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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Maryland
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31-0387920
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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þ
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Accelerated filer
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o
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Non-accelerated filer
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o
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(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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PART I. Financial Information
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Description
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II. Other Information
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Description
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Page
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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Item 1.
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FINANCIAL STATEMENTS
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In millions, except per share amounts
|
Three months ended September 30
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Nine months ended September 30
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||||||||||||
2016
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2015
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2016
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2015
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|||||||||
Product revenue
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$
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708
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|
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$
|
688
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|
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$
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1,932
|
|
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$
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1,995
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Service revenue
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969
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|
|
925
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2,809
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2,698
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||||
Total revenue
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1,677
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1,613
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4,741
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4,693
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||||
Cost of products
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528
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512
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1,487
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1,539
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||||
Cost of services
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672
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644
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1,951
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2,161
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|
||||
Selling, general and administrative expenses
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225
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|
|
224
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|
|
678
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|
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788
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|
||||
Research and development expenses
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56
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|
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53
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|
|
159
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|
|
175
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|
||||
Restructuring-related charges
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7
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|
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12
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|
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13
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33
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||||
Total operating expenses
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1,488
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1,445
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4,288
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4,696
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||||
Income (loss) from operations
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189
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|
|
168
|
|
|
453
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(3
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)
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||||
Interest expense
|
(41
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)
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|
(42
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)
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(130
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)
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(131
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)
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||||
Other (expense), net
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(8
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)
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(7
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)
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(33
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)
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(14
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)
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||||
Income (loss) from continuing operations before income taxes
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140
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|
|
119
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|
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290
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|
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(148
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)
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||||
Income tax expense
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31
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|
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16
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|
|
75
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|
|
50
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|
||||
Income (loss) from continuing operations
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109
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|
|
103
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|
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215
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(198
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)
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||||
Loss from discontinued operations, net of tax
|
(2
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)
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(4
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)
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(2
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)
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(4
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)
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||||
Net income (loss)
|
107
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|
|
99
|
|
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213
|
|
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(202
|
)
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||||
Net income attributable to noncontrolling interests
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2
|
|
|
1
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|
|
—
|
|
|
4
|
|
||||
Net income (loss) attributable to NCR
|
$
|
105
|
|
|
$
|
98
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|
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$
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213
|
|
|
$
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(206
|
)
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Amounts attributable to NCR common stockholders:
|
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||||||||
Income (loss) from continuing operations
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$
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107
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$
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102
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|
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$
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215
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$
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(202
|
)
|
Series A convertible preferred stock dividends
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(13
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)
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—
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(37
|
)
|
|
—
|
|
||||
Income (loss) from continuing operations attributable to NCR common stockholders
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94
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|
|
102
|
|
|
178
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|
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(202
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)
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||||
Loss from discontinued operations, net of tax
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(2
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)
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(4
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)
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(2
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)
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(4
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)
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||||
Net income (loss) attributable to NCR common stockholders
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$
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92
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$
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98
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$
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176
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$
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(206
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)
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Income (loss) per share attributable to NCR common stockholders:
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||||||||
Income (loss) per common share from continuing operations
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||||||||
Basic
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$
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0.76
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$
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0.60
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$
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1.41
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$
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(1.19
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)
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Diluted
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$
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0.69
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$
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0.59
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$
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1.37
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$
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(1.19
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)
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Net income (loss) per common share
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|
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Basic
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$
