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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS 9. EMPLOYEE BENEFIT PLANS
Pension, Postretirement and Postemployment Plans NCR sponsors defined benefit pension plans. NCR’s U.S. pension plan no longer offers additional benefits and is closed to new participants. Internationally, the defined benefit plans are based primarily upon compensation and years of service. Certain international plans also no longer offer additional benefits and are closed to new participants. NCR’s funding policy is to contribute annually no less than the minimum required by applicable laws and regulations. Assets of NCR’s defined benefit plans are primarily invested in common and commingled trusts, corporate and government debt securities, publicly traded common stocks, real estate investments, and cash or cash equivalents.

NCR recognizes the funded status of each applicable plan on the Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. For pension plans, changes in the fair value of plan assets and net actuarial gains or losses are recognized upon remeasurement, which is at least annually in the fourth quarter of each year. For postretirement and postemployment plans, changes to the funded status are recognized as a component of other comprehensive loss in stockholders' equity.

NCR sponsors a U.S. postretirement benefit plan that no longer offers benefits to U.S. participants who had not reached a certain age and years of service with NCR. The plan provides medical care benefits to retirees and their eligible dependents. Non-U.S. employees are typically covered under government-sponsored programs, and NCR generally does not provide postretirement benefits other than pensions to non-U.S. retirees. NCR generally funds these benefits on a pay-as-you-go basis.

NCR offers various postemployment benefits to involuntarily terminated and certain inactive employees after employment but before retirement. These benefits are paid in accordance with NCR’s established postemployment benefit practices and policies. Postemployment benefits include mainly severance as well as continuation of healthcare benefits and life insurance coverage while on disability. NCR provides appropriate accruals for these postemployment benefits. These postemployment benefits are funded on a pay-as-you-go basis.
Pension Plans Reconciliation of the beginning and ending balances of the benefit obligations for NCR's pension plans are as follows:
U.S. Pension BenefitsInternational Pension BenefitsTotal Pension Benefits
In millions202220212022202120222021
Change in benefit obligation
Benefit obligation as of January 1$1,882 $2,067 $1,105 $1,246 $2,987 $3,313 
Net service cost— — 5 6 5 6 
Interest cost39 34 12 8 51 42 
Amendment— — — (6)— (6)
Actuarial (gain) loss(409)(102)(222)(57)(631)(159)
Benefits paid(115)(117)(53)(60)(168)(177)
Settlements— — (1)— (1)— 
Plan participant contributions— — — — — — 
Currency translation adjustments— — (78)(32)(78)(32)
Benefit obligation as of December 31$1,397 $1,882 $768 $1,105 $2,165 $2,987 
Accumulated benefit obligation as of December 31$1,397 $1,882 $761 $1,095 $2,158 $2,977 

A reconciliation of the beginning and ending balances of the fair value of the plan assets of NCR's pension plans are as follows:
U.S. Pension BenefitsInternational Pension BenefitsTotal Pension Benefits
In millions202220212022202120222021
Change in plan assets
Fair value of plan assets as of January 1$1,379 $1,528 $1,106 $1,118 $2,485 $2,646 
Actual return on plan assets(324)(32)(225)47 (549)15 
Company contributions50 — 17 17 67 17 
Benefits paid(115)(117)(53)(60)(168)(177)
Settlement— — (1)— (1)— 
Currency translation adjustments— — (84)(16)(84)(16)
Plan participant contributions— — — — — — 
Fair value of plan assets as of December 31$990 $1,379 $760 $1,106 $1,750 $2,485 
The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss as of December 31:
U.S. Pension BenefitsInternational Pension BenefitsTotal Pension Benefits
In millions202220212022202120222021
Funded Status$(407)$(503)$(8)$1 $(415)$(502)
Amounts recognized in the Consolidated Balance Sheets
Noncurrent assets$— $— $212 $300 $212 $300 
Current liabilities— — (13)(13)(13)(13)
Noncurrent liabilities(407)(503)(207)(286)(614)(789)
Net amounts recognized$(407)$(503)$(8)$1 $(415)$(502)
Amounts recognized in accumulated other comprehensive loss
Prior service cost— — 13 17 13 17 
Total$— $— $13 $17 $13 $17 
For pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of assets were $1,584 million, $1,582 million, and $992 million, respectively, as of December 31, 2022, and $2,151 million, $2,149 million and $1,382 million, respectively, as of December 31, 2021.

