 1,505 | |||||||||
Borrowings on revolving credit facilities | 1,021 | 1,541 | |||||||||
Proceeds from issuance of senior unsecured notes | — | 1,200 | |||||||||
Debt issuance costs and bridge commitment fees | — | (52) | |||||||||
Call premium paid on debt extinguishment | — | (37) | |||||||||
Cash dividend paid for Series A preferred shares dividends | (11) | (11) | |||||||||
Proceeds from employee stock plans | 19 | 33 | |||||||||
Tax withholding payments on behalf of employees | (38) | (28) | |||||||||
Net change in client funds obligations | (6) | (3) | |||||||||
Principal payments for finance lease obligations | (12) | (13) | |||||||||
Other financing activities | (3) | (2) | |||||||||
Net cash provided by (used in) financing activities | $ | 93 | $ | 2,196 | |||||||
Cash flows from discontinued operations | |||||||||||
Net cash provided by (used in) operating activities of discontinued operations | $ | (1) | $ | (50) | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (43) | (12) | |||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | (4) | 229 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 749 | 406 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 745 | $ | 635 | |||||||
In millions | Nine months ended September 30 | ||||||
2017 | 2016 | ||||||
Operating activities | |||||||
Net income | $ | 278 | $ | 213 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
(Income) loss from discontinued operations | (5 | ) | 2 | ||||
Depreciation and amortization | 263 | 259 | |||||
Stock-based compensation expense | 60 | 45 | |||||
Deferred income tax expense | 19 | 39 | |||||
Gain on sale of property, plant and equipment | (2 | ) | — | ||||
Loss on divestiture | — | 1 | |||||
Impairment of other assets | 1 | 2 | |||||
Changes in assets and liabilities: | |||||||
Receivables | (107 | ) | (138 | ) | |||
Inventories | (120 | ) | (128 | ) | |||
Current payables and accrued expenses | (132 | ) | 68 | ||||
Deferred service revenue and customer deposits | 20 | 78 | |||||
Employee benefit plans | (13 | ) | (38 | ) | |||
Other assets and liabilities | 9 | (34 | ) | ||||
Net cash provided by operating activities | 271 | 369 | |||||
Investing activities | |||||||
Expenditures for property, plant and equipment | (81 | ) | (45 | ) | |||
Proceeds from sale of property, plant and equipment | 6 | — | |||||
Additions to capitalized software | (125 | ) | (115 | ) | |||
Proceeds from divestiture | — | 47 | |||||
Other investing activities, net | — | (8 | ) | ||||
Net cash used in investing activities | (200 | ) | (121 | ) | |||
Financing activities | |||||||
Short term borrowings, net | 10 | (2 | ) | ||||
Payments on term credit facilities | (37 | ) | (84 | ) | |||
Payments on revolving credit facilities | (1,110 | ) | (736 | ) | |||
Borrowings on revolving credit facilities | 1,335 | 856 | |||||
Debt issuance costs | — | (8 | ) | ||||
Repurchases of Company common stock | (350 | ) | (250 | ) | |||
Proceeds from employee stock plans | 11 | 10 | |||||
Tax withholding payments on behalf of employees | (24 | ) | (7 | ) | |||
Other financing activities | (1 | ) | (2 | ) | |||
Net cash used in financing activities | (166 | ) | (223 | ) | |||
Cash flows from discontinued operations | |||||||
Net cash used in operating activities | (14 | ) | (30 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 16 | (5 | ) | ||||
(Decrease) increase in cash and cash equivalents | (93 | ) | (10 | ) | |||
Cash and cash equivalents at beginning of period | 498 | 328 | |||||
Cash and cash equivalents at end of period | $ | 405 | $ | 318 |
NCR Stockholders | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive (Loss) Income | Non-Redeemable Noncontrolling Interests in Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||
In millions | Shares | Amount | Paid-in Capital | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||||||
December 31, 2021 | 132 | $ | 1 | $ | 515 | $ | 1,031 | $ | (291) | $ | 3 | $ | 1,259 | |||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (34) | — | (1) | (35) | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 18 | — | 18 | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | (34) | 18 | (1) | (17) | |||||||||||||||||||||||||||||||||||||
Employee stock purchase and stock compensation plans | 3 | — | 19 | — | — | — | 19 | |||||||||||||||||||||||||||||||||||||
Stock issued in acquisition of LibertyX | 1 | — | 68 | — | — | — | 68 | |||||||||||||||||||||||||||||||||||||
Series A convertible preferred stock dividends | — | — | — | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||
March 31, 2022 | 136 | $ | 1 | $ | 602 | $ | 993 | $ | (273) | $ | 2 | $ | 1,325 | |||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 41 | — | 2 | 43 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (32) | (1) | (33) | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 41 | (32) | 1 | 10 | |||||||||||||||||||||||||||||||||||||
Employee stock purchase and stock compensation plans | 1 | — | 42 | — | — | — | 42 | |||||||||||||||||||||||||||||||||||||
Series A convertible preferred stock dividends | — | — | — | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||
June 30, 2022 | 137 | $ | 1 | $ | 644 | $ | 1,030 | $ | (305) | $ | 3 | $ | 1,373 | |||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 69 | — | — | 69 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (21) | (2) | (23) | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 69 | (21) | (2) | 46 | |||||||||||||||||||||||||||||||||||||
Employee stock purchase and stock compensation plans | — | — | 31 | — | — | — | 31 | |||||||||||||||||||||||||||||||||||||
Series A convertible preferred stock dividends | — | — | — | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||
September 30, 2022 | 137 | $ | 1 | $ | 675 | $ | 1,095 | $ | (326) | $ | 1 | $ | 1,446 |
NCR Stockholders | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive (Loss) Income | Non-Redeemable Noncontrolling Interests in Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||
In millions | Shares | Amount | Paid-in Capital | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||||||
December 31, 2020 | 129 | $ | 1 | $ | 368 | $ | 950 | $ | (271) | $ | 3 | $ | 1,051 | |||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 30 | — | 1 | 31 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (8) | — | (8) | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 30 | (8) | 1 | 23 | |||||||||||||||||||||||||||||||||||||
Employee stock purchase and stock compensation plans | 2 | — | 30 | — | — | — | 30 | |||||||||||||||||||||||||||||||||||||
Series A convertible preferred stock dividends | — | — | — | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||
March 31, 2021 | 131 | $ | 1 | $ | 398 | $ | 976 | $ | (279) | $ | 4 | $ | 1,100 | |||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (9) | — | — | (9) | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 8 | — | 8 | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | (9) | 8 | — | (1) | |||||||||||||||||||||||||||||||||||||
Employee stock purchase and stock compensation plans | — | — | 44 | — | — | — | 44 | |||||||||||||||||||||||||||||||||||||
Fair value of converted Cardtronics awards attributable to pre-combination services | — | — | 19 | — | — | — | 19 | |||||||||||||||||||||||||||||||||||||
Series A convertible preferred stock dividends | — | — | — | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||
June 30, 2021 | 131 | $ | 1 | $ | 461 | $ | 963 | $ | (271) | $ | 4 | $ | 1,158 | |||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 12 | — | 1 | 13 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (29) | — | (29) | |||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 12 | (29) | 1 | (16) | |||||||||||||||||||||||||||||||||||||
Employee stock purchase and stock compensation plans | 1 | — | 50 | — | — | — | 50 | |||||||||||||||||||||||||||||||||||||
Series A convertible preferred stock dividends | — | — | — | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||
September 30, 2021 | 132 | $ | 1 | $ | 511 | $ | 971 | $ | (300) | $ | 5 | $ | 1,188 |
In millions | September 30 | |||||||||||||||||||
Balance Sheet Location | 2022 | 2021 | ||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 434 | $ | 383 | |||||||||||||||
Short term restricted cash | Restricted cash | 7 | — | |||||||||||||||||
Long term restricted cash | Other assets | 9 | 6 | |||||||||||||||||
Funds held for client | Restricted cash | 42 | 41 | |||||||||||||||||
Cash included in settlement processing assets | Restricted cash | 253 | 205 | |||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 745 | $ | 635 |
In millions | Location in the Condensed Consolidated Balance Sheet | September 30, 2022 | December 31, 2021 | ||||||||||||||
Current portion of contract liabilities | Contract liabilities | $ | 507 | $ | 516 | ||||||||||||
Non-current portion of contract liabilities | Other liabilities | $ | 56 | $ | 69 |
In millions | Fair Value | ||||
Cash acquired | $ | 2 | |||
Tangible assets acquired | 3 | ||||
Acquired intangible assets other than goodwill | 38 | ||||
Acquired goodwill | 41 | ||||
Deferred tax liabilities | (11) | ||||
Liabilities assumed | (4) | ||||
Total purchase consideration | $ | 69 |
Fair Value | Weighted Average Amortization Period (1) | ||||||||||
(In millions) | (In years) | ||||||||||
Direct customer relationships | $ | 5 | 10 | ||||||||
Technology - Software | 30 | 13 | |||||||||
Non-compete | 1 | 1 | |||||||||
Tradenames | 2 | 2 | |||||||||
Total acquired intangible assets | $ | 38 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2021 | 2021 | ||||||||||||||||||||||
Revenue | $ | 1,901 | $ | 5,632 | |||||||||||||||||||
Net Income attributable to NCR | $ | 12 | $ | 81 |
December 31, 2021 | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
In millions | Goodwill | Accumulated Impairment | Total | Additions | Impairment | Other | Goodwill | Accumulated Impairment | Total | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 1,015 | $ | (34) | $ | 981 | $ | — | $ | — | $ | (20) | $ | 995 | $ | (34) | $ | 961 | |||||||||||||||||||||||||||||
Hospitality | 292 | (23) | 269 | — | — | (5) | 287 | (23) | 264 | ||||||||||||||||||||||||||||||||||||||
Digital Banking | 595 | — | 595 | — | — | 6 | 601 | — | 601 | ||||||||||||||||||||||||||||||||||||||
Payments & Network | 988 | — | 988 | 51 | — | 8 | 1,047 | — | 1,047 | ||||||||||||||||||||||||||||||||||||||
Self-Service Banking | 1,635 | (101) | 1,534 | — | — | 13 | 1,648 | (101) | 1,547 | ||||||||||||||||||||||||||||||||||||||
Other(1) | 163 | (11) | 152 | — | — | — | 163 | (11) | 152 | ||||||||||||||||||||||||||||||||||||||
Total goodwill | $ | 4,688 | $ | (169) | $ | 4,519 | $ | 51 | $ | — | $ | 2 | $ | 4,741 | $ | (169) | $ | 4,572 |
