

Consolidating Statements of Operations and Comprehensive Income (Loss)
For the year ended December 31, 2015

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	1,121		$	105		$	2,380		$	(895	)	$	2,711
Service revenue	1,337			33			2,292			—			3,662
Total revenue	2,458			138			4,672			(895		)	6,373
Cost of products	855			43			2,069			(895		)	2,072
Cost of services	986			13			1,833			—			2,832
Selling, general and administrative expenses	474			4			564			—			1,042
Research and development expenses	90			—			140			—			230
Restructuring-related charges	28			—			34			—			62
Total operating expenses	2,433			60			4,640			(895		)	6,238
Income (loss) from operations	25			78			32			—			135
Interest expense	(168		)	—			(78		)	73			(173		)
Other (expense) income, net	21			4			(9		)	(73		)	(57		)
Income (loss) from continuing operations before income taxes	(122		)	82			(55		)	—			(95		)
Income tax expense (benefit)	(38		)	52			41			—			55
Income (loss) from continuing operations before earnings in subsidiaries	(84		)	30			(96		)	—			(150		)
Equity in earnings of consolidated subsidiaries	(69		)	(161		)	—			230			—
Income (loss) from continuing operations	(153		)	(131		)	(96		)	230			(150		)
Income (loss) from discontinued operations, net of tax	(25		)	—			1			—			(24		)
Net income (loss)	$	(178	)	$	(131	)	$	(95	)	$	230		$	(174	)
Net income (loss) attributable to noncontrolling interests	—			—			4			—			4
Net income (loss) attributable to NCR	$	(178	)	$	(131	)	$	(99	)	$	230		$	(178	)
Total comprehensive income (loss)	(192		)	(154		)	(110		)	265			(191		)
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	(192	)	$	(154	)	$	(111	)	$	265		$	(192	)



Consolidating Statements of Operations and Comprehensive Income (Loss)
For the year ended December 31, 2014

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	1,039		$	111		$	2,137		$	(395	)	$	2,892
Service revenue	1,254			28			2,417			—			3,699
Total revenue	2,293			139			4,554			(395		)	6,591
Cost of products	828			41			1,679			(395		)	2,153
Cost of services	996			13			1,697			—			2,706
Selling, general and administrative expenses	483			2			527			—			1,012
Research and development expenses	148			—			115			—			263
Restructuring-related charges	32			1			71			—			104
Total operating expenses	2,487			57			4,089			(395		)	6,238
Income (loss) from operations	(194		)	82			465			—			353
Interest expense	(177		)	(1		)	(75		)	72			(181		)
Other (expense) income, net	38			(4		)	3			(72		)	(35		)
Income (loss) from continuing operations before income taxes	(333		)	77			393			—			137
Income tax expense (benefit)	(173		)	68			57			—			(48		)
Income (loss) from continuing operations before earnings in subsidiaries	(160		)	9			336			—			185
Equity in earnings of consolidated subsidiaries	341			392			—			(733		)	—
Income (loss) from continuing operations	181			401			336			(733		)	185
Income (loss) from discontinued operations, net of tax	10			—			—			—			10
Net income (loss)	$	191		$	401		$	336		$	(733	)	$	195
Net income (loss) attributable to noncontrolling interests	—			—			4			—			4
Net income (loss) attributable to NCR	$	191		$	401		$	332		$	(733	)	$	191
Total comprehensive income (loss)	93			319			229			(547		)	94
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	93		$	319		$	228		$	(547	)	$	93



Consolidating Statements of Operations and Comprehensive Income (Loss)
For the year ended December 31, 2013

