“Our third quarter results, as previously announced, were
disappointing," said Chairman and CEO
Q3 Financial Summary
Third Quarter | ||||||||||||||
$ in millions, except per share amounts | 2014 | 2013 | Change | |||||||||||
Revenue | $ | 1,647 | $ | 1,508 | 9% * | |||||||||
Income from operations ** | $ | 41 | $ | 145 | (72 | )% | ||||||||
Non-pension operating income (NPOI) | $ | 204 | $ | 185 | 10 | % | ||||||||
Diluted earnings per share *** | $ | — | $ | 0.58 | (100 | )% | ||||||||
Non-GAAP diluted earnings per share | $ | 0.67 | $ | 0.76 | (12 | )% | ||||||||
* Revenue growth of 10% on a constant currency basis.
** Income from operations includes
*** Diluted earnings per share 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.
Q3 Supplemental Revenue Information
Third Quarter | ||||||||||||
$ in millions | 2014 | 2013 | Change | |||||||||
Software-as-a-Service (SaaS) | $ | 125 | $ | 37 | 238 | % | ||||||
Software License/Software Maintenance | 157 | 155 | 1 | % | ||||||||
Professional Services | 148 | 130 | 14 | % | ||||||||
Total Software-Related Revenue | 430 | 322 | 34 | % | ||||||||
Hardware | 650 | 626 | 4 | % | ||||||||
Other Services | 567 | 560 | 1 | % | ||||||||
Total Revenue | $ | 1,647 | $ | 1,508 | 9 | % |
Software-related revenue increased 34% in the third quarter, including 238% growth related to SaaS. Excluding the contribution of Digital Insight, software-related revenue increased 7% and SaaS revenue increased 11%.
Q3 Operating Segment Results
Third Quarter | ||||||||||||
$ in millions | 2014 | 2013 | % Change | |||||||||
Revenue by segment | ||||||||||||
Financial Services | $ | 899 | $ | 767 | 17 | % | ||||||
Retail Solutions | 489 | 494 | (1 | )% | ||||||||
Hospitality | 168 | 161 | 4 | % | ||||||||
Emerging Industries | 91 | 86 | 6 | % | ||||||||
Total Revenue | $ | 1,647 | $ | 1,508 | 9 | % | ||||||
Operating income by segment | ||||||||||||
Financial Services | $ | 144 | $ | 93 | ||||||||
% of Financial Services Revenue | 16.0 | % | 12.1 | % | ||||||||
Retail Solutions | 24 | 50 | ||||||||||
% of Retail Solutions Revenue | 4.9 | % | 10.1 | % | ||||||||
Hospitality | 27 | 26 | ||||||||||
% of Hospitality Revenue | 16.1 | % | 16.1 | % | ||||||||
Emerging Industries | 9 | 16 | ||||||||||
% of Emerging Industries Revenue | 9.9 | % | 18.6 | % | ||||||||
Segment operating income | $ | 204 | $ | 185 | ||||||||
% of Total Revenue | 12.4 | % | 12.3 | % | ||||||||
Revenue increased 9% compared to the prior year led by strong growth in
Financial Services where branch transformation revenues continued to
increase and Digital Insight contributed
Segment operating income increased 10% 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 declined due to challenges in the retail market and lower software license revenue. Hospitality operating income increased due to the increase in revenues. Emerging Industries operating income was negatively impacted by onboarding costs associated with managed services contracts and continued investment in Small Business.
Free Cash Flow
Third Quarter | ||||||||
$ in millions | 2014 | 2013 | ||||||
Net cash provided by operating activities | $ | 124 | $ | 27 | ||||
Total capital expenditures | (58 | ) | (66 | ) | ||||
Net cash provided by (used in) discontinued operations | 66 | (27 | ) | |||||
Free cash flow | $ | 132 | $ | (66 | ) | |||
Free cash flow increased mainly due to improvements in working capital and recoveries from the Fox River environmental-related matter.
More information on NCR’s Q3 2014 earnings, including additional financial information and analysis, is available on NCR’s Investor Relations website at http://investor.ncr.com/.