The net periodic benefit (income) cost of the pension plans for the years ended December 31 was as follows:
In millionsU.S. Pension BenefitsInternational 
Pension Benefits		Total Pension Benefits
202220212020202220212020202220212020
Net service cost$— $— $— $5 $6 $6 $5 $6 $6 
Interest cost39 34 51 12 8 13 51 42 64 
Expected return on plan assets(66)(30)(36)(27)(25)(28)(93)(55)(64)
Amortization of prior service cost— — — — 1 1 — 1 1 
Actuarial (gain) loss(20)(40)18 28 (78)16 8 (118)34 
Net periodic benefit (income) cost$(47)$(36)$33 $18 $(88)$8 $(29)$(124)$41 

The net actuarial loss in 2022 was primarily due to the impact of economic downturns on the value of plan assets, partially offset by an increase in discount rates in measuring the benefit obligation. Actuarial gains in 2021 were primarily due to an increase in discount rates as well as a favorable impact from an update to the mortality tables. Actuarial losses in 2020 were primarily due to a decrease in the discount rate.

The weighted average rates and assumptions used to determine benefit obligations as of December 31 were as follows:
U.S. Pension BenefitsInternational Pension BenefitsTotal Pension Benefits
202220212022202120222021
Discount rate5.3 %2.7 %3.8 %1.4 %4.8 %2.2 %
Rate of compensation increaseN/AN/A1.8 %1.4 %1.8 %1.4 %

The weighted average rates and assumptions used to determine net periodic benefit (income) cost for the years ended December 31 were as follows:
U.S. Pension BenefitsInternational 
Pension Benefits		Total Pension Benefits
202220212020202220212020202220212020
Discount rate - Service CostN/AN/AN/A0.9 %0.4 %0.7 %0.9 %0.4 %0.7 %
Discount rate - Interest Cost2.1 %1.7 %2.7 %1.2 %0.7 %1.2 %1.8 %1.3 %2.1 %
Expected return on plan assets5.0 %2.1 %2.8 %2.7 %2.2 %2.6 %4.0 %2.1 %2.7 %
Rate of compensation increaseN/AN/AN/A1.4 %0.9 %0.9 %1.4 %0.9 %0.9 %

The weighted-average cash balance interest crediting rate for the Company's cash balance defined benefit plans was 2.1% and 1.1% for the years ended December 31, 2022 and 2021, respectively.

The discount rate used to determine U.S. benefit obligations as of December 31, 2022 was derived by matching the plans’ expected future cash flows to the corresponding yields from the Willis Tower Watson ("WTW") Rate:Link 10th-90th yield curve. In fiscal 2021 and 2020, the discount rate was determined using the Aon Hewitt AA Bond Universe Curve. The WTW Rate:Link 10th-90th yield curve has been constructed to represent the available yields on high-quality, fixed income investments across a broad range of future maturities. International discount rates were determined by examining interest rate levels and trends within each country, particularly yields on high-quality, long-term corporate bonds, relative to our future expected cash flows.
NCR employs a building block approach as its primary approach in determining the long-term expected rate of return assumptions for plan assets. Historical market returns are studied and long-term relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatilities generate higher returns over the long run. Current market factors, such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The expected long-term portfolio return is established for each plan via a building block approach with proper rebalancing consideration. The result is then adjusted to reflect additional expected return from active management net of plan expenses. Historical plan returns, the expectations of other capital market participants, and peer data may be used to review and assess the results for reasonableness and appropriateness.

