Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-4879 | |
Entity Registrant Name | Diebold Nixdorf, Incorporated | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-0183970 | |
Entity Address, Address Line One | 50 Executive Parkway, P.O. Box 2520 | |
Entity Address, City or Town | Hudson | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44236 | |
City Area Code | 330 | |
Local Phone Number | 490-4000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | DBD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,566,668 | |
Entity Central Index Key | 0000028823 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Filer Category | Accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 376.1 | $ 307.4 |
Restricted cash | 64.2 | 11.7 |
Short-term investments | 16.6 | 24.6 |
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | 703.8 | 612.2 |
Inventories | 666.2 | 588.1 |
Prepaid expenses | 46.9 | 50.5 |
Current assets held for sale | 0 | 7.9 |
Other current assets | 207 | 168.5 |
Total current assets | 2,080.8 | 1,770.9 |
Securities and other investments | 5.8 | 7.6 |
Total property, plant, and equipment, net | 159 | 120.7 |
Deferred income taxes | 36.6 | 0 |
Goodwill | 596.7 | 702.3 |
Intangible assets, net | 884.1 | 257.6 |
Other assets | 256.6 | 205.9 |
Total assets | 4,019.6 | 3,065 |
Current liabilities | ||
Notes payable | 5.1 | 24 |
Accounts payable | 528.9 | 611.6 |
Deferred revenue | 351.5 | 453.2 |
Payroll and other benefits liabilities | 137 | 107.9 |
Current liabilities held for sale | 0 | 6.8 |
Other current liabilities | 391.2 | 401.4 |
Total current liabilities | 1,413.7 | 1,604.9 |
Long-term debt | 1,253.1 | 2,585.8 |
Pensions, post-retirement and other benefits | 98.2 | 40.6 |
Deferred income taxes | 166.2 | 96.6 |
Other liabilities | 96.9 | 108.2 |
Liabilities, Total | 3,028.1 | 4,436.1 |
Diebold Nixdorf, Incorporated shareholders' equity | ||
Preferred Stock, Value, Issued | 0 | |
Common stock | 0.4 | |
Additional capital | 1,038.6 | 831.5 |
Accumulated deficit | (26.5) | (1,406.7) |
Treasury shares, at cost | 0 | (585.6) |
Accumulated other comprehensive loss | (35.8) | (360) |
Equity warrants | 0 | 20.1 |
Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) | 976.7 | (1,380.9) |
Noncontrolling interests | 14.8 | 9.8 |
Total equity | 991.5 | (1,371.1) |
Total liabilities and equity (deficit) | 4,019.6 | 3,065 |
Customer relationships, net | ||
Current assets | ||
Intangible assets, net | 532.6 | 213.6 |
Other intangible assets, net | ||
Current assets | ||
Intangible assets, net | $ 351.5 | 44 |
Predecessor | ||
Current assets | ||
Cash and cash equivalents | 307.4 | |
Diebold Nixdorf, Incorporated shareholders' equity | ||
Preferred Stock, Value, Issued | 0 | |
Common stock | $ 119.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | $ 1 | $ 34.5 |
Accumulated depreciation and amortization | $ 8.6 | $ 479.4 |
Diebold Nixdorf, Incorporated shareholders' equity | ||
Preferred shares, shares authorized | 2,000,000 | 1,000,000 |
Preferred shares, shares issued | 0 | 0 |
Common shares, par value | $ 0.01 | $ 1.25 |
Common shares, shares authorized | 45,000,000 | 125,000,000 |
Common shares, shares issued | 37,566,668 | 95,779,719 |
Common shares, shares outstanding | 37,566,668 | 79,103,450 |
Treasury Stock, Common, Shares | 16,676,269 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Net sales | |||||
Net sales | $ 351.6 | $ 591.8 | $ 810.4 | $ 2,131.9 | $ 2,491.9 |
Cost of sales | |||||
Total cost of sales | 266.1 | 462.2 | 616.6 | 1,611.9 | 1,952 |
Gross profit | 85.5 | 129.6 | 193.8 | 520 | 539.9 |
Selling and administrative expense | 73.9 | 81.1 | 163.1 | 458.7 | 557.9 |
Research, development and engineering expense | 10.5 | 12 | 26.7 | 62.3 | 92.1 |
(Gain) loss on sale of assets, net | 0 | (1.5) | (5.6) | 1.2 | (5.4) |
Impairment of assets | 0.6 | 1.1 | 4.1 | 3.3 | 64.7 |
Total operating expense | 85 | 92.7 | 188.3 | 525.5 | 709.3 |
Operating profit (loss) | 0.5 | 36.9 | 5.5 | (5.5) | (169.4) |
Other income (expense) | |||||
Interest income | 1.7 | 2 | 3.6 | 6.7 | 5.9 |
Interest expense | (26.4) | (42.9) | (50.7) | (178) | (148.4) |
Foreign exchange (loss) gain, net | 7.9 | (27.3) | 5.3 | (1.2) | 2.9 |
Total Reorganization items, net | 2,250.3 | (8) | 0 | 1,614.1 | 0 |
Miscellaneous, net | 6.2 | (0.8) | (9.7) | 12.3 | (2.5) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | 2,240.2 | (40.1) | (46) | 1,448.4 | (311.5) |
Income tax (benefit) expense | 94.1 | (13.2) | 3.9 | 90.4 | 119 |
Equity in earnings (loss) of unconsolidated subsidiaries, net | 0.2 | 1.1 | (0.6) | (0.5) | (3) |
Net (loss) income | 2,146.3 | (25.8) | (50.5) | 1,357.5 | (433.5) |
Net (loss) income attributable to noncontrolling interests | (0.2) | 0.7 | (0.7) | (0.8) | (1.4) |
Net (loss) income attributable to Diebold Nixdorf, Incorporated | $ 2,146.5 | $ (26.5) | $ (49.8) | $ 1,358.3 | $ (432.1) |
Basic weighted-average shares outstanding (in shares) | 80 | 37.6 | 79.1 | 79.7 | 78.9 |
Diluted weighted-average shares outstanding (in shares) | 81.4 | 37.6 | 79.1 | 81.4 | 78.9 |
Net (loss) income attributable to Diebold Nixdorf, Incorporated | |||||
Basic earnings (loss) per share (in dollars per share) | $ 26.83 | $ (0.70) | $ (0.63) | $ 17.04 | $ (5.48) |
Diluted earnings (loss) per share (in dollars per share) | $ 26.37 | $ (0.70) | $ (0.63) | $ 16.69 | $ (5.48) |
Service [Member] | |||||
Net sales | |||||
Net sales | $ 240.6 | $ 305.5 | $ 514.3 | $ 1,295 | $ 1,565.9 |
Cost of sales | |||||
Total cost of sales | 171.3 | 226.1 | 356.7 | 922.4 | 1,106 |
Product | |||||
Net sales | |||||
Net sales | 111 | 286.3 | 296.1 | 836.9 | 926 |
Cost of sales | |||||
Total cost of sales | $ 94.8 | $ 236.1 | $ 259.9 | $ 689.5 | $ 846 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Net income (loss) | $ 2,146.3 | $ (25.8) | $ (50.5) | $ 1,357.5 | $ (433.5) |
Other comprehensive income (loss), net of tax | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 2.9 | 0 | 0.5 | 3.4 | 5.2 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 0 | 0.6 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 0 | 3.4 | 4.6 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 1.1 | 0 | (1.4) | 3.2 | (0.6) |
Net pension settlements | 0 | 0 | 14.3 | 0 | 14.3 |
Other | 0 | 0 | 0.7 | ||
Other comprehensive income (loss), net of tax | 4.2 | (35.6) | (22.7) | 32.3 | (53.3) |
Comprehensive income (loss) | 2,150.5 | (61.4) | (73.2) | 1,389.8 | (486.8) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (3.5) | 0.9 | 1.2 | (8.5) | 3.6 |
Comprehensive income (loss) attributable to Diebold Nixdorf, Incorporated | 2,154 | (62.3) | (74.4) | 1,398.3 | (490.4) |
Translation adjustment | |||||
Other comprehensive income (loss), net of tax | |||||
Translation adjustment and foreign currency hedges | (4.5) | (35.6) | (36.2) | 21 | (72.3) |
Net Investment Hedging [Member] | |||||
Other comprehensive income (loss), net of tax | |||||
Translation adjustment and foreign currency hedges | $ 4.7 | $ 0 | $ 0.1 | $ 4.7 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) Parentheticals - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate hedges | ||||
Interest rate hedges, net gain recognized in other comprehensive income, tax | $ 0 | $ 0 | $ (0.6) | |
Pension and other post-retirement benefits | ||||
Net actuarial loss amortization, tax | $ (3.1) | (0.6) | 3.8 | 1 |
Pension Plan [Member] | ||||
Net actuarial loss amortization, tax | $ 0 | $ 0 | ||
Foreign Currency Hedges | ||||
Net actuarial loss amortization, tax | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||
Aug. 11, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flow from operating activities: | ||||||||
Net income (loss) | $ 2,146.3 | $ (25.8) | $ (111.5) | $ (50.5) | $ (183.9) | $ 1,357.5 | $ (433.5) | |
Adjustments to reconcile net (loss) income to cash flow used by operating activities: | ||||||||
Depreciation and amortization | 21 | 35.5 | 42.3 | |||||
Amortization of Wincor Nixdorf purchase accounting intangible assets | 0 | 41.8 | 52.8 | |||||
Amortization of deferred financing costs into interest expense | 0.9 | 21.8 | 12 | |||||
Reorganization items (non-cash) | 0 | (1,747.6) | 0 | |||||
Reorganization items (debt make whole premium) | 0 | (91) | 0 | |||||
Share-based compensation | 0 | 5.1 | 9.6 | |||||
(Gain) loss on sale of assets, net | (1.5) | 1.2 | (5.4) | |||||
Net pension settlements | 0 | 0 | 14.3 | 0 | 14.3 | |||
Impairment of assets | 0.6 | 1.1 | 4.1 | 3.3 | 64.7 | |||
Deferred income taxes | (50.3) | 79.8 | 112.8 | |||||
Other | 0 | 0 | 2.7 | |||||
Changes in certain assets and liabilities | ||||||||
Trade receivables | (104.6) | 9.9 | (2.5) | |||||
Inventories | 54 | (98.1) | (186.5) | |||||
Accounts payable | 90.4 | (140.4) | (18.9) | |||||
Deferred revenue | (58.2) | (51) | 14.5 | |||||
Sales tax and net value added tax | 10.9 | (38.1) | (24.9) | |||||
Income taxes | 27.7 | (26) | (34.7) | |||||
Accrued salaries, wages and commissions | (12.9) | 33 | (59.1) | |||||
Restructuring accrual | (1.8) | (30.2) | 21.2 | |||||
Accrued interest | 33.5 | 20.9 | 14.8 | |||||
Warranty liability | (0.1) | (3.4) | (5.2) | |||||
Pension and post retirement benefits | (1.3) | 2 | (13.4) | |||||
Certain other assets and liabilities | 16.8 | 12.6 | (60.4) | |||||
Net cash provided (used) by operating activities | (0.2) | (419.4) | (482.8) | |||||
Cash flow from investing activities: | ||||||||
Capital expenditures | 3.5 | 15.1 | 13.8 | |||||
Capitalized software development | (3.7) | (13.1) | (24) | |||||
Proceeds from divestitures, net of cash divested | 0 | 0 | 10.5 | |||||
Proceeds from maturities of investments | 54.2 | 153.2 | 368.6 | |||||
Payments for purchases of investments | (57.3) | (141) | (345.6) | |||||
Proceeds from sale of assets | 0 | 0 | 3.5 | |||||
Net cash used by investing activities | (10.3) | (16) | (0.8) | |||||
Cash flow from financing activities: | ||||||||
Revolving credit facility borrowings, net | 0 | 0 | 240 | |||||
Debt issuance costs | 0 | (5.1) | 0 | |||||
Debt make whole premium | 0 | (91) | 0 | |||||
Other | (0.5) | (3.4) | (6.6) | |||||
Net cash provided by financing activities | 2.8 | 563.5 | 233.5 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4.9) | 2.9 | (12.5) | |||||
