"Our fourth quarter and full year results were in-line with our revised
expectations," said Chairman and CEO
Q4 Financial Summary
Fourth Quarter | |||||||||||
$ in millions, except per share amounts | 2014 | 2013 | Change | ||||||||
Revenue | $1,768 | $1,670 | 6% * | ||||||||
Income from operations ** | $35 | $297 | (88)% | ||||||||
Non-pension operating income (NPOI) | $251 | $221 | 14% | ||||||||
Diluted earnings per share *** | $0.22 | $1.21 | (82)% | ||||||||
Non-GAAP diluted earnings per share | $0.88 | $0.83 | 6% |
* Revenue growth of 11% on a constant currency basis.
** Income from operations in the fourth quarter of 2014 includes a
*** Diluted earnings per share in the fourth quarter of 2014 includes
In this release, we use the non-GAAP measures non-pension operating income (NPOI), non-GAAP diluted earnings per share, free cash flow and revenue growth on a constant currency basis. These non-GAAP measures are described and reconciled to their most directly comparable GAAP measures elsewhere in this release.
Q4 Supplemental Revenue Information
Fourth Quarter | |||||||||||||
$ in millions | 2014 | 2013 | Change | ||||||||||
Cloud * | $ | 129 | $ | 39 | 231 | % | |||||||
Software License/Software Maintenance | 189 | 171 | 11 | % | |||||||||
Professional Services | 159 | 152 | 5 | % | |||||||||
Total Software-Related Revenue | 477 | 362 | 32 | % | |||||||||
Hardware | 714 | 715 | — | % | |||||||||
Other Services | 577 | 593 | (3 | %) | |||||||||
Total Revenue | $ | 1,768 | $ | 1,670 | 6 | % |
* Referred to as Software-as-a-Service or SaaS in prior Company earnings releases.
Software-related revenue increased 32% in the fourth quarter, including 231% growth in cloud revenues. Excluding the contribution of Digital Insight, software-related revenue increased 8% and cloud revenue increased 15%.
Q4 Operating Segment Results
Fourth Quarter | ||||||||||||
$ in millions | 2014 | 2013 | % Change |
% Change |
||||||||
Revenue by segment | ||||||||||||
Financial Services | $ | 968 | $ | 852 | 14 | % | 20 | % | ||||
Retail Solutions | 526 | 536 | (2 | )% | 2 | % | ||||||
Hospitality | 172 | 176 | (2 | )% | (1 | )% | ||||||
Emerging Industries | 102 | 106 | (4 | )% | (1 | )% | ||||||
Total Revenue | $ | 1,768 | $ | 1,670 | 6 | % | 11 | % | ||||
Operating income by segment | ||||||||||||
Financial Services | $ | 159 | $ | 111 | ||||||||
% of Financial Services Revenue | 16.4 | % | 13.0 | % | ||||||||
Retail Solutions | 47 | 65 | ||||||||||
% of Retail Solutions Revenue | 8.9 | % | 12.1 | % | ||||||||
Hospitality | 29 | 26 | ||||||||||
% of Hospitality Revenue | 16.9 | % | 14.8 | % | ||||||||
Emerging Industries | 16 | 19 | ||||||||||
% of Emerging Industries Revenue | 15.7 | % | 17.9 | % | ||||||||
Segment operating income | $ | 251 | $ | 221 | ||||||||
% of Total Revenue | 14.2 | % | 13.2 | % |
Revenue increased 6% compared to the prior year led by solid growth in
Financial Services where branch transformation revenues continued to
increase and Digital Insight contributed
Segment operating income increased 14% compared to the prior year. The increase was led by Financial Services, where growth was driven by a higher mix of software-related revenue. Retail Solutions operating income was as expected, and improved as a percentage of Retail Solutions revenue compared to Q3 2014. Hospitality operating income was higher than the prior year due to a favorable mix of revenue. Emerging Industries operating income was negatively impacted by costs associated with managed services contracts and continued investment in Small Business.
