

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

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	269		$	27		$	614		$	(189	)	$	721
Service revenue	304			7			615			—			926
Total revenue	573			34			1,229			(189		)	1,647
Cost of products	211			15			510			(189		)	547
Cost of services	224			3			469			—			696
Selling, general and administrative expenses	84			1			147			—			232
Research and development expenses	29			—			30			—			59
Restructuring-related charges	26			1			45			—			72
Total operating expenses	574			20			1,201			(189		)	1,606
Income (loss) from operations	(1		)	14			28			—			41
Interest expense	(46		)	(1		)	(18		)	19			(46		)
Other (expense) income, net	5			—			—			(19		)	(14		)
Income (loss) from continuing operations before income taxes	(42		)	13			10			—			(19		)
Income tax expense (benefit)	(116		)	16			81			—			(19		)
Income (loss) from continuing operations before earnings in subsidiaries	74			(3		)	(71		)	—			—
Equity in earnings of consolidated subsidiaries	(74		)	(13		)	—			87			—
Income (loss) from continuing operations	—			(16		)	(71		)	87			—
Income (loss) from discontinued operations, net of tax	15			—			—			—			15
Net income (loss)	$	15		$	(16	)	$	(71	)	$	87		$	15
Net income (loss) attributable to noncontrolling interests	—			—			—			—			—
Net income (loss) attributable to NCR	$	15		$	(16	)	$	(71	)	$	87		$	15
Total comprehensive income (loss)	(31		)	(65		)	(118		)	181			(33		)
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			(2		)	—			(2		)
Comprehensive income (loss) attributable to NCR common stockholders	$	(31	)	$	(65	)	$	(116	)	$	181		$	(31	)



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

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Product revenue	$	271		$	21		$	482	$	(73	)	$	701
Service revenue	317			6			484		—			807
Total revenue	588			27			966		(73		)	1,508
Cost of products	204			5			388		(73		)	524
Cost of services	217			3			349		—			569
Selling, general and administrative expenses	115			1			101		—			217
Research and development expenses	28			—			25		—			53
Total operating expenses	564			9			863		(73		)	1,363
Income (loss) from operations	24			18			103		—			145
Interest expense	(24		)	—			—		1			(23		)
Other (expense) income, net	(9		)	(3		)	10		(1		)	(3		)
Income (loss) from continuing operations before income taxes	(9		)	15			113		—			119
Income tax expense (benefit)	(3		)	6			16		—			19
Income (loss) from continuing operations before earnings in subsidiaries	(6		)	9			97		—			100
Equity in earnings of consolidated subsidiaries	104			93			—		(197		)	—
Income (loss) from continuing operations	98			102			97		(197		)	100
Income (loss) from discontinued operations, net of tax	—			—			—		—			—
Net income (loss)	$	98		$	102		$	97	$	(197	)	$	100
Net income (loss) attributable to noncontrolling interests	—			—			2		—			2
Net income (loss) attributable to NCR	$	98		$	102		$	95	$	(197	)	$	98
Total comprehensive income (loss)	87			22			93		(114		)	88
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1		—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	87		$	22		$	92	$	(114	)	$	87



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

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	754		$	76		$	1,530		$	(283	)	$	2,077
Service revenue	933			21			1,792			—			2,746
Total revenue	1,687			97			3,322			(283		)	4,823
Cost of products	594			32			1,211			(283		)	1,554
Cost of services	695			9			1,265			—			1,969
Selling, general and administrative expenses	342			1			381			—			724
Research and development expenses	80			—			106			—			186
Restructuring-related charges	26			1			45			—			72
Total operating expenses	1,737			43			3,008			(283		)	4,505
Income (loss) from operations	(50		)	54			314			—			318
Interest expense	(133		)	(1		)	(55		)	54			(135		)
Other (expense) income, net	29			(3		)	4			(54		)	(24		)
Income (loss) from continuing operations before income taxes	(154		)	50			263			—			159
Income tax expense (benefit)	(156		)	36			134			—			14
Income (loss) from continuing operations before earnings in subsidiaries	2			14			129			—			145
Equity in earnings of consolidated subsidiaries	141			171			—			(312		)	—
Income (loss) from continuing operations	143			185			129			(312		)	145
Income (loss) from discontinued operations, net of tax	15			—			—			—			15
Net income (loss)	$	158		$	185		$	129		$	(312	)	$	160
Net income (loss) attributable to noncontrolling interests	—			—			2			—			2
Net income (loss) attributable to NCR	$	158		$	185		$	127		$	(312	)	$	158
Total comprehensive income (loss)	136			150			103			(253		)	136
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			—			—			—
Comprehensive income (loss) attributable to NCR common stockholders	$	136		$	150		$	103		$	(253	)	$	136



