NCR reported third quarter income from continuing operations
(attributable to NCR) of
"NCR delivered solid results in the third quarter, driven by continued
strong demand for our Retail and Hospitality solutions and the impact of
our ongoing transformation to a greater mix of higher-margin software
revenue,” said
Third Quarter 2013 Operating Segment Results(2)
Financial Services
Operating income for Financial Services was
Retail Solutions
The Retail Solutions segment generated revenue of
Operating income for Retail Solutions was
Hospitality
The Hospitality segment generated revenue of
Operating income for Hospitality was
Emerging Industries
Operating income for
Third Quarter 2013 Business Highlights
NCR continues to achieve recognition for its commitment to innovation and continuous improvement. NCR was ranked 24th on this year's InformationWeek 500, a list of the top technology innovators in the U.S. This marks the third consecutive year NCR has been recognized. InformationWeek identifies and honors the most innovative users of information technology. NCR's high ranking is consistent with the Company's commitment to driving business innovation, the success of NCR Predictive Services, and its cross functional innovation.
Financial Services
In the Financial Services segment, NCR maintained its global leadership
position through the deployment of various advanced technologies and
solutions, including APTRA™ Interactive Teller, and further expansion of
its presence in
APTRA™ Interactive Teller is the only ATM-based technology that lets people talk to a live remote teller and gives the teller remote control over the machine to conduct transactions. APTRA™ Interactive Teller can conduct approximately 95% of typical in-person teller transactions.
NCR saw increased adoption of APTRA™ Interactive Teller among credit
unions in
During the quarter, NCR enhanced its leadership position in
Also, in AMEA, NCR announced that
FNB, one of
Retail Solutions
In Retail Solutions, NCR was selected to provide retail technology
solutions to four major shopping malls in
NCR also announced that, following Globus Russia's successful
introduction of NCR's self-checkout technology in the cities of Vladimir
and Korolev last year,
Hospitality
In the Hospitality segment,
NCR also continued to secure wins with its venue management solutions.
NCR announced a four-year agreement with the
NCR entered into an agreement with
NCR also successfully deployed its Venue Management solution at
1300SMILES Stadium in
Emerging Industries
In
Third Quarter 2013 Financial Highlights
Income from operations was
Net cash provided by operating activities was
NCR contributed approximately
Other expense, net was
Income tax expense was
NCR ended the third quarter of 2013 with
As previously announced, effective in the first quarter of 2013, NCR changed the accounting methodology for recognizing expense for its Company-sponsored U.S. and international pension benefit plans. From 2013 forward, NCR will recognize changes in fair values of plan assets and net actuarial gains and losses in the year incurred, generally in the fourth quarter of each year, which were previously deferred and amortized over time into pension expense. The results and guidance included in this release give effect to the change in accounting methodology.
2013 Outlook
NCR expects full year results to be in line with its previously released guidance, as described below.
NCR expects its full-year 2013 revenues to increase in the range of 9% to 11% on a constant currency(4) basis compared with 2012.
NCR expects its full-year 2013 Income from Operations (GAAP) to be
For the fourth quarter of 2013, the Company expects non-pension
operating income (NPOI)(2) to be in the range of
2013 | 2012 | |||||
Guidance | Actual | |||||
Year-over-year revenue growth (constant currency) (4) | 9% - 11% | 11% | ||||
$546 - $566 | ||||||
Income from Operations (GAAP) (*) | million | $748 million | ||||
$700- $720 | ||||||
Non-pension operating income((2)) | million | $589 million | ||||
Diluted earnings per share (GAAP) | $2.08 - $2.18 | $2.90 | ||||
Diluted earnings per share excluding pension expense and special items (non-GAAP)(2) | $2.70 - $2.80 | $2.49 |
* Income from operations guidance for the fourth quarter of 2013 and full year 2013 excludes the impact of the actuarial mark to market pension adjustments that will be determined in the fourth quarter of 2013, whereas the fourth quarter of 2012 actual and 2012 actual income from operations include the actuarial mark to market pension adjustments for such periods.
