Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-00395 | |
Entity Registrant Name | NCR CORP | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 31-0387920 | |
Entity Address, Address Line One | 864 Spring Street NW | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30308 | |
City Area Code | 937 | |
Local Phone Number | 445-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | NCR | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 127.6 | |
Entity Central Index Key | 0000070866 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenue | $ 1,783,000,000 | $ 1,550,000,000 | $ 5,029,000,000 | $ 4,604,000,000 |
Selling, general and administrative expenses | 271,000,000 | 226,000,000 | 775,000,000 | 732,000,000 |
Research and development expenses | 64,000,000 | 59,000,000 | 185,000,000 | 190,000,000 |
Asset Impairment Charges | 0 | 0 | 0 | 183,000,000 |
Total operating expenses | 1,611,000,000 | 1,425,000,000 | 4,600,000,000 | 4,476,000,000 |
Income (loss) from operations | 172,000,000 | 125,000,000 | 429,000,000 | 128,000,000 |
Interest expense | (53,000,000) | (43,000,000) | (143,000,000) | (125,000,000) |
Other expense, net | (11,000,000) | (10,000,000) | (28,000,000) | (24,000,000) |
Income (loss) from continuing operations before income taxes | 108,000,000 | 72,000,000 | 258,000,000 | (21,000,000) |
Income tax expense (benefit) | 4,000,000 | (15,000,000) | 28,000,000 | (20,000,000) |
Income (loss) from continuing operations | 104,000,000 | 87,000,000 | 230,000,000 | (1,000,000) |
Loss from discontinued operations, net of tax | (15,000,000) | (1,000,000) | (15,000,000) | (38,000,000) |
Net income (loss) | 89,000,000 | 86,000,000 | 215,000,000 | (39,000,000) |
Net income (loss) attributable to noncontrolling interests | (1,000,000) | 2,000,000 | 0 | 2,000,000 |
Net income (loss) attributable to NCR | 90,000,000 | 84,000,000 | 215,000,000 | (41,000,000) |
Amounts attributable to NCR common stockholders: | ||||
Income (loss) from continuing operations | 105,000,000 | 85,000,000 | 230,000,000 | (3,000,000) |
Dividends on convertible preferred stock | (79,000,000) | (12,000,000) | (104,000,000) | (36,000,000) |
Income (loss) from continuing operations attributable to NCR common stockholders | 26,000,000 | 73,000,000 | 126,000,000 | (39,000,000) |
Loss from discontinued operations, net of tax | (15,000,000) | (1,000,000) | (15,000,000) | (38,000,000) |
Net income (loss) attributable to NCR common stockholders | $ 11,000,000 | $ 72,000,000 | $ 111,000,000 | $ (77,000,000) |
Income (loss) per common share from continuing operations | ||||
Basic (in dollars per share) | $ 0.21 | $ 0.62 | $ 1.05 | $ (0.33) |
Diluted (in dollars per share) | 0.21 | 0.57 | 1.03 | (0.33) |
Net income (loss) per common share | ||||
Basic (in dollars per share) | 0.09 | 0.61 | 0.92 | (0.65) |
Diluted (in dollars per share) | $ 0.09 | $ 0.56 | $ 0.90 | $ (0.65) |
Weighted average common shares outstanding | ||||
Basic (in shares) | 121.4 | 118 | 120.3 | 118.4 |
Diluted (in shares) | 123.4 | 149.3 | 122.7 | 118.4 |
Product | ||||
Total revenue | $ 712,000,000 | $ 534,000,000 | $ 1,915,000,000 | $ 1,585,000,000 |
Cost of revenue | 555,000,000 | 473,000,000 | 1,547,000,000 | 1,344,000,000 |
Services | ||||
Total revenue | 1,071,000,000 | 1,016,000,000 | 3,114,000,000 | 3,019,000,000 |
Cost of revenue | $ 721,000,000 | $ 667,000,000 | $ 2,093,000,000 | $ 2,027,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 89 | $ 86 | $ 215 | $ (39) |
Currency translation adjustments | ||||
Currency translation gains (losses) | (22) | (13) | (11) | (43) |
Derivatives | ||||
Unrealized gains on derivatives | 4 | 1 | 5 | 5 |
Gains on derivatives recognized during the period | (2) | (2) | (5) | (2) |
Less income tax provision | (1) | (1) | 0 | (1) |
Employee benefit plans | ||||
Amortization of prior service benefit | (1) | (2) | (5) | (7) |
Amortization of actuarial (losses) gains | 0 | 0 | (1) | 1 |
Less income tax benefit | 1 | 0 | 1 | 1 |
Other comprehensive income (loss) | (21) | (17) | (16) | (46) |
Total comprehensive income (loss) | 68 | 69 | 199 | (85) |
Less comprehensive income attributable to noncontrolling interests: | ||||
Net income (loss) | (1) | 2 | 0 | 2 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | (1) | 1 | (1) | (2) |
Amounts attributable to noncontrolling interests | (2) | 3 | (1) | 0 |
Comprehensive income (loss) attributable to NCR | $ 70 | $ 66 | $ 200 | $ (85) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 388 | $ 464 |
Accounts receivable, net | 1,487 | 1,356 |
Inventories | 865 | 806 |
Other current assets | 416 | 397 |
Total current assets | 3,156 | 3,023 |
Property, plant and equipment, net | 382 | 359 |
Goodwill | 2,754 | 2,692 |
Intangibles, net | 549 | 595 |
Operating lease assets | 397 | 0 |
Prepaid pension cost | 153 | 140 |
Deferred income taxes | 488 | 448 |
Other assets | 572 | 504 |
Total assets | 8,451 | 7,761 |
Current liabilities | ||
Short-term borrowings | 208 | 185 |
Accounts payable | 800 | 897 |
Payroll and benefits liabilities | 260 | 238 |
Contract liabilities | 513 | 461 |
Other current liabilities | 565 | 501 |
Total current liabilities | 2,346 | 2,282 |
Long-term debt | 3,422 | 2,980 |
Pension and indemnity plan liabilities | 763 | 759 |
Postretirement and postemployment benefits liabilities | 121 | 118 |
Income tax accruals | 95 | 91 |
Operating lease liabilities | 378 | 0 |
Other liabilities | 195 | 259 |
Total liabilities | 7,320 | 6,489 |
Commitments and Contingencies (Note 9) | ||
Redeemable noncontrolling interest | 11 | 14 |
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.9 and 0.9 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively; redemption amount and liquidation preference of $895 and $871 as of June 30, 2019 and December 31, 2018, respectively | 389 | 859 |
Stockholders’ equity | ||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 0 | 0 |
Common stock: par value $0.01 per share, 500.0 shares authorized, 120.3 and 118.7 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 1 | 1 |
Paid-in capital | 269 | 34 |
Retained earnings | 717 | 606 |
Accumulated other comprehensive loss | (261) | (246) |
Total NCR stockholders’ equity | 726 | 395 |
Noncontrolling interests in subsidiaries | 5 | 4 |
Total stockholders’ equity | 731 | 399 |
Total liabilities and stockholders’ equity | $ 8,451 | $ 7,761 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Balance Sheet Parenthetical [Abstract] | ||
Series A convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A convertible preferred stock, authorized (in shares) | 3,000,000 | 3,000,000 |
Series A preferred shares, redemption amount | $ 394 | $ 871 |
Series A preferred shares, liquidation preference | $ 394 | $ 871 |
Series A convertible preferred stock, issued (in shares) | 300,000 | 800,000 |
Series A convertible preferred stock, outstanding (in shares) | 300,000 | 800,000 |
Stockholders' Equity: | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred Stock shares issued (in shares) | 0 | 0 |
Preferred Stock shares outstanding (in shares) | 0 | 0 |
Common Stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock shares issued (in shares) | 127,400,000 | 118,700,000 |
Common Stock shares outstanding (in shares) | 127,400,000 | 118,700,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income (loss) | $ 215 | $ (39) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from discontinued operations | 15 | 38 |
Depreciation and amortization | 249 | 249 |
Stock-based compensation expense | 76 | 55 |
Deferred income taxes | (35) | (15) |
Goodwill and Long-Lived Intangible Asset Impairment | 0 | 193 |
Gain on sale of property, plant and equipment | (6) | (2) |
Changes in assets and liabilities: | ||
Receivables | (154) | (102) |
Inventories | (78) | (182) |
Current payables and accrued expenses | (68) | 31 |
Contract liabilities | 37 | (36) |
Employee benefit plans | (13) | (18) |
Other assets and liabilities | (12) | (9) |
Net cash provided by operating activities | 226 | 163 |
Investing activities | ||
Expenditures for property, plant and equipment | (53) | (104) |
Proceeds from sale of property, plant and equipment | 11 | 3 |
Additions to capitalized software | (167) | (130) |
Business acquisitions, net | (86) | 0 |
Other investing activities, net | 5 | (4) |
Net Cash Provided by (Used in) Investing Activities | (292) | (235) |
Net change in funds held for clients - investing | (2) | 0 |
Financing activities | ||
Short term borrowings, net | 4 | 7 |
Payments on term credit facilities | (759) | (51) |
Payments on revolving credit facilities | (2,079) | (1,433) |
Borrowings on revolving credit facilities | 2,459 | 1,608 |
Repayments of Unsecured Debt | (500) | 0 |
Proceeds from Issuance of Secured Debt | 350 | 0 |
Proceeds from Issuance of Unsecured Debt | 1,000 | 0 |
Payments of Debt Issuance Costs | (28) | 0 |
Repurchase of Series A Convertible Preferred Stock | (302) | 0 |
Repurchases of Company common stock | (96) | (210) |
Proceeds from employee stock plans | 12 | 16 |
Tax withholding payments on behalf of employees | (29) | (30) |
Increase (Decrease) in Client Funds Held | 2 | 0 |
Proceeds from (Payments for) Other Financing Activities | (1) | 0 |
Net Cash Provided by (Used in) Financing Activities | 33 | (93) |
Cash flows from discontinued operations | ||
Net cash used in operating activities | (27) | (23) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7) | (12) |
Decrease in cash, cash equivalents, and restricted cash | (67) | (200) |
Cash, cash equivalents and restricted cash at beginning of period | 476 | 543 |
Cash, cash equivalents and restricted cash at end of period | $ 409 | $ 343 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows | ||||
Cash and cash equivalents | $ 388 | $ 464 | $ 334 | |
Restricted cash included in other assets | 21 | 9 | ||
Total cash, cash equivalents and restricted cash | $ 409 | $ 476 | $ 343 | $ 543 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Total Stockholders Equity | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-Redeemable Noncontrolling Interests in Subsidiaries | Parent Company [Member] |
Balance at beginning of period at Dec. 31, 2017 | $ 722 | $ 1 | $ 60 | $ 857 | $ (199) | $ 3 | ||
Balance at beginning of period (in shares) at Dec. 31, 2017 | 122 | |||||||
Comprehensive income: | ||||||||
Net income | 20 | 20 | ||||||
Other comprehensive income | 14 | 14 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest | 34 | 20 | 14 | |||||
Effects of adoption of new accounting standards | 15 | 14 | 1 | |||||
Employee stock purchase and stock compensation plans | 8 | 8 | ||||||
Employee stock purchase and stock compensation plans (in shares) | 1 | |||||||
Repurchase of Company common stock | 165 | 68 | 97 | |||||
Repurchase of Company common stock (in shares) | (5) | |||||||
Series A convertible preferred stock dividends | (12) | (12) | ||||||
Balance at end of period at Mar. 31, 2018 | 602 | $ 1 | 0 | 782 | (184) | 3 | ||
Balance at end of period (in shares) at Mar. 31, 2018 | 118 | |||||||
Balance at beginning of period at Dec. 31, 2017 | 722 | $ 1 | 60 | 857 | (199) | 3 | ||
Balance at beginning of period (in shares) at Dec. 31, 2017 | 122 | |||||||
Comprehensive income: | ||||||||
Other comprehensive income | $ (46) | |||||||
Balance at end of period at Sep. 30, 2018 | 448 | $ 1 | 19 | 666 | (242) | 4 | ||
Balance at end of period (in shares) at Sep. 30, 2018 | 118 | |||||||
Balance at beginning of period at Mar. 31, 2018 | 602 | $ 1 | 0 | 782 | (184) | 3 | ||
Balance at beginning of period (in shares) at Mar. 31, 2018 | 118 | |||||||
Comprehensive income: | ||||||||
Net income | (145) | (145) | ||||||
Other comprehensive income | (40) | (40) | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest | (185) | (145) | (40) | |||||
Employee stock purchase and stock compensation plans | 14 | 14 | ||||||
Employee stock purchase and stock compensation plans (in shares) | 1 | |||||||
Repurchase of Company common stock | 45 | 14 | 31 | |||||
Repurchase of Company common stock (in shares) | (1) | |||||||
Series A convertible preferred stock dividends | (12) | (12) | ||||||
Balance at end of period at Jun. 30, 2018 | 374 | $ 1 | 0 | 594 | (224) | 3 | ||
Balance at end of period (in shares) at Jun. 30, 2018 | 118 | |||||||
Comprehensive income: | ||||||||
Net income | 84 | 84 | ||||||
Other comprehensive income | (17) | (17) | (18) | 1 | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest | 67 | 84 | (18) | 1 | ||||
Employee stock purchase and stock compensation plans | 19 | 19 | ||||||
Series A convertible preferred stock dividends | (12) | (12) | ||||||
Balance at end of period at Sep. 30, 2018 | 448 | $ 1 | 19 | 666 | (242) | 4 | ||
Balance at end of period (in shares) at Sep. 30, 2018 | 118 | |||||||
Balance at beginning of period at Dec. 31, 2018 | $ 399 | 399 | $ 1 | 34 | 606 | (246) | 4 | $ 395 |
Balance at beginning of period (in shares) at Dec. 31, 2018 | 118.7 | 119 | ||||||
Comprehensive income: | ||||||||
Net income | 38 | 37 | 1 | |||||
Other comprehensive income | 16 | 16 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest | 54 | 37 | 16 | 1 | ||||
Employee stock purchase and stock compensation plans | 14 | 14 | ||||||
Employee stock purchase and stock compensation plans (in shares) | 1 | |||||||
Series A convertible preferred stock dividends | (13) | (13) | ||||||
Balance at end of period at Mar. 31, 2019 | 454 | $ 1 | 48 | 630 | (230) | 5 | ||
Balance at end of period (in shares) at Mar. 31, 2019 | 120 | |||||||
Balance at beginning of period at Dec. 31, 2018 | $ 399 | 399 | $ 1 | 34 | 606 | (246) | 4 | 395 |
Balance at beginning of period (in shares) at Dec. 31, 2018 | 118.7 | 119 | ||||||
Comprehensive income: | ||||||||
Other comprehensive income | $ (16) | |||||||
Dividends paid to minority shareholder | (1) | |||||||
Balance at end of period at Sep. 30, 2019 | $ 731 | 731 | $ 1 | 269 | 717 | (261) | 5 | 726 |
Balance at end of period (in shares) at Sep. 30, 2019 | 127.4 | 127 | ||||||
Balance at beginning of period at Mar. 31, 2019 | 454 | $ 1 | 48 | 630 | (230) | 5 | ||
Balance at beginning of period (in shares) at Mar. 31, 2019 | 120 | |||||||
Comprehensive income: | ||||||||
Net income | 88 | 88 | ||||||
Other comprehensive income | (11) | (11) | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest | 77 | 88 | (11) | |||||
Employee stock purchase and stock compensation plans | 28 | 28 | ||||||
Series A convertible preferred stock dividends | (12) | (12) | ||||||
Balance at end of period at Jun. 30, 2019 | 547 | $ 1 | 76 | 706 | (241) | 5 | ||
Balance at end of period (in shares) at Jun. 30, 2019 | 120 | |||||||
Comprehensive income: | ||||||||
Net income | 91 | 90 | 1 | |||||
Other comprehensive income | $ (21) | (20) | (20) | |||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest | 71 | 90 | (20) | 1 | ||||
Employee stock purchase and stock compensation plans | 17 | 17 | ||||||
Employee stock purchase and stock compensation plans (in shares) | 1 | |||||||
Redemption of Preferred Shares | (205) | (272) | (67) | |||||
Repurchase of Company common stock | (96) | (96) | ||||||
Repurchase of Company common stock (in shares) | (3) | |||||||
Series A convertible preferred stock dividends | (12) | (12) | ||||||
Series A convertible preferred stock converted into common stock | 9 | |||||||
Dividends paid to minority shareholder | (1) | |||||||
Balance at end of period at Sep. 30, 2019 | $ 731 | $ 731 | $ 1 | $ 269 | $ 717 | $ (261) | $ 5 | $ 726 |
Balance at end of period (in shares) at Sep. 30, 2019 | 127.4 | 127 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Condensed Consolidated Financial Statements have been prepared by NCR Corporation (NCR, the Company, we or us) without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments, unless otherwise disclosed) necessary for a fair statement of the consolidated results of operations, financial position, and cash flows for each period presented. The consolidated results for the interim periods are not necessarily indicative of results to be expected for the full year. The 2018 year-end Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (GAAP). These financial statements should be read in conjunction with NCR’s Form 10-K for the year ended December 31, 2018 . Effective January 1, 2019, NCR changed the management of its business to an industry basis from the previous model of management on a solution basis, which resulted in a corresponding change to NCR's reportable segments. We have reclassified prior period segment disclosures to conform to the current period presentation. See Note 4, Segment Information and Concentrations for additional information. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the period reported. Actual results could differ from those estimates. Evaluation of Subsequent Events The Company evaluated subsequent events through the date that our Condensed Consolidated Financial Statements were issued. No matters were identified that required adjustment of the Condensed Consolidated Financial Statements or additional disclosure other than subsequent events disclosed in the notes to the Condensed Consolidated Financial Statements. Reclassifications Certain prior-period amounts have been reclassified in the accompanying Condensed Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. Contract Assets and Liabilities The following table presents the net contract asset and contract liability balances as of September 30, 2019 and December 31, 2018. In millions Location in the Condensed Consolidated Balance Sheet September 30, 2019 December 31, 2018 Current portion of contract assets Other current assets $ 10 $ 22 Current portion of contract liabilities Contract liabilities $ 513 $ 461 Non-current portion of contract liabilities Other liabilities $ 79 $ 85 During the nine months ended September 30, 2019 , the Company recognized $320 million in revenue that was included in contract liabilities as of December 31, 2018 . Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders for which products have not been delivered or services have not been performed. As of September 30, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.1 billion . The Company expects to recognize revenue on approximately three-quarters of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. The majority of our professional services are expected to be recognized over the next 12 months but this is contingent upon a number of factors, including customers’ needs and schedules. The Company has made two elections that affect the value of remaining performance obligations described above. We do not disclose remaining performance obligations for Software as a Service (SaaS) contracts where variable consideration is directly allocated based on usage or when the original expected length is one year or less. Redeemable Noncontrolling Interests and Related Party Transactions In 2011, we sold a 49% voting equity interest in NCR Brasil - Indústria de Equipamentos para Automação S.A., a subsidiary of the Company ("NCR Manaus"), to Scopus Tecnologia Ltda. (now known as Nova Paiol Participacoes Ltda., and "Nova" as used herein). During the three months ended June 30, 2019 , we entered into a definitive agreement with Nova to purchase its 49% minority interest in NCR Manaus for R$ 11 million or approximately $3 million . The transaction was approved by local regulatory authorities and closed on October 28, 2019. We recognized revenue related to Banco Bradesco SA (Bradesco), the parent of Nova, totaling $21 million and $43 million , respectively, during the three and nine months ended September 30, 2019 as compared to $18 million and $25 million , respectively, during the three and nine months ended September 30, 2018 . As of September 30, 2019 and December 31, 2018 , we had $15 million , respectively, in receivables outstanding from Bradesco. Recent Accounting Pronouncements Issued In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The impact of adopting this guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the Financial Accounting Standards Board (FASB) issued an accounting standards update with new guidance on fair value measurement disclosure requirements that requires the disclosure of additions to and transfers into and out of Level 3 of the fair value hierarchy. The update also requires disclosure about the uncertainty in measurement as of the reporting date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The impact of adopting this guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued an accounting standards update related to accounting for implementation costs incurred in a cloud computing arrangement that is also a service contract. If a cloud computing arrangement also includes an internal-use software, an intangible asset is recognized and a liability is recognized for any payments related to the software license. However, if a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract and any fees associated with the service are expensed as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The impact of adopting this guidance is not expected to have a material impact on our consolidated financial statements. Adopted In February 2016, the FASB issued a new leasing standard that superseded guidance related to accounting for leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standard is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. We adopted using the modified retrospective approach and applied the provisions of the new leasing standard at the effective date, January 1, 2019, rather than at the beginning of the earliest period presented under the transition method provided. The standard also includes options to elect a number of practical expedients. We elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and also completed the evaluation of the remaining practical expedients available under the guidance. Refer to Note 2, Leasing for additional discussion. The standard had a material effect to the total assets and total liabilities reported on the Condensed Consolidated Balance Sheet, and did not have a material effect to the Condensed Consolidated Statement of Operations or the Condensed Consolidated Statement of Cash Flows. The impact of adoption was to record operating and financing lease assets and liabilities of $448 million and $521 million , respectively, with a reduction of $73 million for deferred rent liabilities and prepaid rent balances as of January 1, 2019. Refer to Note 2, Leasing for additional disclosure. In October 2018, the FASB issued an accounting standards update for hedge accounting guidance that we adopted during the first quarter of 2019. This guidance allows for the use of a broad Treasury repurchase agreement financing rate, which is referred to as the Secured Overnight Financing Rate (SOFR) to be used as an additional benchmark rate for hedge accounting purposes. This guidance is effective for entities that have already adopted the amendments of the hedge accounting guidance for fiscal years beginning after December 15, 2018 on a prospective basis for qualifying new or re-designated hedging relationships entered into on or after the date of adoption. The adoption of this accounting standard update did not have a material effect on our consolidated financial statements. |
Leasing
Leasing | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASING | 2. LEASING As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , we adopted the new leasing standard using the modified retrospective approach with an effective date of January 1, 2019. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. We elected the package of transition provisions available for expired or existing contracts, which allowed us to carry forward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Lessee We lease property, vehicles and equipment under operating and financing leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. We determine the lease term by assuming the exercise of renewal options that are reasonably certain. Leases with a lease term 12 months or less at inception are not recorded on our Condensed Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term in our Condensed Consolidated Statement of Operations. Our leases may include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Our incremental borrowing rate is based on a credit-adjusted risk-free rate at commencement date, which best approximates a secured rate over a similar term of lease. Additionally, we do not separate lease and non-lease components for any asset classes, except for those leases embedded in certain service arrangements. Fixed and in-substance fixed payments are included in the recognition of the operating and financing assets and lease liabilities, however, variable lease payments, other than those based on a rate or index, are recognized in the Condensed Consolidated Statements of Operations in the period in which the obligation for those payments is incurred. The Company’s variable lease payments generally relate to payments tied to various indexes, non-lease components and payments above a contractual minimum fixed payment. The following table presents our lease balances as of September 30, 2019 : In millions Location in the Condensed Consolidated Balance Sheet September 30, 2019 Assets Operating lease assets Operating lease assets $ 397 Finance lease assets Property, plant and equipment, net 23 Accumulated Amortization of Finance lease assets Property, plant and equipment, net (2 ) Total leased assets $ 418 Liabilities Current Operating lease liabilities Other current liabilities $ 91 Finance lease liabilities Other current liabilities 7 Noncurrent Operating lease liabilities Operating lease liabilities 378 Finance lease liabilities Other liabilities 16 Total lease liabilities $ 492 The following table presents our lease costs for operating and finance leases: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease cost $ 32 $ 101 Finance lease cost Amortization of leased assets 2 3 Interest on lease liabilities — — Short-Term lease cost 1 4 Variable lease cost 7 23 Total lease cost $ 42 $ 131 The following table presents the supplemental cash flow information: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34 $ 104 Operating cash flows from finance leases $ — $ — Financing cash flows from finance leases $ — $ — Lease Assets Obtained in Exchange for Lease Obligations Operating Leases $ 9 $ 29 Finance Leases $ 14 $ 23 The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Condensed Consolidated Balance Sheet as of September 30, 2019 : In millions Operating Leases Finance Leases Remainder of 2019 $ 34 $ 2 2020 109 7 2021 84 7 2022 62 6 2023 45 3 Thereafter 307 — Total lease payments 641 25 Less: Amount representing interest (172 ) (2 ) Present value of lease liabilities $ 469 $ 23 Prior to the adoption of the new lease accounting standard, future minimum lease payments under non-cancelable operating leases at December 31, 2018 were as follows: $128 million in 2019, $96 million in 2020, $80 million in 2021, $64 million in 2022, and $50 million in 2023. As of September 30, 2019 , we have additional operating leases, primarily for a real estate lease in Europe, that have not yet commenced of $67 million . This operating lease is expected to commence in 2021 with a lease term of 10 years. The following table presents the weighted average remaining lease term and interest rates: September 30, 2019 Weighted average lease term: Operating leases 9.1 years Finance leases 3.7 years Weighted average interest rates: Operating leases 6.54 % Finance leases 4.17 % Lessor We have various arrangements for certain point-of-sale equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material. |
LEASING | 2. LEASING As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , we adopted the new leasing standard using the modified retrospective approach with an effective date of January 1, 2019. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. We elected the package of transition provisions available for expired or existing contracts, which allowed us to carry forward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Lessee We lease property, vehicles and equipment under operating and financing leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. We determine the lease term by assuming the exercise of renewal options that are reasonably certain. Leases with a lease term 12 months or less at inception are not recorded on our Condensed Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term in our Condensed Consolidated Statement of Operations. Our leases may include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Our incremental borrowing rate is based on a credit-adjusted risk-free rate at commencement date, which best approximates a secured rate over a similar term of lease. Additionally, we do not separate lease and non-lease components for any asset classes, except for those leases embedded in certain service arrangements. Fixed and in-substance fixed payments are included in the recognition of the operating and financing assets and lease liabilities, however, variable lease payments, other than those based on a rate or index, are recognized in the Condensed Consolidated Statements of Operations in the period in which the obligation for those payments is incurred. The Company’s variable lease payments generally relate to payments tied to various indexes, non-lease components and payments above a contractual minimum fixed payment. The following table presents our lease balances as of September 30, 2019 : In millions Location in the Condensed Consolidated Balance Sheet September 30, 2019 Assets Operating lease assets Operating lease assets $ 397 Finance lease assets Property, plant and equipment, net 23 Accumulated Amortization of Finance lease assets Property, plant and equipment, net (2 ) Total leased assets $ 418 Liabilities Current Operating lease liabilities Other current liabilities $ 91 Finance lease liabilities Other current liabilities 7 Noncurrent Operating lease liabilities Operating lease liabilities 378 Finance lease liabilities Other liabilities 16 Total lease liabilities $ 492 The following table presents our lease costs for operating and finance leases: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease cost $ 32 $ 101 Finance lease cost Amortization of leased assets 2 3 Interest on lease liabilities — — Short-Term lease cost 1 4 Variable lease cost 7 23 Total lease cost $ 42 $ 131 The following table presents the supplemental cash flow information: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34 $ 104 Operating cash flows from finance leases $ — $ — Financing cash flows from finance leases $ — $ — Lease Assets Obtained in Exchange for Lease Obligations Operating Leases $ 9 $ 29 Finance Leases $ 14 $ 23 The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Condensed Consolidated Balance Sheet as of September 30, 2019 : In millions Operating Leases Finance Leases Remainder of 2019 $ 34 $ 2 2020 109 7 2021 84 7 2022 62 6 2023 45 3 Thereafter 307 — Total lease payments 641 25 Less: Amount representing interest (172 ) (2 ) Present value of lease liabilities $ 469 $ 23 Prior to the adoption of the new lease accounting standard, future minimum lease payments under non-cancelable operating leases at December 31, 2018 were as follows: $128 million in 2019, $96 million in 2020, $80 million in 2021, $64 million in 2022, and $50 million in 2023. As of September 30, 2019 , we have additional operating leases, primarily for a real estate lease in Europe, that have not yet commenced of $67 million . This operating lease is expected to commence in 2021 with a lease term of 10 years. The following table presents the weighted average remaining lease term and interest rates: September 30, 2019 Weighted average lease term: Operating leases 9.1 years Finance leases 3.7 years Weighted average interest rates: Operating leases 6.54 % Finance leases 4.17 % Lessor We have various arrangements for certain point-of-sale equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material. |
