

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the three months ended June 30, 2014

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	245		$	32		$	485		$	(40	)	$	722
Service revenue	322			7			607			—			936
Total revenue	567			39			1,092			(40		)	1,658
Cost of products	200			12			359			(40		)	531
Cost of services	239			3			405			—			647
Selling, general and administrative expenses	127			(1		)	121			—			247
Research and development expenses	34			—			30			—			64
Total operating expenses	600			14			915			(40		)	1,489
Income (loss) from operations	(33		)	25			177			—			169
Interest expense	(44		)	—			(20		)	18			(46		)
Other (expense) income, net	12			(1		)	4			(18		)	(3		)
Income (loss) from continuing operations before income taxes	(65		)	24			161			—			120
Income tax expense (benefit)	(23		)	13			39			—			29
Income (loss) from continuing operations before earnings in subsidiaries	(42		)	11			122			—			91
Equity in earnings of consolidated subsidiaries	132			121			—			(253		)	—
Income (loss) from continuing operations	90			132			122			(253		)	91
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	90		$	132		$	122		$	(253	)	$	91
Net income (loss) attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to NCR	$	90		$	132		$	121		$	(253	)	$	90
Total comprehensive income (loss)	109			143			143			(284		)	111
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			2			—			2
Comprehensive income (loss) attributable to NCR common stockholders	$	109		$	143		$	141		$	(284	)	$	109



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

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	269		$	24		$	516		$	(66	)	$	743
Service revenue	302			7			483			—			792
Total revenue	571			31			999			(66		)	1,535
Cost of products	205			4			407			(66		)	550
Cost of services	210			2			347			—			559
Selling, general and administrative expenses	124			1			107			—			232
Research and development expenses	15			1			39			—			55
Total operating expenses	554			8			900			(66		)	1,396
Income (loss) from operations	17			23			99			—			139
Interest expense	(25		)	(1		)	(11		)	11			(26		)
Other (expense) income, net	(9		)	2			15			(11		)	(3		)
Income (loss) from continuing operations before income taxes	(17		)	24			103			—			110
Income tax expense (benefit)	(10		)	13			20			—			23
Income (loss) from continuing operations before earnings in subsidiaries	(7		)	11			83			—			87
Equity in earnings of consolidated subsidiaries	93			54			—			(147		)	—
Income (loss) from continuing operations	86			65			83			(147		)	87
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	86		$	65		$	83		$	(147	)	$	87
Net income (loss) attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to NCR	$	86		$	65		$	82		$	(147	)	$	86
Total comprehensive income (loss)	57			89			56			(146		)	56
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			(1		)	—			(1		)
Comprehensive income (loss) attributable to NCR common stockholders	$	57		$	89		$	57		$	(146	)	$	57



Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the six months ended June 30, 2014

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	485		$	49		$	916		$	(94	)	$	1,356
Service revenue	629			14			1,177			—			1,820
Total revenue	1,114			63			2,093			(94		)	3,176
Cost of products	383			17			701			(94		)	1,007
Cost of services	471			6			796			—			1,273
Selling, general and administrative expenses	258			—			234			—			492
Research and development expenses	51			—			76			—			127
Total operating expenses	1,163			23			1,807			(94		)	2,899
Income (loss) from operations	(49		)	40			286			—			277
Interest expense	(87		)	—			(37		)	35			(89		)
Other (expense) income, net	24			(3		)	4			(35		)	(10		)
Income (loss) from continuing operations before income taxes	(112		)	37			253			—			178
Income tax expense (benefit)	(40		)	20			53			—			33
Income (loss) from continuing operations before earnings in subsidiaries	(72		)	17			200			—			145
Equity in earnings of consolidated subsidiaries	215			184			—			(399		)	—
Income (loss) from continuing operations	143			201			200			(399		)	145
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	143		$	201		$	200		$	(399	)	$	145
Net income (loss) attributable to noncontrolling interests	—			—			2			—			2
Net income (loss) attributable to NCR	$	143		$	201		$	198		$	(399	)	$	143
Total comprehensive income (loss)	167			215			221			(434		)	169
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			2			—			2
Comprehensive income (loss) attributable to NCR common stockholders	$	167		$	215		$	219		$	(434	)	$	167