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0.74
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$
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0.58
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$
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1.40
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$
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(1.22
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)
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Diluted
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$
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0.68
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$
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0.57
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$
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1.36
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$
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(1.22
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)
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Weighted average common shares outstanding
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||||||||
Basic
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123.9
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169.8
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126.0
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169.5
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Diluted
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155.4
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172.3
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156.8
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169.5
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In millions
|
Three months ended September 30
|
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Nine months ended September 30
|
||||||||||||
2016
|
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2015
|
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2016
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2015
|
|||||||||
Net income (loss)
|
$
|
107
|
|
|
$
|
99
|
|
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$
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213
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|
|
$
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(202
|
)
|
Other comprehensive income (loss):
|
|
|
|
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|
|
||||||||
Currency translation adjustments
|
|
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||||||||
Currency translation adjustments
|
3
|
|
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(39
|
)
|
|
(23
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)
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|
(41
|
)
|
||||
Derivatives
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|
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||||||||
Unrealized gain on derivatives
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4
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|
|
2
|
|
|
4
|
|
|
9
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|
||||
(Gains) losses on derivatives recognized during the period
|
—
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|
|
(1
|
)
|
|
2
|
|
|
(3
|
)
|
||||
Less income tax expense
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Employee benefit plans
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service benefit
|
(4
|
)
|
|
(5
|
)
|
|
(14
|
)
|
|
(16
|
)
|
||||
Amortization of actuarial loss (benefit)
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
2
|
|
||||
Less income tax benefit
|
1
|
|
|
1
|
|
|
4
|
|
|
5
|
|
||||
Other comprehensive income (loss)
|
3
|
|
|
(42
|
)
|
|
(29
|
)
|
|
(46
|
)
|
||||
Total comprehensive income (loss)
|
110
|
|
|
57
|
|
|
184
|
|
|
(248
|
)
|
||||
Less comprehensive income attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
||||||||
Net income
|
2
|
|
|
1
|
|
|
—
|
|
|
4
|
|
||||
Currency translation adjustments
|
(1
|
)
|
|
(4
|
)
|
|
(7
|
)
|
|
(7
|
)
|
||||
Amounts attributable to noncontrolling interests
|
1
|
|
|
(3
|
)
|
|
(7
|
)
|
|
(3
|
)
|
||||
Comprehensive income (loss) attributable to NCR
|
$
|
109
|
|
|
$
|
60
|
|
|
$
|
191
|
|
|
(245
|
)
|
In millions, except per share amounts
|
September 30, 2016
|
|
December 31, 2015
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
318
|
|
|
$
|
328
|
|
Accounts receivable, net
|
1,387
|
|
|
1,251
|
|
||
Inventories
|
776
|
|
|
643
|
|
||
Other current assets
|
270
|
|
|
327
|
|
||
Total current assets
|
2,751
|
|
|
2,549
|
|
||
Property, plant and equipment, net
|
289
|
|
|
322
|
|
||
Goodwill
|
2,737
|
|
|
2,733
|
|
||
Intangibles, net
|
704
|
|
|
798
|
|
||
Prepaid pension cost
|
132
|
|
|
130
|
|
||
Deferred income taxes
|
546
|
|
|
582
|
|
||
Other assets
|
552
|
|
|
521
|
|
||
Total assets
|
$
|
7,711
|
|
|
$
|
7,635
|
|
Liabilities and stockholders’ equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Short-term borrowings
|
$
|
256
|
|
|
$
|
13
|
|
Accounts payable
|
718
|
|
|
657
|
|
||
Payroll and benefits liabilities
|
212
|
|
|
189
|
|
||
Deferred service revenue and customer deposits
|
471
|
|
|
476
|
|
||
Other current liabilities
|
345
|
|
|
446
|
|
||
Total current liabilities
|
2,002
|
|
|
1,781
|
|
||
Long-term debt
|
3,033
|
|
|
3,239
|
|
||
Pension and indemnity plan liabilities
|
709
|
|
|
696
|
|
||
Postretirement and postemployment benefits liabilities
|
127
|
|
|
133
|
|
||
Income tax accruals
|
169
|
|
|
167
|
|
||
Other liabilities
|
151
|
|
|
79
|
|
||
Total liabilities
|
6,191
|
|
|
6,095
|
|
||
Commitments and Contingencies (Note 8)
|
|
|
|
||||
Redeemable noncontrolling interest
|
10
|
|
|
16
|
|
||
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.9 shares issued and outstanding as of September 30, 2016 and 0.8 shares issued and outstanding as of December 31, 2015; redemption amount and liquidation preference of $858 and $824 as of September 30, 2016 and December 31, 2015, respectively
|
835
|
|
|
798
|
|||
Stockholders’ equity
|
|
|
|
||||
NCR stockholders’ equity
|
|
|
|
||||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of September 30, 2016 and December 31, 2015
|
—
|
|
|
—
|
|
||
Common stock: par value $0.01 per share, 500.0 shares authorized, 124.0 and 133.0 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
|
1
|
|
|
1
|
|
||
Paid-in capital
|
21
|
|
|
—
|
|
||
Retained earnings
|
822
|
|
|
869
|
|
||
Accumulated other comprehensive loss
|
(172
|
)
|
|
(150)
|
|
||
Total NCR stockholders’ equity
|
672
|
|
|
720
|
|
||
Noncontrolling interests in subsidiaries
|
3
|
|
|
6
|
|
||
Total stockholders’ equity
|
675
|
|
|
726
|
|
||
Total liabilities and stockholders’ equity
|
$
|
7,711
|
|
|
$
|
7,635
|
|
In millions
|
Nine months ended September 30
|
||||||
2016
|
|
2015
|
|||||
Operating activities
|
|
|
|
||||
Net income (loss)
|
$
|
213
|
|
|
$
|
(202
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Loss from discontinued operations
|
2
|
|
|
4
|
|
||
Depreciation and amortization
|
259
|
|
|
229
|
|
||
Stock-based compensation expense
|
45
|
|
|
32
|
|
||
Deferred income taxes
|
39
|
|
|
26
|
|
||
Gain on sale of property, plant and equipment and other assets
|
—
|
|
|
(1
|
)
|
||
Loss on divestiture
|
1
|
|
|
—
|
|
||
Impairment of long-lived and other assets
|
2
|
|
|
16
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Receivables
|
(138
|
)
|
|
(80
|
)
|
||
Inventories
|
(128
|
)
|
|
(86
|
)
|
||
Current payables and accrued expenses
|
68
|
|
|
17
|
|
||
Deferred service revenue and customer deposits
|
78
|
|
|
72
|
|
||
Employee benefit plans
|
(38
|
)
|
|
367
|
|
||
Other assets and liabilities
|
(34
|
)
|
|
22
|
|
||
Net cash provided by operating activities
|
369
|
|
|
416
|
|
||
Investing activities
|
|
|
|
||||
Expenditures for property, plant and equipment
|
(45
|
)
|
|
(47
|
)
|
||
Additions to capitalized software
|
(115
|
)
|
|
(117
|
)
|
||
Proceeds from divestiture
|
47
|
|
|
—
|
|
||
Other investing activities, net
|
(8
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(121
|
)
|
|
(164
|
)
|
||
Financing activities
|
|
|
|
||||
Short term borrowings, net
|
(2
|
)
|
|
—
|
|
||
Payments on term credit facilities
|
(84
|
)
|
|
(312
|
)
|
||
Payments on revolving credit facilities
|
(736
|
)
|
|
(977
|
)
|
||
Borrowings on revolving credit facilities
|
856
|
|
|
881
|
|
||
Debt issuance costs
|
(8
|
)
|
|
—
|
|
||
Repurchases of Company common stock
|
(250
|
)
|
|
—
|
|
||
Proceeds from employee stock plans
|
10
|
|
|
12
|
|
||
Tax withholding payments on behalf of employees
|
(7
|
)
|
|
(10
|
)
|
||
Other financing activities
|
(2
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(223
|
)
|
|
(406
|
)
|
||
Cash flows from discontinued operations
|
|
|
|
||||
Net cash used in operating activities
|
(30
|
)
|
|
(27
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(5
|
)
|
|
(27
|
)
|
||
Decrease in cash and cash equivalents
|
(10
|
)
|
|
(208
|
)
|
||
Cash and cash equivalents at beginning of period
|
328
|
|
|
511
|
|
||
Cash and cash equivalents at end of period
|
$
|
318
|
|
|
$
|
303
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
September 30, 2016
|
||||||||||||||||||||||||||
In millions
|
Goodwill
|
|
Accumulated Impairment Losses
|
|
Total
|
|
Additions
|
|
Impairment
|
|
Other
|
|
Goodwill
|
|
Accumulated Impairment Losses
|
|
Total
|
||||||||||||||||||
Software
|
$
|
1,936
|
|
|
$
|
(7
|
)
|
|
$
|
1,929
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
1,940
|
|
|
$
|
(7
|
)
|
|
$
|
1,933
|
|
Services
|
658
|
|
|
—
|
|
|
658
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
658
|
|
|
—
|
|
|
658
|
|
|||||||||
Hardware
|
162
|
|
|
(16
|
)
|
|
146
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
162
|
|
|
(16
|
)
|
|
146
|
|
|||||||||
Total goodwill
|
$
|
2,756
|
|
|
$
|
(23
|
)
|
|
$
|
2,733
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
2,760
|
|
|
$
|
(23
|
)
|
|
$
|
2,737
|
|
|
Amortization
Period
(in Years)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
In millions
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|||||||||
Identifiable intangible assets
|
|
|
|
|
|
|
|
|
|
||||||||
Reseller & customer relationships
|
1 - 20
|
|
$
|
659
|
|
|
$
|
(119
|
)
|
|
$
|
659
|
|
|
$
|
(92
|
)
|
Intellectual property
|
2 - 8
|
|
393
|
|
|
(290
|
)
|
|
392
|
|
|
(244
|
)
|
||||
Customer contracts
|
8
|
|
89
|
|
|
(61
|
)
|
|
89
|
|
|
(46
|
)
|
||||
Tradenames
|
2 - 10
|
|
73
|
|
|
(40
|
)
|
|
73
|
|
|
(33
|
)
|
||||
Total identifiable intangible assets
|
|
|
$
|
1,214
|
|
|
$
|
(510
|
)
|
|
$
|
1,213
|
|
|
$
|
(415
|
)
|
In millions
|
Three months ended September 30, 2016
|
|
Nine months ended September 30, 2016
|
|
Remainder of 2016 (estimated)
|
||||||
Amortization expense
|
$
|
31
|
|
|
$
|
95
|
|
|
$
|
29
|
|
|
|
For the years ended December 31 (estimated)
|
||||||||||||||||||
In millions
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
||||||||||
Amortization expense
|
|
$
|
116
|
|
|
$
|
85
|
|
|
$
|
75
|
|
|
$
|
57
|
|
|
$
|
49
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|||||||||
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)
|
$
|
45
|
|
|
2.53%
|
|
$
|
—
|
|
|
|
|
Trade Receivables Securitization Facility
(1)
|
200
|
|
|
1.25%
|
|
—
|
|
|
|
|||
Other
(1)
|
11
|
|
|
7.41%
|
|
13
|
|
|
6.34%
|
|||
|
Total short-term borrowings
|
$
|
256
|
|
|
|
|
$
|
13
|
|
|
|
Long-Term Debt
|
|
|
|
|
|
|
|
|||||
Senior Secured Credit Facility:
|
|
|
|
|
|
|
|
|||||
|
Term loan facility
(1)
|
$
|
833
|
|
|
2.53%
|
|
$
|
956
|
|
|
2.95%
|
|
Revolving credit facility
(1)
|
20
|
|
|
2.53%
|
|
100
|
|
|
2.61%
|
||
Senior notes:
|
|
|
|
|
|
|
|
|
||||
|
5.00% Senior Notes due 2022
|
600
|
|
|
|
|
600
|
|
|
|
||
|
4.625% Senior Notes due 2021
|
500
|
|
|
|
|
500
|
|
|
|
||
|
5.875% Senior Notes due 2021
|
400
|
|
|
|
|
400
|
|
|
|
||
|
6.375% Senior Notes due 2023
|
700
|
|
|
|
|
700
|
|
|
|
||
Other
(1)
|
11
|
|
|
6.98%
|
|
17
|
|
|
7.16%
|
|||
Deferred Financing Fees
|
(31
|
)
|
|
|
|
(34
|
)
|
|
|
|||
|
Total long-term debt
|
$
|
3,033
|
|
|
|
|
$
|
3,239
|
|
|
|
(1)
|
Interest rates are weighted average interest rates as of
September 30, 2016
and
December 31, 2015
. The Senior Secured Credit Facility incorporates the impact of the interest rate swap agreement described in
Note 11, "Derivatives and Hedging Instruments."
|
•
|
a consolidated leverage ratio on the last day of any fiscal quarter, not to exceed (i) in the case of any fiscal quarter ending on or prior to December 31, 2017, (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
, (ii) in the case of any fiscal quarter ending after December 31, 2017 and on or prior to December 31, 2019, (a) the sum of
4.00
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 December 31, 2019, the sum of (a)
3.75
and an amount (not to exceed
0.50
) to reflect debt used to reduce NCR’s unfunded pension liabilities to (b)
1.00
; and
|
•
|
an interest coverage ratio on the last day of any fiscal quarter greater than or equal to
3.50
to
1.00
.
