

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	1,615			36			2,155			—			3,806
Total revenue	2,908			147			3,923			(435		)	6,543
Cost of products	1,024			50			1,463			(435		)	2,102
Cost of services	1,170			12			1,477			—			2,659
Selling, general and administrative expenses	484			4			438			—			926
Research and development expenses	139			—			103			—			242
Restructuring-related charges	11			—			4			—			15
Total operating expenses	2,828			66			3,485			(435		)	5,944
Income (loss) from operations	80			81			438			—			599
Interest expense	(165		)	—			(74		)	69			(170		)
Other (expense) income, net	44			(23		)	(2		)	(69		)	(50		)
Income (loss) from continuing operations before income taxes	(41		)	58			362			—			379
Income tax expense (benefit)	(18		)	21			89			—			92
Income (loss) from continuing operations before earnings in subsidiaries	(23		)	37			273			—			287
Equity in earnings of consolidated subsidiaries	306			304			—			(610		)	—
Income (loss) from continuing operations	283			341			273			(610		)	287
Income (loss) from discontinued operations, net of tax	(13		)	—			—			—			(13		)
Net income (loss)	$	270		$	341		$	273		$	(610	)	$	274
Net income (loss) attributable to noncontrolling interests	—			—			4			—			4
Net income (loss) attributable to NCR	$	270		$	341		$	269		$	(610	)	$	270
Total comprehensive income (loss)	215			277			210			(488		)	214
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			(1		)	—			(1		)
Comprehensive income (loss) attributable to NCR common stockholders	$	215		$	277		$	211		$	(488	)	$	215



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	$	1,189		$	105		$	2,339		$	(922	)	$	2,711
Service revenue	1,528			33			2,101			—			3,662
Total revenue	2,717			138			4,440			(922		)	6,373
Cost of products	904			43			2,047			(922		)	2,072
Cost of services	1,103			13			1,716			—			2,832
Selling, general and administrative expenses	501			4			537			—			1,042
Research and development expenses	102			—			128			—			230
Restructuring-related charges	32			—			30			—			62
Total operating expenses	2,642			60			4,458			(922		)	6,238
Income (loss) from operations	75			78			(18		)	—			135
Interest expense	(168		)	—			(78		)	73			(173		)
Other (expense) income, net	22			4			(10		)	(73		)	(57		)
Income (loss) from continuing operations before income taxes	(71		)	82			(106		)	—			(95		)
Income tax expense (benefit)	(33		)	52			36			—			55
Income (loss) from continuing operations before earnings in subsidiaries	(38		)	30			(142		)	—			(150		)
Equity in earnings of consolidated subsidiaries	(115		)	(161		)	—			276			—
Income (loss) from continuing operations	(153		)	(131		)	(142		)	276			(150		)
Income (loss) from discontinued operations, net of tax	(25		)	—			1			—			(24		)
Net income (loss)	$	(178	)	$	(131	)	$	(141	)	$	276		$	(174	)
Net income (loss) attributable to noncontrolling interests	—			—			4			—			4
Net income (loss) attributable to NCR	$	(178	)	$	(131	)	$	(145	)	$	276		$	(178	)
Total comprehensive income (loss)	(192		)	(154		)	(156		)	311			(191		)
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	(192	)	$	(154	)	$	(157	)	$	311		$	(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	$	1,103		$	111		$	2,099		$	(421	)	$	2,892
Service revenue	1,445			28			2,226			—			3,699
Total revenue	2,548			139			4,325			(421		)	6,591
Cost of products	867			41			1,666			(421		)	2,153
Cost of services	1,119			13			1,574			—			2,706
Selling, general and administrative expenses	519			2			491			—			1,012
Research and development expenses	161			—			102			—			263
Restructuring-related charges	32			1			71			—			104
Total operating expenses	2,698			57			3,904			(421		)	6,238
Income (loss) from operations	(150		)	82			421			—			353
Interest expense	(177		)	(1		)	(75		)	72			(181		)
Other (expense) income, net	39			(4		)	2			(72		)	(35		)
Income (loss) from continuing operations before income taxes	(288		)	77			348			—			137
Income tax expense (benefit)	(169		)	68			53			—			(48		)
Income (loss) from continuing operations before earnings in subsidiaries	(119		)	9			295			—			185
Equity in earnings of consolidated subsidiaries	300			373			—			(673		)	—
Income (loss) from continuing operations	181			382			295			(673		)	185
Income (loss) from discontinued operations, net of tax	10			—			—			—			10
Net income (loss)	$	191		$	382		$	295		$	(673	)	$	195
Net income (loss) attributable to noncontrolling interests	—			—			4			—			4
Net income (loss) attributable to NCR	$	191		$	382		$	291		$	(673	)	$	191
Total comprehensive income (loss)	93			300			188			(487		)	94
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	93		$	300		$	187		$	(487	)	$	93



