Condensed Consolidating Supplemental Guarantor Information (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Supplemental Guarantor Information [Abstract]

Schedule of Condensed Consolidating Supplemental Guarantor Information

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the three months ended June 30, 2019
In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	344		$	3		$	399		$	(82	)	$	664
Service revenue	552			1			493			—			1,046
Total revenue	896			4			892			(82		)	1,710
Cost of products	288			1			332			(82		)	539
Cost of services	339			1			360			—			700
Selling, general and administrative expenses	141			—			111			—			252
Research and development expenses	34			—			28			—			62
Total operating expenses	802			2			831			(82		)	1,553
Income (loss) from operations	94			2			61			—			157
Interest expense	(43		)	—			(4		)	2			(45		)
Other (expense) income, net	(7		)	2			(2		)	(2		)	(9		)
Income (loss) from continuing operations before income taxes	44			4			55			—			103
Income tax expense (benefit)	(48		)	(17		)	80			—			15
Income (loss) from continuing operations before earnings in subsidiaries	92			21			(25		)	—			88
Equity in earnings of consolidated subsidiaries	(4		)	62			—			(58		)	—
Income (loss) from continuing operations	88			83			(25		)	(58		)	88
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	88		$	83		$	(25	)	$	(58	)	$	88
Net income (loss) attributable to noncontrolling interests	—			—			—			—			—
Net income (loss) attributable to NCR	$	88		$	83		$	(25	)	$	(58	)	$	88
Total comprehensive income (loss)	163			68			(34		)	(120		)	77
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			—			—			—
Comprehensive income (loss) attributable to NCR common stockholders	$	163		$	68		$	(34	)	$	(120	)	$	77

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the three months ended June 30, 2018
In millions	Parent Issuer			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	258		$	24	$	306		$	(63	)	$	525
Service revenue	519			8		485			—			1,012
Total revenue	777			32		791			(63		)	1,537
Cost of products	236			7		271			(63		)	451
Cost of services	354			3		326			—			683
Selling, general and administrative expenses	130			—		131			—			261
Research and development expenses	29			—		36			—			65
Asset impairment charges	165			—		18			—			183
Total operating expenses	914			10		782			(63		)	1,643
Income (loss) from operations	(137		)	22		9			—			(106		)
Interest expense	(40		)	—		(3		)	2			(41		)
Other (expense) income, net	(12		)	1		4			(2		)	(9		)
Income (loss) from continuing operations before income taxes	(189		)	23		10			—			(156		)
Income tax expense (benefit)	32			2		(46		)	—			(12		)
Income (loss) from continuing operations before earnings in subsidiaries	(221		)	21		56			—			(144		)
Equity in earnings of consolidated subsidiaries	77			62		—			(139		)	—
Income (loss) from continuing operations	(144		)	83		56			(139		)	(144		)
Income (loss) from discontinued operations, net of tax	(1		)	—		(1		)	—			(2		)
Net income (loss)	$	(145	)	$	83	$	55		$	(139	)	$	(146	)
Net income (loss) attributable to noncontrolling interests	—			—		(1		)	—			(1		)
Net income (loss) attributable to NCR	$	(145	)	$	83	$	56		$	(139	)	$	(145	)
Total comprehensive income (loss)	(185		)	46		10			(60		)	(189		)
Less comprehensive income (loss) attributable to noncontrolling interests	—			—		(4		)	—			(4		)
Comprehensive income (loss) attributable to NCR common stockholders	$	(185	)	$	46	$	14		$	(60	)	$	(185	)

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the six months ended June 30, 2019
In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	617		$	5		$	709		$	(128	)	$	1,203
Service revenue	1,075			3			965			—			2,043
Total revenue	1,692			8			1,674			(128		)	3,246
Cost of products	534			1			585			(128		)	992
Cost of services	702			2			668			—			1,372
Selling, general and administrative expenses	281			—			223			—			504
Research and development expenses	67			—			54			—			121
Total operating expenses	1,584			3			1,530			(128		)	2,989
Income (loss) from operations	108			5			144			—			257
Interest expense	(86		)	—			(9		)	5			(90		)
Other (expense) income, net	(20		)	4			4			(5		)	(17		)
Income (loss) from continuing operations before income taxes	2			9			139			—			150
Income tax expense (benefit)	1			(18		)	41			—			24
Income (loss) from continuing operations before earnings in subsidiaries	1			27			98			—			126
Equity in earnings of consolidated subsidiaries	124			156			—			(280		)	—
Income (loss) from continuing operations	125			183			98			(280		)	126
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	125		$	183		$	98		$	(280	)	$	126
Net income (loss) attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to NCR	$	125		$	183		$	97		$	(280	)	$	125
Total comprehensive income (loss)	253			185			104			(411		)	131
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	253		$	185		$	103		$	(411	)	$	130