|
|
|
|
|
|
|
For the years ended December 31
|
|
|
||||||||||||||||||||
In millions
|
|
Total
|
|
October 1, 2016 through December 31, 2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
||||||||||||||
Debt maturities
|
|
$
|
3,320
|
|
|
$
|
214
|
|
|
$
|
50
|
|
|
$
|
63
|
|
|
$
|
85
|
|
|
$
|
95
|
|
|
$
|
2,813
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
In millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Severance and other employee-related costs
|
|
|
|
|
|
|
|
||||||||
ASC 712 charges included in restructuring-related charges
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
(5
|
)
|
ASC 420 charges included in restructuring-related charges
|
1
|
|
|
7
|
|
|
(1
|
)
|
|
12
|
|
||||
Inventory-related charges
|
|
|
|
|
|
|
|
||||||||
Charges included in cost of products
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Charges included in cost of services
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Asset-related charges
|
|
|
|
|
|
|
|
||||||||
External and internal use software impairment charges
included in restructuring-related charges
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Impairment of long-lived assets included in restructuring-
related charges
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
Other exit costs
|
|
|
|
|
|
|
|
||||||||
Other exit costs included in restructuring-related charges
|
4
|
|
|
5
|
|
|
8
|
|
|
10
|
|
||||
Total restructuring charges
|
$
|
7
|
|
|
$
|
12
|
|
|
$
|
17
|
|
|
$
|
36
|
|
In millions
|
2016
|
|
2015
|
||||
Employee Severance and Other Exit Costs
|
|
|
|
||||
Beginning balance as of January 1
|
$
|
20
|
|
|
$
|
60
|
|
Cost recognized during the period
|
13
|
|
|
22
|
|
||
Change in estimated payments
|
(2
|
)
|
|
(5
|
)
|
||
Utilization
|
(28
|
)
|
|
(51
|
)
|
||
Foreign currency translation adjustments
|
—
|
|
|
(2
|
)
|
||
Ending balance as of September 30
|
$
|
3
|
|
|
$
|
24
|
|
In millions
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Restricted stock units
|
$
|
16
|
|
|
$
|
12
|
|
|
$
|
45
|
|
|
$
|
32
|
|
Tax benefit
|
(6)
|
|
|
(4)
|
|
|
(14
|
)
|
|
(10
|
)
|
||||
Total stock-based compensation (net of tax)
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
31
|
|
|
$
|
22
|
|
|
Nine months ended September 30, 2016
|
Expected volatility
|
33.9%
|
Expected dividend yield
|
—
|
Risk-free rate
|
1.21%
|
Weighted average fair value per share
|
$14.93
|
In millions
|
U.S. Pension Benefits
|
|
International Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||||||
Net service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
3
|
|
Interest cost
|
23
|
|
|
22
|
|
|
7
|
|
|
7
|
|
|
30
|
|
|
29
|
|
||||||
Expected return on plan assets
|
(18
|
)
|
|
(18
|
)
|
|
(10
|
)
|
|
(11
|
)
|
|
(28
|
)
|
|
(29
|
)
|
||||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||||
Curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Net periodic benefit cost (income)
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
5
|
|
In millions
|
U.S. Pension Benefits
|
|
International Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||||||
Net service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
9
|
|
|
$
|
6
|
|
|
$
|
9
|
|
Interest cost
|
68
|
|
|
66
|
|
|
21
|
|
|
34
|
|
|
89
|
|
|
100
|
|
||||||
Expected return on plan assets
|
(54
|
)
|
|
(54
|
)
|
|
(28
|
)
|
|
(50
|
)
|
|
(82
|
)
|
|
(104
|
)
|
||||||
Amortization of prior service cost
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|||||
Curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
427
|
|
|
—
|
|
|
427
|
|
||||||
Net periodic benefit cost (income)
|
$
|
14
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
419
|
|
|
$
|
14
|
|
|
$
|
431
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
In millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service benefit
|
(4
|
)
|
|
(5
|
)
|
|
(11
|
)
|
|
(14
|
)
|
||||
Actuarial loss
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Net postretirement benefit
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
$
|
(9
|
)
|
|
$
|
(12
|
)
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
In millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net service cost
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
12
|
|
|
$
|
12
|
|
Interest cost
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service benefit
|
(1
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(3
|
)
|
||||
Actuarial gain
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Net benefit cost
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
11
|
|
Restructuring severance cost
|
2
|
|
|
—
|
|
|
4
|
|
|
(5
|
)
|
||||
Total postemployment cost
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
10
|
|
|
$
|
6
|
|
In millions
|
2016
|
|
2015
|
||||
Warranty reserve liability
|
|
|
|
||||
Beginning balance as of January 1
|
$
|
24
|
|
|
$
|
22
|
|
Accruals for warranties issued
|
31
|
|
|
29
|
|
||
Settlements (in cash or in kind)
|
(29
|
)
|
|
(28
|
)
|
||
Ending balance as of September 30
|
$
|
26
|
|
|
$
|
23
|
|
In millions, except per share amounts
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
107
|
|
|
$
|
102
|
|
|
$
|
215
|
|
|
$
|
(202
|
)
|
Loss from discontinued operations, net of tax
|
(2
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(4
|
)
|
||||
Net income (loss) attributable to NCR
|
$
|
105
|
|
|
$
|
98
|
|
|
$
|
213
|
|
|
$
|
(206
|
)
|
Series A convertible preferred stock dividends
|
(13
|
)
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
||||
Net income (loss) attributable to NCR common stockholders
|
$
|
92
|
|
|
$
|
98
|
|
|
$
|
176
|
|
|
$
|
(206
|
)
|
Denominator
|
|
|
|
|
|
|
|
||||||||
Basic weighted average number of shares outstanding
|
123.9
|
|
|
169.8
|
|
|
126.0
|
|
|
169.5
|
|
||||
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
From continuing operations
|
$
|
0.76
|
|
|
$
|
0.60
|
|
|
$
|
1.41
|
|
|
$
|
(1.19
|
)
|
From discontinued operations
|
(0.02
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.03
|
)
|
||||
Total basic earnings per share
|
$
|
0.74
|
|
|
$
|
0.58
|
|
|
$
|
1.40
|
|
|
$
|
(1.22
|
)
|
In millions, except per share amounts
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
107
|
|
|
$
|
102
|
|
|
$
|
215
|
|
|
$
|
(202
|
)
|
Loss from discontinued operations, net of tax
|
(2
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(4
|
)
|
||||
Net income (loss) attributable to NCR
|
$
|
105
|
|
|
$
|
98
|
|
|
$
|
213
|
|
|
$
|
(206
|
)
|
Denominator
|
|
|
|
|
|
|
|
||||||||
Basic weighted average number of shares outstanding
|
123.9
|
|
|
169.8
|
|
|
126.0
|
|
|
169.5
|
|
||||
Dilutive effect of as-if Series A Convertible Preferred Stock
|
28.4
|
|
|
—
|
|
|
28.0
|
|
|
—
|
|
||||
Dilutive effect of employee stock options and restricted stock units
|
3.1
|
|
|
2.5
|
|
|
2.8
|
|
|
—
|
|
||||
Diluted weighted average number of shares outstanding
|
155.4
|
|
|
172.3
|
|
|
156.8
|
|
|
169.5
|
|
||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
From continuing operations
|
$
|
0.69
|
|
|
$
|
0.59
|
|
|
$
|
1.37
|
|
|
$
|
(1.19
|
)
|
From discontinued operations
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.03
|
)
|
||||
Total diluted earnings per share
|
$
|
0.68
|
|
|
$
|
0.57
|
|
|
$
|
1.36
|
|
|
$
|
(1.22
|
)
|
|
Fair Values of Derivative Instruments
|
||||||||||||||||||
|
September 30, 2016
|
||||||||||||||||||
In millions
|
Balance Sheet
Location
|
|
Notional
Amount
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Notional
Amount
|
|
Fair
Value
|
||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
Other current assets
|
|
$
|
298
|
|
|
$
|
5
|
|
|
Other current liabilities
|
|
$
|
72
|
|
|
$
|
1
|
|
Total derivatives designated as hedging instruments
|
|
|
|
|
$
|
5
|
|
|
|
|
|
|
$
|
1
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
Other current assets
|
|
$
|
153
|
|
|
$
|
—
|
|
|
Other current liabilities
|
|
$
|
208
|
|
|
$
|
1
|
|
Total derivatives not designated as hedging instruments
|
|
|
|
|
—
|
|
|
|
|
|
|
1
|
|
||||||
Total derivatives
|
|
|
|
|
$
|
5
|
|
|
|
|
|
|
$
|
2
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fair Values of Derivative Instruments
|
||||||||||||||||||
|
December 31, 2015
|
||||||||||||||||||
In millions
|
Balance Sheet
Location
|
|
Notional
Amount
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Notional
Amount
|
|
Fair
Value
|
||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
Other current assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Other current liabilities
|
|
$
|
380
|
|
|
$
|
3
|
|
Foreign exchange contracts
|
Other current assets
|
|
53
|
|
|
2
|
|
|
Other current liabilities
|
|
105
|
|
|
1
|
|
||||
Total derivatives designated as hedging instruments
|
|
|
|
|
$
|
2
|
|
|
|
|
|
|
$
|
4
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
Other current assets
|
|
$
|
191
|
|
|
$
|
1
|
|
|
Other current liabilities
|
|
$
|
204
|
|
|
$
|
1
|
|
Total derivatives not designated as hedging instruments
|
|
|
|
|
1
|
|
|
|
|
|
|
1
|
|
||||||
Total derivatives
|
|
|
|
|
$
|
3
|
|
|
|
|
|
|
$
|
5
|
|
In millions
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative
(Effective Portion) |
|
|
|
Amount of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations
(Effective Portion) |
|
|
|
Amount of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships
|
For the three months ended September 30, 2016
|
|
For the three months ended September 30, 2015
|
|
Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations (Effective Portion)
|
|
For the three months ended September 30, 2016
|
|
For the three months ended September 30, 2015
|
|
Location of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|
For the three months ended September 30, 2016
|
|
For the three months ended September 30, 2015
|
||||||||||||
Interest rate swap
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Interest expense
|
|
$
|
—
|
|
|
$
|
2
|
|
|
Interest expense
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange contracts
|
$
|
4
|
|
|
$
|
3
|
|
|
Cost of products
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
Other (expense), net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
In millions
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative
(Effective Portion) |
|
|
|
Amount of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations
(Effective Portion) |
|
|
|
Amount of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships
|
For the nine months ended September 30, 2016
|
|
For the nine months ended September 30, 2015
|
|
Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations (Effective Portion)
|
|
For the nine months ended September 30, 2016
|
|
For the nine months ended September 30, 2015
|
|
Location of (Gain) Loss Recognized in the Condensed Consolidated Statement of Operations (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|
For the nine months ended September 30, 2016
|
|
For the nine months ended September 30, 2015
|
||||||||||||
Interest rate swap
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
Interest expense
|
|
$
|
2
|
|
|
$
|
4
|
|
|
Interest expense
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange contracts
|
$
|
5
|
|
|
$
|
11
|
|
|
Cost of products
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
Other (expense), net
|
|
$
|
—
|
|
|
$
|
—
|
|
In millions
|
|
|
Amount of Gain (Loss) Recognized in the
Condensed Consolidated Statement of Operations
|
||||||||||||||
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
Derivatives not Designated as Hedging Instruments
|
Location of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Foreign exchange contracts
|
Other (expense), net
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
|
|
Fair Value Measurements at September 30, 2016 Using
|
||||||||||||
In millions
|
September 30, 2016
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Deposits held in money market mutual funds
(1)
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange contracts
(2)
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Total
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
(3)
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Total
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at December 31, 2015 Using
|
||||||||||||
In millions
|
December 31, 2015
|
|
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)
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange contracts
(2)
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Total
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
(3)
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
Foreign exchange contracts
(3)
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Total
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
•
|
Software
- Our software solutions include our automated teller machine (ATM) software application suite, cash management and video banking software, check and image processing software and customer-facing digital banking solutions. We offer an omni-channel retail software platform with a comprehensive suite of software applications, including point-of-sale (POS) software, and a suite of software applications for hospitality POS operations, and kitchen and restaurant management. We also offer other cloud (or software-as-a-service) solutions, hosted services, and online, mobile and transactional services and applications such as bill pay. Additionally, we provide ongoing software support and maintenance services, as well as consulting and implementation services for our software solutions.