Free Cash Flow
Fourth Quarter | Full Year | |||||||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Net cash provided by operating activities | $ | 289 | $ | 265 | $ | 524 | $ | 281 | ||||||||
Total capital expenditures | (61 | ) | (71 | ) | (258 | ) | (226 | ) | ||||||||
Net cash provided by (used in) discontinued operations | (29 | ) | (1 | ) | (1 | ) | (52 | ) | ||||||||
Pension discretionary contributions and settlements | 30 | 124 | 48 | 204 | ||||||||||||
Free cash flow | $ | 229 | $ | 317 | $ | 313 | $ | 207 |
Free cash flow decreased in the fourth quarter of 2014 as compared to the fourth quarter of 2013 mainly due to changes in working capital and the timing of cash outflows related to discontinued operations. Free cash flow improved in quarterly linearity in 2014 as compared to 2013 and increased mainly due to working capital improvements and recoveries related to the Fox River environmental matter.
2015 Outlook
The 2015 revenue guidance is expected to be roughly flat on an
as-reported basis, and up 4% to 6% on a constant currency basis. We
expect revenue growth to be driven by higher value solutions in
Financial Services, Retail Solutions and Hospitality. NPOI is expected
to be between
$ in millions, except per share amounts |
2015 Guidance |
2014 Actual |
|||||
Revenue | $6,525 - $6,675 | (1) | $6,591 | ||||
Year-over-year revenue growth | (1%) to 1% | (1) | 8% | ||||
Constant currency revenue growth | 4% to 6% | 10% | |||||
Income from operations (GAAP) | $625 - $690 | (2) | $353 | (2) | |||
Non-pension operating income (NPOI) | $830 - $870 | $820 | |||||
Diluted earnings per share (GAAP) | $1.80 - $2.10 | (2) | $1.06 | (2) | |||
Non-GAAP Diluted EPS | $2.60 - $2.80 | (3) | $2.74 | ||||
Net cash provided by operating activities | $595 - $625 | $524 | |||||
Free cash flow | $325 - $375 | $313 |
(1) Includes 5% of expected unfavorable foreign currency fluctuations.
(2) For 2014, actuarial mark-to-market pension adjustment
included; for 2015, actuarial mark-to-market pension adjustments to be
determined in Q4 2015 excluded. The impact of the transfer of the
(3) NCR expects approximately
Related to the ongoing restructuring plan, NCR expects to incur a
pre-tax charge of approximately
Q1 2015 Outlook
For the first quarter of 2015, the Company expects non-pension operating
income (NPOI) to be in the range of
2014 Fourth Quarter Earnings Conference Call
A conference call is scheduled for today at
More information on NCR’s Q4 2014 earnings, including additional financial information and analysis, is available on NCR’s Investor Relations website at http://investor.ncr.com/.
About
NCR is headquartered in
Web site: www.ncr.com
Twitter:
@NCRCorporation
Note to Investors This release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements use words such as
“expect,” “anticipate,” “outlook,” “intend,” “believe,” “will,”
“should,” “would,” “could” and words of similar meaning. Statements that
describe or relate to NCR’s future plans, goals, intentions, strategies
or financial outlook, and statements that do not relate to historical or
current fact, are examples of forward-looking statements. The
forward-looking statements in this release include statements about
expected trends, and market and economic conditions affecting NCR and
its business; the reinvention of NCR's business and expectations for
NCR's growth; ongoing success addressing legacy issues and improved
execution; NCR's ongoing restructuring plan and its costs, expected
benefits and results; the impact of actions related to NCR's pension