December 31, 2016 | September 30, 2017 | ||||||||||||||||||||||||||||||||||
In millions | Goodwill | Accumulated Impairment Losses | Total | Additions | Impairment | Other | Goodwill | Accumulated Impairment Losses | Total | ||||||||||||||||||||||||||
Software | $ | 1,930 | $ | (7 | ) | $ | 1,923 | $ | — | $ | — | $ | 14 | $ | 1,944 | $ | (7 | ) | $ | 1,937 | |||||||||||||||
Services | 658 | — | 658 | — | — | — | 658 | — | 658 | ||||||||||||||||||||||||||
Hardware | 162 | (16 | ) | 146 | — | — | — | 162 | (16 | ) | 146 | ||||||||||||||||||||||||
Total goodwill | $ | 2,750 | $ | (23 | ) | $ | 2,727 | $ | — | $ | — | $ | 14 | $ | 2,764 | $ | (23 | ) | $ | 2,741 |
Amortization Period (in Years) | September 30, 2017 | December 31, 2016 | |||||||||||||||
In millions | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Identifiable intangible assets | |||||||||||||||||
Reseller & customer relationships | 1 - 20 | $ | 659 | $ | (159 | ) | $ | 656 | $ | (128 | ) | ||||||
Intellectual property | 2 - 8 | 394 | (339 | ) | 392 | (302 | ) | ||||||||||
Customer contracts | 8 | 89 | (77 | ) | 89 | (66 | ) | ||||||||||
Tradenames | 2 - 10 | 73 | (49 | ) | 73 | (42 | ) | ||||||||||
Total identifiable intangible assets | $ | 1,215 | $ | (624 | ) | $ | 1,210 | $ | (538 | ) |
In millions | Three months ended September 30, 2017 | Nine months ended September 30, 2017 | Remainder of 2017 (estimated) | ||||||||
Amortization expense | $ | 29 | $ | 86 | $ | 30 |
For the years ended December 31 (estimated) | ||||||||||||||||||||
In millions | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||||||||||
Amortization expense | $ | 85 | $ | 75 | $ | 57 | $ | 49 | $ | 45 |
Amortization Period (in Years) | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
In millions | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||||||||
Identifiable intangible assets | |||||||||||||||||||||||||||||
Reseller & customer relationships | 1 - 20 | $ | 1,113 | $ | (449) | $ | 1,126 | $ | (391) | ||||||||||||||||||||
Intellectual property | 2 - 8 | 1,022 | (537) | 1,008 | (474) | ||||||||||||||||||||||||
Customer contracts | 8 | 89 | (89) | 89 | (89) | ||||||||||||||||||||||||
Tradenames | 1 - 10 | 127 | (92) | 130 | (83) | ||||||||||||||||||||||||
Total identifiable intangible assets | $ | 2,351 | $ | (1,167) | $ | 2,353 | $ | (1,037) |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Amortization expense | $ | 44 | $ | 45 | $ | 130 | $ | 88 |
For the years ended December 31 | |||||||||||||||||||||||||||||||||||
In millions | Remainder of 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |||||||||||||||||||||||||||||
Amortization expense | $ | 44 | $ | 174 | $ | 163 | $ | 151 | $ | 141 | $ | 125 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue by segment | |||||||||||||||||||||||
Retail | $ | 575 | $ | 541 | $ | 1,683 | $ | 1,623 | |||||||||||||||
Hospitality | 238 | 224 | 687 | 618 | |||||||||||||||||||
Digital Banking | 137 | 128 | 404 | 380 | |||||||||||||||||||
Payments & Network | 336 | 304 | 967 | 380 | |||||||||||||||||||
Self-Service Banking | 640 | 637 | 1,930 | 1,910 | |||||||||||||||||||
Other | 58 | 75 | 187 | 229 | |||||||||||||||||||
Eliminations | (12) | (8) | (32) | (18) | |||||||||||||||||||
Total segment revenue | $ | 1,972 | $ | 1,901 | $ | 5,826 | $ | 5,122 | |||||||||||||||
Other adjustment (1) | — | — | 9 | — | |||||||||||||||||||
Consolidated revenue | $ | 1,972 | $ | 1,901 | $ | 5,835 | $ | 5,122 | |||||||||||||||
Adjusted EBITDA by segment | |||||||||||||||||||||||
Retail | $ | 128 | $ | 104 | $ | 299 | $ | 323 | |||||||||||||||
Hospitality | 51 | 44 | 138 | 119 | |||||||||||||||||||
Digital Banking | 60 | 52 | 172 | 161 | |||||||||||||||||||
Payments & Network | 114 | 111 | 309 | 133 | |||||||||||||||||||
Self-Service Banking | 150 | 155 | 404 | 432 | |||||||||||||||||||
Corporate and Other | (112) | (109) | (307) | (265) | |||||||||||||||||||
Eliminations | (11) | (5) | (25) | (12) | |||||||||||||||||||
Total Adjusted EBITDA | $ | 380 | $ | 352 | $ | 990 | $ | 891 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) from continuing operations attributable to NCR | $ | 69 | $ | 12 | $ | 71 | $ | 33 | |||||||||||||||
Transformation and restructuring costs | 17 | 5 | 93 | 20 | |||||||||||||||||||
Acquisition-related amortization of intangibles | 44 | 45 | 130 | 88 | |||||||||||||||||||
Acquisition-related costs | 1 | 9 | 9 | 92 | |||||||||||||||||||
Loss on debt extinguishment | — | 42 | — | 42 | |||||||||||||||||||
Interest expense | 74 | 68 | 204 | 174 | |||||||||||||||||||
Interest income | (3) | — | (6) | (4) | |||||||||||||||||||
Depreciation and amortization (excluding acquisition-related amortization of intangibles) | 107 | 104 | 314 | 250 | |||||||||||||||||||
Income tax expense (benefit) | 43 | 29 | 56 | 77 | |||||||||||||||||||
Stock-based compensation expense | 28 | 38 | 97 | 119 | |||||||||||||||||||
Russia | — | — | 22 | — | |||||||||||||||||||
Total Adjusted EBITDA | $ | 380 | $ | 352 | $ | 990 | $ | 891 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Americas | $ | 1,320 | $ | 1,185 | $ | 3,777 | $ | 3,121 | |||||||||||||||
Europe, Middle East and Africa (EMEA) | 403 | 494 | 1,367 | 1,358 | |||||||||||||||||||
Asia Pacific (APJ) | 249 | 222 | 691 | 643 | |||||||||||||||||||
Total revenue | $ | 1,972 | $ | 1,901 | $ | 5,835 | $ | 5,122 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Recurring revenue (1) | $ | 1,222 | $ | 1,181 | $ | 3,618 | $ | 2,984 | |||||||||||||||
All other products and services | 750 | 720 | 2,217 | 2,138 | |||||||||||||||||||
Total revenue | $ | 1,972 | $ | 1,901 | $ | 5,835 | $ | 5,122 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
In millions, except percentages | Amount | Weighted-Average Interest Rate | Amount | Weighted-Average Interest Rate | ||||||||||||||||||||||
Short-Term Borrowings | ||||||||||||||||||||||||||
Current portion of Senior Secured Credit Facility (1) | $ | 105 | 5.01% | $ | 56 | 2.63% | ||||||||||||||||||||
Other (1) | 1 | 4.60% | 1 | 2.13% | ||||||||||||||||||||||
Total short-term borrowings | $ | 106 | $ | 57 | ||||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||||
Senior Secured Credit Facility: | ||||||||||||||||||||||||||
Term loan facility (1) | $ | 1,805 | 5.12% | $ | 1,884 | 2.63% | ||||||||||||||||||||
Revolving credit facility (1) | 558 | 5.20% | 380 | 2.36% | ||||||||||||||||||||||
Senior notes: | ||||||||||||||||||||||||||
5.750% Senior Notes due 2027 | 500 | 500 | ||||||||||||||||||||||||
5.000% Senior Notes due 2028 | 650 | 650 | ||||||||||||||||||||||||
5.125% Senior Notes due 2029 | 1,200 | 1,200 | ||||||||||||||||||||||||
6.125% Senior Notes due 2029 | 500 | 500 | ||||||||||||||||||||||||
5.250% Senior Notes due 2030 | 450 | 450 | ||||||||||||||||||||||||
Deferred financing fees | (52) | (60) | ||||||||||||||||||||||||
Other (1) | — | 1 | 6.62% | |||||||||||||||||||||||
Total long-term debt | $ | 5,611 | $ | 5,505 |
September 30, 2017 | December 31, 2016 | |||||||||||
In millions, except percentages | Amount | Weighted-Average Interest Rate | Amount | Weighted-Average Interest Rate | ||||||||
Short-Term Borrowings | ||||||||||||
Current portion of Senior Secured Credit Facility (1) | $ | 56 | 2.99% | $ | 45 | 2.88% | ||||||
Trade Receivables Securitization Facility (1) | 200 | 2.09% | — | |||||||||
Other (2) | 13 | 13.08% | 5 | 7.41% | ||||||||
Total short-term borrowings | $ | 269 | $ | 50 | ||||||||
Long-Term Debt | ||||||||||||
Senior Secured Credit Facility: | ||||||||||||
Term loan facility (1) | $ | 776 | 2.99% | $ | 821 | 2.88% | ||||||
Revolving credit facility (1) | 25 | 2.99% | — | |||||||||
Senior notes: | ||||||||||||
5.00% Senior Notes due 2022 | 600 | 600 | ||||||||||
4.625% Senior Notes due 2021 | 500 | 500 | ||||||||||
5.875% Senior Notes due 2021 | 400 | 400 | ||||||||||
6.375% Senior Notes due 2023 | 700 | 700 | ||||||||||
Deferred financing fees | (25 | ) | (29 | ) | ||||||||
Other (2) | 8 | 6.51% | 9 | 6.64% | ||||||||
Total long-term debt | $ | 2,984 | $ | 3,001 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Restricted stock units | $ | 22 | $ | 30 | $ | 76 | $ | 96 | |||||||||||||||
Stock options | 4 | 6 | 14 | 17 | |||||||||||||||||||
Employee stock purchase plan | 2 | 2 | 7 | 6 | |||||||||||||||||||
Stock-based compensation expense | 28 | 38 | 97 | 119 | |||||||||||||||||||
Tax benefit | (5) | (5) | (13) | (14) | |||||||||||||||||||
Stock-based compensation expense (net of tax) | $ | 23 | $ | 33 | $ | 84 | $ | 105 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Restricted stock units | $ | 18 | $ | 16 | $ | 57 | $ | 45 | |||||||
Employee stock purchase plan | 1 | — | 3 | — | |||||||||||
Stock-based compensation expense | 19 | 16 | 60 | 45 | |||||||||||
Tax benefit | (9) | (6) | (21) | (14 | ) | ||||||||||
Total stock-based compensation expense (net of tax) | $ | 10 | $ | 10 | $ | 39 | $ | 31 |
Dividend yield | — | % | |||
Risk-free interest rate | 1.73 | % | |||
Expected volatility | 59.26 | % |
In millions | U.S. Pension Benefits | International Pension Benefits | Total Pension Benefits | ||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Net service cost | $ | — | $ | — | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||||||||||||||||||
Interest cost | 10 | 9 | 3 | 2 | 13 | 11 | |||||||||||||||||||||||||||||
Expected return on plan assets | (17) | (8) | (6) | (6) | (23) | (14) | |||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | (7) | $ | 1 | $ | (2) | $ | (2) | $ | (9) | $ | (1) |
In millions | U.S. Pension Benefits | International Pension Benefits | Total Pension Benefits | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net service cost | $ | — | $ | — | $ | 1 | $ | 2 | $ | 1 | $ | 2 | |||||||||||
Interest cost | 18 | 23 | 4 | 7 | 22 | 30 | |||||||||||||||||
Expected return on plan assets | (14 | ) | (18 | ) | (9 | ) | (10 | ) | (23 | ) | (28 | ) | |||||||||||
Amortization of prior service cost | — | — | 1 | 1 | 1 | 1 | |||||||||||||||||
Net periodic benefit cost (income) | $ | 4 | $ | 5 | $ | (3 | ) | $ | — | $ | 1 | $ | 5 |
In millions | U.S. Pension Benefits | International Pension Benefits | Total Pension Benefits | ||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Net service cost | $ | — | $ | — | $ | 3 | $ | 4 | $ | 3 | $ | 4 | |||||||||||||||||||||||
Interest cost | 30 | 26 | 9 | 6 | 39 | 32 | |||||||||||||||||||||||||||||
Expected return on plan assets | (50) | (23) | (20) | (18) | (70) | (41) | |||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | (20) | $ | 3 | $ | (8) | $ | (7) | $ | (28) | $ | (4) |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Interest cost | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Amortization of: | |||||||||||||||||||||||
Prior service benefit | — | — | — | — | |||||||||||||||||||