Change in cash, cash equivalents and restricted cash | (12.6) | 131 | (262.6) | |||||
Add: Cash included in assets held for sale at beginning of period | 0.7 | 2.8 | 3.1 | 2.8 | $ 2.8 | 3.1 | ||
Less: Cash included in assets held for sale at end of period | 0.7 | 0 | 1 | 0.7 | 0 | 1 | ||
Cash, cash equivalents and restricted cash at the beginning of the period | 452.2 | $ 319.1 | $ 388.9 | 319.1 | 319.1 | 388.9 | ||
Cash, cash equivalents and restricted cash at the end of the period | 452.2 | 440.3 | 128.4 | 452.2 | 440.3 | 128.4 | ||
Additional Cash Flow Elements, Summations [Abstract] | ||||||||
Cash and cash equivalents | 391.4 | 376.1 | 128.4 | 391.4 | 376.1 | 128.4 | ||
Restricted cash | 60.8 | 64.2 | 0 | 60.8 | 64.2 | 0 | ||
Cash, cash equivalents and restricted cash | $ 452.2 | 440.3 | $ 128.4 | 452.2 | $ 440.3 | 128.4 | ||
DIP Facility | ||||||||
Cash flow from financing activities: | ||||||||
Receipt of DIP financing | 0 | 1,250 | 0 | |||||
FILO Facility - Due 2023 | ||||||||
Cash flow from financing activities: | ||||||||
Borrowings - FILO | 0 | 58.9 | 0 | |||||
Repayments - FILO | 0 | (58.9) | 0 | |||||
International Short-Term Uncommitted Line of Credit [Member] | ||||||||
Cash flow from financing activities: | ||||||||
Other debt borrowings | 4.9 | 4.4 | 12.4 | |||||
Other short-term debt | ||||||||
Cash flow from financing activities: | ||||||||
Other debt repayments | (1.6) | (2.5) | (12.3) | |||||
Asset Backed Loan | ||||||||
Cash flow from financing activities: | ||||||||
Repayment of ABL credit agreement, net | 0 | (188.3) | 0 | |||||
Superpriority Term Loans Due 2025 | ||||||||
Cash flow from financing activities: | ||||||||
Repayment of superpriority term loan | $ 0 | $ (400.6) | $ 0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in the Company’s accumulated other comprehensive income (loss) (AOCI), net of tax, by component for 2023: Translation Foreign Currency Hedges Interest Rate Hedges Pension and Other Post-retirement Benefits Other Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2023 (Predecessor) $ (352.1) $ (1.9) $ 5.3 $ (12.6) $ 1.3 $ (360.0) Other comprehensive income (loss) before reclassifications (1) 4.7 — 0.3 — — 5.0 Amounts reclassified from AOCI — — — 1.3 — 1.3 Net current-period other comprehensive income (loss) 4.7 — 0.3 1.3 — 6.3 Balance at March 31, 2023 (Predecessor) $ (347.4) $ (1.9) $ 5.6 $ (11.3) $ 1.3 $ (353.7) Other comprehensive income (loss) before reclassifications (2) 25.2 — 0.2 — — 25.4 Amounts reclassified from AOCI — — — 0.8 — 0.8 Net current-period other comprehensive income (loss) 25.2 — 0.2 0.8 — 26.2 Balance at June 30, 2023 (Predecessor) $ (322.2) $ (1.9) $ 5.8 $ (10.5) $ 1.3 $ (327.5) Other comprehensive income (loss) before reclassifications (3) (1.2) 4.7 2.9 — — 6.4 Amounts reclassified from AOCI — — — 1.1 — 1.1 Fresh Start adjustments 323.4 (2.8) (8.7) 9.4 (1.3) 320.0 Net current-period other comprehensive income (loss) 322.2 1.9 (5.8) 10.5 (1.3) 327.5 Balance at August 12, 2023 (Successor) $ — $ — $ — $ — $ — $ — Other comprehensive income (loss) before reclassifications (4) (35.8) — — — — (35.8) Amounts reclassified from AOCI — — — — — — Net current-period other comprehensive income (loss) (35.8) — — — — (35.8) Balance at September 30, 2023 (Successor) $ (35.8) $ — $ — $ — $ — $ (35.8) (1) Other comprehensive income (loss) before reclassifications within the translation component excludes $(2.2) of translation attributable to noncontrolling interests. (2) Other comprehensive income (loss) before reclassifications within the translation component excludes $6.6 of translation attributable to noncontrolling interests. (3) Other comprehensive income (loss) before reclassifications within the translation component excludes $3.3 of translation attributable to noncontrolling interests. (4) Other comprehensive income (loss) before reclassifications within the translation component excludes $(0.2) of translation attributable to noncontrolling interests. The following table summarizes the changes in the Company’s AOCI, net of tax, by component for 2022: Translation Foreign Currency Hedges Interest Rate Hedges Pension and Other Post-retirement Benefits Other Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2022 (Predecessor) $ (310.9) $ (1.9) $ 0.4 $ (64.6) $ (1.5) $ (378.5) Other comprehensive income (loss) before reclassifications (1) 10.4 (1.0) 2.9 — 0.7 13.0 Amounts reclassified from AOCI — — (0.6) 0.7 — 0.1 Net current-period other comprehensive income (loss) 10.4 (1.0) 2.3 0.7 0.7 13.1 Balance at March 31, 2022 (Predecessor) $ (300.5) $ (2.9) $ 2.7 $ (63.9) $ (0.8) $ (365.4) Other comprehensive income (loss) before reclassifications (2) (49.6) 0.9 1.8 — — (46.9) Amounts reclassified from AOCI — — — 0.1 — 0.1 Net current-period other comprehensive income (loss) (49.6) 0.9 1.8 0.1 — (46.8) Balance at June 30, 2022 (Predecessor) $ (350.1) $ (2.0) $ 4.5 $ (63.8) $ (0.8) $ (412.2) Other comprehensive income (loss) before reclassifications (3) (38.1) 0.1 0.5 — — (37.5) Amounts reclassified from AOCI — — — 12.9 — 12.9 Net current-period other comprehensive income (loss) (38.1) 0.1 0.5 12.9 — (24.6) Balance at September 30, 2022 (Predecessor) $ (388.2) $ (1.9) $ 5.0 $ (50.9) $ (0.8) $ (436.8) (1) Other comprehensive income (loss) before reclassifications within the translation component excludes $(0.8) of translation attributable to noncontrolling interests. : (2) Other comprehensive income (loss) before reclassifications within the translation component excludes $(2.3) of translation attributable to noncontrolling interests. : (3) Other comprehensive income (loss) before reclassifications within the translation component excludes $(1.9) of translation attributable to noncontrolling interests. : The following table summarizes the details about the amounts reclassified from AOCI: Successor Predecessor Affected Line Item on the Statement of Operations Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Pension and post-retirement benefits: Net actuarial gain (loss) amortized (net of tax of $(3.1), and $(0.6) in the Predecessor Periods, respectively) $ — $ 1.1 $ (1.4) Miscellaneous, net Net actuarial losses recognized due to settlement (net of tax of $0.0 and $0.0 in the Predecessor Periods, respectively) — — 14.3 Miscellaneous, net Total reclassifications for the period $ — $ 1.1 $ 12.9 Successor Predecessor Affected Line Item on the Statement of Operations Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Interest rate hedge loss $ — $ — $ (0.6) Interest expense Pension and post-retirement benefits: Net actuarial gain (loss) amortized (net of tax of $(3.8), and $(1.0) in the Predecessor Periods, respectively) — 3.2 (0.6) Miscellaneous, net Net actuarial losses recognized due to settlement (net of tax of $0.0 and $0.0 in the Predecessor Periods, respectively) — — 14.3 Miscellaneous, net Total reclassifications for the period $ — $ 3.2 $ 13.1 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Diebold Nixdorf, Incorporated and its subsidiaries (collectively, the Company) have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States (U.S. GAAP); however, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Except as disclosed herein, and with the exception of information in this Quarterly Report on Form 10-Q related to our emergence from the Restructuring Proceedings (defined in Note 2) and Fresh Start Accounting (defined below), there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022. In addition, some of the Company’s statements in this Quarterly Report on Form 10-Q may involve risks and uncertainties that could significantly impact expected future results. The results for interim periods are not necessarily indicative of results for the entire year. The Company has reclassified the presentation of certain Predecessor information to conform to the Successor presentation. Bankruptcy Accounting and Fresh Start Accounting The consolidated financial statements included herein have been prepared using the going concern basis of accounting and in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic No. 852 – Reorganizations (ASC 852). See Note 2 and Note 3 for further detail. In accordance with ASC 852, we qualified for and adopted fresh start accounting (Fresh Start Accounting) upon emergence from the Restructuring Proceedings, at which point we became a new entity for financial reporting because (i) the holders of the then existing common shares of the Predecessor received less than 50% of the new shares of common stock of the Successor outstanding upon emergence and (ii) the reorganization value of the Company’s assets immediately prior to confirmation of the Plans (defined in Note 2) was less than the total of all post-petition liabilities and allowed claims. Upon adoption of Fresh Start Accounting as reflected in Note 3 – Fresh Start Accounting, the reorganization value derived from the enterprise value associated with the Plans was allocated to the Company’s identifiable tangible and intangible assets and liabilities based on their fair values (except for deferred income taxes), with the remaining excess value allocated to goodwill in accordance with ASC 805 – Business Combinations. Deferred income tax amounts were determined in accordance with ASC 740 – Income Taxes. References to “Predecessor” relate to the Condensed Consolidated Balance Sheets as of December 31, 2022, and Condensed Consolidated Statements of Operations for the quarter and nine months ended September 30, 2022 and for the periods from January 1, 2023 and July 1, 2023 through and including the adjustments from the application of Fresh Start Accounting on August 11, 2023 (Predecessor Period). References to “Successor” relate to the Condensed Consolidated Balance Sheet of the reorganized Company as of September 30, 2023 and Condensed Consolidated Statements of Operations for the period from August 12, 2023 through September 30, 2023 (Successor Period) and are not comparable to the Condensed Consolidated Financial Statements of the Predecessor as indicated by the “black line” division in the financial statements and footnote tables, which emphasizes the lack of comparability between amounts presented. In addition, Note 3 – Fresh Start Accounting provides a summary of the Condensed Consolidated Balance Sheets as of August 11, 2023 in the first column, and then presents adjustments to reflect the Plans and fresh start impacts to derive the opening Successor Condensed Consolidated Balance Sheets as of August 12, 2023. The Company’s financial results for future periods following the application of Fresh Start Accounting will be different from historical trends and the differences may be material. Principles of Consolidation We consolidate all wholly owned subsidiaries and controlled joint ventures. All material intercompany accounts and transactions have been eliminated in consolidation. Recently Issued Accounting Guidance The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the FASB. In March 2020, the FASB issued guidance that provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2024. The standard does not materially impact the Company's consolidated financial statements. Although there are other new accounting pronouncements issued by the FASB, the Company does not believe these pronouncements will have a material impact on its consolidated financial statements. |