2014 Outlook
As announced on
$ in millions, except per share amounts |
Current 2014 Guidance |
Prior 2014 Guidance |
2013 Actual |
||||||||||||||
Revenue | $6,575 - $6,625 | (1) | $6,750 - $6,850 | (1) | $6,123 | (1) | |||||||||||
Year-over-year revenue growth | 7% - 8% | (1) | 10% - 12% | (1) | 7% | (1) | |||||||||||
Income from operations (GAAP) | $499 - $519 | (2) | $580 - $600 | (2) | $666 | (2) | |||||||||||
Non-pension operating income (NPOI) | $810 - $830 | $900 - $920 | $717 | ||||||||||||||
Diluted earnings per share (GAAP) | $1.30 - $1.40 | (2) | $1.75 - $1.85 | (2) | $2.67 | (2) | |||||||||||
Non-GAAP Diluted EPS | $2.60 - $2.70 | $3.00 - $3.10 | $2.81 | ||||||||||||||
(1) Includes 1% of expected unfavorable foreign currency fluctuations.
(2) For 2013, includes actuarial mark-to-market pension adjustment; for 2014, excludes actuarial mark-to-market pension adjustments to be determined in Q4 2014.
NCR expects approximately
Related to the previously announced restructuring plan, NCR recorded a
charge of
Q4 2014 Outlook
For the fourth quarter of 2014, the Company expects non-pension
operating income (NPOI) to be in the range of
2014 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 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 transformation of NCR's business and expectations for
growth; the expected growth of NCR's software and SaaS revenue; NCR's
recently announced restructuring plan and its costs, expected benefits
and results; and NCR's 2014 financial outlook (including in the sections
entitled “2014 Outlook” and “Q4 2014 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; 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 recently
announced 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 corresponding GAAP measures elsewhere in this release or in the tables below.
Reconciliation of Diluted Earnings Per Share (GAAP) to Non-GAAP Diluted Earnings Per Share (non-GAAP)
Q3 2014 |
Q3 2013 |
Current 2014 |
Prior 2014 |
2013 |
|||||||||||||||||
Diluted EPS (GAAP) | $ | — | $ | 0.58 | $1.30 - $1.40 | $1.75 - $1.85 | $ | 2.67 | |||||||||||||
Pension (benefit) expense | (0.05 | ) | 0.02 | 0.03 | 0.03 | (0.34 | ) | ||||||||||||||
Restructuring plan | 0.58 | — | 0.66 | 0.61 | — | ||||||||||||||||
Acquisition-related costs | 0.02 | 0.06 | 0.11 | 0.11 | 0.21 | ||||||||||||||||
Acquisition-related amortization of intangibles | 0.12 | 0.09 | 0.47 | 0.47 | 0.29 | ||||||||||||||||
Acquisition-related purchase price adjustments | — | 0.01 | 0.02 | 0.02 | 0.06 | ||||||||||||||||
OFAC and FCPA Investigations (1) | — | — | 0.01 | 0.01 | 0.01 | ||||||||||||||||
Japan valuation reserve release | — | — | — | — | (0.09 | ) | |||||||||||||||
Non- GAAP Diluted EPS | $ | 0.67 | $ | 0.76 | $2.60 - $2.70 | $3.00 - $3.10 | $ | 2.81 | |||||||||||||
Reconciliation of Income from Operations (GAAP) to Non-pension Operating Income (non-GAAP)
$ in millions |
Q3 2014 |
Q3 2013 |
Current 2014 |
Prior 2014 |
2013 |
Q4 2014 |
Q4 2013 |
|||||||||||||||||||||||
Income from Operations (GAAP) | $ | 41 | $ | 145 | $499 - $519 | $580 - $600 | $ | 666 | $181 - $201 | $ | 297 | |||||||||||||||||||
Pension (benefit) expense | 1 | 5 | 8 | 8 | (78 | ) | 6 | (99 | ) | |||||||||||||||||||||
Restructuring plan | 127 | — | 147 | 150 | — | 20 | — | |||||||||||||||||||||||
Acquisition-related costs | 5 | 14 | 28 | 33 | 46 | 3 | 2 | |||||||||||||||||||||||
Acquisition-related amortization of intangibles | 29 | 17 | 120 | 121 | 65 | 31 | 17 | |||||||||||||||||||||||
Acquisition-related purchase price adjustments | 1 | 3 | 6 | 6 | 15 | — | 3 | |||||||||||||||||||||||
OFAC and FCPA Investigations (1) | — | 1 | 2 | 2 | 3 | — | 1 | |||||||||||||||||||||||