2013 Third Quarter Earnings Conference Call
A conference call is scheduled for today at
About
NCR is headquartered in
Web site: www.ncr.com
Twitter:
@NCRCorporation
Note to Investors - This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as “seek,” “potential,” “expect,” “strive,” “continue,” “continuously,” “accelerate,” “anticipate,” “outlook,” “intend,” “plan,” “target,” “believe,” “estimate,” “forecast,” “pursue” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could”. They include statements about NCR's ongoing transformation to a greater mix of higher-margin software revenue, statements about its expectations for its branch transformation solutions and its performance in key emerging markets, statements as to NCR's anticipated or expected results and financial performance, including its outlook for the fourth quarter of 2013 and the 2013 fiscal year (including in the sections entitled “Third Quarter 2013 Business Highlights” and “2013 Outlook”) and its expectations for revenue and growth across its core verticals; projections of revenue, profit growth and other financial items; discussion of strategic initiatives and related actions; comments about future market or industry performance or behaviors, including how NCR's products and services may be used and the benefits they might create or provide for its customers; and beliefs, expectations, intentions, and strategies, among other things. Forward-looking statements are based on management's current beliefs, expectations and assumptions, and involve a number of known and unknown risks and uncertainties, many of which are out of NCR's control.
Forward-looking statements are not guarantees of future performance, and
there are a number of factors, risks and uncertainties that could cause
actual outcomes and results to differ materially from the results
contemplated by such forward-looking statements. In addition to the
factors discussed in this release, these other factors, risks and
uncertainties include those relating to: domestic and global economic
and credit conditions, including the ongoing sovereign debt conditions
in
Reconciliation of Diluted Earnings Per Share (EPS) from Continuing Operations (attributable to NCR) (GAAP) to Non-GAAP Measures
Q3 | Q3 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Actual | Actual | Guidance | Actual | |||||||||||||
Diluted EPS from Continuing Operations (attributable to NCR) (GAAP) | $ | 0.58 | $ | 0.53 | $2.08 - $2.18 | $ | 2.90 | |||||||||
Pension expense (benefit) ** | 0.02 | 0.04 | 0.08 | (0.72 | ) | |||||||||||
Acquisition-related costs | 0.06 | 0.02 | 0.20 | 0.10 | ||||||||||||
Acquisition-related amortization of intangibles | 0.09 | 0.04 | 0.27 | 0.15 | ||||||||||||
Acquisition-related purchase price adjustments | 0.01 | — | 0.06 | — | ||||||||||||
OFAC and FCPA Investigations * | — | — | 0.01 | 0.01 | ||||||||||||
Impairment charge and related valuation allowance | — | 0.01 | — |
|
0.05 | |||||||||||
Diluted EPS from Continuing Operations (attributable to NCR) (non-GAAP) (2) | $ | 0.76 | $ | 0.64 | $2.70 - $2.80 | $ | 2.49 |
Reconciliation of Income from Operations (GAAP) to Non-GAAP Measure (in millions)
Q3 | Q3 | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Q4 2013 | Q4 2012 | ||||||||||||||||||
Actual | Actual | Guidance | Actual | Guidance | Actual | ||||||||||||||||||
Income from Operations (GAAP) | $ | 145 | $ | 129 | $546 - $566 | $ | 748 | $177 - $197 | $ | 411 | |||||||||||||
Pension expense (benefit) ** | 5 | 10 | 26 | (224 | ) | 5 | (254 | ) | |||||||||||||||
Acquisition-related costs | 14 | 4 | 46 | 23 | 2 | 11 | |||||||||||||||||
Acquisition-related amortization of intangibles | 17 | 10 | 65 | 38 | 17 | 9 | |||||||||||||||||
Acquisition-related purchase price adjustments | 3 | — | 15 | — | 3 | — | |||||||||||||||||
OFAC and FCPA Investigations * | 1 | — | 2 | 4 | — | 4 | |||||||||||||||||
Non-pension Operating Income (non-GAAP) (2) | $ | 185 | $ | 153 | $700 - $720 | $ | 589 | $204 - $224 | $ | 181 |
* Amounts shown reflect legal expenses only. Q3 2012 Actual and 2012
Actual amounts do not include approximately