|
•
|
Services
- Our service solutions include maintenance and repair services for our hardware solutions as well as for third party products, and support services for our hardware solutions. Additionally, we provide managed services as well as other services, including site assessment and preparation, staging, installation and implementation and systems management services.
|
•
|
Hardware
- Our hardware solutions include a comprehensive line of ATMs, self-checkout (SCO), and mobile and other point of sale (POS) products. Additionally, we also offer printer consumables.
|
In millions
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Revenue by segment
|
|
|
|
|
|
|
|
||||||||
Software
|
$
|
468
|
|
|
$
|
434
|
|
|
$
|
1,339
|
|
|
$
|
1,288
|
|
Services
|
591
|
|
|
563
|
|
|
1,708
|
|
|
1,628
|
|
||||
Hardware
|
618
|
|
|
616
|
|
|
1,694
|
|
|
1,777
|
|
||||
Consolidated revenue
|
1,677
|
|
|
1,613
|
|
|
4,741
|
|
|
4,693
|
|
||||
Operating income by segment
|
|
|
|
|
|
|
|
||||||||
Software
|
146
|
|
|
135
|
|
|
405
|
|
|
382
|
|
||||
Services
|
56
|
|
|
49
|
|
|
139
|
|
|
133
|
|
||||
Hardware
(1)
|
28
|
|
|
30
|
|
|
32
|
|
|
45
|
|
||||
Subtotal - segment operating income
|
230
|
|
|
214
|
|
|
576
|
|
|
560
|
|
||||
Other adjustments
(2)
|
41
|
|
|
46
|
|
|
123
|
|
|
563
|
|
||||
Income from operations
|
$
|
189
|
|
|
$
|
168
|
|
|
$
|
453
|
|
|
$
|
(3
|
)
|
(1)
|
On May 27, 2016, NCR completed the sale of all but the Middle East and Africa (MEA) assets of its Interactive Printer Solutions (IPS) business to Atlas Holdings LLC. The sale included all dedicated assets of the IPS division worldwide, other than in the MEA region. Accordingly, the revenue and operating income results exclude the results of the IPS operations, except for the IPS MEA operations, from May 27, 2016 through the end of the third quarter of
2016
.
|
(2)
|
The following table presents the other adjustments for NCR:
|
In millions
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Restructuring / transformation costs
|
$
|
8
|
|
|
$
|
12
|
|
|
$
|
23
|
|
|
$
|
36
|
|
Acquisition-related amortization of intangible assets
|
31
|
|
|
31
|
|
|
95
|
|
|
94
|
|
||||
Acquisition-related costs
|
2
|
|
|
2
|
|
|
5
|
|
|
7
|
|
||||
OFAC and FCPA investigations
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Pension mark-to-market adjustments
|
—
|
|
|
1
|
|
|
—
|
|
|
425
|
|
||||
Total other adjustments
|
$
|
41
|
|
|
$
|
46
|
|
|
$
|
123
|
|
|
$
|
563
|
|
In millions
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Product revenue
|
$
|
708
|
|
|
$
|
688
|
|
|
$
|
1,932
|
|
|
$
|
1,995
|
|
Professional services and installation services revenue
|
266
|
|
|
242
|
|
|
729
|
|
|
676
|
|
||||
Recurring revenue, including maintenance and cloud revenue
|
703
|
|
|
683
|
|
|
2,080
|
|
|
2,022
|
|
||||
Total revenue
|
$
|
1,677
|
|
|
$
|
1,613
|
|
|
$
|
4,741
|
|
|
$
|
4,693
|
|
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, 2015
|
$
|
(172
|
)
|
$
|
23
|
|
$
|
(1
|
)
|
$
|
(150
|
)
|
Other comprehensive (loss) before reclassifications
|
(16
|
)
|
—
|
|
3
|
|
(13
|
)
|
||||
Amounts reclassified from AOCI
|
—
|
|
(11
|
)
|
2
|
|
(9
|
)
|
||||
Net current period other comprehensive (loss) income
|
(16
|
)
|
(11
|
)
|
5
|
|
(22
|
)
|
||||
Balance as of September 30, 2016
|
$
|
(188
|
)
|
$
|
12
|
|
$
|
4
|
|
$
|
(172
|
)
|
|
|
For the three months ended September 30, 2016
|
||||||||||||
|
Employee Benefit Plans
|
|
|
|
||||||||||
In millions
|
Actuarial Losses Recognized
|
Amortization of Prior Service Benefit
|
Effective Cash Flow Hedges
|
|
Total
|
|||||||||
Affected line in Condensed Consolidated Statement of Operations:
|
|
|
|
|
|
|||||||||
|
Cost of services
|
$
|
(1
|
)
|
$
|
(3
|
)
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
Selling, general and administrative expenses
|
1
|
|
(1
|
)
|
—
|
|
|
—
|
|
||||
|
Total before tax
|
$
|
—
|
|
$
|
(4
|
)
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
Tax expense
|
|
|
|
|
2
|
|
|||||||
|
Total reclassifications, net of tax
|
|
|
|
|
$
|
(2
|
)
|
|
|
For the three months ended September 30, 2015
|
||||||||||||
|
Employee Benefit Plans
|
|
|
|
||||||||||
In millions
|
Actuarial Losses Recognized
|
Amortization of Prior Service Benefit
|
Effective Cash Flow Hedges
|
|
Total
|
|||||||||
Affected line in Condensed Consolidated Statement of Operations:
|
|
|
|
|
|
|||||||||
|
Cost of products
|
—
|
|
$
|
(1
|
)
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
|
Cost of services
|
—
|
|
(3
|
)
|
—
|
|
|
(3
|
)
|
||||
|
Selling, general and administrative expenses
|
1
|
|
—
|
|
—
|
|
|
1
|
|
||||
|
Research and development expenses
|
—
|
|
(1
|
)
|
—
|
|
|
(1
|
)
|
||||
|
Interest expense
|
—
|
|
—
|
|
2
|
|
|
2
|
|
||||
|
Total before tax
|
$
|
1
|
|
$
|
(5
|
)
|
$
|
(1
|
)
|
|
$
|
(5
|
)
|
|
Tax expense
|
|
|
|
|
2
|
|
|||||||
|
Total reclassifications, net of tax
|
|
|
|
|
$
|
(3
|
)
|
|
|
For the nine months ended September 30, 2016
|
||||||||||||
|
Employee Benefit Plans
|
|
|
|
||||||||||
In millions
|
Actuarial Losses Recognized
|
Amortization of Prior Service Benefit
|
Effective Cash Flow Hedges
|
|
Total
|
|||||||||
Affected line in Condensed Consolidated Statement of Operations:
|
|
|
|
|
|
|||||||||
|
Cost of services
|
$
|
(1
|
)
|
$
|
(8
|
)
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
Selling, general and administrative expenses
|
—
|
|
(4
|
)
|
—
|
|
|
(4
|
)
|
||||
|
Research and development expenses
|
—
|
|
(2
|
)
|
—
|
|
|
(2
|
)
|
||||
|
Interest expense
|
—
|
|
—
|
|
2
|
|
|
2
|
|
||||
|
Total before tax
|
$
|
(1
|
)
|
$
|
(14
|
)
|
$
|
2
|
|
|
$
|
(13
|
)
|
|
Tax expense
|
|
|
|
|
4
|
|
|||||||
|
Total reclassifications, net of tax
|
|
|
|
|
$
|
(9
|
)
|
|
|
For the nine months ended September 30, 2015
|
||||||||||||
|
Employee Benefit Plans
|
|
|
|
||||||||||
In millions
|
Actuarial Losses Recognized
|
Amortization of Prior Service Benefit
|
Effective Cash Flow Hedges
|
|
Total
|
|||||||||
Affected line in Condensed Consolidated Statement of Operations:
|
|
|
|
|
|
|||||||||
|
Cost of products
|
$
|
—
|
|
$
|
(1
|
)
|
$
|
(7
|
)
|
|
$
|
(8
|
)
|
|
Cost of services
|
1
|
|
(8
|
)
|
—
|
|
|
(7
|
)
|
||||
|
Selling, general and administrative expenses
|
1
|
|
(5
|
)
|
—
|
|
|
(4
|
)
|
||||
|
Research and development expenses
|
—
|
|
(2
|
)
|
—
|
|
|
(2
|
)
|
||||
|
Interest expense
|
—
|
|
—
|
|
4
|
|
|
4
|
|
||||
|
Total before tax
|
$
|
2
|
|
$
|
(16
|
)
|
$
|
(3
|
)
|
|
$
|
(17
|
)
|
|
Tax expense
|
|
|
|
|
6
|
|
|||||||
|
Total reclassifications, net of tax
|
|
|
|
|
$
|
(11
|
)
|
In millions
|
September 30, 2016
|
|
December 31, 2015
|
||||
Accounts receivable
|
|
|
|
||||
Trade
|
$
|
1,372
|
|
|
$
|
1,259
|
|
Other
|
56
|
|
|
39
|
|
||
Accounts receivable, gross
|
1,428
|
|
|
1,298
|
|
||
Less: allowance for doubtful accounts
|
(41
|
)
|
|
(47
|
)
|
||
Total accounts receivable, net
|
$
|
1,387
|
|
|
$
|
1,251
|
|
In millions
|
September 30, 2016
|
|
December 31, 2015
|
||||
Inventories
|
|
|
|
||||
Work in process and raw materials
|
$
|
176
|
|
|
$
|
137
|
|
Finished goods
|
205
|
|
|
129
|
|
||
Service parts
|
395
|
|
|
377
|
|
||
Total inventories
|
$
|
776
|
|
|
$
|
643
|
|
In millions
|
September 30, 2016
|
|
December 31, 2015
|
||||
Other current assets
|
|
|
|
||||
Held for sale assets
|
$
|
—
|
|
|
$
|
89
|
|
Other
|
270
|
|
|
238
|
|
||
Total other current assets
|
$
|
270
|
|
|
$
|
327
|
|
•
|
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.