Actuarial loss | 1 | 1 | 1 | 1 | |||||||||||||||||||
Net postretirement benefit | $ | 1 | $ | 1 | $ | 1 | $ | 1 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net service cost | $ | 8 | $ | 4 | $ | 57 | $ | 13 | ||||||||||||||||||
Interest cost | 1 | — | 2 | 1 | ||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||
Prior service benefit | — | (1) | (1) | (2) | ||||||||||||||||||||||
Actuarial gain | (1) | (1) | (1) | (1) | ||||||||||||||||||||||
Net benefit cost | $ | 8 | $ | 2 | $ | 57 | $ | 11 |
In millions | U.S. Pension Benefits | International Pension Benefits | Total Pension Benefits | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net service cost | $ | — | $ | — | $ | 5 | $ | 6 | $ | 5 | $ | 6 | |||||||||||
Interest cost | 54 | 68 | 14 | 21 | 68 | 89 | |||||||||||||||||
Expected return on plan assets | (43 | ) | (54 | ) | (26 | ) | (28 | ) | (69 | ) | (82 | ) | |||||||||||
Amortization of prior service cost | — | — | 1 | 1 | 1 | 1 | |||||||||||||||||
Net periodic benefit cost (income) | $ | 11 | $ | 14 | $ | (6 | ) | $ | — | $ | 5 | $ | 14 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
In millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Interest cost | $ | 1 | $ | — | $ | 1 | $ | — | |||||||
Amortization of: | |||||||||||||||
Prior service benefit | $ | (1 | ) | $ | (4 | ) | (4 | ) | (11 | ) | |||||
Actuarial loss | — | 1 | 1 | 2 | |||||||||||
Net postretirement benefit | $ | — | $ | (3 | ) | $ | (2 | ) | $ | (9 | ) |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
In millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net service cost | $ | 7 | $ | 4 | $ | 26 | $ | 12 | |||||||
Interest cost | 1 | — | 2 | 1 | |||||||||||
Amortization of: | |||||||||||||||
Prior service benefit | (1 | ) | (1 | ) | (3 | ) | (4 | ) | |||||||
Actuarial gain | (1 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||
Net benefit cost | $ | 6 | $ | 2 | $ | 22 | $ | 6 | |||||||
Restructuring severance cost | — | 2 | — | 4 | |||||||||||
Total postemployment cost | $ | 6 | $ | 4 | $ | 22 | $ | 10 |
In millions | 2017 | 2016 | In millions | 2022 | 2021 | |||||||||||||
Warranty reserve liability | Warranty reserve liability | |||||||||||||||||
Beginning balance as of January 1 | $ | 27 | $ | 24 | Beginning balance as of January 1 | $ | 19 | $ | 18 | |||||||||
Accruals for warranties issued | 29 | 31 | Accruals for warranties issued | 14 | 20 | |||||||||||||
Settlements (in cash or in kind) | (31 | ) | (29 | ) | Settlements (in cash or in kind) | (19) | (20) | |||||||||||
Ending balance as of September 30 | $ | 25 | $ | 26 | Ending balance as of September 30 | $ | 14 | $ | 18 |
in millions | NCR Stockholders' Equity | Non-Redeemable Noncontrolling Interests in Subsidiaries | Total Stockholders' Equity | ||||||
Balance at December 31, 2016 | $ | 695 | $ | 4 | $ | 699 | |||
Adoption of share-based compensation accounting standard update | 39 | — | 39 | ||||||
Balance at January 1, 2017 | 734 | 4 | 738 | ||||||
Net income | 277 | 2 | 279 | ||||||
Other comprehensive income | 17 | (2 | ) | 15 | |||||
Repurchases of Company common stock | (350 | ) | — | (350 | ) | ||||
Series A Convertible Preferred Stock dividends | (36 | ) | — | (36 | ) | ||||
Deemed dividend on modification of Series A Convertible Preferred Stock | (4 | ) | — | (4 | ) | ||||
Redemption of Series A Convertible Preferred Stock | 87 | — | 87 | ||||||
Employee stock compensation expense | 60 | — | 60 | ||||||
Tax witholdings related to vesting of stock based awards | (26 | ) | — | (26 | ) | ||||
Proceeds from employee stock plans | 11 | — | 11 | ||||||
Balance at September 30, 2017 | $ | 770 | $ | 4 | $ | 774 |
In millions, except per share amounts | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 69 | $ | 12 | $ | 71 | $ | 33 | ||||||||||||||||||
Dividends on Series A Convertible Preferred Stock | (4) | (4) | (12) | (12) | ||||||||||||||||||||||
Income (loss) from continuing operations attributable to NCR common stockholders | 65 | 8 | 59 | 21 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | 5 | — | ||||||||||||||||||||||
Net income (loss) attributable to NCR common stockholders | $ | 65 | $ | 8 | $ | 64 | $ | 21 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Basic weighted average number of shares outstanding | 137.0 | 131.5 | 136.4 | 130.8 | ||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||
From continuing operations | $ | 0.47 | $ | 0.06 | $ | 0.43 | $ | 0.16 | ||||||||||||||||||
From discontinued operations | — | — | 0.04 | — | ||||||||||||||||||||||
Total basic earnings per share | $ | 0.47 | $ | 0.06 | $ | 0.47 | $ | 0.16 |
In millions, except per share amounts | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Numerator | ||||||||||||||||
Income from continuing operations | $ | 118 | $ | 107 | $ | 272 | $ | 215 | ||||||||
Series A Convertible Preferred Stock dividends | (12 | ) | (13 | ) | (36 | ) | (37 | ) | ||||||||
Deemed dividend on modification of Series A Convertible Preferred Stock | — | — | (4 | ) | — | |||||||||||
Deemed dividend on Series A Convertible Preferred Stock redemption | — | — | (58 | ) | — | |||||||||||
Net income from continuing operations attributable to NCR common stockholders | 106 | 94 | 174 | 178 | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | (2 | ) | 5 | (2 | ) | ||||||||||
Net income attributable to NCR common stockholders | $ | 106 | $ | 92 | $ | 179 | $ | 176 | ||||||||
Denominator | ||||||||||||||||
Basic weighted average number of shares outstanding | 121.5 | 123.9 | 121.9 | 126.0 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
From continuing operations | $ | 0.87 | $ | 0.76 | $ | 1.43 | $ | 1.41 | ||||||||
From discontinued operations | — | (0.02 | ) | 0.04 | (0.01 | ) | ||||||||||
Total basic earnings per share | $ | 0.87 | $ | 0.74 | $ | 1.47 | $ | 1.40 |
In millions, except per share amounts | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | 69 | $ | 12 | $ | 71 | $ | 33 | |||||||||||||||
Dividends on Series A Convertible Preferred Stock | (4) | (4) | (12) | (12) | |||||||||||||||||||
Income (loss) from continuing operations attributable to NCR common stockholders | 65 | 8 | 59 | 21 | |||||||||||||||||||
Income from discontinued operations, net of tax | — | — | 5 | — | |||||||||||||||||||
Net income (loss) attributable to NCR common stockholders | $ | 65 | $ | 8 | $ | 64 | $ | 21 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average number of shares outstanding | 137.0 | 131.5 | 136.4 | 130.8 | |||||||||||||||||||
Dilutive effect of restricted stock units and stock options | 3.3 | 6.3 | 4.5 | 6.3 | |||||||||||||||||||
Weighted average diluted shares | 140.3 | 137.8 | 140.9 | 137.1 | |||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||
From continuing operations | $ | 0.46 | $ | 0.06 | $ | 0.42 | $ | 0.15 | |||||||||||||||
From discontinued operations | — | — | 0.03 | — | |||||||||||||||||||
Total diluted earnings per share | $ | 0.46 | $ | 0.06 | $ | 0.45 | $ | 0.15 |
In millions, except per share amounts | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Numerator | ||||||||||||||||
Income from continuing operations | $ | 118 | $ | 107 | $ | 272 | $ | 215 | ||||||||
Series A Convertible Preferred Stock dividends | — | — | (36 | ) | — | |||||||||||
Deemed dividend on modification of Series A Convertible Preferred Stock | — | — | (4 | ) | — | |||||||||||
Deemed dividend on Series A Convertible Preferred Stock redemption | — | — | (58 | ) | — | |||||||||||
Net income from continuing operations attributable to NCR common stockholders | 118 | 107 | 174 | 215 | ||||||||||||
(Loss) income from discontinued operations, net of tax | — | (2 | ) | 5 | (2 | ) | ||||||||||
Net income attributable to NCR common stockholders | $ | 118 | $ | 105 | $ | 179 | $ | 213 | ||||||||
Basic weighted average number of shares outstanding | 121.5 | 123.9 | 121.9 | 126.0 | ||||||||||||
Dilutive effect of as-if converted Series A Convertible Preferred Stock | 26.9 | 28.4 | — | 28.0 | ||||||||||||
Dilutive effect of restricted stock units | 4.7 | 3.1 | 5.0 | 2.8 | ||||||||||||
Denominator - from continuing operations and total | 153.1 | 155.4 | 126.9 | 156.8 | ||||||||||||
Diluted earnings per share: | ||||||||||||||||
From continuing operations | $ | 0.77 | $ | 0.69 | $ | 1.37 | $ | 1.37 | ||||||||
From discontinued operations | — | (0.01 | ) | 0.04 | (0.01 | ) | ||||||||||
Total diluted earnings per share | $ | 0.77 | $ | 0.68 | $ | 1.41 | $ | 1.36 |
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||||||||
In millions | Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other current assets | $ | 13 | Other current liabilities | $ | — | |||||||||||||||||||||||||||||
Interest rate swap contracts | Other assets | 11 | Other liabilities | — | |||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 2,375 | $ | 24 | $ | — | $ | — | |||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 2 | Other current liabilities | $ | 3 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 280 | $ | 2 | $ | 391 | $ | 3 | |||||||||||||||||||||||||||
Total derivatives | $ | 26 | $ | 3 | |||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
In millions | Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Interest rate cap contracts | Other Assets | $ | 2,000 | $ | 18 | Other liabilities | $ | — | $ | — | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 18 | $ | — | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 278 | $ | 1 | Other current liabilities | $ | 396 | $ | 1 | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 1 | $ | 1 | |||||||||||||||||||||||||||||||
Total derivatives | $ | 19 | $ | 1 |
Fair Values of Derivative Instruments | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
In millions | Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 213 | $ | 1 | Other current liabilities | $ | 134 | $ | 2 | |||||||||
Total derivatives designated as hedging instruments | $ | 1 | $ | 2 | |||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 132 | $ | 1 | Other current liabilities | $ | 167 | $ | 1 | |||||||||
Total derivatives not designated as hedging instruments | 1 | 1 | |||||||||||||||||
Total derivatives | $ | 2 | $ | 3 | |||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
December 31, 2016 | |||||||||||||||||||
In millions | Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 251 | $ | 18 | Other current liabilities | $ | 56 | $ | 1 | |||||||||
Total derivatives designated as hedging instruments | $ | 18 | $ | 1 | |||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 165 | $ | 1 | Other current liabilities | $ | 218 | $ | 1 | |||||||||
Total derivatives not designated as hedging instruments | 1 | 1 | |||||||||||||||||
Total derivatives | $ | 19 | $ | 2 |
