Maryland
|
|
31-0387920
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
NCR
|
New York Stock Exchange
|
•
|
Consent of Independent Registered Public Accounting Firm, attached as Exhibit 23.1 to this report and incorporated herein by reference;
|
•
|
Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in Exhibit 99.1 to this report and incorporated herein by reference; and
|
•
|
Part II, Item 8: Financial Statements and Supplemental Data, included in Exhibit 99.2 to this report and incorporated herein by reference.
|
101
|
XBRL Instance Document and Related Items
|
NCR CORPORATION
|
||
|
|
|
By:
|
|
/s/ Andre J. Fernandez
|
|
|
Andre J. Fernandez
|
|
|
Executive Vice President and Chief Financial Officer
|
Item 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
|
•
|
Revenue was $6.4 billion, which decreased 2% from the prior year, driven by lower Retail and Hospitality revenue;
|
•
|
Banking revenue remained consistent with prior year revenues;
|
•
|
Retail revenue decreased 3% and operating margin rate decreased 390 basis points from the prior year;
|
•
|
Hospitality revenue decreased 7% and operating margin rate declined 550 basis points from the prior year;
|
•
|
Recurring revenue, which includes cloud, software maintenance and hardware maintenance, increased 3% from the prior year and comprised 46% of total revenue;
|
•
|
Cash flows from operations and free cash flow were $572 million and $223 million, respectively, in 2018;
|
•
|
Completed the acquisition of JetPay Corporation to expand our offerings to include end-to-end payment processing; and
|
•
|
We repurchased approximately 6.1 million shares of our common stock for $210 million during the twelve months ended December 31, 2018.
|
•
|
Customer Care - Improve the customer experience and execution of new product introductions;
|
•
|
Stockholder Value - Accelerate profitable top-line revenue growth by investing in and shifting our revenue mix to recurring software and services revenue streams we identify as strategic growth platforms, while improving the Company’s cost structure;
|
•
|
Strategic Growth Platforms and Targeted Acquisitions - Increase capital expenditures in strategic growth platforms and target acquisitions to gain solutions that drive the highest growth and return on investment;
|
•
|
Talent and Employee Care - Develop, reward and retain talent with competitive recruiting, training and effective incentive-based compensation programs; and
|
•
|
Sales Enablement - Provide our sales force with top-performing and secure products packaged to target our desired revenue mix and drive customer delight and stockholder value, as well as invest in appropriate training programs to enable success.
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
Revenue
|
|
$6,405
|
|
$6,516
|
|
$6,543
|
Gross margin
|
|
1,675
|
|
1,855
|
|
1,818
|
Gross margin as a percentage of revenue
|
|
26.2%
|
|
28.5%
|
|
27.8%
|
Operating expenses
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$1,005
|
|
$923
|
|
$904
|
Research and development expenses
|
|
252
|
|
241
|
|
225
|
Restructuring-related charges
|
|
—
|
|
—
|
|
15
|
Asset impairment charges
|
|
227
|
|
—
|
|
—
|
Income from operations
|
|
$191
|
|
$691
|
|
$674
|
In millions
|
2018
|
% of Total
|
|
2017
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Constant Currency (1)
|
||||
Americas
|
$
|
3,707
|
|
58%
|
|
$
|
3,809
|
|
59%
|
|
(3)%
|
(2)%
|
Europe, Middle East Africa (EMEA)
|
1,751
|
|
27%
|
|
1,786
|
|
27%
|
|
(2)%
|
(4)%
|
||
Asia Pacific (APJ)
|
947
|
|
15%
|
|
921
|
|
14%
|
|
3%
|
4%
|
||
Consolidated revenue
|
$
|
6,405
|
|
100%
|
|
$
|
6,516
|
|
100%
|
|
(2)%
|
(2)%
|
In millions
|
2017
|
% of Total
|
|
2016
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Adjusted Constant Currency (1)
|
||||
Americas
|
$
|
3,809
|
|
59%
|
|
$
|
3,743
|
|
57%
|
|
2%
|
4%
|
Europe, Middle East Africa (EMEA)
|
1,786
|
|
27%
|
|
1,896
|
|
29%
|
|
(6)%
|
(4)%
|
||
Asia Pacific (APJ)
|
921
|
|
14%
|
|
904
|
|
14%
|
|
2%
|
3%
|
||
Consolidated revenue
|
$
|
6,516
|
|
100%
|
|
$
|
6,543
|
|
100%
|
|
—%
|
1%
|
In millions
|
2018
|
% of Total
|
|
2017
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Constant Currency (1)
|
||||
Banking
|
$
|
3,183
|
|
50%
|
|
$
|
3,175
|
|
49%
|
|
—%
|
1%
|
Retail
|
2,097
|
|
32%
|
|
2,169
|
|
33%
|
|
(3)%
|
(4)%
|
||
Hospitality
|
817
|
|
13%
|
|
878
|
|
13%
|
|
(7)%
|
(7)%
|
||
All Other
|
308
|
|
5%
|
|
294
|
|
5%
|
|
5%
|
4%
|
||
Consolidated revenue
|
$
|
6,405
|
|
100%
|
|
$
|
6,516
|
|
100%
|
|
(2)%
|
(2)%
|
In millions
|
2017
|
% of Total
|
|
2016
|
% of Total
|
|
% Increase (Decrease)
|
% Increase (Decrease) Adjusted Constant Currency (1)
|
||||
Banking
|
$
|
3,175
|
|
49%
|
|
$
|
3,370
|
|
52%
|
|
(6)%
|
(5)%
|
Retail
|
2,169
|
|
33%
|
|
2,070
|
|
32%
|
|
5%
|
10%
|
||
Hospitality
|
878
|
|
13%
|
|
800
|
|
12%
|
|
10%
|
13%
|
||
All Other
|
294
|
|
5%
|
|
303
|
|
5%
|
|
(3)%
|
(3)%
|
||
Consolidated revenue
|
$
|
6,516
|
|
100%
|
|
$
|
6,543
|
|
100%
|
|
—%
|
1%
|
|
2018
|
|
2017
|
|||||
|
Revenue % Growth (GAAP)
|
Favorable (unfavorable) FX impact
|
Revenue % Growth Constant Currency (non-GAAP)
|
|
Revenue % Growth (GAAP)
|
Favorable (unfavorable) FX impact
|
Divestiture Impact
|
Revenue % Growth Adjusted Constant Currency (non-GAAP)
|
Americas
|
(3)%
|
(1)%
|
(2)%
|
|
2%
|
—%
|
(2)%
|
4%
|
EMEA
|
(2)%
|
2%
|
(4)%
|
|
(6)%
|
(1)%
|
(1)%
|
(4)%
|
APJ
|
3%
|
(1)%
|
4%
|
|
2%
|
1%
|
(2)%
|
3%
|
Consolidated revenue
|
(2)%
|
—%
|
(2)%
|
|
—%
|
—%
|
(1)%
|
1%
|
|
2018
|
|
2017
|
|||||
|
Revenue % Growth (GAAP)
|
Favorable (unfavorable) FX impact
|
Revenue % Growth Constant Currency (non-GAAP)
|
|
Revenue % Growth (GAAP)
|
Favorable (unfavorable) FX impact
|
Divestiture Impact
|
Revenue % Growth Adjusted Constant Currency (non-GAAP)
|
Banking
|
—%
|
(1)%
|
1%
|
|
(6)%
|
—%
|
(1)%
|
(5)%
|
Retail
|
(3)%
|
1%
|
(4)%
|
|
5%
|
—%
|
(5)%
|
10%
|
Hospitality
|
(7)%
|
—%
|
(7)%
|
|
10%
|
—%
|
(3)%
|
13%
|
All Other
|
5%
|
1%
|
4%
|
|
(3)%
|
—%
|
—%
|
(3)%
|
Consolidated Revenue
|
(2)%
|
—%
|
(2)%
|
|
—%
|
—%
|
(1)%
|
1%
|
In millions
|
2018
|
|
2017
|
|
2016
|
Interest income
|
$5
|
|
$3
|
|
$4
|
Foreign currency fluctuations and foreign exchange contracts
|
(26)
|
|
(26)
|
|
(40)
|
Bank-related fees
|
(8)
|
|
(8)
|
|
(8)
|
Employee benefit plan
|
45
|
|
(15)
|
|
(75)
|
Divestiture and liquidation losses
|
—
|
|
—
|
|
(6)
|
Other income (expense), net
|
$16
|
|
$(46)
|
|
$(125)
|
•
|
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.
|
In millions
|
2018
|
|
2017
|
|
2016
|
Revenue
|
$2,097
|
|
$2,169
|
|
$2,070
|
Operating income
|
$142
|
|
$231
|
|
$191
|
Operating income as a percentage of revenue
|
6.8%
|
|
10.7%
|
|
9.2%
|
In millions
|
2018
|
|
2017
|
|
2016
|
Revenue
|
$817
|
|
$878
|
|
$800
|
Operating (loss) income
|
$85
|
|
$140
|
|
$151
|
Operating (loss) income as a percentage of revenue
|
10.4%
|
|
15.9%
|
|
18.9%
|
In millions
|
2018
|
|
2017
|
|
2016
|
Revenue
|
$308
|
|
$294
|
|
$303
|
Operating (loss) income
|
$49
|
|
$48
|
|
$47
|
Operating (loss) income as a percentage of revenue
|
15.9%
|
|
16.3%
|
|
15.5%
|
In millions
|
Total Amounts
|
2019
|
2020-2021
|
2022-2023
|
2024 & Thereafter
|
All Other
|
||||||||||||
Debt obligations
|
$
|
3,183
|
|
$
|
85
|
|
$
|
1,795
|
|
$
|
1,300
|
|
$
|
3
|
|
$
|
—
|
|
Interest on debt obligations
|
563
|
|
163
|
|
275
|
|
123
|
|
2
|
|
—
|
|
||||||
Estimated environmental liability payments
|
21
|
|
20
|
|
1
|
|
—
|
|
—
|
|
—
|
|
||||||
Lease obligations
|
778
|
|
128
|
|
176
|
|
114
|
|
360
|
|
—
|
|
||||||
Purchase obligations
|
1,042
|
|
1,042
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Uncertain tax positions
|
91
|
|
—
|
|
—
|
|
—
|
|
—
|
|
91
|
|
||||||
Total obligations
|
$
|
5,678
|
|
$
|
1,438
|
|
$
|
2,247
|
|
$
|
1,537
|
|
$
|
365
|
|
$
|
91
|
|
•
|
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, except per share amounts)
|
2018
|
|
2017
|
|
2016
|
||||||
Product revenue
|
$
|
2,341
|
|
|
$
|
2,579
|
|
|
$
|
2,737
|
|
Service revenue
|
4,064
|
|
|
3,937
|
|
|
3,806
|
|
|||
Total revenue
|
6,405
|
|
|
6,516
|
|
|
6,543
|
|
|||
Cost of products
|
1,988
|
|
|
2,021
|
|
|
2,099
|
|
|||
Cost of services
|
2,742
|
|
|
2,640
|
|
|
2,626
|
|
|||
Selling, general and administrative expenses
|
1,005
|
|
|
923
|
|
|
904
|
|
|||
Research and development expenses
|
252
|
|
|
241
|
|
|
225
|
|
|||
Asset impairment charges
|
227
|
|
|
—
|
|
|
—
|
|
|||
Restructuring-related charges
|
—
|
|
|
—
|
|
|
15
|
|
|||
Total operating expenses
|
6,214
|
|
|
5,825
|
|
|
5,869
|
|
|||
Income from operations
|
191
|
|
|
691
|
|
|
674
|
|
|||
Interest expense
|
(168
|
)
|
|
(163
|
)
|
|
(170
|
)
|
|||
Other income (expense), net
|
16
|
|
|
(46
|
)
|
|
(125
|
)
|
|||
Income (loss) from continuing operations before income taxes
|
39
|
|
|
482
|
|
|
379
|
|
|||
Income tax expense
|
73
|
|
|
242
|
|
|
92
|
|
|||
Income (loss) from continuing operations
|
(34
|
)
|
|
240
|
|
|
287
|
|
|||
Loss from discontinued operations, net of tax
|
(52
|
)
|
|
(5
|
)
|
|
(13
|
)
|
|||
Net income (loss)
|
(86
|
)
|
|
235
|
|
|
274
|
|
|||
Net income attributable to noncontrolling interests
|
2
|
|
|
3
|
|
|
4
|
|
|||
Net income (loss) attributable to NCR
|
$
|
(88
|
)
|
|
$
|
232
|
|
|
$
|
270
|
|
Amounts attributable to NCR common stockholders:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
(36
|
)
|
|
$
|
237
|
|
|
$
|
283
|
|
Series A convertible preferred stock dividends
|
(49
|
)
|
|
(47
|
)
|
|
(49
|
)
|
|||
Deemed dividend on modification of Series A convertible preferred stock
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||
Deemed dividend on Series A convertible preferred stock related to redemption
|
—
|
|
|
(58
|
)
|
|
—
|
|
|||
Income (loss) from continuing operations attributable to NCR
|
(85
|
)
|
|
128
|
|
|
234
|
|
|||
Loss from discontinued operations, net of tax
|
(52
|
)
|
|
(5
|
)
|
|
(13
|
)
|
|||
Net income (loss) attributable to NCR common stockholders
|
$
|
(137
|
)
|
|
$
|
123
|
|
|
$
|
221
|
|
Income (loss) per share attributable to NCR common stockholders:
|
|
|
|
|
|
||||||
Income (loss) per common share from continuing operations
|
|
|
|
|
|
||||||
Basic
|
$
|
(0.72
|
)
|
|
$
|
1.05
|
|
|
$
|
1.86
|
|
Diluted
|
$
|
(0.72
|
)
|
|
$
|
1.01
|
|
|
$
|
1.80
|
|
Net income (loss) per common share
|
|
|
|
|
|
||||||
Basic
|
$
|
(1.16
|
)
|
|
$
|
1.01
|
|
|
$
|
1.76
|
|
Diluted
|
$
|
(1.16
|
)
|
|
$
|
0.97
|
|
|
$
|
1.71
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
||||||
Basic
|
118.4
|
|
|
121.9
|
|
|
125.6
|
|
|||
Diluted (continuing operations)
|
118.4
|
|
|
127.0
|
|
|
157.4
|
|
|||
Diluted (net income)
|
118.4
|
|
|
127.0
|
|
|
129.2
|
|
For the years ended December 31 (in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Net income (loss)
|
$
|
(86
|
)
|
|
$
|
235
|
|
|
$
|
274
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Currency translation adjustments
|
|
|
|
|
|
||||||
Currency translation adjustments
|
(53
|
)
|
|
39
|
|
|
(57
|
)
|
|||
Derivatives
|
|
|
|
|
|
||||||
Unrealized gain (loss) on derivatives
|
11
|
|
|
(16
|
)
|
|
19
|
|
|||
Gains on derivatives arising during the period
|
(7
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
Less income tax benefit (expense)
|
(1
|
)
|
|
3
|
|
|
(4
|
)
|
|||
Employee benefit plans
|
|
|
|
|
|
||||||
Prior service benefit
|
(4
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of prior service cost
|
(9
|
)
|
|
(11
|
)
|
|
(19
|
)
|
|||
Net (loss) gain arising during the period
|
12
|
|
|
(13
|
)
|
|
(1
|
)
|
|||
Amortization of actuarial (loss) gain
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Less income tax benefit (expense)
|
1
|
|
|
5
|
|
|
5
|
|
|||
Other comprehensive income (loss)
|
(50
|
)
|
|
4
|
|
|
(60
|
)
|
|||
Total comprehensive income (loss)
|
(136
|
)
|
|
239
|
|
|
214
|
|
|||
Less comprehensive income attributable to noncontrolling interests:
|
|
|
|
|
|
||||||
Net income
|
2
|
|
|
3
|
|
|
4
|
|
|||
Currency translation adjustments
|
(2
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|||
Amounts attributable to noncontrolling interests
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
(136
|
)
|
|
$
|
238
|
|
|
$
|
215
|
|
As of December 31 (in millions except per share amounts)
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
464
|
|
|
$
|
537
|
|
Accounts receivable, net
|
1,356
|
|
|
1,270
|
|
||
Inventories
|
806
|
|
|
780
|
|
||
Other current assets
|
397
|
|
|
243
|
|
||
Total current assets
|
3,023
|
|
|
2,830
|
|
||
Property, plant and equipment, net
|
359
|
|
|
341
|
|
||
Goodwill
|
2,692
|
|
|
2,741
|
|
||
Intangibles, net
|
595
|
|
|
578
|
|
||
Prepaid pension cost
|
140
|
|
|
118
|
|
||
Deferred income taxes
|
448
|
|
|
460
|
|
||
Other assets
|
504
|
|
|
586
|
|
||
Total assets
|
$
|
7,761
|
|
|
$
|
7,654
|
|
Liabilities and stockholders’ equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Short-term borrowings
|
$
|
185
|
|
|
$
|
52
|
|
Accounts payable
|
897
|
|
|
762
|
|
||
Payroll and benefits liabilities
|
238
|
|
|
219
|
|
||
Deferred service revenue and customer deposits
|
461
|
|
|
458
|
|
||
Other current liabilities
|
501
|
|
|
398