Non-pension Operating Income (non-GAAP) | $ | 204 | $ | 185 | $810 - $830 | $900 - $920 | $ | 717 | $241 - $261 | $ | 221 | |||||||||||||||||||
Reconciliation of Revenue Growth (GAAP) to Revenue Growth on a Constant Currency Basis (non-GAAP)
Revenue Growth % |
Favorable (unfavorable) |
Constant Currency Revenue Growth % |
|||
Total Revenue | 9% | (1)% | 10% | ||
(1) Estimated expenses for 2014 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 | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||
Schedule A |
||||||||||||||||||
For the Periods Ended September 30 | ||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenue | ||||||||||||||||||
Products | $ | 721 | $ | 701 | $ | 2,077 | $ | 2,111 | ||||||||||
Services | 926 | 807 | 2,746 | 2,342 | ||||||||||||||
Total Revenue | 1,647 | 1,508 | 4,823 | 4,453 | ||||||||||||||
Cost of products | 547 | 524 | 1,554 | 1,577 | ||||||||||||||
Cost of services | 696 | 569 | 1,969 | 1,666 | ||||||||||||||
Total gross margin | 404 | 415 | 1,300 | 1,210 | ||||||||||||||
% of Revenue | 24.5 | % | 27.5 | % | 27.0 | % | 27.2 | % | ||||||||||
Selling, general and administrative expenses | 232 | 217 | 724 | 678 | ||||||||||||||
Research and development expenses | 59 | 53 | 186 | 163 | ||||||||||||||
Restructuring-related charges | 72 | — | 72 | — | ||||||||||||||
Income from operations | 41 | 145 | 318 | 369 | ||||||||||||||
% of Revenue | 2.5 | % | 9.6 | % | 6.6 | % | 8.3 | % | ||||||||||
Interest expense | (46 | ) | (23 | ) | (135 | ) | (70 | ) | ||||||||||
Other (expense) income, net | (14 | ) | (3 | ) | (24 | ) | (4 | ) | ||||||||||
Total other (expense), net | (60 | ) | (26 | ) | (159 | ) | (74 | ) | ||||||||||
(Loss) income before income taxes and discontinued operations | (19 | ) | 119 | 159 | 295 | |||||||||||||
% of Revenue | (1.2 | )% | 7.9 | % | 3.3 | % | 6.6 | % | ||||||||||
Income tax (benefit) expense | (19 | ) | 19 | 14 | 44 | |||||||||||||
Income from continuing operations | — | 100 | 145 | 251 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | 15 | — | 15 | (1 | ) | |||||||||||||
Net Income | 15 | 100 | 160 | 250 | ||||||||||||||
Net income attributable to noncontrolling interests | — | 2 | 2 | 5 | ||||||||||||||
Net income attributable to NCR | $ | 15 | $ | 98 | $ | 158 | $ | 245 | ||||||||||
Amounts attributable to NCR common stockholders: | ||||||||||||||||||
Income from continuing operations | $ | — | $ | 98 | $ | 143 | $ | 246 | ||||||||||
Income (loss) from discontinued operations, net of tax | 15 | — | 15 | (1 | ) | |||||||||||||
Net income | $ | 15 | $ | 98 | $ | 158 | $ | 245 | ||||||||||
Net income per share attributable to NCR common stockholders: | ||||||||||||||||||
Net income per common share from continuing operations | ||||||||||||||||||
Basic | $ | — | $ | 0.59 | $ | 0.85 | $ | 1.49 | ||||||||||
Diluted | $ | — | $ | 0.58 | $ | 0.84 | $ | 1.46 | ||||||||||
Net income per common share | ||||||||||||||||||
Basic | $ | 0.09 | $ | 0.59 | $ | 0.94 | $ | 1.48 | ||||||||||
Diluted | $ | 0.09 | $ | 0.58 | $ | 0.92 | $ | 1.45 | ||||||||||
Weighted average common shares outstanding | ||||||||||||||||||
Basic | 168.2 | 166.2 | 167.7 | 165.1 | ||||||||||||||
Diluted | 171.3 | 170.0 | 171.1 | 168.8 | ||||||||||||||
NCR CORPORATION | |||||||||||||||||||||||||||
CONSOLIDATED REVENUE AND OPERATING INCOME SUMMARY | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Schedule B |
|||||||||||||||||||||||||||
For the Periods Ended September 30 | |||||||||||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||||||||||
2014 | 2013 | % Change | 2014 | 2013 | % Change | ||||||||||||||||||||||
Revenue by segment | |||||||||||||||||||||||||||