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

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	551		$	37		$	939		$	(117	)	$	1,410
Service revenue	600			12			923			—			1,535
Total revenue	1,151			49			1,862			(117		)	2,945
Cost of products	417			6			747			(117		)	1,053
Cost of services	431			5			661			—			1,097
Selling, general and administrative expenses	260			2			199			—			461
Research and development expenses	33			—			77			—			110
Total operating expenses	1,141			13			1,684			(117		)	2,721
Income (loss) from operations	10			36			178			—			224
Interest expense	(47		)	(1		)	(12		)	13			(47		)
Other (expense) income, net	(10		)	—			22			(13		)	(1		)
Income (loss) from continuing operations before income taxes	(47		)	35			188			—			176
Income tax expense (benefit)	(22		)	6			41			—			25
Income (loss) from continuing operations before earnings in subsidiaries	(25		)	29			147			—			151
Equity in earnings of consolidated subsidiaries	173			121			—			(294		)	—
Income (loss) from continuing operations	148			150			147			(294		)	151
Income (loss) from discontinued operations, net of tax	(1		)	—			—			—			(1		)
Net income (loss)	$	147		$	150		$	147		$	(294	)	$	150
Net income (loss) attributable to noncontrolling interests	—			—			3			—			3
Net income (loss) attributable to NCR	$	147		$	150		$	144		$	(294	)	$	147
Total comprehensive income (loss)	122			162			80			(242		)	122
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			—			—			—
Comprehensive income (loss) attributable to NCR common stockholders	$	122		$	162		$	80		$	(242	)	$	122



Condensed Consolidating Balance Sheet
June 30, 2014

(in millions)	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	29		15		439		—			483
Accounts receivable, net	436		22		1,006		—			1,464
Inventories	292		6		518		—			816
Due from affiliates	1,373		983		295		(2,651		)	—
Other current assets	416		26		245		(60		)	627
Total current assets	2,546		1,052		2,503		(2,711		)	3,390
Property, plant and equipment, net	160		1		241		—			402
Goodwill	872		—		1,919		—			2,791
Intangibles, net	215		—		779		—			994
Prepaid pension cost	—		—		520		—			520
Deferred income taxes	315		68		49		(185		)	247
Investments in subsidiaries	3,477		2,076		—		(5,553		)	—
Due from affiliates	28		20		44		(92		)	—
Other assets	357		40		109		(1		)	505
Total assets	$	7,970	$	3,257	$	6,164	$	(8,542	)	$	8,849

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	69		—		14		—			83
Accounts payable	237		1		440		—			678
Payroll and benefits liabilities	66		—		122		—			188
Deferred service revenue and customer deposits	160		23		380		—			563
Due to affiliates	1,087		127		1,437		(2,651		)	—
Other current liabilities	194		6		324		(60		)	464
Total current liabilities	1,813		157		2,717		(2,711		)	1,976
Long-term debt	3,820		—		20		—			3,840
Pension and indemnity plan liabilities	240		—		289		—			529
Postretirement and postemployment benefits liabilities	24		—		145		—			169
Income tax accruals	4		9		166		(1		)	178
Environmental liabilities	101		—		—		—			101
Due to affiliates	17		44		31		(92		)	—
Other liabilities	10		—		262		(185		)	87
Total liabilities	6,029		210		3,630		(2,989		)	6,880
Redeemable noncontrolling interest	—		—		15		—			15
Stockholders’ equity
Total NCR stockholders’ equity	1,941		3,047		2,506		(5,553		)	1,941
Noncontrolling interests in subsidiaries	—		—		13		—			13
Total stockholders’ equity	1,941		3,047		2,519		(5,553		)	1,954
Total liabilities and stockholders’ equity	$	7,970	$	3,257	$	6,164	$	(8,542	)	$	8,849



Condensed Consolidating Balance Sheet
December 31, 2013

(in millions)	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	75		11		442		—			528
Restricted cash	1,114		—		—		—			1,114
Accounts receivable, net	424		14		901		—			1,339
Inventories	319		11		460		—			790
Due from affiliates	333		854		298		(1,485		)	—
Other current assets	360		25		209		(26		)	568
Total current assets	2,625		915		2,310		(1,511		)	4,339
Property, plant and equipment, net	146		1		205		—			352
Goodwill	872		—		662		—			1,534
Intangibles, net	234		—		260		—			494
Prepaid pension cost	—		—		478		—			478
Deferred income taxes	321		68		52		—			441
Investments in subsidiaries	2,665		1,927		—		(4,592		)	—
Due from affiliates	28		20		45		(93		)	—
Other assets	334		40		96		—			470
Total assets	$	7,225	$	2,971	$	4,108	$	(6,196	)	$	8,108