In millions | Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative Contracts | Amount of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations | |||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | For the three months ended September 30, 2022 | For the three months ended September 30, 2021 | Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations | For the three months ended September 30, 2022 | For the three months ended September 30, 2021 | ||||||||||||||||||||||||
Interest rate contracts | $ | 77 | $ | — | Cost of services | $ | (4) | $ | — | ||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | Interest expense | $ | (5) | $ | — | ||||||||||||||||||||
In millions | Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative | Amount of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations | |||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | For the nine months ended September 30, 2022 | For the nine months ended September 30, 2021 | Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations | For the nine months ended September 30, 2022 | For the nine months ended September 30, 2021 | ||||||||||||||||||||||||
Interest rate contracts | $ | 119 | $ | — | Cost of services | $ | 2 | $ | — | ||||||||||||||||||||
Interest rate contracts | $ | 36 | $ | — | Interest expense | $ | (5) | $ | — | ||||||||||||||||||||
In millions | Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative (Effective Portion) | Amount of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations (Effective Portion) | Amount of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | For the three months ended September 30, 2017 | For the three months ended September 30, 2016 | Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations (Effective Portion) | For the three months ended September 30, 2017 | For the three months ended September 30, 2016 | Location of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing) | For the three months ended September 30, 2017 | For the three months ended September 30, 2016 | |||||||||||||||||||
Foreign exchange contracts | $ | (5 | ) | $ | 4 | Cost of products | $ | 1 | $ | — | Other (expense), net | $ | — | $ | — | ||||||||||||
In millions | Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative (Effective Portion) | Amount of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations (Effective Portion) | Amount of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | For the nine months ended September 30, 2017 | For the nine months ended September 30, 2016 | Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations (Effective Portion) | For the nine months ended September 30, 2017 | For the nine months ended September 30, 2016 | Location of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing) | For the nine months ended September 30, 2017 | For the nine months ended September 30, 2016 | |||||||||||||||||||
Interest rate swap (1) | $ | — | $ | (1 | ) | Interest expense | $ | — | $ | 2 | Interest expense | $ | — | $ | — | ||||||||||||
Foreign exchange contracts | $ | (15 | ) | $ | 5 | Cost of products | $ | (2 | ) | $ | — | Other (expense), net | $ | — | $ | — |
In millions | Amount of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations | ||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
Derivatives not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | $ | (2) | $ | (6) | $ | (20) | $ | (20) | ||||||||||||||||||||
In millions | Amount of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations | ||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
Derivatives not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Foreign exchange contracts | Other (expense), net | $ | (1 | ) | $ | 1 | $ | (3 | ) | $ | — |
September 30, 2022 | |||||||||||||||||||||||
In millions | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Deposits held in money market mutual funds (1) | $ | 17 | $ | 17 | $ | — | $ | — | |||||||||||||||
Foreign exchange contracts (2) | 2 | — | 2 | — | |||||||||||||||||||
Interest rate swap agreements (3) | 24 | — | 24 | — | |||||||||||||||||||
Total | $ | 43 | $ | 17 | $ | 26 | $ | — | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange contracts (4) | 3 | — | 3 | — | |||||||||||||||||||
Total | $ | 3 | $ | — | $ | 3 | $ | — |
September 30, 2017 | |||||||||||||||
In millions | September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Deposits held in money market mutual funds (1) | $ | 4 | $ | 4 | $ | — | $ | — | |||||||
Foreign exchange contracts (2) | 2 | — | 2 | — | |||||||||||
Total | $ | 6 | $ | 4 | $ | 2 | $ | — | |||||||
Liabilities: | |||||||||||||||
Foreign exchange contracts (3) | $ | 3 | $ | — | $ | 3 | $ | — | |||||||
Total | $ | 3 | $ | — | $ | 3 | $ | — |
December 31, 2021 | |||||||||||||||||||||||
In millions | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Deposits held in money market mutual funds (1) | $ | 17 | $ | 17 | $ | — | $ | — | |||||||||||||||
Foreign exchange contracts (2) | 1 | — | 1 | — | |||||||||||||||||||
Interest rate cap agreements (3) | 18 | — | 18 | — | |||||||||||||||||||
Total | $ | 36 | $ | 17 | $ | 19 | $ | — | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange contracts (4) | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||||||||
Total | $ | 1 | $ | — | $ | 1 | $ | — |
December 31, 2016 | |||||||||||||||
In millions | December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Deposits held in money market mutual funds (1) | $ | 5 | $ | 5 | $ | — | $ | — | |||||||
Foreign exchange contracts (2) | 19 | — | 19 | — | |||||||||||
Total | $ | 24 | $ | 5 | $ | 19 | $ | — | |||||||
Liabilities: | |||||||||||||||
Foreign exchange contracts (3) | 2 | — | 2 | — | |||||||||||
Total | $ | 2 | $ | — | $ | 2 | $ | — |
In millions | Currency Translation Adjustments | Changes in Employee Benefit Plans | Changes in Fair Value of Effective Cash Flow Hedges | Total | ||||||||||
Balance as of December 31, 2021 | $ | (275) | $ | (24) | $ | 8 | $ | (291) | ||||||
Other comprehensive income (loss) before reclassifications | (151) | — | 120 | (31) | ||||||||||
Amounts reclassified from AOCI | — | (1) | (3) | (4) | ||||||||||
Net current period other comprehensive (loss) income | (151) | (1) | 117 | (35) | ||||||||||
Balance as of September 30, 2022 | $ | (426) | $ | (25) | $ | 125 | $ | (326) |
For the three months ended September 30, 2022 | ||||||||||||||||||||
Employee Benefit Plans | ||||||||||||||||||||
In millions | Amortization of Actuarial Loss (Gain) | Amortization of Prior Service Benefit | Effective Cash Flow Hedge Loss (Gain) | Total | ||||||||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Cost of products | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Cost of services | — | — | (4) | (4) | ||||||||||||||||
Selling, general and administrative expenses | — | — | — | — | ||||||||||||||||
Research and development expenses | — | — | — | — | ||||||||||||||||
Interest expense | — | — | (5) | (5) | ||||||||||||||||
Total before tax | $ | — | $ | — | $ | (9) | $ | (9) | ||||||||||||
Tax expense | 1 | |||||||||||||||||||
Total reclassifications, net of tax | $ | (8) |
For the three months ended September 30, 2021 | ||||||||||||||||||||
Employee Benefit Plans | ||||||||||||||||||||
In millions | Amortization of Actuarial Loss (Gain) | Amortization of Prior Service Benefit | Effective Cash Flow Hedge Loss (Gain) | Total | ||||||||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Cost of products | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Cost of services | — | — | — | — | ||||||||||||||||
Selling, general and administrative expenses | — | (1) | — | (1) | ||||||||||||||||
Research and development expenses | — | 1 | — | 1 | ||||||||||||||||
Total before tax | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Tax expense | — | |||||||||||||||||||
Total reclassifications, net of tax | $ | — |
For the nine months ended September 30, 2022 | ||||||||||||||||||||
Employee Benefit Plans | ||||||||||||||||||||
In millions | Amortization of Actuarial Loss (Gain) | Amortization of Prior Service Benefit | Effective Cash Flow Hedge Loss (Gain) | Total | ||||||||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Cost of products | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Cost of services | — | (1) | 2 | 1 | ||||||||||||||||
Selling, general and administrative expenses | — | — | — | — | ||||||||||||||||
Research and development expenses | — | — | — | — | ||||||||||||||||
Interest expense | — | — | (5) | (5) | ||||||||||||||||
Total before tax | $ | — | $ | (1) | $ | (3) | $ | (4) | ||||||||||||
Tax expense | — | |||||||||||||||||||
Total reclassifications, net of tax | $ | (4) |
For the nine months ended September 30, 2021 | ||||||||||||||||||||
Employee Benefit Plans | ||||||||||||||||||||
In millions | Amortization of Actuarial Loss (Gain) | Amortization of Prior Service Benefit | Effective Cash Flow Hedge Loss (Gain) | Total | ||||||||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Cost of products | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Cost of services | — | (1) | — | (1) | ||||||||||||||||
Selling, general and administrative expenses | — | (1) | — | (1) | ||||||||||||||||
Research and development expenses | — | 1 | — | 1 | ||||||||||||||||
Total before tax | $ | — | $ | (1) | $ | — | $ | (1) | ||||||||||||
Tax expense | — | |||||||||||||||||||
Total reclassifications, net of tax | $ | (1) |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue by segment | |||||||||||||||
Software | $ | 476 | $ | 468 | $ | 1,392 | $ | 1,339 | |||||||
Services | 609 | 591 | 1,754 | 1,708 | |||||||||||
Hardware (1) | 578 | 618 | 1,588 | 1,694 | |||||||||||
Consolidated revenue | 1,663 | 1,677 | 4,734 | 4,741 | |||||||||||
Operating income by segment | |||||||||||||||
Software | 148 | 146 | 401 | 405 | |||||||||||
Services | 89 | 56 | 209 | 139 | |||||||||||
Hardware | (2 | ) | 28 | — | 32 | ||||||||||
Subtotal - segment operating income | 235 | 230 | 610 | 576 | |||||||||||
Other adjustments (2) | 35 | 41 | 115 | 123 | |||||||||||
Income from operations | $ | 200 | $ | 189 | $ | 495 | $ | 453 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Transformation / restructuring costs | $ | 5 | $ | 8 | $ | 26 | $ | 23 | |||||||
Acquisition-related amortization of intangible assets | 29 | 31 | 86 | 95 | |||||||||||
Acquisition-related costs | 1 | 2 | 3 | 5 | |||||||||||
Total other adjustments | $ | 35 | $ | 41 | $ | 115 | $ | 123 |
In millions | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Product revenue | $ | 657 | $ | 708 | $ | 1,829 | $ | 1,932 | |||||||
Professional services and installation services revenue | 278 | 266 | 766 | 729 | |||||||||||
Recurring revenue, including maintenance and cloud revenue | 728 | 703 | 2,139 | 2,080 | |||||||||||
