Pension and Postemployment Plans The Company sponsors defined benefit pension plans. Following the Spin-Off, NCR Atleos assumed the U.S. and certain international pension plan assets and liabilities, along with the associated deferred costs in accumulated other comprehensive loss, which were previously sponsored by the Company. Pursuant to the terms of the Spin-Off transaction documents, the Company is required to contribute 50% of the annual costs of the NCR Atleos U.S. pension plan to the extent NCR Atleos contributes more than $40 million on an annual basis beginning with the plan year ending December 31, 2024.

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. The Company’s funding policy is to contribute annually no less than the minimum required by applicable laws and regulations. Assets of the Company’s defined benefit plans are primarily invested in common and commingled trusts.

The Company 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 postemployment plans, changes to the funded status are recognized as a component of other comprehensive loss in stockholders’ equity.

Non-U.S. employees are typically covered under government-sponsored programs, and the Company generally does not provide postretirement benefits other than pensions to non-U.S. retirees. The Company generally funds these benefits on a pay-as-you-go basis.

The Company offers various postemployment benefits to involuntarily terminated and certain inactive employees after employment but before retirement. These benefits are paid in accordance with the Company’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. The Company provides appropriate accruals for these postemployment benefits. These postemployment benefits are funded on a pay-as-you-go basis.


	International Pension Benefits
In millions		2023		2022
Change in benefit obligation
Benefit obligation as of January 1		$	178	$	249
Net service cost		2		2
Interest cost		6		2

Actuarial (gain) loss		15		(43)
Benefits paid		(14)		(13)
Settlements		—		—
Plan participant contributions		—		—
Currency translation adjustments		5		(19)
Benefit obligation as of December 31		$	192	$	178
Accumulated benefit obligation as of December 31		$	191	$	175


	International Pension Benefits
In millions		2023		2022
Change in plan assets
Fair value of plan assets as of January 1		$	51	$	64
Actual return on plan assets		10		(3)
Company contributions		13		12
Benefits paid		(14)		(13)
Settlement		—		—
Currency translation adjustments		(4)		(9)
Plan participant contributions		—		—
Fair value of plan assets as of December 31		$	56	$	51

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:


	International Pension Benefits
In millions		2023		2022
Funded Status		$	(136)	$	(127)
Amounts recognized in the Consolidated Balance Sheets
Noncurrent assets		$	43	$	40
Current liabilities		(12)		(11)
Noncurrent liabilities		(167)		(156)
Net amounts recognized		$	(136)	$	(127)
Amounts recognized in accumulated other comprehensive loss
Prior service cost		—		—
Total		$	—	$	—

For pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation and accumulated benefit obligation were $163 million and $162 million, respectively, as of December 31, 2023, and $147 million and $149 million, respectively, as of December 31, 2022. The fair value of assets was zero as of both December 31, 2023 and December 31, 2022.


In millions	International Pension Benefits
		2023		2022		2021
Net service cost		$	2	$	2	$	2
Interest cost		6		2		1
Expected return on plan assets		(2)		(1)		(1)
Amortization of prior service cost		—		—		—


Actuarial (gain) loss		7		(41)		(7)
Net periodic benefit (income) cost		$	13	$	(38)	$	(5)

The net actuarial loss in 2023 was primarily due to plan experience losses as well as a decrease in discount rates, partially offset by favorable returns on plan assets. Actuarial gains in 2022 were primarily due to an increase in discount rates partially offset by unfavorable returns on the fair value of plan assets. Actuarial gains in 2021 were primarily due favorable returns on plan assets.


	International Pension Benefits
		2023	2022		2021
Discount rate - Service Cost		1.8%	0.8	%	0.6	%
Discount rate - Interest Cost		3.4%	0.7	%	0.3	%
Expected return on plan assets		5.0%	2.1	%	2.0	%
Rate of compensation increase		1.0%	0.9	%	0.7	%

The discount rate used to determine the International plans benefit obligations as of December 31, 2023 were derived 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.

The Company 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.


	International Pension Fund
		Actual Allocation of Plan Assets as of December 31					Target Asset Allocation
			2023			2022
Equity and other investments(1)				66	%		62	%	62.5%
Debt securities(2)				34	%		37	%	37.2%

Other				1	%		—	%	0.3%
Total				100	%		100	%


		International
In millions	Notes		Fair Value as of December 31, 2023		Quoted 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 and commingled trusts - Equities	1		37		—		—		—		37
Fixed income securities:


Common and commingled trusts - Bonds	1		19		—		—		—		19











Total			$	56	$	—	$	—	$	—	$	56


		International
In millions	Notes		Fair Value as of December 31, 2022		Quoted 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 and commingled trusts - Equities	1		32		—		—		—		32
Fixed income securities:


Common and commingled trusts - Bonds	1		19		—		—		—		19











Total			$	51	$	—	$	—	$	—	$	51

1.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.

Investment Strategy The Company 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. When considering assets for investment, the Company considers the expected rate of return and the risk of return, among others, of each potential investment. 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.


	Postemployment Benefits
In millions	2023		2022
Change in benefit obligation
Benefit obligation as of January 1	$	93	$	64

Service cost(1)	15		58
Interest cost	2		1

Benefits paid	(54)		(18)
Foreign currency exchange	—		(3)
Actuarial (gain) loss	9		(9)
Benefit obligation as of December 31	$	65	$	93

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 millions	2023		2022
Benefit obligation	$	65	$	93
Amounts recognized in the Consolidated Balance Sheets
Current liabilities	$	22	$	57
Noncurrent liabilities	43		36
Net amounts recognized	$	65	$	93
Amounts recognized in Accumulated other comprehensive loss
Net actuarial (gain) loss	$	9	$	(9)
Amortization of gain (loss)	1		—
Amortization of prior service cost	1		1
Total	$	11	$	(8)


In millions	Postemployment Benefits
	2023		2022		2021
Service cost	$	15	$	58	$	15
Interest cost	2		1		1
Amortization of:
Prior service benefit	(1)		(1)		(1)
Actuarial gain	(1)		—		(1)
Net periodic benefit cost	$	15	$	58	$	14


	Postemployment Benefit Obligations				Postemployment Benefit Costs
	2023		2022		2023		2022		2021
Discount rate for severance plan	4.1	%	5.1	%	5.1	%	2.3	%	1.4	%

Salary increase rate	3.4	%	3.1	%	3.1	%	2.6	%	2.0	%
Involuntary turnover rate	3.8	%	3.8	%	3.8	%	3.8	%	3.8	%

Cash Contributions The Company plans to contribute approximately $13 million to the international pension plans in 2024. The Company also plans to make contributions of approximately $21 million to the postemployment plan in 2024.

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. The Company’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 $22 million in 2023, $26 million in 2022, and $22 million in 2021. The expense under international and subsidiary savings plans was $11 million in 2023, $11 million in 2022, and $14 million in 2021.

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 2024 are less than $1 million.