plans; and NCR's 2015 financial outlook (including in the sections
entitled “2015 Outlook” and “Q1 2015 Outlook”). Forward-looking
statements are based on our current beliefs, expectations and
assumptions, which may not prove to be accurate, 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 important factors that could
cause actual outcomes and results to differ materially from the results
contemplated by such forward-looking statements, including those factors
relating to: domestic and global economic and credit conditions
including, in particular, market conditions in the retail industry; the
impact of our indebtedness and its terms on our financial and operating
activities; our ability to successfully introduce new solutions and
compete in the information technology industry; the transformation of
our business model and our ability to sell higher-margin software and
services; our ability to improve execution in our sales and services
organizations; defects or errors in our products; manufacturing
disruptions; the historical seasonality of our sales; foreign currency
fluctuations; the availability and success of acquisitions, divestitures
and alliances, including the acquisition of Digital Insight; our pension
strategy and underfunded pension obligation; the success of our ongoing
restructuring plan; tax rates; compliance with data privacy and
protection requirements; reliance on third party suppliers; development
and protection of intellectual property; workforce turnover and the
ability to attract and retain skilled employees; environmental exposures
from our historical and ongoing manufacturing activities; and
uncertainties with regard to regulations, lawsuits, claims and other
matters across various jurisdictions. Additional information concerning
these and other factors can be found in the Company's filings with the
Non-GAAP Financial Measures While NCR reports its results in
accordance with Generally Accepted Accounting Principles in
Non-Pension Operating Income and Non-GAAP Diluted Earnings Per Share. NCR’s non-pension operating income and non-GAAP diluted earnings per share are determined by excluding pension expense and special items, including amortization of acquisition related intangibles, from NCR’s GAAP income (loss) from operations. 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, NCR's management uses non-pension operating income and non-GAAP diluted earnings per share to evaluate year-over-year operating performance, to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with NCR's past reports of financial results.
Free Cash Flow. 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, additions to capitalized software, discretionary pension contributions and settlements. 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. 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.
Revenue Growth on a Constant Currency Basis. NCR’s period-over-period revenue growth on a constant currency basis excludes the effects of foreign currency translation. Due to the variability of foreign exchange rates from period to period, NCR’s management uses revenue on a constant currency basis to evaluate period-over-period operating performance. Revenue growth on a constant currency basis is calculated by translating prior period revenue at current period monthly average exchange rates.
NCR's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their most directly comparable GAAP measures in the tables below or, in the case of free cash flow, in the body of this release.