|
|
||
Total current liabilities
|
2,282
|
|
|
1,889
|
|
||
Long-term debt
|
2,980
|
|
|
2,939
|
|
||
Pension and indemnity plan liabilities
|
759
|
|
|
798
|
|
||
Postretirement and postemployment benefits liabilities
|
118
|
|
|
133
|
|
||
Income tax accruals
|
91
|
|
|
148
|
|
||
Other liabilities
|
259
|
|
|
200
|
|
||
Total liabilities
|
6,489
|
|
|
6,107
|
|
||
Commitments and Contingencies (Note 10)
|
|
|
|
||||
Redeemable noncontrolling interest
|
14
|
|
|
15
|
|
||
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.9 and 0.8 shares issued and outstanding as of December 31, 2018 and 2017, respectively; redemption amount and liquidation preference of $871 and $825 as of December 31, 2018 and 2017, respectively
|
859
|
|
|
810
|
|
||
Stockholders’ equity
|
|
|
|
||||
NCR stockholders’ equity
|
|
|
|
||||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of December 31, 2018 and 2017, respectively
|
—
|
|
|
—
|
|
||
Common stock: par value $0.01 per share, 500.0 shares authorized, 118.7 and 122.0 shares issued and outstanding as of December 31, 2018 and 2017, respectively
|
1
|
|
|
1
|
|
||
Paid-in capital
|
34
|
|
|
60
|
|
||
Retained earnings
|
606
|
|
|
857
|
|
||
Accumulated other comprehensive loss
|
(246
|
)
|
|
(199
|
)
|
||
Total NCR stockholders’ equity
|
395
|
|
|
719
|
|
||
Noncontrolling interests in subsidiaries
|
4
|
|
|
3
|
|
||
Total stockholders’ equity
|
399
|
|
|
722
|
|
||
Total liabilities and stockholders’ equity
|
$
|
7,761
|
|
|
$
|
7,654
|
|
For the years ended December 31 (in millions)
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(86
|
)
|
|
$
|
235
|
|
|
$
|
274
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Loss from discontinued operations
|
52
|
|
|
5
|
|
|
13
|
|
|||
Depreciation and amortization
|
330
|
|
|
354
|
|
|
344
|
|
|||
Stock-based compensation expense
|
72
|
|
|
77
|
|
|
61
|
|
|||
Deferred income taxes
|
14
|
|
|
173
|
|
|
10
|
|
|||
Gain on sale of property, plant and equipment and other assets
|
(2
|
)
|
|
(3
|
)
|
|
—
|
|
|||
Loss on divestiture
|
—
|
|
|
—
|
|
|
2
|
|
|||
Impairment of long-lived and other assets
|
239
|
|
|
1
|
|
|
2
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
(155
|
)
|
|
29
|
|
|
(89
|
)
|
|||
Inventories
|
(70
|
)
|
|
(68
|
)
|
|
(86
|
)
|
|||
Current payables and accrued expenses
|
198
|
|
|
(78
|
)
|
|
216
|
|
|||
Deferred service revenue and customer deposits
|
(13
|
)
|
|
10
|
|
|
88
|
|
|||
Employee benefit plans
|
(60
|
)
|
|
(4
|
)
|
|
33
|
|
|||
Other assets and liabilities
|
53
|
|
|
21
|
|
|
28
|
|
|||
Net cash provided by operating activities
|
572
|
|
|
752
|
|
|
896
|
|
|||
Investing activities
|
|
|
|
|
|
||||||
Expenditures for property, plant and equipment
|
(143
|
)
|
|
(128
|
)
|
|
(73
|
)
|
|||
Proceeds from sales of property, plant and equipment
|
3
|
|
|
6
|
|
|
—
|
|
|||
Additions to capitalized software
|
(170
|
)
|
|
(166
|
)
|
|
(154
|
)
|
|||
Business acquisitions, net
|
(206
|
)
|
|
(8
|
)
|
|
—
|
|
|||
Proceeds from divestiture
|
—
|
|
|
3
|
|
|
47
|
|
|||
Other investing activities, net
|
(4
|
)
|
|
3
|
|
|
(9
|
)
|
|||
Net cash used in investing activities
|
(520
|
)
|
|
(290
|
)
|
|
(189
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Short term borrowings, net
|
(1
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|||
Payments on term credit facilities
|
(51
|
)
|
|
(61
|
)
|
|
(97
|
)
|
|||
Payments on revolving credit facilities
|
(2,233
|
)
|
|
(1,940
|
)
|
|
(1,431
|
)
|
|||
Borrowings on revolving credit facilities
|
2,453
|
|
|
1,940
|
|
|
1,331
|
|
|||
Debt issuance costs
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||
Repurchases of Company common stock
|
(210
|
)
|
|
(350
|
)
|
|
(250
|
)
|
|||
Tax withholding payments on behalf of employees
|
(36
|
)
|
|
(31
|
)
|
|
(16
|
)
|
|||
Proceeds from employee stock plans
|
20
|
|
|
15
|
|
|
15
|
|
|||
Other financing activities
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
|||
Net cash used in financing activities
|
(58
|
)
|
|
(434
|
)
|
|
(467
|
)
|
|||
Cash flows from discontinued operations
|
|
|
|
|
|
||||||
Net cash used in discontinued operations operating activities
|
(36
|
)
|
|
(8
|
)
|
|
(39
|
)
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(25
|
)
|
|
16
|
|
|
(29
|
)
|
|||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(67
|
)
|
|
36
|
|
|
172
|
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
543
|
|
|
507
|
|
|
335
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
$
|
476
|
|
|
$
|
543
|
|
|
$
|
507
|
|
|
|
|
|
|
|
||||||
in millions
|
|
|
|
|
|
||||||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Consolidated Statement of Cash Flows
|
2018
|
|
2017
|
|
2016
|
||||||
Cash and cash equivalents
|
$
|
464
|
|
|
$
|
537
|
|
|
$
|
498
|
|
Restricted cash included in Other assets
|
12
|
|
|
6
|
|
|
9
|
|
|||
Total cash, cash equivalents and restricted cash
|
$
|
476
|
|
|
$
|
543
|
|
|
$
|
507
|
|
|
|
|
|
|
|
||||||
Supplemental data
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
||||||
Income taxes
|
$
|
106
|
|
|
$
|
98
|
|
|
$
|
66
|
|
Interest
|
$
|
160
|
|
|
$
|
159
|
|
|
$
|
155
|
|
|
|
NCR Stockholders
|
|
|
|
|
|||||||||||||||||||||
|
|
Common Stock
|
|
|
|
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Non-Redeemable Noncontrolling Interests in Subsidiaries
|
|
|
|||||||||||||||
in millions
|
|
Shares
|
|
Amount
|
|
Paid-in Capital
|
|
Retained Earnings
|
|
|
|
Total
|
|||||||||||||||
December 31, 2015
|
|
133
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
869
|
|
|
$
|
(150
|
)
|
|
$
|
6
|
|
|
$
|
726
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|
—
|
|
|
2
|
|
|
272
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
(2
|
)
|
|
(57
|
)
|
||||||
Total comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|
(55
|
)
|
|
—
|
|
|
215
|
|
||||||
Employee stock purchase and stock compensation plans
|
|
2
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Dividend distribution to minority shareholder
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Repurchase of Company common stock
|
|
(10
|
)
|
|
—
|
|
|
(27
|
)
|
|
(223
|
)
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
||||||
Series A convertible preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
||||||
December 31, 2016
|
|
125
|
|
|
1
|
|
|
32
|
|
|
867
|
|
|
(205
|
)
|
|
4
|
|
|
699
|
|
||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|
—
|
|
|
3
|
|
|
235
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(2
|
)
|
|
4
|
|
||||||
Total comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|
6
|
|
|
1
|
|
|
239
|
|
||||||
Cumulative effect of a change in accounting principle related to employee share-based payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
Employee stock purchase and stock compensation plans
|
|
1
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
||||||
Dividend distribution to minority shareholder
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Repurchase of Company common stock
|
|
(7
|
)
|
|
—
|
|
|
(178
|
)
|
|
(172
|
)
|
|
—
|
|
|
—
|
|
|
(350
|
)
|
||||||
Series A convertible preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
||||||
Deemed dividend on modification of Series A Convertible Preferred Stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Deemed dividend on redemption of Series A Convertible Preferred Stock
|
|
—
|
|
|
—
|
|
|
58
|
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Redemption of Series A Convertible Preferred Stock
|
|
3
|
|
|
—
|
|
|
87
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
||||||
December 31, 2017
|
|
122
|
|
|
1
|
|
|
60
|
|
|
857
|
|
|
(199
|
)
|
|
3
|
|
|
722
|
|
||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
—
|
|
|
1
|
|
|
(87
|
)
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
(48
|
)
|
||||||
Total comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
(48
|
)
|
|
1
|
|
|
(135
|
)
|
||||||
Cumulative effects of adoption of new accounting standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
1
|
|
|
—
|
|
|
15
|
|
||||||
Employee stock purchase and stock compensation plans
|
|
2
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
||||||
Repurchase of Company common stock
|
|
(6
|
)
|
|
—
|
|
|
(82
|
)
|
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
(210
|
)
|
||||||
Series A convertible preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
||||||
December 31, 2018
|
|
118
|
|
|
$
|
1
|
|
|
$
|
34
|
|
|
$
|
606
|
|
|
$
|
(246
|
)
|
|
$
|
4
|
|
|
$
|
399
|
|
•
|
Identification of the contract(s) with a customer
|
•
|
Identification of the performance obligation(s) in the contract
|
•
|
Determination of the transaction price
|
•
|
Allocation of the transaction price to the performance obligations in the contract
|
•
|
Recognition of revenue when, or as, we satisfy performance obligations
|
In millions, except per share amounts
|
Year ended December 31
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Income (loss) from continuing operations
|
$
|
(36
|
)
|
|
$
|
237
|
|
|
$
|
283
|
|
Series A convertible preferred stock dividends
|
(49
|
)
|
|
(47
|
)
|
|
(49
|
)
|
|||
Deemed dividend on modification of Series A Convertible Preferred Stock
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||
Deemed dividend on Series A Convertible Preferred Stock redemption
|
—
|
|
|
(58
|
)
|
|
—
|
|
|||
Net income (loss) from continuing operations attributable to NCR common stockholders
|
(85
|
)
|
|
128
|
|
|
234
|
|
|||
Loss from discontinued operations, net of tax
|
(52
|
)
|
|
(5
|
)
|
|
(13
|
)
|
|||
Net income (loss) attributable to NCR common stockholders
|
$
|
(137
|
)
|
|
$
|
123
|
|
|
$
|
221
|
|
|
|
|
|
|
|
||||||
Denominator
|
|
|
|
|
|
||||||
Basic weighted average number of shares outstanding
|
118.4
|
|
|
121.9
|
|
|
125.6
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings (loss) per share:
|
|
|
|
|
|
||||||
From continuing operations
|
$
|
(0.72
|
)
|
|
$
|
1.05
|
|
|
$
|
1.86
|
|
From discontinued operations
|
(0.44
|
)
|
|
(0.04
|
)
|
|
(0.10
|
)
|
|||
Total basic earnings (loss) per share
|
$
|
(1.16
|
)
|
|
$
|
1.01
|
|
|
$
|
1.76
|
|
In millions, except per share amounts
|
Year ended December 31
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Income (loss) from continuing operations
|
$
|
(36
|
)
|
|
$
|
237
|
|
|
$
|
283
|
|
Series A convertible preferred stock dividends
|
(49
|
)
|
|
(47
|
)
|
|
—
|
|
|||
Deemed dividend on modification of Series A Convertible Preferred Stock
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||
Deemed dividend on Series A Convertible Preferred Stock redemption
|
—
|
|
|
(58
|
)
|
|
—
|
|
|||
Net income (loss) from continuing operations attributable to NCR common stockholders
|
(85
|
)
|
|
128
|
|
|
283
|
|
|||
Loss from discontinued operations, net of tax
|
(52
|
)
|
|
(5
|
)
|
|
(13
|
)
|
|||
Series A convertible preferred stock dividends
|
—
|
|
|
—
|
|
|
(49
|
)
|
|||
Net income (loss) attributable to NCR common stockholders
|
$
|
(137
|
)
|
|
$
|
123
|
|
|
$
|
221
|
|
|
|
|
|
|
|
||||||
Basic weighted average number of shares outstanding
|
118.4
|
|
|
121.9
|
|
|
125.6
|
|
|||
Dilutive effect of as-if Series A Convertible Preferred Stock
|
—
|
|
|
—
|
|
|
28.2
|
|
|||
Dilutive effect of employee stock options and restricted stock units
|
—
|
|
|
5.1
|
|
|
3.6
|
|
|||
Denominator - from continuing operations
|
118.4
|
|
|
127.0
|
|
|
157.4
|
|
|||
|
|
|
|
|
|
||||||
Basic weighted average number of shares outstanding
|
118.4
|
|
|
121.9
|
|
|
125.6
|
|
|||
Dilutive effect of employee stock options and restricted stock units
|
—
|
|
|
5.1
|
|
|
3.6
|
|
|||
Denominator - total
|
118.4
|
|
|
127.0
|
|
|
129.2
|
|
|||
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share:
|
|
|
|
|
|
||||||
From continuing operations
|
$
|
(0.72
|
)
|
|
$
|
1.01
|
|
|
$
|
1.80
|
|
From discontinued operations
|
(0.44
|
)
|
|
(0.04
|
)
|
|
(0.10
|
)
|
|||
Total diluted earnings (loss) per share
|
$
|
(1.16
|
)
|
|
$
|
0.97
|
|
|
$
|
1.71
|
|
In millions
|
Location in the Consolidated Balance Sheet
|
|
December 31, 2018
|
|
January 1, 2018
|
||||
Current portion of contract assets
|
Other current assets
|
|
$
|
22
|
|
|
$
|
28
|
|
Current portion of contract liabilities
|
Contract liabilities
|
|
$
|
461
|
|
|
$
|
458
|
|
Non-current portion of contract liabilities
|
Other liabilities
|
|
$
|
85
|
|
|
$
|
95
|
|
In millions
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning balance as of January 1
|
$
|
366
|
|
|
$
|
345
|
|
|
$
|
311
|
|
Capitalization
|
170
|
|
|
166
|
|
|
154
|
|
|||
Amortization
|
(160
|
)
|
|
(145
|
)
|
|
(118
|
)
|
|||
Impairment
|
(51
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Ending balance as of December 31
|
$
|
325
|
|
|
$
|
366
|
|
|
$
|
345
|
|
•
|
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities
|
•
|
Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, that are observable either directly or indirectly
|
•
|
Level 3: Unobservable inputs for which there is little or no market data
|
•
|
Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
|
•
|
Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost).