** Amounts in 2013 and Q4 2013 income from operations guidance exclude the impact of the actuarial mark to market adjustments that will be determined in the fourth quarter of 2013, whereas amounts in 2012 and Q4 2012 actual income from operations include the actuarial mark to market adjustments for such periods
Free Cash Flow
For the Periods Ended September 30 | ||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Net cash provided by (used in) operating activities (GAAP) | $ | 27 | $ | (400 | ) | $ | 16 | $ | (280 | ) | ||||||||||
Less expenditures for: | ||||||||||||||||||||
Property, plant and equipment | (36 | ) | (22 | ) | (80 | ) | (53 | ) | ||||||||||||
Capitalized software | (30 | ) | (21 | ) | (75 | ) | (58 | ) | ||||||||||||
Total capital expenditures, net | (66 | ) | (43 | ) | (155 | ) | (111 | ) | ||||||||||||
Net cash used in operating activities from discontinued operations | (27 | ) | (41 | ) | (51 | ) | (85 | ) | ||||||||||||
Free cash used (non-GAAP)(3) | (66 | ) | (484 | ) | (190 | ) | (476 | ) | ||||||||||||
Add Pension Settlements and Discretionary Pension Contributions | — | 500 | 80 | 500 | ||||||||||||||||
Adjusted free cash (used) flow (non-GAAP)(3) | $ | (66 | ) | $ | 16 | $ | (110 | ) | $ | 24 |
Constant Currency
2012 | Q3 2013 | |||||||
Actual | Actual | |||||||
Revenue growth % (GAAP) | 8 | % | 5 | % | ||||
Unfavorable foreign currency fluctuation impact | 3 | % | 2 | % | ||||
Constant currency revenue growth % (non-GAAP) (4) | 11 | % | 7 | % |
(1) While NCR reports its results in accordance with Generally Accepted
Accounting Principles in
(2) The segment results included in this release and Schedule B hereto and the non-GAAP income from operations (i.e. non-pension operating income) and non-GAAP earnings per share discussed in this earnings release exclude the impact of pension expense and certain special items. Due to the significant change in its pension expense from year to year and the non-operational nature of pension expense and these special items, including amortization of acquisition related intangibles, NCR's management uses non-pension operating income and non-GAAP earnings per share to evaluate year-over-year operating performance. NCR may, in addition, segregate special items from its GAAP results from time to time to reflect the ongoing earnings per share performance of the Company. NCR also uses non-pension operating income and non-GAAP earnings per share to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR determines non-pension operating income based on its GAAP income (loss) from operations excluding pension expense and special items. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP.
(3) Free cash flow does not have a uniform definition under GAAP and, therefore, NCR's definition may differ from other companies' definitions of this measure. NCR defines free cash flow as net cash provided by/used in operating activities and cash flow provided by/used in discontinued operations less capital expenditures for property, plant and equipment, and additions to capitalized software. NCR's management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for, among other things, investment in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repayment of the Company's debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered a substitute for, or superior to, cash flows from operating activities determined in accordance with GAAP.
(4) NCR's results with respect to year-over-year revenue growth on a constant currency basis exclude the effects of foreign currency translation. Due to the variability of foreign exchange rates from year to year, NCR's management uses revenue on a constant currency basis to evaluate year-over-year operating performance. Revenue growth on a constant currency basis is calculated by translating prior-year revenue at current year monthly average exchange rates. Similarly, NCR's guidance with respect to year-over-year revenue growth on a constant currency basis excludes the potential effects of foreign currency translation due to the variability and unpredictability of future exchange rates.