Reconciliation of Diluted Earnings Per Share (GAAP) to Non-GAAP Diluted Earnings Per Share (non-GAAP)
Q4 2014 |
Q4 2013 |
2015 Guidance |
2014 |
||||||||||||||
Diluted EPS (GAAP) | $ | 0.22 | $ | 1.21 | $1.80 - $2.10 | $ | 1.06 | ||||||||||
Pension (benefit) expense | 0.43 | (0.41 | ) | 0.01 | 0.38 | ||||||||||||
Restructuring plan | 0.10 | — | 0.18 - 0.28 | 0.68 | |||||||||||||
Acquisition-related costs | 0.01 | 0.03 | 0.04 | 0.12 | |||||||||||||
Acquisition-related amortization of intangibles | 0.11 | 0.07 | 0.47 | 0.47 | |||||||||||||
Acquisition-related purchase price adjustments | — | 0.01 | — | 0.02 | |||||||||||||
OFAC and FCPA Investigations (1) | 0.01 | 0.01 | — | 0.01 | |||||||||||||
Japan valuation reserve release | — | (0.09 | ) | — | — | ||||||||||||
Non- GAAP Diluted EPS | $ | 0.88 | $ | 0.83 | $2.60 - $2.80 | $ | 2.74 | ||||||||||
Reconciliation of Income from Operations (GAAP) to Non-pension Operating Income (non-GAAP)
$ in millions |
Q4 2014 |
Q4 2013 |
2015 |
2014 |
Q1 2015 |
Q1 2014 |
||||||||||||||||
Income from Operations (GAAP) | $ | 35 | $ | 297 | $625 - $690 | $ | 353 | $90 - $100 | $ | 108 | ||||||||||||
Pension (benefit) expense | 150 | (99 | ) | 4 | 152 | 1 | (1 | ) | ||||||||||||||
Restructuring plan | 33 | — | 39 - 64 | 160 | 15 | — | ||||||||||||||||
Acquisition-related costs | 2 | 2 | 10 | 27 | 2 | 14 | ||||||||||||||||
Acquisition-related amortization of intangibles | 30 | 17 | 127 | 119 | 32 | 30 | ||||||||||||||||
Acquisition-related purchase price adjustments | — | 3 | — | 6 | — | 3 | ||||||||||||||||
OFAC and FCPA Investigations (1) | 1 | 1 | — | 3 | — | 1 | ||||||||||||||||
Non-pension Operating Income (non-GAAP) | $ | 251 | $ | 221 | $830 - $870 | $ | 820 | $140 - $150 | $ | 155 | ||||||||||||
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)
$ in millions | 2015 Guidance |
Net cash provided by operating activities | $595 - $625 |
Total capital expenditures | (215) - (235) |
Net cash provided by (used in) discontinued operations | (35) |
Pension discretionary contributions and settlements | — |
Free cash flow | $325 - $375 |
Reconciliation of Revenue Growth (GAAP) to Revenue Growth on a Constant Currency Basis (non-GAAP)
Revenue Growth % |
Favorable |
Constant Currency |
||||||||||||
Financial Services | 14 | % | (6 | )% | 20 | % | ||||||||
Retail Solutions | (2 | )% | (4 | )% | 2 | % | ||||||||
Hospitality | (2 | )% | (1 | )% | (1 | )% | ||||||||
Emerging Industries | (4 | )% | (3 | )% | (1 | )% | ||||||||
Total Revenue | 6 | % | (5 | )% | 11 | % |
(1) Estimated expenses for 2015 will be affected by, among other things, the status and progress of these matters. There can be no assurance that the Company will not be subject to fines or other remedial measures as a result of OFAC’s, the SEC’s or the DOJ’s investigations.
NCR CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Schedule A |
|||||||||||||||
For the Periods Ended December 31 | |||||||||||||||
Three Months | Twelve Months | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | |||||||||||||||
Products | $ | 815 | $ | 801 | $ | 2,892 | $ | 2,912 | |||||||
Services | 953 | 869 | 3,699 | 3,211 | |||||||||||
Total Revenue | 1,768 | 1,670 | 6,591 | 6,123 | |||||||||||
Cost of products | 599 | 575 | 2,153 | 2,152 | |||||||||||
Cost of services | 737 | 565 | 2,706 | 2,231 | |||||||||||
Total gross margin | 432 | 530 | 1,732 | 1,740 | |||||||||||
% of Revenue | 24.4 | % | 31.7 | % | 26.3 | % | 28.4 | % | |||||||
Selling, general and administrative expenses | 288 | 193 | 1,012 | 871 | |||||||||||