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

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	822		$	58		$	1,421		$	(190	)	$	2,111
Service revenue	917			18			1,407			—			2,342
Total revenue	1,739			76			2,828			(190		)	4,453
Cost of products	621			11			1,135			(190		)	1,577
Cost of services	648			8			1,010			—			1,666
Selling, general and administrative expenses	375			3			300			—			678
Research and development expenses	61			—			102			—			163
Total operating expenses	1,705			22			2,547			(190		)	4,084
Income (loss) from operations	34			54			281			—			369
Interest expense	(71		)	(1		)	(2		)	4			(70		)
Other (expense) income, net	(19		)	(3		)	22			(4		)	(4		)
Income (loss) from continuing operations before income taxes	(56		)	50			301			—			295
Income tax expense (benefit)	(25		)	12			57			—			44
Income (loss) from continuing operations before earnings in subsidiaries	(31		)	38			244			—			251
Equity in earnings of consolidated subsidiaries	277			214			—			(491		)	—
Income (loss) from continuing operations	246			252			244			(491		)	251
Income (loss) from discontinued operations, net of tax	(1		)	—			—			—			(1		)
Net income (loss)	$	245		$	252		$	244		$	(491	)	$	250
Net income (loss) attributable to noncontrolling interests	—			—			5			—			5
Net income (loss) attributable to NCR	$	245		$	252		$	239		$	(491	)	$	245
Total comprehensive income (loss)	209			212			175			(386		)	210
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	209		$	212		$	174		$	(386	)	$	209



Condensed Consolidating Balance Sheet
September 30, 2014

(in millions)	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	20		8		396		—			424
Accounts receivable, net	427		26		1,001		—			1,454
Inventories	270		5		502		—			777
Due from affiliates	1,379		999		306		(2,684		)	—
Other current assets	361		27		247		(78		)	557
Total current assets	2,457		1,065		2,452		(2,762		)	3,212
Property, plant and equipment, net	160		1		237		—			398
Goodwill	872		—		1,901		—			2,773
Intangibles, net	206		—		756		—			962
Prepaid pension cost	—		—		506		—			506
Deferred income taxes	303		72		46		(176		)	245
Investments in subsidiaries	3,460		2,059		—		(5,519		)	—
Due from affiliates	27		20		44		(91		)	—
Other assets	353		46		115		—			514
Total assets	$	7,838	$	3,263	$	6,057	$	(8,548	)	$	8,610

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	77		—		8		—			85
Accounts payable	242		1		462		—			705
Payroll and benefits liabilities	84		—		119		—			203
Deferred service revenue and customer deposits	162		20		347		—			529
Due to affiliates	1,173		126		1,385		(2,684		)	—
Other current liabilities	197		6		361		(78		)	486
Total current liabilities	1,935		153		2,682		(2,762		)	2,008
Long-term debt	3,641		—		19		—			3,660
Pension and indemnity plan liabilities	243		—		270		—			513
Postretirement and postemployment benefits liabilities	24		—		148		—			172
Income tax accruals	3		10		176		—			189
Environmental liabilities	48		—		—		—			48
Due to affiliates	17		44		30		(91		)	—
Other liabilities	9		—		243		(176		)	76
Total liabilities	5,920		207		3,568		(3,029		)	6,666
Redeemable noncontrolling interest	—		—		12		—			12
Stockholders’ equity
Total NCR stockholders’ equity	1,918		3,056		2,463		(5,519		)	1,918
Noncontrolling interests in subsidiaries	—		—		14		—			14
Total stockholders’ equity	1,918		3,056		2,477		(5,519		)	1,932
Total liabilities and stockholders’ equity	$	7,838	$	3,263	$	6,057	$	(8,548	)	$	8,610