Consolidating Balance Sheet
December 31, 2016

(in millions)	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	65	$	12	$	421	$	—		$	498
Accounts receivable, net	64		25		1,193		—			1,282
Inventories	272		13		414		—			699
Due from affiliates	680		1,509		400		(2,589		)	—
Other current assets	140		37		162		(61		)	278
Total current assets	1,221		1,596		2,590		(2,650		)	2,757
Property, plant and equipment, net	129		—		158		—			287
Goodwill	988		—		1,739		—			2,727
Intangibles, net	176		—		496		—			672
Prepaid pension cost	—		—		94		—			94
Deferred income taxes	499		98		82		(104		)	575
Investments in subsidiaries	3,275		2,822		—		(6,097		)	—
Due from affiliates	1,053		—		35		(1,088		)	—
Other assets	405		56		100		—			561
Total assets	$	7,746	$	4,572	$	5,294	$	(9,939	)	$	7,673

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	46	$	—	$	4	$	—		$	50
Accounts payable	310		2		469		—			781
Payroll and benefits liabilities	129		—		105		—			234
Deferred service revenue and customer deposits	193		5		270		—			468
Due to affiliates	1,736		154		699		(2,589		)	—
Other current liabilities	224		6		263		(61		)	432
Total current liabilities	2,638		167		1,810		(2,650		)	1,965
Long-term debt	2,998		—		3		—			3,001
Pension and indemnity plan liabilities	473		—		266		—			739
Postretirement and postemployment benefits liabilities	24		3		100		—			127
Income tax accruals	17		4		121		—			142
Due to affiliates	—		35		1,053		(1,088		)	—
Other liabilities	54		5		183		(104		)	138
Total liabilities	6,204		214		3,536		(3,842		)	6,112
Redeemable noncontrolling interest	—		—		15		—			15
Series A convertible preferred stock	847		—		—		—			847
Stockholders’ equity
Total NCR stockholders’ equity	695		4,358		1,739		(6,097		)	695
Noncontrolling interests in subsidiaries	—		—		4		—			4
Total stockholders’ equity	695		4,358		1,743		(6,097		)	699
Total liabilities and stockholders’ equity	$	7,746	$	4,572	$	5,294	$	(9,939	)	$	7,673



Consolidating Balance Sheet
December 31, 2015

(in millions)	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	15	$	20	$	293	$	—		$	328
Accounts receivable, net	99		33		1,119		—			1,251
Inventories	235		6		402		—			643
Due from affiliates	573		1,325		288		(2,186		)	—
Other current assets	132		31		203		(39		)	327
Total current assets	1,054		1,415		2,305		(2,225		)	2,549
Property, plant and equipment, net	140		1		181		—			322
Goodwill	980		—		1,753		—			2,733
Intangibles, net	212		—		586		—			798
Prepaid pension cost	—		—		130		—			130
Deferred income taxes	475		152		84		(129		)	582
Investments in subsidiaries	3,172		2,729		—		(5,901		)	—
Due from affiliates	1,072		17		38		(1,127		)	—
Other assets	362		55		104		—			521
Total assets	$	7,467	$	4,369	$	5,181	$	(9,382	)	$	7,635