Total revenue | $ | 1,663 | $ | 1,677 | $ | 4,734 | $ | 4,741 |
In millions | Currency Translation Adjustments | Changes in Employee Benefit Plans | Changes in Fair Value of Effective Cash Flow Hedges | Total | ||||||||
Balance as of December 31, 2016 | $ | (224 | ) | $ | 6 | $ | 13 | $ | (205 | ) | ||
Other comprehensive income (loss) before reclassifications | 37 | — | (12 | ) | 25 | |||||||
Amounts reclassified from AOCI | — | (6 | ) | (2 | ) | (8 | ) | |||||
Net current period other comprehensive income (loss) | 37 | (6 | ) | (14 | ) | 17 | ||||||
Balance as of September 30, 2017 | $ | (187 | ) | $ | — | $ | (1 | ) | $ | (188 | ) |
For the three months ended September 30, 2017 | ||||||||||||||
Employee Benefit Plans | ||||||||||||||
In millions | Amortization of Actuarial Gain | Amortization of Prior Service (Benefit) Loss | Effective Cash Flow Hedge Loss | Total | ||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||
Cost of products | $ | — | $ | — | $ | 1 | $ | 1 | ||||||
Cost of services | — | (2 | ) | — | (2 | ) | ||||||||
Research and development expenses | (1 | ) | 1 | — | — | |||||||||
Total before tax | $ | (1 | ) | $ | (1 | ) | $ | 1 | $ | (1 | ) | |||
Tax expense | — | |||||||||||||
Total reclassifications, net of tax | $ | (1 | ) |
For the three months ended September 30, 2016 | ||||||||||||||
Employee Benefit Plans | ||||||||||||||
In millions | Amortization of Actuarial (Gain) Loss | Amortization of Prior Service Benefit | Effective Cash Flow Hedge Gain | Total | ||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||
Cost of services | $ | (1 | ) | $ | (3 | ) | $ | — | $ | (4 | ) | |||
Selling, general and administrative expenses | 1 | (1 | ) | — | — | |||||||||
Total before tax | $ | — | $ | (4 | ) | $ | — | $ | (4 | ) | ||||
Tax expense | 2 | |||||||||||||
Total reclassifications, net of tax | $ | (2 | ) |
For the nine months ended September 30, 2017 | ||||||||||||||
Employee Benefit Plans | ||||||||||||||
In millions | Amortization of Actuarial Gain | Amortization of Prior Service Benefit | Effective Cash Flow Hedge Gain | Total | ||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||
Cost of products | $ | — | $ | — | $ | (2 | ) | $ | (2 | ) | ||||
Cost of services | — | (4 | ) | — | (4 | ) | ||||||||
Selling, general and administrative expenses | (1 | ) | (2 | ) | — | (3 | ) | |||||||
Research and development expenses | (1 | ) | — | — | (1 | ) | ||||||||
Total before tax | $ | (2 | ) | $ | (6 | ) | $ | (2 | ) | $ | (10 | ) | ||
Tax expense | 2 | |||||||||||||
Total reclassifications, net of tax | $ | (8 | ) |
For the nine months ended September 30, 2016 | ||||||||||||||
Employee Benefit Plans | ||||||||||||||
In millions | Amortization of Actuarial Gain | Amortization of Prior Service Benefit | Effective Cash Flow Hedge Loss | Total | ||||||||||
Affected line in Condensed Consolidated Statement of Operations: | ||||||||||||||
Cost of services | $ | (1 | ) | $ | (8 | ) | $ | — | $ | (9 | ) | |||
Selling, general and administrative expenses | — | (4 | ) | — | (4 | ) | ||||||||
Research and development expenses | — | (2 | ) | — | (2 | ) | ||||||||
Interest expense | — | — | 2 | 2 | ||||||||||
Total before tax | $ | (1 | ) | $ | (14 | ) | $ | 2 | $ | (13 | ) | |||
Tax expense | 4 | |||||||||||||
Total reclassifications, net of tax | $ | (9 | ) |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
In millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Severance and other employee-related costs | |||||||||||||||
ASC 712 charges included in restructuring-related charges | $ | — | $ | 2 | $ | — | $ | 4 | |||||||
ASC 420 charges included in restructuring-related charges | — | 1 | — | (1 | ) | ||||||||||
Inventory-related charges | |||||||||||||||
Charges included in cost of services | — | — | — | 4 | |||||||||||
Asset-related charges | |||||||||||||||
External and internal use software impairment charges included in restructuring-related charges | — | — | — | 2 | |||||||||||
Other exit costs | |||||||||||||||
Other exit costs included in restructuring-related charges | — | 4 | — | 8 | |||||||||||
Total restructuring charges | $ | — | $ | 7 | $ | — | $ | 17 |
In millions | 2017 | 2016 | |||||
Employee Severance and Other Exit Costs | |||||||
Beginning balance as of January 1 | $ | 1 | $ | 20 | |||
Cost recognized during the period | — | 13 | |||||
Change in estimated payments | — | (2 | ) | ||||
Utilization | (1 | ) | (28 | ) | |||
Ending balance as of September 30 | $ | — | $ | 3 |
In millions | September 30, 2022 | December 31, 2021 | |||||||||
Accounts receivable | |||||||||||
Trade | $ | 1,087 | $ | 939 | |||||||
Other | 58 | 44 | |||||||||
Accounts receivable, gross | 1,145 | 983 | |||||||||
Less: allowance for credit losses | (29) | (24) | |||||||||
Total accounts receivable, net | $ | 1,116 | $ | 959 |
In millions | September 30, 2017 | December 31, 2016 | |||||
Accounts receivable | |||||||
Trade | $ | 1,409 | $ | 1,266 | |||
Other | 39 | 57 | |||||
Accounts receivable, gross | 1,448 | 1,323 | |||||
Less: allowance for doubtful accounts | (40 | ) | (41 | ) | |||
Total accounts receivable, net | $ | 1,408 | $ | 1,282 |
In millions | September 30, 2022 | December 31, 2021 | |||||||||
Inventories | |||||||||||
Work in process and raw materials | $ | 113 | $ | 184 | |||||||
Finished goods | 299 | 185 | |||||||||
Service parts | 415 | 385 | |||||||||
Total inventories | $ | 827 | $ | 754 |
In millions | September 30, 2017 | December 31, 2016 | |||||
Inventories | |||||||
Work in process and raw materials | $ | 197 | $ | 154 | |||
Finished goods | 220 | 149 | |||||
Service parts | 407 | 396 | |||||
Total inventories | $ | 824 | $ | 699 |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||
For the three months ended September 30, 2017 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Product revenue | $ | 338 | $ | 13 | $ | 357 | $ | (51 | ) | $ | 657 | ||||||||
Service revenue | 427 | 6 | 573 | — | 1,006 | ||||||||||||||
Total revenue | 765 | 19 | 930 | (51 | ) | 1,663 | |||||||||||||
Cost of products | 264 | 8 | 307 | (51 | ) | 528 | |||||||||||||
Cost of services | 295 | 1 | 366 | — | 662 | ||||||||||||||
Selling, general and administrative expenses | 97 | 1 | 122 | — | 220 | ||||||||||||||
Research and development expenses | 40 | — | 13 | — | 53 | ||||||||||||||
Total operating expenses | 696 | 10 | 808 | (51 | ) | 1,463 | |||||||||||||
Income (loss) from operations | 69 | 9 | 122 | — | 200 | ||||||||||||||
Interest expense | (40 | ) | — | (19 | ) | 17 | (42 | ) | |||||||||||
Other (expense) income, net | 1 | 1 | 7 | (17 | ) | (8 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 30 | 10 | 110 | — | 150 | ||||||||||||||
Income tax expense (benefit) | 11 | 1 | 19 | — | 31 | ||||||||||||||
Income (loss) from continuing operations before earnings in subsidiaries | 19 | 9 | 91 | — | 119 | ||||||||||||||
Equity in earnings of consolidated subsidiaries | 99 | 73 | — | (172 | ) | — | |||||||||||||
Income (loss) from continuing operations | 118 | 82 | 91 | (172 | ) | 119 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | — | ||||||||||||||
Net income (loss) | $ | 118 | $ | 82 | $ | 91 | $ | (172 | ) | $ | 119 | ||||||||
Net income (loss) attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||
Net income (loss) attributable to NCR | $ | 118 | $ | 82 | $ | 90 | $ | (172 | ) | $ | 118 | ||||||||
Total comprehensive income (loss) | 121 | 91 | 95 | (188 | ) | 119 | |||||||||||||
Less comprehensive income (loss) attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Comprehensive income (loss) attributable to NCR common stockholders | $ | 121 | $ | 91 | $ | 96 | $ | (188 | ) | $ | 120 |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||
For the three months ended September 30, 2016 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Product revenue | $ | 358 | $ | 15 | $ | 435 | $ | (100 | ) | $ | 708 | ||||||||
Service revenue | 415 | 9 | 545 | — | 969 | ||||||||||||||
Total revenue | 773 | 24 | 980 | (100 | ) | 1,677 | |||||||||||||
Cost of products | 282 | 14 | 332 | (100 | ) | 528 | |||||||||||||
Cost of services | 323 | 3 | 346 | — | 672 | ||||||||||||||
Selling, general and administrative expenses | 117 | 1 | 107 | — | 225 | ||||||||||||||
Research and development expenses | 26 | — | 30 | — | 56 | ||||||||||||||
Restructuring-related charges | 4 | — | 3 | — | 7 | ||||||||||||||
Total operating expenses | 752 | 18 | 818 | (100 | ) | 1,488 | |||||||||||||
Income (loss) from operations | 21 | 6 | 162 | — | 189 | ||||||||||||||
Interest expense | (40 | ) | — | (18 | ) | 17 | (41 | ) | |||||||||||
Other (expense) income, net | 10 | (6 | ) | 5 | (17 | ) | (8 | ) | |||||||||||
Income (loss) from continuing operations before income taxes | (9 | ) | — | 149 | — | 140 | |||||||||||||
Income tax expense (benefit) | 2 | 7 | 22 | — | 31 | ||||||||||||||
Income (loss) from continuing operations before earnings in subsidiaries | (11 | ) | (7 | ) | 127 | — | 109 | ||||||||||||
Equity in earnings of consolidated subsidiaries | 118 | 114 | — | (232 | ) | — | |||||||||||||
Income (loss) from continuing operations | 107 | 107 | 127 | (232 | ) | 109 | |||||||||||||
Income (loss) from discontinued operations, net of tax | (2 | ) | — | — | — | (2 | ) | ||||||||||||
Net income (loss) | $ | 105 | $ | 107 | $ | 127 | $ | (232 | ) | $ | 107 | ||||||||
Net income (loss) attributable to noncontrolling interests | — | — | 2 | — | 2 | ||||||||||||||
Net income (loss) attributable to NCR | $ | 105 | $ | 107 | $ | 125 | $ | (232 | ) | $ | 105 | ||||||||
Total comprehensive income (loss) | 109 | 103 | 132 | (234 | ) | 110 | |||||||||||||
Less comprehensive income (loss) attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||
Comprehensive income (loss) attributable to NCR common stockholders | $ | 109 | $ | 103 | $ | 131 | $ | (234 | ) | $ | 109 |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||
For the nine months ended September 30, 2017 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Product revenue | $ | 948 | $ | 66 | $ | 1,030 | $ | (215 | ) | $ | 1,829 | ||||||||
Service revenue | 1,254 | 20 | 1,631 | — | 2,905 | ||||||||||||||
Total revenue | 2,202 | 86 | 2,661 | (215 | ) | 4,734 | |||||||||||||
Cost of products | 728 | 30 | 887 | (215 | ) | 1,430 | |||||||||||||
Cost of services | 871 | 6 | 1,078 | — | 1,955 | ||||||||||||||
Selling, general and administrative expenses | 331 | 3 | 342 | — | 676 | ||||||||||||||
Research and development expenses | 100 | — | 78 | — | 178 | ||||||||||||||
Total operating expenses | 2,030 | 39 | 2,385 | (215 | ) | 4,239 | |||||||||||||
Income (loss) from operations | 172 | 47 | 276 | — | 495 | ||||||||||||||
Interest expense | (118 | ) | — | (54 | ) | 50 | (122 | ) | |||||||||||