Research and development expenses | 77 | 40 | 263 | 203 | |||||||||||
Restructuring-related charges | 32 | — | 104 | — | |||||||||||
Income from operations | 35 | 297 | 353 | 666 | |||||||||||
% of Revenue | 2.0 | % | 17.8 | % | 5.4 | % | 10.9 | % | |||||||
Interest expense | (46 | ) | (33 | ) | (181 | ) | (103 | ) | |||||||
Other (expense) income, net | (11 | ) | (5 | ) | (35 | ) | (9 | ) | |||||||
Total other (expense), net | (57 | ) | (38 | ) | (216 | ) | (112 | ) | |||||||
(Loss) income before income taxes and discontinued operations | (22 | ) | 259 | 137 | 554 | ||||||||||
% of Revenue | (1.2 | )% | 15.5 | % | 2.1 | % | 9.0 | % | |||||||
Income tax (benefit) expense | (62 | ) | 54 | (48 | ) | 98 | |||||||||
Income from continuing operations | 40 | 205 | 185 | 456 | |||||||||||
(Loss) income from discontinued operations, net of tax | (5 | ) | (8 | ) | 10 | (9 | ) | ||||||||
Net Income | 35 | 197 | 195 | 447 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 2 | (1 | ) | 4 | 4 | ||||||||||
Net income attributable to NCR | $ | 33 | $ | 198 | $ | 191 | $ | 443 | |||||||
Amounts attributable to NCR common stockholders: | |||||||||||||||
Income from continuing operations | $ | 38 | $ | 206 | $ | 181 | $ | 452 | |||||||
(Loss) income from discontinued operations, net of tax | (5 | ) | (8 | ) | 10 | (9 | ) | ||||||||
Net income |
$ | 33 | $ | 198 | $ | 191 | $ | 443 | |||||||
Net income per share attributable to NCR common stockholders: | |||||||||||||||
Net income per common share from continuing operations | |||||||||||||||
Basic | $ | 0.23 | $ | 1.24 | $ | 1.08 | $ | 2.73 | |||||||
Diluted | $ | 0.22 | $ | 1.21 | $ | 1.06 | $ | 2.67 | |||||||
Net income per common share | |||||||||||||||
Basic | $ | 0.20 | $ | 1.19 | $ | 1.14 | $ | 2.68 | |||||||
Diluted | $ | 0.19 | $ | 1.16 | $ | 1.12 | $ | 2.62 | |||||||
Weighted average common shares outstanding | |||||||||||||||
Basic | 168.5 | 166.5 | 167.9 | 165.4 | |||||||||||
Diluted | 171.3 | 170.8 | 171.2 | 169.3 | |||||||||||
NCR CORPORATION | |||||||||||||||||||||
REVENUE AND OPERATING INCOME SUMMARY | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Schedule B |
|||||||||||||||||||||
For the Periods Ended December 31 | |||||||||||||||||||||
Three Months | Twelve Months | ||||||||||||||||||||
2014 | 2013 | % Change | 2014 | 2013 | % Change | ||||||||||||||||
Revenue by segment | |||||||||||||||||||||
Financial Services | $ | 968 | $ | 852 | 14 | % | $ | 3,561 | $ | 3,115 | 14 | % | |||||||||
Retail Solutions | 526 | 536 | (2 | )% | 2,008 | 2,034 | (1 | )% | |||||||||||||
Hospitality | 172 | 176 | (2 | )% | 659 | 626 | 5 | % | |||||||||||||
Emerging Industries | 102 | 106 | (4 | )% | 363 | 348 | 4 | % | |||||||||||||
Total Revenue | $ | 1,768 | $ | 1,670 | 6 | % | $ | 6,591 | $ | 6,123 | 8 | % | |||||||||
Operating income by segment | |||||||||||||||||||||
Financial Services | $ | 159 | $ | 111 | $ | 543 | $ | 356 | |||||||||||||
% of Revenue | 16.4 | % | 13.0 | % | 15.2 | % | 11.4 | % | |||||||||||||
Retail Solutions | 47 | 65 | 155 | 205 | |||||||||||||||||
% of Revenue | 8.9 | % | 12.1 | % | 7.7 | % | 10.1 | % | |||||||||||||
Hospitality | 29 | 26 | 91 | 100 | |||||||||||||||||
% of Revenue | 16.9 | % | 14.8 | % | 13.8 | % | 16.0 | % | |||||||||||||
Emerging Industries | 16 | 19 | 31 | 56 | |||||||||||||||||
% of Revenue | 15.7 | % | 17.9 | % | 8.5 | % | 16.1 | % | |||||||||||||
Subtotal-segment operating income | $ | 251 | $ | 221 | $ | 820 | $ | 717 | |||||||||||||
% of Revenue | 14.2 | % | 13.2 | % | 12.4 | % | 11.7 | % | |||||||||||||