|
•
|
Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option pricing and excess earnings models).
|
|
For the year ended December 31, 2018
|
||||||||||
In millions, except per share amounts
|
Under Current Guidance
|
|
Adjustments
|
|
Under Previous Guidance
|
||||||
Consolidated Statement of Operations
|
|
|
|
|
|
||||||
Product revenue
|
$
|
2,341
|
|
|
$
|
(32
|
)
|
|
$
|
2,309
|
|
Cost of products
|
1,988
|
|
|
(16
|
)
|
|
1,972
|
|
|||
Selling, general and administrative expenses
|
1,005
|
|
|
1
|
|
|
1,006
|
|
|||
Total operating expenses
|
6,214
|
|
|
(15
|
)
|
|
6,199
|
|
|||
Income (loss) from operations
|
191
|
|
|
(17
|
)
|
|
174
|
|
|||
Loss from continuing operations before income taxes
|
39
|
|
|
(17
|
)
|
|
22
|
|
|||
Income tax benefit
|
73
|
|
|
(4
|
)
|
|
69
|
|
|||
Loss from continuing operations
|
(34
|
)
|
|
(13
|
)
|
|
(47
|
)
|
|||
Net loss
|
(86
|
)
|
|
(13
|
)
|
|
(99
|
)
|
|||
Net loss attributable to NCR
|
$
|
(88
|
)
|
|
$
|
(13
|
)
|
|
$
|
(101
|
)
|
Loss per common share from continuing operations
|
|
|
|
|
|
||||||
Basic
|
$
|
(0.72
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.83
|
)
|
Diluted
|
$
|
(0.72
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.83
|
)
|
Net loss per common share
|
|
|
|
|
|
||||||
Basic
|
$
|
(1.16
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(1.27
|
)
|
Diluted
|
$
|
(1.16
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(1.27
|
)
|
|
As of December 31, 2018
|
||||||||||
In millions
|
Under Current Guidance
|
|
Adjustments
|
|
Under Previous Guidance
|
||||||
Consolidated Balance Sheet
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net
|
$
|
1,356
|
|
|
$
|
22
|
|
|
$
|
1,378
|
|
Other current assets
|
397
|
|
|
(9
|
)
|
|
388
|
|
|||
Total current assets
|
3,023
|
|
|
13
|
|
|
3,036
|
|
|||
Deferred income taxes
|
448
|
|
|
5
|
|
|
453
|
|
|||
Other assets
|
504
|
|
|
(14
|
)
|
|
490
|
|
|||
Total Assets
|
$
|
7,761
|
|
|
$
|
4
|
|
|
$
|
7,765
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
||||||
Contract liabilities
|
$
|
461
|
|
|
$
|
18
|
|
|
$
|
479
|
|
Other current liabilities
|
501
|
|
|
3
|
|
|
504
|
|
|||
Total current liabilities
|
2,282
|
|
|
21
|
|
|
2,303
|
|
|||
Total liabilities
|
6,489
|
|
|
21
|
|
|
6,510
|
|
|||
Retained earnings
|
606
|
|
|
(17
|
)
|
|
589
|
|
|||
Total NCR stockholders’ equity
|
395
|
|
|
(17
|
)
|
|
378
|
|
|||
Total stockholders’ equity
|
399
|
|
|
(17
|
)
|
|
382
|
|
|||
Total liabilities and stockholders’ equity
|
$
|
7,761
|
|
|
$
|
4
|
|
|
$
|
7,765
|
|
In millions
|
Fair Value
|
||
Cash acquired
|
$
|
4
|
|
Tangible assets acquired
|
76
|
|
|
Acquired intangible assets other than goodwill
|
109
|
|
|
Acquired goodwill
|
96
|
|
|
Deferred tax liabilities
|
(16
|
)
|
|
Liabilities assumed
|
(76
|
)
|
|
Total purchase consideration
|
$
|
193
|
|
|
Estimated Fair Value
|
|
Weighted Average Amortization Period (1)
|
||
|
(In millions)
|
|
(In years)
|
||
Direct customer relationships
|
$
|
69
|
|
|
14
|
Technology - Software
|
39
|
|
|
9
|
|
Tradenames
|
1
|
|
|
1
|
|
Total acquired intangible assets
|
$
|
109
|
|
|
|
In millions
|
|
2018
|
|
2017
|
||||
Revenue
|
|
$
|
6,468
|
|
|
$
|
6,592
|
|
Net income attributable to NCR
|
|
$
|
(46
|
)
|
|
$
|
217
|
|
•
|
$4 million, net of tax, in additional amortization expense for acquired intangible assets;
|
•
|
$4 million, net of tax, in eliminated transaction costs as if those costs were incurred in the prior year period; and
|
•
|
$7 million, net of tax, in additional interest expense from the incremental borrowings under the Senior Secured Credit Facility.
|
•
|
$5 million, net of tax, in additional amortization expense for acquired intangible assets;
|
•
|
$4 million, net of tax, in transaction costs; and
|
•
|
$7 million, net of tax, in additional interest expense from the incremental borrowings under the Senior Secured Credit Facility.
|
|
January 1, 2018
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||
In millions
|
Goodwill
|
|
Accumulated Impairment Losses
|
|
Total
|
|
Additions
|
|
Impairment
|
|
Other
|
|
Goodwill
|
|
Accumulated Impairment Losses
|
|
Total
|
||||||||||||||||||
Banking
|
$
|
1,721
|
|
|
$
|
(14
|
)
|
|
$
|
1,707
|
|
|
$
|
—
|
|
|
$
|
(87
|
)
|
|
$
|
(3
|
)
|
|
$
|
1,718
|
|
|
$
|
(101
|
)
|
|
$
|
1,617
|
|
Retail
|
478
|
|
|
(5
|
)
|
|
473
|
|
|
94
|
|
|
(29
|
)
|
|
(1
|
)
|
|
571
|
|
|
(34
|
)
|
|
537
|
|
|||||||||
Hospitality
|
377
|
|
|
(3
|
)
|
|
374
|
|
|
13
|
|
|
(20
|
)
|
|
(5
|
)
|
|
385
|
|
|
(23
|
)
|
|
362
|
|
|||||||||
Other
|
188
|
|
|
(1
|
)
|
|
187
|
|
|
—
|
|
|
(10
|
)
|
|
(1
|
)
|
|
187
|
|
|
(11
|
)
|
|
176
|
|
|||||||||
Total goodwill
|
$
|
2,764
|
|
|
$
|
(23
|
)
|
|
$
|
2,741
|
|
|
$
|
107
|
|
|
$
|
(146
|
)
|
|
$
|
(10
|
)
|
|
$
|
2,861
|
|
|
$
|
(169
|
)
|
|
$
|
2,692
|
|
|
January 1, 2017
|
|
|
|
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||||||
In millions
|
Goodwill
|
|
Accumulated Impairment Losses
|
|
Total
|
|
Additions
|
|
Impairment
|
|
Other
|
|
Goodwill
|
|
Accumulated Impairment Losses
|
|
Total
|
||||||||||||||||||
Banking
|
$
|
1,715
|
|
|
$
|
(14
|
)
|
|
$
|
1,701
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
1,721
|
|
|
$
|
(14
|
)
|
|
$
|
1,707
|
|
Retail
|
476
|
|
|
(5
|
)
|
|
471
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
478
|
|
|
(5
|
)
|
|
473
|
|
|||||||||
Hospitality
|
372
|
|
|
(3
|
)
|
|
369
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
377
|
|
|
(3
|
)
|
|
374
|
|
|||||||||
Other
|
187
|
|
|
(1
|
)
|
|
186
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
188
|
|
|
(1
|
)
|
|
187
|
|
|||||||||
Total goodwill
|
$
|
2,750
|
|
|
$
|
(23
|
)
|
|
$
|
2,727
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
2,764
|
|
|
$
|
(23
|
)
|
|
$
|
2,741
|
|
|
Amortization
Period
(in Years)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
In millions
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|||||||||
Identifiable intangible assets
|
|
|
|
|
|
|
|
|
|
||||||||
Reseller & customer relationships
|
1 - 20
|
|
$
|
726
|
|
|
$
|
(218
|
)
|
|
$
|
659
|
|
|
$
|
(170
|
)
|
Intellectual property
|
2 - 8
|
|
443
|
|
|
(373
|
)
|
|
410
|
|
|
(351
|
)
|
||||
Customer contracts
|
8
|
|
89
|
|
|
(87
|
)
|
|
89
|
|
|
(81
|
)
|
||||
Tradenames
|
2 - 10
|
|
75
|
|
|
(60
|
)
|
|
73
|
|
|
(51
|
)
|
||||
Total identifiable intangible assets
|
|
|
$
|
1,333
|
|
|
$
|
(738
|
)
|
|
$
|
1,231
|
|
|
$
|
(653
|
)
|
|
|
For the year ended December 31, 2018
|
|
For the years ended December 31 (estimated)
|
||||||||||||||||||||
In millions
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|||||||||||||
Amortization expense
|
|
$
|
85
|
|
|
$
|
88
|
|
|
$
|
69
|
|
|
$
|
60
|
|
|
$
|
55
|
|
|
$
|
53
|
|
•
|
the issuance of common stock as a dividend or the subdivision, combination, or reclassification of common stock into a greater or lesser number of shares of common stock;
|
•
|
the dividend, distribution or other issuance of rights, options or warrants to holders of Common Stock entitling them to subscribe for or purchase shares of common stock at a price per share that is less than the volume-weighted average price per share of common stock;
|
•
|
the completion of a tender offer or exchange offer of shares of common stock at a premium to the volume-weighted average price per share of common stock and certain other above-market purchases of common stock;
|
•
|
the issuance of a dividend or similar distribution in-kind, which can include shares of any class of capital stock, evidences of the Company's indebtedness, assets or other property or securities, to holders of common stock;
|
•
|
a transaction in which a subsidiary of the Company ceases to be a subsidiary of the Company as a result of the distribution of the equity interests of the subsidiary to the holders of the Company’s common stock; and
|
•
|
the payment of a cash dividend to the holders of common stock.