Other (expense) income, net | 10 | — | 18 | (50 | ) | (22 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 64 | 47 | 240 | — | 351 | ||||||||||||||
Income tax expense (benefit) | 20 | 19 | 39 | — | 78 | ||||||||||||||
Income (loss) from continuing operations before earnings in subsidiaries | 44 | 28 | 201 | — | 273 | ||||||||||||||
Equity in earnings of consolidated subsidiaries | 228 | 170 | — | (398 | ) | — | |||||||||||||
Income (loss) from continuing operations | 272 | 198 | 201 | (398 | ) | 273 | |||||||||||||
Income (loss) from discontinued operations, net of tax | 5 | — | — | — | 5 | ||||||||||||||
Net income (loss) | $ | 277 | $ | 198 | $ | 201 | $ | (398 | ) | $ | 278 | ||||||||
Net income (loss) attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||
Net income (loss) attributable to NCR | $ | 277 | $ | 198 | $ | 200 | $ | (398 | ) | $ | 277 | ||||||||
Total comprehensive income (loss) | 294 | 233 | 214 | (448 | ) | 293 | |||||||||||||
Less comprehensive income (loss) attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Comprehensive income (loss) attributable to NCR common stockholders | $ | 294 | $ | 233 | $ | 215 | $ | (448 | ) | $ | 294 |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||
For the nine months ended September 30, 2016 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Product revenue | $ | 910 | $ | 70 | $ | 1,222 | $ | (270 | ) | $ | 1,932 | ||||||||
Service revenue | 1,191 | 26 | 1,592 | — | 2,809 | ||||||||||||||
Total revenue | 2,101 | 96 | 2,814 | (270 | ) | 4,741 | |||||||||||||
Cost of products | 712 | 30 | 1,015 | (270 | ) | 1,487 | |||||||||||||
Cost of services | 893 | 9 | 1,049 | — | 1,951 | ||||||||||||||
Selling, general and administrative expenses | 367 | 3 | 308 | — | 678 | ||||||||||||||
Research and development expenses | 83 | — | 76 | — | 159 | ||||||||||||||
Restructuring-related charges | 10 | — | 3 | — | 13 | ||||||||||||||
Total operating expenses | 2,065 | 42 | 2,451 | (270 | ) | 4,288 | |||||||||||||
Income (loss) from operations | 36 | 54 | 363 | — | 453 | ||||||||||||||
Interest expense | (126 | ) | — | (56 | ) | 52 | (130 | ) | |||||||||||
Other (expense) income, net | 35 | (11 | ) | (5 | ) | (52 | ) | (33 | ) | ||||||||||
Income (loss) from continuing operations before income taxes | (55 | ) | 43 | 302 | — | 290 | |||||||||||||
Income tax expense (benefit) | (19 | ) | 32 | 62 | — | 75 | |||||||||||||
Income (loss) from continuing operations before earnings in subsidiaries | (36 | ) | 11 | 240 | — | 215 | |||||||||||||
Equity in earnings of consolidated subsidiaries | 251 | 247 | — | (498 | ) | — | |||||||||||||
Income (loss) from continuing operations | 215 | 258 | 240 | (498 | ) | 215 | |||||||||||||
Income (loss) from discontinued operations, net of tax | (2 | ) | — | — | — | (2 | ) | ||||||||||||
Net income (loss) | $ | 213 | $ | 258 | $ | 240 | $ | (498 | ) | $ | 213 | ||||||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||
Net income (loss) attributable to NCR | $ | 213 | $ | 258 | $ | 240 | $ | (498 | ) | $ | 213 | ||||||||
Total comprehensive income (loss) | 191 | 204 | 207 | (418 | ) | 184 | |||||||||||||
Less comprehensive income (loss) attributable to noncontrolling interests | — | — | (7 | ) | — | (7 | ) | ||||||||||||
Comprehensive income (loss) attributable to NCR common stockholders | $ | 191 | $ | 204 | $ | 214 | $ | (418 | ) | $ | 191 |
Condensed Consolidating Balance Sheet | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 35 | $ | 10 | $ | 360 | $ | — | $ | 405 | |||||||||
Accounts receivable, net | 56 | 14 | 1,338 | — | 1,408 | ||||||||||||||
Inventories | 303 | 8 | 513 | — | 824 | ||||||||||||||
Due from affiliates | 689 | 1,643 | 516 | (2,848 | ) | — | |||||||||||||
Other current assets | 115 | 41 | 173 | (66 | ) | 263 | |||||||||||||
Total current assets | 1,198 | 1,716 | 2,900 | (2,914 | ) | 2,900 | |||||||||||||
Property, plant and equipment, net | 173 | — | 148 | — | 321 | ||||||||||||||
Goodwill | 988 | — | 1,753 | — | 2,741 | ||||||||||||||
Intangibles, net | 155 | — | 436 | — | 591 | ||||||||||||||
Prepaid pension cost | — | — | 115 | — | 115 | ||||||||||||||
Deferred income taxes | 517 | 97 | 82 | (101 | ) | 595 | |||||||||||||
Investments in subsidiaries | 3,538 | 2,928 | — | (6,466 | ) | — | |||||||||||||
Due from affiliates | 1,020 | 1 | 39 | (1,060 | ) | — | |||||||||||||
Other assets | 437 | 56 | 94 | — | 587 | ||||||||||||||
Total assets | $ | 8,026 | $ | 4,798 | $ | 5,567 | $ | (10,541 | ) | $ | 7,850 | ||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Short-term borrowings | $ | 57 | $ | — | $ | 212 | $ | — | $ | 269 | |||||||||
Accounts payable | 292 | 1 | 427 | — | 720 | ||||||||||||||
Payroll and benefits liabilities | 102 | — | 100 | — | 202 | ||||||||||||||
Deferred service revenue and customer deposits | 212 | 5 | 248 | — | 465 | ||||||||||||||
Due to affiliates | 2,019 | 129 | 700 | (2,848 | ) | — | |||||||||||||
Other current liabilities | 180 | 5 | 271 | (66 | ) | 390 | |||||||||||||
Total current liabilities | 2,862 | 140 | 1,958 | (2,914 | ) | 2,046 | |||||||||||||
Long-term debt | 2,982 | — | 2 | — | 2,984 | ||||||||||||||
Pension and indemnity plan liabilities | 483 | — | 288 | — | 771 | ||||||||||||||
Postretirement and postemployment benefits liabilities | 24 | 3 | 100 | — | 127 | ||||||||||||||
Income tax accruals | 17 | 2 | 119 | — | 138 | ||||||||||||||
Due to affiliates | — | 39 | 1,021 | (1,060 | ) | — | |||||||||||||
Other liabilities | 89 | 5 | 204 | (101 | ) | 197 | |||||||||||||
Total liabilities | 6,457 | 189 | 3,692 | (4,075 | ) | 6,263 | |||||||||||||
Redeemable noncontrolling interest | — | — | 14 | — | 14 | ||||||||||||||
Series A convertible preferred stock | 799 | — | — | — | 799 | ||||||||||||||
Stockholders’ equity | |||||||||||||||||||
Total NCR stockholders’ equity | 770 | 4,609 | 1,857 | (6,466 | ) | 770 | |||||||||||||
Noncontrolling interests in subsidiaries | — | — | 4 | — | 4 | ||||||||||||||
Total stockholders’ equity | 770 | 4,609 | 1,861 | (6,466 | ) | 774 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 8,026 | $ | 4,798 | $ | 5,567 | $ | (10,541 | ) | $ | 7,850 |
Condensed Consolidating Balance Sheet | |||||||||||||||||||
December 31, 2016 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 65 | $ | 12 | 421 | $ | — | $ | 498 | ||||||||||
Accounts receivable, net | 64 | 25 | 1,193 | — | 1,282 | ||||||||||||||
Inventories | 272 | 13 | 414 | — | 699 | ||||||||||||||
Due from affiliates | 680 | 1,509 | 400 | (2,589 | ) | — | |||||||||||||
Other current assets | 140 | 37 | 162 | (61 | ) | 278 | |||||||||||||
Total current assets | 1,221 | 1,596 | 2,590 | (2,650 | ) | 2,757 | |||||||||||||
Property, plant and equipment, net | 129 | — | 158 | — | 287 | ||||||||||||||
Goodwill | 988 | — | 1,739 | — | 2,727 | ||||||||||||||
Intangibles, net | 176 | — | 496 | — | 672 | ||||||||||||||
Prepaid pension cost | — | — | 94 | — | 94 | ||||||||||||||
Deferred income taxes | 499 | 98 | 82 | (104 | ) | 575 | |||||||||||||
Investments in subsidiaries | 3,275 | 2,822 | — | (6,097 | ) | — | |||||||||||||
Due from affiliates | 1,053 | — | 35 | (1,088 | ) | — | |||||||||||||
Other assets | 405 | 56 | 100 | — | 561 | ||||||||||||||
Total assets | $ | 7,746 | $ | 4,572 | $ | 5,294 | $ | (9,939 | ) | $ | 7,673 | ||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Short-term borrowings | $ | 46 | $ | — | $ | 4 | $ | — | $ | 50 | |||||||||
Accounts payable | 310 | 2 | 469 | — | 781 | ||||||||||||||
Payroll and benefits liabilities | 129 | — | 105 | — | 234 | ||||||||||||||
Deferred service revenue and customer deposits | 193 | 5 | 270 | — | 468 | ||||||||||||||
Due to affiliates | 1,736 | 154 | 699 | (2,589 | ) | — | |||||||||||||
Other current liabilities | 224 | 6 | 263 | (61 | ) | 432 | |||||||||||||
Total current liabilities | 2,638 | 167 | 1,810 | (2,650 | ) | 1,965 | |||||||||||||
Long-term debt | 2,998 | — | 3 | — | 3,001 | ||||||||||||||
Pension and indemnity plan liabilities | 473 | — | 266 | — | 739 | ||||||||||||||
Postretirement and postemployment benefits liabilities | 24 | 3 | 100 | — | 127 | ||||||||||||||
Income tax accruals | 17 | 4 | 121 | — | 142 | ||||||||||||||
Due to affiliates | — | 35 | 1,053 | (1,088 | ) | — | |||||||||||||
Other liabilities | 54 | 5 | 183 | (104 | ) | 138 | |||||||||||||
Total liabilities | 6,204 | 214 | 3,536 | (3,842 | ) | 6,112 | |||||||||||||
Redeemable noncontrolling interest | — | — | 15 | — | 15 | ||||||||||||||
Series A convertible preferred stock | 847 | — | — | — | 847 | ||||||||||||||
Stockholders’ equity | |||||||||||||||||||
Total NCR stockholders’ equity | 695 | 4,358 | 1,739 | (6,097 | ) | 695 | |||||||||||||
Noncontrolling interests in subsidiaries | — | — | 4 | — | 4 | ||||||||||||||
Total stockholders’ equity | 695 | 4,358 | 1,743 | (6,097 | ) | 699 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 7,746 | $ | 4,572 | $ | 5,294 | $ | (9,939 | ) | $ | 7,673 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
For the nine months ended September 30, 2017 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net cash provided by (used in) operating activities | $ | 284 | $ | (58 | ) | $ | 52 | $ | (7 | ) | $ | 271 | |||||||
Investing activities | |||||||||||||||||||
Expenditures for property, plant and equipment | (54 | ) | — | (27 | ) | — | (81 | ) | |||||||||||
Additions to capitalized software | (86 | ) | — | (39 | ) | — | (125 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | — | 6 | — | 6 | ||||||||||||||
Proceeds from (payments of) intercompany notes | 216 | 55 | — | (271 | ) | — | |||||||||||||
Investments in equity affiliates | (2 | ) | — | — | 2 | — | |||||||||||||
Other investing activities, net | (1 | ) | — | 1 | — | — | |||||||||||||
Net cash provided by (used in) investing activities | 73 | 55 | (59 | ) | (269 | ) | (200 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Short term borrowings, net | — | — | 10 | — | 10 | ||||||||||||||
Payments on term credit facilities | (34 | ) | — | (3 | ) | — | (37 | ) | |||||||||||
Payments on revolving credit facilities | (1,070 | ) | — | (40 | ) | — | (1,110 | ) | |||||||||||
Borrowings on revolving credit facilities | 1,095 | — | 240 | — | 1,335 | ||||||||||||||
Repurchase of Company common stock | (350 | ) | — | — | — | (350 | ) | ||||||||||||
Proceeds from employee stock plans | 11 | — | — | — | 11 | ||||||||||||||
Other financing activities | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Equity contribution | — | — | 2 | (2 | ) | — | |||||||||||||
Dividend distribution to consolidated subsidiaries | — | — | (7 | ) | 7 | — | |||||||||||||
Borrowings (repayments) of intercompany notes | — | — | (271 | ) | 271 | — | |||||||||||||
Tax withholding payments on behalf of employees | (24 | ) | — | — | — | (24 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (373 | ) | — | (69 | ) | 276 | (166 | ) | |||||||||||