Schedule A | ||||||||||||||||||
NCR CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||
For the Periods Ended September 30 | ||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Revenue | ||||||||||||||||||
Products | $ | 701 | $ | 712 | $ | 2,111 | $ | 1,988 | ||||||||||
Services | 807 | 723 | 2,342 | 2,100 | ||||||||||||||
Total Revenue | 1,508 | 1,435 | 4,453 | 4,088 | ||||||||||||||
Cost of products | 524 | 534 | 1,577 | 1,511 | ||||||||||||||
Cost of services | 569 | 519 | 1,666 | 1,506 | ||||||||||||||
Total gross margin | 415 | 382 | 1,210 | 1,071 | ||||||||||||||
% of Revenue | 27.5 | % | 26.6 | % | 27.2 | % | 26.2 | % | ||||||||||
Selling, general and administrative expenses | 217 | 206 | 678 | 592 | ||||||||||||||
Research and development expenses | 53 | 47 | 163 | 142 | ||||||||||||||
Income from operations | 145 | 129 | 369 | 337 | ||||||||||||||
% of Revenue | 9.6 | % | 9.0 | % | 8.3 | % | 8.2 | % | ||||||||||
Interest expense | (23 | ) | (7 | ) | (70 | ) | (24 | ) | ||||||||||
Other (expense), net | (3 | ) | — | (4 | ) | (7 | ) | |||||||||||
Total other (expense), net | (26 | ) | (7 | ) | (74 | ) | (31 | ) | ||||||||||
Income before income taxes and discontinued operations | 119 | 122 | 295 | 306 | ||||||||||||||
% of Revenue | 7.9 | % | 8.5 | % | 6.6 | % | 7.5 | % | ||||||||||
Income tax expense | 19 | 33 | 44 | 68 | ||||||||||||||
Income from continuing operations | 100 | 89 | 251 | 238 | ||||||||||||||
(Loss) income from discontinued operations, net of tax | — | (1 | ) | (1 | ) | 3 | ||||||||||||
Net Income | 100 | 88 | 250 | 241 | ||||||||||||||
Net income attributable to noncontrolling interests | 2 | 1 | 5 | 2 | ||||||||||||||
Net income attributable to NCR | $ | 98 | $ | 87 | $ | 245 | $ | 239 | ||||||||||
Amounts attributable to NCR common stockholders: | ||||||||||||||||||
Income from continuing operations | $ | 98 | $ | 88 | $ | 246 | $ | 236 | ||||||||||
(Loss) income from discontinued operations, net of tax | — | (1 | ) | (1 | ) | 3 | ||||||||||||
Net income | $ | 98 | $ | 87 | $ | 245 | $ | 239 | ||||||||||
Net income per share attributable to NCR common stockholders: | ||||||||||||||||||
Net income per common share from continuing operations | ||||||||||||||||||
Basic | $ | 0.59 | $ | 0.55 | $ | 1.49 | $ | 1.49 | ||||||||||
Diluted | $ | 0.58 | $ | 0.53 | $ | 1.46 | $ | 1.44 | ||||||||||
Net income per common share | ||||||||||||||||||
Basic | $ | 0.59 | $ | 0.55 | $ | 1.48 | $ | 1.50 | ||||||||||
Diluted | $ | 0.58 | $ | 0.53 | $ | 1.45 | $ | 1.46 | ||||||||||
Weighted average common shares outstanding | ||||||||||||||||||
Basic | 166.2 | 159.6 | 165.1 | 158.9 | ||||||||||||||
Diluted | 170.0 | 164.8 | 168.8 | 164.0 | ||||||||||||||
Schedule B | |||||||||||||||||||||||||||||
NCR CORPORATION | |||||||||||||||||||||||||||||
CONSOLIDATED REVENUE AND OPERATING INCOME SUMMARY | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
For the Periods Ended September 30 | |||||||||||||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||||||||||||
% | % | ||||||||||||||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||||||||
Revenue by segment | |||||||||||||||||||||||||||||
Financial Services | $ | 767 | $ | 799 | (4 | )% | $ | 2,263 | $ | 2,280 | (1 | )% | |||||||||||||||||
Retail Solutions | 494 | 421 | 17 | % | 1,498 | 1,177 | 27 | % | |||||||||||||||||||||
Hospitality | 161 | 129 | 25 | % | 450 | 372 | 21 | % | |||||||||||||||||||||
Emerging Industries | 86 | 86 | — | % | 242 | 259 | (7 | )% | |||||||||||||||||||||
Total Revenue | $ | 1,508 | $ | 1,435 | 5 | % | $ | 4,453 | $ | 4,088 | 9 | % | |||||||||||||||||
Operating income by segment | |||||||||||||||||||||||||||||
Financial Services | $ | 93 | $ | 84 | $ | 245 | $ | 227 | |||||||||||||||||||||
% of Revenue | 12.1 | % | 10.5 | % | 10.8 | % | 10.0 | % | |||||||||||||||||||||
Retail Solutions | 50 | 28 | 140 | 58 | |||||||||||||||||||||||||
% of Revenue | 10.1 | % | 6.7 | % | 9.3 | % | 4.9 | % | |||||||||||||||||||||
Hospitality | 26 | 23 | 74 | 63 | |||||||||||||||||||||||||
% of Revenue | 16.1 | % | 17.8 | % | 16.4 | % | 16.9 | % | |||||||||||||||||||||