Plan Assets The weighted average asset allocations as of December 31, 2022 and 2021 by asset category are as follows:
U.S. Pension FundInternational Pension Fund
Actual Allocation of Plan Assets as of December 31
Target Asset Allocation (3)
Actual Allocation of Plan Assets as of December 31Target Asset Allocation
2022202120222021
Equity and other investments (1)
61 %14 %
60 - 85%
21 %23 %
10 - 30%
Debt securities (2)
20 %84 %
5 - 20%
45 %51 %
50 - 70%
Real estate— %— %
0 - 20%
20 %14 %
10 - 20%
Other19 %2 %
10 - 30%
14 %12 %
5 - 15%
Total100 %100 %100 %100 %

(1) Includes equity securities and equities held in comingled trusts.
(2) Includes debt securities and debt held in comingled trusts.
(3) In 2022, the Company had a change in investment strategy for the U.S. pension plan. Refer to the Investment Strategy section below.
The fair value of plan assets as of December 31, 2022 and 2021 by asset category is as follows:
U.S.International
In millionsNotesFair Value as of December 31, 2022Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)		Not Subject to LevelingFair Value as of December 31, 2022Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)		Not Subject to Leveling
Assets
Equity securities and other investments:
Common stock1 $— $— $— $— $— $88 $— $— $— $88 
Common and commingled trusts - Equities4 603 — — — 603 75 — — — 75 
Fixed income securities:
Government securities2 — — — — — — — — — — 
Corporate debt3 — — — — — 76 — 59 — 17 
Common and commingled trusts - Bonds4 196 — — — 196 330 — — — 330 
Insurance products4 — — — — — 1 — 1 — — 
Real Estate
Partnership/joint venture interests - Real estate5 — — — — — — — — — — 
Real estate and other5 — — — — — 154 — — 154 — 
Other types of investments:
Common and commingled trusts - Short Term Investments4 52 — — — 52 20 — — — 20 
Common and commingled trusts - Balanced4 — — — — — — — — — — 
Partnership/joint venture interests - Other5 25 — — — 25 — — — — — 
Mutual funds4 — — — — — — — — — — 
Hedge Funds4 114 — — — 114 
Money market funds4 — — — — — 16 — — — 16 
Total$990 $— $— $— $990 $760 $— $60 $154 $546 
U.S.International
In millionsNotesFair Value as of December 31, 2021Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)		Not Subject to LevelingFair Value as of December 31, 2021Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Not Subject to Leveling
Assets
Equity securities:
Common stock1 $194 $194 $— $— $— $26 $26 $— $— $— 
Common and commingled trusts - Equities4 — — — — — 145 — — — 145 
Fixed income securities:
Government securities2 201 201 — — — — — — — 
Corporate debt3 752 — 752 — — 87 — 87 — — 
Common and commingled trusts - Bonds4 159 — — — 159 457 — — — 457 
Insurance products4 — — — — — 1 — 1 — — 
Real Estate
Partnership/joint venture interests - Real estate5 — — — — — — — — — — 
Real estate and other5 — — — — — 151 — — 151 — 
Other types of investments:
Common and commingled trusts - Short Term Investments4 39 — — — 39 27 — — — 27 
Common and commingled trusts - Balanced4 — — — — — 185 — — — 185 
Partnership/joint venture interests - Other5 2 — — — 2 — — — — — 
Mutual funds4 30 30 — — — — — — — — 
Money market funds4 2 — — — 2 27 — — — 27 
Total$1,379 $224 $953 $— $202 $1,106 $26 $88 $151 $841 

Notes:
1.Common stocks are valued based on quoted market prices at the closing price as reported on the active market on which the individual securities are traded.
2.Government securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields on similar instruments but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks.
3.Corporate debt is valued primarily based on observable market quotations for similar bonds at the closing price reported on the active market on which the individual securities are traded. When such quoted prices are not available, the bonds are valued using a discounted cash flows approach using current yields on similar instruments of issuers with similar credit ratings.
4.Common/collective trusts and registered investment companies (RICs) such as mutual funds are valued using a Net Asset Value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares or units outstanding. The fair value of the underlying securities within the fund, which are generally traded on an active market, are valued at the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly
available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches, are employed by the fund manager or independent third party to value investments.
5.Partnership/joint ventures are valued based on the fair value of the underlying securities within the fund, which include investments both traded on an active market and not traded on an active market. For those investments that are traded on an active market, the values are based on the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiples and cost valuation approaches, are employed by the fund manager to value investments.