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	1,107		$	85		$	1,977		$	(257	)	$	2,912
Service revenue	1,232			24			1,955			—			3,211
Total revenue	2,339			109			3,932			(257		)	6,123
Cost of products	844			17			1,548			(257		)	2,152
Cost of services	880			9			1,342			—			2,231
Selling, general and administrative expenses	467			5			399			—			871
Research and development expenses	94			—			109			—			203
Total operating expenses	2,285			31			3,398			(257		)	5,457
Income (loss) from operations	54			78			534			—			666
Interest expense	(104		)	2			(6		)	5			(103		)
Other (expense) income, net	(12		)	(8		)	16			(5		)	(9		)
Income (loss) from continuing operations before income taxes	(62		)	72			544			—			554
Income tax expense (benefit)	(23		)	25			96			—			98
Income (loss) from continuing operations before earnings in subsidiaries	(39		)	47			448			—			456
Equity in earnings of consolidated subsidiaries	491			409			—			(900		)	—
Income (loss) from continuing operations	452			456			448			(900		)	456
Income (loss) from discontinued operations, net of tax	(9		)	—			—			—			(9		)
Net income (loss)	$	443		$	456		$	448		$	(900	)	$	447
Net income (loss) attributable to noncontrolling interests	—			—			4			—			4
Net income (loss) attributable to NCR	$	443		$	456		$	444		$	(900	)	$	443
Total comprehensive income (loss)	442			331			437			(771		)	439
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Comprehensive income (loss) attributable to NCR common stockholders	$	442		$	331		$	440		$	(771	)	$	442



Consolidating Balance Sheet
December 31, 2015

(in millions)	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	12	$	20	$	296	$	—		$	328
Accounts receivable, net	44		33		1,174		—			1,251
Inventories	233		6		404		—			643
Due from affiliates	654		1,325		300		(2,279		)	—
Other current assets	126		31		209		(39		)	327
Total current assets	1,069		1,415		2,383		(2,318		)	2,549
Property, plant and equipment, net	137		1		184		—			322
Goodwill	860		—		1,873		—			2,733
Intangibles, net	161		—		637		—			798
Prepaid pension cost	—		—		130		—			130
Deferred income taxes	486		152		84		(140		)	582
Investments in subsidiaries	3,349		1,449		—		(4,798		)	—
Due from affiliates	1,072		17		38		(1,127		)	—
Other assets	362		55		104		—			521
Total assets	$	7,496	$	3,089	$	5,433	$	(8,383	)	$	7,635

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	4	$	—	$	9	$	—		$	13
Accounts payable	280		—		377		—			657
Payroll and benefits liabilities	93		1		95		—			189
Deferred service revenue and customer deposits	154		24		298		—			476
Due to affiliates	1,499		137		643		(2,279		)	—
Other current liabilities	205		3		277		(39		)	446
Total current liabilities	2,235		165		1,699		(2,318		)	1,781
Long-term debt	3,229		—		10		—			3,239
Pension and indemnity plan liabilities	433		—		263		—			696
Postretirement and postemployment benefits liabilities	27		3		103		—			133
Income tax accruals	4		13		150		—			167
Due to affiliates	18		37		1,072		(1,127		)	—
Other liabilities	32		—		187		(140		)	79
Total liabilities	5,978		218		3,484		(3,585		)	6,095
Redeemable noncontrolling interest	—		—		16		—			16
Series A convertible preferred stock	798		—		—		—			798
Stockholders’ equity
Total NCR stockholders’ equity	720		2,871		1,927		(4,798		)	720
Noncontrolling interests in subsidiaries	—		—		6		—			6
Total stockholders’ equity	720		2,871		1,933		(4,798		)	726
Total liabilities and stockholders’ equity	$	7,496	$	3,089	$	5,433	$	(8,383	)	$	7,635



Consolidating Balance Sheet
December 31, 2014

(in millions)	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	40	$	9	$	462	$	—		$	511
Accounts receivable, net	69		19		1,316		—			1,404
Inventories	242		6		421		—			669
Due from affiliates	626		1,228		476		(2,330		)	—
Other current assets	294		28		280		(98		)	504
Total current assets	1,271		1,290		2,955		(2,428		)	3,088
Property, plant and equipment, net	161		1		234		—			396
Goodwill	878		—		1,882		—			2,760
Intangibles, net	196		—		730		—			926
Prepaid pension cost	—		—		551		—			551
Deferred income taxes	363		128		43		(185		)	349
Investments in subsidiaries	3,519		1,771		—		(5,290		)	—
Due from affiliates	1,127		20		41		(1,188		)	—
Other assets	334		49		113		—			496
Total assets	$	7,849	$	3,259	$	6,549	$	(9,091	)	$	8,566

