Discontinued Operations

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

2. DISCONTINUED OPERATIONS

Spin-Off of NCR Atleos

On October 16, 2023, the Company completed the Spin-Off of NCR Atleos into an independent publicly traded company. Refer to Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” for additional information regarding the Spin-Off. The historical results of NCR Atleos have been presented as discontinued operations. The Company’s presentation of discontinued operations excludes general corporate overhead costs that did not meet the requirements to be presented as discontinued operations. The 2023 presentation of discontinued operations has been updated to reflect the results of operations for the countries that transferred to NCR Atleos in the first quarter of 2024 and excludes the countries that have not yet transferred to NCR Atleos as of March 31, 2024. The results of operations for the countries that have not yet transferred will be presented as part of discontinued operations as of the date of their separation. As of December 31, 2023, there were seven

countries that had not yet transferred to NCR Atleos. During the three months ended March 31, 2024, three of these delayed countries transferred to NCR Atleos, and one additional country transferred during April 2024.

The following table presents the major categories of income (loss) from discontinued operations related to the Spin-Off of NCR Atleos:


In millions	Three months ended March 31
	2024(1)		2023
Product revenue	$	—	$	230
Service revenue	1		745
Total revenue	1		975
Cost of products	—		187
Cost of services	2		552
Selling, general and administrative expenses	—		139
Research and development expenses	—		15
Total operating expenses	2		893
Income from discontinued operations	(1)		82
Interest expense	—		—
Other income (expense), net	—		1
Income (loss) from discontinued operations before income taxes	(1)		83
Income tax expense (benefit)	(1)		9
Net income (loss) from discontinued operations	—		74
Net income (loss) attributable to noncontrolling interests	—		1
Net income (loss) from discontinued operations related to NCR Atleos	$	—	$	73

(1)Represents operations of the three delayed countries that transferred to NCR Atleos during the first quarter of 2024 through date of separation versus full quarter of NCR Atleos operations for 2023.

The following table presents the major classes of assets and liabilities of discontinued operations:


In millions	December 31, 2023
Assets
Current assets

Accounts receivable, net of allowances	$	4
Inventories	3

Prepaid and other current assets	1
Total current assets	8








Total assets of discontinued operations	$	8

Liabilities and stockholder's equity
Current liabilities



Contract liabilities	$	3

Other current liabilities	2
Total current liabilities	5

Pension and indemnity plan liabilities	2




Noncurrent liabilities	2
Total liabilities of discontinued operations	$	7

The following table presents selected financial information related to cash flows from discontinued operations:


In millions	Three months ended March 31
	2024(1)		2023
Net cash provided by (used in) operating activities	$	—	$	195
Net cash provided by (used in) investing activities	—		(25)
Net cash provided by (used in) financing activities	—		—

Environmental Matters

The costs and insurance recoveries relating to certain environmental obligations associated with discontinued operations, including those relating to the Fox River, Kalamazoo River and Ebina matters, are presented in Income (loss) from discontinued operations, net of tax, in the Consolidated Statements of Operations. Income (loss) from discontinued operations, net of tax, related to environmental matters was zero income or loss for each of the three months ended March 31, 2024 and 2023. Net cash used in operating activities of discontinued operations related to environmental obligations was zero and $6 million for the three months ended March 31, 2024 and 2023, respectively. Refer to Note 10, “Commitments and Contingencies” for further information.