Chapter 11 Cases and Dutch Sche
Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as a Going Concern and Other Related Matters | 9 Months Ended |
Sep. 30, 2023 | |
Reorganizations [Abstract] | |
Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as a Going Concern and Other Related Matters | Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as Going Concern and Other Related Matters Voluntary Reorganization On June 1, 2023, the Company and certain of its U.S. and Canadian subsidiaries (collectively, the Debtors) filed voluntary petitions in the U.S. Bankruptcy Court for the Southern District of Texas (the U.S. Bankruptcy Court) seeking relief under chapter 11 of title 11 of the U.S. Code (the U.S. Bankruptcy Code). The cases were jointly administered under the caption In re: Diebold Holding Company, LLC, et al. (Case No. 23-90602) (the Chapter 11 Cases). Additionally, on June 1, 2023, Diebold Nixdorf Dutch Holding B.V. (Diebold Dutch) filed a scheme of arrangement relating to certain of the Company’s other subsidiaries (the Dutch Scheme Parties) and commenced voluntary proceedings (the Dutch Scheme Proceedings and, together with the Chapter 11 Cases, the Restructuring Proceedings) under the Dutch Act on Confirmation of Extrajudicial Plans (Wet homologatie onderhands akkoord) in the District Court of Amsterdam (the Dutch Court). In addition, on June 12, 2023, Diebold Dutch filed a voluntary petition for relief under chapter 15 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court seeking recognition of the Dutch Scheme Proceedings as a foreign main proceedings and related relief (the Chapter 15 Proceedings). On July 13, 2023, the U.S. Bankruptcy Court entered an order (the Confirmation Order) confirming the Debtors’ Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization (the U.S. Plan). On August 2, 2023, the Dutch Court entered an order (the WHOA Sanction Order) sanctioning the Netherlands WHOA Plan of Diebold Dutch and the Dutch Scheme Companies (the WHOA Plan) in the Dutch Scheme Proceedings. On August 7, 2023, the U.S. Bankruptcy Court entered an order in the Chapter 15 Proceedings recognizing the WHOA Plan and the WHOA Sanction Order. On August 11, 2023 (the Effective Date or Fresh Start Reporting Date), the U.S. Plan and WHOA Plan (together, the Plans) became effective in accordance with their terms and the Debtors and the Dutch Scheme Parties emerged from the Chapter 11 Cases and the Dutch Scheme Proceedings. Following filing the notice of the Effective Date with the U.S. Bankruptcy Court, the Chapter 15 Proceedings were closed. The following is a summary of the material provisions of the U.S. Plan, as confirmed by the U.S. Bankruptcy Court pursuant to the Confirmation Order, and the WHOA Plan (as applicable), as sanctioned by the Dutch Court, and are qualified in its entirety by reference to the full text of the Plans (including the Plan Supplement). Capitalized terms used but not defined in the following "Treatment of Claims" section of this Quarterly Report on Form 10-Q have the meanings set forth in the U.S. Plan. Treatment of Claims The following is a high-level summary of the treatment of claims and interests under the Plans (as applicable), which is qualified in its entirety by the terms of the Plans (as applicable): • Holders of Other Secured Claims . Each holder of allowed Other Secured Claims received, at the Company’s option: (a) payment in full in cash; (b) the collateral securing its secured claim; (c) reinstatement of its secured claim; or (d) such other treatment rendering its secured claim unimpaired in accordance with section 1124 of the U.S. Bankruptcy Code. • Holders of Other Priority Claims . Each holder of allowed Other Priority Claims received, at the Company’s option: (a) payment in full in cash; or (b) such other treatment rendering its other priority claim unimpaired in accordance with section 1124 of the U.S. Bankruptcy Code. • Holders of ABL Facility Claims . Prior to the Effective Date, allowed ABL Facility Claims were paid in full and any letters of credit were cash collateralized. • Holders of Superpriority Term Loan Claims . Prior to the Effective Date, allowed Superpriority Term Loan Claims were paid in full. • Holders of First Lien Claims . On the Effective Date, each holder of allowed First Lien Claims received its pro rata share of 98% of the reorganized Company’s new common equity interests (the New Common Stock) available for distribution to certain creditors under the Plans, which is subject to dilution on account of (a) the issuance of the New Common Stock (the Additional New Common Stock) as premiums in consideration for commitments with respect to the Debtors’ $1,250.0 debtor-in-possession term loan credit facility (the DIP Facility) and (b) a new management incentive plan implemented in connection with the Chapter 11 Cases pursuant to which 6% of the number of shares of New Common Stock issued pursuant to the U.S. Plan on a fully diluted basis (the MIP Shares) were reserved for issuance to management as determined by the reorganized Company’s new Board of Directors. • Holders of Second Lien Notes Claims . On the Effective Date, each holder of allowed Second Lien Notes Claims received its pro rata share of 2% of the New Common Stock available for distribution to creditors under the Plans, which is subject to dilution on account of (a) the issuance of certain of the Additional New Common Stock and (b) the MIP Shares. • Holders of 2024 Stub Unsecured Notes Claims . On the Effective Date, each holder of allowed 2024 Stub Unsecured Notes Claims received its pro rata share of an amount of a $3.5 cash distribution, which provided such holder with the same percentage recovery on its allowed 2024 Stub Unsecured Notes Claim that a holder of an allowed Second Lien Notes Claim received in respect of its allowed Second Lien Notes Claim (as diluted on account of the Additional New Common Stock, as applicable) under the U.S. Plan based upon the midpoint of the equity value of the New Common Stock as set forth in the Disclosure Statement approved in the Chapter 11 Cases (the Disclosure Statement). • Holders of General Unsecured Claims . On the Effective Date, each allowed General Unsecured Claim was reinstated and paid in the ordinary course of business in accordance with the terms and conditions of the particular transaction or agreement giving rise to such allowed general unsecured claim. • Holders of Section 510(b) Claims . On the Effective Date, claims subject to section 510(b) of the U.S. Bankruptcy Code were either extinguished, cancelled and discharged, and holders thereof received no distributions from the Debtors in respect of their claims. • DNI Equity Holders . Each holder of an equity interest in Diebold Nixdorf, Incorporated had such interest extinguished, cancelled and discharged without any distribution. The Exit Credit Agreement On the Effective Date, the Company, as borrower, entered into a new credit agreement (the Exit Credit Agreement) governing its $1,250.0 senior secured loan credit facility (the Exit Facility) along with certain financial institutions party thereto, as lenders, GLAS USA LLC, as administrative agent, and GLAS Americas LLC, as collateral agent. Concurrently with the closing of the Exit Facility, the Company’s existing $1,250.0 senior secured superpriority debtor-in-possession term loan credit facility (the DIP Facility) was terminated and the loans outstanding under the DIP Facility were converted into loans outstanding under the Exit Facility (the Conversion), and the liens and guarantees, including all guarantees and liens granted by certain subsidiaries of the Company that are organized in the United States and in certain foreign jurisdictions, granted under the DIP Facility were automatically terminated and released. In connection with the Conversion, the entire $1,250.0 under the Exit Facility was deemed drawn on the Effective Date. The Company may repay the loans under the Exit Facility at any time; provided that certain repayments of the loans made on or prior to February 11, 2025 with the proceeds of certain types of indebtedness must be accompanied by a premium of either 1.00% or 5.00% of the principal amount of the loans repaid. The amount of the premium is based on the type of indebtedness incurred to repay the loans. Amounts borrowed and repaid under the Exit Facility may not be reborrowed. The Exit Facility will mature on August 11, 2028. The obligations of the Company under the Exit Facility are guaranteed by certain subsidiaries of the Company that are organized in the United States (the Guarantors). The Exit Facility and related guarantees are secured by perfected senior security interests and liens on substantially all assets of the Company and each Guarantor. Loans under the Exit Facility bear interest at an adjusted secured overnight financing rate with a one-month tenor rate plus 7.50% per annum or an adjusted base rate plus 6.50% per annum. The Exit Facility includes conditions precedent, representations and