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	85	$	—	$	102	$	—		$	187
Accounts payable	248		—		464		—			712
Payroll and benefits liabilities	85		—		111		—			196
Deferred service revenue and customer deposits	149		21		324		—			494
Due to affiliates	1,318		124		888		(2,330		)	—
Other current liabilities	192		10		377		(98		)	481
Total current liabilities	2,077		155		2,266		(2,428		)	2,070
Long-term debt	3,413		—		18		—			3,431
Pension and indemnity plan liabilities	391		—		314		—			705
Postretirement and postemployment benefits liabilities	25		—		145		—			170
Income tax accruals	3		10		168		—			181
Due to affiliates	17		41		1,130		(1,188		)	—
Other liabilities	52		—		244		(185		)	111
Total liabilities	5,978		206		4,285		(3,801		)	6,668
Redeemable noncontrolling interest	—		—		15		—			15
Stockholders’ equity
Total NCR stockholders’ equity	1,871		3,053		2,237		(5,290		)	1,871
Noncontrolling interests in subsidiaries	—		—		12		—			12
Total stockholders’ equity	1,871		3,053		2,249		(5,290		)	1,883
Total liabilities and stockholders’ equity	$	7,849	$	3,259	$	6,549	$	(9,091	)	$	8,566



Consolidating Statement of Cash Flows
For the year ended December 31, 2015

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	348		$	(335	)	$	748		$	(80	)	$	681
Investing activities
Expenditures for property, plant and equipment	(22		)	—			(57		)	—			(79		)
Proceeds from the sale of property, plant and equipment	—			—			19			—			19
Additions to capitalized software	(91		)	—			(59		)	—			(150		)
Proceeds from (payments of) intercompany notes	272			347			—			(619		)	—
Investments in equity affiliates	(1		)							1			—
Other investing activities, net	(6		)	—			7			—			1
Net cash provided by (used in) investing activities	152			347			(90		)	(618		)	(209		)
Financing activities
Short term borrowings, net	3			—			5			—			8
Payments on term credit facilities	(376		)	—			(7		)	—			(383		)
Payments on revolving credit facilities	(729		)	—			(965		)	—			(1,694		)
Borrowings on revolving credit facilities	829			—			869			—			1,698
Tax withholding payments on behalf of employees	(16		)	—			—			—			(16		)
Proceeds from employee stock plans	15			—			—			—			15
Dividend distribution to consolidated subsidiaries	—			—			(80		)	80			—
Series A convertible preferred stock issuance	794			—			—			—			794
Tender offer share repurchase	(1,005		)	—			—			—			(1,005		)
Equity contribution	—			—			1			(1		)	—
Borrowings (repayments) of intercompany notes	—			—			(619		)	619			—
Net cash provided by (used in) financing activities	(485		)	—			(796		)	698			(583		)
Cash flows from discontinued operations
Net cash used in discontinued operations operating activities	(43		)	—			—			—			(43		)
Effect of exchange rate changes on cash and cash equivalents	—			(1		)	(28		)	—			(29		)
(Decrease) increase in cash and cash equivalents	(28		)	11			(166		)	—			(183		)
Cash and cash equivalents at beginning of period	40			9			462			—			511
Cash and cash equivalents at end of period	$	12		$	20		$	296		$	—		$	328