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the six months ended June 30, 2018
In millions	Parent Issuer			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	535		$	29	$	588		$	(101	)	$	1,051
Service revenue	1,036			16		951			—			2,003
Total revenue	1,571			45		1,539			(101		)	3,054
Cost of products	465			11		496			(101		)	871
Cost of services	696			6		658			—			1,360
Selling, general and administrative expenses	294			1		211			—			506
Research and development expenses	75			—		56			—			131
Asset impairment charges	165			—		18			—			183
Total operating expenses	1,695			18		1,439			(101		)	3,051
Income (loss) from operations	(124		)	27		100			—			3
Interest expense	(79		)	—		(6		)	3			(82		)
Other (expense) income, net	(15		)	2		2			(3		)	(14		)
Income (loss) from continuing operations before income taxes	(218		)	29		96			—			(93		)
Income tax expense (benefit)	24			4		(33		)	—			(5		)
Income (loss) from continuing operations before earnings in subsidiaries	(242		)	25		129			—			(88		)
Equity in earnings of consolidated subsidiaries	153			121		—			(274		)	—
Income (loss) from continuing operations	(89		)	146		129			(274		)	(88		)
Income (loss) from discontinued operations, net of tax	(36		)	—		(1		)	—			(37		)
Net income (loss)	$	(125	)	$	146	$	128		$	(274	)	$	(125	)
Net income (loss) attributable to noncontrolling interests	—			—		—			—			—
Net income (loss) attributable to NCR	$	(125	)	$	146	$	128		$	(274	)	$	(125	)
Total comprehensive income (loss)	(151		)	108		97			(208		)	(154		)
Less comprehensive income (loss) attributable to noncontrolling interests	—			—		(3		)	—			(3		)
Comprehensive income (loss) attributable to NCR common stockholders	$	(151	)	$	108	$	100		$	(208	)	$	(151	)

Condensed Consolidating Balance Sheet
June 30, 2019
In millions	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	18	$	2	$	315	$	—		$	335
Accounts receivable, net	57		1		1,372		—			1,430
Inventories	309		1		558		—			868
Due from affiliates	830		2,081		404		(3,315		)	—
Other current assets	143		2		257		—			402
Total current assets	1,357		2,087		2,906		(3,315		)	3,035
Property, plant and equipment, net	260		—		112		—			372
Goodwill	2,199		—		508		—			2,707
Intangibles, net	498		—		55		—			553
Operating lease assets	270		—		144		—			414
Prepaid pension cost	—		—		151		—			151
Deferred income taxes	315		3		150		—			468
Investments in subsidiaries	3,477		3,050		—		(6,527		)	—
Due from affilates	16		1		—		(17		)	—
Other assets	465		1		56		—			522
Total assets	$	8,857	$	5,142	$	4,082	$	(9,859	)	$	8,222
Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	94	$	—	$	104	$	—		$	198
Accounts payable	365		—		404		—			769
Payroll and benefits liabilities	125		—		110		—			235
Contract liabilities	294		1		251		—			546
Due to affiliates	2,478		109		728		(3,315		)	—
Other current liabilities	208		1		346		—			555
Total current liabilities	3,564		111		1,943		(3,315		)	2,303
Long-term debt	2,915		—		3		—			2,918
Pension and indemnity plan liabilities	514		—		253		—			767
Postretirement and postemployment benefits liabilities	17		4		99		—			120
Income tax accruals	25		—		69		—			94
Due to affiliates	—		—		17		(17		)	—
Operating lease liabilities	297		—		92		—			389
Other liabilities	99		—		87		—			186
Total liabilities	7,431		115		2,563		(3,332		)	6,777
Redeemable noncontrolling interest	—		—		14		—			14
Series A convertible preferred stock	884		—		—		—			884
Stockholders’ equity
Total NCR stockholders’ equity	542		5,027		1,500		(6,527		)	542
Noncontrolling interests in subsidiaries	—		—		5		—			5
Total stockholders’ equity	542		5,027		1,505		(6,527		)	547
Total liabilities and stockholders’ equity	$	8,857	$	5,142	$	4,082	$	(9,859	)	$	8,222

Condensed Consolidating Balance Sheet
December 31, 2018
In millions	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	6	$	8	450		$	—		$	464
Accounts receivable, net	37		10		1,309		—			1,356
Inventories	288		4		514		—			806
Due from affiliates	708		2,092		457		(3,257		)	—
Other current assets	137		47		255		(42		)	397
Total current assets	1,176		2,161		2,985		(3,299		)	3,023
Property, plant and equipment, net	245		1		113		—			359
Goodwill	2,168		—		524		—			2,692
Intangibles, net	536		—		59		—			595
Prepaid pension cost	—		—		140		—			140
Deferred income taxes	317		—		149		(18		)	448
Investments in subsidiaries	3,244		2,854		—		(6,098		)	—
Due from affiliates	16		1		35		(52		)	—
Other assets	453		4		47		—			504
Total assets	$	8,155	$	5,021	$	4,052	$	(9,467	)	$	7,761
Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	85	$	—	$	100	$	—		$	185
Accounts payable	397		2		498		—			897
Payroll and benefits liabilities	141		—		97		—			238
Contract liabilities	221		5		235		—			461
Due to affiliates	2,177		143		937		(3,257		)	—
Other current liabilities	201		6		336		(42		)	501
Total current liabilities	3,222		156		2,203		(3,299		)	2,282
Long-term debt	2,978		—		2		—			2,980
Pension and indemnity plan liabilities	502		—		257		—			759
Postretirement and postemployment benefits liabilities	18		3		97		—			118
Income tax accruals	19		5		67		—			91
Due to affiliates	—		36		16		(52		)	—
Other liabilities	162		24		91		(18		)	259
Total liabilities	6,901		224		2,733		(3,369		)	6,489
Redeemable noncontrolling interest	—		—		14		—			14
Series A convertible preferred stock	859		—		—		—			859
Stockholders’ equity
Total NCR stockholders’ equity	395		4,797		1,301		(6,098		)	395
Noncontrolling interests in subsidiaries	—		—		4		—			4
Total stockholders’ equity	395		4,797		1,305		(6,098		)	399
Total liabilities and stockholders’ equity	$	8,155	$	5,021	$	4,052	$	(9,467	)	$	7,761

