Discontinued Operations

9 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

2. DISCONTINUED OPERATIONS

Digital Banking Sale

On September 30, 2024, the Company completed the Digital Banking Sale. Refer to Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” for additional information. The historical results of the Digital Banking businesses have been presented as discontinued operations for the periods presented. 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 Company recognized a pre-tax gain of approximately $1.5 billion, which was recognized in Net income (loss) from discontinued operations.

The following table presents the major categories of income (loss) from discontinued operations related to the Digital Banking Sale:


In millions	Three months ended September 30				Nine months ended September 30
	2024		2023		2024		2023
Product revenue	$	15	$	16	$	38	$	37
Service revenue	141		134		419		392
Total revenue	156		150		457		429
Cost of products	9		12		31		30
Cost of services	65		73		221		209
Selling, general and administrative expenses	39		19		84		56
Research and development expenses	14		10		37		31
Total operating expenses	127		114		373		326
Income from discontinued operations	29		36		84		103
Interest expense	—		—		—		—
Other income (expense), net	(48)		(5)		(48)		(5)
Income (loss) from discontinued operations before gain on sale of business and income taxes	(19)		31		36		98
Gain on sale of business	1,546		—		1,546		—
Income (loss) from discontinued operations before income taxes	1,527		31		1,582		98
Income tax expense (benefit)	395		(1)		401		(2)
Net income (loss) from discontinued operations	1,132		32		1,181		100
Net income (loss) attributable to noncontrolling interests	—		—		—		—
Net income (loss) from discontinued operations related to Digital Banking	$	1,132	$	32	$	1,181	$	100

The following table presents the major classes of assets and liabilities of discontinued operations related to the Digital Banking Sale:


In millions	December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	2
Accounts receivable, net of allowances	58


Prepaid and other current assets	9
Total current assets	69
Property, plant and equipment, net	5
Goodwill	521
Intangibles, net	168
Operating lease assets	5

Deferred income taxes	2
Other assets	183
Noncurrent assets	884
Total assets of discontinued operations	$	953

Liabilities
Current liabilities

Accounts payable	$	64
Payroll and benefits liabilities	22
Contract liabilities	30

Other current liabilities	4
Total current liabilities	120




Operating lease liabilities	3
Other liabilities	7
Noncurrent liabilities	10
Total liabilities of discontinued operations	$	130

The following table presents selected financial information related to cash flows from discontinued operations related to the Digital Banking Sale:


In millions	Nine months ended September 30
	2024		2023
Net cash provided by (used in) operating activities	$	(299)	$	170
Net cash provided by (used in) investing activities	(57)		(72)
Net cash provided by (used in) financing activities	—		—

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 September 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 nine months ended September 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 September 30				Nine months ended September 30
	2024(1)		2023		2024(1)		2023
Product revenue	$	—	$	247	$	—	$	745
Service revenue	—		811		5		2,338
Total revenue	—		1,058		5		3,083
Cost of products	—		200		—		598
Cost of services	—		492		4		1,603
Selling, general and administrative expenses	—		176		1		484
Research and development expenses	—		16		—		46
Total operating expenses	—		884		5		2,731
Income from discontinued operations	—		174		—		352
Interest expense	—		(2)		—		(2)
Other income (expense), net	—		(18)		—		(17)
Income (loss) from discontinued operations before income taxes	—		154		—		333
Income tax expense (benefit)	—		48		—		79
Net income (loss) from discontinued operations	—		106		—		254
Net income (loss) attributable to noncontrolling interests	—		1		—		1
Net income (loss) from discontinued operations related to NCR Atleos	$	—	$	105	$	—	$	253

(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 related to the Spin-Off of NCR Atleos:


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 related to the Spin-off of NCR Atleos:


In millions	Nine months ended September 30
	2024(1)		2023
Net cash provided by (used in) operating activities	$	—	$	441
Net cash provided by (used in) investing activities	—		(93)
Net cash provided by (used in) financing activities	—		—

(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 a loss of $19 million for the three and nine months ended September 30, 2024 and zero and a loss of $1 million for the three and nine months ended September 30, 2023, respectively. Net cash provided by or used in operating activities of discontinued operations related to environmental obligations was $4 million cash used in operating activities and $1 million cash used in operating activities for the nine months ended September 30, 2024 and 2023, respectively. Refer to Note 10, “Commitments and Contingencies” for further information.