Pension expense (benefit) | 150 | (99 | ) | 152 | (78 | ) | |||||||||||||||
Other adjustments (1) | 66 | 23 | 315 | 129 | |||||||||||||||||
Total income from operations | $ | 35 | $ | 297 | $ | 353 | $ | 666 |
(1)The following table presents the other adjustments for NCR:
For the periods ended December 31 | |||||||||||||||
Three months | Twelve months | ||||||||||||||
In millions | 2014 | 2013 | 2014 | 2013 | |||||||||||
Restructuring plan | $ | 33 | $ | — | $ | 160 | $ | — | |||||||
Acquisition-related amortization of intangible assets | 30 | 17 | 119 | 65 | |||||||||||
Acquisition-related costs | 2 | 2 | 27 | 46 | |||||||||||
Acquisition-related purchase price adjustments | — | 3 | 6 | 15 | |||||||||||
OFAC and FCPA investigations | 1 | 1 | 3 | 3 | |||||||||||
Total other adjustments | $ | 66 | $ | 23 | $ | 315 | $ | 129 | |||||||
NCR CORPORATION | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Unaudited) | ||||||||||||
(in millions, except per share amounts) | ||||||||||||
Schedule C |
||||||||||||
December 31, |
September 30, |
December 31, |
||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 511 | $ | 424 | $ | 528 | ||||||
Restricted cash | — | — | 1,114 | |||||||||
Accounts receivable, net | 1,404 | 1,454 | 1,339 | |||||||||
Inventories | 669 | 777 | 790 | |||||||||
Other current assets | 504 | 557 | 568 | |||||||||
Total current assets | 3,088 | 3,212 | 4,339 | |||||||||
Property, plant and equipment, net | 396 | 398 | 352 | |||||||||
Goodwill | 2,760 | 2,773 | 1,534 | |||||||||
Intangibles, net | 926 | 962 | 494 | |||||||||
Prepaid pension cost | 551 | 506 | 478 | |||||||||
Deferred income taxes | 349 | 245 | 441 | |||||||||
Other assets | 537 | 514 | 470 | |||||||||
Total assets | $ | 8,607 | $ | 8,610 | $ | 8,108 | ||||||
Liabilities and stockholders’ equity | ||||||||||||
Current liabilities | ||||||||||||
Short-term borrowings | $ | 91 | $ | 85 | $ | 34 | ||||||
Accounts payable | 712 | 705 | 670 | |||||||||
Payroll and benefits liabilities | 196 | 203 | 191 | |||||||||
Deferred service revenue and customer deposits | 494 | 529 | 525 | |||||||||
Other current liabilities | 481 | 486 | 461 | |||||||||
Total current liabilities | 1,974 | 2,008 | 1,881 | |||||||||
Long-term debt | 3,568 | 3,660 | 3,320 | |||||||||
Pension and indemnity plan liabilities | 705 | 513 | 532 | |||||||||
Postretirement and postemployment benefits liabilities | 170 | 172 | 169 | |||||||||
Income tax accruals | 181 | 189 | 189 | |||||||||
Environmental liabilities | 44 | 48 | 121 | |||||||||
Other liabilities | 67 | 76 | 99 | |||||||||
Total liabilities | 6,709 | 6,666 | 6,311 | |||||||||
Redeemable noncontrolling interests | 15 | 12 | 14 | |||||||||
Stockholders' equity | ||||||||||||
NCR stockholders' equity: | ||||||||||||
Preferred stock: par value $0.01 per share, 100.0 shares
authorized, |
— | — | — | |||||||||
Common stock: par value $0.01 per share, 500.0 shares authorized, |
2 | 2 | 2 | |||||||||
Paid-in capital | 442 | 446 | 433 | |||||||||
Retained earnings | 1,563 | 1,530 | 1,372 | |||||||||
Accumulated other comprehensive loss | (136 | ) | (60 | ) | (38 | ) | ||||||
Total NCR stockholders' equity | 1,871 | 1,918 | 1,769 | |||||||||
Noncontrolling interests in subsidiaries | 12 | 14 | 14 | |||||||||
Total stockholders' equity | 1,883 | 1,932 | 1,783 | |||||||||
Total liabilities and stockholders' equity | $ | 8,607 | $ | 8,610 | $ | 8,108 | ||||||
NCR CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Unaudited) | |||||||||||||||
(in millions) | |||||||||||||||