|
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
|
|||||||||||||||||||
For the three months ended September 30, 2016
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Product revenue
|
$
|
352
|
|
|
$
|
15
|
|
|
$
|
441
|
|
|
$
|
(100
|
)
|
|
$
|
708
|
|
Service revenue
|
410
|
|
|
9
|
|
|
550
|
|
|
|
|
|
969
|
|
|||||
Total revenue
|
762
|
|
|
24
|
|
|
991
|
|
|
(100
|
)
|
|
1,677
|
|
|||||
Cost of products
|
277
|
|
|
14
|
|
|
337
|
|
|
(100
|
)
|
|
528
|
|
|||||
Cost of services
|
321
|
|
|
3
|
|
|
348
|
|
|
—
|
|
|
672
|
|
|||||
Selling, general and administrative expenses
|
114
|
|
|
1
|
|
|
110
|
|
|
—
|
|
|
225
|
|
|||||
Research and development expenses
|
26
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
56
|
|
|||||
Restructuring-related charges
|
4
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
7
|
|
|||||
Total operating expenses
|
742
|
|
|
18
|
|
|
828
|
|
|
(100
|
)
|
|
1,488
|
|
|||||
Income (loss) from operations
|
20
|
|
|
6
|
|
|
163
|
|
|
—
|
|
|
189
|
|
|||||
Interest expense
|
(40
|
)
|
|
—
|
|
|
(18
|
)
|
|
17
|
|
|
(41
|
)
|
|||||
Other (expense) income, net
|
10
|
|
|
(6
|
)
|
|
5
|
|
|
(17
|
)
|
|
(8
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
(10
|
)
|
|
—
|
|
|
150
|
|
|
—
|
|
|
140
|
|
|||||
Income tax expense (benefit)
|
2
|
|
|
7
|
|
|
22
|
|
|
—
|
|
|
31
|
|
|||||
Income (loss) from continuing operations before earnings in subsidiaries
|
(12
|
)
|
|
(7
|
)
|
|
128
|
|
|
—
|
|
|
109
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
119
|
|
|
115
|
|
|
—
|
|
|
(234
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
107
|
|
|
108
|
|
|
128
|
|
|
(234
|
)
|
|
109
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net income (loss)
|
$
|
105
|
|
|
$
|
108
|
|
|
$
|
128
|
|
|
$
|
(234
|
)
|
|
$
|
107
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Net income (loss) attributable to NCR
|
$
|
105
|
|
|
$
|
108
|
|
|
$
|
126
|
|
|
$
|
(234
|
)
|
|
$
|
105
|
|
Total comprehensive income (loss)
|
109
|
|
|
104
|
|
|
133
|
|
|
(236
|
)
|
|
110
|
|
|||||
Less comprehensive income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
109
|
|
|
$
|
104
|
|
|
$
|
132
|
|
|
$
|
(236
|
)
|
|
$
|
109
|
|
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
|
|||||||||||||||||||
For the three months ended September 30, 2015
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Product revenue
|
$
|
301
|
|
|
$
|
32
|
|
|
$
|
703
|
|
|
$
|
(348
|
)
|
|
$
|
688
|
|
Service revenue
|
394
|
|
|
8
|
|
|
523
|
|
|
—
|
|
|
925
|
|
|||||
Total revenue
|
695
|
|
|
40
|
|
|
1,226
|
|
|
(348
|
)
|
|
1,613
|
|
|||||
Cost of products
|
224
|
|
|
13
|
|
|
623
|
|
|
(348
|
)
|
|
512
|
|
|||||
Cost of services
|
282
|
|
|
3
|
|
|
359
|
|
|
—
|
|
|
644
|
|
|||||
Selling, general and administrative expenses
|
122
|
|
|
1
|
|
|
101
|
|
|
—
|
|
|
224
|
|
|||||
Research and development expenses
|
32
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
53
|
|
|||||
Restructuring-related charges
|
7
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
12
|
|
|||||
Total operating expenses
|
667
|
|
|
17
|
|
|
1,109
|
|
|
(348
|
)
|
|
1,445
|
|
|||||
Income (loss) from operations
|
28
|
|
|
23
|
|
|
117
|
|
|
—
|
|
|
168
|
|
|||||
Interest expense
|
(41
|
)
|
|
—
|
|
|
(19
|
)
|
|
18
|
|
|
(42
|
)
|
|||||
Other (expense) income, net
|
13
|
|
|
—
|
|
|
(2
|
)
|
|
(18
|
)
|
|
(7
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
—
|
|
|
23
|
|
|
96
|
|
|
—
|
|
|
119
|
|
|||||
Income tax expense (benefit)
|
(10
|
)
|
|
14
|
|
|
12
|
|
|
—
|
|
|
16
|
|
|||||
Income (loss) from continuing operations before earnings in subsidiaries
|
10
|
|
|
9
|
|
|
84
|
|
|
—
|
|
|
103
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
93
|
|
|
113
|
|
|
—
|
|
|
(206
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
103
|
|
|
122
|
|
|
84
|
|
|
(206
|
)
|
|
103
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
(5
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net income (loss)
|
$
|
98
|
|
|
$
|
122
|
|
|
$
|
85
|
|
|
$
|
(206
|
)
|
|
$
|
99
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Net income (loss) attributable to NCR
|
$
|
98
|
|
|
$
|
122
|
|
|
$
|
84
|
|
|
$
|
(206
|
)
|
|
$
|
98
|
|
Total comprehensive income (loss)
|
60
|
|
|
50
|
|
|
45
|
|
|
(98
|
)
|
|
57
|
|
|||||
Less comprehensive income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
60
|
|
|
$
|
50
|
|
|
$
|
48
|
|
|
$
|
(98
|
)
|
|
$
|
60
|
|
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
|
|||||||||||||||||||
For the nine months ended September 30, 2016
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Product revenue
|
$
|
898
|
|
|
$
|
70
|
|
|
$
|
1,234
|
|
|
$
|
(270
|
)
|
|
$
|
1,932
|
|
Service revenue
|
1,177
|
|
|
26
|
|
|
1,606
|
|
|
—
|
|
|
2,809
|
|
|||||
Total revenue
|
2,075
|
|
|
96
|
|
|
2,840
|
|
|
(270
|
)
|
|
4,741
|
|
|||||
Cost of products
|
701
|
|
|
30
|
|
|
1,026
|
|
|
(270
|
)
|
|
1,487
|
|
|||||
Cost of services
|
885
|
|
|
9
|
|
|
1,057
|
|
|
—
|
|
|
1,951
|
|
|||||
Selling, general and administrative expenses
|
361
|
|
|
3
|
|
|
314
|
|
|
—
|
|
|
678
|
|
|||||
Research and development expenses
|
83
|
|
|
—
|
|
|
76
|
|
|
—
|
|
|
159
|
|
|||||
Restructuring-related charges
|
10
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
13
|
|
|||||
Total operating expenses
|
2,040
|
|
|
42
|
|
|
2,476
|
|
|
(270
|
)
|
|
4,288
|
|
|||||
Income (loss) from operations
|
35
|
|
|
54
|
|
|
364
|
|
|
—
|
|
|
453
|
|
|||||
Interest expense
|
(126
|
)
|
|
—
|
|
|
(56
|
)
|
|
52
|
|
|
(130
|
)
|
|||||
Other (expense) income, net
|
35
|
|
|
(11
|
)
|
|
(5
|
)
|
|
(52
|
)
|
|
(33
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
(56
|
)
|
|
43
|
|
|
303
|
|
|
—
|
|
|
290
|
|
|||||
Income tax expense (benefit)
|
(19
|
)
|
|
32
|
|
|
62
|
|
|
—
|
|
|
75
|
|
|||||
Income (loss) from continuing operations before earnings in subsidiaries
|
(37
|
)
|
|
11
|
|
|
241
|
|
|
—
|
|
|
215
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
252
|
|
|
252
|
|
|
—
|
|
|
(504
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
215
|
|
|
263
|
|
|
241
|
|
|
(504
|
)
|
|
215
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net income (loss)
|
$
|
213
|
|
|
$
|
263
|
|
|
$
|
241
|
|
|
$
|
(504
|
)
|
|
$
|
213
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to NCR
|
$
|
213
|
|
|
$
|
263
|
|
|
$
|
241
|
|
|
$
|
(504
|
)
|
|
$
|
213
|
|
Total comprehensive income (loss)
|
191
|
|
|
209
|
|
|
208
|
|
|
(424
|
)
|
|
184
|
|
|||||
Less comprehensive income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
191
|
|
|
$
|
209
|
|
|
$
|
215
|
|
|
$
|
(424
|
)
|
|
$
|
191
|
|
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
|
|||||||||||||||||||
For the nine months ended September 30, 2015
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Product revenue
|
$
|
878
|
|
|
$
|
78
|
|
|
$
|
1,599
|
|
|
$
|
(560
|
)
|
|
$
|
1,995
|
|
Service revenue
|
1,109
|
|
|
23
|
|
|
1,566
|
|
|
—
|
|
|
2,698
|
|
|||||
Total revenue
|
1,987
|
|
|
101
|
|
|
3,165
|
|
|
(560
|
)
|
|
4,693
|
|
|||||
Cost of products
|
683
|
|
|
32
|
|
|
1,384
|
|
|
(560
|
)
|
|
1,539
|
|
|||||
Cost of services
|
792
|
|
|
8
|
|
|
1,361
|
|
|
—
|
|
|
2,161
|
|
|||||
Selling, general and administrative expenses