Business Combinations and Dives
Business Combinations and Divestitures (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. BUSINESS COMBINATIONS On July 1, 2019, NCR completed its acquisition of D3 Technology, Inc., ("D3"), a leading provider of online and mobile banking for the Large Financial Institution market, for approximately $84 million , of which $83 million was paid in cash. The remaining $1 million is payable within 12 months from the date of acquisition. The D3 acquisition further expands our digital banking strategy as we extend our market share in large domestic banks and international banks. As a result of the acquisition, D3 became a wholly owned subsidiary of NCR. Recording of Assets Acquired and Liabilities Assumed The fair value of consideration transferred to acquire D3 was allocated to the identifiable assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition as set forth below. This allocation has not been completed as of September 30, 2019 ; however, the preliminary purchase price allocation is presented in the table below. In millions Fair Value Cash acquired $ 9 Tangible assets acquired 6 Acquired intangible assets other than goodwill 20 Acquired goodwill 54 Deferred tax assets 3 Liabilities assumed (8 ) Total purchase consideration $ 84 Goodwill represents the future economic benefits arising from other assets acquired that could not be individually separately recognized. The goodwill arising from the acquisition consists of revenue synergies expected from combining the operations of NCR and D3. It is expected that none of the goodwill recognized in connection with the acquisition will be deductible for tax purposes. The goodwill arising from the acquisition has been allocated to our Banking segment. Refer to Note 5, Goodwill and Long-Lived Assets for the carrying amounts of goodwill by segment as of September 30, 2019 . The following table sets forth the components of the intangible assets acquired as of the acquisition date: Estimated Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 7 11 Technology - Software 11 5 Tradenames 2 7 Total acquired intangible assets $ 20 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. In connection with the closing of the acquisition, the Company incurred approximately $1 million of transaction costs, which has been included within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations for the year-to-date period ended September 30, 2019 . The operating results of D3 have been included within NCR’s results as of the closing date of the acquisition. Supplemental pro forma information and actual revenue and earnings since the acquisition dates have not been provided as this acquisition did not have a material impact on the Company's Condensed Consolidated Statements of Operations. |
Segment Information and Concent
Segment Information and Concentrations | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND CONCENTRATIONS | 4. SEGMENT INFORMATION AND CONCENTRATIONS As noted in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , effective January 1, 2019, NCR changed the management of its business to an industry basis from the previous model of management on a solution basis, which resulted in a corresponding change to NCR's reportable segments. We have reclassified prior period segment disclosures to conform to the current period presentation. As a result of the change, the Company manages and reports the following segments: • Banking - We offer solutions to enable customers in the financial services industry to reduce costs, generate new revenue streams and enhance customer loyalty. These solutions include a comprehensive line of ATM and payment processing hardware and software; cash management and video banking software and customer-facing digital banking services; and related installation, maintenance, and managed and professional services. • Retail - We offer solutions to customers in the retail industry designed to improve selling productivity and checkout processes as well as increase service levels. These solutions primarily include retail-oriented technologies, such as point of sale terminals and point of sale software; a retail software platform with a comprehensive suite of retail software applications; innovative self-service kiosks, such as self-checkout; as well as bar-code scanners. We also offer installation, maintenance, managed and professional services as well as payment processing solutions. • Hospitality - We offer technology solutions to customers in the hospitality industry, serving businesses that range from a single store or restaurant to global chains and sports and entertainment venues. Our solutions include point of sale hardware and software solutions, installation, maintenance, managed and professional services as well as payment processing solutions. • Other - This category includes telecommunications and technology solutions where we offer maintenance as well as managed and professional services for third-party hardware provided to select manufacturers who value and leverage our global service capability. These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker in assessing segment performance and in allocating the Company's resources. Management evaluates the performance of the segments based on revenue and segment operating income. Assets are not allocated to segments, and thus are not included in the assessment of segment performance, and consequently, we do not disclose total assets by reportable segment. The accounting policies used to determine the results of the operating segments are the same as those utilized for the consolidated financial statements as a whole. Intersegment sales and transfers are not material. To maintain operating focus on business performance, non-operational items are excluded from the segment operating results utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported income from operations. The following table presents revenue and operating income by segment: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Revenue by segment Banking $ 942 $ 795 $ 2,568 $ 2,241 Retail 539 483 1,608 1,541 Hospitality 216 193 611 595 Other 86 79 242 227 Consolidated revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 Operating income by segment Banking $ 146 $ 102 $ 370 $ 280 Retail 36 29 102 105 Hospitality 10 15 39 53 Other 10 15 30 36 Subtotal - segment operating income 202 161 541 474 Other adjustments (1) 30 36 112 346 Income from operations $ 172 $ 125 $ 429 $ 128 (1) The following table presents the other adjustments for NCR: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Transformation and restructuring costs $ 7 $ 16 $ 47 $ 98 Asset impairment charges — — — 183 Acquisition-related amortization of intangible assets 22 20 64 64 Acquisition-related costs 1 — 1 1 Total other adjustments $ 30 $ 36 $ 112 $ 346 The following table presents revenue by geography for NCR: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Americas $ 1,104 $ 898 $ 3,053 $ 2,662 Europe, Middle East and Africa (EMEA) 458 414 1,329 1,240 Asia Pacific (APJ) 221 238 647 702 Total revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 The following tables present revenue from products and services for NCR: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Product revenue $ 712 $ 534 $ 1,915 $ 1,585 Professional services and installation services revenue 273 276 781 803 Recurring revenue, including maintenance, cloud revenue and payments 798 740 2,333 2,216 Total revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Software $ 512 $ 480 $ 1,475 $ 1,410 Services 640 616 1,847 1,827 Hardware 631 454 1,707 1,367 Total revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND LONG-LIVED ASSETS | 5. GOODWILL AND LONG-LIVED ASSETS As noted in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , effective January 1, 2019, the Company began management of its business on an industry basis, changing from the previous model of management on a solution basis, which resulted in a corresponding change to NCR's reportable segments. In connection with the change in reportable segments, during the first quarter of 2019, the Company determined its reporting units and then assigned goodwill to the new reporting units based on the relative fair value allocation approach. Based on this analysis, it was determined that the fair value of all reporting units were substantially in excess of the carrying value. We have reclassified prior period goodwill disclosures to conform to the current period presentation. The carrying amounts of goodwill by segment as of September 30, 2019 and December 31, 2018 are included in the table below. Foreign currency fluctuations are included within other adjustments . December 31, 2018 September 30, 2019 In millions Goodwill Accumulated Impairment Losses Total Additions Impairment Other Goodwill Accumulated Impairment Losses Total Banking $ 1,718 $ (101 ) $ 1,617 $ 54 $ — $ (2 ) $ 1,770 $ (101 ) $ 1,669 Retail 571 (34 ) 537 1 — (1 ) 571 (34 ) 537 Hospitality 385 (23 ) 362 11 — (1 ) 395 (23 ) 372 Other 187 (11 ) 176 — — — 187 (11 ) 176 Total goodwill $ 2,861 $ (169 ) $ 2,692 $ 66 $ — $ (4 ) $ 2,923 $ (169 ) $ 2,754 Additions during 2019 represent purchase accounting adjustments related to the acquisition of JetPay Corporation, goodwill arising from several acquisitions of resellers within the Hospitality segment that were completed in the first and second quarters of 2019, and goodwill arising from the acquisition of D3 Technology in the third quarter of 2019. NCR’s purchased intangible assets, reported in intangibles, net in the Condensed Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below. Amortization Period (in Years) September 30, 2019 December 31, 2018 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable intangible assets Reseller & customer relationships 1 - 20 $ 732 $ (258 ) $ 726 $ (218 ) Intellectual property 2 - 8 454 (390 ) 443 (373 ) Customer contracts 8 89 (88 ) 89 (87 ) Tradenames 1 - 10 76 (66 ) 75 (60 ) Total identifiable intangible assets $ 1,351 $ (802 ) $ 1,333 $ (738 ) The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Remainder of 2019 (estimated) Amortization expense $ 22 $ 64 $ 23 For the years ended December 31 (estimated) In millions 2020 2021 2022 2023 2024 Amortization expense $ 71 $ 63 $ 58 $ 55 $ 49 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | 6. DEBT OBLIGATIONS The following table summarizes the Company's short-term borrowings and long-term debt: September 30, 2019 December 31, 2018 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) $ 3 4.55% $ 84 4.51% Trade Receivables Securitization Facility 200 2.92% 100 3.37% Other (1) 5 5.44% 1 4.92% Total short-term borrowings $ 208 $ 185 Long-Term Debt Senior Secured Credit Facility: Term loan facility (1) $ 347 4.55% $ 675 4.51% Revolving credit facility (1) 400 3.80% 120 4.49% Senior notes: 5.00% Senior Notes due 2022 600 600 4.625% Senior Notes due 2021 — 500 5.875% Senior Notes due 2021 400 400 6.375% Senior Notes due 2023 700 700 5.750% Senior Notes due 2027 500 — 6.125% Senior Notes due 2029 500 — Deferred financing fees (28 ) (18 ) Other (1) 3 0.05% 3 0.59% Total long-term debt $ 3,422 $ 2,980 (1) Interest rates are weighted-average interest rates as of September 30, 2019 and December 31, 2018 . Senior Secured Credit Facility On August 28, 2019, the Company entered into an amended and restated senior secured credit facility with and among certain foreign subsidiaries of NCR (the Foreign Borrowers), the lenders party thereto and JPMorgan Chase Bank, N.A. (JPMCB) as the administrative agent, refinancing its term loan facility and revolving credit facility thereunder (the Senior Secured Credit Facility). The Senior Secured Credit Facility consists of a term loan facility with an aggregate principal commitment of $750 million , of which $350 million was outstanding as of September 30, 2019 . The Senior Secured Credit Facility permits the Company to draw the remaining $400 million under the term loan facility at any time on or prior to December 31, 2019, which was subsequently drawn on October 10, 2019. Additionally, the Senior Secured Credit Facility provides for a five-year revolving credit facility with an aggregate principal commitment of $1.1 billion , of which $400 million was outstanding as of September 30, 2019 . The revolving credit facility also allows a portion of the availability to be used for letters of credit, and as of September 30, 2019 , there were no letters of credit outstanding. As a result of amending the Senior Secured Credit Facility, the Company wrote off approximately $5 million of deferred financing fees which were recorded within interest expense during the three and nine months ended September 30, 2019 in the Condensed Consolidated Statements of Operations. Additionally, the Company incurred debt issuance fees of $15 million that have been deferred and will be recognized in interest expense over the term of the Senior Secured Credit Facility. Up to $400 million of the revolving credit facility is available to the Foreign Borrowers. Term loans were made to the Company in U.S. Dollars, and loans under the revolving credit facility are available in U.S. Dollars, Euros and Pound Sterling. The outstanding principal balance of the term loan facility is required to be repaid in equal quarterly installments of approximately 0.25% of the aggregate principal amount beginning with the fiscal quarter ending December 31, 2019, with the balance being due at maturity on August 28, 2026. Borrowings under the revolving portion of the credit facility are due August 28, 2024. Amounts outstanding under the Senior Secured Credit Facility for the revolving loan facility bear interest at LIBOR (or, in the case of amounts denominated in Euros, EURIBOR), or, at NCR’s option, in the case of amounts denominated in U.S. Dollars, at a base rate equal to the highest of (a) the federal funds rate plus 0.50% , (b) the rate interest last quoted by the Wall Street Journal as the “prime rate” and (c) the one-month LIBOR rate plus 1.00% (the Base Rate), plus, in each case, a margin ranging from 1.25% to 2.25% for LIBOR-based loans or EURIBOR-based revolving loans and ranging from 0.25% to 1.25% for Base Rate-based revolving loans, in each case, depending on the Company’s consolidated leverage ratio. The terms of the Senior Secured Credit Facility also require certain other fees and payments to be made by the Company, including a commitment fee on the undrawn portion of the revolving credit facility. Amounts outstanding under the Senior Secured Credit Facility for the term loan facility bear interest at LIBOR plus 2.5% margin per annum, or, at NCR's option, the Base Rate plus a 1.50% margin per annum. The obligations of the Company and Foreign Borrowers under the Senior Secured Credit Facility are guaranteed by certain of the Company's wholly-owned subsidiaries. The Senior Secured Credit Facility and these guarantees are secured by a first priority lien and security interest in certain equity interests owned by the Company and the guarantor subsidiaries in certain of their respective domestic and foreign subsidiaries, and a perfected first priority lien and security interest in substantially all of the Company's U.S. assets and the assets of the guarantor subsidiaries, subject to certain exclusions. These security interests would be released if the Company achieves an “investment grade” rating, and will remain released so long as the Company maintains that rating. The Senior Secured Credit Facility includes affirmative and negative covenants that restrict or limit the ability of the Company and its subsidiaries to, among other things, incur indebtedness; create liens on assets; engage in certain fundamental corporate changes or changes to the Company's business activities; make investments; sell or otherwise dispose of assets; engage in sale-leaseback or hedging transactions; repurchase stock, pay dividends or make similar distributions; repay other indebtedness; engage in certain affiliate transactions; or enter into agreements that restrict the Company's ability to create liens, pay dividends or make loan repayments. The Senior Secured Credit Facility also includes financial covenants that require the Company to maintain: • a consolidated leverage ratio on the last day of any fiscal quarter, not to exceed (i) in the case of any fiscal quarter ending and on or prior to March 31, 2021, (a) the sum of 4.50 and an amount (not to exceed 0.50 ) to reflect debt used to reduce NCR’s unfunded pension liabilities to (b) 1.00 , and (ii) in the case of any fiscal quarter ending after March 31, 2021 and on or prior to March 31, 2023, (a) the sum of 4.25 and an amount (not to exceed 0.50 ) to reflect debt used to reduce NCR’s unfunded pension liabilities to (b) 1.00 ; and (iii) in the case of any fiscal quarter ending after March 31, 2023, (a) the sum of 4.00 and an amount (no to exceed 0.50 ) to reflect debt used to reduce our unfunded pension liabilities to (b) 1.00 . The Company has the option to elect to increase the maximum permitted leverage ratio by 0.25 in connection with the consummation of any material acquisition (as defined in the Senior Secured Credit Facility) for four fiscal quarters, but in no event will the maximum permitted leverage ratio, inclusive of all increases, exceed 4.75 to 1.00 . At September 30, 2019 , the maximum consolidated leverage ratio under the Senior Secured Credit Facility was 4.75 to 1.00 . The Senior Secured Credit Facility also includes provisions for events of default, which are customary for similar financings. Upon the occurrence of an event of default, the lenders may, among other things, terminate the loan commitments, accelerate all loans and require cash collateral deposits in respect of outstanding letters of credit. If the Company is unable to pay or repay the amounts due, the lenders could, among other things, proceed against the collateral granted to them to secure such indebtedness. The Company may request, at any time and from time to time, but the lenders are not obligated to fund, the establishment of one or more incremental term loans and/or revolving credit facilities (subject to the agreement of existing lenders or additional financial institutions to provide such term loans and/or revolving credit facilities) with commitments in an aggregate amount not to exceed the sum of (i) $150 million , plus (ii) such amount as would not cause the leverage ratio under the Senior Secured Credit Facility, calculated on a pro forma basis including the incremental facility and assuming that it and the revolver are fully drawn, to exceed 3.00 to 1.00, and the proceeds of which can be used for working capital requirements and other general corporate purposes. Senior Unsecured Notes On September 17, 2012, the Company issued $600 million aggregate principal amount of 5.00% senior unsecured notes due in 2022 (the 5.00% Notes). The 5.00% Notes were sold at 100% of the principal amount and will mature on July 15, 2022. On December 18, 2012, the Company issued $500 million aggregate principal amount of 4.625% senior unsecured notes due in 2021 (the 4.625% Notes). The 4.625% Notes were sold at 100% of the principal amount and will mature on February 15, 2021. On December 19, 2013, the Company issued $400 million aggregate principal amount of 5.875% senior unsecured notes due in 2021 (the 5.875% Notes) and $700 million aggregate principal amount of 6.375% senior unsecured notes due in 2023 (the 6.375% Notes). The 5.875% Notes were sold at 100% of the principal amount and will mature on December 15, 2021 and the 6.375% Notes were sold at 100% of the principal amount and will mature on December 15, 2023. On August 21, 2019, the Company issued $500 million aggregate principal amount of 5.750% senior unsecured notes due in 2027 (the 5.750% Notes) and $500 million aggregate principal amount of 6.125% senior unsecured notes due in 2029 (the 6.125% Notes). The 5.750% Notes were sold at 100% of the principal amount and will mature on September 1, 2027. The 6.125% Notes were sold at 100% of the principal amount and will mature on September 1, 2029. On August 8, 2019, the Company issued a notice of full redemption to redeem all of the outstanding aggregate principal amount of the 4.625% Notes. On September 7, 2019, the 4.625% Notes were redeemed at a price equal to (i) 100% of the aggregate principal amount of the Notes and (ii) accrued and unpaid interest to, but not including, the redemption date. Upon deposit of the redemption payment, the 4.625% Notes were satisfied and discharged in accordance with its terms. As a result of the redemption of the 4.625% Notes, the Company wrote off approximately $1 million of deferred financing fees which was recorded within interest expense during the three and nine months ended September 30, 2019 in the Condensed Consolidated Statements of Operations. For the issuance of the 5.750% Notes and the 6.125% Notes, the Company incurred debt issuance fees of $15 million that have been deferred and will be recognized in interest expense over the term of the indentures. The Company has the option to redeem the 5.750% Notes, in whole or in part, at any time on or after September 1, 2022, at a redemption price of 102.875% , 101.438% , and 100% during the 12-month periods commencing on September 1, 2022, 2023, and 2024 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to September 1, 2022, the Company may redeem the 5.750% Notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. The Company has the option to redeem the 6.125% Notes, in whole or in part, at any time on or after September 1, 2024, at a redemption price of 103.063% , 102.042% , 101.021% and 100% during the 12-month periods commencing on September 1, 2024, 2025, 2026 and 2027 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to September 1, 2024, the Company may redeem the 6.125% Notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. The senior unsecured notes are guaranteed, fully and unconditionally, on an unsecured senior basis, by our subsidiary, NCR International, Inc. Under the indentures for these notes, the Company, has the option to redeem each series of notes, in whole or in part, at various times for specified prices, plus accrued and unpaid interest. The terms of the indentures for these notes limit the ability of the Company and certain of its subsidiaries to, among other things, incur additional debt or issue redeemable preferred stock; pay dividends or make certain other restricted payments or investments; incur liens; sell assets; incur restrictions on the ability of the Company's subsidiaries to pay dividends to the Company; enter into affiliate transactions; engage in sale and leaseback transactions; and consolidate, merge, sell or otherwise dispose of all or substantially all of the Company's or such subsidiaries' assets. These covenants are subject to significant exceptions and qualifications. For example, if these notes are assigned an investment grade rating by Moody's or S&P and no default has occurred or is continuing, certain covenants will be terminated. Trade Receivables Securitization Facility In November 2014, the Company established a two-year revolving trade receivables securitization facility (the A/R Facility) with PNC Bank, National Association (PNC) as the administrative agent, and various lenders. In November 2016, the Company amended the A/R Facility to extend the maturity date to November 2018. In November 2018, the Company amended the A/R Facility to extend the maturity date to November 2020. The A/R Facility provides for up to $200 million in funding based on the availability of eligible receivables and other customary factors and conditions. Under the A/R Facility, NCR sells and/or contributes certain of its U.S. trade receivables to a wholly-owned, bankruptcy-remote subsidiary as they are originated, and advances by the lenders to that subsidiary are secured by those trade receivables. The assets of this financing subsidiary are restricted as collateral for the payment of its obligations under the A/R Facility, and its assets and credit are not available to satisfy the debts and obligations owed to the creditors of the Company. The Company includes the assets, liabilities and results of operations of this financing subsidiary in its consolidated financial statements. The financing subsidiary owned $645 million and $526 million of outstanding accounts receivable as of September 30, 2019 and December 31, 2018 , respectively, and these amounts are included in accounts receivable, net in the Company’s Condensed Consolidated Balance Sheets. The financing subsidiary pays annual commitment and other customary fees to the lenders, and advances by a lender under the A/R Facility accrue interest (i) at a reserve-adjusted LIBOR rate or a base rate equal to the highest of (a) the applicable lender’s prime rate or (b) the federal funds rate plus 0.50% , if the lender is a committed lender, or (ii) based on commercial paper interest rates if the lender is a commercial paper conduit lender. Advances may be prepaid at any time without premium or penalty. The A/R Facility contains various customary affirmative and negative covenants and default and termination provisions that provide for the acceleration of the advances under the A/R Facility in circumstances including, but not limited to, failure to pay interest or principal when due, breach of representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness. Fair Value of Debt The Company utilized Level 2 inputs, as defined in the fair value hierarchy, to measure the fair value of the long-term debt, which, as of September 30, 2019 and December 31, 2018 was $3.73 billion and $3.11 billion , respectively. Management's fair value estimates were based on quoted prices for recent trades of NCR’s long-term debt, quoted prices for similar instruments, and inquiries with certain investment communities. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES Income tax provisions for interim (quarterly) periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items. Income tax expense was $4 million for the three months ended September 30, 2019 compared to income tax benefit of $15 million for the three months ended September 30, 2018 . The change was primarily driven by lower discrete benefits recognized in the current period. In the three months ended September 30, 2018 , income tax was benefited by tax method changes filed during the prior year that resulted in lower deferred tax assets subject to the downward rate remeasurement resulting from U.S. Tax Reform as well as discrete benefits from tax restructuring transactions. In the three months ended September 30, 2019 , the discrete benefits were primarily the release of a $25 million valuation allowance related to certain non-US deferred tax assets. Income tax expense was $28 million for the nine months ended September 30, 2019 compared to an income tax benefit of $20 million for the nine months ended September 30, 2018 . The change in income tax expense was primarily driven by lower discrete benefits recognized in the current period. In the nine months ended September 30, 2018 , income tax was benefited by tax method changes filed during the prior year that resulted in lower deferred tax assets subject to the downward rate remeasurement resulting from U.S. Tax Reform, discrete benefits from tax restructuring transactions as well as favorable audit settlements in international jurisdictions. In the nine months ended September 30, 2019 , the discrete benefits were primarily the release of a $25 million valuation allowance related to certain non-US deferred tax assets. The Company regularly reviews our deferred tax assets for recoverability based on the evaluation of positive and negative evidence. During the three months ended September 30, 2019 , the Company made the determination that there was sufficient positive evidence to release the valuation allowance in one non-US jurisdiction, resulting in a $25 million tax benefit noted above. The Company engages in continuous discussions and negotiations with taxing authorities regarding tax matters, and the Company has determined that over the next 12 months it expects to resolve certain tax matters related to U.S. and foreign jurisdictions. As a result, as of September 30, 2019 , we estimate that it is reasonably possible that gross unrecognized tax benefits may decrease by $10 million to $17 million in the next 12 months. |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION PLANS | 8. STOCK COMPENSATION PLANS As of September 30, 2019 , the Company’s primary type of stock-based compensation was restricted stock units and stock options. Stock-based compensation expense for the following periods were: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Restricted stock units $ 25 $ 13 $ 67 $ 50 Stock options 2 1 6 2 Employee stock purchase plan 1 1 3 3 Stock-based compensation expense 28 15 76 55 Tax benefit (5 ) — (12 ) (7 ) Total stock-based compensation expense (net of tax) $ 23 $ 15 $ 64 $ 48 Stock-based compensation expense is recognized in the financial statements based upon grant date fair value. The Company granted stock options and the weighted average fair value of option grants was estimated based on the below weighted average assumptions, which was $8.07 and $9.80 for the nine months ended September 30, 2019 and 2018 , respectively. The stock options that were granted for the nine months ended September 30, 2019 and 2018 had a seven year contractual term and will vest over four years. Nine months ended September 30 2019 2018 Dividend yield $ — $ — Risk-free interest rate 2.50 % 2.50 % Expected volatility 34.79 % 34.88 % Expected holding period (years) 3.9 3.8 Expected volatility is calculated as the historical volatility of the Company’s stock over a period equal to the expected term of the options, as management believes this is the best representation of prospective trends. The Company uses historical data to estimate option exercise and employee terminations within the valuation model. The expected holding period represents the period of time that options are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on a blend of the three and five-year U.S. Treasury yield curve in effect at the time of grant. As of September 30, 2019 , the total unrecognized compensation cost of $101 million related to unvested restricted stock grants is expected to be recognized over a weighted average period of approximately 0.9 years . As of September 30, 2019 , the total unrecognized compensation cost of $28 million related to unvested stock option grants is expected to be recognized over a weighted average period of approximately 1.6 years . Employee Stock Purchase Plan The Company's Employee Stock Purchase Plan ("ESPP") provides employees a 15% discount on stock purchases using a three -month look-back feature where the discount is applied to the stock price that represents the lower of NCR’s closing stock price on either the first day or the last day of each calendar quarter. Participants can contribute between 1% and 10% of their compensation. For the three months ended September 30, 2019 , employees purchased 0.2 million shares, at a discounted price of $26.44 . For the three months ended September 30, 2018 , employees purchased 0.2 million shares, at a discounted price of $25.59 . |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 9. EMPLOYEE BENEFIT PLANS Components of net periodic benefit cost (income) of the pension plans for the three months ended September 30 were as follows: In millions U.S. Pension Benefits International Pension Benefits Total Pension Benefits 2019 2018 2019 2018 2019 2018 Net service cost $ — $ — $ 1 $ 2 $ 1 $ 2 Interest cost 16 16 5 4 21 20 Expected return on plan assets (10 ) (10 ) (8 ) (9 ) (18 ) (19 ) Amortization of prior service cost — — 1 1 1 1 Net periodic benefit cost (income) $ 6 $ 6 $ (1 ) $ (2 ) $ 5 $ 4 Components of net periodic benefit cost (income) of the pension plans for the nine months ended September 30 were as follows: In millions U.S. Pension Benefits International Pension Benefits Total Pension Benefits 2019 2018 2019 2018 2019 2018 Net service cost $ — $ — $ 4 $ 6 $ 4 $ 6 Interest cost 49 46 15 15 64 61 Expected return on plan assets (32 ) (32 ) (23 ) (25 ) (55 ) (57 ) Amortization of prior service cost — — 1 1 1 1 Net periodic benefit cost (income) $ 17 $ 14 $ (3 ) $ (3 ) $ 14 $ 11 The benefit from the postretirement plan for the following periods were: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Amortization of: Prior service benefit $ (2 ) $ (1 ) $ (4 ) $ (4 ) Actuarial loss 1 — 1 1 Net postretirement benefit $ (1 ) $ (1 ) $ (3 ) $ (3 ) The net cost of the postemployment plan for the following periods were: Three months ended September 30 Nine months ended September 30 In millions 2019 2018 2019 2018 Net service cost $ 5 $ 4 $ 24 $ 23 Interest cost — — 2 2 Amortization of: Prior service benefit — (2 ) (2 ) (4 ) Actuarial gain (1 ) — (2 ) — Net benefit cost $ 4 $ 2 $ 22 $ 21 Employer Contributions Pension For the three and nine months ended September 30, 2019 , NCR contributed $6 million and $17 million , respectively, to its international pension plans. NCR anticipates contributing an additional $11 million to its international pension plans for a total of $28 million in 2019 . Postretirement For the three and nine months ended September 30, 2019 , NCR contributed zero and $1 million of contributions, respectively, to its U.S. postretirement plan. NCR anticipates contributing an additional $1 million to its U.S. postretirement plan for a total of $2 million in 2019 . Postemployment For the three and nine months ended September 30, 2019 , NCR contributed $6 million and $28 million , respectively, to its postemployment plans. NCR anticipates contributing an additional $2 million to its postemployment plans for a total of $30 million in 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES In the normal course of business, NCR is subject to various proceedings, lawsuits, claims and other matters, including, for example, those that relate to the environment and health and safety, labor and employment, employee benefits, import/export compliance, intellectual property, data privacy and security, product liability, commercial disputes and regulatory compliance, among others. Additionally, NCR is subject to diverse and complex laws and regulations, including those relating to corporate governance, public disclosure and reporting, environmental safety and the discharge of materials into the environment, product safety, import and export compliance, data privacy and security, antitrust and competition, government contracting, anti-corruption, and labor and human resources, which are rapidly changing and subject to many possible changes in the future. Compliance with these laws and regulations, including changes in accounting standards, taxation requirements, and federal securities laws among others, may create a substantial burden on, and substantially increase costs to NCR or could have an impact on NCR's future operating results. The Company has reflected all liabilities when a loss is considered probable and reasonably estimable in the Condensed Consolidated Financial Statements. We do not believe there is a reasonable possibility that losses exceeding amounts already recognized have been incurred, but there can be no assurances that the amounts required to satisfy alleged liabilities from such matters will not impact future operating results. Other than as stated below, the Company does not currently expect to incur material capital expenditures related to such matters. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various lawsuits, claims, legal proceedings and other matters, including, but not limited to the Fox River and Kalamazoo River environmental matters and other matters discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in NCR’s Condensed Consolidated Financial Statements or will not have a material adverse effect on its consolidated results of operations, capital expenditures, competitive position, financial condition or cash flows. In June 2014, one of the Company’s Brazilian subsidiaries, NCR Manaus, was notified of a Brazilian federal tax assessment of R$ 168 million , or approximately $43 million as of December 31, 2018 , including penalties and interest regarding certain federal indirect taxes for 2010 through 2012. The assessment alleges improper importation of certain components into Brazil's free trade zone that would nullify related indirect tax incentives. At the time of the assessment, we did not record an accrual for the assessment as the Company believed it had a valid position regarding indirect taxes in Brazil and, as such, filed an appeal in 2014. In December 2017, the Company prevailed in this appeal regarding substantially all of the disputed amounts. The Brazilian federal tax authority further appealed this dispute to the next procedural level, in which an intermediate tribunal decided in NCR's favor in August 2018 and issued an opinion to that effect on February 25, 2019. The Brazilian tax authorities appealed one of the matters included within this decision. In May 2019, the Supreme Administrative Court issued an opinion in favor of NCR finally resolving this matter and canceling any future assessments. On November 6, 2019, Boston Consulting Group, Inc., a former consultant for the Company, commenced a lawsuit against the Company in the United States District Court for the District of New York. The Complaint in the matter alleges the Company breached two consulting agreements and seeks in excess of $80 million and other compensatory damages and equitable relief. While the Company at this time is unable to make any predictions about the outcome of this case or estimate any possible liability, the Company believes the allegations of money owed are grossly overstated, and the Company intends to vigorously defend this lawsuit. Environmental Matters NCR's facilities and operations are subject to a wide range of environmental protection laws, and NCR has investigatory and remedial activities underway at a number of facilities that it currently owns or operates, or formerly owned or operated, to comply, or to determine compliance, with such laws. Also, NCR has been identified, either by a government agency or by a private party seeking contribution to site clean-up costs, as a potentially responsible party (PRP) at a number of sites pursuant to various state and federal laws, including the Federal Water Pollution Control Act, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and comparable state statutes. Other than the Fox River matter, the Kalamazoo River matter and the Ebina matter discussed below, we currently do not anticipate material expenses and liabilities from these environmental matters. Fox River NCR is one of eight entities that were formally notified by governmental and other entities, such as local Native American tribes, that they are PRPs for environmental claims (under CERCLA and other statutes) arising out of the presence of polychlorinated biphenyls (PCBs) in sediments in the lower Fox River and in the Bay of Green Bay in Wisconsin. The other Fox River PRPs that received notices include Appleton Papers Inc. (API; now known as Appvion, Inc.), P.H. Glatfelter Company ("Glatfelter"), Georgia-Pacific Consumer Products LP (GP, successor to Fort James Operating Company), and others. NCR was identified as a PRP because of alleged PCB discharges from two carbonless copy paper manufacturing facilities it previously owned, which were located along the Fox River. NCR sold its facilities in 1978 to API. The parties have also contended that NCR is responsible for PCB discharges from paper mills owned by other companies because NCR carbonless copy paper "broke" was allegedly purchased by those other mills as a raw material. The United States Environmental Protection Agency (USEPA) and Wisconsin Department of Natural Resources (together, the Governments) developed clean-up plans for the upper and lower parts of the Fox River and for portions of the Bay of Green Bay. On November 13, 2007, the Governments issued a unilateral administrative order (the 2007 Order) under CERCLA to the eight original PRPs, requiring them to perform remedial work under the Governments’ clean-up plan for the lower parts of the river (operable units 2 through 5). In April 2009, NCR and API formed a limited liability company (the LLC), which entered into an agreement with an environmental remediation contractor to perform the work at the Fox River site. In-water dredging and remediation under the clean-up plan commenced shortly thereafter. NCR and API, along with B.A.T Industries p.l.c. (BAT), share among themselves a portion of the cost of the Fox River clean-up and natural resource damages (NRD) based upon a 1998 agreement (the Cost Sharing Agreement), a 2005 arbitration award (subsequently confirmed as a judgment), and a September 30, 2014 Funding Agreement (the Funding Agreement). The Cost Sharing Agreement and the arbitration resolved disputes that arose out of the Company's 1978 sale of its Fox River facilities to API. The Cost Sharing Agreement and arbitration award resulted in a 45% share for NCR of the first $75 million of such costs (a threshold that was reached in 2008), and a 40% share for amounts in excess of $75 million . The Funding Agreement arose out of a 2012 to 2014 arbitration dispute between NCR and API, and provides for regular, ongoing funding of NCR-incurred Fox River remediation costs via contributions, made to a new limited liability corporation created by the Funding Agreement, by BAT, API and, for 2014, API's indemnitor Windward Prospects. The Funding Agreement creates an obligation on BAT and API to fund 50% of NCR’s Fox River remediation costs from October 1, 2014 forward; (API’s Fox River-related obligations under the Funding Agreement were fully satisfied in 2016); the Funding Agreement also provides NCR contractual avenues for payment of, via direct and third-party sources, (1) the difference between BAT’s and API’s 60% obligation under the Cost Sharing Agreement and arbitration award on the one hand and their ongoing (since September 2014) 50% payments under the Funding Agreement on the other, as well as (2) the difference between the amount NCR received under the Funding Agreement and the amount owed to it under the Cost Sharing Agreement and arbitration award for the period from April 2012 through September 2014. As of September 30, 2019 and December 31, 2018 , the receivable under the Funding Agreement was approximately $49 million and $45 million , respectively, and was included in other assets in the Condensed Consolidated Balance Sheet. The Company anticipates that it will collect sums related to the receivable in 2020 or later, likely after the remediation efforts related to the Fox River matter, described below, are complete. This receivable is not taken into account in calculating the Company’s Fox River net reserve. The Company's litigations relating to contribution and enforcement claims concerning the Fox River have been concluded. A proposed consent decree settlement (the CD settlement) with respect to the contribution action (a case originally filed by NCR and API) and the government enforcement action (a case originally filed by the federal and state governments against several PRPs, including the Company) was successfully negotiated by NCR and the federal and state governments and was approved on August 22, 2017 by the federal district court in Wisconsin that had been presiding over those cases. A final order of dismissal as to the Company in the contribution and government enforcement actions was subsequently entered; one party, Glatfelter, had appealed the approval of the CD settlement. On January 3, 2019, the United States lodged a proposed consent decree with the Wisconsin court, reflecting a settlement reached by the United States, Wisconsin and Glatfelter with respect to Glatfelter’s Fox River liability under the government enforcement action; a component of that settlement was withdrawal of Glatfelter’s appeal opposing the Company’s CD settlement. On March 14, 2019, the Wisconsin court approved the Glatfelter consent decree, and on April 3, 2019, Glatfelter's appeal was dismissed. The CD settlement has now resolved the remaining Fox River-related contribution and enforcement claims against the Company. The key components of the approved CD settlement include (1) the Company’s commitment to complete the remediation of the Fox River, which is now expected to be completed in 2020; (2) the Company’s conditional agreement to waive its contribution claims against the two remaining defendants in the case, GP and Glatfelter; (3) the Company’s agreement not to appeal the trial court’s decision on divisibility of harm; (4) the Governments’ agreement to include in the settlement so-called “contribution protection” in the Company’s favor as to GP’s and Glatfelter’s contribution claims against the Company, the effect of which will be to extinguish those claims; (5) the Governments’ agreement not to pursue the Company for the Governments’ past oversight costs; and (6) the Governments’ agreement to exercise prosecutorial discretion in pursuing other parties for future oversight costs and long-term monitoring and maintenance, with the Company retaining so-called “backstop” liability in the event that the other parties fail to pay future oversight costs or to perform long-term monitoring and maintenance. Additionally, although certain state law claims by GP and Glatfelter against the Company may not be affected directly by the CD settlement, the CD settlement provides that the Company’s contribution claims against those two parties will revive if those parties attempt to assert any claims against the Company relating to the Fox River, including any state law claims. In the quarter ending September 30, 2017, the remediation general contractor commenced an arbitration against the LLC, in a dispute over contract interpretation. The hearing on this matter was completed in June 2019, and the parties submitted post-trial briefs in August 2019. The amounts claimed by the contractor range from approximately $46 million to approximately $53 million ; the Company disputed the claims and contested them vigorously during the hearing. In November 2019, having rejected substantial portions of the claims, the arbitration panel awarded the contractor $10 million . The Company’s indemnitors and co-obligors, described below, are expected to bear responsibility for the majority of any award, with the Company’s share of approximately one-fourth of such award. With respect to the Company’s prior dispute with API, which was generally superseded by the Funding Agreement, the Company received timely payments as they came due under the Funding Agreement. Although API filed for bankruptcy protection in October 2017, it had made all of the payments to the Company in connection with the Fox River that are required of it by the Funding Agreement. NCR's eventual remediation liability, followed by long-term monitoring expected to be performed by others, will depend on a number of factors. In establishing the reserve, NCR attempts to estimate a range of reasonably possible outcomes for each of these factors, although each range is itself uncertain. NCR uses its best estimate within the range, if that is possible. Where there is a range of equally possible outcomes, and there is no amount within that range that is considered to be a better estimate than any other amount, NCR uses the low end of the range. The significant factors include: (1) the total remaining clean-up costs, including the costs associated with decommissioning the site, the expected cost impact of which is expected to be neutral or non-material to the Company, including long-term monitoring following completion of the clean-up, and what parties are assigned to discharge the post-clean-up tasks (as noted, the Company no longer expects to bear long-term monitoring costs); (2) total NRD for the site and the share that NCR will bear (which is now resolved as to the Company); (3) the share of clean-up costs that NCR will bear (which is resolved under the CD settlement); (4) NCR's transaction and litigation costs to defend itself to the extent additional litigation is required with respect to the claim brought by the general contractor; and (5) the share of NCR's payments that BAT will bear (which is governed by the Cost Sharing Agreement and the Funding Agreement, BAT has made all of the payments requested of it, and as discussed above; API is in bankruptcy and is not presumed likely to bear further shares of NCR’s payments). With respect to NRD, in connection with a certain settlement entered into by other PRPs in 2015, the Government withdrew the NRD claims it had prosecuted on behalf of NRD trustees, including those NRD claims asserted against the Company. Calculation of the Company's Fox River reserve is subject to several complexities, and it is possible there could be additional changes to some elements of the reserve over upcoming periods, although the Company is unable to predict or estimate such changes at this time. There can be no assurance that the clean-up and related expenditures and liabilities will not have a material effect on NCR's capital expenditures, earnings, financial condition, cash flows, or competitive position. As of September 30, 2019 , the gross reserve for the Fox River matter was approximately $13 million , compared to $21 million as of December 31, 2018 . As of September 30, 2019 , the net reserve for the Fox River matter was approximately $10 million , compared to $17 million as of December 31, 2018 . The change in the net reserve is due to payments for clean-up activities and litigation costs. NCR contributes to the LLC to fund remediation activities and generally, by contract, has funded certain amounts of remediation expenses in advance. As of September 30, 2019 and December 31, 2018 , approximately zero remained from this funding. NCR's reserve for the Fox River matter is reduced as the LLC makes payments to the remediation contractor and other vendors with respect to remediation activities. Under a 1996 agreement, AT&T Corp. (AT&T) and Nokia (as the successor to Lucent Technologies and Alcatel-Lucent USA) are responsible severally (not jointly) for indemnifying NCR for certain portions of the amounts paid by NCR for the Fox River matter over a defined threshold and subject to certain offsets. (The agreement governs certain aspects of AT&T's divestiture of NCR and of what was then known as Lucent Technologies.) Those companies have made the payments requested of them by the Company on an ongoing basis. Kalamazoo River In November 2010, USEPA issued a "general notice letter" to NCR with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site (Kalamazoo River site) in Michigan. Three other companies - International Paper, Mead Corporation, and Consumers Energy - also received general notice letters at or about the same time. USEPA asserts that the site is contaminated by various substances, primarily PCBs, as a result of discharges by various paper mills located along the river. USEPA does not claim that the Company made direct discharges into the Kalamazoo River, and NCR never had facilities at or near the Kalamazoo River site, but USEPA indicated that "NCR may be liable under Section 107 of CERCLA ... as an arranger, who by contract or agreement, arranged for the disposal, treatment and/or transportation of hazardous substances at the Site." USEPA stated that it "may issue special notice letters to [NCR] and other PRPs for future RI/FS [remedial investigation / feasibility studies] and RD/RA [remedial design / remedial action] negotiations." In connection with the Kalamazoo River site, in December 2010 the Company, along with two other defendants, was sued in federal court by three Georgia-Pacific (GP) affiliate corporations in a private-party contribution and cost recovery action for alleged pollution. The suit, pending in Michigan, asks that the Company and other defendants pay a "fair portion" of these companies’ costs. Various removal and remedial actions remain to be decided upon and performed at the Kalamazoo River site, the costs for which generally have not yet been determined; in 2017 Records of Decisions were issued for two parts of the river, and in 2018 such a decision was issued for another part of the river, but such decisions for the majority of the work are expected to be made only over the next several years. The suit alleges that the Company is liable to the GP entities as an "arranger" under CERCLA. The initial phase of the case was tried in a Michigan federal court in February 2013; on September 26, 2013 the court issued a decision that held NCR was liable as an “arranger” as of at least March 1969. (PCB-containing carbonless copy paper was produced from approximately 1954 to April 1971, and the majority of contamination at the Kalamazoo River site had occurred prior to 1969). NCR preserved its right to appeal the September 2013 decision. In the 2013 decision the Court did not determine NCR’s share of the overall liability. Relative shares of liability for the four companies were tried to the court in a subsequent phase of the case in December 2015. In a ruling issued on March 29, 2018, the court addressed responsibility for the costs that GP had incurred in the past, totaling to approximately $50 million (GP had sought approximately $105 million , but $55 million of those claims were removed by the court upon motions filed by the Company and other parties); NCR and GP were each assigned a 40% share of those costs, and the other two companies were assigned 15% and 5% as their allocations. The court entered a judgment in the case on June 19, 2018, in which it indicated that it would not allocate future costs, but would enter a declaratory judgment that the four companies together had responsibility for future costs, in amounts and shares to be determined. Cross-proceedings have been commenced to obtain recoveries from the other parties pursuant to the judgment; those proceedings are stayed pending the appeal referenced below. NCR expects to have claims against BAT and API under the Funding Agreement, discussed above for the Kalamazoo River remediation expenses. API filed for bankruptcy protection in October 2017, and thus payment of its potential share under the Funding Agreement for so-called “future sites,” which would include the Kalamazoo River site, may be at risk, but as liability under the Cost Sharing Agreement and the Funding Agreement is joint and several, the bankruptcy is not anticipated to affect the Company’s ability to seek that amount from BAT. The Company will also have indemnity or reimbursement claims against AT&T and Nokia under the arrangement discussed above in connection with the Fox River matter after expenses have met a contractual threshold set out in the 1996 agreement referenced above in the Fox River discussion. In light of the 2018 decision, the Company increased its reserve for the Kalamazoo River matter during 2018. As of September 30, 2019 , the total reserve for Kalamazoo was $46 million compared to $47 million as of December 31, 2018 ; that figure is reported on a basis that is net of expected contributions from the Company's co-obligors and, if and when the applicable threshold is reached, its indemnitors. As many aspects of the costs of remediation will not be determined for several years (and thus the high end of a range of possible costs for many areas of the site cannot be quantified at this time), the Company has made what it considers to be reasonable estimates of the low end of a range for such costs where remedies are identified, and/or of the costs of investigations and studies for areas of the river where remedies have not yet been determined, and the reserve is informed by those estimates. The extent of NCR’s potential liability remains subject to many uncertainties, particularly inasmuch as remedy decisions and cost estimates will not be generated until times in the future and as most of the work to be performed will not take place until the 2020s and 2030s. Under other assumptions or estimates for possible costs of remediation, which the Company does not at this point consider to be reasonably estimable or verifiable, it is possible that the reserve the Company has taken to discontinued operations reflected in this paragraph could more than approximately double the reflected reserve. In July 2018 the Company appealed to the United States Court of Appeals for the Sixth Circuit both the 2013 court decision, which it believes is in conflict with a decision from the Fox River trial court as to Operable Unit 1 of that site and an affirmance of that decision from the Court of Appeals for the Seventh Circuit, and the 2018 court decision, on various legal grounds. The Company filed a bond to stay any execution of the judgment pending the appeal, and its application for a stay was approved by the court and remains stayed as of September 2019. Ebina The Company is engaged in cooperative regulatory compliance activities with the government of Japan in connection with certain environmental contaminants generated in its past operations in that country. The Company has quantities of PCB and other wastes primarily from its former plant at Oiso, Japan, including capsulated undiluted solutions manufactured in the past, capacitors, light ballasts and PCB-affected soil from the Oiso plant that was excavated and placed in steel drums. These wastes are stored in a facility at Ebina, Japan in accordance with Japanese regulations governing such materials. Over the past several years Japan has enacted and amended legislation governing such wastes, and has set a current deadline for treating and disposing of (at government-constructed disposal facilities) the highest-concentration wastes by 2027. Lower-concentration wastes can be and have been disposed of via private contractors, and as of the period ended September 30, 2019 , NCR had disposed of more than a third of its lower-concentration wastes. The Company and its consultants have met and communicated regularly with the Japanese agency charged with administration of the law, and are working with that agency on a program to manage disposal of the high-concentration wastes, including tests of technologies to make the disposal more efficient. Based on communications with the agency, the earliest that high-concentration wastes can be disposed of will be in the second half of 2020, with final deadlines for various of the government-constructed disposal sites currently set for 2022, 2023 and later. Low-concentration wastes are required to be contracted for disposal by 2027, a timetable that the Company expects to meet. In September 2019, the Company’s environmental consultants, following a series of communications and meetings with the Japanese agency, at the Company’s request prepared an estimate of remaining disposal costs over the coming several years. While the estimate is subject to a range of assumptions and uncertainties, including prospects of cost reduction in coordination with the agency as certain field testing to separate high-concentration and low-concentration waste progresses over the coming years, the Company has adjusted its existing reserve for the matter to take into account this cost estimate, and that reserve as of September 30, 2019 is $19 million compared to $2 million at December 31, 2018 . The Japan environmental waste issue is treated as a compliance matter and not as litigation or enforcement, and the Company has received no threats of litigation or enforcement. Environmental-Related Insurance Recoveries In connection with the Fox River and other environmental sites, through September 30, 2019 , NCR has received a combined gross total of approximately $202 million in settlements reached with various of its insurance carriers. Portions of many of these settlements agreed in the 2010 through 2013 timeframe are payable to a law firm that litigated the claims on the Company's behalf. Some of the settlements cover not only the Fox River but also other environmental sites; some are limited to either the Fox River or the Kalamazoo River site. Some of the settlements are directed to defense costs and some are directed to indemnity; some settlements cover both defense costs and indemnity. The Company does not anticipate that further material insurance recoveries specific to Kalamazoo River remediation costs will be available to it, owing to considerations under applicable Michigan law. Claims with respect to Kalamazoo River defense costs have now been settled, with the amounts of those settlements included in the sum reported above. Environmental Remediation Estimates It is difficult to estimate the future financial impact of environmental laws, including potential liabilities. NCR records environmental provisions when it is probable that a liability has been incurred and the amount or range of the liability is reasonably estimable in accordance with accounting guidance, where liabilities are not expected to be quantifiable or estimable for a period of years, the estimated costs of investigating those liabilities are recorded as a component of the reserve for that particular site. Provisions for estimated losses from environmental restoration and remediation are, depending on the site, based generally on internal and third-party environmental studies, estimates as to the number and participation level of other PRPs, the extent of contamination, estimated amounts for attorney and other fees, and the nature of required clean-up and restoration actions. Reserves are adjusted as further information develops or circumstances change. Management expects that the amounts reserved from time to time will be paid out over the period of investigation, negotiation, remediation and restoration for the applicable sites. The amounts provided for environmental matters in NCR's Condensed Consolidated Financial Statements are the estimated gross undiscounted amounts of such liabilities, without deductions for indemnity insurance, third-party indemnity claims or recoveries from other PRPs, except as qualified in the following sentences. In those cases where insurance carriers or third-party indemnitors have agreed to pay any amounts and management believes that collectability of such amounts is probable, the amounts are recorded in the Condensed Consolidated Financial Statements. For the Fox River and Kalamazoo sites, as described above, assets relating to the AT&T and Nokia indemnities and to the BAT obligations are recorded as payment is supported by contractual agreements, public filings and/or payment history. Guarantees and Product Warranties In the ordinary course of business, NCR may issue performance guarantees on behalf of its subsidiaries to certain of its customers and other parties. Some of those guarantees may be backed by standby letters of credit, surety bonds, or similar instruments. In general, under the guarantees, NCR would be obligated to perform, or cause performance, over the term of the underlying contract in the event of an unexcused, uncured breach by its subsidiary, or some other specified triggering event, in each case as defined by the applicable guarantee. NCR believes the likelihood of having to perform under any such guarantee is remote. As of September 30, 2019 and December 31, 2018 , NCR had no material obligations related to such guarantees, and therefore its Condensed Consolidated Financial Statements do not have any associated liability balance. NCR provides its customers a standard manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. Estimated future obligations due to warranty claims are based upon historical factors, such as labor rates, average repair time, travel time, number of service calls per machine and cost of replacement parts. When a sale is consummated, the total customer revenue is recognized, provided that all revenue recognition criteria are otherwise satisfied, and the associated warranty liability is recorded using pre-established warranty percentages for the respective product classes. From time to time, product design or quality corrections are accomplished through modification programs. When identified, associated costs of labor and parts for such programs are estimated and accrued as part of the warranty reserve. The Company recorded the activity related to the warranty reserve for the nine months ended September 30 as follows: In millions 2019 2018 Warranty reserve liability Beginning balance as of January 1 $ 26 $ 26 Accruals for warranties issued 26 27 Settlements (in cash or in kind) (31 ) (32 ) Ending balance as of September 30 $ 21 $ 21 In addition, NCR provides its customers with certain indemnification rights. In general, NCR agrees to indemnify the customer if a third party asserts patent or other infringement on the part of its customers for its use of the Company’s products subject to certain conditions that are generally standard within the Company’s industries. On limited occasions the Company will undertake additional indemnification obligations for business reasons. From time to time, NCR also enters into agreements in connection with its acquisition and divestiture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is not readily determinable due to the conditional nature of the Company’s potential obligations and the specific facts and circumstances involved with each particular agreement. The Company has not recorded a liability in connection with these indemnifications, and no current indemnification instance is material to the Company’s financial position. Historically, payments made by the Company under these types of agreements have not had a material effect on the Company’s consolidated financial condition, results of operations or cash flows. |
