

Condensed Consolidating Statements of Operations and Comprehensive Income
For the three months ended June 30, 2013

(in millions)	Parent Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	212		$	81		$	516		$	(66	)	$	743
Service revenue	241			68			483			—			792
Total revenue	453			149			999			(66		)	1,535
Cost of products	178			31			407			(66		)	550
Cost of services	185			27			347			—			559
Selling, general and administrative expenses	93			32			107			—			232
Research and development expenses	10			6			39			—			55
Total operating expenses	466			96			900			(66		)	1,396
Income (loss) from operations	(13		)	53			99			—			139
Interest expense	(25		)	(3		)	(13		)	15			(26		)
Other (expense) income, net	(2		)	(3		)	17			(15		)	(3		)
Income (loss) from continuing operations before income taxes	(40		)	47			103			—			110
Income tax expense (benefit)	(18		)	21			20			—			23
Income (loss) from continuing operations before earnings in subsidiaries	(22		)	26			83			—			87
Equity in earnings of consolidated subsidiaries	108			62			—			(170		)	—
Income (loss) from continuing operations	86			88			83			(170		)	87
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	86		$	88		$	83		$	(170	)	$	87
Net income (loss) attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to NCR	$	86		$	88		$	82		$	(170	)	$	86
Total comprehensive income (loss)	57			107			56			(164		)	56
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			(1		)	—			(1		)
Comprehensive income (loss) attributable to NCR common stockholders	$	57		$	107		$	57		$	(164	)	$	57



Condensed Consolidating Statements of Operations and Comprehensive Income
For the three months ended June 30, 2012

(in millions)	Parent Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	256		$	68		$	454		$	(72	)	$	706
Service revenue	242			55			406			—			703
Total revenue	498			123			860			(72		)	1,409
Cost of products	201			27			376			(72		)	532
Cost of services	166			23			314			—			503
Selling, general and administrative expenses	97			26			72			—			195
Research and development expenses	6			6			37			—			49
Total operating expenses	470			82			799			(72		)	1,279
Income (loss) from operations	28			41			61			—			130
Interest expense	(9		)	(5		)	17			(11		)	(8		)
Other (expense) income, net	(2		)	1			(15		)	11			(5		)
Income (loss) from continuing operations before income taxes	17			37			63			—			117
Income tax expense (benefit)	(5		)	20			13			—			28
Income (loss) from continuing operations before earnings in subsidiaries	22			17			50			—			89
Equity in earnings of consolidated subsidiaries	67			67			—			(134		)	—
Income (loss) from continuing operations	89			84			50			(134		)	89
Income (loss) from discontinued operations, net of tax	13			—			—			—			13
Net income (loss)	$	102		$	84		$	50		$	(134	)	$	102
Net income (loss) attributable to noncontrolling interests	—			—			—			—			—
Net income (loss) attributable to NCR	$	102		$	84		$	50		$	(134	)	$	102
Total comprehensive income (loss)	88			64			34			(97		)	89
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	88		$	64		$	33		$	(97	)	$	88



Condensed Consolidating Statements of Operations and Comprehensive Income
For the six months ended June 30, 2013

(in millions)	Parent Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	449		$	139		$	939		$	(117	)	$	1,410
Service revenue	482			130			923			—			1,535
Total revenue	931			269			1,862			(117		)	2,945
Cost of products	363			60			747			(117		)	1,053
Cost of services	385			51			661			—			1,097
Selling, general and administrative expenses	202			60			199			—			461
Research and development expenses	23			10			77			—			110
Total operating expenses	973			181			1,684			(117		)	2,721
Income (loss) from operations	(42		)	88			178			—			224
Interest expense	(47		)	(6		)	(29		)	35			(47		)
Other (expense) income, net	2			(7		)	39			(35		)	(1		)
Income (loss) from continuing operations before income taxes	(87		)	75			188			—			176
Income tax expense (benefit)	(36		)	22			39			—			25
Income (loss) from continuing operations before earnings in subsidiaries	(51		)	53			149			—			151
Equity in earnings of consolidated subsidiaries	199			132			—			(331		)	—
Income (loss) from continuing operations	148			185			149			(331		)	151
Income (loss) from discontinued operations, net of tax	(1		)	—			—			—			(1		)
Net income (loss)	$	147		$	185		$	149		$	(331	)	$	150
Net income (loss) attributable to noncontrolling interests	—			—			3			—			3
Net income (loss) attributable to NCR	$	147		$	185		$	146		$	(331	)	$	147
Total comprehensive income (loss)	122			190			82			(272		)	122
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			—			—			—
Comprehensive income (loss) attributable to NCR common stockholders	$	122		$	190		$	82		$	(272	)	$	122



Condensed Consolidating Statements of Operations and Comprehensive Income
For the six months ended June 30, 2012