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||
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)
|
$
|
84
|
|
4.51%
|
|
$
|
51
|
|
3.21%
|
|
Trade Receivables Securitization Facility
|
100
|
|
3.37%
|
|
—
|
|
|
|||
Other (2)
|
1
|
|
4.92%
|
|
1
|
|
3.71%
|
|||
|
Total short-term borrowings
|
$
|
185
|
|
|
|
$
|
52
|
|
|
Long-Term Debt
|
|
|
|
|
|
|||||
Senior Secured Credit Facility:
|
|
|
|
|
|
|||||
|
Term loan facility (1)
|
$
|
675
|
|
4.51%
|
|
$
|
759
|
|
3.21%
|
|
Revolving credit facility (1)
|
120
|
|
4.49%
|
|
—
|
|
|
||
Senior Notes:
|
|
|
|
|
|
|
||||
|
5.00% Senior Notes due 2022
|
600
|
|
|
|
600
|
|
|
||
|
4.625% Senior Notes due 2021
|
500
|
|
|
|
500
|
|
|
||
|
5.875% Senior Notes due 2021
|
400
|
|
|
|
400
|
|
|
||
|
6.375% Senior Notes due 2023
|
700
|
|
|
|
700
|
|
|
||
Deferred financing fees
|
(18
|
)
|
|
|
(23
|
)
|
|
|||
Other (2)
|
3
|
|
0.59%
|
|
3
|
|
1.62%
|
|||
|
Total long-term debt
|
$
|
2,980
|
|
|
|
$
|
2,939
|
|
|
(1)
|
Interest rates are weighted average interest rates as of December 31, 2018 and 2017.
|
(2)
|
Interest rates are weighted average interest rates as of December 31, 2018 and 2017 primarily related to various international credit facilities and a note payable in the U.S.
|
•
|
a consolidated leverage ratio on the last day of any fiscal quarter, not to exceed (i) 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 (ii) 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
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
||||||||||||||
Debt maturities
|
|
$
|
3,183
|
|
|
$
|
85
|
|
|
$
|
190
|
|
|
$
|
1,605
|
|
|
$
|
600
|
|
|
$
|
700
|
|
|
$
|
3
|
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income (loss) before income taxes
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
(262
|
)
|
|
$
|
149
|
|
|
$
|
35
|
|
Foreign
|
|
301
|
|
|
333
|
|
|
344
|
|
|||
Total income (loss) from continuing operations before income taxes
|
|
$
|
39
|
|
|
$
|
482
|
|
|
$
|
379
|
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income tax expense (benefit)
|
|
|
|
|
|
|
||||||
Current
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
18
|
|
|
$
|
14
|
|
|
$
|
18
|
|
State
|
|
—
|
|
|
2
|
|
|
4
|
|
|||
Foreign
|
|
42
|
|
|
54
|
|
|
60
|
|
|||
Deferred
|
|
|
|
|
|
|
|
|||||
Federal
|
|
(2
|
)
|
|
178
|
|
|
12
|
|
|||
State
|
|
1
|
|
|
(3
|
)
|
|
1
|
|
|||
Foreign
|
|
14
|
|
|
(3
|
)
|
|
(3
|
)
|
|||
Total income tax expense (benefit)
|
|
$
|
73
|
|
|
$
|
242
|
|
|
$
|
92
|
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income tax (benefit) expense at the U.S. federal tax rate of 21% for 2018 and 35% for 2017 and 2016, respectively
|
|
$
|
8
|
|
|
$
|
169
|
|
|
$
|
133
|
|
Foreign income tax differential
|
|
22
|
|
|
(38
|
)
|
|
(26
|
)
|
|||
State and local income taxes (net of federal effect)
|
|
2
|
|
|
(1
|
)
|
|
3
|
|
|||
Other U.S. permanent book/tax differences
|
|
—
|
|
|
1
|
|
|
1
|
|
|||
Meals and entertainment expense
|
|
2
|
|
|
2
|
|
|
1
|
|
|||
Cash surrender value received as income
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Executive compensation
|
|
4
|
|
|
1
|
|
|
1
|
|
|||
Employee share-based payments
|
|
3
|
|
|
(3
|
)
|
|
3
|
|
|||
Change in branch tax status
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||
Goodwill impairment
|
|
30
|
|
|
—
|
|
|
—
|
|
|||
Research and development tax credits
|
|
(6
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|||
U.S. manufacturing deduction
|
|
—
|
|
|
(9
|
)
|
|
(7
|
)
|
|||
U.S. valuation allowance (1)
|
|
16
|
|
|
—
|
|
|
—
|
|
|||
U.S tax reform
|
|
37
|
|
|
130
|
|
|
—
|
|
|||
Change in liability for unrecognized tax benefits (1)
|
|
(23
|
)
|
|
(2
|
)
|
|
(12
|
)
|
|||
Prior period adjustments
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
(2
|
)
|
|
(4
|
)
|
|
—
|
|
|||
Total income tax expense (benefit)
|
|
$
|
73
|
|
|
$
|
242
|
|
|
$
|
92
|
|
In millions
|
|
2018
|
|
2017
|
||||
Deferred income tax assets
|
|
|
|
|
||||
Employee pensions and other benefits
|
|
$
|
223
|
|
|
$
|
230
|
|
Other balance sheet reserves and allowances
|
|
141
|
|
|
185
|
|
||
Tax loss and credit carryforwards
|
|
682
|
|
|
525
|
|
||
Capitalized research and development
|
|
53
|
|
|
50
|
|
||
Property, plant and equipment
|
|
11
|
|
|
6
|
|
||
Other
|
|
38
|
|
|
27
|
|
||
Total deferred income tax assets
|
|
1,148
|
|
|
1,023
|
|
||
Valuation allowance
|
|
(485
|
)
|
|
(415
|
)
|
||
Net deferred income tax assets
|
|
663
|
|
|
608
|
|
||
Deferred income tax liabilities
|
|
|
|
|
||||
Intangibles
|
|
151
|
|
|
129
|
|
||
Capitalized software
|
|
78
|
|
|
27
|
|
||
Other
|
|
7
|
|
|
16
|
|
||
Total deferred income tax liabilities
|
|
236
|
|
|
172
|
|
||
Total net deferred income tax assets
|
|
$
|
427
|
|
|
$
|
436
|
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Gross unrecognized tax benefits - January 1
|
|
$
|
196
|
|
|
$
|
183
|
|
|
$
|
209
|
|
Increases related to tax positions from prior years
|
|
9
|
|
|
3
|
|
|
3
|
|
|||
Decreases related to tax positions from prior years
|
|
(50
|
)
|
|
(1
|
)
|
|
(34
|
)
|
|||
Increases related to tax provisions taken during the current year
|
|
9
|
|
|
23
|
|
|
23
|
|
|||
Settlements with tax authorities
|
|
(45
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|||
Lapses of statutes of limitation
|
|
(9
|
)
|
|
(8
|
)
|
|
(12
|
)
|
|||
Total gross unrecognized tax benefits - December 31
|
|
$
|
110
|
|
|
$
|
196
|
|
|
$
|
183
|
|
In millions
|
2018
|
|
2017
|
|
2016
|
||||||
Restricted stock units
|
$
|
65
|
|
|
$
|
73
|
|
|
$
|
61
|
|
Employee stock purchase plan
|
4
|
|
|
4
|
|
|
—
|
|
|||
Stock options
|
4
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation expense
|
73
|
|
|
77
|
|
|
61
|
|
|||
Tax benefit
|
(10)
|
|
|
(22)
|
|
|
(18
|
)
|
|||
Total stock-based compensation (net of tax)
|
$
|
63
|
|
|
$
|
55
|
|
|
$
|
43
|
|
Shares in thousands
|
|
Number of Units
|
|
Weighted Average Grant-Date Fair Value per Unit
|
|||
Unvested shares as of January 1
|
|
7,158
|
|
|
$
|
29.78
|
|
Shares granted
|
|
3,440
|
|
|
$
|
26.25
|
|
Shares vested
|
|
(2,980
|
)
|
|
$
|
27.45
|
|
Shares forfeited
|
|
(1,652
|
)
|
|
$
|
30.58
|
|
Unvested shares as of December 31
|
|
5,966
|
|
|
$
|
28.69
|
|
Shares in thousands
|
|
Number of Units
|
|
Weighted Average Grant-Date Fair Value
|
|||
Service-based units
|
|
2,168
|
|
|
$
|
31.12
|
|
Performance-based units
|
|
1,272
|
|
|
$
|
17.97
|
|
Total restricted stock units
|
|
3,440
|
|
|
$
|
26.25
|
|
|
For the year ended December 31, 2018
|
|
Dividend yield
|
—
|
|
Risk-free interest rate
|
2.50
|
%
|
Expected volatility
|
34.88
|
%
|
Expected holding period - years
|
3.8 years
|
|
Shares in thousands
|
|
Shares Under Option
|
|
Weighted Average Exercise Price per Share
|
|
Weighted Average Remaining Contractual Term (in years)
|
|
Aggregate Intrinsic Value
(in millions)
|
|||||
Outstanding as of January 1
|
|
475
|
|
|
$
|
16.70
|
|
|
|
|
|
||
Granted
|
|
2,869
|
|
|
$
|
30.59
|
|
|
|
|
|
||
Exercised
|
|
(277
|
)
|
|
$
|
17.75
|
|
|
|
|
|
||
Forfeited or expired
|
|
(461
|
)
|
|
$
|
32.57
|
|
|
|
|
|
||
Outstanding as of December 31
|
|
2,606
|
|
|
$
|
29.08
|
|
|
6.01
|
|
$
|
1.56
|
|
Fully vested and expected to vest as of December 31
|
|
2,402
|
|
|
$
|
30.21
|
|
|
6.39
|
|
$
|
—
|
|
Exercisable as of December 31
|
|
204
|
|
|
$
|
15.77
|
|
|
1.57
|
|
$
|
1.56
|
|
|
|
U.S. Pension Benefits
|
|
International Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||||||||
In millions
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation as of January 1
|
|
$
|
1,950
|
|
|
$
|
2,185
|
|
|
$
|
1,273
|
|
|
$
|
1,172
|
|
|
$
|
3,223
|
|
|
$
|
3,357
|
|
Net service cost
|
|
—
|
|
|
—
|
|
|
7
|
|
|
8
|
|
|
7
|
|
|
8
|
|
||||||
Interest cost
|
|
61
|
|
|
71
|
|
|
20
|
|
|
20
|
|
|
81
|
|
|
91
|
|
||||||
Amendment
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||
Actuarial (gain) loss
|
|
(149
|
)
|
|
121
|
|
|
(83
|
)
|
|
43
|
|
|
(232
|
)
|
|
164
|
|
||||||
Benefits paid
|
|
(99
|
)
|
|
(427
|
)
|
|
(86
|
)
|
|
(75
|
)
|
|
(185
|
)
|
|
(502
|
)
|
||||||
Plan participant contributions
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
104
|
|
|
(44
|
)
|
|
104
|
|
||||||
Benefit obligation as of December 31
|
|
$
|
1,763
|
|
|
$
|
1,950
|
|
|
$
|
1,092
|
|
|
$
|
1,273
|
|
|
$
|
2,855
|
|
|
$
|
3,223
|
|
Accumulated benefit obligation as of December 31
|
|
$
|
1,763
|
|
|
$
|
1,950
|
|
|
$
|
1,080
|
|
|
$
|
1,262
|
|
|
$
|
2,843
|
|
|
$
|
3,212
|
|
|
|
U.S. Pension Benefits
|
|
International Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||||||||
In millions
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets as of January 1
|
|
$
|
1,444
|
|
|
$
|
1,722
|
|
|
$
|
1,086
|
|
|
$
|
978
|
|
|
$
|
2,530
|
|
|
$
|
2,700
|
|
Actual return on plan assets
|
|
(76
|
)
|
|
149
|
|
|
(34
|
)
|
|
80
|
|
|
(110
|
)
|
|
229
|
|
||||||
Company contributions
|
|
—
|
|
|
—
|
|
|
24
|
|
|
25
|
|
|
24
|
|
|
25
|
|
||||||
Benefits paid
|
|
(99
|
)
|
|
(427
|
)
|
|
(86
|
)
|
|
(75
|
)
|
|
(185
|
)
|
|
(502
|
)
|
||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
77
|
|
|
(38
|
)
|
|
77
|
|
||||||
Plan participant contributions
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||||
Fair value of plan assets as of December 31
|
|
$
|
1,269
|
|
|
$
|
1,444
|
|
|
$
|
953
|
|
|
$
|
1,086
|
|
|
$
|
2,222
|
|
|
$
|
2,530
|
|
|
|
U.S. Pension Benefits
|
|
International Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||||||||
In millions
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Funded Status
|
|
$
|
(494
|
)
|
|
$
|
(506
|
)
|
|
$
|
(139
|
)
|
|
$
|
(187
|
)
|
|
$
|
(633
|
)
|
|
$
|
(693
|
)
|
Amounts recognized in the Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncurrent assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
140
|
|
|
$
|
118
|
|
|
$
|
140
|
|
|
$
|
118
|
|
Current liabilities
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(13
|
)
|
|
(14
|
)
|
|
(13
|
)
|
||||||
Noncurrent liabilities
|
|
(494
|
)
|
|
(506
|
)
|
|
(265
|
)
|
|
(292
|
)
|
|
(759
|
)
|
|
(798
|
)
|
||||||
Net amounts recognized
|
|
$
|
(494
|
)
|
|
$
|
(506
|
)
|
|
$
|
(139
|
)
|
|
$
|
(187
|
)
|
|
$
|
(633
|
)
|
|
$
|
(693
|
)
|
Amounts recognized in accumulated other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost
|
|
—
|
|
|
—
|
|
|
21
|
|
|
18
|
|
|
21
|
|
|
18
|
|
||||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
18
|
|
|
$
|
21
|
|
|
$
|
18
|
|
In millions
|
U.S. Pension Benefits
|
|
International
Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||||||||||||||||||||
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||
Net service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
7
|
|
Interest cost
|
61
|
|
|
71
|
|
|
90
|
|
|
20
|
|
|
20
|
|
|
28
|
|
|
81
|
|
|
91
|
|
|
118
|
|
|||||||||
Expected return on plan assets
|
(43
|
)
|
|
(57
|
)
|
|
(72
|
)
|
|
(32
|
)
|
|
(35
|
)
|
|
(36
|
)
|
|
(75
|
)
|
|
(92
|
)
|
|
(108
|
)
|
|||||||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|||||||||
Actuarial (gain) loss
|
(29
|
)
|
|
28
|
|
|
16
|
|
|
(16
|
)
|
|
—
|
|
|
69
|
|
|
(45
|
)
|
|
28
|
|
|
85
|
|
|||||||||
Net periodic benefit (income) cost
|
$
|
(11
|
)
|
|
$
|
42
|
|
|
$
|
34
|
|
|
$
|
(20
|
)
|
|
$
|
(6
|
)
|
|
$
|
69
|
|
|
$
|
(31
|
)
|
|
$
|
36
|
|
|
$
|
103
|
|
|
|
U.S. Pension Benefits
|
|
International Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||
Discount rate
|
|
4.2
|
%
|
|
3.6
|
%
|
|
2.1
|
%
|
|
1.9
|
%
|
|
3.4
|
%
|
|
2.9
|
%
|
Rate of compensation increase
|
|
N/A
|
|
|
N/A
|
|
|
1.0
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
|
0.9
|
%
|
|
|
U.S. Pension Benefits
|
|
International
Pension Benefits
|
|
Total Pension Benefits
|
|||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|||||||||
Discount rate - Service Cost
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
1.4
|
%
|
|
1.4
|
%
|
|
2.6
|
%
|
|
1.4
|
%
|
|
1.4
|
%
|
|
2.6
|
%
|
Discount rate - Interest Cost
|
|
3.2
|
%
|
|
3.4
|
%
|
|
4.3
|
%
|
|
1.6
|
%
|
|
1.6
|
%
|
|
2.6
|
%
|
|
2.6
|
%
|
|
2.8
|
%
|
|
3.7
|
%
|
Expected return on plan assets
|
|
3.1
|
%
|
|
3.5
|
%
|
|
4.3
|
%
|
|
3.0
|
%
|
|
3.5
|
%
|
|
3.8
|
%
|
|
3.1
|
%
|
|
3.5
|
%
|
|
4.1
|
%
|
Rate of compensation increase
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
0.9
|
%
|
|
0.9
|
%
|
|
1.3
|
%
|
|
0.9
|
%
|
|
0.9
|
%
|
|
1.3
|
%
|
|
|
U.S. Pension Fund
|
|
International Pension Fund
|
||||||||||||
|
|
Actual Allocation of Plan Assets as of December 31
|
|
Target Asset Allocation
|
|
Actual Allocation of Plan Assets as of December 31
|
|
Target Asset Allocation
|
||||||||
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||
Equity securities
|
|
—
|
%
|
|
—
|
%
|
|
0 - 0%
|
|
20
|
%
|
|
22
|
%
|
|
12 - 27%
|
Debt securities
|
|
98
|
%
|
|
98
|
%
|
|
95 - 100%
|
|
57
|
%
|
|
58
|
%
|
|
54 - 72%
|
Real estate
|
|
1
|
%
|
|
1
|
%
|
|
0 - 2%
|
|
14
|
%
|
|
12
|
%
|
|
6 - 14%
|
Other
|
|
1
|
%
|
|
1
|
%
|
|
0 - 3%
|
|
9
|
%
|
|
8
|
%
|
|
4 - 9%
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
U.S.