Consolidating Statement of Cash Flows
For the year ended December 31, 2014

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	401		$	(108	)	$	331		$	(100	)	$	524
Investing activities
Expenditures for property, plant and equipment	(51		)	—			(67		)	—			(118		)
Proceeds from sales of property, plant and equipment	—			—			1			—			1
Additions to capitalized software	(82		)	—			(58		)	—			(140		)
Business acquisitions, net	(1,647		)	—			—			—			(1,647		)
Changes in restricted cash	1,114			—			—			—			1,114
Proceeds from (payments of) intercompany notes	42			106			—			(148		)	—
Investments in equity affiliates	(2		)	—			—			2			—
Other investing activities, net	(5		)	—			7			—			2
Net cash provided by (used in) investing activities	(631		)	106			(117		)	(146		)	(788		)
Financing activities
Payments on term credit facilities	(34		)	—			(3		)	—			(37		)
Borrowings on term credit facilities	250			—			—			—			250
Payments on revolving credit facilities	(946		)	—			(104		)	—			(1,050		)
Borrowings on revolving credit facilities	946			—			200			—			1,146
Debt issuance costs	(4		)	—			(1		)	—			(5		)
Tax withholding payments on behalf of employees	(28		)	—			—			—			(28		)
Proceeds from employee stock plans	13			—			—			—			13
Other financing activities	(1		)	—			(4		)	—			(5		)
Dividend distribution to consolidated subsidiaries	—			—			(100		)	100			—
Equity contribution	—			—			2			(2		)	—
Borrowings (repayments) of intercompany notes	—			—			(148		)	148			—
Net cash provided by (used in) financing activities	196			—			(158		)	246			284
Cash flows from discontinued operations
Net cash used in discontinued operations operating activities	(1		)	—			—			—			(1		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(36		)	—			(36		)
Increase (decrease) in cash and cash equivalents	(35		)	(2		)	20			—			(17		)
Cash and cash equivalents at beginning of period	75			11			442			—			528
Cash and cash equivalents at end of period	$	40		$	9		$	462		$	—		$	511



Consolidating Statement of Cash Flows
For the year ended December 31, 2013

(in millions)	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(7	)	$	15		$	312		$	(39	)	$	281
Investing activities
Expenditures for property, plant and equipment	(35		)	(6		)	(75		)	—			(116		)
Proceeds from sales of property, plant and equipment	2			—			8			—			10
Additions to capitalized software	(81		)	—			(29		)	—			(110		)
Business acquisitions, net	(207		)	—			(756		)	183			(780		)
Dispositions	—			—			183			(183		)	—
Changes in restricted cash	(1,114		)	—			—			—			(1,114		)
Proceeds from (payments of) intercompany notes	(54		)	—			—			54			—
Investments in equity affiliates	(308		)	(33		)	—			341			—
Other investing activities, net	5			—			—			—			5
Net cash provided by (used in) investing activities	(1,792		)	(39		)	(669		)	395			(2,105		)
Financing activities
Short term borrowings, net	—			—			(1		)	—			(1		)
Payments on revolving credit facilities	(35		)	—			—			—			(35		)
Borrowings on term credit facilities	300			—			29			—			329
Payments on revolving credit facilities	(1,009		)	—			—			—			(1,009		)
Borrowings on revolving credit facilities	1,009			—			—			—			1,009
Proceeds from bond offering	1,100			—			—			—			1,100
Debt issuance costs	(36		)	—			—			—			(36		)
Tax withholding payments on behalf of employees	(30		)	—			—			—			(30		)
Proceeds from employee stock plans	57			—			—			—			57
Other financing activities	—			—			(3		)	—			(3		)
Dividend distribution to consolidated subsidiaries	—			—			(39		)	39			—
Equity contribution	—			30			311			(341		)	—
Borrowings (repayments) of intercompany notes	—			—			54			(54		)	—
Purchase of non-controlling interest	—			—			(24		)	—			(24		)
Net cash provided by (used in) financing activities	1,356			30			327			(356		)	1,357
Cash flows from discontinued operations
Net cash used in discontinued operations operating activities	(52		)	—			—			—			(52		)
Effect of exchange rate changes on cash and cash equivalents	(1		)	(1		)	(20		)	—			(22		)
Increase (decrease) in cash and cash equivalents	(496		)	5			(50		)	—			(541		)
Cash and cash equivalents at beginning of period	571			6			492			—			1,069
Cash and cash equivalents at end of period	$	75		$	11		$	442		$	—		$	528