(in millions)	Parent Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	475		$	116		$	805		$	(120	)	$	1,276
Service revenue	477			106			794			—			1,377
Total revenue	952			222			1,599			(120		)	2,653
Cost of products	369			51			677			(120		)	977
Cost of services	354			44			589			—			987
Selling, general and administrative expenses	185			49			152			—			386
Research and development expenses	17			12			66			—			95
Total operating expenses	925			156			1,484			(120		)	2,445
Income (loss) from operations	27			66			115			—			208
Interest expense	(19		)	(9		)	(2		)	13			(17		)
Other (expense) income, net	(2		)	(1		)	9			(13		)	(7		)
Income (loss) from continuing operations before income taxes	6			56			122			—			184
Income tax expense (benefit)	(8		)	29			14			—			35
Income (loss) from continuing operations before earnings in subsidiaries	14			27			108			—			149
Equity in earnings of consolidated subsidiaries	136			108			—			(244		)	—
Income (loss) from continuing operations	150			135			108			(244		)	149
Income (loss) from discontinued operations, net of tax	2			—			2			—			4
Net income (loss)	$	152		$	135		$	110		$	(244	)	$	153
Net income (loss) attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to NCR	$	152		$	135		$	109		$	(244	)	$	152
Total comprehensive income (loss)	135			140			80			(220		)	135
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			—			—			—
Comprehensive income (loss) attributable to NCR common stockholders	$	135		$	140		$	80		$	(220	)	$	135



Condensed Consolidating Balance Sheet
June 30, 2013

(in millions)	Parent Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	32		24		404		—			460
Accounts receivable, net	287		98		881		—			1,266
Inventories, net	281		47		497		—			825
Due from affliates	798		683		219		(1,700		)	—
Other current assets	322		36		218		(51		)	525
Total current assets	1,720		888		2,219		(1,751		)	3,076
Property, plant and equipment, net	127		13		187		—			327
Goodwill	274		585		596		—			1,455
Intangibles, net	15		238		237		—			490
Prepaid pension cost	—		—		394		—			394
Deferred income taxes	457		9		72		(2		)	536
Investments in subsidiaries	2,450		968		—		(3,418		)	—
Due from affliates	26		20		234		(280		)	—
Other assets	279		55		94		—			428
Total assets	$	5,348	$	2,776	$	4,033	$	(5,451	)	$	6,706

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	78		—		7		—			85
Accounts payable	193		20		369		—			582
Payroll and benefits liabilities	88		10		110		—			208
Deferred service revenue and customer deposits	130		45		368		—			543
Due to affliates	367		544		789		(1,700		)	—
Other current liabilities	201		12		258		(51		)	420
Total current liabilities	1,057		631		1,901		(1,751		)	1,838
Long-term debt	2,077		—		2		—			2,079
Pension and indemnity plan liabilities	371		—		367		—			738
Postretirement and postemployment benefits liabilities	73		—		118		—			191
Income tax accruals	2		9		128		—			139
Environmental liabilities	137		—		—		—			137
Due to affliates	192		59		29		(280		)	—
Other liabilities	9		14		79		(2		)	100
Total liabilities	3,918		713		2,624		(2,033		)	5,222
Redeemable noncontrolling interest	—		—		16		—			16
Stockholders’ equity
Total NCR stockholders’ equity	1,430		2,063		1,355		(3,418		)	1,430
Noncontrolling interests in subsidiaries	—		—		38		—			38
Total stockholders’ equity	1,430		2,063		1,393		(3,418		)	1,468
Total liabilities and stockholders’ equity	$	5,348	$	2,776	$	4,033	$	(5,451	)	$	6,706



Condensed Consolidating Balance Sheet
December 31, 2012

(in millions)	Parent Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	555		22		492		—			1,069
Accounts receivable, net	243		84		759		—			1,086
Inventories, net	273		40		484		—			797
Due from affliates	623		693		479		(1,795		)	—
Other current assets	244		41		204		(35		)	454
Total current assets	1,938		880		2,418		(1,830		)	3,406
Property, plant and equipment, net	145		4		159		—			308
Goodwill	273		568		162		—			1,003
Intangibles, net	17		245		42		—			304
Prepaid pension cost	—		—		368		—			368
Deferred income taxes	472		—		70		(8		)	534
Investments in subsidiaries	2,185		640		—		(2,825		)	—
Due from affliates	26		20		238		(284		)	—
Other assets	313		48		87		—			448
Total assets	$	5,369	$	2,405	$	3,544	$	(4,947	)	$	6,371