Series A Convertible Preferred
Series A Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2019 | |
Series A Preferred Stock [Abstract] | |
SERIES A CONVERTIBLE PREFERRED STOCK | 11. SERIES A CONVERTIBLE PREFERRED STOCK On December 4, 2015, NCR issued 820,000 shares of Series A Convertible Preferred Stock to certain entities affiliated with the Blackstone Group L.P. (collectively, Blackstone) for an aggregate purchase price of $820 million , or $1,000 per share, pursuant to an Investment Agreement between the Company and Blackstone, dated November 11, 2015. In connection with the issuance of the Series A Convertible Preferred Stock, the Company incurred direct and incremental expenses of $26 million , including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These direct and incremental expenses originally reduced the Series A Convertible Preferred Stock, and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, March 16, 2024. Holders of Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per annum, payable quarterly in arrears. The Series A Convertible Preferred Stock is convertible at the option of the holders at any time into shares of common stock at a conversion price of $30.00 per share, or a conversion rate of 33.333 shares of common stock per share of Series A Convertible Preferred Stock. Under the Investment Agreement, Blackstone agreed not to sell or otherwise transfer its shares of Series A Convertible Preferred Stock (or any shares of common stock issued upon conversion thereof) without the Company’s consent until June 4, 2017. In March 2017, we provided Blackstone with an early release from this lock-up, allowing Blackstone to sell approximately 49% of its shares of Series A Convertible Preferred Stock, and in return, Blackstone agreed to amend the Investment Agreement to extend the lock-up on the remaining 51% of its shares of Series A Convertible Preferred Stock for six months until December 1, 2017. In connection with the early release of the lock-up, Blackstone offered for sale 342,000 shares of Series A Convertible Preferred Stock in an underwritten public offering. In addition, Blackstone converted 90,000 shares of Series A Convertible Preferred Stock into shares of our common stock and we repurchased those shares of common stock for $48.47 per share. The underwritten offering and the stock repurchase were consummated on March 17, 2017. On September 18, 2019, NCR entered into an agreement to repurchase and convert the outstanding 512,221 shares of Series A Convertible Preferred Stock owned by Blackstone. NCR repurchased 237,673 shares of Series A Convertible Preferred Stock for total cash consideration of $302 million . The remaining shares of Blackstone's Series A Convertible Preferred Stock, including accrued dividends, were converted to approximately 9.16 million shares of common stock at a conversion price of $30.00 per share. For the repurchase of Series A Convertible Preferred Stock, the excess of the fair value of consideration transferred over the carrying value was approximately $67 million , and has been included as a deemed dividend in adjusting the income from common stockholders in calculating earnings per share. In this analysis, we determined the fair value of the consideration transferred was not in excess of the fair value of the redeemed Series A Convertible Preferred Stock. As a result, there was no inducement provided to Blackstone for the conversion of the remaining preferred shares into common stock. Refer to Note 12. Earnings per Share, for additional discussion. During the three months ended September 30, 2019 and 2018 , the Company paid dividends-in-kind of $13 million and $11 million , respectively. During the nine months ended September 30, 2019 and 2018 , the Company paid dividends-in-kind of $37 million and $34 million , respectively. As of September 30, 2019 and December 31, 2018 , the Company had accrued dividends of $1 million and $3 million , respectively. There were no cash dividends declared during the three and nine months ended September 30, 2019 or 2018 . As of September 30, 2019 and December 31, 2018 , the maximum number of common shares that could be required to be issued upon conversion of the outstanding shares of Series A Convertible Preferred Stock was 13.1 million and 29.0 million |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE Basic earnings per share (EPS) is calculated by dividing net income or loss attributable to NCR, less any dividends (declared or cumulative undeclared), deemed dividends, accretion or decretion, redemption or induced conversion on our Series A Convertible Preferred Stock, by the weighted average number of shares outstanding during the period. In computing diluted EPS, we adjust the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared), deemed dividends, accretion or decretion, redemption or induced conversion on our Series A Convertible Preferred Stock. We adjust the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares related to the Series A Convertible Preferred Stock and stock-based compensation plans. The holders of Series A Convertible Preferred Stock, unvested restricted stock units and stock options do not have nonforfeitable rights to common stock dividends or common stock dividend equivalents. Accordingly, the Series A Convertible Preferred Stock, unvested restricted stock units and stock options do not qualify as participating securities. See Note 8, Stock Compensation Plans for share information on NCR’s stock compensation plans. The components of basic earnings per share are as follows: In millions, except per share amounts Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Numerator: Income from continuing operations $ 105 $ 85 $ 230 $ (3 ) Dividends on Series A Convertible Preferred Stock (12 ) (12 ) (37 ) (36 ) Deemed dividend on Series A Convertible Preferred Stock redemption (67 ) — (67 ) — Income from continuing operations attributable to NCR common stockholders 26 73 126 (39 ) Loss from discontinued operations, net of tax (15 ) (1 ) (15 ) (38 ) Net income attributable to NCR common stockholders $ 11 $ 72 $ 111 $ (77 ) Denominator: Basic weighted average number of shares outstanding 121.4 118.0 120.3 118.4 Basic earnings per share: From continuing operations $ 0.21 $ 0.62 $ 1.05 $ (0.33 ) From discontinued operations (0.12 ) (0.01 ) (0.13 ) (0.32 ) Total basic earnings per share $ 0.09 $ 0.61 $ 0.92 $ (0.65 ) The components of diluted earnings per share are as follows: In millions, except per share amounts Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Numerator: Income from continuing operations $ 105 $ 85 $ 230 $ (3 ) Dividends on Series A Convertible Preferred Stock (12 ) — (37 ) (36 ) Deemed dividend on Series A Convertible Preferred Stock redemption (67 ) — (67 ) — Income from continuing operations attributable to NCR common stockholders 26 85 126 (39 ) Loss from discontinued operations, net of tax (15 ) (1 ) (15 ) (38 ) Net income attributable to NCR common stockholders $ 11 $ 84 $ 111 $ (77 ) Denominator: Basic weighted average number of shares outstanding 121.4 118.0 120.3 118.4 Dilutive effect of as-if converted Series A Convertible Preferred Stock — 28.4 — — Dilutive effect of restricted stock units and stock options 2.0 2.9 2.4 — Weighted average diluted shares 123.4 149.3 122.7 118.4 Diluted earnings per share: From continuing operations $ 0.21 $ 0.57 $ 1.03 $ (0.33 ) From discontinued operations (0.12 ) (0.01 ) (0.12 ) (0.32 ) Total diluted earnings per share $ 0.09 $ 0.56 $ 0.90 $ (0.65 ) For the three months ended September 30, 2019 , shares related to the as-if converted Series A Convertible Preferred Stock of 28.0 million were excluded from the diluted share count because their effect would have been anti-dilutive. The number of shares of Series A Convertible Preferred Stock that were excluded is inclusive of both existing and redeemed shares. For the three months ended September 30, 2019 , weighted average restricted stock units and stock options of 4.5 million were excluded from the diluted share count because their effect would have been anti-dilutive. For the three months ended September 30, 2018 , it was more dilutive to assume the Series A Convertible Preferred Stock was converted to common stock and therefore the weighted average outstanding shares of common stock were adjusted by the as-if converted Series A Convertible Preferred Stock and diluted earnings per share was calculated excluding the quarterly dividend. For the three months ended September 30, 2018 , weighted average restricted stock units and stock options of 2.9 million were excluded from the diluted share count because their effect would have been anti-dilutive. For the nine months ended September 30, 2019 , shares related to the as-if converted Series A Convertible Preferred Stock of 29.0 million were excluded from the diluted share count because their effect would have been anti-dilutive. The number of shares of Series A Convertible Preferred Stock that were excluded is inclusive of both existing and redeemed shares. For the nine months ended September 30, 2019 , weighted average restricted stock units and stock options of 4.4 million were excluded from the diluted share count because their effect would have been anti-dilutive. For the nine months ended September 30, 2018 , shares related to the as-if converted Series A Convertible Preferred Stock of 28.1 million were excluded from the diluted share count because their effect would have been anti-dilutive. For the nine months ended September 30, 2018 , weighted average restricted stock units and stock options of 6.7 million were excluded from the diluted share count because their effect would have been anti-dilutive. |
Derivatives and Hedging Instrum
Derivatives and Hedging Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING INSTRUMENTS | 13. DERIVATIVES AND HEDGING INSTRUMENTS NCR is exposed to risks associated with changes in foreign currency exchange rates and interest rates. NCR utilizes a variety of measures to monitor and manage these risks, including the use of derivative financial instruments. NCR has exposure to approximately 50 functional currencies. Since a substantial portion of our operations and revenue occur outside the U.S., and in currencies other than the U.S. Dollar, our results can be significantly impacted, both positively and negatively, by changes in foreign currency exchange rates. Foreign Currency Exchange Risk The accounting guidance for derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. The Company designates foreign exchange contracts as cash flow hedges of forecasted transactions when they are determined to be highly effective at inception. Our risk management strategy includes hedging, on behalf of certain subsidiaries, a portion of our forecasted, non-functional currency denominated cash flows for a period of up to 15 months . As a result, some of the impact of currency fluctuations on non-functional currency denominated transactions (and hence on subsidiary operating income, as stated in the functional currency), is mitigated in the near term. The amount we hedge and the duration of hedge contracts may vary significantly. In the longer term (greater than 15 months ), the subsidiaries are still subject to the effect of translating the functional currency results to U.S. Dollars. To manage our exposures and mitigate the impact of currency fluctuations on the operations of our foreign subsidiaries, we hedge our main transactional exposures through the use of foreign exchange forward and option contracts. This is primarily done through the hedging of foreign currency denominated inter-company inventory purchases by NCR’s marketing units and the foreign currency denominated inputs to our manufacturing units. The related foreign exchange contracts are designated as highly effective cash flow hedges. The gains or losses on these hedges are deferred in accumulated other comprehensive income (AOCI) and reclassified to income when the underlying hedged transaction is recorded in earnings. As of September 30, 2019 , the balance in AOCI related to foreign exchange derivative transactions was a gain of $2 million , net of tax. The gains or losses from derivative contracts related to inventory purchases are recorded in cost of products when the inventory is sold to an unrelated third party. We also utilize foreign exchange contracts to hedge our exposure of assets and liabilities denominated in non-functional currencies. We recognize the gains and losses on these types of hedges in earnings as exchange rates change. We do not enter into hedges for speculative purposes. The following tables provide information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets: Fair Values of Derivative Instruments September 30, 2019 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 $ 71 $ 3 Other current liabilities $ 22 $ — Total derivatives designated as hedging instruments $ 3 $ — Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets $ 151 $ 1 Other current liabilities $ 267 $ 1 Total derivatives not designated as hedging instruments $ 1 $ 1 Total derivatives $ 4 $ 1 Fair Values of Derivative Instruments December 31, 2018 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 $ 169 $ 4 Other current liabilities $ — $ — Total derivatives designated as hedging instruments $ 4 $ — Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets $ 219 $ 1 Other current liabilities $ 157 $ 1 Total derivatives not designated as hedging instruments $ 1 $ 1 Total derivatives $ 5 $ 1 The effects of derivative instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2019 and 2018 were as follows: 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 three months ended September 30, 2019 For the three months ended September 30, 2018 Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations For the three months ended September 30, 2019 For the three months ended September 30, 2018 Foreign exchange contracts $ 4 $ 1 Cost of products $ (2 ) $ (2 ) 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, 2019 For the nine months ended September 30, 2018 Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations For the nine months ended September 30, 2019 For the nine months ended September 30, 2018 Foreign exchange contracts $ 5 $ 5 Cost of products $ (5 ) $ (2 ) 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 2019 2018 2019 2018 Foreign exchange contracts Other (expense), net $ (2 ) $ (1 ) $ (11 ) $ (4 ) Refer to Note 14. Fair Value of Assets and Liabilities, for further information on derivative assets and liabilities recorded at fair value on a recurring basis. Concentration of Credit Risk NCR is potentially subject to concentrations of credit risk on accounts receivable and financial instruments such as hedging instruments and cash and cash equivalents. Credit risk includes the risk of nonperformance by counterparties. The maximum potential loss may exceed the amount recognized on the Condensed Consolidated Balance Sheets. Exposure to credit risk is managed through credit approvals, credit limits, selecting major international financial institutions (as counterparties to hedging transactions) and monitoring procedures. NCR’s business often involves large transactions with customers, and if one or more of those customers were to default on its obligations under applicable contractual arrangements, the Company could be exposed to potentially significant losses. However, management believes that the reserves for potential losses are adequate. As of September 30, 2019 , we did no t have any significant concentration of credit risk related to financial instruments. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | 14. FAIR VALUE OF ASSETS AND LIABILITIES Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities recorded at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 are set forth as follows: September 30, 2019 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) $ 7 $ 7 $ — $ — Foreign exchange contracts (2) 4 — 4 — Total $ 11 $ 7 $ 4 $ — Liabilities: Foreign exchange contracts (3) $ 1 $ — $ 1 $ — Total $ 1 $ — $ 1 $ — December 31, 2018 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) $ 8 $ 8 $ — $ — Foreign exchange contracts (2) 5 — 5 — Total $ 13 $ 8 $ 5 $ — Liabilities: Foreign exchange contracts (3) $ 1 $ — $ 1 $ — Total $ 1 $ — $ 1 $ — (1) Included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (2) Included in Other current assets in the Condensed Consolidated Balance Sheets. (3) Included in Other current liabilities in the Condensed Consolidated Balance Sheets. Deposits Held in Money Market Mutual Funds A portion of the Company’s excess cash is held in money market mutual funds that generate interest income based on prevailing market rates. Money market mutual fund holdings are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. Foreign Exchange Contracts As a result of our global operating activities, we are exposed to risks from changes in foreign currency exchange rates, which may adversely affect our financial condition. To manage our exposures and mitigate the impact of currency fluctuations on our financial results, we hedge our primary transactional exposures through the use of foreign exchange forward and option contracts. The foreign exchange contracts are valued using the market approach based on observable market transactions of forward rates and are classified within Level 2 of the valuation hierarchy. Assets Measured at Fair Value on a Non-recurring Basis From time to time, certain assets are measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). NCR reviews the carrying values of investments when events and circumstances warrant and considers all available evidence in evaluating when declines in fair value are other-than-temporary declines. There were no material impairment charges or non-recurring fair value adjustments recorded during the three and nine months ended September 30, 2019. In the three and nine months ended September 30, 2018 , we recorded zero and $183 million , which included a $146 million impairment of goodwill under our previous segment structure assigned to the Hardware reporting unit and a $37 million impairment charge related to long-lived assets held and used in our Hardware operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (AOCI) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) | 15. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) Changes in AOCI by Component 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, 2018 $ (234 ) $ (14 ) $ 2 $ (246 ) Other comprehensive income (loss) before reclassifications (10 ) — 4 (6 ) Amounts reclassified from AOCI — (5 ) (4 ) (9 ) Net current period other comprehensive (loss) income (10 ) (5 ) — (15 ) Balance as of September 30, 2019 $ (244 ) $ (19 ) $ 2 $ (261 ) Reclassifications Out of AOCI For the three months ended September 30, 2019 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 $ — $ — $ (2 ) $ (2 ) Cost of services — (1 ) — (1 ) Total before tax $ — $ (1 ) $ (2 ) $ (3 ) Tax expense 1 Total reclassifications, net of tax $ (2 ) For the three months ended September 30, 2018 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 $ — $ — $ (2 ) $ (2 ) Cost of services — (2 ) — (2 ) Selling, general and administrative expenses — (1 ) — (1 ) Research and development expenses — 1 — 1 Total before tax $ — $ (2 ) $ (2 ) $ (4 ) Tax expense — Total reclassifications, net of tax $ (4 ) For the nine months ended September 30, 2019 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 $ — $ — $ (5 ) $ (5 ) Cost of services (1 ) (3 ) — (4 ) Selling, general and administrative expenses — (2 ) — (2 ) Total before tax $ (1 ) $ (5 ) $ (5 ) $ (11 ) Tax expense 2 Total reclassifications, net of tax $ (9 ) For the nine months ended September 30, 2018 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 $ — $ — $ (2 ) $ (2 ) Cost of services 1 (5 ) — (4 ) Selling, general and administrative expenses — (2 ) — (2 ) Total before tax $ 1 $ (7 ) $ (2 ) $ (8 ) Tax expense 1 Total reclassifications, net of tax $ (7 ) |
Restructuring Plan
Restructuring Plan | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING PLAN | 16. RESTRUCTURING PLAN In the second quarter of 2018, we announced a hardware transformation initiative to streamline our manufacturing operations that will help us reduce our exposure to variable hardware demand as well as increase global utilization rates and optimize our supply chain network. As a part of this initiative, we plan to reduce the number of manufacturing plants and move the manufacturing operations at those plants to other existing NCR facilities and current third party suppliers. As a result of the restructuring plan, the Company recorded a total charge of zero and $9 million in the three months ended September 30, 2019 and 2018 , respectively, and $4 million and $33 million in the nine months ended September 30, 2019 and 2018 , respectively. The restructuring program was substantially completed as of June 30, 2019. The following table summarizes the total charges related to the restructuring plan for the three and nine months ended September 30, 2019 : In millions For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Severance and other employee related costs $ — $ 1 Inventory related charges — 7 Asset related charges — (6 ) Other exit costs — 2 Total charge $ — $ 4 Severance and other employee related costs The Company recorded zero and $1 million of employee related costs in the three and nine months ended September 30, 2019 , respectively, in accordance with ASC 420, Exit or Disposal Cost Obligations. There were no discrete charges in accordance with ASC 712, Employers’ Accounting for Postemployment Benefits recorded in the three and nine months ended September 30, 2019 . Inventory related charges The Company recorded zero and $7 million of inventory related charges for rationalizing its product portfolio and writing down inventory to be sold to third party suppliers to the lower of cost or net realizable value in the three and nine months ended September 30, 2019 , respectively. These costs were included within cost of products in the Condensed Consolidated Statement of Operations. Asset related charges The Company recorded a $6 million gain on the sale of the two plant locations in the nine months ended September 30, 2019 . There were no similar gains recorded during the the three months ended September 30, 2019 . Other exit costs The Company recorded zero and $2 million in the three and nine months ended September 30, 2019 , respectively, for costs primarily related to moving inventory as well as clean-up costs from the plant locations that were closed. These costs were included within cost of products and selling, general, and administrative expenses in the Condensed Consolidated Statement of Operations. The following table summarizes the total charges related to the restructuring plan for the three and nine months ended September 30, 2018 : In millions For the three months ended September 30, 2018 For the nine months ended September 30, 2018 Severance and other employee related costs $ — $ 5 Inventory related charges 7 24 Other exit costs 2 4 Total charge $ 9 $ 33 Severance and other employee related costs During the three months ended September 30, 2018 . the Company recorded a $2 million discrete benefit in accordance with ASC 712, Employers' Accounting for Postemployment Benefits, which resulted in total expense for the the nine months ended September 30, 2018 of $1 million . The Company also recorded $2 million and $4 million of employee related costs in accordance with ASC 712, Employers’ Accounting for Postemployment Benefits , in the three and nine months ended September 30, 2018 , respectively. These costs were included within cost of products in the Condensed Consolidated Statement of Operations. Inventory related charges The Company recorded $7 million and $24 million of inventory related charges for rationalizing its product portfolio and writing down inventory to be sold to third party suppliers to the lower of cost or net realizable value in the three and nine months ended September 30, 2018 , respectively. These costs were included within cost of products in the Condensed Consolidated Statement of Operations. Other exit costs The Company recorded $2 million and $4 million for costs primarily related to moving inventory and fixed assets from the plant locations that will be closed in the three and nine months ended September 30, 2018 , respectively. These costs were included within cost of products and selling, general, and administrative expenses in the Condensed Consolidated Statement of Operations. The results by segment, as disclosed in Note 4, Segment Information and Concentrations , exclude the impact of these costs, which is consistent with the manner by which management assesses the performance and evaluates the results of each segment. The following table summarizes the costs recorded in accordance with ASC 420, Exit or Disposal Cost Obligations, and ASC 712, Employers’ Accounting for Postemployment Benefits, and the remaining liabilities as of September 30, 2019 , which are included in the Condensed Consolidated Balance Sheet in Other Current Liabilities. In millions September 30, 2019 Employee Severance and Other Exit Costs Beginning balance as of January 1 $ 2 Cost recognized during the period 3 Utilization (5 ) Ending balance as of September 30 $ — |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Financial Information [Abstract] | |
SUPPLEMENTAL FINANCIAL INFORMATION | 17. SUPPLEMENTAL FINANCIAL INFORMATION The components of accounts receivable are summarized as follows: In millions September 30, 2019 December 31, 2018 Accounts receivable Trade $ 1,498 $ 1,364 Other 33 23 Accounts receivable, gross 1,531 1,387 Less: allowance for doubtful accounts (44 ) (31 ) Total accounts receivable, net $ 1,487 $ 1,356 The components of inventory are summarized as follows: In millions September 30, 2019 December 31, 2018 Inventories Work in process and raw materials $ 219 $ 237 Finished goods 263 214 Service parts 383 355 Total inventories $ 865 $ 806 |
Condensed Consolidating Supplem
Condensed Consolidating Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Supplemental Guarantor Information [Abstract] | |