|
|
International
|
|||||||||||||||||||||||||||||
In millions
|
Notes
|
Fair Value as of December 31, 2018
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Not Subject to Leveling
|
|
Fair Value as of December 31, 2018
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Not Subject to Leveling
|
|||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Common stock
|
1
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
44
|
|
$
|
44
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Government securities
|
2
|
|
247
|
|
—
|
|
247
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Corporate debt
|
3
|
|
761
|
|
—
|
|
761
|
|
—
|
|
—
|
|
|
100
|
|
—
|
|
100
|
|
—
|
|
—
|
|
||||||||||
Other types of investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Money market funds
|
4
|
|
13
|
|
—
|
|
2
|
|
—
|
|
11
|
|
|
8
|
|
—
|
|
8
|
|
—
|
|
—
|
|
||||||||||
Common and commingled trusts - Equities
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
150
|
|
—
|
|
—
|
|
—
|
|
150
|
|
||||||||||
Common and commingled trusts - Bonds
|
4
|
|
174
|
|
—
|
|
—
|
|
—
|
|
174
|
|
|
405
|
|
—
|
|
—
|
|
—
|
|
405
|
|
||||||||||
Common and commingled trusts - Short Term Investments
|
4
|
|
27
|
|
—
|
|
—
|
|
—
|
|
27
|
|
|
40
|
|
—
|
|
—
|
|
—
|
|
40
|
|
||||||||||
Common and commingled trusts - Balanced
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
76
|
|
—
|
|
—
|
|
—
|
|
76
|
|
||||||||||
Partnership/joint venture interests - Real estate
|
5
|
|
4
|
|
—
|
|
—
|
|
—
|
|
4
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Partnership/joint venture interests - Other
|
5
|
|
4
|
|
—
|
|
—
|
|
—
|
|
4
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Mutual funds
|
4
|
|
39
|
|
39
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Hedge Funds
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Insurance products
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
1
|
|
—
|
|
1
|
|
—
|
|
—
|
|
||||||||||
Real estate and other
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
129
|
|
—
|
|
—
|
|
129
|
|
—
|
|
||||||||||
Total
|
|
$
|
1,269
|
|
$
|
39
|
|
$
|
1,010
|
|
$
|
—
|
|
$
|
220
|
|
|
$
|
953
|
|
$
|
44
|
|
$
|
109
|
|
$
|
129
|
|
$
|
671
|
|
|
|
U.S.
|
|
International
|
|||||||||||||||||||||||||||||
In millions
|
Notes
|
Fair Value as of December 31, 2017
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Not Subject to Leveling
|
|
Fair Value as of December 31, 2017
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Not Subject to Leveling
|
|||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Common stock
|
1
|
|
$
|
1
|
|
$
|
—
|
|
$
|
1
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
56
|
|
$
|
56
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Government securities
|
2
|
|
223
|
|
—
|
|
223
|
|
—
|
|
—
|
|
|
49
|
|
—
|
|
49
|
|
—
|
|
—
|
|
||||||||||
Corporate debt
|
3
|
|
895
|
|
—
|
|
895
|
|
—
|
|
—
|
|
|
141
|
|
—
|
|
139
|
|
2
|
|
—
|
|
||||||||||
Other types of investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Money market funds
|
4
|
|
24
|
|
—
|
|
—
|
|
—
|
|
24
|
|
|
15
|
|
—
|
|
10
|
|
—
|
|
5
|
|
||||||||||
Common and commingled trusts - Equities
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
182
|
|
—
|
|
—
|
|
—
|
|
182
|
|
||||||||||
Common and commingled trusts - Bonds
|
4
|
|
207
|
|
—
|
|
—
|
|
—
|
|
207
|
|
|
421
|
|
—
|
|
—
|
|
—
|
|
421
|
|
||||||||||
Common and commingled trusts - Short Term Investments
|
4
|
|
31
|
|
—
|
|
—
|
|
—
|
|
31
|
|
|
24
|
|
—
|
|
—
|
|
—
|
|
24
|
|
||||||||||
Common and commingled trusts - Balanced
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
68
|
|
—
|
|
—
|
|
—
|
|
68
|
|
||||||||||
Partnership/joint venture interests - Real estate
|
5
|
|
5
|
|
—
|
|
—
|
|
—
|
|
5
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Partnership/joint venture interests - Other
|
5
|
|
5
|
|
—
|
|
—
|
|
—
|
|
5
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Mutual funds
|
4
|
|
53
|
|
53
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Hedge Funds
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Insurance products
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
1
|
|
—
|
|
1
|
|
—
|
|
—
|
|
||||||||||
Real estate and other
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
129
|
|
—
|
|
—
|
|
129
|
|
—
|
|
||||||||||
Total
|
|
$
|
1,444
|
|
$
|
53
|
|
$
|
1,119
|
|
$
|
—
|
|
$
|
272
|
|
|
$
|
1,086
|
|
$
|
56
|
|
$
|
199
|
|
$
|
131
|
|
$
|
700
|
|
1.
|
Common stocks are valued based on quoted market prices at the closing price as reported on the active market on which the individual securities are traded.
|
2.
|
Government securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields on similar instruments but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks.
|
3.
|
Corporate debt is valued primarily based on observable market quotations for similar bonds at the closing price reported on the active market on which the individual securities are traded. When such quoted prices are not available, the bonds are valued using a discounted cash flows approach using current yields on similar instruments of issuers with similar credit ratings.
|
4.
|
Common/collective trusts and registered investment companies (RICs) such as mutual funds are valued using a Net Asset Value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares or units outstanding. The fair value of the underlying securities within the fund, which are generally traded on an active market, are valued at the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches, are employed by the fund manager or independent third party to value investments.
|
5.
|
Partnership/joint ventures and hedge funds are valued based on the fair value of the underlying securities within the fund, which include investments both traded on an active market and not traded on an active market. For those investments that are traded on an active market, the values are based on the closing price reported on the active market on which those individual securities are traded and in the case of hedge funds they are valued using a Net Asset Value (NAV) provided by the manager of each fund. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiples and cost valuation approaches, are employed by the fund manager to value investments.
|
In millions
|
International Pension Plans
|
||
Balance, December 31, 2016
|
$
|
124
|
|
Realized and unrealized gains and losses, net
|
7
|
|
|
Purchases, sales and settlements, net
|
—
|
|
|
Transfers, net
|
—
|
|
|
Balance, December 31, 2017
|
$
|
131
|
|
Realized and unrealized gains and losses, net
|
—
|
|
|
Purchases, sales and settlements, net
|
—
|
|
|
Transfers, net
|
(2
|
)
|
|
Balance, December 31, 2018
|
$
|
129
|
|
|
|
Postretirement Benefits
|
||||||
In millions
|
|
2018
|
|
2017
|
||||
Change in benefit obligation
|
|
|
|
|
||||
Benefit obligation as of January 1
|
|
$
|
21
|
|
|
$
|
25
|
|
Interest cost
|
|
—
|
|
|
1
|
|
||
Actuarial gain
|
|
(3
|
)
|
|
(3
|
)
|
||
Plan participant contributions
|
|
1
|
|
|
—
|
|
||
Benefits paid
|
|
(1
|
)
|
|
(2
|
)
|
||
Benefit obligation as of December 31
|
|
$
|
18
|
|
|
$
|
21
|
|
|
|
Postretirement Benefits
|
||||||
In millions
|
|
2018
|
|
2017
|
||||
Benefit obligation
|
|
$
|
(18
|
)
|
|
$
|
(21
|
)
|
Amounts recognized in the Consolidated Balance Sheets
|
|
|
|
|
||||
Current liabilities
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
Noncurrent liabilities
|
|
(16
|
)
|
|
(19
|
)
|
||
Net amounts recognized
|
|
$
|
(18
|
)
|
|
$
|
(21
|
)
|
Amounts recognized in accumulated other comprehensive loss
|
|
|
|
|
||||
Net actuarial loss
|
|
$
|
7
|
|
|
$
|
11
|
|
Prior service benefit
|
|
(8
|
)
|
|
(13
|
)
|
||
Total
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
In millions
|
|
Postretirement Benefits
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
Interest cost
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Amortization of:
|
|
|
|
|
|
|
||||||
Prior service benefit
|
|
(5
|
)
|
|
(6
|
)
|
|
(14
|
)
|
|||
Actuarial loss
|
|
1
|
|
|
2
|
|
|
2
|
|
|||
Net periodic benefit income
|
|
$
|
(4
|
)
|
|
$
|
(3
|
)
|
|
$
|
(11
|
)
|
|
|
Postretirement Benefit Obligations
|
|
Postretirement Benefit Costs
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||
Discount rate
|
|
3.7
|
%
|
|
3.1
|
%
|
|
3.2
|
%
|
|
3.1
|
%
|
|
3.2
|
%
|
|
3.3
|
%
|
|
|
2018
|
|
2017
|
||||||||
|
|
Pre-65 Coverage
|
|
Post-65 Coverage
|
|
Pre-65 Coverage
|
|
Post-65 Coverage
|
||||
Healthcare cost trend rate assumed for next year
|
|
7.1
|
%
|
|
6.1
|
%
|
|
6.6
|
%
|
|
5.9
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
|
5.0
|
%
|
|
5.0
|
%
|
|
5.0
|
%
|
|
5.0
|
%
|
Year that the rate reaches the ultimate rate
|
|
2027
|
|
|
2027
|
|
|
2025
|
|
|
2025
|
|
|
|
Postemployment Benefits
|
||||||
In millions
|
|
2018
|
|
2017
|
||||
Change in benefit obligation
|
|
|
|
|
||||
Benefit obligation as of January 1
|
|
$
|
142
|
|
|
$
|
127
|
|
Service cost
|
|
43
|
|
|
34
|
|
||
Interest cost
|
|
3
|
|
|
2
|
|
||
Benefits paid
|
|
(40
|
)
|
|
(34
|
)
|
||
Foreign currency exchange
|
|
(6
|
)
|
|
9
|
|
||
Actuarial (gain) loss
|
|
(3
|
)
|
|
4
|
|
||
Benefit obligation as of December 31
|
|
$
|
139
|
|
|
$
|
142
|
|
|
|
Postemployment Benefits
|
||||||
In millions
|
|
2018
|
|
2017
|
||||
Benefit obligation
|
|
$
|
(139
|
)
|
|
$
|
(142
|
)
|
Amounts recognized in the Consolidated Balance Sheets
|
|
|
|
|
||||
Current liabilities
|
|
$
|
(37
|
)
|
|
$
|
(28
|
)
|
Noncurrent liabilities
|
|
(102
|
)
|
|
(114
|
)
|
||
Net amounts recognized
|
|
$
|
(139
|
)
|
|
$
|
(142
|
)
|
Amounts recognized in accumulated other comprehensive loss
|
|
|
|
|
||||
Net actuarial gain
|
|
$
|
(28
|
)
|
|
$
|
(20
|
)
|
Prior service benefit
|
|
(6
|
)
|
|
(11
|
)
|
||
Total
|
|
$
|
(34
|
)
|
|
$
|
(31
|
)
|
In millions
|
Postemployment Benefits
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Service cost
|
$
|
43
|
|
|
$
|
34
|
|
|
$
|
16
|
|
Interest cost
|
3
|
|
|
2
|
|
|
3
|
|
|||
Amortization of:
|
|
|
|
|
|
|
|
|
|||
Prior service benefit
|
(5
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|||
Actuarial gain
|
(1
|
)
|
|
(6
|
)
|
|
(7
|
)
|
|||
Net benefit cost
|
$
|
40
|
|
|
$
|
24
|
|
|
$
|
6
|
|
Restructuring severance cost
|
—
|
|
|
—
|
|
|
4
|
|
|||
Net periodic benefit cost
|
$
|
40
|
|
|
$
|
24
|
|
|
$
|
10
|
|
|
|
Postemployment Benefit Obligations
|
|
Postemployment Benefit Costs
|
|||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2016
|
|||||
Discount rate
|
|
2.4
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
|
2.0
|
%
|
|
2.2
|
%
|
Salary increase rate
|
|
1.9
|
%
|
|
1.9
|
%
|
|
1.9
|
%
|
|
1.8
|
%
|
|
2.1
|
%
|
Involuntary turnover rate
|
|
4.3
|
%
|
|
4.8
|
%
|
|
4.8
|
%
|
|
4.8
|
%
|
|
4.8
|
%
|
In millions
|
|
U.S. Pension Benefits
|
|
International Pension Benefits
|
|
Total Pension Benefits
|
|
Postretirement Benefits
|
|
Postemployment Benefits
|
||||||||||
Year
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
|
$
|
105
|
|
|
$
|
50
|
|
|
$
|
155
|
|
|
$
|
2
|
|
|
$
|
30
|
|
2020
|
|
$
|
107
|
|
|
$
|
50
|
|
|
$
|
157
|
|
|
$
|
2
|
|
|
$
|
20
|
|
2021
|
|
$
|
110
|
|
|
$
|
49
|
|
|
$
|
159
|
|
|
$
|
2
|
|
|
$
|
19
|
|
2022
|
|
$
|
112
|
|
|
$
|
50
|
|
|
$
|
162
|
|
|
$
|
1
|
|
|
$
|
17
|
|
2023
|
|
$
|
114
|
|
|
$
|
48
|
|
|
$
|
162
|
|
|
$
|
1
|
|
|
$
|
16
|
|
2024-2028
|
|
$
|
581
|
|
|
$
|
255
|
|
|
$
|
836
|
|
|
$
|
4
|
|
|
$
|
66
|
|
In millions
|
|
U.S.