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	71		—		1		—			72
Accounts payable	204		22		385		—			611
Payroll and benefits liabilities	93		10		94		—			197
Deferred service revenue and customer deposits	104		30		321		—			455
Due to affliates	687		578		530		(1,795		)	—
Other current liabilities	169		18		255		(35		)	407
Total current liabilities	1,328		658		1,586		(1,830		)	1,742
Long-term debt	1,889		—		2		—			1,891
Pension and indemnity plan liabilities	441		1		370		—			812
Postretirement and postemployment benefits liabilities	79		—		167		—			246
Income tax accruals	3		8		127		—			138
Environmental liabilities	171		—		—		—			171
Due to affliates	195		60		29		(284		)	—
Other liabilities	16		15		56		(8		)	79
Total liabilities	4,122		742		2,337		(2,122		)	5,079
Redeemable noncontrolling interest	—		—		15		—			15
Stockholders’ equity
Total NCR stockholders’ equity	1,247		1,663		1,162		(2,825		)	1,247
Noncontrolling interests in subsidiaries	—		—		30		—			30
Total stockholders’ equity	1,247		1,663		1,192		(2,825		)	1,277
Total liabilities and stockholders’ equity	$	5,369	$	2,405	$	3,544	$	(4,947	)	$	6,371



Condensed Consolidating Statement of Cash Flows
For the six months ended June 30, 2013

(in millions)	Parent Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(234	)	$	175		$	77		$	(29	)	$	(11	)
Investing activities
Expenditures for property, plant and equipment	(8		)	(2		)	(34		)	—			(44		)
Proceeds from sales of property, plant and equipment	2			—			—			—			2
Additions to capitalized software	(22		)	(10		)	(13		)	—			(45		)
Business acquisitions, net of cash acquired	—			(24		)	(672		)	—			(696		)
Proceeds from (payments of) intercompany notes	(177		)	—			—			177			—
Investments in equity affiliates	(275		)	—			—			275			—
Other investing activities, net	5			—			1			—			6
Net cash used in investing activities	(475		)	(36		)	(718		)	452			(777		)
Financing activities
Tax withholding payments on behalf of employees	(27		)	—			—			—			(27		)
Proceeds from employee stock plans	45			—			—			—			45
Equity contribution	—			—			275			(275		)	—
Short term borrowings, net	—			—			6			—			6
Repayment of term credit facility	(35		)	—			—			—			(35		)
Payments on revolving credit facility	(495		)	—			—			—			(495		)
Borrowings on revolving credit facility	725			—			—			—			725
Debt issuance cost	(3		)	—			—			—			(3		)
Borrowings (repayments) of intercompany notes	—			(135		)	312			(177		)	—
Dividend distribution to consolidated subsidiaries	—			—			(29		)	29			—
Net cash provided by (used in) financing activities	210			(135		)	564			(423		)	216
Cash flows from discontinued operations
Net cash provided by operating activities	(24		)	—			—			—			(24		)
Net cash provided by discontinued operations	(24		)	—			—			—			(24		)
Effect of exchange rate changes on cash and cash equivalents	—			(2		)	(11		)	—			(13		)
Increase (decrease) in cash and cash equivalents	(523		)	2			(88		)	—			(609		)
Cash and cash equivalents at beginning of period	555			22			492			—			1,069
Cash and cash equivalents at end of period	$	32		$	24		$	404		$	—		$	460



Condensed Consolidating Statement of Cash Flows
For the six months ended June 30, 2012

(in millions)	Parent Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	71		$	73		$	(19	)	$	(5	)	$	120
Investing activities
Expenditures for property, plant and equipment	(17		)	(3		)	(11		)	—			(31		)
Proceeds from sales of property, plant and equipment and other assets	—			—			8			—			8
Additions to capitalized software	(25		)	(4		)	(8		)	—			(37		)
Business acquisitions, net of cash acquired	—			(11		)	(14		)	—			(25		)
Proceeds from (payments of) intercompany notes	36			—			11			(47		)	—
Investments in equity affiliates	(13		)	—			—			13			—
Other investing activities, net	(2		)	10			—			—			8
Net cash provided by (used in) investing activities	(21		)	(8		)	(14		)	(34		)	(77		)
Financing activities
Tax withholding payments on behalf of employees	(9		)	—			—			—			(9		)
Proceeds from employee stock plans	13			—			—			—			13
Equity contribution	—			—			13			(13		)	—
Short term borrowings, net	—			—			2			—			2
Payments on revolving credit facility	(305		)	—			—			—			(305		)
Borrowings on revolving credit facility	190			—			—			—			190
Dividend distribution to consolidated subsidiaries	—			—			(5		)	5			—
Borrowings (repayments) of intercompany notes	(11		)	(36		)	—			47			—
Net cash provided by (used in) financing activities	(122		)	(36		)	10			39			(109		)
Cash flows from discontinued operations
Net cash used in operating activities	(44		)	—			—			—			(44		)
Net cash used in investing activities	98			—			—			—			98
Net cash used in discontinued operations	54			—			—			—			54
Effect of exchange rate changes on cash and cash equivalents	(1		)	—			(8		)	—			(9		)
Increase (decrease) in cash and cash equivalents	(19		)	29			(31		)	—			(21		)
Cash and cash equivalents at beginning of period	30			13			355			—			398
Cash and cash equivalents at end of period	$	11		$	42		$	324		$	—		$	377