warranties, affirmative and negative covenants and events of default that are customary for financings of this type and size. Registration Rights Agreement On the Effective Date, the Company entered into a registration rights agreement (the Registration Rights Agreement) with certain parties (together with any person or entity that becomes a party to the Registration Rights Agreement, the Holders) that received shares of the New Common Stock on the Effective Date as provided in the Plans. The Registration Rights Agreement provides Holders with registration rights for the Holders’ Registrable Securities (as defined in the Registration Rights Agreement). Pursuant to the Registration Rights Agreement, the Company is required to file a Resale Shelf Registration Statement (as defined in the Registration Rights Agreement) with respect to the Registrable Securities within 90 calendar days of the Effective Date. Subject to certain exceptions, the Company is required to use commercially reasonable efforts maintain the effectiveness of any such registration statement until the date on which all Registrable Securities registered thereunder are no longer Registrable Securities. In addition, specified Holders have the right to demand that the Company effect the registration of any or all of the Registrable Securities (a Demand Registration) and/or effectuate the distribution of any or all of their Registrable Securities by means of an underwritten shelf takedown offering. The Company is not obligated to effect more than five Demand Registrations or more than four underwritten shelf takedown offerings and it need not comply with such a request unless the aggregate gross proceeds from such a sale will exceed specified thresholds and other conditions are met. The Company will not be obligated to effect an underwritten shelf takedown within 180 days after the consummation of a previous underwritten shelf takedown or Demand Registration. Holders also have customary piggyback registration rights, subject to the limitations set forth in the Registration Rights Agreement. These registration rights are subject to certain conditions and limitations, including the right of the underwriters to limit the number of shares to be included in a registration statement and the Company’s right to delay or withdraw a registration statement under certain circumstances. The Company will generally pay all registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. The registration rights granted in the Registration Rights Agreement are subject to customary indemnification and contribution provisions, as well as customary restrictions such as blackout periods. Share-Based Compensation As discussed above, on the Effective Date, the then existing common shares of the Predecessor were canceled and the New Common Stock was issued. Accordingly, the existing share-based compensation awards issued pursuant to the 2017 Equity and Performance Incentive Plan were also canceled, which resulted in the recognition of any previously unamortized expense related to the canceled awards on the date of cancellation. Management Incentive Plan Pursuant to the U.S. Plan, the reorganized Company adopted a new management incentive plan (the MIP). The U.S. Plan contemplates that 6% of the New Common Stock, on a fully diluted basis, is reserved for issuance in connection with the MIP. As of September 30, 2023, the terms of awards under the MIP have not been established; as such, no grants have been awarded pursuant to the MIP. Conversion to Delaware Corporation Pursuant to the U.S. Plan as and part of the Restructuring Proceedings, the Company was reincorporated as a Delaware corporation. Going Concern Assessment The Company's condensed consolidated financial statements included herein have been prepared using the going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the normal course of business. As discussed above, commencing June 1, 2023, the Debtors and the Dutch Scheme Parties were operating as debtors in possession under the supervision and jurisdiction of the U.S. Bankruptcy Court and the Dutch Court until the Effective Date, when the U.S. Plan and the WHOA Plan became effective in accordance with their terms and the Debtors and Dutch Scheme Parties emerged from the Chapter 11 Cases and Dutch Scheme Proceedings. Prior to and during the pendency of the Chapter 11 Cases and Dutch Scheme Proceedings, the Company’s ability to continue as a going concern was subject to a high degree of risk and uncertainty until the Plans were confirmed and became effective. As a result of the U.S. Plan and the WHOA Plan becoming effective on the Effective Date, the Company believes that it has the ability to meet its obligations for at least one year from the date of the issuance of this Form 10-Q and that there is no longer substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities Subject to Compromise During the pendency of the Chapter 11 Cases and Dutch Scheme Proceedings, prepetition liabilities of the Debtors and Dutch Scheme Parties subject to compromise under the Restructuring Proceedings were distinguished from liabilities that were not expected to be compromised and post-petition liabilities in our condensed consolidated balance sheets. Liabilities subject to compromise were recorded at the amounts expected to be allowed by the U.S. Bankruptcy Court. See Note 3 for a listing of liabilities subject to compromise immediately prior to the effectiveness of the Plans. The contractual interest expense on Debt that was classified as subject to compromise was in excess of recorded interest expense by $50.6 and $67.5 for the period from July 1, 2023 through August 11, 2023 and the period from January 1, 2023 through August 11, 2023, respectively. This excess contractual interest was not recorded as interest expense on the Predecessor's Condensed Consolidated Statements of Operations, as we had discontinued accruing interest on this debt and discontinued making interest payments beginning on June 1, 2023 in connection with filing of the plans. See Note 12 for further detail regarding Debt subject to compromise. Reorganization Items, Net The income, expenses, gains and losses directly and incrementally resulting from the Chapter 11 Cases and Dutch Scheme Proceedings are separately reported as Reorganization items, net in our condensed consolidated statement of operations. Reorganization items, net consisted of the following: Successor Predecessor Successor Predecessor 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 Gain on settlement of liabilities subject to compromise (non-cash) $ — $ 1,570.5 $ — $ 1,570.5 Fresh start valuation adjustments (non-cash) — 686.7 — 686.7 Professional fees (cash) (8.0) (35.2) (8.0) (38.7) Unamortized debt issuance costs (non-cash) — — — (124.6) DIP premium (non-cash) — 32.6 — (384.4) Debt make-whole premium (cash) — — — (91.0) Lease rejection damage claim (cash) — (3.8) — (3.8) Other (non-cash) — (0.5) — (0.6) Total Reorganization items, net $ (8.0) $ 2,250.3 $ (8.0) $ 1,614.1 Cash paid for Reorganization items, net was $4.7 and $107.2 for the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Period, respectively. Fresh Start Accounting As discussed in Note 1, upon emergence from the Chapter 11 Cases and Dutch Scheme Proceedings, the Company qualified for and adopted Fresh Start Accounting, which resulted in the Company becoming a new entity for financial reporting purposes (the Successor). The reorganization value derived from the range of enterprise values associated with the Plans was allocated to the Company’s identifiable tangible and intangible assets and liabilities based on their fair values (except for deferred income taxes) with the remaining excess value allocated to goodwill. As a result of the adoption of Fresh Start Accounting and the effects of the implementation of the Plans, the Company’s condensed consolidated financial statements of the Successor, are not comparable to its condensed consolidated financial statements of the Predecessor. Reorganization Value The Successor determined a value to be assigned to the equity of the emerging entity as of the date of adoption of Fresh Start Accounting. The Disclosure Statement approved in the Chapter 11 Cases (the Disclosure Statement) included a range of enterprise values between $2,150.0 and $2,450.0. The Company engaged third-party valuation advisors to assist in determining a point estimate of enterprise value within the range and the allocation of enterprise value to the assets and liabilities for financial reporting purposes based on management’s latest outlook as of the Effective Date. The Company deemed it appropriate to use an enterprise value of $2,150.0 for financial reporting . The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Fair value of Exit Facility (1,250.0) Less: Net pension, post-retirement and other benefits liability (39.3) Less: Other debt (13.9) Less: Noncontrolling interests (13.9) Fair Value of Successor Equity $ 1,039.0 The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Net pension, post-retirement and other benefits liability (39.3) Plus: Fair value of non-debt current liabilities 1,398.3 Plus: Fair value of non-debt, non-current liabilities 225.0 Plus: Deferred income taxes, non-current 238.5 Reorganization Value of Successor's Assets to be Allocated $ 4,178.6 The discounted cash flow (DCF) method, a form of the income approach, was relied upon to validate the selected enterprise value of the Company within the range established within the Disclosure Statement, as well as to allocate the resulting consolidated enterprise value between the Company’s two reporting units. The DCF method is a multiple period discounting model in which the value of an entity is determined based on the present value of its expected future economic benefits. For purposes of our analysis, we used free cash flow, defined as the earnings available for distribution to an entity’s investors after consideration of the cash reinvestment required to support the Company’s continued operations and future growth. Conceptually, free cash flow as defined above is the amount that could be paid to investors without impairing an entity’s current or future operations. The expected cash flows for the period from August 12, 2023 through December 31, 2023 and for the years ending December 31, 2024 through 2028 were based on the financial projections and assumptions utilized as an input to determining the range of enterprise values in the Disclosure Statement. The expected cash flows beyond this period were based on long-term profitability and growth expectations. A terminal value was included, based on the cash flows of the final year of the discrete forecast period. Discount rates of 19.0% and 19.0% were estimated for the Company’s Banking and Retail reporting units, respectively, based on an after-tax weighted average cost of capital (WACC) reflecting the rate of return that would be expected by a market participant. The WACC also takes into consideration a company specific risk premium reflecting the risk associated with the financial projections used to estimate future cash flows. These discount rates were also compared to the consolidated internal rate of return (IRR) of 18.9% to assess reasonableness. The IRR is the rate of return that equates the present value of the expected consolidated cash flows to the enterprise value relied upon within the range established in the Disclosure Statement. The enterprise value and corresponding equity value are dependent upon achieving the future financial results set forth in our projections. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to uncertainties and the resolution of contingencies beyond our control. Accordingly, there cannot be assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. Valuation Process The Company estimated the fair values of the Company’s principal assets, including inventory, property, plant, and equipment, and intangible assets as well as the Company’s lease liabilities and the Exit Facility. Inventory The replacement value of the Company’s raw materials inventory was considered as its fair value. The comparative sales method was employed to estimate the fair value of the Company’s work-in-process and finished goods inventory. The comparative sales method utilizes the expected selling price of the inventory items as the base inventory value amount. This amount is then adjusted downward for costs and expenses associated with the time and effort that would be required to dispose of the inventory and a reasonable profit. Property, plant, and equipment Personal Property Personal property consisted of machinery, tools, equipment, furniture and fixtures, leasehold improvements, computer and equipment, and construction in progress. The cost approach was primarily utilized for the Company's personal property. This approach considers the amount required to construct or purchase a new asset of equal utility at current prices, with adjustments in value for physical deterioration, and functional and economic obsolescence. Physical deterioration is an adjustment made in the cost approach to reflect the real operating age of an asset with regard to wear and tear, decay and deterioration that is not prevented by maintenance. Functional obsolescence is the loss in value or usefulness of an asset caused by inefficiencies or inadequacies of the asset, as compared to a more efficient or less costly replacement asset with newer technology. Economic obsolescence is the loss in value or usefulness of an asset due to factors external to the asset, such as the economics of the industry, reduced demand, increased competition or similar factors. Land and Building Improvements The valuation of land, land improvements, buildings and building improvements was performed using either the cost, income capitalization or sales comparison approach, depending on the nature of the asset. The cost approach was utilized for the Company’s owned industrial facilities. The income capitalization approach was used to value the Company’s interests in an industrial complex. The income capitalization approach measures the value of a property by calculating the present value of the future economic benefits associated with the property. The sales comparison approach was used for certain owned vacant land and relies upon recent sales or similar offerings to arrive at a probable selling price. Intangible Assets Tradenames and Trademarks and Technology / Know-How Assets The relief from royalty method was relied upon to value the trade names and trademarks and technology / know-how assets. The relief from royalty analysis is comprised of two major steps: (i) a determination of an appropriate royalty rate, and (ii) the subsequent application of the royalty rate to projected revenue. In determining an appropriate royalty rate, the Company considered comparable license agreements, an excess earnings analysis to determine aggregate intangible asset earnings, and other qualitative factors. The key assumptions used to estimate the fair value of the Company’s trade names and trademarks and technology / know-how assets included forecasted revenues, the royalty rate, the tax rate and the discount rate. The relief from royalty method was relied upon for these valuations. The relief from royalty method measures the benefit of owning an intangible asset as the “relief” from the royalty expense that would otherwise be incurred by licensing the asset from a third party. It assumes that if the Company did not own the intangible asset, then it would be willing to pay a royalty for its use. This method is most commonly used for readily transferable intangible assets that have licensing appeal, such as intellectual property. Customer Relationship and Backlog Assets The customer relationships and backlog assets were valued using the multi-period excess earnings method, a variation of the income approach. For the customer relationships assets, revenues attributable to customer assets were determined and an attrition rate based on historical customer trends was applied to estimate the expected decline anticipated from the existing customer population. The cash flows attributable to the customer relationships and backlog assets were also determined by applying appropriate costs and contributory asset charges then adjusted using a discount rate that is commensurate with the risk inherent in the customer-related intangible assets. The key assumptions used to estimate the fair value of the customer-related assets included forecasted revenues, attrition rates, profit margins, contributory asset charges, the tax rate and the discount rate. Joint ventures To estimate the value of the joint ventures, the DCF method was employed to determine the enterprise value of these entities. Adjustments for cash and cash equivalents and interest-bearing debt were made to enterprise value to calculate each entity’s equity value. The application of a discount for lack of control was also considered. Lastly, the concluded equity value was adjusted for the Company’s ownership interest. Lease liabilities and right of use assets Lease liabilities were estimated as the present value of the remaining lease payments. The Company estimated an incremental borrowing rate and used it as the discount rate in the analysis. Right of use asset values were estimated by adjusting the lease liability estimates with estimates of off-market value of leases. Off-market (or above/below market) value was estimated as the present value of the differential between contract rates and market rates over the remaining term of a lease. Exit Facility To estimate the value of the Exit Facility, a DCF method was employed. The fair value of the Exit Facility was estimated by analyzing the expected cash flows and discounting such cash flows at a rate of return that reflects the time value of money and credit risk of the Company. The credit risk of the Company was determined via a synthetic credit rating analysis, and the concluded discount rate was determined by analyzing comparable corporate debt instruments and their observed market yields. Noncontrolling interests To estimate the value of the non-controlling interests, the DCF method was employed to determine the enterprise value of these entities. Adjustments for cash and cash equivalents and interest-bearing debt were made to enterprise value to calculate each entities’ equity value. The application of a discount for lack of control was also considered. Lastly, the concluded equity value was adjusted for the non-controlling interest’s ownership position. Consolidated Balance Sheet The adjustments included in the following fresh start condensed consolidated balance sheet reflect the effects of the transactions contemplated by the Plans and executed by the Company on the Fresh Start Reporting Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information and significant assumptions with regard to the adjustments recorded and the methods used to determine the fair values. Predecessor Reorganization Adjustments (1) Fresh Start Accounting Adjustments Successor August 11, 2023 August 12, 2023 ASSETS Current assets Cash and cash equivalents $ 404.9 $ (13.5) (2) $ — $ 391.4 Restricted cash 60.8 — — 60.8 Short-term investments 13.9 — — 13.9 Trade receivables, less allowances for doubtful accounts 623.9 — — 623.9 Inventories 712.8 — 32.8 (17) 745.6 Prepaid expenses 49.1 (3.5) (3) — 45.6 Current assets held for sale 9.9 — — 9.9 Other current assets 247.8 — — 247.8 Total current assets 2,123.1 (17.0) 32.8 2,138.9 Securities and other investments 7.0 — — 7.0 Property, plant, and equipment, net of accumulated depreciation and amortization 120.3 — 46.2 (18) 166.5 Deferred income taxes — 70.3 (4) (10.8) (19) 59.5 Goodwill 714.3 — (93.3) (20) 621.0 Customer relationships, net 176.1 — 378.2 (21) 554.3 Other intangible assets, net 45.1 — 320.0 (22) 365.1 Other assets 256.8 — 9.5 (23) 266.3 Total assets $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 LIABILITIES AND EQUITY Current liabilities Notes payable $ 1,254.9 $ (1,250.0) (5) $ — $ 4.9 Accounts payable 461.0 — — 461.0 Deferred revenue 421.0 — — 421.0 Payroll and other benefits liabilities 159.2 (0.1) (6) — 159.1 Current liabilities held for sale 10.2 — 0.7 (24) 10.9 DIP facility premium 384.4 (384.4) (7) — — Other current liabilities 343.3 5.5 (8) 