|
350
|
|
|
4
|
|
|
434
|
|
|
—
|
|
|
788
|
|
|||||
Research and development expenses
|
76
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
175
|
|
|||||
Restructuring-related charges
|
14
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
33
|
|
|||||
Total operating expenses
|
1,915
|
|
|
44
|
|
|
3,297
|
|
|
(560
|
)
|
|
4,696
|
|
|||||
Income (loss) from operations
|
72
|
|
|
57
|
|
|
(132
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Interest expense
|
(128
|
)
|
|
—
|
|
|
(58
|
)
|
|
55
|
|
|
(131
|
)
|
|||||
Other (expense) income, net
|
33
|
|
|
2
|
|
|
6
|
|
|
(55
|
)
|
|
(14
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
(23
|
)
|
|
59
|
|
|
(184
|
)
|
|
—
|
|
|
(148
|
)
|
|||||
Income tax expense (benefit)
|
(9
|
)
|
|
30
|
|
|
29
|
|
|
—
|
|
|
50
|
|
|||||
Income (loss) from continuing operations before earnings in subsidiaries
|
(14
|
)
|
|
29
|
|
|
(213
|
)
|
|
—
|
|
|
(198
|
)
|
|||||
Equity in earnings of consolidated subsidiaries
|
(187
|
)
|
|
(190
|
)
|
|
—
|
|
|
377
|
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
(201
|
)
|
|
(161
|
)
|
|
(213
|
)
|
|
377
|
|
|
(198
|
)
|
|||||
Income (loss) from discontinued operations, net of tax
|
(5
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net income (loss)
|
$
|
(206
|
)
|
|
$
|
(161
|
)
|
|
$
|
(212
|
)
|
|
$
|
377
|
|
|
$
|
(202
|
)
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||
Net income (loss) attributable to NCR
|
$
|
(206
|
)
|
|
$
|
(161
|
)
|
|
$
|
(216
|
)
|
|
$
|
377
|
|
|
$
|
(206
|
)
|
Total comprehensive income (loss)
|
(245
|
)
|
|
(196
|
)
|
|
(264
|
)
|
|
457
|
|
|
(248
|
)
|
|||||
Less comprehensive income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
(245
|
)
|
|
$
|
(196
|
)
|
|
$
|
(261
|
)
|
|
$
|
457
|
|
|
$
|
(245
|
)
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||
September 30, 2016
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
293
|
|
|
$
|
—
|
|
|
$
|
318
|
|
Accounts receivable, net
|
50
|
|
|
26
|
|
|
1,311
|
|
|
—
|
|
|
1,387
|
|
|||||
Inventories
|
289
|
|
|
6
|
|
|
481
|
|
|
—
|
|
|
776
|
|
|||||
Due from affiliates
|
620
|
|
|
1,417
|
|
|
526
|
|
|
(2,563
|
)
|
|
—
|
|
|||||
Other current assets
|
118
|
|
|
34
|
|
|
186
|
|
|
(68
|
)
|
|
270
|
|
|||||
Total current assets
|
1,089
|
|
|
1,496
|
|
|
2,797
|
|
|
(2,631
|
)
|
|
2,751
|
|
|||||
Property, plant and equipment, net
|
124
|
|
|
1
|
|
|
164
|
|
|
—
|
|
|
289
|
|
|||||
Goodwill
|
988
|
|
|
—
|
|
|
1,749
|
|
|
—
|
|
|
2,737
|
|
|||||
Intangibles, net
|
183
|
|
|
—
|
|
|
521
|
|
|
—
|
|
|
704
|
|
|||||
Prepaid pension cost
|
—
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
132
|
|
|||||
Deferred income taxes
|
442
|
|
|
152
|
|
|
81
|
|
|
(129
|
)
|
|
546
|
|
|||||
Investments in subsidiaries
|
3,434
|
|
|
1,585
|
|
|
—
|
|
|
(5,019
|
)
|
|
—
|
|
|||||
Due from affiliates
|
1,054
|
|
|
18
|
|
|
37
|
|
|
(1,109
|
)
|
|
—
|
|
|||||
Other assets
|
390
|
|
|
58
|
|
|
104
|
|
|
—
|
|
|
552
|
|
|||||
Total assets
|
$
|
7,704
|
|
|
$
|
3,310
|
|
|
$
|
5,585
|
|
|
$
|
(8,888
|
)
|
|
$
|
7,711
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
210
|
|
|
$
|
—
|
|
|
$
|
256
|
|
Accounts payable
|
287
|
|
|
1
|
|
|
430
|
|
|
—
|
|
|
718
|
|
|||||
Payroll and benefits liabilities
|
108
|
|
|
1
|
|
|
103
|
|
|
—
|
|
|
212
|
|
|||||
Deferred service revenue and customer deposits
|
188
|
|
|
10
|
|
|
273
|
|
|
—
|
|
|
471
|
|
|||||
Due to affiliates
|
1,817
|
|
|
129
|
|
|
617
|
|
|
(2,563
|
)
|
|
—
|
|
|||||
Other current liabilities
|
158
|
|
|
1
|
|
|
254
|
|
|
(68
|
)
|
|
345
|
|
|||||
Total current liabilities
|
2,604
|
|
|
142
|
|
|
1,887
|
|
|
(2,631
|
)
|
|
2,002
|
|
|||||
Long-term debt
|
3,028
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
3,033
|
|
|||||
Pension and indemnity plan liabilities
|
448
|
|
|
—
|
|
|
261
|
|
|
—
|
|
|
709
|
|
|||||
Postretirement and postemployment benefits liabilities
|
26
|
|
|
2
|
|
|
99
|
|
|
—
|
|
|
127
|
|
|||||
Income tax accruals
|
14
|
|
|
13
|
|
|
142
|
|
|
—
|
|
|
169
|
|
|||||
Due to affiliates
|
17
|
|
|
37
|
|
|
1,055
|
|
|
(1,109
|
)
|
|
—
|
|
|||||
Other liabilities
|
60
|
|
|
11
|
|
|
209
|
|
|
(129
|
)
|
|
151
|
|
|||||
Total liabilities
|
6,197
|
|
|
205
|
|
|
3,658
|
|
|
(3,869
|
)
|
|
6,191
|
|
|||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||
Series A convertible preferred stock
|
835
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
835
|
|
|||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total NCR stockholders’ equity
|
672
|
|
|
3,105
|
|
|
1,914
|
|
|
(5,019
|
)
|
|
672
|
|
|||||
Noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Total stockholders’ equity
|
672
|
|
|
3,105
|
|
|
1,917
|
|
|
(5,019
|
)
|
|
675
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
7,704
|
|
|
$
|
3,310
|
|
|
$
|
5,585
|
|
|
$
|
(8,888
|
)
|
|
$
|
7,711
|
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||
December 31, 2015
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
15
|
|
|
$
|
20
|
|
|
293
|
|
|
$
|
—
|
|
|
$
|
328
|
|
|
Accounts receivable, net
|
94
|
|
|
33
|
|
|
1,124
|
|
|
—
|
|
|
1,251
|
|
|||||
Inventories
|
233
|
|
|
6
|
|
|
404
|
|
|
—
|
|
|
643
|
|
|||||
Due from affiliates
|
571
|
|
|
1,325
|
|
|
286
|
|
|
(2,182
|
)
|
|
—
|
|
|||||
Other current assets
|
129
|
|
|
31
|
|
|
206
|
|
|
(39
|
)
|
|
327
|
|
|||||
Total current assets
|
1,042
|
|
|
1,415
|
|
|
2,313
|
|
|
(2,221
|
)
|
|
2,549
|
|
|||||
Property, plant and equipment, net
|
140
|
|
|
1
|
|
|
181
|
|
|
—
|
|
|
322
|
|
|||||
Goodwill
|
979
|
|
|
—
|
|
|
1,754
|
|
|
—
|
|
|
2,733
|
|
|||||
Intangibles, net
|
212
|
|
|
—
|
|
|
586
|
|
|
—
|
|
|
798
|
|
|||||
Prepaid pension cost
|
—
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
130
|
|
|||||
Deferred income taxes
|
475
|
|
|
152
|
|
|
84
|
|
|
(129
|
)
|
|
582
|
|
|||||
Investments in subsidiaries
|
3,173
|
|
|
1,449
|
|
|
—
|
|
|
(4,622
|
)
|
|
—
|
|
|||||
Due from affiliates
|
1,072
|
|
|
17
|
|
|
38
|
|
|
(1,127
|
)
|
|
—
|
|
|||||
Other assets
|
362
|
|
|
55
|
|
|
104
|
|
|
—
|
|
|
521
|
|
|||||
Total assets
|
$
|
7,455
|
|
|
$
|
3,089
|
|
|
$
|
5,190
|
|
|
$
|
(8,099
|
)
|
|
$
|
7,635
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
13
|
|
Accounts payable
|
280
|
|
|
—
|
|
|
377
|
|
|
—
|
|
|
657
|
|
|||||
Payroll and benefits liabilities
|
94
|
|
|
1
|
|
|
94
|
|
|
—
|
|
|
189
|
|
|||||
Deferred service revenue and customer deposits
|
180
|
|
|
24
|
|
|
272
|
|
|
—
|
|
|
476
|
|
|||||
Due to affiliates
|
1,405
|
|
|
137
|
|
|
640
|
|
|
(2,182
|
)
|
|
—
|
|
|||||
Other current liabilities
|
215
|
|
|
3
|
|
|
267
|
|
|
(39
|
)
|
|
446
|
|
|||||
Total current liabilities
|
2,178
|
|
|
165
|
|
|
1,659
|
|
|
(2,221
|
)
|
|
1,781
|
|
|||||
Long-term debt
|
3,229
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
3,239
|
|
|||||
Pension and indemnity plan liabilities
|
433
|
|
|
—
|
|
|
263
|
|
|
—
|
|
|
696
|
|
|||||
Postretirement and postemployment benefits liabilities
|
27
|
|
|
3
|
|
|
103
|
|
|
—
|
|
|
133
|
|
|||||
Income tax accruals
|
14
|
|
|
13
|
|
|
140
|
|
|
—
|
|
|
167
|
|
|||||
Due to affiliates
|
18
|
|
|
37
|
|
|
1,072
|
|
|
(1,127
|
)
|
|
—
|
|
|||||
Other liabilities
|
38
|
|
|
—
|
|
|
170
|
|
|
(129
|
)
|
|
79
|
|
|||||
Total liabilities
|
5,937