CONDENSED CONSOLIDATED SUPPLEMENTAL GUARANTOR INFORMATION | 18. CONDENSED CONSOLIDATING SUPPLEMENTAL GUARANTOR INFORMATION The Company's 5.00% Notes, 5.875% Notes and 6.375% Notes are guaranteed by the Company's subsidiary, NCR International, Inc. (Guarantor Subsidiary), which is 100% owned by the Company and has guaranteed fully and unconditionally the obligations to pay principal and interest for these senior unsecured notes. The guarantees are subject to release under certain circumstances as described below: • the designation of the Guarantor Subsidiary as an unrestricted subsidiary under the indenture governing the notes; • the release of the Guarantor Subsidiary from its guarantee under the Senior Secured Credit Facility; • the release or discharge of the indebtedness that required the guarantee of the notes by the Guarantor Subsidiary; • the permitted sale or other disposition of the Guarantor Subsidiary to a third party; and • the Company's exercise of its legal defeasance option of its covenant defeasance option under the indenture governing the notes. Refer to Note 6, Debt Obligations for additional information. In connection with the previously completed registered exchange offers for the 5.00% Notes, 5.875% Notes and 6.375% Notes, the Company is required to comply with Rule 3-10 of SEC Regulation S-X (Rule 3-10), and has therefore included the accompanying Condensed Consolidating Financial Statements in accordance with Rule 3-10(f) of SEC Regulation S-X. The following supplemental information sets forth, on a consolidating basis, the condensed statements of operations and comprehensive income (loss), the condensed balance sheets and the condensed statements of cash flows for the parent issuer of these senior unsecured notes, for the Guarantor Subsidiary and for the Company and all of its consolidated subsidiaries. Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the three months ended September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 371 $ 4 $ 432 $ (95 ) $ 712 Service revenue 561 2 508 — 1,071 Total revenue 932 6 940 (95 ) 1,783 Cost of products 307 1 342 (95 ) 555 Cost of services 360 1 360 — 721 Selling, general and administrative expenses 170 1 100 — 271 Research and development expenses 27 — 37 — 64 Total operating expenses 864 3 839 (95 ) 1,611 Income (loss) from operations 68 3 101 — 172 Interest expense (51 ) — (2 ) — (53 ) Other (expense) income, net — — (11 ) — (11 ) Income (loss) from continuing operations before income taxes 17 3 88 — 108 Income tax expense (benefit) 59 1 (56 ) — 4 Income (loss) from continuing operations before earnings in subsidiaries (42 ) 2 144 — 104 Equity in earnings of consolidated subsidiaries 134 60 — (194 ) — Income (loss) from continuing operations 92 62 144 (194 ) 104 Income (loss) from discontinued operations, net of tax (2 ) — (13 ) — (15 ) Net income (loss) $ 90 $ 62 $ 131 $ (194 ) $ 89 Net income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Net income (loss) attributable to NCR $ 90 $ 62 $ 132 $ (194 ) $ 90 Total comprehensive income (loss) (53 ) 39 111 (29 ) 68 Less comprehensive income (loss) attributable to noncontrolling interests — — (2 ) — (2 ) Comprehensive income (loss) attributable to NCR common stockholders $ (53 ) $ 39 $ 113 $ (29 ) $ 70 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the three months ended September 30, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 234 $ 7 $ 348 $ (55 ) $ 534 Service revenue 541 9 466 — 1,016 Total revenue 775 16 814 (55 ) 1,550 Cost of products 225 4 299 (55 ) 473 Cost of services 357 4 306 — 667 Selling, general and administrative expenses 132 1 93 — 226 Research and development expenses 40 — 19 — 59 Asset impairment charges 1 — (1 ) — — Total operating expenses 755 9 716 (55 ) 1,425 Income (loss) from operations 20 7 98 — 125 Interest expense (42 ) — (4 ) 3 (43 ) Other (expense) income, net — 2 (9 ) (3 ) (10 ) Income (loss) from continuing operations before income taxes (22 ) 9 85 — 72 Income tax expense (benefit) (80 ) 2 63 — (15 ) Income (loss) from continuing operations before earnings in subsidiaries 58 7 22 — 87 Equity in earnings of consolidated subsidiaries 26 38 — (64 ) — Income (loss) from continuing operations 84 45 22 (64 ) 87 Income (loss) from discontinued operations, net of tax — — (1 ) — (1 ) Net income (loss) $ 84 $ 45 $ 21 $ (64 ) $ 86 Net income (loss) attributable to noncontrolling interests — — 2 — 2 Net income (loss) attributable to NCR $ 84 $ 45 $ 19 $ (64 ) $ 84 Total comprehensive income (loss) 66 40 5 (42 ) 69 Less comprehensive income (loss) attributable to noncontrolling interests — — 3 — 3 Comprehensive income (loss) attributable to NCR common stockholders $ 66 $ 40 $ 2 $ (42 ) $ 66 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the nine months ended September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 988 $ 9 $ 1,141 $ (223 ) $ 1,915 Service revenue 1,636 5 1,473 — 3,114 Total revenue 2,624 14 2,614 (223 ) 5,029 Cost of products 841 2 927 (223 ) 1,547 Cost of services 1,062 3 1,028 — 2,093 Selling, general and administrative expenses 451 1 323 — 775 Research and development expenses 94 — 91 — 185 Total operating expenses 2,448 6 2,369 (223 ) 4,600 Income (loss) from operations 176 8 245 — 429 Interest expense (137 ) — (11 ) 5 (143 ) Other (expense) income, net (20 ) 4 (7 ) (5 ) (28 ) Income (loss) from continuing operations before income taxes 19 12 227 — 258 Income tax expense (benefit) 60 (17 ) (15 ) — 28 Income (loss) from continuing operations before earnings in subsidiaries (41 ) 29 242 — 230 Equity in earnings of consolidated subsidiaries 258 216 — (474 ) — Income (loss) from continuing operations 217 245 242 (474 ) 230 Income (loss) from discontinued operations, net of tax (2 ) — (13 ) — (15 ) Net income (loss) $ 215 $ 245 $ 229 $ (474 ) $ 215 Net income (loss) attributable to noncontrolling interests — — — — — Net income (loss) attributable to NCR $ 215 $ 245 $ 229 $ (474 ) $ 215 Total comprehensive income (loss) 200 224 215 (440 ) 199 Less comprehensive income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income (loss) attributable to NCR common stockholders $ 200 $ 224 $ 216 $ (440 ) $ 200 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the nine months ended September 30, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 769 $ 36 $ 936 $ (156 ) $ 1,585 Service revenue 1,577 25 1,417 — 3,019 Total revenue 2,346 61 2,353 (156 ) 4,604 Cost of products 690 15 795 (156 ) 1,344 Cost of services 1,053 10 964 — 2,027 Selling, general and administrative expenses 426 2 304 — 732 Research and development expenses 115 — 75 — 190 Asset impairment charges 166 — 17 — 183 Total operating expenses 2,450 27 2,155 (156 ) 4,476 Income (loss) from operations (104 ) 34 198 — 128 Interest expense (121 ) — (10 ) 6 (125 ) Other (expense) income, net (15 ) 4 (7 ) (6 ) (24 ) Income (loss) from continuing operations before income taxes (240 ) 38 181 — (21 ) Income tax expense (benefit) (56 ) 6 30 — (20 ) Income (loss) from continuing operations before earnings in subsidiaries (184 ) 32 151 — (1 ) Equity in earnings of consolidated subsidiaries 179 159 — (338 ) — Income (loss) from continuing operations (5 ) 191 151 (338 ) (1 ) Income (loss) from discontinued operations, net of tax (36 ) — (2 ) — (38 ) Net income (loss) $ (41 ) $ 191 $ 149 $ (338 ) $ (39 ) Net income (loss) attributable to noncontrolling interests — — 2 — 2 Net income (loss) attributable to NCR $ (41 ) $ 191 $ 147 $ (338 ) $ (41 ) Total comprehensive income (loss) (85 ) 148 102 (250 ) (85 ) Less comprehensive income (loss) attributable to noncontrolling interests — — — — — Comprehensive income (loss) attributable to NCR common stockholders $ (85 ) $ 148 $ 102 $ (250 ) $ (85 ) Condensed Consolidating Balance Sheet September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 15 $ 2 $ 371 $ — $ 388 Accounts receivable, net 56 1 1,430 — 1,487 Inventories 325 1 539 — 865 Due from affiliates 821 2,085 482 (3,388 ) — Other current assets 152 2 262 — 416 Total current assets 1,369 2,091 3,084 (3,388 ) 3,156 Property, plant and equipment, net 260 — 122 — 382 Goodwill 2,249 — 505 — 2,754 Intangibles, net 498 — 51 — 549 Operating lease assets 256 — 141 — 397 Prepaid pension cost — — 153 — 153 Deferred income taxes 323 3 162 — 488 Investments in subsidiaries 3,563 3,084 — (6,647 ) — Due from affilates 16 1 — (17 ) — Other assets 509 1 62 — 572 Total assets $ 9,043 $ 5,180 $ 4,280 $ (10,052 ) $ 8,451 Liabilities and stockholders’ equity Current liabilities Short-term borrowings $ 8 $ — $ 200 $ — $ 208 Accounts payable 372 — 428 — 800 Payroll and benefits liabilities 142 — 118 — 260 Contract liabilities 262 1 250 — 513 Due to affiliates 2,564 108 716 (3,388 ) — Other current liabilities 214 1 350 — 565 Total current liabilities 3,562 110 2,062 (3,388 ) 2,346 Long-term debt 3,419 — 3 — 3,422 Pension and indemnity plan liabilities 520 — 243 — 763 Postretirement and postemployment benefits liabilities 17 4 100 — 121 Income tax accruals 25 — 70 — 95 Due to affiliates — — 17 (17 ) — Operating lease liabilities 285 — 93 — 378 Other liabilities 100 — 95 — 195 Total liabilities 7,928 114 2,683 (3,405 ) 7,320 Redeemable noncontrolling interest — — 11 — 11 Series A convertible preferred stock 389 — — — 389 Stockholders’ equity Total NCR stockholders’ equity 726 5,066 1,581 (6,647 ) 726 Noncontrolling interests in subsidiaries — — 5 — 5 Total stockholders’ equity 726 5,066 1,586 (6,647 ) 731 Total liabilities and stockholders’ equity $ 9,043 $ 5,180 $ 4,280 $ (10,052 ) $ 8,451 Condensed Consolidating Balance Sheet December 31, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 6 $ 8 450 $ — $ 464 Accounts receivable, net 37 10 1,309 — 1,356 Inventories 288 4 514 — 806 Due from affiliates 708 2,092 457 (3,257 ) — Other current assets 137 47 255 (42 ) 397 Total current assets 1,176 2,161 2,985 (3,299 ) 3,023 Property, plant and equipment, net 245 1 113 — 359 Goodwill 2,168 — 524 — 2,692 Intangibles, net 536 — 59 — 595 Prepaid pension cost — — 140 — 140 Deferred income taxes 317 — 149 (18 ) 448 Investments in subsidiaries 3,244 2,854 — (6,098 ) — Due from affiliates 16 1 35 (52 ) — Other assets 453 4 47 — 504 Total assets $ 8,155 $ 5,021 $ 4,052 $ (9,467 ) $ 7,761 Liabilities and stockholders’ equity Current liabilities Short-term borrowings $ 85 $ — $ 100 $ — $ 185 Accounts payable 397 2 498 — 897 Payroll and benefits liabilities 141 — 97 — 238 Contract liabilities 221 5 235 — 461 Due to affiliates 2,177 143 937 (3,257 ) — Other current liabilities 201 6 336 (42 ) 501 Total current liabilities 3,222 156 2,203 (3,299 ) 2,282 Long-term debt 2,978 — 2 — 2,980 Pension and indemnity plan liabilities 502 — 257 — 759 Postretirement and postemployment benefits liabilities 18 3 97 — 118 Income tax accruals 19 5 67 — 91 Due to affiliates — 36 16 (52 ) — Other liabilities 162 24 91 (18 ) 259 Total liabilities 6,901 224 2,733 (3,369 ) 6,489 Redeemable noncontrolling interest — — 14 — 14 Series A convertible preferred stock 859 — — — 859 Stockholders’ equity Total NCR stockholders’ equity 395 4,797 1,301 (6,098 ) 395 Noncontrolling interests in subsidiaries — — 4 — 4 Total stockholders’ equity 395 4,797 1,305 (6,098 ) 399 Total liabilities and stockholders’ equity $ 8,155 $ 5,021 $ 4,052 $ (9,467 ) $ 7,761 Condensed Consolidating Statement of Cash Flows For the nine months ended September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 142 $ (207 ) $ 292 $ (1 ) $ 226 Investing activities Expenditures for property, plant and equipment (23 ) — (30 ) — (53 ) Proceeds from sales of property, plant and equipment 3 — 8 — 11 Additions to capitalized software (140 ) — (27 ) — (167 ) Proceeds from (payments of) intercompany notes 290 255 35 (580 ) — Investments in equity affiliates — — 98 (98 ) — Business acquisitions, net (86 ) — — — (86 ) Net change in funds held for clients — (2 ) (2 ) Other investing activities, net 5 — — — 5 Net cash provided by (used in) investing activities 49 255 82 (678 ) (292 ) Financing activities Short term borrowings, net 4 — — — 4 Payments on term credit facilities (759 ) — — — (759 ) Payments on revolving credit facilities (1,760 ) — (319 ) — (2,079 ) Borrowings on revolving credit facilities 2,040 — 419 — 2,459 Payments of senior unsecured notes (500 ) — — — (500 ) Borrowings on term credit facility 350 — — — 350 Proceeds from issuance of senior unsecured notes 1,000 — — — 1,000 Repurchase of Common Stock (96 ) (96 ) Debt issuance cost (28 ) — — — (28 ) Repurchase of Series A Preferred Stock (302 ) — — — (302 ) Proceeds from employee stock plans 12 — — — 12 Other financing activities — — (1 ) — (1 ) Equity contribution (84 ) (14 ) — 98 — Dividend distribution to consolidated subsidiaries — — (1 ) 1 — Borrowings (repayments) of intercompany notes — (35 ) (545 ) 580 — Tax withholding payments on behalf of employees (29 ) — — — (29 ) Net change in client funds obligations — — 2 — 2 Net cash provided by (used in) financing activities (152 ) (49 ) (445 ) 679 33 Cash flows from discontinued operations Net cash used in operating activities (26 ) — (1 ) — (27 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (7 ) — (7 ) Increase (decrease) in cash, cash equivalents and restricted cash 13 (1 ) (79 ) — (67 ) Cash, cash equivalents and restricted cash at beginning of period 12 3 461 — 476 Cash, cash equivalents and restricted cash at end of period $ 25 $ 2 $ 382 $ — $ 409 In millions September 30, 2019 Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ 15 $ 2 $ 371 $ — $ 388 Restricted cash included in Other assets 10 — 11 — 21 Total cash, cash equivalents and restricted cash $ 25 $ 2 $ 382 $ — $ 409 Condensed Consolidating Statement of Cash Flows For the nine months ended September 30, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 226 $ (151 ) $ 102 $ (14 ) $ 163 Investing activities Expenditures for property, plant and equipment (85 ) — (19 ) — (104 ) Proceeds from sales of property, plant and equipment 1 — 2 — 3 Additions to capitalized software (111 ) — (19 ) — (130 ) Proceeds from (payments of) intercompany notes 207 145 — (352 ) — Other investing activities, net (4 ) — — — (4 ) Net cash provided by (used in) investing activities 8 145 (36 ) (352 ) (235 ) Financing activities Short term borrowings, net (1 ) — 8 — 7 Borrowings on term credit facilities (51 ) — — — (51 ) Payments on revolving credit facilities (1,055 ) — (378 ) — (1,433 ) Borrowings on revolving credit facilities 1,055 — 553 — 1,608 Repurchase of Common Stock (210 ) — — — (210 ) Proceeds from employee stock plans 16 — — — 16 Dividend distribution to consolidated subsidiaries — — (14 ) 14 — Borrowings (repayments) of intercompany notes — — (352 ) 352 — Tax withholding payments on behalf of employees (30 ) — — — (30 ) Net cash provided by (used in) financing activities (276 ) — (183 ) 366 (93 ) Cash flows from discontinued operations Net cash used in operating activities (23 ) — — — (23 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (12 ) — (12 ) Increase (decrease) in cash, cash equivalents, and restricted cash (65 ) (6 ) (129 ) — (200 ) Cash, cash equivalents and restricted cash at beginning of period 97 11 435 — 543 Cash, cash equivalents and restricted cash at end of period $ 32 $ 5 $ 306 $ — $ 343 In millions September 30, 2018 Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ 31 $ 5 $ 298 $ — $ 334 Restricted cash included in Other assets 1 — 8 — 9 Total cash, cash equivalents and restricted cash $ 32 $ 5 $ 306 $ — $ 343 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying Condensed Consolidated Financial Statements have been prepared by NCR Corporation (NCR, the Company, we or us) without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments, unless otherwise disclosed) necessary for a fair statement of the consolidated results of operations, financial position, and cash flows for each period presented. The consolidated results for the interim periods are not necessarily indicative of results to be expected for the full year. The 2018 year-end Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (GAAP). These financial statements should be read in conjunction with NCR’s Form 10-K for the year ended December 31, 2018 . |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the period reported. Actual results could differ from those estimates. |
Evaluation of Subsequent Events | Evaluation of Subsequent Events The Company evaluated subsequent events through the date that our Condensed Consolidated Financial Statements were issued. No matters were identified that required adjustment of the Condensed Consolidated Financial Statements or additional disclosure other than subsequent events disclosed in the notes to the Condensed Consolidated Financial Statements. |
Reclassifications | Reclassifications Certain prior-period amounts have been reclassified in the accompanying Condensed Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. |
Remaining Performance Obligations | Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders for which products have not been delivered or services have not been performed. As of September 30, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $3.1 billion . The Company expects to recognize revenue on approximately three-quarters of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. The majority of our professional services are expected to be recognized over the next 12 months but this is contingent upon a number of factors, including customers’ needs and schedules. The Company has made two elections that affect the value of remaining performance obligations described above. We do not disclose remaining performance obligations for Software as a Service (SaaS) contracts where variable consideration is directly allocated based on usage or when the original expected length is one year or less. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The impact of adopting this guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the Financial Accounting Standards Board (FASB) issued an accounting standards update with new guidance on fair value measurement disclosure requirements that requires the disclosure of additions to and transfers into and out of Level 3 of the fair value hierarchy. The update also requires disclosure about the uncertainty in measurement as of the reporting date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The impact of adopting this guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued an accounting standards update related to accounting for implementation costs incurred in a cloud computing arrangement that is also a service contract. If a cloud computing arrangement also includes an internal-use software, an intangible asset is recognized and a liability is recognized for any payments related to the software license. However, if a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract and any fees associated with the service are expensed as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The impact of adopting this guidance is not expected to have a material impact on our consolidated financial statements. Adopted In February 2016, the FASB issued a new leasing standard that superseded guidance related to accounting for leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standard is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. We adopted using the modified retrospective approach and applied the provisions of the new leasing standard at the effective date, January 1, 2019, rather than at the beginning of the earliest period presented under the transition method provided. The standard also includes options to elect a number of practical expedients. We elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and also completed the evaluation of the remaining practical expedients available under the guidance. Refer to Note 2, Leasing for additional discussion. The standard had a material effect to the total assets and total liabilities reported on the Condensed Consolidated Balance Sheet, and did not have a material effect to the Condensed Consolidated Statement of Operations or the Condensed Consolidated Statement of Cash Flows. The impact of adoption was to record operating and financing lease assets and liabilities of $448 million and $521 million , respectively, with a reduction of $73 million for deferred rent liabilities and prepaid rent balances as of January 1, 2019. Refer to Note 2, Leasing for additional disclosure. In October 2018, the FASB issued an accounting standards update for hedge accounting guidance that we adopted during the first quarter of 2019. This guidance allows for the use of a broad Treasury repurchase agreement financing rate, which is referred to as the Secured Overnight Financing Rate (SOFR) to be used as an additional benchmark rate for hedge accounting purposes. This guidance is effective for entities that have already adopted the amendments of the hedge accounting guidance for fiscal years beginning after December 15, 2018 on a prospective basis for qualifying new or re-designated hedging relationships entered into |
Lessor | Lessor We have various arrangements for certain point-of-sale equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Net Contract Assets and Contract Liabilities Balances | The following table presents the net contract asset and contract liability balances as of September 30, 2019 and December 31, 2018. In millions Location in the Condensed Consolidated Balance Sheet September 30, 2019 December 31, 2018 Current portion of contract assets Other current assets $ 10 $ 22 Current portion of contract liabilities Contract liabilities $ 513 $ 461 Non-current portion of contract liabilities Other liabilities $ 79 $ 85 |
Leasing (Tables)
Leasing (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Balances | The following table presents our lease balances as of September 30, 2019 : In millions Location in the Condensed Consolidated Balance Sheet September 30, 2019 Assets Operating lease assets Operating lease assets $ 397 Finance lease assets Property, plant and equipment, net 23 Accumulated Amortization of Finance lease assets Property, plant and equipment, net (2 ) Total leased assets $ 418 Liabilities Current Operating lease liabilities Other current liabilities $ 91 Finance lease liabilities Other current liabilities 7 Noncurrent Operating lease liabilities Operating lease liabilities 378 Finance lease liabilities Other liabilities 16 Total lease liabilities $ 492 |
Schedule of Lease Costs, Supplemental Cash Flow Information, Lease Term and Interest Rate | The following table presents the weighted average remaining lease term and interest rates: September 30, 2019 Weighted average lease term: Operating leases 9.1 years Finance leases 3.7 years Weighted average interest rates: Operating leases 6.54 % Finance leases 4.17 % The following table presents our lease costs for operating and finance leases: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease cost $ 32 $ 101 Finance lease cost Amortization of leased assets 2 3 Interest on lease liabilities — — Short-Term lease cost 1 4 Variable lease cost 7 23 Total lease cost $ 42 $ 131 The following table presents the supplemental cash flow information: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34 $ 104 Operating cash flows from finance leases $ — $ — Financing cash flows from finance leases $ — $ — Lease Assets Obtained in Exchange for Lease Obligations Operating Leases $ 9 $ 29 Finance Leases $ 14 $ 23 |
Schedule of Reconciliation of Undiscounted Cash Flows of Operating Lease Liabilities | The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Condensed Consolidated Balance Sheet as of September 30, 2019 : In millions Operating Leases Finance Leases Remainder of 2019 $ 34 $ 2 2020 109 7 2021 84 7 2022 62 6 2023 45 3 Thereafter 307 — Total lease payments 641 25 Less: Amount representing interest (172 ) (2 ) Present value of lease liabilities $ 469 $ 23 |
Schedule of Reconciliation of Undiscounted Cash Flows of Finance Lease Liabilities | The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Condensed Consolidated Balance Sheet as of September 30, 2019 : In millions Operating Leases Finance Leases Remainder of 2019 $ 34 $ 2 2020 109 7 2021 84 7 2022 62 6 2023 45 3 Thereafter 307 — Total lease payments 641 25 Less: Amount representing interest (172 ) (2 ) Present value of lease liabilities $ 469 $ 23 |
Segment Information and Conce_2
Segment Information and Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Operating Income by Segment | The following table presents revenue and operating income by segment: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Revenue by segment Banking $ 942 $ 795 $ 2,568 $ 2,241 Retail 539 483 1,608 1,541 Hospitality 216 193 611 595 Other 86 79 242 227 Consolidated revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 Operating income by segment Banking $ 146 $ 102 $ 370 $ 280 Retail 36 29 102 105 Hospitality 10 15 39 53 Other 10 15 30 36 Subtotal - segment operating income 202 161 541 474 Other adjustments (1) 30 36 112 346 Income from operations $ 172 $ 125 $ 429 $ 128 (1) The following table presents the other adjustments for NCR: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Transformation and restructuring costs $ 7 $ 16 $ 47 $ 98 Asset impairment charges — — — 183 Acquisition-related amortization of intangible assets 22 20 64 64 Acquisition-related costs 1 — 1 1 Total other adjustments $ 30 $ 36 $ 112 $ 346 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The following table presents revenue by geography for NCR: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Americas $ 1,104 $ 898 $ 3,053 $ 2,662 Europe, Middle East and Africa (EMEA) 458 414 1,329 1,240 Asia Pacific (APJ) 221 238 647 702 Total revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 |
Schedule of Revenues from Products and Services | The following tables present revenue from products and services for NCR: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Product revenue $ 712 $ 534 $ 1,915 $ 1,585 Professional services and installation services revenue 273 276 781 803 Recurring revenue, including maintenance, cloud revenue and payments 798 740 2,333 2,216 Total revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Software $ 512 $ 480 $ 1,475 $ 1,410 Services 640 616 1,847 1,827 Hardware 631 454 1,707 1,367 Total revenue $ 1,783 $ 1,550 $ 5,029 $ 4,604 |
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | The carrying amounts of goodwill by segment as of September 30, 2019 and December 31, 2018 are included in the table below. Foreign currency fluctuations are included within other adjustments . December 31, 2018 September 30, 2019 In millions Goodwill Accumulated Impairment Losses Total Additions Impairment Other Goodwill Accumulated Impairment Losses Total Banking $ 1,718 $ (101 ) $ 1,617 $ 54 $ — $ (2 ) $ 1,770 $ (101 ) $ 1,669 Retail 571 (34 ) 537 1 — (1 ) 571 (34 ) 537 Hospitality 385 (23 ) 362 11 — (1 ) 395 (23 ) 372 Other 187 (11 ) 176 — — — 187 (11 ) 176 Total goodwill $ 2,861 $ (169 ) $ 2,692 $ 66 $ — $ (4 ) $ 2,923 $ (169 ) $ 2,754 |
Schedule of Purchased Intangible Assets | NCR’s purchased intangible assets, reported in intangibles, net in the Condensed Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below. Amortization Period (in Years) September 30, 2019 December 31, 2018 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable intangible assets Reseller & customer relationships 1 - 20 $ 732 $ (258 ) $ 726 $ (218 ) Intellectual property 2 - 8 454 (390 ) 443 (373 ) Customer contracts 8 89 (88 ) 89 (87 ) Tradenames 1 - 10 76 (66 ) 75 (60 ) Total identifiable intangible assets $ 1,351 $ (802 ) $ 1,333 $ (738 ) |
Schedule of Aggregate Amortization Expense | The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is: In millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Remainder of 2019 (estimated) Amortization expense $ 22 $ 64 $ 23 For the years ended December 31 (estimated) In millions 2020 2021 2022 2023 2024 Amortization expense $ 71 $ 63 $ 58 $ 55 $ 49 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The following table summarizes the Company's short-term borrowings and long-term debt: September 30, 2019 December 31, 2018 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) $ 3 4.55% $ 84 4.51% Trade Receivables Securitization Facility 200 2.92% 100 3.37% Other (1) 5 5.44% 1 4.92% Total short-term borrowings $ 208 $ 185 Long-Term Debt Senior Secured Credit Facility: Term loan facility (1) $ 347 4.55% $ 675 4.51% Revolving credit facility (1) 400 3.80% 120 4.49% Senior notes: 5.00% Senior Notes due 2022 600 600 4.625% Senior Notes due 2021 — 500 5.875% Senior Notes due 2021 400 400 6.375% Senior Notes due 2023 700 700 5.750% Senior Notes due 2027 500 — 6.125% Senior Notes due 2029 500 — Deferred financing fees (28 ) (18 ) Other (1) 3 0.05% 3 0.59% Total long-term debt $ 3,422 $ 2,980 (1) Interest rates are weighted-average interest rates as of September 30, 2019 and December 31, 2018 . |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for the following periods were: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Restricted stock units $ 25 $ 13 $ 67 $ 50 Stock options 2 1 6 2 Employee stock purchase plan 1 1 3 3 Stock-based compensation expense 28 15 76 55 Tax benefit (5 ) — (12 ) (7 ) Total stock-based compensation expense (net of tax) $ 23 $ 15 $ 64 $ 48 |
Schedule of Valuation Assumptions Used To Estimate Fair Value of Stock Options | he Company granted stock options and the weighted average fair value of option grants was estimated based on the below weighted average assumptions, which was $8.07 and $9.80 for the nine months ended September 30, 2019 and 2018 , respectively. The stock options that were granted for the nine months ended September 30, 2019 and 2018 had a seven year contractual term and will vest over four years. Nine months ended September 30 2019 2018 Dividend yield $ — $ — Risk-free interest rate 2.50 % 2.50 % Expected volatility 34.79 % 34.88 % Expected holding period (years) 3.9 3.8 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | In millions U.S. Pension Benefits International Pension Benefits Total Pension Benefits 2019 2018 2019 2018 2019 2018 Net service cost $ — $ — $ 4 $ 6 $ 4 $ 6 Interest cost 49 46 15 15 64 61 Expected return on plan assets (32 ) (32 ) (23 ) (25 ) (55 ) (57 ) Amortization of prior service cost — — 1 1 1 1 Net periodic benefit cost (income) $ 17 $ 14 $ (3 ) $ (3 ) $ 14 $ 11 Components of net periodic benefit cost (income) of the pension plans for the three months ended September 30 were as follows: In millions U.S. Pension Benefits International Pension Benefits Total Pension Benefits 2019 2018 2019 2018 2019 2018 Net service cost $ — $ — $ 1 $ 2 $ 1 $ 2 Interest cost 16 16 5 4 21 20 Expected return on plan assets (10 ) (10 ) (8 ) (9 ) (18 ) (19 ) Amortization of prior service cost — — 1 1 1 1 Net periodic benefit cost (income) $ 6 $ 6 $ (1 ) $ (2 ) $ 5 $ 4 |
Postretirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The benefit from the postretirement plan for the following periods were: In millions Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Amortization of: Prior service benefit $ (2 ) $ (1 ) $ (4 ) $ (4 ) Actuarial loss 1 — 1 1 Net postretirement benefit $ (1 ) $ (1 ) $ (3 ) $ (3 ) |
Postemployment Retirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The net cost of the postemployment plan for the following periods were: Three months ended September 30 Nine months ended September 30 In millions 2019 2018 2019 2018 Net service cost $ 5 $ 4 $ 24 $ 23 Interest cost — — 2 2 Amortization of: Prior service benefit — (2 ) (2 ) (4 ) Actuarial gain (1 ) — (2 ) — Net benefit cost $ 4 $ 2 $ 22 $ 21 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The Company recorded the activity related to the warranty reserve for the nine months ended September 30 as follows: In millions 2019 2018 Warranty reserve liability Beginning balance as of January 1 $ 26 $ 26 Accruals for warranties issued 26 27 Settlements (in cash or in kind) (31 ) (32 ) Ending balance as of September 30 $ 21 $ 21 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Earnings Per Share | The components of basic earnings per share are as follows: In millions, except per share amounts Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Numerator: Income from continuing operations $ 105 $ 85 $ 230 $ (3 ) Dividends on Series A Convertible Preferred Stock (12 ) (12 ) (37 ) (36 ) Deemed dividend on Series A Convertible Preferred Stock redemption (67 ) — (67 ) — Income from continuing operations attributable to NCR common stockholders 26 73 126 (39 ) Loss from discontinued operations, net of tax (15 ) (1 ) (15 ) (38 ) Net income attributable to NCR common stockholders $ 11 $ 72 $ 111 $ (77 ) Denominator: Basic weighted average number of shares outstanding 121.4 118.0 120.3 118.4 Basic earnings per share: From continuing operations $ 0.21 $ 0.62 $ 1.05 $ (0.33 ) From discontinued operations (0.12 ) (0.01 ) (0.13 ) (0.32 ) Total basic earnings per share $ 0.09 $ 0.61 $ 0.92 $ (0.65 ) The components of diluted earnings per share are as follows: In millions, except per share amounts Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Numerator: Income from continuing operations $ 105 $ 85 $ 230 $ (3 ) Dividends on Series A Convertible Preferred Stock (12 ) — (37 ) (36 ) Deemed dividend on Series A Convertible Preferred Stock redemption (67 ) — (67 ) — Income from continuing operations attributable to NCR common stockholders 26 85 126 (39 ) Loss from discontinued operations, net of tax (15 ) (1 ) (15 ) (38 ) Net income attributable to NCR common stockholders $ 11 $ 84 $ 111 $ (77 ) Denominator: Basic weighted average number of shares outstanding 121.4 118.0 120.3 118.4 Dilutive effect of as-if converted Series A Convertible Preferred Stock — 28.4 — — Dilutive effect of restricted stock units and stock options 2.0 2.9 2.4 — Weighted average diluted shares 123.4 149.3 122.7 118.4 Diluted earnings per share: From continuing operations $ 0.21 $ 0.57 $ 1.03 $ (0.33 ) From discontinued operations (0.12 ) (0.01 ) (0.12 ) (0.32 ) Total diluted earnings per share $ 0.09 $ 0.56 $ 0.90 $ (0.65 ) |