Financial Services | $ | 899 | $ | 767 | 17 | % | $ | 2,593 | $ | 2,263 | 15 | % | |||||||||||||||
Retail Solutions | 489 | 494 | (1 | )% | 1,482 | 1,498 | (1 | )% | |||||||||||||||||||
Hospitality | 168 | 161 | 4 | % | 487 | 450 | 8 | % | |||||||||||||||||||
Emerging Industries | 91 | 86 | 6 | % | 261 | 242 | 8 | % | |||||||||||||||||||
Total Revenue | $ | 1,647 | $ | 1,508 | 9 | % | $ | 4,823 | $ | 4,453 | 8 | % | |||||||||||||||
Operating income by segment | |||||||||||||||||||||||||||
Financial Services | $ | 144 | $ | 93 | $ | 384 | $ | 245 | |||||||||||||||||||
% of Revenue | 16.0 | % | 12.1 | % | 14.8 | % | 10.8 | % | |||||||||||||||||||
Retail Solutions | 24 | 50 | 108 | 140 | |||||||||||||||||||||||
% of Revenue | 4.9 | % | 10.1 | % | 7.3 | % | 9.3 | % | |||||||||||||||||||
Hospitality | 27 | 26 | 62 | 74 | |||||||||||||||||||||||
% of Revenue | 16.1 | % | 16.1 | % | 12.7 | % | 16.4 | % | |||||||||||||||||||
Emerging Industries | 9 | 16 | 15 | 37 | |||||||||||||||||||||||
% of Revenue | 9.9 | % | 18.6 | % | 5.7 | % | 15.3 | % | |||||||||||||||||||
Subtotal-segment operating income | $ | 204 | $ | 185 | $ | 569 | $ | 496 | |||||||||||||||||||
% of Revenue | 12.4 | % | 12.3 | % | 11.8 | % | 11.1 | % | |||||||||||||||||||
Pension expense | 1 | 5 | 2 | 21 | |||||||||||||||||||||||
Other adjustments (1) | 162 | 35 | 249 | 106 | |||||||||||||||||||||||
Total income from operations | $ | 41 | $ | 145 | $ | 318 | $ | 369 | |||||||||||||||||||
(1)Other adjustments for the three months ended
NCR CORPORATION | |||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
(in millions, except per share amounts) | |||||||||||||
Schedule C |
|||||||||||||
September 30, 2014 |
June 30, |
December 31, 2013 |
|||||||||||
Assets | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 424 | $ | 483 | $ | 528 | |||||||
Restricted cash | — | — | 1,114 | ||||||||||
Accounts receivable, net | 1,454 | 1,464 | 1,339 | ||||||||||
Inventories | 777 | 816 | 790 | ||||||||||
Other current assets | 557 | 627 | 568 | ||||||||||
Total current assets | 3,212 | 3,390 | 4,339 | ||||||||||
Property, plant and equipment, net | 398 | 402 | 352 | ||||||||||
Goodwill | 2,773 | 2,791 | 1,534 | ||||||||||
Intangibles, net | 962 | 994 | 494 | ||||||||||
Prepaid pension cost | 506 | 520 | 478 | ||||||||||
Deferred income taxes | 245 | 247 | 441 | ||||||||||
Other assets | 514 | 505 | 470 | ||||||||||
Total assets | $ | 8,610 | $ | 8,849 | $ | 8,108 | |||||||
Liabilities and stockholders’ equity | |||||||||||||
Current liabilities | |||||||||||||
Short-term borrowings | $ | 85 | $ | 83 | $ | 34 | |||||||
Accounts payable | 705 | 678 | 670 | ||||||||||
Payroll and benefits liabilities | 203 | 188 | 191 | ||||||||||
Deferred service revenue and customer deposits | 529 | 563 | 525 | ||||||||||
Other current liabilities | 486 | 464 | 461 | ||||||||||
Total current liabilities | 2,008 | 1,976 | 1,881 | ||||||||||
Long-term debt | 3,660 | 3,840 | 3,320 | ||||||||||
Pension and indemnity plan liabilities | 513 | 529 | 532 | ||||||||||
Postretirement and postemployment benefits liabilities | 172 | 169 | 169 | ||||||||||
Income tax accruals | 189 | 178 | 189 | ||||||||||
Environmental liabilities | 48 | 101 | 121 | ||||||||||
Other liabilities | 76 | 87 | 99 | ||||||||||
Total liabilities | 6,666 | 6,880 | 6,311 | ||||||||||
Redeemable noncontrolling interests | 12 | 15 | 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 | 446 | 438 | 433 | ||||||||||
Retained earnings | 1,530 | 1,515 | 1,372 | ||||||||||
Accumulated other comprehensive loss | (60 | ) | (14 | ) | (38 | ) | |||||||
Total NCR stockholders' equity | 1,918 | 1,941 | 1,769 | ||||||||||