Pension Benefits
|
|
International Pension Benefits
|
|
Total
Pension Benefits
|
|
Postretirement Benefits
|
|
Postemployment Benefits
|
||||||||||
Prior service cost (benefit)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
Actuarial loss (gain)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
In millions
|
2018
|
|
2017
|
|
2016
|
||||||
Warranty reserve liability
|
|
|
|
|
|
||||||
Beginning balance as of January 1
|
$
|
26
|
|
|
$
|
27
|
|
|
$
|
24
|
|
Accruals for warranties issued
|
42
|
|
|
43
|
|
|
42
|
|
|||
Settlements (in cash or in kind)
|
(42)
|
|
|
(44)
|
|
|
(39)
|
|
|||
Ending balance as of December 31
|
$
|
26
|
|
|
$
|
26
|
|
|
$
|
27
|
|
In millions
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
||||||||||
Minimum lease obligations
|
$
|
128
|
|
|
$
|
96
|
|
|
$
|
80
|
|
|
$
|
64
|
|
|
$
|
50
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Values of Derivative Instruments
|
||||||||||
|
December 31, 2017
|
||||||||||
In millions
|
Balance Sheet
Location
|
|
Notional
Amount
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Notional
Amount
|
|
Fair
Value
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
Other current assets
|
|
$104
|
|
$—
|
|
Other current liabilities
|
|
$142
|
|
$1
|
Total derivatives designated as hedging instruments
|
|
|
|
|
$—
|
|
|
|
|
|
$1
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
Other current assets
|
|
$101
|
|
$1
|
|
Other current liabilities
|
|
$292
|
|
$1
|
Total derivatives not designated as hedging instruments
|
|
|
|
|
$1
|
|
|
|
|
|
$1
|
Total derivatives
|
|
|
|
|
$1
|
|
|
|
|
|
$2
|
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 Consolidated Statement of Operations
(Effective Portion) |
||||
Derivatives in Cash Flow Hedging Relationships
|
For the year ended December 31, 2018
|
For the year ended December 31, 2017
|
For the year ended December 31, 2016
|
Location of (Gain) Loss Reclassified from AOCI into the Consolidated Statement of Operations (Effective Portion)
|
For the year ended December 31, 2018
|
For the year ended December 31, 2017
|
For the year ended December 31, 2016
|
Interest rate swap
|
$—
|
$—
|
$—
|
Interest expense
|
$—
|
$—
|
$2
|
Foreign exchange contracts
|
$11
|
$(16)
|
$19
|
Cost of products
|
$(7)
|
$(1)
|
$(3)
|
In millions
|
|
|
Amount of Gain (Loss) Recognized in the
Consolidated Statement of Operations
|
||||
Derivatives not Designated as Hedging Instruments
|
Location of Gain (Loss) Recognized in the Consolidated Statement of Operations
|
|
For the year ended December 31, 2018
|
|
For the year ended December 31, 2017
|
|
For the year ended December 31, 2016
|
Foreign exchange contracts
|
Other income (expense), net
|
|
$(9)
|
|
$(4)
|
|
$(1)
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
|
|
Fair Value Measurements Using
|
|
|
Fair Value Measurements Using
|
||||
In millions
|
December 31, 2018
|
Quoted Prices
in Active
Markets
for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
|
December 31, 2017
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Assets:
|
|
|
|
|
|
|
|
|
|
Deposits held in money market mutual funds (1)
|
$8
|
$8
|
$—
|
$—
|
|
$90
|
$90
|
$—
|
$—
|
Foreign exchange contracts (2)
|
5
|
—
|
5
|
—
|
|
1
|
—
|
1
|
—
|
Total
|
$13
|
$8
|
$5
|
$—
|
|
$91
|
$90
|
$1
|
$—
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts (3)
|
1
|
—
|
1
|
—
|
|
2
|
—
|
2
|
—
|
Total
|
$1
|
$—
|
$1
|
$—
|
|
$2
|
$—
|
$2
|
$—
|
•
|
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 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.
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenue by segment
|
|
|
|
|
|
|
||||||
Banking
|
|
$
|
3,183
|
|
|
$
|
3,175
|
|
|
$
|
3,370
|
|
Retail
|
|
2,097
|
|
|
2,169
|
|
|
2,070
|
|
|||
Hospitality
|
|
817
|
|
|
878
|
|
|
800
|
|
|||
Other
|
|
308
|
|
|
294
|
|
|
303
|
|
|||
Consolidated revenue
|
|
6,405
|
|
|
6,516
|
|
|
6,543
|
|
|||
Operating income by segment
|
|
|
|
|
|
|
||||||
Banking
|
|
412
|
|
|
421
|
|
|
441
|
|
|||
Retail
|
|
142
|
|
|
231
|
|
|
191
|
|
|||
Hospitality
|
|
85
|
|
|
140
|
|
|
151
|
|
|||
Other
|
|
49
|
|
|
48
|
|
|
47
|
|
|||
Subtotal - segment operating income
|
|
688
|
|
|
840
|
|
|
830
|
|
|||
Other adjustments(1)
|
|
497
|
|
|
149
|
|
|
156
|
|
|||
Income from operations
|
|
$
|
191
|
|
|
$
|
691
|
|
|
$
|
674
|
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Transformation and restructuring costs
|
|
$
|
223
|
|
|
$
|
29
|
|
|
$
|
26
|
|
Acquisition-related amortization of intangibles
|
|
85
|
|
|
115
|
|
|
123
|
|
|||
Acquisition-related costs
|
|
6
|
|
|
5
|
|
|
7
|
|
|||
Goodwill and long-lived asset impairment charges
|
|
183
|
|
|
—
|
|
|
—
|
|
|||
Total other adjustments
|
|
$
|
497
|
|
|
$
|
149
|
|
|
$
|
156
|
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Product revenue
|
|
$
|
2,341
|
|
|
$
|
2,579
|
|
|
$
|
2,737
|
|
Professional services and installation services revenue
|
|
1,094
|
|
|
1,055
|
|
|
1,011
|
|
|||
Recurring revenue, including maintenance and cloud revenue
|
|
2,970
|
|
|
2,882
|
|
|
2,795
|
|
|||
Total revenue
|
|
$
|
6,405
|
|
|
$
|
6,516
|
|
|
$
|
6,543
|
|
In millions
|
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
|||||||||
Revenue by Geographic Area
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
United States
|
|
$
|
3,076
|
|
|
48
|
%
|
|
$
|
3,224
|
|
|
50
|
%
|
|
$
|
3,106
|
|
|
47
|
%
|
Americas (excluding United States)
|
|
631
|
|
|
10
|
%
|
|
585
|
|
|
9
|
%
|
|
637
|
|
|
10
|
%
|
|||
Europe, Middle East and Africa (EMEA)
|
|
1,751
|
|
|
27
|
%
|
|
1,786
|
|
|
27
|
%
|
|
1,896
|
|
|
29
|
%
|
|||
Asia Pacific (APJ)
|
|
947
|
|
|
15
|
%
|
|
921
|
|
|
14
|
%
|
|
904
|
|
|
14
|
%
|
|||
Consolidated revenue
|
|
$
|
6,405
|
|
|
100
|
%
|
|
$
|
6,516
|
|
|
100
|
%
|
|
$
|
6,543
|
|
|
100
|
%
|
In millions
|
|
2018
|
|
2017
|
||||
Property, plant and equipment, net
|
|
|
|
|
||||
United States
|
|
$
|
247
|
|
|
$
|
204
|
|
Americas (excluding United States)
|
|
13
|
|
|
19
|
|
||
Europe, Middle East and Africa (EMEA)
|
|
57
|
|
|
75
|
|
||
Asia Pacific (APJ)
|
|
42
|
|
|
43
|
|
||
Consolidated property, plant and equipment, net
|
|
$
|
359
|
|
|
$
|
341
|
|
In millions
|
Currency Translation Adjustments
|
|
Changes in Employee Benefit Plans
|
|
Changes in Fair Value of Effective Cash Flow Hedges
|
|
Total
|
||||||||
Balance at December 31, 2015
|
$
|
(172
|
)
|
|
$
|
23
|
|
|
$
|
(1
|
)
|
|
$
|
(150
|
)
|
Other comprehensive (loss) income before reclassifications
|
(52
|
)
|
|
(1
|
)
|
|
16
|
|
|
(37
|
)
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
(16
|
)
|
|
(2
|
)
|
|
(18
|
)
|
||||
Net current period other comprehensive (loss) income
|
(52
|
)
|
|
(17
|
)
|
|
14
|
|
|
(55
|
)
|
||||
Balance at December 31, 2016
|
$
|
(224
|
)
|
|
$
|
6
|
|
|
$
|
13
|
|
|
$
|
(205
|
)
|
Other comprehensive (loss) income before reclassifications
|
41
|
|
|
(13
|
)
|
|
(13
|
)
|
|
15
|
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
(8
|
)
|
|
(1
|
)
|
|
(9
|
)
|
||||
Net current period other comprehensive (loss) income
|
41
|
|
|
(21
|
)
|
|
(14
|
)
|
|
6
|
|
||||
Balance at December 31, 2017
|
$
|
(183
|
)
|
|
$
|
(15
|
)
|
|
$
|
(1
|
)
|
|
$
|
(199
|
)
|
Impact of adoption of new accounting standard (1)
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Other comprehensive (loss) income before reclassifications
|
(51
|
)
|
|
6
|
|
|
11
|
|
|
(34
|
)
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
(6
|
)
|
|
(8
|
)
|
|
(14
|
)
|
||||
Net current period other comprehensive (loss) income
|
(51
|
)
|
|
—
|
|
|
3
|
|
|
(48
|
)
|
||||
Balance at December 31, 2018
|
$
|
(234
|
)
|
|
$
|
(14
|
)
|
|
$
|
2
|
|
|
$
|
(246
|
)
|
|
|
For the year ended December 31, 2018
|
||||||||||||||
|
Employee Benefit Plans
|
|
|
|
|
|||||||||||
In millions
|
Actuarial Losses Recognized
|
|
Amortization of Prior Service Benefit
|
|
Effective Cash Flow Hedges
|
|
Total
|
|||||||||
Affected line in Consolidated Statement of Operations:
|
|
|
|
|
|
|
|
|||||||||
|
Cost of products
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
(7
|
)
|
|
Cost of services
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||
|
Selling, general and administrative expenses
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||
|
Research and development expenses
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
|
Total before tax
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
(7
|
)
|
|
$
|
(16
|
)
|
|
Tax expense
|
|
|
|
|
|
|
2
|
|
|||||||
|
Total reclassifications, net of tax
|
|
|
|
|
|
|
$
|
(14
|
)
|
|
|
For the year ended December 31, 2017
|
||||||||||||||
|
Employee Benefit Plans
|
|
|
|
|
|
||||||||||
In millions
|
Actuarial Losses Recognized
|
|
Amortization of Prior Service Benefit
|
|
Effective Cash Flow Hedges
|
|
Total
|
|||||||||
Affected line in Consolidated Statement of Operations:
|
|
|
|
|
|
|
|
|||||||||
|
Cost of products
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
Cost of services
|
(1
|
)
|
|
(6
|
)
|
|
—
|
|
|
(7
|
)
|
||||
|
Selling, general and administrative expenses
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
|
Research and development expenses
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
||||
|
Total before tax
|
$
|
(2
|
)
|
|
$
|
(11
|
)
|
|
$
|
(1
|
)
|
|
$
|
(14
|
)
|
|
Tax expense
|
|
|
|
|
|
|
5
|
|
|||||||
|
Total reclassifications, net of tax
|
|
|
|
|
|
|
$
|
(9
|
)
|
|
|
For the year ended December 31, 2016
|
||||||||||||||
|
|
Employee Benefit Plans
|
|
|
|
|
||||||||||
In millions
|
Actuarial Losses Recognized
|
|
Amortization of Prior Service Benefit
|
|
Effective Cash Flow Hedges
|
|
Total
|
|||||||||
Affected line in Consolidated Statement of Operations:
|
|
|
|
|
|
|
|
|||||||||
|
Cost of products
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
Cost of services
|
(1
|
)
|
|
(10
|
)
|
|
—
|
|
|
(11
|
)
|
||||
|
Selling, general and administrative expenses
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||
|
Research and development expenses
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
||||
|
Interest expense
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
|
Total before tax
|
$
|
(2
|
)
|
|
$
|
(19
|
)
|
|
$
|
(1
|
)
|
|
$
|
(22
|
)
|
|
Tax expense
|
|
|
|
|
|
|
4
|
|
|||||||
|
Total reclassifications, net of tax
|
|
|
|
|
|
|
$
|
(18
|
)
|
In millions
|
2018
|
Employee Severance and Other Exit Costs
|
|
Beginning balance as of January 1
|
$—
|
Cost recognized during the period
|
13
|
Change in estimated payments
|
—
|
Utilization
|
(11)
|
Currency translation adjustments
|
—
|
Ending balance as of December 31
|
$2
|
In millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Other income (expense), net
|
|
|
|
|
|
|
||||||
Interest income
|
|
$
|
5
|
|
|
$
|
3
|
|
|
$
|
4
|
|
Foreign currency fluctuations and foreign exchange contracts
|
|
(26
|
)
|
|
(26
|
)
|
|
(40
|
)
|
|||
Employee benefit plans
|
|
45
|
|
|
(15
|
)
|
|
(75
|
)
|
|||
Bank-related fees
|
|
(8
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|||
Divestiture and liquidation losses
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||
Total other income (expense), net
|
|
$
|
16
|
|
|
$
|
(46
|
)
|
|
$
|
(125
|
)
|
In millions
|
December 31, 2018
|
|
December 31, 2017
|
||||
Accounts receivable
|
|
|
|
||||
Trade
|
$
|
1,364
|
|
|
$
|
1,270
|
|
Other
|
23
|
|
|
37
|
|
||
Accounts receivable, gross
|
1,387
|
|
|
1,307
|
|
||
Less: allowance for doubtful accounts
|
(31
|
)
|
|
(37
|
)
|
||
Total accounts receivable, net
|
$
|
1,356
|
|
|
$
|
1,270
|
|
In millions
|
December 31, 2018
|
|
December 31, 2017
|
||||
Inventories
|
|
|
|
||||
Work in process and raw materials
|
$
|
237
|
|
|
$
|
185
|
|
Finished goods
|
214
|
|
|
190
|
|
||
Service parts
|
355
|
|
|
405
|
|
||
Total inventories
|
$
|
806
|
|
|
$
|
780
|
|
In millions
|
December 31, 2018
|
|
December 31, 2017
|
||||
Property, plant and equipment
|
|
|
|
||||
Land and improvements
|
$
|
6
|
|
|
$
|
7
|
|
Buildings and improvements
|
273
|
|
|
278
|
|
||
Machinery and other equipment
|
650
|
|
|
633
|
|
||
Property, plant and equipment, gross
|
929
|
|
|
918
|
|
||
Less: accumulated depreciation
|
(570
|
)
|
|
(577
|
)
|
||
Total property, plant and equipment, net
|
$
|
359
|
|
|
$
|
341
|
|
•
|
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.