1.5 (25) 350.3 Total current liabilities 3,034.0 (1,629.0) 2.2 1,407.2 Long-term debt 4.2 1,248.7 (9) 0.8 (26) 1,253.7 Pensions, post-retirement and other benefits 102.3 — (0.3) (27) 102.0 Deferred income taxes 85.8 (26.4) (4) 179.1 (19) 238.5 Other liabilities 120.3 — 4.0 (28) 124.3 Liabilities subject to compromise 2,232.4 (2,232.4) (10) — — Total liabilities $ 5,579.0 (2,639.1) 185.8 3,125.7 Equity Diebold Nixdorf, Incorporated shareholders' equity Predecessor common shares 121.2 (121.2) (11) — — Successor common stock — 0.4 (12) — 0.4 Paid-in capital; predecessor 832.3 (442.3) (13) (390.0) (29) — Paid-in capital; successor — 1,038.6 (14) — 1,038.6 Retained earnings (accumulated deficit) (2,204.8) 1,659.4 (15) 545.4 (29) — Treasury shares, at cost (586.4) 586.4 (13) — — Accumulated other comprehensive income (loss) (320.0) (8.8) (16) 328.8 (29) — Equity warrants 20.1 (20.1) (13) — — Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) (2,137.6) 2,692.4 484.2 1,039.0 Noncontrolling interests 1.3 — 12.6 (30) 13.9 Total equity (deficit) (2,136.3) 2,692.4 496.8 1,052.9 Total liabilities and equity (deficit) $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 Reorganization Adjustments (1) Represent amounts recorded as of the Fresh Start Reporting Date for the implementation of the Plans, including, among other items, settlement of the Predecessor's liabilities subject to compromise, distributions of cash, conversion of the DIP Facility to the Exit Facility, and the issuance of the Successor common stock. (2) Changes in cash and cash equivalents include the following: Payment of interest on the DIP Facility $ (1.8) Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Payment of lease rejection damages (3.8) Payment of professional fees (4.4) Net change in cash and cash equivalents $ (13.5) (3) Reflects the elimination of prepaid directors and officers insurance policies related to the Predecessor. (4) Change in deferred tax assets and liabilities as a result of release of valuation allowance, partially offset by reduc |
Fresh Start Accounting
Fresh Start Accounting | 9 Months Ended |
Sep. 30, 2023 | |
Reorganizations [Abstract] | |
Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as a Going Concern and Other Related Matters | Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as Going Concern and Other Related Matters Voluntary Reorganization On June 1, 2023, the Company and certain of its U.S. and Canadian subsidiaries (collectively, the Debtors) filed voluntary petitions in the U.S. Bankruptcy Court for the Southern District of Texas (the U.S. Bankruptcy Court) seeking relief under chapter 11 of title 11 of the U.S. Code (the U.S. Bankruptcy Code). The cases were jointly administered under the caption In re: Diebold Holding Company, LLC, et al. (Case No. 23-90602) (the Chapter 11 Cases). Additionally, on June 1, 2023, Diebold Nixdorf Dutch Holding B.V. (Diebold Dutch) filed a scheme of arrangement relating to certain of the Company’s other subsidiaries (the Dutch Scheme Parties) and commenced voluntary proceedings (the Dutch Scheme Proceedings and, together with the Chapter 11 Cases, the Restructuring Proceedings) under the Dutch Act on Confirmation of Extrajudicial Plans (Wet homologatie onderhands akkoord) in the District Court of Amsterdam (the Dutch Court). In addition, on June 12, 2023, Diebold Dutch filed a voluntary petition for relief under chapter 15 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court seeking recognition of the Dutch Scheme Proceedings as a foreign main proceedings and related relief (the Chapter 15 Proceedings). On July 13, 2023, the U.S. Bankruptcy Court entered an order (the Confirmation Order) confirming the Debtors’ Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization (the U.S. Plan). On August 2, 2023, the Dutch Court entered an order (the WHOA Sanction Order) sanctioning the Netherlands WHOA Plan of Diebold Dutch and the Dutch Scheme Companies (the WHOA Plan) in the Dutch Scheme Proceedings. On August 7, 2023, the U.S. Bankruptcy Court entered an order in the Chapter 15 Proceedings recognizing the WHOA Plan and the WHOA Sanction Order. On August 11, 2023 (the Effective Date or Fresh Start Reporting Date), the U.S. Plan and WHOA Plan (together, the Plans) became effective in accordance with their terms and the Debtors and the Dutch Scheme Parties emerged from the Chapter 11 Cases and the Dutch Scheme Proceedings. Following filing the notice of the Effective Date with the U.S. Bankruptcy Court, the Chapter 15 Proceedings were closed. The following is a summary of the material provisions of the U.S. Plan, as confirmed by the U.S. Bankruptcy Court pursuant to the Confirmation Order, and the WHOA Plan (as applicable), as sanctioned by the Dutch Court, and are qualified in its entirety by reference to the full text of the Plans (including the Plan Supplement). Capitalized terms used but not defined in the following "Treatment of Claims" section of this Quarterly Report on Form 10-Q have the meanings set forth in the U.S. Plan. Treatment of Claims The following is a high-level summary of the treatment of claims and interests under the Plans (as applicable), which is qualified in its entirety by the terms of the Plans (as applicable): • Holders of Other Secured Claims . Each holder of allowed Other Secured Claims received, at the Company’s option: (a) payment in full in cash; (b) the collateral securing its secured claim; (c) reinstatement of its secured claim; or (d) such other treatment rendering its secured claim unimpaired in accordance with section 1124 of the U.S. Bankruptcy Code. • Holders of Other Priority Claims . Each holder of allowed Other Priority Claims received, at the Company’s option: (a) payment in full in cash; or (b) such other treatment rendering its other priority claim unimpaired in accordance with section 1124 of the U.S. Bankruptcy Code. • Holders of ABL Facility Claims . Prior to the Effective Date, allowed ABL Facility Claims were paid in full and any letters of credit were cash collateralized. • Holders of Superpriority Term Loan Claims . Prior to the Effective Date, allowed Superpriority Term Loan Claims were paid in full. • Holders of First Lien Claims . On the Effective Date, each holder of allowed First Lien Claims received its pro rata share of 98% of the reorganized Company’s new common equity interests (the New Common Stock) available for distribution to certain creditors under the Plans, which is subject to dilution on account of (a) the issuance of the New Common Stock (the Additional New Common Stock) as premiums in consideration for commitments with respect to the Debtors’ $1,250.0 debtor-in-possession term loan credit facility (the DIP Facility) and (b) a new management incentive plan implemented in connection with the Chapter 11 Cases pursuant to which 6% of the number of shares of New Common Stock issued pursuant to the U.S. Plan on a fully diluted basis (the MIP Shares) were reserved for issuance to management as determined by the reorganized Company’s new Board of Directors. • Holders of Second Lien Notes Claims . On the Effective Date, each holder of allowed Second Lien Notes Claims received its pro rata share of 2% of the New Common Stock available for distribution to creditors under the Plans, which is subject to dilution on account of (a) the issuance of certain of the Additional New Common Stock and (b) the MIP Shares. • Holders of 2024 Stub Unsecured Notes Claims . On the Effective Date, each holder of allowed 2024 Stub Unsecured Notes Claims received its pro rata share of an amount of a $3.5 cash distribution, which provided such holder with the same percentage recovery on its allowed 2024 Stub Unsecured Notes Claim that a holder of an allowed Second Lien Notes Claim received in respect of its allowed Second Lien Notes Claim (as diluted on account of the Additional New Common Stock, as applicable) under the U.S. Plan based upon the midpoint of the equity value of the New Common Stock as set forth in the Disclosure Statement approved in the Chapter 11 Cases (the Disclosure Statement). • Holders of General Unsecured Claims . On the Effective Date, each allowed General Unsecured Claim was reinstated and paid in the ordinary course of business in accordance with the terms and conditions of the particular transaction or agreement giving rise to such allowed general unsecured claim. • Holders of Section 510(b) Claims . On the Effective Date, claims subject to section 510(b) of the U.S. Bankruptcy Code were either extinguished, cancelled and discharged, and holders thereof received no distributions from the Debtors in respect of their claims. • DNI Equity Holders . Each holder of an equity interest in Diebold Nixdorf, Incorporated had such interest extinguished, cancelled and discharged without any distribution. The Exit Credit Agreement On the Effective Date, the Company, as borrower, entered into a new credit agreement (the Exit Credit Agreement) governing its $1,250.0 senior secured loan credit facility (the Exit Facility) along with certain financial institutions party thereto, as lenders, GLAS USA LLC, as administrative agent, and GLAS Americas LLC, as collateral agent. Concurrently with the closing of the Exit Facility, the Company’s existing $1,250.0 senior secured superpriority debtor-in-possession term loan credit facility (the DIP Facility) was terminated and the loans outstanding under the DIP Facility were converted into loans outstanding under the Exit Facility (the Conversion), and the liens and guarantees, including all guarantees and liens granted by certain subsidiaries of the Company that are organized in the United States and in certain foreign jurisdictions, granted under the DIP Facility were automatically terminated and released. In connection with the Conversion, the entire $1,250.0 under the Exit Facility was deemed drawn on the Effective Date. The Company may repay the loans under the Exit Facility at any time; provided that certain repayments of the loans made on or prior to February 11, 2025 with the proceeds of certain types of indebtedness must be accompanied by a premium of either 1.00% or 5.00% of the principal amount of the loans repaid. The