The following table presents the reconciliation of the beginning and ending balances of those plan assets classified within Level 3 of the valuation hierarchy. When the determination is made to classify the plan assets within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.
In millionsInternational Pension Plans
Balance, December 31, 2020$152 
Realized and unrealized gains and losses, net(1)
Purchases, sales and settlements, net— 
Transfers, net— 
Balance, December 31, 2021$151 
Realized and unrealized gains and losses, net3 
Purchases, sales and settlements, net— 
Transfers, net— 
Balance, December 31, 2022$154 

Investment Strategy NCR has historically employed a total return investment approach, whereby a mix of fixed-income, equities and real estate investments are used to maximize the long-term return of plan assets subject to a prudent level of risk. The risk tolerance is established for each plan through a careful consideration of plan liabilities, plan funded status and corporate financial condition. During 2022, in consultation with an independent advisor on asset allocation strategy investment policy and objectives, we chose to diversify the asset allocation held by the U.S. pension plan to capture additional returns to reduce future cash funding requirements.

The investment portfolios contain a diversified mix of asset classes, including, fixed-income investments, which are diversified across U.S. and non-U.S. issuers, type of fixed-income security (i.e., government bonds, corporate bonds, mortgage-backed securities) and credit quality. The investment portfolios also contain a blend of equity investments, which are diversified across U.S. and non-U.S. stocks, small and large capitalization stocks, and growth and value stocks, primarily of non-U.S. issuers. Where applicable, real estate investments are made through real estate securities, partnership interests or direct investment and are diversified by property type and location. Other assets, such as cash or private equity are used judiciously to improve portfolio diversification and enhance risk-adjusted portfolio returns. Derivatives may be used to adjust market exposures in an efficient and timely manner. Due to the timing of security purchases and sales, cash held by fund managers is classified in the same asset category as the related investment. Rebalancing algorithms are applied to keep the asset mix of the plans from deviating excessively from their targets. Investment risk is measured and monitored on an ongoing basis through regular performance reporting, investment manager reviews, actuarial liability measurements and periodic investment strategy reviews.
Postretirement Plans Reconciliation of the beginning and ending balances of the benefit obligation for NCR's U.S. postretirement plan is as follows:
Postretirement Benefits
In millions20222021
Change in benefit obligation
Benefit obligation as of January 1$14 $16 
Interest cost— — 
Actuarial gain(6)(1)
Plan participant contributions— — 
Benefits paid(1)(1)
Benefit obligation as of December 31$7 $14 

The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss as of December 31:
Postretirement Benefits
In millions20222021
Benefit obligation$(7)$(14)
Amounts recognized in the Consolidated Balance Sheets
Current liabilities$(2)$(1)
Noncurrent liabilities(5)(13)
Net amounts recognized$(7)$(14)
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss (gain)$(6)$5 
Prior service benefit— — 
Total$(6)$5 

The net periodic benefit cost (income) of the postretirement plan for the years ended December 31 was:
In millionsPostretirement Benefits
202220212020
Interest cost$— $— $— 
Amortization of:
   Prior service benefit— — (3)
   Actuarial loss1 1 1 
Net periodic benefit cost (income)$1 $1 $(2)

The assumptions utilized in accounting for postretirement benefit obligations as of December 31 and for postretirement benefit income for the years ended December 31 were:
Postretirement Benefit ObligationsPostretirement Benefit Costs
202220212020202220212020
Discount rate5.2 %1.9 %1.4 %1.9 %1.4 %2.5 %
Assumed healthcare cost trend rates as of December 31 were:
20222021
Pre-65 CoveragePost-65 CoveragePre-65 CoveragePost-65 Coverage
Healthcare cost trend rate assumed for next year7.5 %7.0 %6.3 %5.7 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.0 %5.0 %5.0 %5.0 %
Year that the rate reaches the ultimate rate2033203320282028