|
Consolidating Statements of Operations and Comprehensive Income (Loss)
|
|||||||||||||||||||
For the year ended December 31, 2018
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Product revenue
|
$
|
1,091
|
|
|
$
|
36
|
|
|
$
|
1,440
|
|
|
$
|
(226
|
)
|
|
$
|
2,341
|
|
Service revenue
|
2,117
|
|
|
33
|
|
|
1,914
|
|
|
—
|
|
|
4,064
|
|
|||||
Total revenue
|
3,208
|
|
|
69
|
|
|
3,354
|
|
|
(226
|
)
|
|
6,405
|
|
|||||
Cost of products
|
1,000
|
|
|
32
|
|
|
1,182
|
|
|
(226
|
)
|
|
1,988
|
|
|||||
Cost of services
|
1,443
|
|
|
13
|
|
|
1,286
|
|
|
—
|
|
|
2,742
|
|
|||||
Selling, general and administrative expenses
|
577
|
|
|
2
|
|
|
426
|
|
|
—
|
|
|
1,005
|
|
|||||
Research and development expenses
|
102
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
252
|
|
|||||
Asset impairment charges
|
210
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
227
|
|
|||||
Total operating expenses
|
3,332
|
|
|
47
|
|
|
3,061
|
|
|
(226
|
)
|
|
6,214
|
|
|||||
Income (loss) from operations
|
(124
|
)
|
|
22
|
|
|
293
|
|
|
—
|
|
|
191
|
|
|||||
Interest expense
|
(161
|
)
|
|
—
|
|
|
(15
|
)
|
|
8
|
|
|
(168
|
)
|
|||||
Other income (expense), net
|
7
|
|
|
6
|
|
|
11
|
|
|
(8
|
)
|
|
16
|
|
|||||
Income (loss) from continuing operations before income taxes
|
(278
|
)
|
|
28
|
|
|
289
|
|
|
—
|
|
|
39
|
|
|||||
Income tax expense (benefit)
|
(56
|
)
|
|
72
|
|
|
57
|
|
|
—
|
|
|
73
|
|
|||||
Income (loss) from continuing operations before earnings in subsidiaries
|
(222
|
)
|
|
(44
|
)
|
|
232
|
|
|
—
|
|
|
(34
|
)
|
|||||
Equity in earnings of consolidated subsidiaries
|
184
|
|
|
237
|
|
|
—
|
|
|
(421
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
(38
|
)
|
|
193
|
|
|
232
|
|
|
(421
|
)
|
|
(34
|
)
|
|||||
Income (loss) from discontinued operations, net of tax
|
(50
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(52
|
)
|
|||||
Net income (loss)
|
$
|
(88
|
)
|
|
$
|
193
|
|
|
$
|
230
|
|
|
$
|
(421
|
)
|
|
$
|
(86
|
)
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Net income (loss) attributable to NCR
|
$
|
(88
|
)
|
|
$
|
193
|
|
|
$
|
228
|
|
|
$
|
(421
|
)
|
|
$
|
(88
|
)
|
Total comprehensive income (loss)
|
(136
|
)
|
|
118
|
|
|
174
|
|
|
(292
|
)
|
|
(136
|
)
|
|||||
Less comprehensive income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
(136
|
)
|
|
$
|
118
|
|
|
$
|
174
|
|
|
$
|
(292
|
)
|
|
$
|
(136
|
)
|
Consolidating Statements of Operations and Comprehensive Income (Loss)
|
|||||||||||||||||||
For the year ended December 31, 2017
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Product revenue
|
$
|
1,329
|
|
|
$
|
91
|
|
|
$
|
1,454
|
|
|
$
|
(295
|
)
|
|
$
|
2,579
|
|
Service revenue
|
2,051
|
|
|
29
|
|
|
1,857
|
|
|
—
|
|
|
3,937
|
|
|||||
Total revenue
|
3,380
|
|
|
120
|
|
|
3,311
|
|
|
(295
|
)
|
|
6,516
|
|
|||||
Cost of products
|
1,042
|
|
|
37
|
|
|
1,237
|
|
|
(295
|
)
|
|
2,021
|
|
|||||
Cost of services
|
1,360
|
|
|
10
|
|
|
1,270
|
|
|
—
|
|
|
2,640
|
|
|||||
Selling, general and administrative expenses
|
490
|
|
|
3
|
|
|
430
|
|
|
—
|
|
|
923
|
|
|||||
Research and development expenses
|
184
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
241
|
|
|||||
Restructuring-related charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total operating expenses
|
3,076
|
|
|
50
|
|
|
2,994
|
|
|
(295
|
)
|
|
5,825
|
|
|||||
Income (loss) from operations
|
304
|
|
|
70
|
|
|
317
|
|
|
—
|
|
|
691
|
|
|||||
Interest expense
|
(159
|
)
|
|
—
|
|
|
(9
|
)
|
|
5
|
|
|
(163
|
)
|
|||||
Other income (expense), net
|
(74
|
)
|
|
1
|
|
|
32
|
|
|
(5
|
)
|
|
(46
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
71
|
|
|
71
|
|
|
340
|
|
|
—
|
|
|
482
|
|
|||||
Income tax expense (benefit)
|
113
|
|
|
107
|
|
|
22
|
|
|
—
|
|
|
242
|
|
|||||
Income (loss) from continuing operations before earnings in subsidiaries
|
(42
|
)
|
|
(36
|
)
|
|
318
|
|
|
—
|
|
|
240
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
279
|
|
|
291
|
|
|
—
|
|
|
(570
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
237
|
|
|
255
|
|
|
318
|
|
|
(570
|
)
|
|
240
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Net income (loss)
|
$
|
232
|
|
|
$
|
255
|
|
|
$
|
318
|
|
|
$
|
(570
|
)
|
|
$
|
235
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Net income (loss) attributable to NCR
|
$
|
232
|
|
|
$
|
255
|
|
|
$
|
315
|
|
|
$
|
(570
|
)
|
|
$
|
232
|
|
Total comprehensive income (loss)
|
238
|
|
|
269
|
|
|
317
|
|
|
(585
|
)
|
|
239
|
|
|||||
Less comprehensive income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
238
|
|
|
$
|
269
|
|
|
$
|
316
|
|
|
$
|
(585
|
)
|
|
$
|
238
|
|
Consolidating Statements of Operations and Comprehensive Income (Loss)
|
|||||||||||||||||||
For the year ended December 31, 2016
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Product revenue
|
$
|
1,293
|
|
|
$
|
111
|
|
|
$
|
1,768
|
|
|
$
|
(435
|
)
|
|
$
|
2,737
|
|
Service revenue
|
1,962
|
|
|
36
|
|
|
1,808
|
|
|
—
|
|
|
3,806
|
|
|||||
Total revenue
|
3,255
|
|
|
147
|
|
|
3,576
|
|
|
(435
|
)
|
|
6,543
|
|
|||||
Cost of products
|
1,028
|
|
|
50
|
|
|
1,456
|
|
|
(435
|
)
|
|
2,099
|
|
|||||
Cost of services
|
1,359
|
|
|
12
|
|
|
1,255
|
|
|
—
|
|
|
2,626
|
|
|||||
Selling, general and administrative expenses
|
526
|
|
|
4
|
|
|
374
|
|
|
—
|
|
|
904
|
|
|||||
Research and development expenses
|
160
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
225
|
|
|||||
Restructuring-related charges
|
3
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
15
|
|
|||||
Total operating expenses
|
3,076
|
|
|
66
|
|
|
3,162
|
|
|
(435
|
)
|
|
5,869
|
|
|||||
Income (loss) from operations
|
179
|
|
|
81
|
|
|
414
|
|
|
—
|
|
|
674
|
|
|||||
Interest expense
|
(165
|
)
|
|
—
|
|
|
(10
|
)
|
|
5
|
|
|
(170
|
)
|
|||||
Other income (expense), net
|
(42
|
)
|
|
(23
|
)
|
|
(55
|
)
|
|
(5
|
)
|
|
(125
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
(28
|
)
|
|
58
|
|
|
349
|
|
|
—
|
|
|
379
|
|
|||||
Income tax expense (benefit)
|
(20
|
)
|
|
21
|
|
|
91
|
|
|
—
|
|
|
92
|
|
|||||
Income (loss) from continuing operations before earnings in subsidiaries
|
(8
|
)
|
|
37
|
|
|
258
|
|
|
—
|
|
|
287
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
291
|
|
|
304
|
|
|
—
|
|
|
(595
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
283
|
|
|
341
|
|
|
258
|
|
|
(595
|
)
|
|
287
|
|
|||||
Income (loss) from discontinued operations, net of tax
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|||||
Net income (loss)
|
$
|
270
|
|
|
$
|
341
|
|
|
$
|
258
|
|
|
$
|
(595
|
)
|
|
$
|
274
|
|
Net income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||
Net income (loss) attributable to NCR
|
$
|
270
|
|
|
$
|
341
|
|
|
$
|
254
|
|
|
$
|
(595
|
)
|
|
$
|
270
|
|
Total comprehensive income (loss)
|
215
|
|
|
277
|
|
|
195
|
|
|
(473
|
)
|
|
214
|
|
|||||
Less comprehensive income (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Comprehensive income (loss) attributable to NCR common stockholders
|
$
|
215
|
|
|
$
|
277
|
|
|
$
|
196
|
|
|
$
|
(473
|
)
|
|
$
|
215
|
|
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
|
|
|||||
Deferred service revenue and customer deposits
|
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
|
|
Consolidating Balance Sheet
|
|||||||||||||||||||
December 31, 2017
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
97
|
|
|
$
|
11
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
537
|
|
Accounts receivable, net
|
62
|
|
|
12
|
|
|
1,196
|
|
|
—
|
|
|
1,270
|
|
|||||
Inventories
|
311
|
|
|
7
|
|
|
462
|
|
|
—
|
|
|
780
|
|
|||||
Due from affiliates
|
646
|
|
|
1,801
|
|
|
283
|
|
|
(2,730
|
)
|
|
—
|
|
|||||
Other current assets
|
78
|
|
|
39
|
|
|
162
|
|
|
(36
|
)
|
|
243
|
|
|||||
Total current assets
|
1,194
|
|
|
1,870
|
|
|
2,532
|
|
|
(2,766
|
)
|
|
2,830
|
|
|||||
Property, plant and equipment, net
|
207
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
341
|
|
|||||
Goodwill
|
2,228
|
|
|
—
|
|
|
513
|
|
|
—
|
|
|
2,741
|
|
|||||
Intangibles, net
|
503
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
578
|
|
|||||
Prepaid pension cost
|
—
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
118
|
|
|||||
Deferred income taxes
|
334
|
|
|
—
|
|
|
157
|
|
|
(31
|
)
|
|
460
|
|
|||||
Investments in subsidiaries
|
3,008
|
|
|
2,942
|
|
|
—
|
|
|
(5,950
|
)
|
|
—
|
|
|||||
Due from affiliates
|
31
|
|
|
1
|
|
|
39
|
|
|
(71
|
)
|
|
—
|
|
|||||
Other assets
|
472
|
|
|
63
|
|
|
51
|
|
|
—
|
|
|
586
|
|
|||||
Total assets
|
$
|
7,977
|
|
|
$
|
4,876
|
|
|
$
|
3,619
|
|
|
$
|
(8,818
|
)
|
|
$
|
7,654
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
52
|
|
Accounts payable
|
382
|
|
|
—
|
|
|
380
|
|
|
—
|
|
|
762
|
|
|||||
Payroll and benefits liabilities
|
124
|
|
|
—
|
|
|
95
|
|
|
—
|
|
|
219
|
|
|||||
Deferred service revenue and customer deposits
|
216
|
|
|
6
|
|
|
236
|
|
|
—
|
|
|
458
|
|
|||||
Due to affiliates
|
1,884
|
|
|
130
|
|
|
716
|
|
|
(2,730
|
)
|
|
—
|
|
|||||
Other current liabilities
|
204
|
|
|
5
|
|
|
225
|
|
|
(36
|
)
|
|
398
|
|
|||||
Total current liabilities
|
2,862
|
|
|
141
|
|
|
1,652
|
|
|
(2,766
|
)
|
|
1,889
|
|
|||||
Long-term debt
|
2,937
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2,939
|
|
|||||
Pension and indemnity plan liabilities
|
515
|
|
|
—
|
|
|
283
|
|
|
—
|
|
|
798
|
|
|||||
Postretirement and postemployment benefits liabilities
|
20
|
|
|
3
|
|
|
110
|
|
|
—
|
|
|
133
|
|
|||||
Income tax accruals
|
20
|
|
|
5
|
|
|
123
|
|
|
—
|
|
|
148
|
|
|||||
Due to affiliates
|
—
|
|
|
39
|
|
|
32
|
|
|
(71
|
)
|
|
—
|
|
|||||
Other liabilities
|
94
|
|
|
36
|
|
|
101
|
|
|
(31
|
)
|
|
200
|
|
|||||
Total liabilities
|
6,448
|
|
|
224
|
|
|
2,303
|
|
|
(2,868
|
)
|
|
6,107
|
|
|||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||
Series A Convertible Preferred Stock
|
810
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
810
|
|
|||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Total NCR stockholders’ equity
|
719
|
|
|
4,652
|
|
|
1,298
|
|
|
(5,950
|
)
|
|
719
|
|
|||||
Noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Total stockholders’ equity
|
719
|
|
|
4,652
|
|
|
1,301
|
|
|
(5,950
|
)
|
|
722
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
7,977
|
|
|
$
|
4,876
|
|
|
$
|
3,619
|
|
|
$
|
(8,818
|
)
|
|
$
|
7,654
|
|
Consolidating Statement of Cash Flows
|
|||||||||||||||||||
For the year ended December 31, 2018
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
353
|
|
|
$
|
(138
|
)
|
|
$
|
375
|
|
|
$
|
(18
|
)
|
|
$
|
572
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property, plant and equipment
|
(109
|
)
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
(143
|
)
|
|||||
Additions to capitalized software
|
(144
|
)
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
(170
|
)
|
|||||
Investments in equity affiliates
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|||||
Proceeds from (payments of) intercompany notes
|
228
|
|
|
135
|
|
|
—
|
|
|
(363
|
)
|
|
—
|
|
|||||
Acquisitions
|
(206
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(206
|
)
|
|||||
Proceeds from the sale of PPE
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|||||
Other investing activities, net
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net cash provided by (used in) investing activities
|
(248
|
)
|
|
135
|
|
|
(58
|
)
|
|
(349
|
)
|
|
(520