Derivatives and Hedging Instr_2
Derivatives and Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Location and Amounts of Derivative Fair Values in the Condensed Consolidated Balance Sheets | The following tables provide information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets: Fair Values of Derivative Instruments September 30, 2019 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 $ 71 $ 3 Other current liabilities $ 22 $ — Total derivatives designated as hedging instruments $ 3 $ — Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets $ 151 $ 1 Other current liabilities $ 267 $ 1 Total derivatives not designated as hedging instruments $ 1 $ 1 Total derivatives $ 4 $ 1 Fair Values of Derivative Instruments December 31, 2018 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 $ 169 $ 4 Other current liabilities $ — $ — Total derivatives designated as hedging instruments $ 4 $ — Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets $ 219 $ 1 Other current liabilities $ 157 $ 1 Total derivatives not designated as hedging instruments $ 1 $ 1 Total derivatives $ 5 $ 1 |
Schedule Effects of Derivative Instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income | The effects of derivative instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2019 and 2018 were as follows: 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 three months ended September 30, 2019 For the three months ended September 30, 2018 Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations For the three months ended September 30, 2019 For the three months ended September 30, 2018 Foreign exchange contracts $ 4 $ 1 Cost of products $ (2 ) $ (2 ) 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, 2019 For the nine months ended September 30, 2018 Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations For the nine months ended September 30, 2019 For the nine months ended September 30, 2018 Foreign exchange contracts $ 5 $ 5 Cost of products $ (5 ) $ (2 ) 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 2019 2018 2019 2018 Foreign exchange contracts Other (expense), net $ (2 ) $ (1 ) $ (11 ) $ (4 ) |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | Assets and liabilities recorded at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 are set forth as follows: September 30, 2019 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) $ 7 $ 7 $ — $ — Foreign exchange contracts (2) 4 — 4 — Total $ 11 $ 7 $ 4 $ — Liabilities: Foreign exchange contracts (3) $ 1 $ — $ 1 $ — Total $ 1 $ — $ 1 $ — December 31, 2018 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) $ 8 $ 8 $ — $ — Foreign exchange contracts (2) 5 — 5 — Total $ 13 $ 8 $ 5 $ — Liabilities: Foreign exchange contracts (3) $ 1 $ — $ 1 $ — Total $ 1 $ — $ 1 $ — (1) Included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (2) Included in Other current assets in the Condensed Consolidated Balance Sheets. (3) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Changes in AOCI by Component | Changes in AOCI by Component 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, 2018 $ (234 ) $ (14 ) $ 2 $ (246 ) Other comprehensive income (loss) before reclassifications (10 ) — 4 (6 ) Amounts reclassified from AOCI — (5 ) (4 ) (9 ) Net current period other comprehensive (loss) income (10 ) (5 ) — (15 ) Balance as of September 30, 2019 $ (244 ) $ (19 ) $ 2 $ (261 ) |
Reclassification out of AOCI | Reclassifications Out of AOCI For the three months ended September 30, 2019 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 $ — $ — $ (2 ) $ (2 ) Cost of services — (1 ) — (1 ) Total before tax $ — $ (1 ) $ (2 ) $ (3 ) Tax expense 1 Total reclassifications, net of tax $ (2 ) For the three months ended September 30, 2018 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 $ — $ — $ (2 ) $ (2 ) Cost of services — (2 ) — (2 ) Selling, general and administrative expenses — (1 ) — (1 ) Research and development expenses — 1 — 1 Total before tax $ — $ (2 ) $ (2 ) $ (4 ) Tax expense — Total reclassifications, net of tax $ (4 ) For the nine months ended September 30, 2019 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 $ — $ — $ (5 ) $ (5 ) Cost of services (1 ) (3 ) — (4 ) Selling, general and administrative expenses — (2 ) — (2 ) Total before tax $ (1 ) $ (5 ) $ (5 ) $ (11 ) Tax expense 2 Total reclassifications, net of tax $ (9 ) For the nine months ended September 30, 2018 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 $ — $ — $ (2 ) $ (2 ) Cost of services 1 (5 ) — (4 ) Selling, general and administrative expenses — (2 ) — (2 ) Total before tax $ 1 $ (7 ) $ (2 ) $ (8 ) Tax expense 1 Total reclassifications, net of tax $ (7 ) |
Restructuring Plan (Tables)
Restructuring Plan (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Employee Severance and Other Exit Costs | The following table summarizes the costs recorded in accordance with ASC 420, Exit or Disposal Cost Obligations, and ASC 712, Employers’ Accounting for Postemployment Benefits, and the remaining liabilities as of September 30, 2019 , which are included in the Condensed Consolidated Balance Sheet in Other Current Liabilities. In millions September 30, 2019 Employee Severance and Other Exit Costs Beginning balance as of January 1 $ 2 Cost recognized during the period 3 Utilization (5 ) Ending balance as of September 30 $ — |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Financial Information [Abstract] | |
Schedule of Components of Accounts Receivable | The components of accounts receivable are summarized as follows: In millions September 30, 2019 December 31, 2018 Accounts receivable Trade $ 1,498 $ 1,364 Other 33 23 Accounts receivable, gross 1,531 1,387 Less: allowance for doubtful accounts (44 ) (31 ) Total accounts receivable, net $ 1,487 $ 1,356 |
Schedule of Components of Inventory | The components of inventory are summarized as follows: In millions September 30, 2019 December 31, 2018 Inventories Work in process and raw materials $ 219 $ 237 Finished goods 263 214 Service parts 383 355 Total inventories $ 865 $ 806 |
Condensed Consolidating Suppl_2
Condensed Consolidating Supplemental Guarantor Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Supplemental Guarantor Information [Abstract] | |
Schedule of Condensed Consolidating Supplemental Guarantor Information | Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the three months ended September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 371 $ 4 $ 432 $ (95 ) $ 712 Service revenue 561 2 508 — 1,071 Total revenue 932 6 940 (95 ) 1,783 Cost of products 307 1 342 (95 ) 555 Cost of services 360 1 360 — 721 Selling, general and administrative expenses 170 1 100 — 271 Research and development expenses 27 — 37 — 64 Total operating expenses 864 3 839 (95 ) 1,611 Income (loss) from operations 68 3 101 — 172 Interest expense (51 ) — (2 ) — (53 ) Other (expense) income, net — — (11 ) — (11 ) Income (loss) from continuing operations before income taxes 17 3 88 — 108 Income tax expense (benefit) 59 1 (56 ) — 4 Income (loss) from continuing operations before earnings in subsidiaries (42 ) 2 144 — 104 Equity in earnings of consolidated subsidiaries 134 60 — (194 ) — Income (loss) from continuing operations 92 62 144 (194 ) 104 Income (loss) from discontinued operations, net of tax (2 ) — (13 ) — (15 ) Net income (loss) $ 90 $ 62 $ 131 $ (194 ) $ 89 Net income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Net income (loss) attributable to NCR $ 90 $ 62 $ 132 $ (194 ) $ 90 Total comprehensive income (loss) (53 ) 39 111 (29 ) 68 Less comprehensive income (loss) attributable to noncontrolling interests — — (2 ) — (2 ) Comprehensive income (loss) attributable to NCR common stockholders $ (53 ) $ 39 $ 113 $ (29 ) $ 70 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the three months ended September 30, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 234 $ 7 $ 348 $ (55 ) $ 534 Service revenue 541 9 466 — 1,016 Total revenue 775 16 814 (55 ) 1,550 Cost of products 225 4 299 (55 ) 473 Cost of services 357 4 306 — 667 Selling, general and administrative expenses 132 1 93 — 226 Research and development expenses 40 — 19 — 59 Asset impairment charges 1 — (1 ) — — Total operating expenses 755 9 716 (55 ) 1,425 Income (loss) from operations 20 7 98 — 125 Interest expense (42 ) — (4 ) 3 (43 ) Other (expense) income, net — 2 (9 ) (3 ) (10 ) Income (loss) from continuing operations before income taxes (22 ) 9 85 — 72 Income tax expense (benefit) (80 ) 2 63 — (15 ) Income (loss) from continuing operations before earnings in subsidiaries 58 7 22 — 87 Equity in earnings of consolidated subsidiaries 26 38 — (64 ) — Income (loss) from continuing operations 84 45 22 (64 ) 87 Income (loss) from discontinued operations, net of tax — — (1 ) — (1 ) Net income (loss) $ 84 $ 45 $ 21 $ (64 ) $ 86 Net income (loss) attributable to noncontrolling interests — — 2 — 2 Net income (loss) attributable to NCR $ 84 $ 45 $ 19 $ (64 ) $ 84 Total comprehensive income (loss) 66 40 5 (42 ) 69 Less comprehensive income (loss) attributable to noncontrolling interests — — 3 — 3 Comprehensive income (loss) attributable to NCR common stockholders $ 66 $ 40 $ 2 $ (42 ) $ 66 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the nine months ended September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 988 $ 9 $ 1,141 $ (223 ) $ 1,915 Service revenue 1,636 5 1,473 — 3,114 Total revenue 2,624 14 2,614 (223 ) 5,029 Cost of products 841 2 927 (223 ) 1,547 Cost of services 1,062 3 1,028 — 2,093 Selling, general and administrative expenses 451 1 323 — 775 Research and development expenses 94 — 91 — 185 Total operating expenses 2,448 6 2,369 (223 ) 4,600 Income (loss) from operations 176 8 245 — 429 Interest expense (137 ) — (11 ) 5 (143 ) Other (expense) income, net (20 ) 4 (7 ) (5 ) (28 ) Income (loss) from continuing operations before income taxes 19 12 227 — 258 Income tax expense (benefit) 60 (17 ) (15 ) — 28 Income (loss) from continuing operations before earnings in subsidiaries (41 ) 29 242 — 230 Equity in earnings of consolidated subsidiaries 258 216 — (474 ) — Income (loss) from continuing operations 217 245 242 (474 ) 230 Income (loss) from discontinued operations, net of tax (2 ) — (13 ) — (15 ) Net income (loss) $ 215 $ 245 $ 229 $ (474 ) $ 215 Net income (loss) attributable to noncontrolling interests — — — — — Net income (loss) attributable to NCR $ 215 $ 245 $ 229 $ (474 ) $ 215 Total comprehensive income (loss) 200 224 215 (440 ) 199 Less comprehensive income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income (loss) attributable to NCR common stockholders $ 200 $ 224 $ 216 $ (440 ) $ 200 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the nine months ended September 30, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Product revenue $ 769 $ 36 $ 936 $ (156 ) $ 1,585 Service revenue 1,577 25 1,417 — 3,019 Total revenue 2,346 61 2,353 (156 ) 4,604 Cost of products 690 15 795 (156 ) 1,344 Cost of services 1,053 10 964 — 2,027 Selling, general and administrative expenses 426 2 304 — 732 Research and development expenses 115 — 75 — 190 Asset impairment charges 166 — 17 — 183 Total operating expenses 2,450 27 2,155 (156 ) 4,476 Income (loss) from operations (104 ) 34 198 — 128 Interest expense (121 ) — (10 ) 6 (125 ) Other (expense) income, net (15 ) 4 (7 ) (6 ) (24 ) Income (loss) from continuing operations before income taxes (240 ) 38 181 — (21 ) Income tax expense (benefit) (56 ) 6 30 — (20 ) Income (loss) from continuing operations before earnings in subsidiaries (184 ) 32 151 — (1 ) Equity in earnings of consolidated subsidiaries 179 159 — (338 ) — Income (loss) from continuing operations (5 ) 191 151 (338 ) (1 ) Income (loss) from discontinued operations, net of tax (36 ) — (2 ) — (38 ) Net income (loss) $ (41 ) $ 191 $ 149 $ (338 ) $ (39 ) Net income (loss) attributable to noncontrolling interests — — 2 — 2 Net income (loss) attributable to NCR $ (41 ) $ 191 $ 147 $ (338 ) $ (41 ) Total comprehensive income (loss) (85 ) 148 102 (250 ) (85 ) Less comprehensive income (loss) attributable to noncontrolling interests — — — — — Comprehensive income (loss) attributable to NCR common stockholders $ (85 ) $ 148 $ 102 $ (250 ) $ (85 ) Condensed Consolidating Balance Sheet September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 15 $ 2 $ 371 $ — $ 388 Accounts receivable, net 56 1 1,430 — 1,487 Inventories 325 1 539 — 865 Due from affiliates 821 2,085 482 (3,388 ) — Other current assets 152 2 262 — 416 Total current assets 1,369 2,091 3,084 (3,388 ) 3,156 Property, plant and equipment, net 260 — 122 — 382 Goodwill 2,249 — 505 — 2,754 Intangibles, net 498 — 51 — 549 Operating lease assets 256 — 141 — 397 Prepaid pension cost — — 153 — 153 Deferred income taxes 323 3 162 — 488 Investments in subsidiaries 3,563 3,084 — (6,647 ) — Due from affilates 16 1 — (17 ) — Other assets 509 1 62 — 572 Total assets $ 9,043 $ 5,180 $ 4,280 $ (10,052 ) $ 8,451 Liabilities and stockholders’ equity Current liabilities Short-term borrowings $ 8 $ — $ 200 $ — $ 208 Accounts payable 372 — 428 — 800 Payroll and benefits liabilities 142 — 118 — 260 Contract liabilities 262 1 250 — 513 Due to affiliates 2,564 108 716 (3,388 ) — Other current liabilities 214 1 350 — 565 Total current liabilities 3,562 110 2,062 (3,388 ) 2,346 Long-term debt 3,419 — 3 — 3,422 Pension and indemnity plan liabilities 520 — 243 — 763 Postretirement and postemployment benefits liabilities 17 4 100 — 121 Income tax accruals 25 — 70 — 95 Due to affiliates — — 17 (17 ) — Operating lease liabilities 285 — 93 — 378 Other liabilities 100 — 95 — 195 Total liabilities 7,928 114 2,683 (3,405 ) 7,320 Redeemable noncontrolling interest — — 11 — 11 Series A convertible preferred stock 389 — — — 389 Stockholders’ equity Total NCR stockholders’ equity 726 5,066 1,581 (6,647 ) 726 Noncontrolling interests in subsidiaries — — 5 — 5 Total stockholders’ equity 726 5,066 1,586 (6,647 ) 731 Total liabilities and stockholders’ equity $ 9,043 $ 5,180 $ 4,280 $ (10,052 ) $ 8,451 Condensed Consolidating Balance Sheet December 31, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 6 $ 8 450 $ — $ 464 Accounts receivable, net 37 10 1,309 — 1,356 Inventories 288 4 514 — 806 Due from affiliates 708 2,092 457 (3,257 ) — Other current assets 137 47 255 (42 ) 397 Total current assets 1,176 2,161 2,985 (3,299 ) 3,023 Property, plant and equipment, net 245 1 113 — 359 Goodwill 2,168 — 524 — 2,692 Intangibles, net 536 — 59 — 595 Prepaid pension cost — — 140 — 140 Deferred income taxes 317 — 149 (18 ) 448 Investments in subsidiaries 3,244 2,854 — (6,098 ) — Due from affiliates 16 1 35 (52 ) — Other assets 453 4 47 — 504 Total assets $ 8,155 $ 5,021 $ 4,052 $ (9,467 ) $ 7,761 Liabilities and stockholders’ equity Current liabilities Short-term borrowings $ 85 $ — $ 100 $ — $ 185 Accounts payable 397 2 498 — 897 Payroll and benefits liabilities 141 — 97 — 238 Contract liabilities 221 5 235 — 461 Due to affiliates 2,177 143 937 (3,257 ) — Other current liabilities 201 6 336 (42 ) 501 Total current liabilities 3,222 156 2,203 (3,299 ) 2,282 Long-term debt 2,978 — 2 — 2,980 Pension and indemnity plan liabilities 502 — 257 — 759 Postretirement and postemployment benefits liabilities 18 3 97 — 118 Income tax accruals 19 5 67 — 91 Due to affiliates — 36 16 (52 ) — Other liabilities 162 24 91 (18 ) 259 Total liabilities 6,901 224 2,733 (3,369 ) 6,489 Redeemable noncontrolling interest — — 14 — 14 Series A convertible preferred stock 859 — — — 859 Stockholders’ equity Total NCR stockholders’ equity 395 4,797 1,301 (6,098 ) 395 Noncontrolling interests in subsidiaries — — 4 — 4 Total stockholders’ equity 395 4,797 1,305 (6,098 ) 399 Total liabilities and stockholders’ equity $ 8,155 $ 5,021 $ 4,052 $ (9,467 ) $ 7,761 Condensed Consolidating Statement of Cash Flows For the nine months ended September 30, 2019 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 142 $ (207 ) $ 292 $ (1 ) $ 226 Investing activities Expenditures for property, plant and equipment (23 ) — (30 ) — (53 ) Proceeds from sales of property, plant and equipment 3 — 8 — 11 Additions to capitalized software (140 ) — (27 ) — (167 ) Proceeds from (payments of) intercompany notes 290 255 35 (580 ) — Investments in equity affiliates — — 98 (98 ) — Business acquisitions, net (86 ) — — — (86 ) Net change in funds held for clients — (2 ) (2 ) Other investing activities, net 5 — — — 5 Net cash provided by (used in) investing activities 49 255 82 (678 ) (292 ) Financing activities Short term borrowings, net 4 — — — 4 Payments on term credit facilities (759 ) — — — (759 ) Payments on revolving credit facilities (1,760 ) — (319 ) — (2,079 ) Borrowings on revolving credit facilities 2,040 — 419 — 2,459 Payments of senior unsecured notes (500 ) — — — (500 ) Borrowings on term credit facility 350 — — — 350 Proceeds from issuance of senior unsecured notes 1,000 — — — 1,000 Repurchase of Common Stock (96 ) (96 ) Debt issuance cost (28 ) — — — (28 ) Repurchase of Series A Preferred Stock (302 ) — — — (302 ) Proceeds from employee stock plans 12 — — — 12 Other financing activities — — (1 ) — (1 ) Equity contribution (84 ) (14 ) — 98 — Dividend distribution to consolidated subsidiaries — — (1 ) 1 — Borrowings (repayments) of intercompany notes — (35 ) (545 ) 580 — Tax withholding payments on behalf of employees (29 ) — — — (29 ) Net change in client funds obligations — — 2 — 2 Net cash provided by (used in) financing activities (152 ) (49 ) (445 ) 679 33 Cash flows from discontinued operations Net cash used in operating activities (26 ) — (1 ) — (27 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (7 ) — (7 ) Increase (decrease) in cash, cash equivalents and restricted cash 13 (1 ) (79 ) — (67 ) Cash, cash equivalents and restricted cash at beginning of period 12 3 461 — 476 Cash, cash equivalents and restricted cash at end of period $ 25 $ 2 $ 382 $ — $ 409 In millions September 30, 2019 Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ 15 $ 2 $ 371 $ — $ 388 Restricted cash included in Other assets 10 — 11 — 21 Total cash, cash equivalents and restricted cash $ 25 $ 2 $ 382 $ — $ 409 Condensed Consolidating Statement of Cash Flows For the nine months ended September 30, 2018 In millions Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 226 $ (151 ) $ 102 $ (14 ) $ 163 Investing activities Expenditures for property, plant and equipment (85 ) — (19 ) — (104 ) Proceeds from sales of property, plant and equipment 1 — 2 — 3 Additions to capitalized software (111 ) — (19 ) — (130 ) Proceeds from (payments of) intercompany notes 207 145 — (352 ) — Other investing activities, net (4 ) — — — (4 ) Net cash provided by (used in) investing activities 8 145 (36 ) (352 ) (235 ) Financing activities Short term borrowings, net (1 ) — 8 — 7 Borrowings on term credit facilities (51 ) — — — (51 ) Payments on revolving credit facilities (1,055 ) — (378 ) — (1,433 ) Borrowings on revolving credit facilities 1,055 — 553 — 1,608 Repurchase of Common Stock (210 ) — — — (210 ) Proceeds from employee stock plans 16 — — — 16 Dividend distribution to consolidated subsidiaries — — (14 ) 14 — Borrowings (repayments) of intercompany notes — — (352 ) 352 — Tax withholding payments on behalf of employees (30 ) — — — (30 ) Net cash provided by (used in) financing activities (276 ) — (183 ) 366 (93 ) Cash flows from discontinued operations Net cash used in operating activities (23 ) — — — (23 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (12 ) — (12 ) Increase (decrease) in cash, cash equivalents, and restricted cash (65 ) (6 ) (129 ) — (200 ) Cash, cash equivalents and restricted cash at beginning of period 97 11 435 — 543 Cash, cash equivalents and restricted cash at end of period $ 32 $ 5 $ 306 $ — $ 343 In millions September 30, 2018 Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows Parent Issuer Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ 31 $ 5 $ 298 $ — $ 334 Restricted cash included in Other assets 1 — 8 — 9 Total cash, cash equivalents and restricted cash $ 32 $ 5 $ 306 $ — $ 343 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) R$ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Jun. 30, 2019BRL (R$) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Banco Bradesco SA | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related party | $ 21 | $ 18 | $ 43 | $ 25 | ||
Banco Bradesco SA | ||||||
Related Party Transaction [Line Items] | ||||||
Receivables outstanding from related party | $ 15 | $ 15 | ||||
NCR Manaus [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of voting equity interest sold | 49.00% | 49.00% | ||||
NCR Manaus [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Business Combination, Consideration Transferred | R$ 11 | $ 3 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Current portion of contract assets | $ 10 | $ 22 |
Current portion of contract liabilities | 513 | 461 |
Non-current portion of contract liabilities | 79 | $ 85 |
Revenue recognized that was included in contract liabilities | 320 | |
Remaining performance obligations | $ 3,100 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
ASU 2016-02 Transition [Abstract] | |||
Operating lease assets | $ 397 | $ 0 | |
Present value of lease liabilities | $ 469 | ||
Accounting Standards Update 2016-02 [Member] | |||
ASU 2016-02 Transition [Abstract] | |||
Operating lease assets | $ 448 | ||
Present value of lease liabilities | 521 | ||
Deferred rent liabilities | $ 73 |
Leasing - Lease Balances (Detai
Leasing - Lease Balances (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease assets | $ 397 | $ 0 |
Finance lease assets | 23 | |
Accumulated Amortization of Finance lease assets | (2) | |
Total leased assets | 418 | |
Liabilities | ||
Operating lease liabilities, current | 91 | |
Finance lease liabilities, current | 7 | |
Operating lease liabilities, noncurrent | 378 | $ 0 |
Finance lease liabilities, noncurrent | 16 | |
Total lease liabilities | $ 492 |
Leasing - Lease Costs (Details)
Leasing - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 32 | $ 101 |
Finance lease cost | ||
Amortization of leased assets | 2 | 3 |
Interest on lease liabilities | 0 | 0 |
Short-Term lease cost | 1 | 4 |
Variable lease cost | 7 | 23 |
Total lease cost | $ 42 | $ 131 |
Leasing - Supplemental Cash Flo
Leasing - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 34 | $ 104 |
Operating cash flows from finance leases | 0 | 0 |
Financing cash flows from finance leases | 0 | 0 |
Lease Assets Obtained in Exchange for Lease Obligations | ||
Operating Leases | 9 | 29 |
Finance Leases | $ 14 | $ 23 |
Leasing - Present Value of Leas
Leasing - Present Value of Lease Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 34 |
2020 | 109 |
2021 | 84 |
2022 | 62 |
2023 | 45 |
Thereafter | 307 |
Total lease payments | 641 |
Less: Amount representing interest | (172) |
Present value of lease liabilities | 469 |
Finance Leases | |
2019 | 2 |
2020 | 7 |
2021 | 7 |
2023 | 6 |
2024 | 3 |
Thereafter | 0 |
Total lease payments | 25 |
Less: Amount representing interest | (2) |
Present value of lease liabilities | $ 23 |
Leasing - Narrative (Details)
Leasing - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Prior to Adoption of New Lease Accounting Standard | ||
Future minimum payments under non-cancelable operating leases due in 2019 | $ 128 | |
Future minimum payments under non-cancelable operating leases due in 2020 | 96 | |
Future minimum payments under non-cancelable operating leases due in 2021 | 80 | |
Future minimum payments under non-cancelable operating leases due in 2022 | 64 | |
Future minimum payments under non-cancelable operating leases due in 2023 | $ 50 | |
Europe | ||
Lessee, Lease, Description [Line Items] | ||
Amount of additional operating leases not yet commenced | $ 67 | |
Term of additional operating leases not yet commenced | 10 years |
Leasing - Weighted Average Rema
Leasing - Weighted Average Remaining Lease Term and Interest Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted average lease term, operating leases | 9 years 1 month 6 days |
Weighted average lease term, finance leases | 3 years 8 months 12 days |
Weighted average interest rate, operating leases | 6.54% |
Weighted average interest rate, finance leases | 4.17% |
Business Combinations and Div_2
Business Combinations and Divestitures Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 2,754 | $ 2,692 |
D3 Technology [Member] | ||
Business Acquisition [Line Items] | ||
Cash acquired | 9 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 6 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 20 | |
Goodwill | 54 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (8) | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 84 |
Business Combinations and Div_3
Business Combinations and Divestitures Details (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Business Acquisition [Line Items] | |
Business Combination, Contingent Consideration, Liability, Current | $ 1 |
Business Acquisition, Transaction Costs | 1 |
D3 Technology [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 84 |
Payments to Acquire Businesses, Gross | $ 83 |
Business Combinations and Div_4
Business Combinations and Divestitures Intangible assets acquired (Details) - D3 Technology [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 7 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 2 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Patented Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 11 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Total acquired intangible assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 20 |
Segment Information and Conce_3
Segment Information and Concentrations - Revenue and Operating Income By Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,783 | $ 1,550 | $ 5,029 | $ 4,604 |
Asset Impairment Charges | 0 | 0 | 0 | 183 |
Income (loss) from operations | 172 | 125 | 429 | 128 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,783 | 1,550 | 5,029 | 4,604 |
Segment operating income | 202 | 161 | 541 | 474 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Transformation and restructuring costs | 7 | 16 | 47 | 98 |
Asset Impairment Charges | 0 | 0 | 0 | 183 |
Acquisition-related amortization of intangible assets | 22 | 20 | 64 | 64 |
Acquisition Related Costs Included In Other Adjustments | 1 | 0 | 1 | 1 |
Other adjustments | 30 | 36 | 112 | 346 |
Banking | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 942 | 795 | 2,568 | 2,241 |
Segment operating income | 146 | 102 | 370 | 280 |
Retail | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 539 | 483 | 1,608 | 1,541 |
Segment operating income | 36 | 29 | 102 | 105 |
Hospitality | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 216 | 193 | 611 | 595 |
Segment operating income | 10 | 15 | 39 | 53 |
Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 86 | 79 | 242 | 227 |
Segment operating income | $ 10 | $ 15 | $ 30 | $ 36 |
Segment Information and Conce_4
Segment Information and Concentrations - Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 1,783 | $ 1,550 | $ 5,029 | $ 4,604 |
Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 1,104 | 898 | 3,053 | 2,662 |
Europe, Middle East and Africa (EMEA) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 458 | 414 | 1,329 | 1,240 |
Asia Pacific (APJ) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 221 | $ 238 | $ 647 | $ 702 |
Segment Information and Conce_5
Segment Information and Concentrations - Revenue by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 1,783 | $ 1,550 | $ 5,029 | $ 4,604 |
Product revenue | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 712 | 534 | 1,915 | 1,585 |
Professional services and installation services revenue | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 273 | 276 | 781 | 803 |
Recurring revenue, including maintenance, cloud revenue and payments | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 798 | 740 | 2,333 | 2,216 |
Software | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 512 | 480 | 1,475 | 1,410 |
Services | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 640 | 616 | 1,847 | 1,827 |
Hardware | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 631 | $ 454 | $ 1,707 | $ 1,367 |
Goodwill and Long-Lived Asset_2
Goodwill and Long-Lived Assets - Goodwill by Segments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 2,861 |
Accumulated Impairment Losses | (169) |
Total | 2,692 |
Additions | 66 |
Impairment | 0 |
Other | (4) |
Goodwill | 2,923 |
Accumulated Impairment Losses | (169) |
Total | 2,754 |
Banking | |
Goodwill [Roll Forward] | |
Goodwill | 1,718 |
Accumulated Impairment Losses | (101) |
Total | 1,617 |
Additions | 54 |
Impairment | 0 |
Other | (2) |
Goodwill | 1,770 |
Accumulated Impairment Losses | (101) |
Total | 1,669 |
Retail | |
Goodwill [Roll Forward] | |
Goodwill | 571 |
Accumulated Impairment Losses | (34) |
Total | 537 |
Additions | 1 |
Impairment | 0 |
Other | (1) |
Goodwill | 571 |
Accumulated Impairment Losses | (34) |
Total | 537 |
Hospitality | |
Goodwill [Roll Forward] | |
Goodwill | 385 |
Accumulated Impairment Losses | (23) |
Total | 362 |
Additions | 11 |
Impairment | 0 |
Other | (1) |
Goodwill | 395 |
Accumulated Impairment Losses | (23) |
Total | 372 |
Other | |
Goodwill [Roll Forward] | |
Goodwill | 187 |
Accumulated Impairment Losses | (11) |
Total | 176 |
Additions | 0 |
Impairment | 0 |
Other | 0 |
Goodwill | 187 |
Accumulated Impairment Losses | (11) |
Total | $ 176 |
Goodwill and Long-Lived Asset_3
Goodwill and Long-Lived Assets - Purchased Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 1,351 | $ 1,333 |
Finite-Lived Intangible Assets, Accumulated Amortization | 802 | 738 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 732 | 726 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 258 | 218 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 454 | 443 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 390 | 373 |
Intellectual Property [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Intellectual Property [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 8 years | |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 8 years | |