Postemployment Benefits Reconciliation of the beginning and ending balances of the benefit obligation for NCR's postemployment plan was:
Postemployment Benefits
In millions20222021
Change in benefit obligation
Benefit obligation as of January 1$138 $138 
Service cost (1)
71 24 
Interest cost3 2 
Benefits paid(32)(26)
Foreign currency exchange(8)(7)
Actuarial (gain) loss(14)7 
Benefit obligation as of December 31$158 $138 
(1) During the year ended December 31, 2022, the Company recorded approximately $56 million in employee severance charges related to actions taken in the second half of the year.

The following table presents the funded status and the reconciliation of the unfunded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss at December 31:
Postemployment Benefits
In millions20222021
Benefit obligation$(158)$(138)
Amounts recognized in the Consolidated Balance Sheets
Current liabilities$(73)$(32)
Noncurrent liabilities(85)(106)
Net amounts recognized$(158)$(138)
Amounts recognized in Accumulated other comprehensive loss
Net actuarial gain$(37)$(19)
Prior service benefit(4)(6)
Total$(41)$(25)
The net periodic benefit cost of the postemployment plan for the years ended December 31 was:
In millionsPostemployment Benefits
202220212020
Service cost$71 $24 $42 
Interest cost3 2 3 
Amortization of:
   Prior service benefit(2)(2)(2)
   Actuarial gain(1)(4)(4)
Net periodic benefit cost$71 $20 $39 

The weighted average assumptions utilized in accounting for postemployment benefit obligations as of December 31 and for postemployment benefit costs for the years ended December 31 were:
Postemployment Benefit ObligationsPostemployment Benefit Costs
20222021202220212020
Discount rate for severance plan5.1 %1.4 %2.3 %2.3 %1.8 %
Salary increase rate3.1 %2.0 %2.6 %2.6 %1.8 %
Involuntary turnover rate3.8 %3.8 %3.8 %3.8 %3.8 %

Cash Flows Related to Employee Benefit Plans

Cash Contributions NCR does not plan to contribute to the U.S. qualified pension plan in 2023, and plans to contribute approximately $20 million to the international pension plans in 2023. The Company also plans to make contributions of approximately $2 million to the U.S. postretirement plan and approximately $75 million to the postemployment plan in 2023.

Estimated Future Benefit Payments NCR expects to make the following benefit payments reflecting past and future service from its pension, postretirement and postemployment plans:
In millionsU.S. Pension BenefitsInternational Pension BenefitsTotal Pension BenefitsPostretirement BenefitsPostemployment Benefits
Year
2023$105 $48 $153 $2 $75 
2024$107 $51 $158 $1 $17 
2025$108 $49 $157 $1 $16 
2026$109 $49 $158 $1 $15 
2027$110 $49 $159 $1 $15 
2028-2032$539 $235 $774 $2 $65 

Savings Plans U.S. employees and many international employees participate in defined contribution savings plans. These plans generally provide either a specified percent of pay or a matching contribution on participating employees’ voluntary elections. NCR’s matching contributions typically are subject to a maximum percentage or level of compensation. Employee contributions can be made pre-tax, after-tax or a combination thereof. The expense under the U.S. plan was approximately $37 million in 2022, $31 million in 2021, and $32 million in 2020. The expense under international and subsidiary savings plans was $33 million in 2022, $31 million in 2021, and $25 million in 2020.
Amounts to be Recognized The amounts in Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during 2023 are as follows:
In millionsU.S.
Pension Benefits		International Pension BenefitsTotal
Pension Benefits		Postretirement BenefitsPostemployment Benefits
Prior service cost (benefit)$— $— $— $— $(2)
Actuarial loss (gain)$— $— $— $— $(3)