amount of the premium is based on the type of indebtedness incurred to repay the loans. Amounts borrowed and repaid under the Exit Facility may not be reborrowed. The Exit Facility will mature on August 11, 2028. The obligations of the Company under the Exit Facility are guaranteed by certain subsidiaries of the Company that are organized in the United States (the Guarantors). The Exit Facility and related guarantees are secured by perfected senior security interests and liens on substantially all assets of the Company and each Guarantor. Loans under the Exit Facility bear interest at an adjusted secured overnight financing rate with a one-month tenor rate plus 7.50% per annum or an adjusted base rate plus 6.50% per annum. The Exit Facility includes conditions precedent, representations and warranties, affirmative and negative covenants and events of default that are customary for financings of this type and size. Registration Rights Agreement On the Effective Date, the Company entered into a registration rights agreement (the Registration Rights Agreement) with certain parties (together with any person or entity that becomes a party to the Registration Rights Agreement, the Holders) that received shares of the New Common Stock on the Effective Date as provided in the Plans. The Registration Rights Agreement provides Holders with registration rights for the Holders’ Registrable Securities (as defined in the Registration Rights Agreement). Pursuant to the Registration Rights Agreement, the Company is required to file a Resale Shelf Registration Statement (as defined in the Registration Rights Agreement) with respect to the Registrable Securities within 90 calendar days of the Effective Date. Subject to certain exceptions, the Company is required to use commercially reasonable efforts maintain the effectiveness of any such registration statement until the date on which all Registrable Securities registered thereunder are no longer Registrable Securities. In addition, specified Holders have the right to demand that the Company effect the registration of any or all of the Registrable Securities (a Demand Registration) and/or effectuate the distribution of any or all of their Registrable Securities by means of an underwritten shelf takedown offering. The Company is not obligated to effect more than five Demand Registrations or more than four underwritten shelf takedown offerings and it need not comply with such a request unless the aggregate gross proceeds from such a sale will exceed specified thresholds and other conditions are met. The Company will not be obligated to effect an underwritten shelf takedown within 180 days after the consummation of a previous underwritten shelf takedown or Demand Registration. Holders also have customary piggyback registration rights, subject to the limitations set forth in the Registration Rights Agreement. These registration rights are subject to certain conditions and limitations, including the right of the underwriters to limit the number of shares to be included in a registration statement and the Company’s right to delay or withdraw a registration statement under certain circumstances. The Company will generally pay all registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. The registration rights granted in the Registration Rights Agreement are subject to customary indemnification and contribution provisions, as well as customary restrictions such as blackout periods. Share-Based Compensation As discussed above, on the Effective Date, the then existing common shares of the Predecessor were canceled and the New Common Stock was issued. Accordingly, the existing share-based compensation awards issued pursuant to the 2017 Equity and Performance Incentive Plan were also canceled, which resulted in the recognition of any previously unamortized expense related to the canceled awards on the date of cancellation. Management Incentive Plan Pursuant to the U.S. Plan, the reorganized Company adopted a new management incentive plan (the MIP). The U.S. Plan contemplates that 6% of the New Common Stock, on a fully diluted basis, is reserved for issuance in connection with the MIP. As of September 30, 2023, the terms of awards under the MIP have not been established; as such, no grants have been awarded pursuant to the MIP. Conversion to Delaware Corporation Pursuant to the U.S. Plan as and part of the Restructuring Proceedings, the Company was reincorporated as a Delaware corporation. Going Concern Assessment The Company's condensed consolidated financial statements included herein have been prepared using the going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the normal course of business. As discussed above, commencing June 1, 2023, the Debtors and the Dutch Scheme Parties were operating as debtors in possession under the supervision and jurisdiction of the U.S. Bankruptcy Court and the Dutch Court until the Effective Date, when the U.S. Plan and the WHOA Plan became effective in accordance with their terms and the Debtors and Dutch Scheme Parties emerged from the Chapter 11 Cases and Dutch Scheme Proceedings. Prior to and during the pendency of the Chapter 11 Cases and Dutch Scheme Proceedings, the Company’s ability to continue as a going concern was subject to a high degree of risk and uncertainty until the Plans were confirmed and became effective. As a result of the U.S. Plan and the WHOA Plan becoming effective on the Effective Date, the Company believes that it has the ability to meet its obligations for at least one year from the date of the issuance of this Form 10-Q and that there is no longer substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities Subject to Compromise During the pendency of the Chapter 11 Cases and Dutch Scheme Proceedings, prepetition liabilities of the Debtors and Dutch Scheme Parties subject to compromise under the Restructuring Proceedings were distinguished from liabilities that were not expected to be compromised and post-petition liabilities in our condensed consolidated balance sheets. Liabilities subject to compromise were recorded at the amounts expected to be allowed by the U.S. Bankruptcy Court. See Note 3 for a listing of liabilities subject to compromise immediately prior to the effectiveness of the Plans. The contractual interest expense on Debt that was classified as subject to compromise was in excess of recorded interest expense by $50.6 and $67.5 for the period from July 1, 2023 through August 11, 2023 and the period from January 1, 2023 through August 11, 2023, respectively. This excess contractual interest was not recorded as interest expense on the Predecessor's Condensed Consolidated Statements of Operations, as we had discontinued accruing interest on this debt and discontinued making interest payments beginning on June 1, 2023 in connection with filing of the plans. See Note 12 for further detail regarding Debt subject to compromise. Reorganization Items, Net The income, expenses, gains and losses directly and incrementally resulting from the Chapter 11 Cases and Dutch Scheme Proceedings are separately reported as Reorganization items, net in our condensed consolidated statement of operations. Reorganization items, net consisted of the following: Successor Predecessor Successor Predecessor 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 Gain on settlement of liabilities subject to compromise (non-cash) $ — $ 1,570.5 $ — $ 1,570.5 Fresh start valuation adjustments (non-cash) — 686.7 — 686.7 Professional fees (cash) (8.0) (35.2) (8.0) (38.7) Unamortized debt issuance costs (non-cash) — — — (124.6) DIP premium (non-cash) — 32.6 — (384.4) Debt make-whole premium (cash) — — — (91.0) Lease rejection damage claim (cash) — (3.8) — (3.8) Other (non-cash) — (0.5) — (0.6) Total Reorganization items, net $ (8.0) $ 2,250.3 $ (8.0) $ 1,614.1 Cash paid for Reorganization items, net was $4.7 and $107.2 for the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Period, respectively. Fresh Start Accounting As discussed in Note 1, upon emergence from the Chapter 11 Cases and Dutch Scheme Proceedings, the Company qualified for and adopted Fresh Start Accounting, which resulted in the Company becoming a new entity for financial reporting purposes (the Successor). The reorganization value derived from the range of enterprise values associated with the Plans was allocated to the Company’s identifiable tangible and intangible assets and liabilities based on their fair values (except for deferred income taxes) with the remaining excess value allocated to goodwill. As a result of the adoption of Fresh Start Accounting and the effects of the implementation of the Plans, the Company’s condensed consolidated financial statements of the Successor, are not comparable to its condensed consolidated financial statements of the Predecessor. Reorganization Value The Successor determined a value to be assigned to the equity of the emerging entity as of the date of adoption of Fresh Start Accounting. The Disclosure Statement approved in the Chapter 11 Cases (the Disclosure Statement) included a range of enterprise values between $2,150.0 and $2,450.0. The Company engaged third-party valuation advisors to assist in determining a point estimate of enterprise value within the range and the allocation of enterprise value to the assets and liabilities for financial reporting purposes based on management’s latest outlook as of the Effective Date. The Company deemed it appropriate to use an enterprise value of $2,150.0 for financial reporting . The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Fair value of Exit Facility (1,250.0) Less: Net pension, post-retirement and other benefits liability (39.3) Less: Other debt (13.9) Less: Noncontrolling interests (13.9) Fair Value of Successor Equity $ 1,039.0 The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Net pension, post-retirement and other benefits liability (39.3) Plus: Fair value of non-debt current liabilities 1,398.3 Plus: Fair value of non-debt, non-current liabilities 225.0 Plus: Deferred income taxes, non-current 238.5 Reorganization Value of Successor's Assets to be Allocated $ 4,178.6 The discounted cash flow (DCF) method, a form