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	4	$	—	$	9	$	—		$	13
Accounts payable	281		—		376		—			657
Payroll and benefits liabilities	95		1		93		—			189
Deferred service revenue and customer deposits	183		24		269		—			476
Due to affiliates	1,408		137		641		(2,186		)	—
Other current liabilities	216		3		266		(39		)	446
Total current liabilities	2,187		165		1,654		(2,225		)	1,781
Long-term debt	3,229		—		10		—			3,239
Pension and indemnity plan liabilities	436		—		260		—			696
Postretirement and postemployment benefits liabilities	27		3		103		—			133
Income tax accruals	14		13		140		—			167
Due to affiliates	18		37		1,072		(1,127		)	—
Other liabilities	38		—		170		(129		)	79
Total liabilities	5,949		218		3,409		(3,481		)	6,095
Redeemable noncontrolling interest	—		—		16		—			16
Series A Convertible Preferred Stock	798		—		—		—			798
Stockholders’ equity
Total NCR stockholders’ equity	720		4,151		1,750		(5,901		)	720
Noncontrolling interests in subsidiaries	—		—		6		—			6
Total stockholders’ equity	720		4,151		1,756		(5,901		)	726
Total liabilities and stockholders’ equity	$	7,467	$	4,369	$	5,181	$	(9,382	)	$	7,635



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	$	272		$	(160	)	$	785		$	(3	)	$	894
Investing activities
Expenditures for property, plant and equipment	(31		)	—			(42		)	—			(73		)
Proceeds from the sale of property, plant and equipment	—			—			—			—			—
Additions to capitalized software	(95		)	—			(59		)	—			(154		)
Proceeds from (payments of) intercompany notes	409			115			—			(524		)	—
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	287			165			(76		)	(565		)	(189		)
Financing activities
Short term borrowings, net	(4		)	—			(4		)	—			(8		)
Payments on term 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
Debt issuance costs	(9		)	—			—			—			(9		)
Tax withholding payments on behalf of employees	(16		)	—			—			—			(16		)
Proceeds from employee stock plans	15			—			—			—			15
Other financing activities	—			—			(2		)	—			(2		)
Dividend distribution to consolidated subsidiaries	—			—			(53		)	53			—
Repurchases of Company common stock	(250		)	—			—			—			(250		)
Equity contribution	—			—			9			(9		)	—
Borrowings (repayments) of intercompany notes	(17		)	—			(507		)	524			—
Net cash provided by (used in) financing activities	(470		)	—			(565		)	568			(467		)
Cash flows from discontinued operations
Net cash used in discontinued operations operating activities	(39		)	—			—			—			(39		)
Effect of exchange rate changes on cash and cash equivalents	—			(13		)	(16		)	—			(29		)
(Decrease) increase in cash and cash equivalents	50			(8		)	128			—			170
Cash and cash equivalents at beginning of period	15			20			293			—			328
Cash and cash equivalents at end of period	$	65		$	12		$	421		$	—		$	498



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	$	346		$	(335	)	$	747		$	(77	)	$	681
Investing activities
Expenditures for property, plant and equipment	(22		)	—			(57		)	—			(79		)
Proceeds from sales 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	—			—			(77		)	77			—
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		)	—			(793		)	695			(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		)
Increase (decrease) in cash and cash equivalents	(30		)	11			(164		)	—			(183		)
Cash and cash equivalents at beginning of period	45			9			457			—			511
Cash and cash equivalents at end of period	$	15		$	20		$	293		$	—		$	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	$	405		$	(108	)	$	322		$	(95	)	$	524
Investing activities
Expenditures for property, plant and equipment	(54		)	—			(64		)	—			(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	(634		)	106			(114		)	(146		)	(788		)
Financing activities
Payments on revolving 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	—			—			(95		)	95			—
Equity contribution	—			—			2			(2		)	—
Borrowings (repayments) of intercompany notes	—			—			(148		)	148			—
Net cash provided by (used in) financing activities	196			—			(153		)	241			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	(34		)	(2		)	19			—			(17		)
Cash and cash equivalents at beginning of period	79			11			438			—			528
Cash and cash equivalents at end of period	$	45		$	9		$	457		$	—		$	511