8-K/A
NCR Voyix Corp true 0000070866 0000070866 2024-09-30 2024-09-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K/A

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 30, 2024

 

 

NCR VOYIX CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Commission File Number 001-00395

 

Maryland   31-0387920

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

864 Spring Street NW

Atlanta, GA 30308

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (800) 225-5627

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.01 per share   VYX   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 


Explanatory Note

On September 30, 2024, NCR Voyix Corporation (“NCR Voyix” or the “Company”) filed a Current Report on Form 8-K (the “Original Form 8-K”) to report the completion of its sale of the Company’s Digital Banking business to Dragon Buyer, Inc., an affiliate of The Veritas Capital Fund VIII, L.P. (the “Digital Banking Sale”). In accordance with Accounting Standards Codification 205-20, “Discontinued Operations,” the results of the digital banking business will be reflected as discontinued operations beginning in the quarter ending September 30, 2024. The purpose of this amendment to the Original Form 8-K is to provide the pro forma financial information required by Item 9.01(b) of Form 8-K.

The pro forma financial information included in this amended Report on Form 8-K/A has been presented for informational purposes, is based on various adjustments and assumptions and is not necessarily indicative of what the Company’s condensed consolidated financial statements actually would have been had the Digital Banking Sale and other adjustments been completed as of the dates indicated or will be for any future periods.

 

Item 9.01.

Financial Statements and Exhibits.

(b) Pro Forma Financial Information

Pursuant to Article 11 of Regulation S-X, the following unaudited pro forma financial information of the Company, giving effect to the Digital Banking Sale, is attached hereto as Exhibit 99.1 to this Form 8-K/A and incorporated herein by reference:

 

   

Unaudited Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2024;

 

   

Unaudited Pro Forma Condensed Consolidated Statement of Operations for the Six Months ended June 30, 2024; and

 

   

Unaudited Pro Forma Condensed Consolidated Statements of Operations for the years ended December 31, 2023, 2022, and 2021.

(d) Exhibits:

The following exhibits are attached with this current report on Form 8-K:

 

Exhibit
 No. 

  

Description

99.1    Unaudited Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2024 and Unaudited Pro Forma Condensed Consolidated Statement of Operations for the six months ended June 30, 2024 and for the three years ended December 31, 2023, 2022 and 2021.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

NCR Voyix Corporation
By:  

/s/ Brian Webb-Walsh

  Brian Webb-Walsh
  Executive Vice President and Chief Financial Officer

Date: October 4, 2024

EX-99.1

Exhibit 99.1

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As previously reported, on August 5, 2024, NCR Voyix Corporation (“NCR Voyix” or the “Company”) entered into a purchase agreement (the “Purchase Agreement”) with Dragon Buyer, Inc. (“Buyer”), an affiliate of The Veritas Capital Fund VIII, L.P. (“Veritas”), pursuant to which Buyer agreed to purchase the Company’s digital banking business (the “Transaction” or the “Digital Banking Business”). On September 30, 2024, and pursuant to the Purchase Agreement, the Buyer acquired NCR Voyix’s Digital Banking Business. The gross purchase price was $2.45 billion in cash as well as contingent consideration of up to an additional $100 million in cash upon the achievement of a specified return on Veritas’ and its affiliates’ invested capital at the time of any future sale, subject to certain customary adjustments as set forth in the Purchase Agreement. The Company intends to use the majority of the proceeds from the Transaction for repayment of the short- and long-term debt held by NCR Voyix, termination and contemporaneous repurchase of trade receivables held within the trade receivables facility (the “T/R Facility”) and payment of transaction costs.

The Company will report the results of the Digital Banking Business as discontinued operations for the current and historical periods in the Company’s consolidated financial statements beginning in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024.

The Unaudited Pro Forma Condensed Consolidated Financial Statements presented below have been derived from the NCR Voyix’s historical consolidated financial statements and give pro forma effect to the Transaction. The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2024 reflects NCR Voyix’s financial position as if the Transaction had occurred on June 30, 2024. The adjustments in the “Transaction Accounting Adjustments” column in the Unaudited Pro Forma Condensed Consolidated Balance Sheet give effect to the Transaction as if it had occurred as of June 30, 2024. The Unaudited Pro Forma Consolidated Statements of Operations for the six months ended June 30, 2024 and for each of the years ended December 31, 2023, December 31, 2022 and December 31, 2021 reflect the results of operations as if the Transaction had occurred on January 1, 2021 in that they reflect the reclassification of the Digital Banking Business as discontinued operations for all periods presented. The adjustments in the “Transaction Accounting Adjustments” column in the Unaudited Pro Forma Condensed Consolidated Statements of Operations for the six months ended June 30, 2024 and for the year ended December 31, 2023 give effect to the Transaction as if it had occurred as of January 1, 2023.