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax withholding payments on behalf of employees
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|||||
Repurchases of Company common stock
|
(210
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(210
|
)
|
|||||
Short term borrowings, net
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Borrowings on term facility
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Payments of term credit facilities
|
(51
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51
|
)
|
|||||
Proceeds from employee stock plans
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||
Payments on revolving credit facilities
|
(1,755
|
)
|
|
—
|
|
|
(478
|
)
|
|
—
|
|
|
(2,233
|
)
|
|||||
Borrowings on revolving credit facilities
|
1,875
|
|
|
—
|
|
|
578
|
|
|
—
|
|
|
2,453
|
|
|||||
Equity contribution
|
—
|
|
|
—
|
|
|
14
|
|
|
(14
|
)
|
|
—
|
|
|||||
Dividends distribution to consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
18
|
|
|
—
|
|
|||||
Borrowings (repayments) of intercompany notes
|
—
|
|
|
—
|
|
|
(363
|
)
|
|
363
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
(158
|
)
|
|
—
|
|
|
(267
|
)
|
|
367
|
|
|
(58
|
)
|
|||||
Cash flows from discontinued operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in discontinued operations operating activities
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(1
|
)
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(25
|
)
|
|||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(90
|
)
|
|
(3
|
)
|
|
26
|
|
|
—
|
|
|
(67
|
)
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
97
|
|
|
11
|
|
|
435
|
|
|
—
|
|
|
543
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
461
|
|
|
$
|
—
|
|
|
$
|
476
|
|
In millions
|
December 31, 2018
|
||||||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Consolidated Statements of Cash Flows
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash and cash equivalents
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
450
|
|
|
$
|
—
|
|
|
$
|
464
|
|
Restricted cash included in Other assets
|
1
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
12
|
|
|||||
Total cash, cash equivalents and restricted cash
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
461
|
|
|
$
|
—
|
|
|
$
|
476
|
|
Consolidating Statement of Cash Flows
|
|||||||||||||||||||
For the year ended December 31, 2017
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
459
|
|
|
$
|
(180
|
)
|
|
$
|
483
|
|
|
$
|
(10
|
)
|
|
$
|
752
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property, plant and equipment
|
(87
|
)
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(128
|
)
|
|||||
Additions to capitalized software
|
(133
|
)
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(166
|
)
|
|||||
Proceeds from (payments of) intercompany notes
|
230
|
|
|
180
|
|
|
2
|
|
|
(412
|
)
|
|
—
|
|
|||||
Acquisitions
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Proceeds from the sale of PPE
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||
Proceeds from divestitures
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Investments in equity affiliates
|
3
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|||||
Other investing activities, net
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
3
|
|
|||||
Net cash provided by (used in) investing activities
|
7
|
|
|
180
|
|
|
(62
|
)
|
|
(415
|
)
|
|
(290
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short term borrowings, net
|
(5
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(4
|
)
|
|||||
Payments on term credit facilities
|
(56
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(61
|
)
|
|||||
Payments on revolving credit facilities
|
(1,700
|
)
|
|
—
|
|
|
(240
|
)
|
|
—
|
|
|
(1,940
|
)
|
|||||
Borrowings on revolving credit facilities
|
1,700
|
|
|
—
|
|
|
240
|
|
|
—
|
|
|
1,940
|
|
|||||
Tax withholding payments on behalf of employees
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||||
Proceeds from employee stock plans
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
Other financing activities
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Dividend distribution to consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
10
|
|
|
—
|
|
|||||
Repurchases of Company common stock
|
(350
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(350
|
)
|
|||||
Equity contribution
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
3
|
|
|
—
|
|
|||||
Borrowings (repayments) of intercompany notes
|
—
|
|
|
(2
|
)
|
|
(410
|
)
|
|
412
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
(428
|
)
|
|
(2
|
)
|
|
(429
|
)
|
|
425
|
|
|
(434
|
)
|
|||||
Cash flows from discontinued operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in discontinued operations operating activities
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
1
|
|
|
15
|
|
|
—
|
|
|
16
|
|
|||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
30
|
|
|
(1
|
)
|
|
7
|
|
|
—
|
|
|
36
|
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
67
|
|
|
12
|
|
|
428
|
|
|
—
|
|
|
507
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
97
|
|
|
$
|
11
|
|
|
$
|
435
|
|
|
$
|
—
|
|
|
$
|
543
|
|
In millions
|
December 31, 2017
|
||||||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Consolidated Statements of Cash Flows
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash and cash equivalents
|
$
|
97
|
|
|
$
|
11
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
537
|
|
Restricted cash included in Other assets
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||
Total cash, cash equivalents and restricted cash
|
$
|
97
|
|
|
$
|
11
|
|
|
$
|
435
|
|
|
$
|
—
|
|
|
$
|
543
|
|
Consolidating Statement of Cash Flows
|
|||||||||||||||||||
For the year ended December 31, 2016
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
336
|
|
|
(160
|
)
|
|
723
|
|
|
(3
|
)
|
|
896
|
|
|||||
Investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property, plant and equipment
|
(33
|
)
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
(73
|
)
|
|||||
Additions to capitalized software
|
(114
|
)
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
(154
|
)
|
|||||
Proceeds from (payments of) intercompany notes
|
365
|
|
|
115
|
|
|
—
|
|
|
(480
|
)
|
|
—
|
|
|||||
Proceeds from divestitures
|
22
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
47
|
|
|||||
Investments in equity affiliates
|
(9
|
)
|
|
50
|
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|||||
Other investing activities, net
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Net cash provided by (used in) investing activities
|
222
|
|
|
165
|
|
|
(55
|
)
|
|
(521
|
)
|
|
(189
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Short term borrowings, net
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Payments on revolving credit facilities
|
(89
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(97
|
)
|
|||||
Payments on revolving credit facilities
|
(1,151
|
)
|
|
—
|
|
|
(280
|
)
|
|
—
|
|
|
(1,431
|
)
|
|||||
Borrowings on revolving credit facilities
|
1,051
|
|
|
—
|
|
|
280
|
|
|
—
|
|
|
1,331
|
|
|||||
Tax withholding payments on behalf of employees
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||
Proceeds from employee stock plans
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
Debt issuance costs
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Dividend distribution to consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
53
|
|
|
—
|
|
|||||
Other financing activities
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Equity contribution
|
—
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
—
|
|
|||||
Borrowings (repayments) of intercompany notes
|
(16
|
)
|
|
—
|
|
|
(464
|
)
|
|
480
|
|
|
—
|
|
|||||
Tender offer share repurchase
|
(250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|||||
Net cash provided by (used in) financing activities
|
(469
|
)
|
|
—
|
|
|
(522
|
)
|
|
524
|
|
|
(467
|
)
|
|||||
Cash flows from discontinued operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in discontinued operations operating activities
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
(13
|
)
|
|
(16
|
)
|
|
—
|
|
|
(29
|
)
|
|||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
50
|
|
|
(8
|
)
|
|
130
|
|
|
—
|
|
|
172
|
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
17
|
|
|
20
|
|
|
298
|
|
|
—
|
|
|
335
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
67
|
|
|
$
|
12
|
|
|
$
|
428
|
|
|
$
|
—
|
|
|
$
|
507
|
|
In millions
|
December 31, 2016
|
||||||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash as shown in the Consolidated Statements of Cash Flows
|
Parent Issuer
|
|
Guarantor Subsidiary
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash and cash equivalents
|
$
|
67
|
|
|
$
|
12
|
|
|
$
|
419
|
|
|
$
|
—
|
|
|
$
|
498
|
|
Restricted cash included in Other assets
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||
Total cash, cash equivalents and restricted cash
|
$
|
67
|
|
|
$
|
12
|
|
|
$
|
428
|
|
|
$
|
—
|
|
|
$
|
507
|
|
In millions, except per share amounts
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
2018
|
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
|
$
|
1,517
|
|
|
$
|
1,537
|
|
|
$
|
1,550
|
|
|
$
|
1,801
|
|
Gross margin
|
|
420
|
|
|
403
|
|
|
410
|
|
|
442
|
|
||||
Income from operations
|
|
109
|
|
|
(106
|
)
|
|
125
|
|
|
63
|
|
||||
Income from continuing operations (attributable to NCR)
|
|
55
|
|
|
(143
|
)
|
|
85
|
|
|
(33
|
)
|
||||
Income (loss) from discontinued operations, net of tax
|
|
(35
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(14
|
)
|
||||
Net (loss) income attributable to NCR common stockholders
|
|
8
|
|
|
(157
|
)
|
|
72
|
|
|
(60
|
)
|
||||
Income (loss) per share attributable to NCR common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) per common share from continuing operations
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.36
|
|
|
$
|
(1.31
|
)
|
|
$
|
0.62
|
|
|
$
|
(0.39
|
)
|
Diluted
|
|
$
|
0.35
|
|
|
$
|
(1.31
|
)
|
|
$
|
0.57
|
|
|
$
|
(0.39
|
)
|
Net (loss) income per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.07
|
|
|
$
|
(1.33
|
)
|
|
$
|
0.61
|
|
|
$
|
(0.51
|
)
|
Diluted
|
|
$
|
0.06
|
|
|
$
|
(1.33
|
)
|
|
$
|
0.56
|
|
|
$
|
(0.51
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
|
$
|
1,478
|
|
|
$
|
1,593
|
|
|
$
|
1,663
|
|
|
$
|
1,782
|
|
Gross margin
|
|
412
|
|
|
461
|
|
|
472
|
|
|
510
|
|
||||
Income from operations
|
|
115
|
|
|
175
|
|
|
199
|
|
|
202
|
|
||||
Income from continuing operations (attributable to NCR)
|
|
57
|
|
|
97
|
|
|
118
|
|
|
(35
|
)
|
||||
(Loss) from discontinued operations, net of tax
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(10
|
)
|
||||
Net income attributable to NCR common stockholders
|
|
(17
|
)
|
|
90
|
|
|
106
|
|
|
(56
|
)
|
||||
Income per share attributable to NCR common stockholders:
|
|
|
|
|
|
|
|
|
||||||||
Income per common share from continuing operations
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
(0.14
|
)
|
|
$
|
0.70
|
|
|
$
|
0.87
|
|
|
$
|
(0.38
|
)
|
Diluted
|
|
$
|
(0.14
|
)
|
|
$
|
0.64
|
|
|
$
|
0.77
|
|
|
$
|
(0.38
|
)
|
Net income per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
(0.14
|
)
|
|
$
|
0.74
|
|
|
$
|
0.87
|
|
|
$
|
(0.46
|
)
|
Diluted
|
|
$
|
(0.14
|
)
|
|
$
|
0.67
|
|
|
$
|
0.77
|
|
|
$
|
(0.46
|
)
|