Cash flows from discontinued operations | |||||||||||||||||||
Net cash used in operating activities | (14 | ) | — | — | — | (14 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 1 | 15 | — | 16 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | (30 | ) | (2 | ) | (61 | ) | — | (93 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 65 | 12 | 421 | — | 498 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 35 | $ | 10 | $ | 360 | $ | — | $ | 405 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
For the nine months ended September 30, 2016 | |||||||||||||||||||
(in millions) | Parent Issuer | Guarantor Subsidiary | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Net cash provided by (used in) operating activities | $ | 362 | $ | (103 | ) | $ | 113 | $ | (3 | ) | $ | 369 | |||||||
Investing activities | |||||||||||||||||||
Expenditures for property, plant and equipment | (16 | ) | — | (29 | ) | — | (45 | ) | |||||||||||
Additions to capitalized software | (70 | ) | — | (45 | ) | — | (115 | ) | |||||||||||
Proceeds from (payments of) intercompany notes | 166 | 98 | — | (264 | ) | — | |||||||||||||
Investments in equity affiliates | (9 | ) | — | — | 9 | — | |||||||||||||
Proceeds from divestiture | 22 | — | 25 | — | 47 | ||||||||||||||
Other investing activities, net | (8 | ) | — | — | — | (8 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 85 | 98 | (49 | ) | (255 | ) | (121 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Short term borrowings, net | (4 | ) | — | 2 | — | (2 | ) | ||||||||||||
Payments on term credit facilities | (78 | ) | — | (6 | ) | — | (84 | ) | |||||||||||
Payments on revolving credit facilities | (656 | ) | — | (80 | ) | — | (736 | ) | |||||||||||
Borrowings on revolving credit facilities | 576 | — | 280 | — | 856 | ||||||||||||||
Repurchase of Company common stock | (250 | ) | — | — | — | (250 | ) | ||||||||||||
Debt issuance costs | (8 | ) | — | — | — | (8 | ) | ||||||||||||
Proceeds from employee stock plans | 10 | — | — | — | 10 | ||||||||||||||
Other financing activities | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Equity contribution | — | — | 9 | (9 | ) | — | |||||||||||||
Dividend distribution to consolidated subsidiaries | — | — | (3 | ) | 3 | — | |||||||||||||
Borrowings (repayments) of intercompany notes | — | — | (264 | ) | 264 | — | |||||||||||||
Tax withholding payments on behalf of employees | (7 | ) | — | — | — | (7 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (417 | ) | — | (64 | ) | 258 | (223 | ) | |||||||||||
Cash flows from discontinued operations | |||||||||||||||||||
Net cash used in operating activities | (30 | ) | — | — | — | (30 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (2 | ) | (3 | ) | — | (5 | ) | |||||||||||
Increase (decrease) in cash and cash equivalents | — | (7 | ) | (3 | ) | — | (10 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 15 | 20 | 293 | — | 328 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 15 | $ | 13 | $ | 290 | $ | — | $ | 318 |
Three months ended September 30 | Percentage of Revenue (1) | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Product revenue | $ | 590 | $ | 520 | 29.9 | % | 27.4 | % | 13 | % | ||||||||||||||||||||||
Service revenue | 1,382 | 1,381 | 70.1 | % | 72.6 | % | — | % | ||||||||||||||||||||||||
Total revenue | 1,972 | 1,901 | 100.0 | % | 100.0 | % | 4 | % | ||||||||||||||||||||||||
Product gross margin | 66 | 91 | 11.2 | % | 17.5 | % | (27) | % | ||||||||||||||||||||||||
Service gross margin | 425 | 429 | 30.8 | % | 31.1 | % | (1) | % | ||||||||||||||||||||||||
Total gross margin | 491 | 520 | 24.9 | % | 27.4 | % | (6) | % | ||||||||||||||||||||||||
Selling, general and administrative expenses | 264 | 294 | 13.4 | % | 15.5 | % | (10) | % | ||||||||||||||||||||||||
Research and development expenses | 40 | 69 | 2.0 | % | 3.6 | % | (42) | % | ||||||||||||||||||||||||
Income from operations | $ | 187 | $ | 157 | 9.5 | % | 8.3 | % | 19 | % |
Nine months ended September 30 | Percentage of Revenue (1) | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Product revenue | $ | 1,720 | $ | 1,553 | 29.5 | % | 30.3 | % | 11 | % | ||||||||||||||||||||||
Service revenue | 4,115 | 3,569 | 70.5 | % | 69.7 | % | 15 | % | ||||||||||||||||||||||||
Total revenue | 5,835 | 5,122 | 100.0 | % | 100.0 | % | 14 | % | ||||||||||||||||||||||||
Product gross margin | 160 | 263 | 9.3 | % | 16.9 | % | (39) | % | ||||||||||||||||||||||||
Service gross margin | 1,213 | 1,127 | 29.5 | % | 31.6 | % | 8 | % | ||||||||||||||||||||||||
Total gross margin | 1,373 | 1,390 | 23.5 | % | 27.1 | % | (1) | % | ||||||||||||||||||||||||
Selling, general and administrative expenses | 886 | 835 | 15.2 | % | 16.3 | % | 6 | % | ||||||||||||||||||||||||
Research and development expenses | 164 | 204 | 2.8 | % | 4.0 | % | (20) | % | ||||||||||||||||||||||||
Income from operations | $ | 323 | $ | 351 | 5.5 | % | 6.9 | % | (8) | % |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
In millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 1,663 | $ | 1,677 | $ | 4,734 | $ | 4,741 | |||||||
Gross margin | $ | 473 | $ | 477 | $ | 1,349 | $ | 1,303 | |||||||
Gross margin as a percentage of revenue | 28.4 | % | 28.4 | % | 28.5 | % | 27.5 | % | |||||||
Operating expenses | |||||||||||||||
Selling, general and administrative expenses | $ | 220 | $ | 225 | $ | 676 | $ | 678 | |||||||
Research and development expenses | 53 | 56 | 178 | 159 | |||||||||||
Restructuring-related charges | — | 7 | — | 13 | |||||||||||
Income from operations | $ | 200 | $ | 189 | $ | 495 | $ | 453 |
In millions | 2017 | % of Total | 2016 | % of Total | % Increase (Decrease) | % Increase (Decrease) Constant Currency (1) | ||||||
Americas | $ | 989 | 59% | $ | 986 | 58% | —% | —% | ||||
Europe, Middle East Africa (EMEA) | 448 | 27% | 464 | 28% | (3)% | (5)% | ||||||
Asia Pacific (APJ) | 226 | 14% | 227 | 14% | —% | —% | ||||||
Consolidated revenue | $ | 1,663 | 100% | $ | 1,677 | 100% | (1)% | (1)% |
In millions | 2017 | % of Total | 2016 | % of Total | % Increase (Decrease) | % Increase (Decrease) Adjusted Constant Currency (1) | ||||||
Americas | $ | 2,751 | 58% | $ | 2,724 | 58% | 1% | 4% | ||||
Europe, Middle East Africa (EMEA) | 1,324 | 28% | 1,368 | 28% | (3)% | 2% | ||||||
Asia Pacific (APJ) | 659 | 14% | 649 | 14% | 2% | 4% | ||||||
Consolidated revenue | $ | 4,734 | 100% | $ | 4,741 | 100% | —% | 3% |
Three months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Recurring revenue (1) | $ | 1,222 | $ | 1,181 | 62.0 | % | 62.1 | % | 3 | % | ||||||||||||||||||||||
All other products and services | 750 | 720 | 38.0 | % | 37.9 | % | 4 | % | ||||||||||||||||||||||||
Total Revenue | $ | 1,972 | $ | 1,901 | 100 | % | 100 | % | 4 | % |
Nine months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Recurring revenue (1) | $ | 3,618 | $ | 2,984 | 62.0 | % | 58.3 | % | 21 | % | ||||||||||||||||||||||
All other products and services | 2,217 | 2,138 | 38.0 | % | 41.7 | % | 4 | % | ||||||||||||||||||||||||
Total Revenue | $ | 5,835 | $ | 5,122 | 100.0 | % | 100.0 | % | 14 | % |
Three months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to NCR | $ | 69 | $ | 12 | 3.5 | % | 0.6 | % | 475 | % | ||||||||||||||||||||||
Adjusted EBITDA | $ | 380 | $ | 352 | 19.3 | % | 18.5 | % | 8 | % |
Nine months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to NCR | $ | 71 | $ | 33 | 1.2 | % | 0.6 | % | 115 | % | ||||||||||||||||||||||
Adjusted EBITDA | $ | 990 | $ | 891 | 17.0 | % | 17.4 | % | 11 | % |
In millions | 2017 | % of Total | 2016 | % of Total | % Increase (Decrease) | % Increase (Decrease) Constant Currency (1) | ||||||
Software | $ | 476 | 29% | $ | 468 | 28% | 2% | 2% | ||||
Services | 609 | 36% | 591 | 35% | 3% | 3% | ||||||
Hardware | 578 | 35% | 618 | 37% | (6)% | (7)% | ||||||
Consolidated revenue | $ | 1,663 | 100% | $ | 1,677 | 100% | (1)% | (1)% |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income (loss) from continuing operations attributable to NCR (GAAP) | $ | 69 | $ | 12 | $ | 71 | $ | 33 | |||||||||||||||
Transformation and restructuring costs | 17 | 5 | 93 | 20 | |||||||||||||||||||
Acquisition-related amortization of intangibles | 44 | 45 | 130 | 88 | |||||||||||||||||||
Acquisition-related costs | 1 | 9 | 9 | 92 | |||||||||||||||||||
Interest expense | 74 | 68 | 204 | 174 | |||||||||||||||||||
Interest income | (3) | — | (6) | (4) | |||||||||||||||||||
Depreciation and amortization (excluding acquisition-related amortization of intangibles) | 107 | 104 | 314 | 250 | |||||||||||||||||||
Income taxes | 43 | 29 | 56 | 77 | |||||||||||||||||||
Stock-based compensation expense | 28 | 38 | 97 | 119 | |||||||||||||||||||
Loss on debt extinguishment | — | 42 | — | 42 | |||||||||||||||||||
Russia | — | — | 22 | — | |||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 380 | $ | 352 | $ | 990 | $ | 891 |
Three months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 vs 2021 | |||||||||||||||||||||||||||
Product revenue | $ | 590 | $ | 520 | 29.9 | % | 27.4 | % | 13 | % | ||||||||||||||||||||||
Service revenue | 1,382 | 1,381 | 70.1 | % | 72.6 | % | — | % | ||||||||||||||||||||||||
Total revenue | $ | 1,972 | $ | 1,901 | 100.0 | % | 100.0 | % | 4 | % |
In millions | 2017 | % of Total | 2016 | % of Total | % Increase (Decrease) | % Increase (Decrease) Adjusted Constant Currency (1) | ||||||
Software | $ | 1,392 | 29% | $ | 1,339 | 28% | 4% | 4% | ||||
Services | 1,754 | 37% | 1,708 | 36% | 3% | 4% | ||||||
Hardware | 1,588 | 34% | 1,694 | 36% | (6)% | 1% | ||||||
Consolidated revenue | $ | 4,734 | 100% | $ | 4,741 | 100% | —% | 3% |
Nine months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 vs 2021 | |||||||||||||||||||||||||||
Product revenue | $ | 1,720 | $ | 1,553 | 29.5 | % | 30.3 | % | 11 | % | ||||||||||||||||||||||
Service revenue | 4,115 | 3,569 | 70.5 | % | 69.7 | % | 15 | % | ||||||||||||||||||||||||
Total revenue | $ | 5,835 | $ | 5,122 | 100.0 | % | 100.0 | % | 14 | % |
Revenue % Growth (GAAP) | Favorable (unfavorable) FX impact | Revenue % Growth Constant Currency (non-GAAP) | |
Americas | —% | —% | —% |
EMEA | (3)% | 2% | (5)% |
APJ | —% | —% | —% |
Consolidated revenue | (1)% | —% | (1)% |
Revenue % Growth (GAAP) | Favorable (unfavorable) FX impact | Divestiture impact | Revenue % Growth Adjusted Constant Currency (non-GAAP) | |
Americas | 1% | —% | (3)% | 4% |
EMEA | (3)% | (2)% | (3)% | 2% |
APJ | 2% | —% | (2)% | 4% |
Consolidated revenue | —% | —% | (3)% | 3% |
Revenue % Growth (GAAP) | Favorable (unfavorable) FX impact | Revenue % Growth Constant Currency (non-GAAP) | |
Software | 2% | —% | 2% |
Services | 3% | —% | 3% |
Hardware | (6)% | 1% | (7)% |
Consolidated revenue | (1)% | —% | (1)% |