The Unaudited Pro Forma Condensed Consolidated Financial Statements presented below have been derived from, and should be read in conjunction with, NCR Voyix’s audited consolidated financial statements and the notes thereto as of December 31, 2023, and for the three years ended December 31, 2023, and Management’s Discussion and Analysis included in NCR Voyix’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as NCR Voyix’s unaudited condensed consolidated financial statements and the notes thereto as of and for the six months ended June 30, 2024, and Management’s Discussion and Analysis included in NCR Voyix’s Quarterly Report on Form 10-Q for the six months ended June 30, 2024. Upon entering into the Purchase Agreement with the Buyer, the historical financial results of the Digital Banking Business will be reflected in NCR Voyix’s consolidated financial statements as discontinued operations under U.S. generally accepted accounting principles (“GAAP”) for all periods.

The Unaudited Pro Forma Condensed Consolidated Financial Statements are presented based on information currently available, subject to the assumptions and adjustments described in the accompanying notes and is not intended to represent what NCR Voyix’s condensed consolidated balance sheet and statements of operations actually would have been had the Transaction occurred on the dates indicated above. Further, the Unaudited Pro Forma Condensed Consolidated Financial Statements are provided for illustrative and informational purposes only and are not necessarily indicative of NCR Voyix’s financial position and results of operations for any future period and does not reflect all actions that may be undertaken by NCR Voyix following the closing of the Transaction. In addition, the Unaudited Pro Forma Condensed Consolidated Financial Statements do not reflect the realization of any expected cost savings, synergies or dis-synergies as a result of the Transaction. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors. Management believes these assumptions and adjustments are reasonable, given the information available at the time of filing. The Unaudited Pro Forma Condensed Consolidated Financial Statements should be read in conjunction with NCR Voyix’s historical consolidated financial statements and accompanying notes. The Transaction constituted a significant disposition for purposes of Item 2.01 of Form 8-K and the Unaudited Pro Forma Condensed Consolidated Financial Statements presented below have been prepared in accordance with Article 11 of Regulation S-X, Pro Forma Financial Information.


The pro forma adjustments are based on currently available information and assumptions management believes are, under the circumstances and given the information available at this time, reasonable, and best reflect the Transaction on NCR Voyix’s financial condition and results of operations. The adjustments included within the “Discontinued Operations” column of the Unaudited Pro Forma Condensed Consolidated Financial Statements are NCR Voyix’s current preliminary estimates on a discontinued operations basis and could change as NCR Voyix finalizes discontinued operations accounting to be reported in NCR Voyix’s Annual Report on Form 10-K for the year ended December 31, 2024.


Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

     As of June 30, 2024  
In millions, except per share amounts    Historical
(as reported)
    Discontinued
Operations

(Note a)
    Transaction
Accounting
Adjustments
    Pro Forma  

Assets

        

Current assets

        

Cash and cash equivalents

   $ 204     $ 1     $ 547  (b)    $ 750  

Accounts receivable, net of allowances of $23 million

     429       64       252  (b)      617  

Inventories

     220       —        —        220  

Restricted cash

     24       —        —        24  

Prepaid and other current assets

     187       9       —        178  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     1,064       74       799       1,789  
  

 

 

   

 

 

   

 

 

   

 

 

 

Property, plant and equipment, net

     205       5       —        200  

Goodwill

     2,038       521       —        1,517  

Intangibles, net

     261       154       —        107  

Operating lease assets

     233       4       —        229  

Prepaid pension cost

     40       —        —        40  

Deferred income taxes

     244       2       (45 ) (c)      197  

Other assets

     698       188       —        510  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 4,783     $ 948     $ 754     $ 4,589  
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and stockholders’ equity (deficit)

        

Current liabilities

        

Short-term borrowings

   $ 15     $ —      $ (15 ) (b)    $ —   

Accounts payable

     478       55       —        423  

Payroll and benefits liabilities

     93       11       —        82  

Contract liabilities

     230       50       —        180  

Settlement liabilities

     51       —        —        51  

Other current liabilities

     387       3       362  (b), (c)      746  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     1,254       119       347       1,482  
  

 

 

   

 

 

   

 

 

   

 

 

 