Noncontrolling interests in subsidiaries | 14 | 13 | 14 | ||||||||||
Total stockholders' equity | 1,932 | 1,954 | 1,783 | ||||||||||
Total liabilities and stockholders' equity | $ | 8,610 | $ | 8,849 | $ | 8,108 | |||||||
NCR CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(in millions) | ||||||||||||||||||
Schedule D |
||||||||||||||||||
For the Periods Ended September 30 | ||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating activities | ||||||||||||||||||
Net income | $ | 15 | $ | 100 | $ | 160 | $ | 250 | ||||||||||
Adjustments to reconcile net income to net cash provided by (used |
||||||||||||||||||
Loss from discontinued operations | (15 | ) | — | (15 | ) | 1 | ||||||||||||
Depreciation and amortization | 69 | 52 | 211 | 149 | ||||||||||||||
Stock-based compensation expense | 7 | 12 | 26 | 34 | ||||||||||||||
Deferred income taxes | (38 | ) | 2 | (28 | ) | (8 | ) | |||||||||||
Gain on sale of property, plant and equipment and other assets | — | (9 | ) | (2 | ) | (14 | ) | |||||||||||
Impairment of long-lived and other assets | 8 | — | 8 | — | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||
Receivables | 11 | (85 | ) | (77 | ) | (152 | ) | |||||||||||
Inventories | 41 | (16 | ) | 14 | (41 | ) | ||||||||||||
Current payables and accrued expenses | 31 | 10 | 33 | (24 | ) | |||||||||||||
Deferred service revenue and customer deposits | (33 | ) | (35 | ) | 2 | 21 | ||||||||||||
Employee benefit plans | 47 | (20 | ) | (12 | ) | (152 | ) | |||||||||||
Other assets and liabilities | (19 | ) | 16 | (85 | ) | (48 | ) | |||||||||||
Net cash provided by operating activities | 124 | 27 | 235 | 16 | ||||||||||||||
Investing activities | ||||||||||||||||||
Expenditures for property, plant and equipment | (22 | ) | (36 | ) | (88 | ) | (80 | ) | ||||||||||
Proceeds from sales of property, plant and equipment | — | 8 | — | 10 | ||||||||||||||
Additions to capitalized software | (36 | ) | (30 | ) | (109 | ) | (75 | ) | ||||||||||
Business acquisition, net | (5 | ) | — | (1,647 | ) | (696 | ) | |||||||||||
Changes in restricted cash | — | — | 1,114 | — | ||||||||||||||
Other investing activities, net | — | (1 | ) | 4 | 5 | |||||||||||||
Net cash used in investing activities | (63 | ) | (59 | ) | (726 | ) | (836 | ) | ||||||||||
Financing activities | ||||||||||||||||||
Tax withholding payments on behalf of employees | (4 | ) | (1 | ) | (28 | ) | (28 | ) | ||||||||||
Short term borrowings, net | (7 | ) | (7 | ) | 2 | (1 | ) | |||||||||||
Payments on term credit facilities | (17 | ) | — | (20 | ) | (35 | ) | |||||||||||
Borrowings on term credit facilities | — | 300 | 250 | 300 | ||||||||||||||
Payments on revolving credit facility | (273 | ) | (350 | ) | (528 | ) | (845 | ) | ||||||||||
Borrowings on revolving credit facility | 120 | 120 | 690 | 845 | ||||||||||||||
Debt issuance costs | — | (9 | ) | (3 | ) | (12 | ) | |||||||||||
Proceeds from employee stock plans | 3 | 7 | 10 | 52 | ||||||||||||||
Other financing activities | — | — | (3 | ) | — | |||||||||||||
Net cash (used in) provided by financing activities | (178 | ) | 60 | 370 | 276 | |||||||||||||
Cash flows from discontinued operations | ||||||||||||||||||
Net cash provided by (used in) discontinued operations | 66 | (27 | ) | 28 | (51 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (8 | ) | (1 | ) | (11 | ) | (14 | ) | ||||||||||
Decrease in cash and cash equivalents | (59 | ) | — | (104 | ) | (609 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 483 | 460 | 528 | 1,069 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 424 | $ | 460 | $ | 424 | $ | 460 |
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