|
|
|
218
|
|
|
3,417
|
|
|
(3,477
|
)
|
|
6,095
|
|
|||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|||||
Series A convertible preferred stock
|
798
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
798
|
|
|||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Total NCR stockholders’ equity
|
720
|
|
|
2,871
|
|
|
1,751
|
|
|
(4,622
|
)
|
|
720
|
|
|||||
Noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||
Total stockholders’ equity
|
720
|
|
|
2,871
|
|
|
1,757
|
|
|
(4,622
|
)
|
|
726
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
7,455
|
|
|
$
|
3,089
|
|
|
$
|
5,190
|
|
|
$
|
(8,099
|
)
|
|
$
|
7,635
|
|
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||
For the nine months ended September 30, 2016
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
359
|
|
|
$
|
(103
|
)
|
|
$
|
116
|
|
|
$
|
(3
|
)
|
|
$
|
369
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property, plant and equipment
|
(16
|
)
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(45
|
)
|
|||||
Additions to capitalized software
|
(70
|
)
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
(115
|
)
|
|||||
Proceeds from (payments of) intercompany notes
|
166
|
|
|
98
|
|
|
—
|
|
|
(264
|
)
|
|
—
|
|
|||||
Investments in equity affiliates
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|||||
Proceeds from divestiture
|
22
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
47
|
|
|||||
Other investing activities, net
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Net cash provided by (used in) investing activities
|
85
|
|
|
98
|
|
|
(49
|
)
|
|
(255
|
)
|
|
(121
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short term borrowings, net
|
(4
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|||||
Payments on term credit facilities
|
(78
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(84
|
)
|
|||||
Payments on revolving credit facilities
|
(656
|
)
|
|
—
|
|
|
(80
|
)
|
|
—
|
|
|
(736
|
)
|
|||||
Borrowings on revolving credit facilities
|
576
|
|
|
—
|
|
|
280
|
|
|
—
|
|
|
856
|
|
|||||
Repurchase of Company common stock
|
(250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|||||
Debt issuance cost
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Proceeds from employee stock plans
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Other financing activities
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Equity contribution
|
—
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
—
|
|
|||||
Dividend distribution to consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
3
|
|
|
—
|
|
|||||
Borrowings (repayments) of intercompany notes
|
—
|
|
|
—
|
|
|
(264
|
)
|
|
264
|
|
|
—
|
|
|||||
Tax withholding payments on behalf of employees
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Net cash provided by (used in) financing activities
|
(417
|
)
|
|
—
|
|
|
(64
|
)
|
|
258
|
|
|
(223
|
)
|
|||||
Cash flows from discontinued operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in operating activities
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Increase (decrease) in cash and cash equivalents
|
(3
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
15
|
|
|
20
|
|
|
293
|
|
|
—
|
|
|
328
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
293
|
|
|
$
|
—
|
|
|
$
|
318
|
|
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||
For the nine months ended September 30, 2015
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
235
|
|
|
$
|
(226
|
)
|
|
$
|
451
|
|
|
$
|
(44
|
)
|
|
$
|
416
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property, plant and equipment
|
(16
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(47
|
)
|
|||||
Additions to capitalized software
|
(72
|
)
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
(117
|
)
|
|||||
Proceeds from (payments of) intercompany notes
|
169
|
|
|
227
|
|
|
—
|
|
|
(396
|
)
|
|
—
|
|
|||||
Investments in equity affiliates
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other investing activities, net
|
(7
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||
Net cash provided by (used in) investing activities
|
73
|
|
|
227
|
|
|
(69
|
)
|
|
(395
|
)
|
|
(164
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Payments on term credit facilities
|
(307
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(312
|
)
|
|||||
Payments on revolving credit facilities
|
(404
|
)
|
|
—
|
|
|
(573
|
)
|
|
—
|
|
|
(977
|
)
|
|||||
Borrowings on revolving credit facilities
|
404
|
|
|
—
|
|
|
477
|
|
|
—
|
|
|
881
|
|
|||||
Proceeds from employee stock plans
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||
Equity contribution
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||||
Dividend distribution to consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
44
|
|
|
—
|
|
|||||
Borrowings (repayments) of intercompany notes
|
—
|
|
|
—
|
|
|
(396
|
)
|
|
396
|
|
|
—
|
|
|||||
Tax withholding payments on behalf of employees
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||
Net cash provided by (used in) financing activities
|
(305
|
)
|
|
—
|
|
|
(540
|
)
|
|
439
|
|
|
(406
|
)
|
|||||
Cash flows from discontinued operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in operating activities
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|||||
Increase (decrease) in cash and cash equivalents
|
(24
|
)
|
|
1
|
|
|
(185
|
)
|
|
—
|
|
|
(208
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
44
|
|
|
9
|
|
|
458
|
|
|
—
|
|
|
511
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
20
|
|
|
$
|
10
|
|
|
$
|
273
|
|
|
$
|
—
|
|
|
$
|
303
|
|
Item 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
|
•
|
Revenue
increased
approximately
4%
from the prior year period, and increased
10%
excluding unfavorable foreign currency impacts and adjusting for the divestiture of our Interactive Printer Solutions (IPS) business; and
|
•
|
Software revenue increased
8%
from the prior year period, driven by software license growth of
25%
and cloud growth of
7%
.
|
•
|
Evolving our Business Model
- Shifting our business model to focus on growth of higher margin software and services revenue to grow our recurring revenue streams, and strengthen our long-term foundation.
|
•
|
Sales Enablement
- Developing a sales force enabled with a consultative selling model, supported by service teams and focused on delivery and customer interactions to leverage the innovative solutions we are bringing to market and gain share.
|
•
|
Services Transformation
- Enhancing our global service capability by improving our service positioning, increasing customer service attach rates for our products, improving profitability in our services business and aligning our services capability to support our solutions.
|
•
|
Investing in Innovation
- Optimizing our investments in areas with the greatest potential for profitable growth, such as cloud solutions and professional, managed and other services.
|
•
|
Cultivating our Culture and Team
- Organizing and recruiting with an eye toward the future, and investing in, training and developing our employees to accelerate the delivery of our innovative solutions and to focus on the needs of our customers and changes in consumer behavior.