Long-term debt

     2,595       —        (1,498 ) (b)      1,097  

Pension and indemnity plan liabilities

     157       —        —        157  

Postretirement and postemployment benefits liabilities

     45       —        —        45  

Income tax accruals

     66       —        —        66  

Operating lease liabilities

     252       2       —        250  

Other liabilities

     225       3       —        222  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     4,594       124       (1,151     3,319  
  

 

 

   

 

 

   

 

 

   

 

 

 

Commitments and Contingencies

        

Series A convertible preferred stock: par value $0.01 per share

     276       —        —        276  

Stockholders’ equity (deficit)

        

NCR Voyix stockholders’ equity (deficit)

        

Preferred stock: par value $0.01 per share

     —        —        —        —   

Common stock: par value $0.01 per share

     1       —        —        1  

Paid-in capital

     899       —        —        899  

Retained earnings (deficit)

     (517     824  (d)      1,905  (d)      564  

Accumulated other comprehensive loss

     (468     —        —        (468
  

 

 

   

 

 

   

 

 

   

 

 

 

Total NCR Voyix stockholders’ equity (deficit)

     (85     824       1,905       996  

Noncontrolling interests in subsidiaries

     (2     —        —        (2
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity (deficit)

     (87     824       1,905       994  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity (deficit)

   $ 4,783     $ 948     $ 754     $ 4,589  
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.


Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

     For the six months ended June 30, 2024  
In millions, except per share amounts    Historical (as
reported)
    Discontinued
Operations

(Note a)
     Continuing
Operations
    Transaction
Accounting
Adjustments
    Pro Forma  

Product revenue

   $ 488     $ 23      $ 465     $ —      $ 465  

Service revenue

     1,246       278        968       —        968  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Revenue

     1,734       301        1,433       —        1,433  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Cost of products

     431       22        409       —        409  

Cost of services

     916       157        759       —        759  

Selling, general and administrative expenses

     271       45        226       —        226  

Research and development expenses

     115       26        89       —        89  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,733       250        1,483       —        1,483  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1       51        (50     —        (50

Interest expense

     (80     —         (80     59  (e)      (21

Other income (expense), net

     (25     —         (25     2  (e)      (23
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     (104     51        (155     61       (94

Income tax expense (benefit)

     10       9        1       —   (g)      1  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     (114     42        (156     61       (95

Net income (loss) attributable to noncontrolling interests

     (1     —         (1     —        (1
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to NCR Voyix

   $ (113   $ 42      $ (155   $ 61     $ (94
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Amounts attributable to NCR Voyix common stockholders:

           

Income (loss) from continuing operations

   $ (113          $ (94

Series A convertible preferred stock dividends

     (8            (8
  

 

 

          

 

 

 

Income (loss) from continuing operations attributable to NCR Voyix common stockholders

   $ (121          $ (102

Income (loss) per common share from continuing operations

           

Basic

   $ (0.84          $ (0.71

Diluted

   $ (0.84          $ (0.71

Weighted average common shares outstanding

           

Basic

     144.3              144.3  

Diluted

     144.3              144.3  

See accompanying notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.


Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

     For the year ended December 31, 2023  
In millions, except per share amounts    Historical (as
reported)
    Discontinued
Operations
(Note a)
    Continuing
Operations
    Transaction
Accounting
Adjustments
    Pro Forma  

Product revenue

   $ 1,239     $ 53     $ 1,186     $ —      $ 1,186  

Service revenue

     2,591       526       2,065       —        2,065  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

     3,830       579       3,251       —        3,251  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of products

     1,110       43       1,067       —        1,067  

Cost of services

     1,758       280       1,478       —        1,478  

Selling, general and administrative expenses

     740       76       664       —        664  

Research and development expenses

     185       46       139       —        139  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,793       445       3,348       —        3,348  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     37       134       (97     —        (97

Loss on extinguishment of debt

     (46     —        (46     (11 ) (e)      (57

Interest expense

     (294     —        (294     85  (e)      (209

Other income (expense), net

     (79     (5     (74     22  (e), (f)      (52
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     (382     129       (511     96       (415

Income tax expense (benefit)

     204       13       191       2  (g)      193  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     (586     116       (702     94       (608

Net income (loss) attributable to noncontrolling interests

     —        —        —        —        —   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to NCR Voyix

   $ (586   $ 116     $ (702   $ 94     $ (608
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amounts attributable to NCR Voyix common stockholders:

          

Income (loss) from continuing operations

   $ (586         $ (608

Series A convertible preferred stock dividends

     (16           (16
  

 

 

         

 

 

 

Income (loss) from continuing operations attributable to NCR Voyix common stockholders

   $ (602         $ (624

Income (loss) per common share from continuing operations

          

Basic

   $ (4.28         $ (4.44

Diluted

   $ (4.28         $ (4.44

Weighted average common shares outstanding

          

Basic

     140.6             140.6  

Diluted

     140.6             140.6  

See accompanying notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.


Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

     For the year ended December 31, 2022  
In millions, except per share amounts    Historical (as
reported)
    Discontinued
Operations
(Note a)
     Pro Forma  

Product revenue

   $ 1,274     $ 55      $ 1,219  

Service revenue

     2,519       492        2,027  
  

 

 

   

 

 

    

 

 

 

Total Revenue

     3,793       547        3,246  
  

 

 

   

 

 

    

 

 

 

Cost of products

     1,151       38        1,113  

Cost of services

     1,664       256        1,408  

Selling, general and administrative expenses

     695       72        623  

Research and development expenses

     147       31        116  
  

 

 

   

 

 

    

 

 

 

Total operating expenses

     3,657       397        3,260  
  

 

 

   

 

 

    

 

 

 

Income (loss) from operations

     136       150        (14

Interest expense

     (285     —         (285

Other income (expense), net

     18       —         18  
  

 

 

   

 

 

    

 

 

 

Income (loss) from continuing operations before income taxes

     (131     150        (281

Income tax expense (benefit)

     72       11        61  
  

 

 

   

 

 

    

 

 

 

Income (loss) from continuing operations

     (203     139        (342

Net income (loss) attributable to noncontrolling interests

     —        —         —   
  

 

 

   

 

 

    

 

 

 

Net income (loss) attributable to NCR Voyix

   $ (203   $ 139      $ (342
  

 

 

   

 

 

    

 

 

 

Amounts attributable to NCR Voyix common stockholders:

       

Income (loss) from continuing operations

   $ (203      $ (342

Series A convertible preferred stock dividends

     (16        (16
  

 

 

      

 

 

 

Income (loss) from continuing operations attributable to NCR Voyix common stockholders

   $ (219      $ (358

Income (loss) per common share from continuing operations

       

Basic

   $ (1.60      $ (2.62

Diluted

   $ (1.60      $ (2.62

Weighted average common shares outstanding

       

Basic

     136.7          136.7  

Diluted

     136.7          136.7  

See accompanying notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.


Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

     For the year ended December 31, 2021  
In millions, except per share amounts    Historical (as
reported)
    Discontinued
Operations
(Note a)
     Pro Forma  

Product revenue

   $ 1,176     $ 69      $ 1,107  

Service revenue

     2,516       446        2,070  
  

 

 

   

 

 

    

 

 

 

Total Revenue

     3,692       515        3,177  
  

 

 

   

 

 

    

 

 

 

Cost of products

     1,032       45        987  

Cost of services

     1,735       212        1,523  

Selling, general and administrative expenses

     704       91        613  

Research and development expenses

     195       24        171  
  

 

 

   

 

 

    

 

 

 

Total operating expenses

     3,666       372        3,294  
  

 

 

   

 

 

    

 

 

 

Income (loss) from operations

     26       143        (117

Loss on extinguishment of debt

     (42     —         (42

Interest expense

     (238     —         (238

Other income (expense), net

     (13     —         (13
  

 

 

   

 

 

    

 

 

 

Income (loss) from continuing operations before income taxes

     (267     143        (410

Income tax expense (benefit)

     70       15        55  
  

 

 

   

 

 

    

 

 

 

Income (loss) from continuing operations

     (337     128        (465

Net income (loss) attributable to noncontrolling interests

     —        —         —   
  

 

 

   

 

 

    

 

 

 

Net income (loss) attributable to NCR Voyix

   $ (337   $ 128      $ (465
  

 

 

   

 

 

    

 

 

 

Amounts attributable to NCR Voyix common stockholders:

       

Income (loss) from continuing operations

   $ (337      $ (465

Series A convertible preferred stock dividends

     (16        (16
  

 

 

      

 

 

 

Income (loss) from continuing operations attributable to NCR Voyix common stockholders

   $ (353      $ (481

Income (loss) per common share from continuing operations

       

Basic

   $ (2.69      $ (3.67

Diluted

   $ (2.69      $ (3.67

Weighted average common shares outstanding

       

Basic

     131.2          131.2  

Diluted

     131.2          131.2  

See accompanying notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.


Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

The Unaudited Pro Forma Condensed Consolidated Balance Sheet and Unaudited Pro Forma Condensed Consolidated Statements of Operations include the following adjustments:

Digital Banking Discontinued Operations:

(a) Reflects the discontinued operations of the Digital Banking Business, including associated assets, liabilities, equity, results of operations, and the non-recurring costs associated with the Transaction, primarily consisting of professional fees. In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the amounts exclude general corporate overhead costs which were historically allocated, but did not specifically relate to the Digital Banking Business, as they did not meet the discontinued operations criteria. Such allocations included labor and non-labor expenses related to NCR Voyix’s corporate support functions (e.g., information technology, human resources and legal, real estate, among others) that historically provided support to the Digital Banking Business.

Transaction Accounting Adjustments:

(b) Reflects the estimated cash proceeds of approximately $2.45 billion from Buyer to NCR Voyix in connection with the Transaction as consideration for the net assets sold to the Buyer utilized for:

 

  i.

Repayment of the short-term debt held by NCR Voyix of $15 million;

 

  ii.

Repayment of the long-term debt held by NCR Voyix of $1,509 million and write-off of unamortized deferred financing fees of $11 million;

 

  iii.

Repayment of accrued interest on short- and long-term debt held by NCR Voyix of $18 million;

 

  iv.

Termination and contemporaneous repurchase of trade receivables of $300 million held within the T/R Facility, inclusive of $48 million of trade receivables related to the Digital Banking Business included within the net assets conveyed to the Buyer, as required to effectuate the Transaction; and

 

  v.

Payment of transaction costs of $61 million including legal, investment banking and third-party consulting fees.

The final purchase price will be determined subsequent to the closing of the Transaction to reflect adjustments in accordance with the Purchase Agreement, including final net working capital adjustments.

(c) The Transaction is structured as an asset sale for income tax purposes. The gain on the Transaction will result in an estimated $425 million of income tax expense, $380 million of which has been classified as a current liability. The remaining $45 million non-cash deferred tax adjustment is caused by reversal of temporary differences related to the Digital Banking assets and utilization of tax attributes.

(d) Reflects the estimated pre-tax gain of $1,517 million, which is included in total stockholders’ equity on the Unaudited Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2024, as a result of the completion of the Transaction. The estimated pre-tax gain is comprised of the estimated cash proceeds of approximately $2.45 billion, less the (i) historical net carrying value of the Digital Banking Business of $824 million, (ii) repurchased trade receivables related to the Digital Banking Business conveyed of $48 million and (iii) estimated transaction costs of $61 million.


Stockholders’ equity is inclusive of the estimated tax impact of the Transaction as described in (c) above and the impact of the write-off of unamortized deferred financing fees as described in (b) above, which is not included in the estimated pre-tax gain.

The estimated pre-tax gain reflected herein is based on the carrying value of the Digital Banking Business as of June 30, 2024. As a result, these estimates may materially differ from the actual pre-tax gain on the Transaction recorded as of the closing date of the Transaction.

(e) Reflects the estimated reduced interest expense by $59 million for the six months ended June 30, 2024 and $85 million for the year ended December 31, 2023, respectively, as a result of the payments made with the estimated cash proceeds received in connection with the Transaction to reduce short- and long-term debt obligations and to terminate the T/R Facility. This amount is based on the historical interest expense associated with the borrowings and the T/R Facility to be repaid in connection with the Transaction together with the recognition of related make-whole premiums.

Additionally, as a result of the short- and long-term debt repayments, NCR Voyix reflected a loss on extinguishment of debt related to the write-off of unamortized deferred financing fees of $11 million for the year ended December 31, 2023.

Further, as a result of the short- and long-term debt repayments and the T/R Facility termination, NCR Voyix reflected reduced other expense related to a reduction in certain bank fees incurred of $2 million for the six months ended June 30, 2024 and $3 million for the year ended December 31, 2023.

(f) Reflects the estimated fees for providing transitional services to the Buyer in accordance with the Transaction Service Agreement (the “TSA”) of $19 million for the year ended December 31, 2023. In connection with the Transaction, NCR Voyix entered into the TSA, pursuant to which NCR Voyix will provide certain transitional services such as accounting and treasury, legal, and other administrative support to the Buyer for a transitional period of up to 12 months after the closing of the Transaction.

(g) Reflects the tax effects of the Transaction Accounting Adjustments to pre-tax book income at the applicable statutory income tax rates in the respective jurisdictions except for the adjustments impacting interest expense, given there was a valuation allowance in the historical period. The amounts are considered preliminary, and as such, actual results could materially differ from these estimates.