Finite-Lived Intangible Assets, Gross | $ 89 | 89 |
Finite-Lived Intangible Assets, Accumulated Amortization | 88 | 87 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 76 | 75 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 66 | $ 60 |
Trade Names [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Trade Names [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Goodwill and Long-Lived Asset_4
Goodwill and Long-Lived Assets - Amortization Expense (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense three months ended 2019 | $ 22 | $ 64 |
Amortization expense remainder of 2019 (estimated) | 23 | 23 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | 71 | 71 |
2021 | 63 | 63 |
2022 | 58 | 58 |
2023 | 55 | 55 |
2024 | $ 49 | $ 49 |
Debt Obligations - Short-term B
Debt Obligations - Short-term Borrowings and Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Aug. 21, 2019 | Dec. 31, 2018 | Dec. 19, 2013 | Dec. 18, 2012 | Sep. 17, 2012 |
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 208 | $ 185 | ||||
Long-term debt | 3,422 | 2,980 | ||||
Unamortized Debt Issuance Expense | (28) | (18) | ||||
Term loan facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 347 | $ 675 | ||||
Weighted-average interest rate on long-term debt | 4.55% | 4.51% | ||||
Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 400 | $ 120 | ||||
Weighted-average interest rate on long-term debt | 3.80% | 4.49% | ||||
5.00% Senior Notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 600 | $ 600 | ||||
Debt stated interest rate | 5.00% | 5.00% | 5.00% | |||
4.625% Senior Notes due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | $ 500 | ||||
Debt stated interest rate | 4.625% | 4.625% | 4.625% | |||
5.875% Senior Notes due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 400 | $ 400 | ||||
Debt stated interest rate | 5.875% | 5.875% | 5.875% | |||
6.375% Senior Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 700 | $ 700 | ||||
Debt stated interest rate | 6.375% | 6.375% | 6.375% | |||
5.750% Senior Notes due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 500 | $ 0 | ||||
Debt stated interest rate | 5.75% | 5.75% | ||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 3 | $ 3 | ||||
Weighted-average interest rate on long-term debt | 0.05% | 0.59% | ||||
6.125% Senior Notes due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 500 | $ 0 | ||||
Debt stated interest rate | 6.125% | 6.125% | ||||
Term loan facility | ||||||
Debt Instrument [Line Items] | ||||||
Current portion of Senior Secured Credit Facility | $ 3 | $ 84 | ||||
Weighted-Average interest rate on short-term borrowings | 4.55% | 4.51% | ||||
Trade Receivables Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 200 | $ 100 | ||||
Weighted-Average interest rate on short-term borrowings | 2.92% | 3.37% | ||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 5 | $ 1 | ||||
Weighted-Average interest rate on short-term borrowings | 5.44% | 4.92% |
Debt Obligations - Senior Secur
Debt Obligations - Senior Secured Credit Facility (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($)Rate | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Quarterly Payment of Term Loan Principal Amount | 0.25% | |
Long-term debt | $ 3,422,000,000 | $ 2,980,000,000 |
Letters of credit outstanding | 0 | |
Deferred financing fees written off | $ 5,000,000 | |
Increase in Maximum Permitted Leverage Ratio due to Material Acquisitions | 0.25 | |
Available additional amount of incremental term loan commitment | $ 150,000,000 | |
Period One | ||
Debt Instrument [Line Items] | ||
Debt consolidated leverage ratio | 4.25 | |
Debt maximum spread on consolidated leverage ratio | 0.50 | |
Period Two | ||
Debt Instrument [Line Items] | ||
Debt consolidated leverage ratio | 1 | |
Period Three | ||
Debt Instrument [Line Items] | ||
Debt consolidated leverage ratio | 4 | |
Debt maximum spread on consolidated leverage ratio | 0.50 | |
Period Four | ||
Debt Instrument [Line Items] | ||
Debt consolidated leverage ratio | 1 | |
Period Five | ||
Debt Instrument [Line Items] | ||
Debt consolidated leverage ratio | 4.50 | |
Term loan facility | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt basis spread on variable rate | 1.50% | |
Term loan facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt basis spread on variable rate | Rate | 2.50% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument Covenant Interest Coverage Ratio | 4.75 | |
Debt maximum consolidated leverage ratio | 4.75 | |
Secured Debt | Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Debt basis spread on variable rate | 0.50% | |
Secured Debt | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt basis spread on variable rate | 1.00% | |
Secured Debt | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Debt margin for base rate loans | 1.25% | |
Secured Debt | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Debt margin for base rate loans | 2.25% | |
Secured Debt | EURIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Debt margin for base rate loans | 0.25% | |
Secured Debt | EURIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Debt margin for base rate loans | 1.25% | |
Revolving [Member] | Secured Debt | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility principal amount | $ 1,100,000,000 | |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Total Term Loan Balance Outstanding | 350,000,000 | |
Long-term debt | 347,000,000 | 675,000,000 |
Secured Credit Facility Additional Debt to be Drawn | 400,000,000 | |
Debt Issuance Cost Incurred | 15,000,000 | |
Term loan facility | Secured Debt | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility principal amount | 750,000,000 | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 400,000,000 | $ 120,000,000 |
Revolving Foreign | Secured Debt | ||
Debt Instrument [Line Items] | ||
Secured revolving credit facility principal amount | $ 400,000,000 | |
Secured Debt | Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Debt basis spread on variable rate | 0.50% |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Notes (Details) - USD ($) | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 07, 2019 | Aug. 21, 2019 | Dec. 31, 2018 | Dec. 19, 2013 | Dec. 18, 2012 | Sep. 17, 2012 | |
Debt Instrument [Line Items] | |||||||
Write off of Deferred Debt Issuance Cost | $ 1,000,000 | ||||||
5.00% Senior Notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 600,000,000 | ||||||
Debt stated interest rate | 5.00% | 5.00% | 5.00% | ||||
Debt percentage of principle amount notes were sold at | 100.00% | ||||||
4.625% Senior Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 500,000,000 | ||||||
Debt stated interest rate | 4.625% | 4.625% | 4.625% | ||||
Debt percentage of principle amount notes were sold at | 100.00% | ||||||
5.875% Senior Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 400,000,000 | ||||||
Debt stated interest rate | 5.875% | 5.875% | 5.875% | ||||
Debt percentage of principle amount notes were sold at | 100.00% | ||||||
6.375% Senior Notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 700,000,000 | ||||||
Debt stated interest rate | 6.375% | 6.375% | 6.375% | ||||
Debt percentage of principle amount notes were sold at | 100.00% | ||||||
5.750% Senior Notes due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 500,000,000 | ||||||
Debt stated interest rate | 5.75% | 5.75% | |||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 100.00% | ||||||
Debt percentage of principle amount notes were sold at | 100.00% | ||||||
6.125% Senior Notes due 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt stated interest rate | 6.125% | 6.125% | |||||
Unsecured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Issuance Cost Incurred | $ 15,000,000 | ||||||
Twelve month period commencing on September 1, 2022 [Member] | 5.750% Senior Notes due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 102.875% | ||||||
Twelve month period commencing on September 1, 2023 [Member] | 5.750% Senior Notes due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 101.438% | ||||||
Twelve month period commencing on September 1, 2024 [Member] | 5.750% Senior Notes due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 100.00% | ||||||
Twelve month period commencing on September 1, 2024 [Member] | 6.125% Senior Notes due 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 103.063% | ||||||
Twelve Month Period Commencing September 1, 2025 [Member] | 6.125% Senior Notes due 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 102.042% | ||||||
Twelve month period commencing on September 1, 2026 [Member] | 6.125% Senior Notes due 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 101.021% | ||||||
Twelve month period commencing on September 1, 2027 [Member] | 6.125% Senior Notes due 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Redemption Price As Percentage of Principle Amount | 100.00% |
Debt Obligations - Trade Receiv
Debt Obligations - Trade Receivables Securitization Facility (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Nov. 30, 2014 | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Trade receivables securitization facility, maximum borrowing base | $ 200 | ||
Trade receivables securitization facility, collateral at period end | $ 645 | $ 526 | |
Term of revolving trade receivable securitization facility | 2 years | ||
Federal Funds Rate | Secured Debt | |||
Debt Instrument [Line Items] | |||
Debt basis spread on variable rate | 0.50% |
Debt Obligations - Fair Value o
Debt Obligations - Fair Value of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Debt value of long-term debt | $ 3,730 | $ 3,110 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ 4 | $ (15) | $ 28 | $ (20) |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 25 | 25 | ||
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Reasonable possible decrease in unrecognized tax benefits | 10 | 10 | ||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Reasonable possible decrease in unrecognized tax benefits | $ 17 | $ 17 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units | $ 25 | $ 13 | $ 67 | $ 50 |
Stock options | 2 | 1 | 6 | 2 |
Employee stock purchase plan | 1 | 1 | 3 | 3 |
Stock-based compensation expense | 28 | 15 | 76 | 55 |
Tax benefit | (5) | 0 | (12) | (7) |
Total stock-based compensation expense (net of tax) | $ 23 | $ 15 | $ 64 | $ 48 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value of stock options (in dollars per share) | $ 8.07 | $ 9.80 | ||
Contractual term of stock options granted | 7 years | |||
Unrecognized compensation cost related to unvested awards | $ 28 | $ 28 | ||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate period of U.S. Treasury yield | 3 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate period of U.S. Treasury yield | 5 years | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discount stock purchase price percentage | 15.00% | |||
Look-back feature period of discount stock purchase price | 3 months | |||
Minimum contribution by participant percentage | 1.00% | 1.00% | ||
Maximum contribution by participant percentage | 10.00% | 10.00% | ||
Stocks purchased by employees during the period (in shares) | 0.2 | 0.2 | ||
Discounted price per share of stocks purchased by employees (in dollar per share) | $ 26.44 | $ 25.59 | ||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock options grated | 4 years | |||
Weighted average period to recognized compensation cost related to unvested awards | 1 year 7 months 6 days | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to unvested awards | $ 101 | $ 101 | ||
Weighted average period to recognized compensation cost related to unvested awards | 10 months 24 days |
Stock Compensation Plans - Valu
Stock Compensation Plans - Valuation Assumptions Used for Stock Options (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.50% | 2.50% |
Expected volatility | 34.79% | 34.88% |
Expected holding period (years) | 3 years 10 months 24 days | 3 years 9 months 18 days |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
U.S. Pension Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 16 | 16 | 49 | 46 |
Expected return on plan assets | (10) | (10) | (32) | (32) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | ||
Net periodic benefit cost (income) | 6 | 6 | 17 | 14 |
International Pension Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net service cost | 1 | 2 | 4 | 6 |
Interest cost | 5 | 4 | 15 | 15 |
Expected return on plan assets | (8) | (9) | (23) | (25) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 1 | 1 | ||
Net periodic benefit cost (income) | (1) | (2) | (3) | (3) |
Total Pension Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Net service cost | 1 | 2 | 4 | 6 |
Interest cost | 21 | 20 | 64 | 61 |
Expected return on plan assets | (18) | (19) | (55) | (57) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 1 | 1 | ||
Net periodic benefit cost (income) | $ 5 | $ 4 | $ 14 | $ 11 |
Employee Benefit Plans - Postre
Employee Benefit Plans - Postretirement Plan (Details) - Postretirement Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service benefit | $ (2) | $ (1) | $ (4) | $ (4) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (1) | 0 | (1) | (1) |
Net periodic benefit cost (income) | $ (1) | $ (1) | $ (3) | $ (3) |
Employee Benefit Plans - Postem
Employee Benefit Plans - Postemployment Plan (Details) - Postemployment Retirement Benefits [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net service cost | $ 5 | $ 4 | $ 24 | $ 23 |
Interest cost | 0 | 0 | 2 | 2 |
Amortization of prior service benefit | 0 | (2) | (2) | (4) |
Amortization of actuarial gain | (1) | 0 | (2) | 0 |
Net benefit cost | $ 4 | $ 2 | $ 22 | $ 21 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets contributions by employer | $ 6 | $ 17 |
Additional estimated contributions by employer during fiscal year | 11 | 11 |
Total estimated contributions by employer during fiscal year | 28 | 28 |
Postretirement Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets contributions by employer | 0 | 1 |
Additional estimated contributions by employer during fiscal year | 1 | 1 |
Total estimated contributions by employer during fiscal year | 2 | 2 |
Postemployment Retirement Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Plan assets contributions by employer | 6 | 28 |
Additional estimated contributions by employer during fiscal year | 2 | 2 |
Total estimated contributions by employer during fiscal year | $ 30 | $ 30 |
Commitments and Contingencies -
Commitments and Contingencies - Loss Contingencies (Details) R$ in Millions, $ in Millions | Mar. 29, 2018USD ($)company | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)defendantentitypartynumber_of_companiesaffiliate_corporationsfacility | Dec. 31, 2018BRL (R$) | Aug. 22, 2017party | Dec. 31, 2013company | Nov. 13, 2007entity |
Ebina [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency accrual | $ 2 | $ 19 | |||||
Fox River | |||||||
Loss Contingencies [Line Items] | |||||||
Number of potentially responsible parties | entity | 8 | 8 | |||||
Number of previously owned carbonless copy paper manufacturing facilities | facility | 2 | ||||||
Threshold amount for environmental cleanup costs | $ 75 | ||||||
Percentage of funding obligation under cost sharing agreement | 50.00% | ||||||
Percentage of obligation under cost sharing agreement | 60.00% | ||||||
Receivable under funding agreement | 45 | $ 49 | |||||
Number of defendants | defendant | 2 | ||||||
Number of parties | party | 2 | ||||||
Gross loss contingency accrual | 21 | $ 13 | |||||
Net loss contingency accrual | 17 | 10 | |||||
Total amount received from settlements with insurance carriers | $ 202 | ||||||
Kalamazoo River | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, value of damages sought | $ 105 | ||||||
Number of additional companies receiving general notice letters | number_of_companies | 3 | ||||||
Number of additional defendants | defendant | 2 | ||||||
Number of total corporation plaintiffs | affiliate_corporations | 3 | ||||||
Number of companies tried to the court | company | 4 | ||||||
Costs incurred in the pasted related to loss contingency | 50 | ||||||
Loss contingency, value of damages sought | $ 55 | ||||||
NCR share of costs related to loss contingency | 40.00% | ||||||
GP share of costs related to loss contingency | 40.00% | ||||||
Number of companies assigned to share costs of loss contingency | company | 2 | ||||||
Loss contingency accrual | 47 | $ 46 | |||||
Fox River LLC | Fox River | |||||||
Loss Contingencies [Line Items] | |||||||
Funding remainder | 0 | $ 0 | |||||
Glatfelter | Fox River | |||||||
Loss Contingencies [Line Items] | |||||||
Number of parties that appealed | party | 1 | ||||||
Company One | Kalamazoo River | |||||||
Loss Contingencies [Line Items] | |||||||
NCR share of costs related to loss contingency | 15.00% | ||||||
Company Two | Kalamazoo River | |||||||
Loss Contingencies [Line Items] | |||||||
NCR share of costs related to loss contingency | 5.00% | ||||||
Fox River | |||||||
Loss Contingencies [Line Items] | |||||||
Percentage of portion of costs below threshold | 45.00% | ||||||
Percentage of portion of costs exceeding threshold | 40.00% | ||||||
Fox River | General Contractor Arbitration [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, range of possible loss | $ 10 | ||||||
Minimum | Fox River | General Contractor Arbitration [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, range of possible loss | $ 46 | ||||||
Percentage of Company's award responsibility to indemnitors and co-obligators | 25.00% | ||||||
Maximum | Fox River | General Contractor Arbitration [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, range of possible loss | $ 53 | ||||||
Foreign Tax Authority | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, value of damages sought | $ 43 | R$ 168 | |||||
BCG Matter [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, value of damages sought | $ 80 |
Commitments and Contingencies_2
Commitments and Contingencies - Warranty Reserve (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance as of January 1 | $ 26 | $ 26 |
Accruals for warranties issued | 26 | 27 |
Settlements (in cash or in kind) | (31) | (32) |
Ending balance as of June 30 | $ 21 | $ 21 |
Series A Convertible Preferre_2
Series A Convertible Preferred Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 18, 2019 | Dec. 31, 2018 | Mar. 17, 2017 | Dec. 04, 2015 | |
Class of Stock [Line Items] | ||||||||
Series A convertible preferred stock, issued (in shares) | 300,000 | 300,000 | 800,000 | |||||
Deemed Dividend on Preferred Stock Redemption | $ 67,000,000 | $ 0 | $ 67,000,000 | $ 0 | ||||
Secondary offering by the preferred shareholders | 342,000 | |||||||
Redeemed Shares of Preferred Stock | 90,000 | |||||||
Repurchase price per share of common stock upon conversion | $ 48.47 | |||||||
Series A Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Series A convertible preferred stock, issued (in shares) | 820,000 | |||||||
Aggregate purchase price of preferred shares | $ 820,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ 1,000 | |||||||
Direct issuance expenses | $ 26,000,000 | |||||||
Dividend rate | 5.50% | |||||||
Dividends, preferred stock, paid-in-kind | 13,000,000 | $ 11,000,000 | 37,000,000 | 34,000,000 | ||||
Accrued dividends | $ 1,000,000 | 1,000,000 | $ 3,000,000 | |||||
Payments of Dividends | $ 0 | $ 0 | ||||||
Conversion price per share at option of holder (in dollars per share) | $ 30 | |||||||
Conversion rate per preferred share (in shares) | 33.333 | |||||||
Redeemed Shares of Preferred Stock | 512,221 | |||||||
Blackstone Shares Converted into Common Shares | 237,673 | |||||||
Cash Paid for the Redemption of Preferred Stock | $ 302,000,000 | |||||||
Preferred Shares Converted into Common Stock in Redemption | 9,160,000 | |||||||
Financial instruments subject to redemption, settlement terms, maximum number of shares (in shares) | 13,100,000 | 13,100,000 | 29,000,000 | |||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Shares Converted into Common Stock in Redemption | 9,000,000 |
Earnings Per Share - Basic Earn
Earnings Per Share - Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||||
Income (loss) from continuing operations | $ 105 | $ 85 | $ 230 | $ (3) |
Preferred Stock Dividends Income Statement Impact Included in Diluted Earnings Per Share From Continuing Operations | 12 | 0 | 37 | |
Dividends on convertible preferred stock | (79) | (12) | (104) | (36) |
Deemed Dividend on Preferred Stock Redemption | (67) | 0 | (67) | 0 |
Income from continuing operations attributable to NCR common stockholders | 26 | 73 | 126 | (39) |
Loss from discontinued operations, net of tax | (15) | (1) | (15) | (38) |
Net income (loss) attributable to NCR common stockholders | $ 11 | $ 72 | $ 111 | $ (77) |
Denominator | ||||
Weighted average outstanding shares of common stock (in shares) | 121.4 | 118 | 120.3 | 118.4 |
Basic earnings per share: | ||||
From continuing operations (in dollars per share) | $ 0.21 | $ 0.62 | $ 1.05 | $ (0.33) |
From discontinued operations (in dollars per share) | (0.12) | (0.01) | (0.13) | (0.32) |
Total basic earnings (loss) per share (in dollars per share) | $ 0.09 | $ 0.61 | $ 0.92 | $ (0.65) |
Earnings Per Share - Diluted Ea
Earnings Per Share - Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||||
Income (loss) from continuing operations | $ 105 | $ 85 | $ 230 | $ (3) |
Preferred Stock Dividends Income Statement Impact Included in Diluted Earnings Per Share From Continuing Operations | 12 | 0 | 37 | |
Preferred Stock Dividends, Income Statement Impact | 79 | 12 | 104 | 36 |
Deemed Dividend on Preferred Stock Redemption | (67) | 0 | (67) | 0 |
Income from continuing operations attributable to NCR common stockholders | 26 | 85 | 126 | (39) |
Loss from discontinued operations, net of tax | (15) | (1) | (15) | (38) |
Net income attributable to NCR common stockholders | $ 11 | $ 84 | $ 111 | $ (77) |
Weighted average outstanding shares of common stock (in shares) | 121.4 | 118 | 120.3 | 118.4 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 0 | 28.4 | 0 | 0 |
Dilutive effect of restricted stock units (in shares) | 2 | 2.9 | 2.4 | 0 |
Denominator (in shares) | 123.4 | 149.3 | 122.7 | 118.4 |
Diluted earnings per share: | ||||
From continuing operations (in dollars per share) | $ 0.21 | $ 0.57 | $ 1.03 | $ (0.33) |
From discontinued operations (in dollars per share) | (0.12) | (0.01) | (0.12) | (0.32) |
Total diluted earnings (loss) per share (in dollars per share) | $ 0.09 | $ 0.56 | $ 0.90 | $ (0.65) |
Series A Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from diluted per share count (in shares) | 28 | 29 | 28.1 | |
Restricted Stock Units (RSUs) and Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from diluted per share count (in shares) | 4.5 | 2.9 | 4.4 | 6.7 |
Derivatives and Hedging Instr_3
Derivatives and Hedging Instruments - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)currency | |
Derivative [Line Items] | |
Number of functional currencies | currency | 50 |
Maximum period for cash flow hedging activity | 15 months |
Foreign exchange contracts | |
Derivative [Line Items] | |
Gain in AOCI related to foreign exchange derivative transactions, net of tax | $ | $ 2 |
Derivatives and Hedging Instr_4
Derivatives and Hedging Instruments - Derivative Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 4 | $ 5 |
Derivative Liabilities, Fair Value | 1 | 1 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 3 | 4 |
Derivative Liabilities, Fair Value | 0 | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 71 | 169 |
Derivative Assets, Fair Value | 3 | 4 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 22 | |
Derivative Liabilities, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 1 | 1 |
Derivative Liabilities, Fair Value | 1 | 1 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 151 | 219 |
Derivative Assets, Fair Value | 1 | 1 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 267 | 157 |
Derivative Liabilities, Fair Value | $ 1 | $ 1 |
Derivatives and Hedging Instr_5
Derivatives and Hedging Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative | $ 4 | $ 1 | $ 5 | $ 5 |
Foreign exchange contracts | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative | 4 | 1 | 5 | 5 |
Foreign exchange contracts | Cash Flow Hedging | Cost of products | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative | $ (2) | $ (2) | $ (5) | $ (2) |
Derivatives and Hedging Instr_6
Derivatives and Hedging Instruments - Gain (Loss) on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Foreign exchange contracts | Other (expense), net | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations | $ (2) | $ (1) | $ (11) | $ (4) |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 7 | $ 8 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 7 | 8 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 4 | 5 |
Assets, Fair Value Disclosure | 4 | 5 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1 | 1 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1 | 1 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 7 | 8 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 4 | 5 |
Assets, Fair Value Disclosure | 11 | 13 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1 | 1 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 1 | $ 1 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities Assets Measured at Fair Value on a Non-recurring basis (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset Impairment Charges | $ 0 | $ 0 | $ 0 | $ 183 |
Hardware [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset Impairment Charges | 37 | |||
Goodwill and Intangible Asset Impairment | $ 146 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (AOCI) - Changes in AOCI by Component (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2018 | $ (246) |
Other comprehensive income (loss) before reclassifications | (6) |
Amounts reclassified from AOCI | (9) |
Net current period other comprehensive (loss) income | (15) |
Balance as of June 30, 2019 | (261) |
Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2018 | (234) |
Other comprehensive income (loss) before reclassifications | (10) |
Amounts reclassified from AOCI | 0 |
Net current period other comprehensive (loss) income | (10) |
Balance as of June 30, 2019 | (244) |
Changes in Employee Benefit Plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2018 | (14) |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from AOCI | (5) |
Net current period other comprehensive (loss) income | (5) |
Balance as of June 30, 2019 | (19) |
Changes in Fair Value of Effective Cash Flow Hedges | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2018 | 2 |
Other comprehensive income (loss) before reclassifications | 4 |
Amounts reclassified from AOCI | (4) |
Net current period other comprehensive (loss) income | 0 |
Balance as of June 30, 2019 | $ 2 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (AOCI) - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Selling, General and Administrative Expense | $ (271) | $ (226) | $ (775) | $ (732) |
Research and development expenses | (64) | (59) | (185) | (190) |
Income (loss) from continuing operations | 104 | 87 | 230 | (1) |
Income tax expense | (4) | 15 | (28) | 20 |
Net income (loss) attributable to NCR common stockholders | 11 | 72 | 111 | (77) |
Product | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (555) | (473) | (1,547) | (1,344) |
Service [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (721) | (667) | (2,093) | (2,027) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Selling, General and Administrative Expense | (1) | (2) | (2) | |
Research and development expenses | 1 | |||
Income (loss) from continuing operations | (3) | (4) | (11) | (8) |
Income tax expense | 1 | 0 | 2 | 1 |
Net income (loss) attributable to NCR common stockholders | (2) | (4) | (9) | (7) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Product | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (2) | (2) | (5) | (2) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Service [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (1) | (2) | (4) | (4) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Effective Cash Flow Hedge Loss (Gain) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Selling, General and Administrative Expense | 0 | 0 | 0 | |
Research and development expenses | 0 | |||
Income (loss) from continuing operations | 0 | 0 | (1) | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Effective Cash Flow Hedge Loss (Gain) | Product | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | 0 | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Effective Cash Flow Hedge Loss (Gain) | Service [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | 0 | 0 | (1) | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Prior Service Benefit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Selling, General and Administrative Expense | (1) | (2) | (2) | |
Research and development expenses | 1 | |||
Income (loss) from continuing operations | (1) | (2) | (5) | (7) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Prior Service Benefit | Product | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | 0 | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Prior Service Benefit | Service [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (1) | (2) | (3) | (5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Changes in Fair Value of Effective Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Selling, General and Administrative Expense | 0 | 0 | ||
Research and development expenses | 0 | |||
Income (loss) from continuing operations | (2) | (2) | (5) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Changes in Fair Value of Effective Cash Flow Hedges | Product | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (2) | (2) | (5) | (2) |
Selling, General and Administrative Expense | 0 | |||
Income (loss) from continuing operations | (2) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Changes in Fair Value of Effective Cash Flow Hedges | Service [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Plan - Narrative
Restructuring Plan - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | $ 0 | $ 9 | $ 4 | $ 33 |
Severance and other employee related charges [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other asset-related charges | 0 | 0 | 1 | 5 |
Severance and other employee related charges [Member] | Employee-related costs in accordance with ASC 420 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other asset-related charges | 2 | 4 | ||
Severance and other employee related charges [Member] | Severance charge under ASC 712 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other asset-related charges | 0 | 2 | 1 | |
Asset Related Charges [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other asset-related charges | 0 | 6 | ||
Other exit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other asset-related charges | 0 | 2 | 2 | 4 |
Cost of Products [Member] | inventory related charges [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other asset-related charges | $ 0 | $ 7 | $ 7 | $ 24 |
Restructuring Plan - Employee S
Restructuring Plan - Employee Severance and Other Exit Costs (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance as of January 1 | $ 2 |