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 nine months ended September 30, 2014

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	146		$	(90	)	$	208		$	(29	)	$	235
Investing activities
Expenditures for property, plant and equipment	(40		)	—			(48		)	—			(88		)
Additions to capitalized software	(62		)	—			(47		)	—			(109		)
Business acquisitions, net of cash acquired	(1,647		)	—			—			—			(1,647		)
Proceeds from (payments of) intercompany notes	40			87			—			(127		)	—
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	(600		)	87			(88		)	(125		)	(726		)
Financing activities
Tax withholding payments on behalf of employees	(28		)	—			—			—			(28		)
Short term borrowings, net	—			—			2			—			2
Proceeds from employee stock plans	10			—			—			—			10
Equity contribution	—			—			2			(2		)	—
Payments on term credit facility	(20		)	—			—			—			(20		)
Borrowings on term credit facility	250			—			—			—			250
Payments on revolving credit facility	(528		)	—			—			—			(528		)
Borrowings on revolving credit facility	690			—			—			—			690
Debt issuance cost	(3		)	—			—			—			(3		)
Borrowings (repayments) of intercompany notes	—			—			(127		)	127			—
Dividend distribution to consolidated subsidiaries	—			—			(29		)	29			—
Other financing activities	—			—			(3		)	—			(3		)
Net cash provided by (used in) financing activities	371			—			(155		)	154			370
Cash flows from discontinued operations
Net cash (used in) provided by operating activities	28			—			—			—			28
Effect of exchange rate changes on cash and cash equivalents	—			—			(11		)	—			(11		)
Increase (decrease) in cash and cash equivalents	(55		)	(3		)	(46		)	—			(104		)
Cash and cash equivalents at beginning of period	75			11			442			—			528
Cash and cash equivalents at end of period	$	20		$	8		$	396		$	—		$	424



Condensed Consolidating Statement of Cash Flows
For the nine months ended September 30, 2013

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(78	)	$	18		$	105		$	(29	)	$	16
Investing activities
Expenditures for property, plant and equipment	(26		)	—			(54		)	—			(80		)
Proceeds from sales of property, plant and equipment	2			—			8			—			10
Additions to capitalized software	(53		)	—			(22		)	—			(75		)
Business acquisitions, net of cash acquired	(24		)	—			(672		)	—			(696		)
Proceeds from (payments of) intercompany notes	(302		)	—			—			302			—
Investments in equity affiliates	(277		)	—			—			277			—
Other investing activities, net	5			—			—			—			5
Net cash provided by (used in) investing activities	(675		)	—			(740		)	579			(836		)
Financing activities
Tax withholding payments on behalf of employees	(28		)	—			—			—			(28		)
Proceeds from employee stock plans	52			—			—			—			52
Equity contribution	—			—			277			(277		)	—
Short term borrowings, net	—			—			(1		)	—			(1		)
Payments on term credit facility	(35		)	—			—			—			(35		)
Borrowings on term credit facility	300			—			—			—			300
Payments on revolving credit facility	(845		)	—			—			—			(845		)
Borrowings on revolving credit facility	845			—			—			—			845
Debt issuance costs	(12		)	—			—			—			(12		)
Dividend distribution to consolidated subsidiaries	—			—			(29		)	29			—
Borrowings (repayments) of intercompany notes	—			—			302			(302		)	—
Net cash provided by (used in) financing activities	277			—			549			(550		)	276
Cash flows from discontinued operations
Net cash (used in) provided by operating activities	(51		)	—			—			—			(51		)
Effect of exchange rate changes on cash and cash equivalents	—			(2		)	(12		)	—			(14		)
Increase (decrease) in cash and cash equivalents	(527		)	16			(98		)	—			(609		)
Cash and cash equivalents at beginning of period	571			6			492			—			1,069
Cash and cash equivalents at end of period	$	44		$	22		$	394		$	—		$	460