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	28		—		6		—			34
Accounts payable	254		1		415		—			670
Payroll and benefits liabilities	78		1		112		—			191
Deferred service revenue and customer deposits	155		12		358		—			525
Due to affiliates	1,007		123		355		(1,485		)	—
Other current liabilities	219		7		261		(26		)	461
Total current liabilities	1,741		144		1,507		(1,511		)	1,881
Long-term debt	3,296		—		24		—			3,320
Pension and indemnity plan liabilities	234		—		298		—			532
Postretirement and postemployment benefits liabilities	25		—		144		—			169
Income tax accruals	4		10		175		—			189
Environmental liabilities	121		—		—		—			121
Due to affiliates	17		44		32		(93		)	—
Other liabilities	18		—		81		—			99
Total liabilities	5,456		198		2,261		(1,604		)	6,311
Redeemable noncontrolling interest	—		—		14		—			14
Stockholders’ equity
Total NCR stockholders’ equity	1,769		2,773		1,819		(4,592		)	1,769
Noncontrolling interests in subsidiaries	—		—		14		—			14
Total stockholders’ equity	1,769		2,773		1,833		(4,592		)	1,783
Total liabilities and stockholders’ equity	$	7,225	$	2,971	$	4,108	$	(6,196	)	$	8,108



Condensed Consolidating Statement of Cash Flows
For the six months ended June 30, 2014

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	17		$	(46	)	$	169		$	(29	)	$	111
Investing activities
Expenditures for property, plant and equipment	(31		)	—			(35		)	—			(66		)
Additions to capitalized software	(43		)	—			(30		)	—			(73		)
Business acquisitions, net of cash acquired	(1,642		)	—			—			—			(1,642		)
Proceeds from (payments of) intercompany notes	40			50			—			(90		)	—
Investments in equity affiliates	(2		)	—			—			2			—
Changes in restricted cash	1,114			—			—			—			1,114
Other investing activities, net	(3		)	—			7			—			4
Net cash provided by (used in) investing activities	(567		)	50			(58		)	(88		)	(663		)
Financing activities
Tax withholding payments on behalf of employees	(24		)	—			—			—			(24		)
Short term borrowings, net	—			—			9			—			9
Proceeds from employee stock plans	7			—			—			—			7
Equity contribution	—			—			2			(2		)	—
Payments on term credit facility	(3		)	—			—			—			(3		)
Borrowings on term credit facility	250			—			—			—			250
Payments on revolving credit facility	(255		)	—			—			—			(255		)
Borrowings on revolving credit facility	570			—			—			—			570
Debt issuance cost	(3		)	—			—			—			(3		)
Borrowings (repayments) of intercompany notes	—			—			(90		)	90			—
Dividend distribution to consolidated subsidiaries	—			—			(29		)	29			—
Other financing activities	—			—			(3		)	—			(3		)
Net cash provided by (used in) financing activities	542			—			(111		)	117			548
Cash flows from discontinued operations
Net cash (used in) provided by operating activities	(38		)	—			—			—			(38		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3		)	—			(3		)
Increase (decrease) in cash and cash equivalents	(46		)	4			(3		)	—			(45		)
Cash and cash equivalents at beginning of period	75			11			442			—			528
Cash and cash equivalents at end of period	$	29		$	15		$	439		$	—		$	483



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

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(70	)	$	11		$	77		$	(29	)	$	(11	)
Investing activities
Expenditures for property, plant and equipment	(10		)	—			(34		)	—			(44		)
Proceeds from sales of property, plant and equipment	2			—			—			—			2
Additions to capitalized software	(32		)	—			(13		)	—			(45		)
Business acquisitions, net of cash acquired	(24		)	—			(672		)	—			(696		)
Proceeds from (payments of) intercompany notes	(312		)	—			—			312			—
Investments in equity affiliates	(275		)	—			—			275			—
Other investing activities, net	5			—			1			—			6
Net cash provided by (used in) investing activities	(646		)	—			(718		)	587			(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
Payments on term credit facility	(35		)	—			—			—			(35		)
Payments on revolving credit facility	(495		)	—			—			—			(495		)
Borrowings on revolving credit facility	725			—			—			—			725
Debt issuance costs	(3		)	—			—			—			(3		)
Dividend distribution to consolidated subsidiaries	—			—			(29		)	29			—
Borrowings (repayments) of intercompany notes	—			—			312			(312		)	—
Net cash provided by (used in) financing activities	210			—			564			(558		)	216
Cash flows from discontinued operations
Net cash (used in) provided by operating activities	(24		)	—			—			—			(24		)
Effect of exchange rate changes on cash and cash equivalents	—			(2		)	(11		)	—			(13		)
Increase (decrease) in cash and cash equivalents	(530		)	9			(88		)	—			(609		)
Cash and cash equivalents at beginning of period	571			6			492			—			1,069
Cash and cash equivalents at end of period	$	41		$	15		$	404		$	—		$	460