Schedule D |
|||||||||||||||
For the Periods Ended December 31 | |||||||||||||||
Three Months | Twelve Months | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Operating activities | |||||||||||||||
Net income | $ | 35 | $ | 197 | $ | 195 | $ | 447 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Loss from discontinued operations | 5 | 8 | (10 | ) | 9 | ||||||||||
Depreciation and amortization | 73 | 59 | 284 | 208 | |||||||||||
Stock-based compensation expense | 5 | 7 | 31 | 41 | |||||||||||
Deferred income taxes | (97 | ) | 11 | (125 | ) | 3 | |||||||||
Gain on sale of property, plant and equipment and other assets | (3 | ) | — | (5 | ) | (14 | ) | ||||||||
Impairment of long-lived and other assets | 8 | — | 16 | — | |||||||||||
Changes in assets and liabilities: | |||||||||||||||
Receivables | 47 | 16 | (30 | ) | (136 | ) | |||||||||
Inventories | 107 | 51 | 121 | 10 | |||||||||||
Current payables and accrued expenses | 2 | 45 | 35 | 21 | |||||||||||
Deferred service revenue and customer deposits | (36 | ) | 15 | (34 | ) | 36 | |||||||||
Employee benefit plans | 117 | (245 | ) | 105 | (397 | ) | |||||||||
Other assets and liabilities | 26 | 101 | (59 | ) | 53 | ||||||||||
Net cash provided by operating activities | 289 | 265 | 524 | 281 | |||||||||||
Investing activities | |||||||||||||||
Expenditures for property, plant and equipment | (30 | ) | (36 | ) | (118 | ) | (116 | ) | |||||||
Proceeds from sales of property, plant and equipment | 1 | — | 1 | 10 | |||||||||||
Additions to capitalized software | (31 | ) | (35 | ) | (140 | ) | (110 | ) | |||||||
Business acquisition, net | — | (84 | ) | (1,647 | ) | (780 | ) | ||||||||
Changes in restricted cash | — | (1,114 | ) | 1,114 | (1,114 | ) | |||||||||
Other investing activities, net | (2 | ) | — | 2 | 5 | ||||||||||
Net cash used in investing activities | (62 | ) | (1,269 | ) | (788 | ) | (2,105 | ) | |||||||
Financing activities | |||||||||||||||
Short term borrowings, net | (2 | ) | — | — | (1 | ) | |||||||||
Payments on term credit facilities | (17 | ) | — | (37 | ) | (35 | ) | ||||||||
Borrowings on term credit facilities | — | 29 | 250 | 329 | |||||||||||
Payments on revolving credit facilities | (522 | ) | (164 | ) | (1,050 | ) | (1,009 | ) | |||||||
Borrowings on revolving credit facilities | 456 | 164 | 1,146 | 1,009 | |||||||||||
Proceeds from bond offerings | — | 1,100 | — | 1,100 | |||||||||||
Debt issuance costs | (2 | ) | (24 | ) | (5 | ) | (36 | ) | |||||||
Proceeds from employee stock plans | 3 | 5 | 13 | 57 | |||||||||||
Purchase of noncontrolling interests | — | (24 | ) | — | (24 | ) | |||||||||
Tax withholding payments on behalf of employees | — | (2 | ) | (28 | ) | (30 | ) | ||||||||
Other financing activities | (2 | ) | (3 | ) | (5 | ) | (3 | ) | |||||||
Net cash (used in) provided by financing activities | (86 | ) | 1,081 | 284 | 1,357 | ||||||||||
Cash flows from discontinued operations | |||||||||||||||
Net cash provided by (used in) discontinued operations | (29 | ) | (1 | ) | (1 | ) | (52 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (25 | ) | (8 | ) | (36 | ) | (22 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 87 | 68 | (17 | ) | (541 | ) | |||||||||
Cash and cash equivalents at beginning of period | 424 | 460 | 528 | 1,069 | |||||||||||
Cash and cash equivalents at end of period | $ | 511 | $ | 528 | $ | 511 | $ | 528 |
Source:
News Media Contact
NCR Corporation
Lou Casale,
212.589.8415
lou.casale@ncr.com
or
Investor
Contact
NCR Corporation
Gavin Bell, 212.589.8468
gavin.bell@ncr.com