Cost recognized during the period | 3 |
Utilization | (5) |
Ending balance as of June 30 | $ 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Components of Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Accounts receivable, gross | $ 1,531 | $ 1,387 |
Less: allowance for doubtful accounts | (44) | (31) |
Total accounts receivable, net | 1,487 | 1,356 |
Trade | ||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Accounts receivable, gross | 1,498 | 1,364 |
Other | ||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Accounts receivable, gross | $ 33 | $ 23 |
Supplemental Financial Inform_4
Supplemental Financial Information - Components of Inventory (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Work in process and raw materials | $ 219 | $ 237 |
Finished goods | 263 | 214 |
Service parts | 383 | 355 |
Total inventories | $ 865 | $ 806 |
Condensed Consolidating Suppl_3
Condensed Consolidating Supplemental Guarantor Information - Narrative (Details) | 9 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Dec. 19, 2013 | Sep. 17, 2012 | |
5.00% Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt stated interest rate | 5.00% | 5.00% | 5.00% | |
5.875% Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt stated interest rate | 5.875% | 5.875% | 5.875% | |
6.375% Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt stated interest rate | 6.375% | 6.375% | 6.375% | |
Guarantor Subsidiary | NCR International, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ownership percentage on guarantor subsidiary | 100.00% | |||
Guarantor Subsidiary | NCR International, Inc. | 5.00% Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt stated interest rate | 5.00% | |||
Guarantor Subsidiary | NCR International, Inc. | 5.875% Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt stated interest rate | 5.875% | |||
Guarantor Subsidiary | NCR International, Inc. | 6.375% Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt stated interest rate | 6.375% |
Condensed Consolidating Suppl_4
Condensed Consolidating Supplemental Guarantor Information - Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenue | $ 1,783,000,000 | $ 1,550,000,000 | $ 5,029,000,000 | $ 4,604,000,000 |
Selling, general and administrative expenses | 271,000,000 | 226,000,000 | 775,000,000 | 732,000,000 |
Research and development expenses | 64,000,000 | 59,000,000 | 185,000,000 | 190,000,000 |
Asset Impairment Charges | 0 | 0 | 0 | (183,000,000) |
Total operating expenses | 1,611,000,000 | 1,425,000,000 | 4,600,000,000 | 4,476,000,000 |
Income (loss) from operations | 172,000,000 | 125,000,000 | 429,000,000 | 128,000,000 |
Interest expense | (53,000,000) | (43,000,000) | (143,000,000) | (125,000,000) |
Other expense, net | (11,000,000) | (10,000,000) | (28,000,000) | (24,000,000) |
Income (loss) from continuing operations before income taxes | 108,000,000 | 72,000,000 | 258,000,000 | (21,000,000) |
Income tax expense (benefit) | 4,000,000 | (15,000,000) | 28,000,000 | (20,000,000) |
Income (loss) from continuing operations before earnings in subsidiaries | 104,000,000 | 87,000,000 | 230,000,000 | (1,000,000) |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 104,000,000 | 87,000,000 | 230,000,000 | (1,000,000) |
Income (loss) from discontinued operations, net of tax | (15,000,000) | (1,000,000) | (15,000,000) | (38,000,000) |
Net income (loss) | 89,000,000 | 86,000,000 | 215,000,000 | (39,000,000) |
Net income (loss) attributable to noncontrolling interests | (1,000,000) | 2,000,000 | 0 | 2,000,000 |
Net income (loss) attributable to NCR | 90,000,000 | 84,000,000 | 215,000,000 | (41,000,000) |
Total comprehensive income (loss) | 68,000,000 | 69,000,000 | 199,000,000 | (85,000,000) |
Less comprehensive income (loss) attributable to noncontrolling interests | (2,000,000) | 3,000,000 | (1,000,000) | 0 |
Comprehensive income (loss) attributable to NCR | 70,000,000 | 66,000,000 | 200,000,000 | (85,000,000) |
Product | ||||
Total revenue | 712,000,000 | 534,000,000 | 1,915,000,000 | 1,585,000,000 |
Cost of revenue | 555,000,000 | 473,000,000 | 1,547,000,000 | 1,344,000,000 |
Services | ||||
Total revenue | 1,071,000,000 | 1,016,000,000 | 3,114,000,000 | 3,019,000,000 |
Cost of revenue | 721,000,000 | 667,000,000 | 2,093,000,000 | 2,027,000,000 |
Eliminations | ||||
Total revenue | (95,000,000) | (55,000,000) | (223,000,000) | (156,000,000) |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 | 0 |
Asset Impairment Charges | 0 | 0 | ||
Total operating expenses | (95,000,000) | (55,000,000) | (223,000,000) | (156,000,000) |
Income (loss) from operations | 0 | 0 | 0 | 0 |
Interest expense | 0 | 3,000,000 | 5,000,000 | 6,000,000 |
Other expense, net | 0 | (3,000,000) | (5,000,000) | (6,000,000) |
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before earnings in subsidiaries | 0 | 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | (194,000,000) | (64,000,000) | (474,000,000) | (338,000,000) |
Income (loss) from continuing operations | (194,000,000) | (64,000,000) | (474,000,000) | (338,000,000) |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (194,000,000) | (64,000,000) | (474,000,000) | (338,000,000) |
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to NCR | (194,000,000) | (64,000,000) | (474,000,000) | (338,000,000) |
Total comprehensive income (loss) | (29,000,000) | (42,000,000) | (440,000,000) | (250,000,000) |
Less comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to NCR | (29,000,000) | (42,000,000) | (440,000,000) | (250,000,000) |
Eliminations | Product | ||||
Total revenue | (95,000,000) | (55,000,000) | (223,000,000) | (156,000,000) |
Cost of revenue | (95,000,000) | (55,000,000) | (223,000,000) | (156,000,000) |
Eliminations | Services | ||||
Total revenue | 0 | 0 | 0 | 0 |
Cost of revenue | 0 | 0 | 0 | 0 |
Parent Issuer | ||||
Total revenue | 932,000,000 | 775,000,000 | 2,624,000,000 | 2,346,000,000 |
Selling, general and administrative expenses | 170,000,000 | 132,000,000 | 451,000,000 | 426,000,000 |
Research and development expenses | 27,000,000 | 40,000,000 | 94,000,000 | 115,000,000 |
Asset Impairment Charges | (1,000,000) | (166,000,000) | ||
Total operating expenses | 864,000,000 | 755,000,000 | 2,448,000,000 | 2,450,000,000 |
Income (loss) from operations | 68,000,000 | 20,000,000 | 176,000,000 | (104,000,000) |
Interest expense | (51,000,000) | (42,000,000) | (137,000,000) | (121,000,000) |
Other expense, net | 0 | 0 | (20,000,000) | (15,000,000) |
Income (loss) from continuing operations before income taxes | 17,000,000 | (22,000,000) | 19,000,000 | (240,000,000) |
Income tax expense (benefit) | 59,000,000 | (80,000,000) | 60,000,000 | (56,000,000) |
Income (loss) from continuing operations before earnings in subsidiaries | (42,000,000) | 58,000,000 | (41,000,000) | (184,000,000) |
Equity in earnings of consolidated subsidiaries | 134,000,000 | 26,000,000 | 258,000,000 | 179,000,000 |
Income (loss) from continuing operations | 92,000,000 | 84,000,000 | 217,000,000 | (5,000,000) |
Income (loss) from discontinued operations, net of tax | (2,000,000) | 0 | (2,000,000) | (36,000,000) |
Net income (loss) | 90,000,000 | 84,000,000 | 215,000,000 | (41,000,000) |
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to NCR | 90,000,000 | 84,000,000 | 215,000,000 | (41,000,000) |
Total comprehensive income (loss) | (53,000,000) | 66,000,000 | 200,000,000 | (85,000,000) |
Less comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to NCR | (53,000,000) | 66,000,000 | 200,000,000 | (85,000,000) |
Parent Issuer | Product | ||||
Total revenue | 371,000,000 | 234,000,000 | 988,000,000 | 769,000,000 |
Cost of revenue | 307,000,000 | 225,000,000 | 841,000,000 | 690,000,000 |
Parent Issuer | Services | ||||
Total revenue | 561,000,000 | 541,000,000 | 1,636,000,000 | 1,577,000,000 |
Cost of revenue | 360,000,000 | 357,000,000 | 1,062,000,000 | 1,053,000,000 |
Guarantor Subsidiary | ||||
Total revenue | 6,000,000 | 16,000,000 | 14,000,000 | 61,000,000 |
Selling, general and administrative expenses | 1,000,000 | 1,000,000 | 1,000,000 | 2,000,000 |
Research and development expenses | 0 | 0 | 0 | 0 |
Asset Impairment Charges | 0 | 0 | ||
Total operating expenses | 3,000,000 | 9,000,000 | 6,000,000 | 27,000,000 |
Income (loss) from operations | 3,000,000 | 7,000,000 | 8,000,000 | 34,000,000 |
Interest expense | 0 | 0 | 0 | 0 |
Other expense, net | 0 | 2,000,000 | 4,000,000 | 4,000,000 |
Income (loss) from continuing operations before income taxes | 3,000,000 | 9,000,000 | 12,000,000 | 38,000,000 |
Income tax expense (benefit) | 1,000,000 | 2,000,000 | (17,000,000) | 6,000,000 |
Income (loss) from continuing operations before earnings in subsidiaries | 2,000,000 | 7,000,000 | 29,000,000 | 32,000,000 |
Equity in earnings of consolidated subsidiaries | 60,000,000 | 38,000,000 | 216,000,000 | 159,000,000 |
Income (loss) from continuing operations | 62,000,000 | 45,000,000 | 245,000,000 | 191,000,000 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | 62,000,000 | 45,000,000 | 245,000,000 | 191,000,000 |
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to NCR | 62,000,000 | 45,000,000 | 245,000,000 | 191,000,000 |
Total comprehensive income (loss) | 39,000,000 | 40,000,000 | 224,000,000 | 148,000,000 |
Less comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to NCR | 39,000,000 | 40,000,000 | 224,000,000 | 148,000,000 |
Guarantor Subsidiary | Product | ||||
Total revenue | 4,000,000 | 7,000,000 | 9,000,000 | 36,000,000 |
Cost of revenue | 1,000,000 | 4,000,000 | 2,000,000 | 15,000,000 |
Guarantor Subsidiary | Services | ||||
Total revenue | 2,000,000 | 9,000,000 | 5,000,000 | 25,000,000 |
Cost of revenue | 1,000,000 | 4,000,000 | 3,000,000 | 10,000,000 |
Non-Guarantor Subsidiaries | ||||
Total revenue | 940,000,000 | 814,000,000 | 2,614,000,000 | 2,353,000,000 |
Selling, general and administrative expenses | 100,000,000 | 93,000,000 | 323,000,000 | 304,000,000 |
Research and development expenses | 37,000,000 | 19,000,000 | 91,000,000 | 75,000,000 |
Asset Impairment Charges | (1,000,000) | (17,000,000) | ||
Total operating expenses | 839,000,000 | 716,000,000 | 2,369,000,000 | 2,155,000,000 |
Income (loss) from operations | 101,000,000 | 98,000,000 | 245,000,000 | 198,000,000 |
Interest expense | (2,000,000) | (4,000,000) | (11,000,000) | (10,000,000) |
Other expense, net | (11,000,000) | (9,000,000) | (7,000,000) | (7,000,000) |
Income (loss) from continuing operations before income taxes | 88,000,000 | 85,000,000 | 227,000,000 | 181,000,000 |
Income tax expense (benefit) | (56,000,000) | 63,000,000 | (15,000,000) | 30,000,000 |
Income (loss) from continuing operations before earnings in subsidiaries | 144,000,000 | 22,000,000 | 242,000,000 | 151,000,000 |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 144,000,000 | 22,000,000 | 242,000,000 | 151,000,000 |
Income (loss) from discontinued operations, net of tax | (13,000,000) | (1,000,000) | (13,000,000) | (2,000,000) |
Net income (loss) | 131,000,000 | 21,000,000 | 229,000,000 | 149,000,000 |
Net income (loss) attributable to noncontrolling interests | (1,000,000) | 2,000,000 | 0 | 2,000,000 |
Net income (loss) attributable to NCR | 132,000,000 | 19,000,000 | 229,000,000 | 147,000,000 |
Total comprehensive income (loss) | 111,000,000 | 5,000,000 | 215,000,000 | 102,000,000 |
Less comprehensive income (loss) attributable to noncontrolling interests | (2,000,000) | 3,000,000 | (1,000,000) | 0 |
Comprehensive income (loss) attributable to NCR | 113,000,000 | 2,000,000 | 216,000,000 | 102,000,000 |
Non-Guarantor Subsidiaries | Product | ||||
Total revenue | 432,000,000 | 348,000,000 | 1,141,000,000 | 936,000,000 |
Cost of revenue | 342,000,000 | 299,000,000 | 927,000,000 | 795,000,000 |
Non-Guarantor Subsidiaries | Services | ||||
Total revenue | 508,000,000 | 466,000,000 | 1,473,000,000 | 1,417,000,000 |
Cost of revenue | $ 360,000,000 | $ 306,000,000 | $ 1,028,000,000 | $ 964,000,000 |
Condensed Consolidating Suppl_5
Condensed Consolidating Supplemental Guarantor Information - Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets | |||
Cash and cash equivalents | $ 388 | $ 464 | $ 334 |
Accounts receivable, net | 1,487 | 1,356 | |
Inventories | 865 | 806 | |
Due from affiliates | 0 | 0 | |
Other current assets | 416 | 397 | |
Total current assets | 3,156 | 3,023 | |
Property, plant and equipment, net | 382 | 359 | |
Goodwill | 2,754 | 2,692 | |
Intangibles, net | 549 | 595 | |
Operating lease assets | 397 | 0 | |
Prepaid pension cost | 153 | 140 | |
Deferred income taxes | 488 | 448 | |
Investments in subsidiaries | 0 | 0 | |
Due from affilates | 0 | 0 | |
Other assets | 572 | 504 | |
Total assets | 8,451 | 7,761 | |
Current liabilities | |||
Short-term borrowings | 208 | 185 | |
Accounts payable | 800 | 897 | |
Payroll and benefits liabilities | 260 | 238 | |
Contract liabilities | 513 | 461 | |
Due to affiliates | 0 | 0 | |
Other current liabilities | 565 | 501 | |
Total current liabilities | 2,346 | 2,282 | |
Long-term debt | 3,422 | 2,980 | |
Pension and indemnity plan liabilities | 763 | 759 | |
Postretirement and postemployment benefits liabilities | 121 | 118 | |
Income tax accruals | 95 | 91 | |
Due to affiliates | 0 | 0 | |
Operating lease liabilities | 378 | 0 | |
Other liabilities | 195 | 259 | |
Total liabilities | 7,320 | 6,489 | |
Redeemable noncontrolling interest | 11 | 14 | |
Series A convertible preferred stock | 389 | 859 | |
Stockholders’ equity | |||
Total NCR stockholders’ equity | 726 | 395 | |
Noncontrolling interests in subsidiaries | 5 | 4 | |
Total stockholders’ equity | 731 | 399 | |
Total liabilities and stockholders’ equity | 8,451 | 7,761 | |
Eliminations | |||
Current assets | |||
Cash and cash equivalents | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | |
Inventories | 0 | 0 | |
Due from affiliates | (3,388) | (3,257) | |
Other current assets | 0 | (42) | |
Total current assets | (3,388) | (3,299) | |
Property, plant and equipment, net | 0 | 0 | |
Goodwill | 0 | 0 | |
Intangibles, net | 0 | 0 | |
Operating lease assets | 0 | ||
Prepaid pension cost | 0 | 0 | |
Deferred income taxes | 0 | (18) | |
Investments in subsidiaries | (6,647) | (6,098) | |
Due from affilates | (17) | (52) | |
Other assets | 0 | 0 | |
Total assets | (10,052) | (9,467) | |
Current liabilities | |||
Short-term borrowings | 0 | 0 | |
Accounts payable | 0 | 0 | |
Payroll and benefits liabilities | 0 | 0 | |
Contract liabilities | 0 | 0 | |
Due to affiliates | (3,388) | (3,257) | |
Other current liabilities | 0 | (42) | |
Total current liabilities | (3,388) | (3,299) | |
Long-term debt | 0 | 0 | |
Pension and indemnity plan liabilities | 0 | 0 | |
Postretirement and postemployment benefits liabilities | 0 | 0 | |
Income tax accruals | 0 | 0 | |
Due to affiliates | (17) | (52) | |
Operating lease liabilities | 0 | ||
Other liabilities | 0 | (18) | |
Total liabilities | (3,405) | (3,369) | |
Redeemable noncontrolling interest | 0 | 0 | |
Series A convertible preferred stock | 0 | 0 | |
Stockholders’ equity | |||
Total NCR stockholders’ equity | (6,647) | (6,098) | |
Noncontrolling interests in subsidiaries | 0 | 0 | |
Total stockholders’ equity | (6,647) | (6,098) | |
Total liabilities and stockholders’ equity | (10,052) | (9,467) | |
Parent Issuer | |||
Current assets | |||
Cash and cash equivalents | 15 | 6 | 31 |
Accounts receivable, net | 56 | 37 | |
Inventories | 325 | 288 | |
Due from affiliates | 821 | 708 | |
Other current assets | 152 | 137 | |
Total current assets | 1,369 | 1,176 | |
Property, plant and equipment, net | 260 | 245 | |
Goodwill | 2,249 | 2,168 | |
Intangibles, net | 498 | 536 | |
Operating lease assets | 256 | ||
Prepaid pension cost | 0 | 0 | |
Deferred income taxes | 323 | 317 | |
Investments in subsidiaries | 3,563 | 3,244 | |
Due from affilates | 16 | 16 | |
Other assets | 509 | 453 | |
Total assets | 9,043 | 8,155 | |
Current liabilities | |||
Short-term borrowings | 8 | 85 | |
Accounts payable | 372 | 397 | |
Payroll and benefits liabilities | 142 | 141 | |
Contract liabilities | 262 | 221 | |
Due to affiliates | 2,564 | 2,177 | |
Other current liabilities | 214 | 201 | |
Total current liabilities | 3,562 | 3,222 | |
Long-term debt | 3,419 | 2,978 | |
Pension and indemnity plan liabilities | 520 | 502 | |
Postretirement and postemployment benefits liabilities | 17 | 18 | |
Income tax accruals | 25 | 19 | |
Due to affiliates | 0 | 0 | |
Operating lease liabilities | 285 | ||
Other liabilities | 100 | 162 | |
Total liabilities | 7,928 | 6,901 | |
Redeemable noncontrolling interest | 0 | 0 | |
Series A convertible preferred stock | 389 | 859 | |
Stockholders’ equity | |||
Total NCR stockholders’ equity | 726 | 395 | |
Noncontrolling interests in subsidiaries | 0 | 0 | |
Total stockholders’ equity | 726 | 395 | |
Total liabilities and stockholders’ equity | 9,043 | 8,155 | |
Guarantor Subsidiary | |||
Current assets | |||
Cash and cash equivalents | 2 | 8 | 5 |
Accounts receivable, net | 1 | 10 | |
Inventories | 1 | 4 | |
Due from affiliates | 2,085 | 2,092 | |
Other current assets | 2 | 47 | |
Total current assets | 2,091 | 2,161 | |
Property, plant and equipment, net | 0 | 1 | |
Goodwill | 0 | 0 | |
Intangibles, net | 0 | 0 | |
Operating lease assets | 0 | ||
Prepaid pension cost | 0 | 0 | |
Deferred income taxes | 3 | 0 | |
Investments in subsidiaries | 3,084 | 2,854 | |
Due from affilates | 1 | 1 | |
Other assets | 1 | 4 | |
Total assets | 5,180 | 5,021 | |
Current liabilities | |||
Short-term borrowings | 0 | 0 | |
Accounts payable | 0 | 2 | |
Payroll and benefits liabilities | 0 | 0 | |
Contract liabilities | 1 | 5 | |
Due to affiliates | 108 | 143 | |
Other current liabilities | 1 | 6 | |
Total current liabilities | 110 | 156 | |
Long-term debt | 0 | 0 | |
Pension and indemnity plan liabilities | 0 | 0 | |
Postretirement and postemployment benefits liabilities | 4 | 3 | |
Income tax accruals | 0 | 5 | |
Due to affiliates | 0 | 36 | |
Operating lease liabilities | 0 | ||
Other liabilities | 0 | 24 | |
Total liabilities | 114 | 224 | |
Redeemable noncontrolling interest | 0 | 0 | |
Series A convertible preferred stock | 0 | 0 | |
Stockholders’ equity | |||
Total NCR stockholders’ equity | 5,066 | 4,797 | |
Noncontrolling interests in subsidiaries | 0 | 0 | |
Total stockholders’ equity | 5,066 | 4,797 | |
Total liabilities and stockholders’ equity | 5,180 | 5,021 | |
Non-Guarantor Subsidiaries | |||
Current assets | |||
Cash and cash equivalents | 371 | 450 | $ 298 |
Accounts receivable, net | 1,430 | 1,309 | |
Inventories | 539 | 514 | |
Due from affiliates | 482 | 457 | |
Other current assets | 262 | 255 | |
Total current assets | 3,084 | 2,985 | |
Property, plant and equipment, net | 122 | 113 | |
Goodwill | 505 | 524 | |
Intangibles, net | 51 | 59 | |
Operating lease assets | 141 | ||
Prepaid pension cost | 153 | 140 | |
Deferred income taxes | 162 | 149 | |
Investments in subsidiaries | 0 | 0 | |
Due from affilates | 0 | 35 | |
Other assets | 62 | 47 | |
Total assets | 4,280 | 4,052 | |
Current liabilities | |||
Short-term borrowings | 200 | 100 | |
Accounts payable | 428 | 498 | |
Payroll and benefits liabilities | 118 | 97 | |
Contract liabilities | 250 | 235 | |
Due to affiliates | 716 | 937 | |
Other current liabilities | 350 | 336 | |
Total current liabilities | 2,062 | 2,203 | |
Long-term debt | 3 | 2 | |
Pension and indemnity plan liabilities | 243 | 257 | |
Postretirement and postemployment benefits liabilities | 100 | 97 | |
Income tax accruals | 70 | 67 | |
Due to affiliates | 17 | 16 | |
Operating lease liabilities | 93 | ||
Other liabilities | 95 | 91 | |
Total liabilities | 2,683 | 2,733 | |
Redeemable noncontrolling interest | 11 | 14 | |
Series A convertible preferred stock | 0 | 0 | |
Stockholders’ equity | |||
Total NCR stockholders’ equity | 1,581 | 1,301 | |
Noncontrolling interests in subsidiaries | 5 | 4 | |
Total stockholders’ equity | 1,586 | 1,305 | |
Total liabilities and stockholders’ equity | $ 4,280 | $ 4,052 |
Condensed Consolidating Suppl_6
Condensed Consolidating Supplemental Guarantor Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Proceeds from Contributions from Parent | $ 0 | ||||
Net cash provided by (used in) operating activities | 226 | $ 163 | |||
Investing activities | |||||
Expenditures for property, plant and equipment | (53) | (104) | |||
Proceeds from sale of property, plant and equipment | 11 | 3 | |||
Additions to capitalized software | (167) | (130) | |||
Proceeds from (payments of) intercompany notes | 0 | 0 | |||
Investments in equity affiliates | 0 | ||||
Business acquisitions, net | (86) | 0 | |||
Net change in funds held for clients - investing | (2) | 0 | |||
Increase (Decrease) in Client Funds Held | 2 | 0 | |||
Other investing activities, net | 5 | (4) | |||
Net Cash Provided by (Used in) Investing Activities | (292) | (235) | |||
Financing activities | |||||
Short term borrowings, net | (4) | (7) | |||
Payments on term credit facilities | (759) | (51) | |||
Payments on revolving credit facilities | (2,079) | (1,433) | |||
Borrowings on revolving credit facilities | 2,459 | 1,608 | |||
Repayments of Unsecured Debt | (500) | 0 | |||
Proceeds from Issuance of Unsecured Debt | 1,000 | 0 | |||
Proceeds from Issuance of Secured Debt | 350 | 0 | |||
Repurchases of Company common stock | (96) | (210) | |||
Payments of Debt Issuance Costs | (28) | 0 | |||
Repurchase of Series A Convertible Preferred Stock | (302) | 0 | |||
Proceeds from employee stock plans | 12 | 16 | |||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | 0 | 0 | |||
Borrowings (repayments) of intercompany notes | 0 | 0 | |||
Tax withholding payments on behalf of employees | (29) | (30) | |||
Proceeds from (Payments for) Other Financing Activities | (1) | 0 | |||
Net Cash Provided by (Used in) Financing Activities | 33 | (93) | |||
Cash flows from discontinued operations | |||||
Net cash used in operating activities | (27) | (23) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7) | (12) | |||
Decrease in cash, cash equivalents, and restricted cash | (67) | (200) | |||
Cash, cash equivalents and restricted cash at beginning of period | 476 | 543 | |||
Cash, cash equivalents and restricted cash at end of period | 409 | 343 | |||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows | |||||
Cash and cash equivalents | $ 388 | $ 464 | $ 334 | ||
Restricted cash included in other assets | 21 | 9 | |||
Total cash, cash equivalents and restricted cash | 476 | 343 | 409 | 476 | 343 |
Eliminations | |||||
Proceeds from Contributions from Parent | 98 | ||||
Net cash provided by (used in) operating activities | (1) | (14) | |||
Investing activities | |||||
Expenditures for property, plant and equipment | 0 | 0 | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | |||
Additions to capitalized software | 0 | 0 | |||
Proceeds from (payments of) intercompany notes | (580) | (352) | |||
Investments in equity affiliates | (98) | ||||
Business acquisitions, net | 0 | ||||
Net change in funds held for clients - investing | |||||
Increase (Decrease) in Client Funds Held | 0 | ||||
Other investing activities, net | 0 | 0 | |||
Net Cash Provided by (Used in) Investing Activities | (678) | (352) | |||
Financing activities | |||||
Short term borrowings, net | 0 | 0 | |||
Payments on term credit facilities | 0 | 0 | |||
Payments on revolving credit facilities | 0 | 0 | |||
Borrowings on revolving credit facilities | 0 | 0 | |||
Repayments of Unsecured Debt | 0 | ||||
Proceeds from Issuance of Unsecured Debt | 0 | ||||
Proceeds from Issuance of Secured Debt | 0 | ||||
Repurchases of Company common stock | 0 | ||||
Payments of Debt Issuance Costs | 0 | ||||
Repurchase of Series A Convertible Preferred Stock | 0 | ||||
Proceeds from employee stock plans | 0 | 0 | |||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | 1 | 14 | |||
Borrowings (repayments) of intercompany notes | 580 | 352 | |||
Tax withholding payments on behalf of employees | 0 | 0 | |||
Proceeds from (Payments for) Other Financing Activities | 0 | ||||
Net Cash Provided by (Used in) Financing Activities | 679 | 366 | |||
Cash flows from discontinued operations | |||||
Net cash used in operating activities | 0 | 0 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |||
Decrease in cash, cash equivalents, and restricted cash | 0 | 0 | |||
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |||
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | |||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Restricted cash included in other assets | 0 | 0 | |||
Total cash, cash equivalents and restricted cash | 0 | 0 | 0 | 0 | 0 |
Parent Issuer | |||||
Proceeds from Contributions from Parent | (84) | ||||
Net cash provided by (used in) operating activities | 142 | 226 | |||
Investing activities | |||||
Expenditures for property, plant and equipment | (23) | (85) | |||
Proceeds from sale of property, plant and equipment | 3 | 1 | |||
Additions to capitalized software | (140) | (111) | |||
Proceeds from (payments of) intercompany notes | 290 | 207 | |||
Investments in equity affiliates | 0 | ||||
Business acquisitions, net | (86) | ||||
Net change in funds held for clients - investing | 0 | ||||
Increase (Decrease) in Client Funds Held | 0 | ||||
Other investing activities, net | 5 | (4) | |||
Net Cash Provided by (Used in) Investing Activities | 49 | 8 | |||
Financing activities | |||||
Short term borrowings, net | (4) | 1 | |||
Payments on term credit facilities | (759) | (51) | |||
Payments on revolving credit facilities | (1,760) | (1,055) | |||
Borrowings on revolving credit facilities | 2,040 | 1,055 | |||
Repayments of Unsecured Debt | (500) | ||||
Proceeds from Issuance of Unsecured Debt | 1,000 | ||||
Proceeds from Issuance of Secured Debt | 350 | ||||
Repurchases of Company common stock | (96) | (210) | |||
Payments of Debt Issuance Costs | (28) | ||||
Repurchase of Series A Convertible Preferred Stock | (302) | ||||
Proceeds from employee stock plans | 12 | 16 | |||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | 0 | 0 | |||
Borrowings (repayments) of intercompany notes | 0 | 0 | |||
Tax withholding payments on behalf of employees | (29) | (30) | |||
Proceeds from (Payments for) Other Financing Activities | 0 | ||||
Net Cash Provided by (Used in) Financing Activities | (152) | (276) | |||
Cash flows from discontinued operations | |||||
Net cash used in operating activities | (26) | (23) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |||
Decrease in cash, cash equivalents, and restricted cash | 13 | (65) | |||
Cash, cash equivalents and restricted cash at beginning of period | 12 | 97 | |||
Cash, cash equivalents and restricted cash at end of period | 25 | 32 | |||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows | |||||
Cash and cash equivalents | 15 | 6 | 31 | ||
Restricted cash included in other assets | 10 | 1 | |||
Total cash, cash equivalents and restricted cash | 12 | 97 | 25 | 12 | 32 |
Guarantor Subsidiary | |||||
Proceeds from Contributions from Parent | (14) | ||||
Net cash provided by (used in) operating activities | (207) | (151) | |||
Investing activities | |||||
Expenditures for property, plant and equipment | 0 | 0 | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | |||
Additions to capitalized software | 0 | 0 | |||
Proceeds from (payments of) intercompany notes | 255 | 145 | |||
Investments in equity affiliates | 0 | ||||
Business acquisitions, net | 0 | ||||
Net change in funds held for clients - investing | |||||
Increase (Decrease) in Client Funds Held | 0 | ||||
Other investing activities, net | 0 | 0 | |||
Net Cash Provided by (Used in) Investing Activities | 255 | 145 | |||
Financing activities | |||||
Short term borrowings, net | 0 | 0 | |||
Payments on term credit facilities | 0 | 0 | |||
Payments on revolving credit facilities | 0 | 0 | |||
Borrowings on revolving credit facilities | 0 | 0 | |||
Repayments of Unsecured Debt | 0 | ||||
Proceeds from Issuance of Unsecured Debt | 0 | ||||
Proceeds from Issuance of Secured Debt | 0 | ||||
Repurchases of Company common stock | 0 | ||||
Payments of Debt Issuance Costs | 0 | ||||
Repurchase of Series A Convertible Preferred Stock | 0 | ||||
Proceeds from employee stock plans | 0 | 0 | |||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | 0 | 0 | |||
Borrowings (repayments) of intercompany notes | (35) | 0 | |||
Tax withholding payments on behalf of employees | 0 | 0 | |||
Proceeds from (Payments for) Other Financing Activities | 0 | ||||
Net Cash Provided by (Used in) Financing Activities | (49) | 0 | |||
Cash flows from discontinued operations | |||||
Net cash used in operating activities | 0 | 0 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |||
Decrease in cash, cash equivalents, and restricted cash | (1) | (6) | |||
Cash, cash equivalents and restricted cash at beginning of period | 3 | 11 | |||
Cash, cash equivalents and restricted cash at end of period | 2 | 5 | |||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows | |||||
Cash and cash equivalents | 2 | 8 | 5 | ||
Restricted cash included in other assets | 0 | 0 | |||
Total cash, cash equivalents and restricted cash | 3 | 11 | 2 | 3 | 5 |
Non-Guarantor Subsidiaries | |||||
Proceeds from Contributions from Parent | 0 | ||||
Net cash provided by (used in) operating activities | 292 | 102 | |||
Investing activities | |||||
Expenditures for property, plant and equipment | (30) | (19) | |||
Proceeds from sale of property, plant and equipment | 8 | 2 | |||
Additions to capitalized software | (27) | (19) | |||
Proceeds from (payments of) intercompany notes | 35 | 0 | |||
Investments in equity affiliates | 98 | ||||
Business acquisitions, net | 0 | ||||
Net change in funds held for clients - investing | (2) | ||||
Increase (Decrease) in Client Funds Held | 2 | ||||
Other investing activities, net | 0 | 0 | |||
Net Cash Provided by (Used in) Investing Activities | 82 | (36) | |||
Financing activities | |||||
Short term borrowings, net | 0 | (8) | |||
Payments on term credit facilities | 0 | 0 | |||
Payments on revolving credit facilities | (319) | (378) | |||
Borrowings on revolving credit facilities | 419 | 553 | |||
Repayments of Unsecured Debt | 0 | ||||
Proceeds from Issuance of Unsecured Debt | 0 | ||||
Proceeds from Issuance of Secured Debt | 0 | ||||
Repurchases of Company common stock | 0 | ||||
Payments of Debt Issuance Costs | 0 | ||||
Repurchase of Series A Convertible Preferred Stock | 0 | ||||
Proceeds from employee stock plans | 0 | 0 | |||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | (1) | (14) | |||
Borrowings (repayments) of intercompany notes | (545) | (352) | |||
Tax withholding payments on behalf of employees | 0 | 0 | |||
Proceeds from (Payments for) Other Financing Activities | (1) | ||||
Net Cash Provided by (Used in) Financing Activities | (445) | (183) | |||
Cash flows from discontinued operations | |||||
Net cash used in operating activities | (1) | 0 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7) | (12) | |||
Decrease in cash, cash equivalents, and restricted cash | (79) | (129) | |||
Cash, cash equivalents and restricted cash at beginning of period | 461 | 435 | |||
Cash, cash equivalents and restricted cash at end of period | 382 | 306 | |||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows | |||||
Cash and cash equivalents | 371 | 450 | 298 | ||
Restricted cash included in other assets | 11 | 8 | |||
Total cash, cash equivalents and restricted cash | $ 461 | $ 435 | $ 382 | $ 461 | $ 306 |