NCR to Transfer Certain U.S. Pension Obligations and Related Assets to
Principal Life Insurance Company
DULUTH, Ga.--(BUSINESS WIRE)--Nov. 3, 2017--
NCR
Corporation (NYSE: NCR) announced today that, in accordance with the
selection made by the fiduciary of its U.S. qualified pension plan (the
“Plan”), the Company has entered into an agreement (the “Agreement”)
with Principal
Life Insurance Company, a Principal® company. Pursuant to the
Agreement, the Plan purchased a single premium group annuity contract
from Principal Life Insurance Company in order to secure approximately
$190 million of benefits for approximately 6,000 former employees or
their related beneficiaries whose monthly pension benefit amount under
the Plan as of January 1, 2017 was $500 or less.
“This group annuity contract purchase is consistent with our overall
strategy to address our legacy pension liabilities,” said John Boudreau,
NCR Treasurer. “Because this contract was purchased with existing Plan
assets, no additional funding of the Plan was required for this
purchase.” Any impact of this purchase on NCR’s financial statements
will be included in the year-end 2017 mark-to-market adjustment. NCR
anticipates that the single premium group annuity contract will be
issued by Principal Life Insurance Company in 2018.
No action is required by affected former employees or their related
beneficiaries at this time. In December 2017, additional details will be
provided in letters and other materials that will be sent to affected
former employees or their related beneficiaries. These materials will
include instructions on how to secure these benefits.
The amount of the future monthly benefit payment for each of these
individuals under this group annuity contract will equal the amount of
such individual’s monthly benefit payable under the terms of the Plan.
Additionally, this group annuity contract provides the same rights to
future payments, such as survivor benefits, that are currently provided
under the terms of the Plan. No action is required by affected former
employees or their related beneficiaries at this time in order to
receive such benefits. The December 2017 letters will contain further
information.
This group annuity contract has no bearing on active employees, former
employees or their related beneficiaries who have not commenced monthly
benefits under the Plan as of January 1, 2017, or former employees or
their related beneficiaries whose monthly benefit amount under the Plan
as of January 1, 2017 exceeded $500.
More information is available by visiting the NCR website at: http://www.ncr.com/pension-transformation.
Participants may also access Plan information through the NCR Benefits
Service Center website at www.netbenefits.com/ncr
or by telephone at 1-800-245-9035. General information about the
Principal® companies can be found on this website: http://www.principal.com/about/index.htm.
About NCR Corporation
NCR Corporation (NYSE: NCR) is a leader in omni-channel solutions,
turning everyday interactions with businesses into exceptional
experiences. With its software, hardware, and portfolio of services, NCR
enables nearly 700 million transactions daily across the financial,
retail, hospitality, travel, telecom and technology industries. NCR
solutions run the everyday transactions that make your life easier. NCR
is headquartered in Duluth, Ga., with about 30,000 employees and does
business in 180 countries. NCR is a trademark of NCR Corporation in the
United States and other countries. NCR encourages investors to visit its
website which is updated regularly with financial and other important
information about NCR.
Website: www.ncr.com
Twitter:
@NCRCorporation
Facebook:
www.facebook.com/ncrcorp
LinkedIn:
www.linkedin.com/company/ncr-corporation
YouTube:
www.youtube.com/user/ncrcorporation
Note to Investors This release contains forward-looking
statements. Forward-looking statements use words such as “expect,”
“anticipate,” “outlook,” “intend,” “plan,” “believe,” “will,” “should,”
“would,” “could,” and words of similar meaning. Statements that describe
or relate to NCR’s plans, goals, intentions, strategies, or financial
outlook, and statements that do not relate to historical or current
fact, are examples of forward-looking statements. 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: the strength of demand for ATMs and other financial
services hardware and its effect on the results of our businesses and
reportable segments; domestic and global economic and credit conditions
including, in particular, those resulting from uncertainty in the “BRIC”
economies, economic sanctions against Russia, the determination by
Britain to exit the European Union, the potential for changes to global
or regional trade agreements or the imposition of protectionist trade
policies, and the imposition of import or export tariffs or border
adjustments; the impact of our indebtedness and its terms on our
financial and operating activities; the impact of the terms of our
strategic relationship with Blackstone and our Series A Convertible
Preferred Stock; the transformation of our business model and our
ability to sell higher-margin software and services; the possibility of
disruptions in or problems with our data center hosting facilities;
cybersecurity risks and compliance with data privacy and protection
requirements; our ability to successfully introduce new solutions and
compete in the information technology industry; our ability to improve
execution in our sales and services organizations; defects or errors in
our products; manufacturing disruptions; collectability difficulties in
subcontracting relationships in Emerging Industries; the historical
seasonality of our sales; foreign currency fluctuations; the
availability and success of acquisitions, divestitures and alliances,
including the divestiture of our Interactive Printer Solutions business;
our pension strategy and underfunded pension obligation; the success of
our restructuring plans and cost reduction initiatives; tax rates;
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 U.S. Securities and
Exchange Commission, including the Company’s most recent annual report
on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8- K. Any forward-looking statement speaks only as of the date on which
it is made. The Company does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
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Source: NCR Corporation
NCR Corporation
Investor Contact:
Michael Nelson,
678-808-6995
michael.nelson@ncr.com
or
Media
Contact:
Scott Sykes, 212-589-8428
scott.sykes@ncr.com