Condensed Consolidating Statement of Cash Flows
For the six months ended June 30, 2019
In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	230		$	(208	)	$	50		$	(1	)	$	71
Investing activities
Expenditures for property, plant and equipment	(17		)	—			(18		)	—			(35		)
Proceeds from sales of property, plant and equipment	3			—			8			—			11
Additions to capitalized software	(93		)	—			(10		)	—			(103		)
Proceeds from (payments of) intercompany notes	47			255			34			(336		)	—
Investments in equity affiliates	—			—			98			(98		)	—
Business acquisitions, net	(12		)	—			—			—			(12		)
Other investing activities, net	5			—			—			—			5
Net cash provided by (used in) investing activities	(67		)	255			112			(434		)	(134		)
Financing activities
Short term borrowings, net	4			—			—			—			4
Payments on term credit facilities	(39		)	—			—			—			(39		)
Payments on revolving credit facilities	(800		)	—			(114		)	—			(914		)
Borrowings on revolving credit facilities	780			—			117			—			897
Proceeds from employee stock plans	10			—			—			—			10
Equity contribution	(84		)	(14		)	—			98			—
Dividend distribution to consolidated subsidiaries	—			—			(1		)	1			—
Borrowings (repayments) of intercompany notes	—			(34		)	(302		)	336			—
Tax withholding payments on behalf of employees	(16		)	—			—			—			(16		)
Net cash provided by (used in) financing activities	(145		)	(48		)	(300		)	435			(58		)
Cash flows from discontinued operations
Net cash used in operating activities	(11		)	—			—			—			(11		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			1			—			1
Increase (decrease) in cash, cash equivalents and restricted cash	7			(1		)	(137		)	—			(131		)
Cash, cash equivalents and restricted cash at beginning of period	12			3			461			—			476
Cash, cash equivalents and restricted cash at end of period	$	19		$	2		$	324		$	—		$	345

In millions	June 30, 2019
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	18	$	2	$	315	$	—	$	335
Restricted cash included in Other assets	1		—		9		—		10
Total cash, cash equivalents and restricted cash	$	19	$	2	$	324	$	—	$	345

Condensed Consolidating Statement of Cash Flows
For the six months ended June 30, 2018
In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	105		$	(150	)	$	140		$	—		$	95
Investing activities
Expenditures for property, plant and equipment	(57		)	—			(13		)	—			(70		)
Additions to capitalized software	(71		)	—			(15		)	—			(86		)
Proceeds from (payments of) intercompany notes	160			145			—			(305		)	—
Other investing activities, net	(3		)	—			—			—			(3		)
Net cash provided by (used in) investing activities	29			145			(28		)	(305		)	(159		)
Financing activities
Short term borrowings, net	3			—			(1		)	—			2
Payments on term credit facilities	(34		)	—			—			—			(34		)
Payments on revolving credit facilities	(660		)	—			(353		)	—			(1,013		)
Borrowings on revolving credit facilities	710			—			453			—			1,163
Repurchase of Company common stock	(210		)	—			—			—			(210		)
Proceeds from employee stock plans	11			—			—			—			11
Borrowings (repayments) of intercompany notes	—			—			(305		)	305			—
Tax withholding payments on behalf of employees	(29		)	—			—			—			(29		)
Net cash provided by (used in) financing activities	(209		)	—			(206		)	305			(110		)
Cash flows from discontinued operations
Net cash used in operating activities	(11		)	—			—			—			(11		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(8		)	—			(8		)
Increase (decrease) in cash, cash equivalents, and restricted cash	(86		)	(5		)	(102		)	—			(193		)
Cash, cash equivalents and restricted cash at beginning of period	97			11			435			—			543
Cash, cash equivalents and restricted cash at end of period	$	11		$	6		$	333		$	—		$	350

In millions	June 30, 2018
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	11	$	6	$	326	$	—	$	343
Restricted cash included in Other assets	—		—		7		—		7
Total cash, cash equivalents and restricted cash	$	11	$	6	$	333	$	—	$	350