Revenue % Growth (GAAP) | Favorable (unfavorable) FX impact | Divestiture impact | Revenue % Growth Adjusted Constant Currency (non-GAAP) | |
Software | 4% | —% | —% | 4% |
Services | 3% | (1)% | —% | 4% |
Hardware | (6)% | —% | (7)% | 1% |
Consolidated revenue | —% | —% | (3)% | 3% |
Three months ended September 30 | Percentage of Revenue (1) | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Product gross margin | $ | 66 | $ | 91 | 11.2 | % | 17.5 | % | (27) | % | ||||||||||||||||||||||
Service gross margin | 425 | 429 | 30.8 | % | 31.1 | % | (1) | % | ||||||||||||||||||||||||
Total gross margin | $ | 491 | $ | 520 | 24.9 | % | 27.4 | % | (6) | % |
Nine months ended September 30 | Percentage of Revenue (1) | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Product gross margin | $ | 160 | $ | 263 | 9.3 | % | 16.9 | % | (39) | % | ||||||||||||||||||||||
Service gross margin | 1,213 | 1,127 | 29.5 | % | 31.6 | % | 8 | % | ||||||||||||||||||||||||
Total gross margin | $ | 1,373 | $ | 1,390 | 23.5 | % | 27.1 | % | (1) | % |
Three months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 vs 2021 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 264 | $ | 294 | 13.4 | % | 15.5 | % | (10) | % |
Nine months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 vs 2021 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 886 | $ | 835 | 15.2 | % | 16.3 | % | 6 | % |
Three months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Research and development expenses | $ | 40 | $ | 69 | 2.0 | % | 3.6 | % | (42) | % |
Nine months ended September 30 | Percentage of Total Revenue | Increase (Decrease) | ||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||||||||||||
Research and development expenses | $ | 164 | $ | 204 | 2.8 | % | 4.0 | % | (20) | % |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Loss on extinguishment of debt | $ | — | $ | 42 | $ | — | $ | 42 |
Three months ended September 30 | Increase (Decrease) | |||||||||||||||||||
In millions | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||
Interest expense | $ | 74 | $ | 68 | 9 | % |
Nine months ended September 30 | Increase (Decrease) | |||||||||||||||||||
In millions | 2022 | 2021 | 2022 v 2021 | |||||||||||||||||
Interest expense | $ | 204 | $ | 174 | 17 | % |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Interest income | $ | 3 | $ | — | $ | 6 | $ | 4 | ||||||||||||||||||
Foreign currency fluctuations and foreign exchange contracts | (13) | (5) | (20) | (12) | ||||||||||||||||||||||
Bank-related fees | (3) | (4) | (8) | (25) | ||||||||||||||||||||||
Employee benefit plans | 10 | 3 | 31 | 9 | ||||||||||||||||||||||
Other, net | 2 | 1 | — | 1 | ||||||||||||||||||||||
Other income (expense), net | $ | (1) | $ | (5) | $ | 9 | $ | (23) |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Income tax expense (benefit) | $ | 43 | $ | 29 | $ | 56 | $ | 77 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
In millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 476 | $ | 468 | $ | 1,392 | $ | 1,339 | |||||||
Operating income | $ | 148 | $ | 146 | $ | 401 | $ | 405 | |||||||
Operating income as a percentage of revenue | 31.1 | % | 31.2 | % | 28.8 | % | 30.2 | % |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
In millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 609 | $ | 591 | $ | 1,754 | $ | 1,708 | |||||||
Operating income | $ | 89 | $ | 56 | $ | 209 | $ | 139 | |||||||
Operating income as a percentage of revenue | 14.6 | % | 9.5 | % | 11.9 | % | 8.1 | % |
Three months ended September 30 | Percentage of Revenue (1) | Increase (Decrease) | Increase (Decrease) Constant Currency | |||||||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | 2022 v 2021 | ||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 575 | $ | 541 | 29.2 | % | 28.5 | % | 6 | % | 12 | % | ||||||||||||||||||||||||||
Hospitality | 238 | 224 | 12.1 | % | 11.8 | % | 6 | % | 8 | % | ||||||||||||||||||||||||||||
Digital Banking | 137 | 128 | 6.9 | % | 6.7 | % | 7 | % | 7 | % | ||||||||||||||||||||||||||||
Payments & Network | 336 | 304 | 17.0 | % | 16.0 | % | 11 | % | 14 | % | ||||||||||||||||||||||||||||
Self-Service Banking | 640 | 637 | 32.5 | % | 33.5 | % | — | % | 6 | % | ||||||||||||||||||||||||||||
Other | 58 | 75 | 2.9 | % | 3.9 | % | (23) | % | (18) | % | ||||||||||||||||||||||||||||
Eliminations (2) | (12) | (8) | (0.6) | % | (0.4) | % | 50 | % | 50 | % | ||||||||||||||||||||||||||||
Total segment revenue | $ | 1,972 | $ | 1,901 | 100.0 | % | 100 | % | 4 | % | 8 | % | ||||||||||||||||||||||||||
Total revenue | $ | 1,972 | $ | 1,901 | 4 | % | 8 | % | ||||||||||||||||||||||||||||||
Adjusted EBITDA by Segment | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 128 | $ | 104 | 22.3 | % | 19.2 | % | 23 | % | ||||||||||||||||||||||||||||
Hospitality | 51 | 44 | 21.4 | % | 19.6 | % | 16 | % | ||||||||||||||||||||||||||||||
Digital Banking | 60 | 52 | 43.8 | % | 40.6 | % | 15 | % | ||||||||||||||||||||||||||||||
Payments & Network | 114 | 111 | 33.9 | % | 36.5 | % | 3 | % | ||||||||||||||||||||||||||||||
Self-Service Banking | 150 | 155 | 23.4 | % | 24.3 | % | (3) | % | ||||||||||||||||||||||||||||||
Corporate and Other | (112) | (109) | (193.1) | % | (145.3) | % | 3 | % | ||||||||||||||||||||||||||||||
Eliminations (2) | (11) | (5) | 91.7 | % | 62.5 | % | 120 | % | ||||||||||||||||||||||||||||||
Total Adjusted EBITDA | $ | 380 | $ | 352 | 19.3 | % | 18.5 | % | 8 | % |
Nine months ended September 30 | Percentage of Revenue (1) | Increase (Decrease) | Increase (Decrease) Constant Currency | |||||||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | 2022 | 2021 | 2022 v 2021 | 2022 v 2021 | ||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 1,683 | $ | 1,623 | 28.9 | % | 31.7 | % | 4 | % | 8 | % | ||||||||||||||||||||||||||
Hospitality | 687 | 618 | 11.8 | % | 12.1 | % | 11 | % | 12 | % | ||||||||||||||||||||||||||||
Digital Banking | 404 | 380 | 6.9 | % | 7.4 | % | 6 | % | 6 | % | ||||||||||||||||||||||||||||
Payments & Network | 967 | 380 | 16.6 | % | 7.4 | % | 154 | % | 162 | % | ||||||||||||||||||||||||||||
Self-Service Banking | 1,930 | 1,910 | 33.1 | % | 37.3 | % | 1 | % | 5 | % | ||||||||||||||||||||||||||||
Other | 187 | 229 | 3.2 | % | 4.5 | % | (18) | % | (15) | % | ||||||||||||||||||||||||||||
Eliminations (2) | (32) | (18) | (0.5) | % | (0.4) | % | 78 | % | 78 | % | ||||||||||||||||||||||||||||
Total segment revenue | $ | 5,826 | $ | 5,122 | 100 | % | 100.0 | % | 14 | % | 17 | % | ||||||||||||||||||||||||||
Other adjustment (3) | 9 | — | ||||||||||||||||||||||||||||||||||||
Total revenue | $ | 5,835 | $ | 5,122 | 14 | % | 18 | % | ||||||||||||||||||||||||||||||
Adjusted EBITDA by Segment | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 299 | $ | 323 | 17.8 | % | 19.9 | % | (7) | % | ||||||||||||||||||||||||||||
Hospitality | 138 | 119 | 20.1 | % | 19.3 | % | 16 | % | ||||||||||||||||||||||||||||||
Digital Banking | 172 | 161 | 42.6 | % | 42.4 | % | 7 | % | ||||||||||||||||||||||||||||||
Payments & Network | 309 | 133 | 32.0 | % | 35.0 | % | 132 | % | ||||||||||||||||||||||||||||||
Self-Service Banking | 404 | 432 | 20.9 | % | 22.6 | % | (6) | % | ||||||||||||||||||||||||||||||
Corporate and Other | (307) | (265) | (164.2) | % | (115.7) | % | 16 | % | ||||||||||||||||||||||||||||||
Eliminations (2) | (25) | (12) | 78.1 | % | 66.7 | % | 108 | % | ||||||||||||||||||||||||||||||
Total Adjusted EBITDA | $ | 990 | $ | 891 | 17.0 | % | 17.4 | % | 11 | % |
Three months ended September 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Revenue Growth % (GAAP) | Favorable (Unfavorable) FX Impact | Revenue Growth % Constant Currency (non-GAAP) | Revenue Growth % (GAAP) | Favorable (Unfavorable) FX Impact | Revenue Growth % Constant Currency (non-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||
Retail | 6 | % | (6) | % | 12 | % | 4 | % | (4) | % | 8 | % | ||||||||||||||||||||||||||||||||||||||
Hospitality | 6 | % | (2) | % | 8 | % | 11 | % | (1) | % | 12 | % | ||||||||||||||||||||||||||||||||||||||
Digital Banking | 7 | % | — | % | 7 | % | 6 | % | — | % | 6 | % | ||||||||||||||||||||||||||||||||||||||
Payments & Network | 11 | % | (3) | % | 14 | % | 154 | % | (8) | % | 162 | % | ||||||||||||||||||||||||||||||||||||||
Self-Service Banking | — | % | (6) | % | 6 | % | 1 | % | (4) | % | 5 | % | ||||||||||||||||||||||||||||||||||||||
Other | (23) | % | (5) | % | (18) | % | (18) | % | (3) | % | (15) | % | ||||||||||||||||||||||||||||||||||||||
Eliminations | 50 | % | — | % | 50 | % | 78 | % | — | % | 78 | % | ||||||||||||||||||||||||||||||||||||||
Total segment revenue | 4 | % | (4) | % | 8 | % | 14 | % | (3) | % | 17 | % | ||||||||||||||||||||||||||||||||||||||
Total revenue | 4 | % | (4) | % | 8 | % | 14 | % | (4) | % | 18 | % | ||||||||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
In millions | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 578 | $ | 618 | $ | 1,588 | $ | 1,694 | |||||||
Operating income | $ | (2 | ) | $ | 28 | $ | — | $ | 32 | ||||||
Operating income as a percentage of revenue | (0.3 | )% | 4.5 | % | — | % | 1.9 | % |
Nine months ended September 30 | |||||||||||
In millions | 2022 | 2021 | |||||||||
Net cash provided by operating activities | $ | 245 | $ | 807 | |||||||
Expenditures for property, plant and equipment | (72) | (68) | |||||||||
Additions to capitalized software | (217) | (174) | |||||||||
Restricted cash settlement activity | (6) | 1 | |||||||||
Transaction costs | — | 55 | |||||||||
Initial sale of trade accounts receivable | — | (274) | |||||||||
Pension contributions | 12 | 13 | |||||||||
Free cash flow (non-GAAP) | $ | (38) | $ | 360 |
Nine months ended September 30 | |||||||
In millions | 2017 | 2016 | |||||
Net cash provided by operating activities | $ | 271 | $ | 369 | |||
Less: Expenditures for property, plant and equipment | (81 | ) | (45 | ) | |||
Less: Additions to capitalized software | (125 | ) | (115 | ) | |||
Net cash used in discontinued operations | (14 | ) | (30 | ) | |||
Free cash flow (non-GAAP) | $ | 51 | $ | 179 |
First Amendment to the Receivables Purchase Agreement, dated as of August 22, 2022, by and among NCR Receivables LLC, NCR Canada Receivables, LP, NCR Corporation, NCR Canada Corp., MUFG Bank, Ltd., Victory Receivables Corporation, PNC Bank, National Association, and PNC Capital Markets LLC. | |||||
Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934. | |||||
Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934. | |||||
Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||
101 | |||||
104 | Cover Page Interactive Data File, formatted in Inline XBRL and contained in Exhibit 101. |
NCR CORPORATION | ||||||||||||||
Date: | October | By: | ||||||||||||
Timothy C. Oliver Senior Executive Vice President and Chief Financial Officer |