Discontinued Operations

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

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 during 2024 and excludes the countries that have not yet transferred to NCR Atleos as of June 30, 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 six months ended June 30, 2024, five of these seven delayed countries transferred to NCR Atleos.

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 June 30				Six months ended June 30
	2024(1)		2023		2024(1)		2023
Product revenue	$	—	$	265	$	—	$	498
Service revenue	1		775		5		1,527
Total revenue	1		1,040		5		2,025
Cost of products	—		209		—		398
Cost of services	—		557		4		1,111
Selling, general and administrative expenses	—		169		1		308
Research and development expenses	—		15		—		30
Total operating expenses	—		950		5		1,847
Income from discontinued operations	1		90		—		178
Interest expense	—		—		—		—
Other income (expense), net	—		—		—		1
Income (loss) from discontinued operations before income taxes	1		90		—		179
Income tax expense (benefit)	—		22		—		31
Net income (loss) from discontinued operations	1		68		—		148
Net income (loss) attributable to noncontrolling interests	—		(1)		—		—
Net income (loss) from discontinued operations related to NCR Atleos	$	1	$	69	$	—	$	148

(1)Represents operations of the delayed countries that transferred to NCR Atleos during 2024 through date of separation versus full period 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
Cash and cash equivalents	$	1
Accounts receivable, net of allowances	9
Inventories	4
Prepaid and other current assets	1
Total current assets	15
Other assets	8
Noncurrent assets	8
Total assets of discontinued operations	$	23
Liabilities
Current liabilities
Accounts payable	$	1
Payroll and benefits liabilities	1
Contract liabilities	10
Other current liabilities	3
Total current liabilities	15
Pension and indemnity plan liabilities	7
Other liabilities	5
Noncurrent liabilities	12
Total liabilities of discontinued operations	$	27

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

In millions	Six months ended June 30
	2024(1)		2023
Net cash provided by (used in) operating activities	$	—	$	292
Net cash provided by (used in) investing activities	—		(37)
Net cash provided by (used in) financing activities	—		(2)

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

Environmental Matters

The costs and insurance recoveries relating to certain environmental obligations associated with discontinued operations, including those relating to the Fox River and Kalamazoo River 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 the three and six months ended June 30, 2024 and a loss of $1 million for the three and six months ended June 30, 2023. Net cash provided by or used in operating activities of discontinued operations related to environmental obligations was $3 million cash provided by operating activities and $6 million cash used in operating activities for the six months ended June 30, 2024 and 2023, respectively. Refer to Note 10, “Commitments and Contingencies” for further information.