XML 54 R35.htm IDEA: XBRL DOCUMENT v3.22.4
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations 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 
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 
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.
Schedule of Changes in Fair Value of Plan Assets
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 $2,485 
Schedule of Net Benefit Costs and Amounts Recognized in Balance Sheet
The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss as of December 31:
U.S. Pension BenefitsInternational Pension BenefitsTotal Pension Benefits
In millions202220212022202120222021
Funded Status$(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 $17 
The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss as of December 31:
Postretirement Benefits
In millions20222021
Benefit obligation$(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)$5 
The following table presents the funded status and the reconciliation of the unfunded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss at December 31:
Postemployment Benefits
In millions20222021
Benefit obligation$(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)$(25)
Schedule of Net Benefit Costs
The net periodic benefit (income) cost of the pension plans for the years ended December 31 was as follows:
In millionsU.S. Pension BenefitsInternational 
Pension Benefits		Total Pension Benefits
202220212020202220212020202220212020
Net service cost$— $— $— $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)$41 
The net periodic benefit cost (income) of the postretirement plan for the years ended December 31 was:
In millionsPostretirement Benefits
202220212020
Interest cost$— $— $— 
Amortization of:
   Prior service benefit— — (3)
   Actuarial loss1 1 1 
Net periodic benefit cost (income)$1 $1 $(2)
The 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 
Defined Benefit Plan, Assumptions
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 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
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 %
Schedule of Allocation of 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.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
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 
Schedule of Expected 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 $65 
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year The amounts in Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during 2023 are as follows:
In millionsU.S.
Pension Benefits		International Pension BenefitsTotal
Pension Benefits		Postretirement BenefitsPostemployment Benefits
Prior service cost (benefit)$— $— $— $— $(2)
Actuarial loss (gain)$— $— $— $— $(3)