Emerging Industries | 16 | 18 | 37 | 60 | |||||||||||||||||||||||||
% of Revenue | 18.6 | % | 20.9 | % | 15.3 | % | 23.2 | % | |||||||||||||||||||||
Subtotal-segment operating income | $ | 185 | $ | 153 | $ | 496 | $ | 408 | |||||||||||||||||||||
% of Revenue | 12.3 | % | 10.7 | % | 11.1 | % | 10.0 | % | |||||||||||||||||||||
Pension Expense | 5 | 10 | 21 | 30 | |||||||||||||||||||||||||
Other adjustments (1) | 35 | 14 | 106 | 41 | |||||||||||||||||||||||||
Total income from operations | $ | 145 | $ | 129 | $ | 369 | $ | 337 |
(1) | Other adjustments for the three months ended September 30, 2013 include $14 million of acquisition related costs, $17 million of acquisition-related amortization of intangible assets, $3 million of acquisition-related purchase price adjustments and $1 million of legal costs related to previously disclosed OFAC and FCPA investigations and for the three months ended September 30, 2012 include $4 million of acquisition-related costs and $10 million of acquisition-related amortization of intangible assets. Other adjustments for the nine months ended September 30, 2013 include $44 million of acquisition-related costs, $48 million of acquisition-related amortization of intangible assets, $12 million of acquisition-related purchase price adjustments and $2 million of legal costs related to the previously disclosed OFAC and FCPA investigations and for the nine months ended September 30, 2012 include $12 million of acquisition-related costs and $29 million of acquisition-related amortization of intangible assets. | |
Schedule C | |||||||||||||||
NCR CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Unaudited) | |||||||||||||||
(in millions, except per share amounts) | |||||||||||||||
September 30, |
|
December 31, | |||||||||||||
2013 |
June 30, 2013 |
2012 | |||||||||||||
Assets | |||||||||||||||
Current assets | |||||||||||||||
Cash and cash equivalents | $ | 460 | $ | 460 | $ | 1,069 | |||||||||
Accounts receivable, net | 1,349 | 1,266 | 1,086 | ||||||||||||
Inventories, net | 842 | 825 | 797 | ||||||||||||
Other current assets | 591 | 525 | 454 | ||||||||||||
Total current assets | 3,242 | 3,076 | 3,406 | ||||||||||||
Property, plant and equipment, net | 338 | 327 | 308 | ||||||||||||
Goodwill | 1,472 | 1,455 | 1,003 | ||||||||||||
Intangibles, net | 474 | 490 | 304 | ||||||||||||
Prepaid pension cost | 424 | 394 | 368 | ||||||||||||
Deferred income taxes | 492 | 534 | 532 | ||||||||||||
Other assets | 436 | 428 | 448 | ||||||||||||
Total assets | $ | 6,878 | $ | 6,704 | $ | 6,369 | |||||||||
Liabilities and stockholders’ equity | |||||||||||||||
Current liabilities | |||||||||||||||
Short-term borrowings | $ | 15 | $ | 85 | $ | 72 | |||||||||
Accounts payable | 584 | 582 | 611 | ||||||||||||
Payroll and benefits liabilities | 209 | 176 | 186 | ||||||||||||
Deferred service revenue and customer deposits | 508 | 543 | 455 | ||||||||||||
Other current liabilities | 437 | 452 | 418 | ||||||||||||
Total current liabilities | 1,753 | 1,838 | 1,742 | ||||||||||||
Long-term debt | 2,212 | 2,079 | 1,891 | ||||||||||||
Pension and indemnity plan liabilities | 740 | 731 | 805 | ||||||||||||
Postretirement and postemployment benefits liabilities | 202 | 191 | 246 | ||||||||||||
Income tax accruals | 143 | 139 | 138 | ||||||||||||
Environmental liabilities | 118 | 137 | 171 | ||||||||||||
Other liabilities | 118 | 100 | 79 | ||||||||||||
Total liabilities | 5,286 | 5,215 | 5,072 | ||||||||||||
Redeemable noncontrolling interests | 17 | 16 | 15 | ||||||||||||
Stockholders' equity | |||||||||||||||
NCR stockholders' equity: | |||||||||||||||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of September 30, 2013, June 30, 2013, and December 31, 2012, respectively |
— | — | — | ||||||||||||
Common stock: par value $0.01 per share, 500.0 shares authorized, 166.3, 165.9 and 162.8 shares issued and outstanding as of September 30, 2013, June 30, 2013 and December 31, 2012 respectively |
2 | 2 | 2 | ||||||||||||
Paid-in capital | 434 | 419 | 358 | ||||||||||||
Retained earnings | 1,334 | 1,236 | 1,089 | ||||||||||||