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
In millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenue
|
$
|
1,677
|
|
|
$
|
1,613
|
|
|
$
|
4,741
|
|
|
$
|
4,693
|
|
Gross margin
|
$
|
477
|
|
|
$
|
457
|
|
|
$
|
1,303
|
|
|
$
|
993
|
|
Gross margin as a percentage of revenue
|
28.4
|
%
|
|
28.3
|
%
|
|
27.5
|
%
|
|
21.2
|
%
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
$
|
225
|
|
|
$
|
224
|
|
|
$
|
678
|
|
|
$
|
788
|
|
Research and development expenses
|
56
|
|
|
53
|
|
|
159
|
|
|
175
|
|
||||
Restructuring-related charges
|
7
|
|
|
12
|
|
|
13
|
|
|
33
|
|
||||
Income (loss) from operations
|
$
|
189
|
|
|
$
|
168
|
|
|
$
|
453
|
|
|
$
|
(3
|
)
|
In millions
|
2016
|
% of Total
|
|
2015
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Adjusted Constant Currency
(1)
|
||||
Americas
|
$
|
986
|
|
58%
|
|
$
|
899
|
|
56%
|
|
10%
|
15%
|
Europe, Middle East Africa (EMEA)
|
464
|
|
28%
|
|
489
|
|
30%
|
|
(5)%
|
6%
|
||
Asia Pacific (APJ)
|
227
|
|
14%
|
|
225
|
|
14%
|
|
1%
|
(2)%
|
||
Consolidated revenue
|
$
|
1,677
|
|
100%
|
|
$
|
1,613
|
|
100%
|
|
4%
|
10%
|
In millions
|
2016
|
% of Total
|
|
2015
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Adjusted Constant Currency
(1)
|
||||
Americas
|
$
|
2,724
|
|
58%
|
|
$
|
2,576
|
|
55%
|
|
6%
|
9%
|
Europe, Middle East Africa (EMEA)
|
1,368
|
|
28%
|
|
1,434
|
|
31%
|
|
(5)%
|
1%
|
||
Asia Pacific (APJ)
|
649
|
|
14%
|
|
683
|
|
14%
|
|
(5)%
|
(5)%
|
||
Consolidated revenue
|
$
|
4,741
|
|
100%
|
|
$
|
4,693
|
|
100%
|
|
1%
|
5%
|
In millions
|
2016
|
% of Total
|
|
2015
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Adjusted Constant Currency
(1)
|
||||
Software
|
$
|
468
|
|
28%
|
|
$
|
434
|
|
27%
|
|
8%
|
7%
|
Services
|
591
|
|
35%
|
|
563
|
|
35%
|
|
5%
|
6%
|
||
Hardware
|
618
|
|
37%
|
|
616
|
|
38%
|
|
—%
|
16%
|
||
Consolidated revenue
|
$
|
1,677
|
|
100%
|
|
$
|
1,613
|
|
100%
|
|
4%
|
10%
|
In millions
|
2016
|
% of Total
|
|
2015
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Adjusted Constant Currency
(1)
|
||||
Software
|
$
|
1,339
|
|
28%
|
|
$
|
1,288
|
|
27%
|
|
4%
|
4%
|
Services
|
1,708
|
|
36%
|
|
1,628
|
|
35%
|
|
5%
|
7%
|
||
Hardware
|
1,694
|
|
36%
|
|
1,777
|
|
38%
|
|
(5)%
|
3%
|
||
Consolidated revenue
|
$
|
4,741
|
|
100%
|
|
4,693
|
|
100%
|
|
1%
|
5%
|
•
|
Software
- Our software solutions include our automated teller machine (ATM) software application suite, cash management and video banking software, check and image processing software and customer-facing digital banking solutions. We offer an omni-channel retail software platform with a comprehensive suite of software applications, including point-of-sale (POS) software, and a suite of software applications for hospitality POS operations, and kitchen and restaurant management. We also offer other cloud (or software-as-a-service) solutions, hosted services, and online, mobile and transactional services and applications such as bill pay. Additionally, we provide ongoing software support and maintenance services, as well as consulting and implementation services for our software solutions.
|
•
|
Services
- Our service solutions include maintenance and repair services for our hardware solutions as well as for third party products, and support services for our hardware solutions. Additionally, we provide managed services as well as other services, including site assessment and preparation, staging, installation and implementation and systems management services.
|
•
|
Hardware
- Our hardware solutions include a comprehensive line of ATMs, self-checkout (SCO), and mobile and other point of sale (POS) products. Additionally, we also offer printer consumables.
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
In millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenue
|
$
|
468
|
|
|
$
|
434
|
|
|
$
|
1,339
|
|
|
$
|
1,288
|
|
Operating income
|
$
|
146
|
|
|
$
|
135
|
|
|
$
|
405
|
|
|
$
|
382
|
|
Operating income as a percentage of revenue
|
31.2
|
%
|
|
31.1
|
%
|
|
30.2
|
%
|
|
29.7
|
%
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
In millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenue
|
$
|
591
|
|
|
$
|
563
|
|
|
$
|
1,708
|
|
|
$
|
1,628
|
|
Operating income
|
$
|
56
|
|
|
$
|
49
|
|
|
$
|
139
|
|
|
$
|
133
|
|
Operating income as a percentage of revenue
|
9.5
|
%
|
|
8.7
|
%
|
|
8.1
|
%
|
|
8.2
|
%
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
In millions
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenue
|
$
|
618
|
|
|
$
|
616
|
|
|
$
|
1,694
|
|
|
$
|
1,777
|
|
Operating income
|
$
|
28
|
|
|
$
|
30
|
|
|
$
|
32
|
|
|
$
|
45
|
|
Operating income as a percentage of revenue
|
4.5
|
%
|
|
4.9
|
%
|
|
1.9
|
%
|
|
2.5
|
%
|
|
Nine months ended September 30
|
||||||
In millions
|
2016
|
|
2015
|
||||
Net cash provided by operating activities
|
$
|
369
|
|
|
$
|
416
|
|
Less: Expenditures for property, plant and equipment
|
(45
|
)
|
|
(47
|
)
|
||
Less: Additions to capitalized software
|
(115
|
)
|
|
(117
|
)
|
||
Net cash used in discontinued operations
|
(30
|
)
|
|
(27
|
)
|
||
Free cash flow (non-GAAP)
|
$
|
179
|
|
|
$
|
225
|
|
In millions
|
Total Amounts
|
October 1, 2016 through
December 31, 2016
|
2017 - 2018
|
2019 - 2020
|
2021 & Thereafter
|
||||||||||
Debt obligations
|
$
|
3,320
|
|
$
|
214
|
|
$
|
113
|
|
$
|
180
|
|
$
|
2,813
|
|
Interest on debt obligations
|
843
|
|
42
|
|
286
|
|
277
|
|
238
|
|
|||||
Total obligations
|
$
|
4,163
|
|
$
|
256
|
|
$
|
399
|
|
$
|
457
|
|
$
|
3,051
|
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
Item 1.
|
LEGAL PROCEEDINGS
|
Item 1A.
|
RISK FACTORS
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
2.1
|
Separation and Distribution Agreement, dated as of August 27, 2007, between NCR Corporation and Teradata Corporation (Exhibit 10.1 to the Current Report on Form 8-K of Teradata Corporation dated September 6, 2007).
|
|
|
3.1
|
Articles of Amendment and Restatement of NCR Corporation (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q of NCR Corporation for the quarter ended June 30, 2016).
|
|
|
3.2
|
Bylaws of NCR Corporation, as amended and restated on October 11, 2016 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K of NCR Corporation dated October 11, 2016).
|
|
|
4.1
|
Common Stock Certificate of NCR Corporation (incorporated by reference to Exhibit 4.1 from the NCR Corporation Annual Report on Form 10-K for the year ended December 31, 1999).
|
|
|
4.2
|
Indenture, dated September 17, 2012, among NCR Corporation, as issuer, NCR International Inc. and Radiant Systems Inc. as subsidiary guarantors and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.01 to the Current Report on Form 8-K of NCR Corporation dated September 17, 2012).
|
|
|
4.3
|
Indenture, dated December 18, 2012, among NCR Corporation, as issuer, NCR International Inc. and Radiant Systems Inc. as subsidiary guarantors and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.01 to the Current Report on Form 8-K of NCR Corporation filed December 18, 2012).
|
|
|
4.4
|
Indenture, dated December 19, 2013, between NCR Escrow Corp. and U.S. Bank National Association relating to the $400 million aggregate principal amount of 5.875% senior notes due 2021 (the “5.875% Notes”) (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of NCR Corporation dated December 19, 2013 (the “December 19, 2013 Form 8-K”)).
|
|
|
4.5
|
First Supplemental Indenture relating to the 5.875% Notes, dated January 10, 2014, among NCR Corporation, NCR International, Inc. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of NCR Corporation dated January 10, 2014 (the “January 10, 2014 Form 8-K”)).
|
|
|
4.6
|
Indenture, dated December 19, 2013, between NCR Escrow Corp. and U.S. Bank National Association relating to the $700 million aggregate principal amount of 6.375% senior notes due 2023 (the “6.375% Notes”) (incorporated by reference to Exhibit 4.2 to the December 19, 2013 Form 8-K).
|
|
|
4.7
|
First Supplemental Indenture relating to the 6.375% Notes, dated January 10, 2014, among NCR Corporation, NCR International, Inc. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the January 10, 2014 Form 8-K).
|
|
|
10.1
|
Employment Contract, dated September 15, 2016, between NCR Corporation and Mark D. Benjamin.
|
|
|
31.1
|
Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
31.2
|
Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
32
|
Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101
|
Financials in XBRL Format.
|
|
|
|
|
NCR CORPORATION
|
||
|
|
|
|
|
Date:
|
October 28, 2016
|
By:
|
|
/s/ Robert Fishman
|
|
|
|
|
Robert Fishman
Executive Vice President and Chief Financial Officer
|
/s/ Bill Nuti
|
|
Bill Nuti
|
|
|
|
|
|
|
|
/s/ Mark D. Benjamin
|
|
Mark D. Benjamin
|
|
|
|
|
|
|
|
|
|
September 16, 2016
|
|
Date
|
|
|
|
/s/ Mark D. Benjamin
|
|
|
September 16, 2016
|
|
Mark D. Benjamin
|
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
October 28, 2016
|
|
/s/ William Nuti
|
|
|
|
William Nuti
|
|
|
|
Chairman of the Board and Chief Executive Officer
|
Date:
|
October 28, 2016
|
|
/s/ Robert Fishman
|
|
|
|
Robert Fishman
|
|
|
|
Executive Vice President and Chief Financial Officer
|
(1)
|
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
Dated:
|
October 28, 2016
|
|
/s/ William Nuti
|
|
|
|
William Nuti
|
|
|
|
Chairman of the Board and Chief Executive Officer
|
Dated:
|
October 28, 2016
|
|
/s/ Robert Fishman
|
|
|
|
Robert Fishman
|
|
|
|
Executive Vice President and Chief Financial Officer
|