Accumulated other comprehensive loss | (233 | ) | (222 | ) | (197 | ) | |||||||||
Total NCR stockholders' equity | 1,537 | 1,435 | 1,252 | ||||||||||||
Noncontrolling interests in subsidiaries | 38 | 38 | 30 | ||||||||||||
Total stockholders' equity | 1,575 | 1,473 | 1,282 | ||||||||||||
Total liabilities and stockholders' equity | $ | 6,878 | $ | 6,704 | $ | 6,369 | |||||||||
Schedule D | |||||||||||||||||||||
NCR CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
For the Periods Ended September 30 | |||||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net income | $ | 100 | $ | 88 | $ | 250 | $ | 241 | |||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||||||||
Loss (income) from discontinued operations | — | 1 | 1 | (3 | ) | ||||||||||||||||
Depreciation and amortization | 52 | 42 | 149 | 123 | |||||||||||||||||
Stock-based compensation expense | 12 | 14 | 34 | 36 | |||||||||||||||||
Deferred income taxes | 2 | 4 | (8 | ) | 27 | ||||||||||||||||
Gain on sale of property, plant and equipment and other assets | (9 | ) | (1 | ) | (14 | ) | (8 | ) | |||||||||||||
Impairment of long-lived and other assets | — | — | — | 7 | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Receivables | (85 | ) | (47 | ) | (152 | ) | (94 | ) | |||||||||||||
Inventories | (16 | ) | (34 | ) | (41 | ) | (74 | ) | |||||||||||||
Current payables and accrued expenses | 10 | 68 | (24 | ) | 64 | ||||||||||||||||
Deferred service revenue and customer deposits | (35 | ) | 6 | 21 | 56 | ||||||||||||||||
Pension and indemnity plan | (20 | ) | (533 | ) | (152 | ) | (587 | ) | |||||||||||||
Other assets and liabilities | 16 | (8 | ) | (48 | ) | (68 | ) | ||||||||||||||
Net cash provided by (used in) operating activities | 27 | (400 | ) | 16 | (280 | ) | |||||||||||||||
Investing activities | |||||||||||||||||||||
Expenditures for property, plant and equipment | (36 | ) | (22 | ) | (80 | ) | (53 | ) | |||||||||||||
Proceeds from sales of property, plant and equipment | 8 | — | 10 | 8 | |||||||||||||||||
Additions to capitalized software | (30 | ) | (21 | ) | (75 | ) | (58 | ) | |||||||||||||
Business acquisition, net | — | (33 | ) | (696 | ) | (58 | ) | ||||||||||||||
Other investing activities, net | (1 | ) | (4 | ) | 5 | 4 | |||||||||||||||
Net cash used in investing activities | (59 | ) | (80 | ) | (836 | ) | (157 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Tax withholding payments on behalf of employees | (1 | ) | (3 | ) | (28 | ) | (12 | ) | |||||||||||||
Short term borrowings, net | (7 | ) | (2 | ) | (1 | ) | — | ||||||||||||||
Payments on term credit facility | — | — | (35 | ) | — | ||||||||||||||||
Borrowings on term credit facility | 300 | 150 | 300 | 150 | |||||||||||||||||
Payments on revolving credit facility | (350 | ) | (555 | ) | (845 | ) | (860 | ) | |||||||||||||
Borrowings on revolving credit facility | 120 | 530 | 845 | 720 | |||||||||||||||||
Borrowings from bond offering | — | 600 | — | 600 | |||||||||||||||||
Debt issuance costs | (9 | ) | (11 | ) | (12 | ) | (11 | ) | |||||||||||||
Proceeds from employee stock plans | 7 | 10 | 52 | 23 | |||||||||||||||||
Dividend distribution to minority shareholder | — | (1 | ) | — | (1 | ) | |||||||||||||||
Net cash provided by financing activities | 60 | 718 | 276 | 609 | |||||||||||||||||
Cash flows from discontinued operations | |||||||||||||||||||||
Net cash used in operating activities | (27 | ) | (41 | ) | (51 | ) | (85 | ) | |||||||||||||
Net cash provided by investing activities | — | — | — | 98 | |||||||||||||||||
Net cash (used in) provided by discontinued operations | (27 | ) | (41 | ) | (51 | ) | 13 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1 | ) | 7 | (14 | ) | (2 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 204 | (609 | ) | 183 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 460 | 377 | 1,069 | 398 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 460 | $ | 581 | $ | 460 | $ | 581 |
Source:
News Media Contact
NCR Corporation
Lou Casale,
212-589-8415
lou.casale@ncr.com
or
Investor
Contact
NCR Corporation
Tracy Krumme, 212-589-8569
tracy.krumme@ncr.com