of the income approach, was relied upon to validate the selected enterprise value of the Company within the range established within the Disclosure Statement, as well as to allocate the resulting consolidated enterprise value between the Company’s two reporting units. The DCF method is a multiple period discounting model in which the value of an entity is determined based on the present value of its expected future economic benefits. For purposes of our analysis, we used free cash flow, defined as the earnings available for distribution to an entity’s investors after consideration of the cash reinvestment required to support the Company’s continued operations and future growth. Conceptually, free cash flow as defined above is the amount that could be paid to investors without impairing an entity’s current or future operations. The expected cash flows for the period from August 12, 2023 through December 31, 2023 and for the years ending December 31, 2024 through 2028 were based on the financial projections and assumptions utilized as an input to determining the range of enterprise values in the Disclosure Statement. The expected cash flows beyond this period were based on long-term profitability and growth expectations. A terminal value was included, based on the cash flows of the final year of the discrete forecast period. Discount rates of 19.0% and 19.0% were estimated for the Company’s Banking and Retail reporting units, respectively, based on an after-tax weighted average cost of capital (WACC) reflecting the rate of return that would be expected by a market participant. The WACC also takes into consideration a company specific risk premium reflecting the risk associated with the financial projections used to estimate future cash flows. These discount rates were also compared to the consolidated internal rate of return (IRR) of 18.9% to assess reasonableness. The IRR is the rate of return that equates the present value of the expected consolidated cash flows to the enterprise value relied upon within the range established in the Disclosure Statement. The enterprise value and corresponding equity value are dependent upon achieving the future financial results set forth in our projections. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to uncertainties and the resolution of contingencies beyond our control. Accordingly, there cannot be assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. Valuation Process The Company estimated the fair values of the Company’s principal assets, including inventory, property, plant, and equipment, and intangible assets as well as the Company’s lease liabilities and the Exit Facility. Inventory The replacement value of the Company’s raw materials inventory was considered as its fair value. The comparative sales method was employed to estimate the fair value of the Company’s work-in-process and finished goods inventory. The comparative sales method utilizes the expected selling price of the inventory items as the base inventory value amount. This amount is then adjusted downward for costs and expenses associated with the time and effort that would be required to dispose of the inventory and a reasonable profit. Property, plant, and equipment Personal Property Personal property consisted of machinery, tools, equipment, furniture and fixtures, leasehold improvements, computer and equipment, and construction in progress. The cost approach was primarily utilized for the Company's personal property. This approach considers the amount required to construct or purchase a new asset of equal utility at current prices, with adjustments in value for physical deterioration, and functional and economic obsolescence. Physical deterioration is an adjustment made in the cost approach to reflect the real operating age of an asset with regard to wear and tear, decay and deterioration that is not prevented by maintenance. Functional obsolescence is the loss in value or usefulness of an asset caused by inefficiencies or inadequacies of the asset, as compared to a more efficient or less costly replacement asset with newer technology. Economic obsolescence is the loss in value or usefulness of an asset due to factors external to the asset, such as the economics of the industry, reduced demand, increased competition or similar factors. Land and Building Improvements The valuation of land, land improvements, buildings and building improvements was performed using either the cost, income capitalization or sales comparison approach, depending on the nature of the asset. The cost approach was utilized for the Company’s owned industrial facilities. The income capitalization approach was used to value the Company’s interests in an industrial complex. The income capitalization approach measures the value of a property by calculating the present value of the future economic benefits associated with the property. The sales comparison approach was used for certain owned vacant land and relies upon recent sales or similar offerings to arrive at a probable selling price. Intangible Assets Tradenames and Trademarks and Technology / Know-How Assets The relief from royalty method was relied upon to value the trade names and trademarks and technology / know-how assets. The relief from royalty analysis is comprised of two major steps: (i) a determination of an appropriate royalty rate, and (ii) the subsequent application of the royalty rate to projected revenue. In determining an appropriate royalty rate, the Company considered comparable license agreements, an excess earnings analysis to determine aggregate intangible asset earnings, and other qualitative factors. The key assumptions used to estimate the fair value of the Company’s trade names and trademarks and technology / know-how assets included forecasted revenues, the royalty rate, the tax rate and the discount rate. The relief from royalty method was relied upon for these valuations. The relief from royalty method measures the benefit of owning an intangible asset as the “relief” from the royalty expense that would otherwise be incurred by licensing the asset from a third party. It assumes that if the Company did not own the intangible asset, then it would be willing to pay a royalty for its use. This method is most commonly used for readily transferable intangible assets that have licensing appeal, such as intellectual property. Customer Relationship and Backlog Assets The customer relationships and backlog assets were valued using the multi-period excess earnings method, a variation of the income approach. For the customer relationships assets, revenues attributable to customer assets were determined and an attrition rate based on historical customer trends was applied to estimate the expected decline anticipated from the existing customer population. The cash flows attributable to the customer relationships and backlog assets were also determined by applying appropriate costs and contributory asset charges then adjusted using a discount rate that is commensurate with the risk inherent in the customer-related intangible assets. The key assumptions used to estimate the fair value of the customer-related assets included forecasted revenues, attrition rates, profit margins, contributory asset charges, the tax rate and the discount rate. Joint ventures To estimate the value of the joint ventures, the DCF method was employed to determine the enterprise value of these entities. Adjustments for cash and cash equivalents and interest-bearing debt were made to enterprise value to calculate each entity’s equity value. The application of a discount for lack of control was also considered. Lastly, the concluded equity value was adjusted for the Company’s ownership interest. Lease liabilities and right of use assets Lease liabilities were estimated as the present value of the remaining lease payments. The Company estimated an incremental borrowing rate and used it as the discount rate in the analysis. Right of use asset values were estimated by adjusting the lease liability estimates with estimates of off-market value of leases. Off-market (or above/below market) value was estimated as the present value of the differential between contract rates and market rates over the remaining term of a lease. Exit Facility To estimate the value of the Exit Facility, a DCF method was employed. The fair value of the Exit Facility was estimated by analyzing the expected cash flows and discounting such cash flows at a rate of return that reflects the time value of money and credit risk of the Company. The credit risk of the Company was determined via a synthetic credit rating analysis, and the concluded discount rate was determined by analyzing comparable corporate debt instruments and their observed market yields. Noncontrolling interests To estimate the value of the non-controlling interests, the DCF method was employed to determine the enterprise value of these entities. Adjustments for cash and cash equivalents and interest-bearing debt were made to enterprise value to calculate each entities’ equity value. The application of a discount for lack of control was also considered. Lastly, the concluded equity value was adjusted for the non-controlling interest’s ownership position. Consolidated Balance Sheet The adjustments included in the following fresh start condensed consolidated balance sheet reflect the effects of the transactions contemplated by the Plans and executed by the Company on the Fresh Start Reporting Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information and significant assumptions with regard to the adjustments recorded and the methods used to determine the fair values. Predecessor Reorganization Adjustments (1) Fresh Start Accounting Adjustments Successor August 11, 2023 August 12, 2023 ASSETS Current assets Cash and cash equivalents $ 404.9 $ (13.5) (2) $ — $ 391.4 Restricted cash 60.8 — — 60.8 Short-term investments 13.9 — — 13.9 Trade receivables, less allowances for doubtful accounts 623.9 — — 623.9 Inventories 712.8 — 32.8 (17) 745.6 Prepaid expenses 49.1 (3.5) (3) — 45.6 Current assets held for sale 9.9 — — 9.9 Other current assets 247.8 — — 247.8 Total current assets 2,123.1 (17.0) 32.8 2,138.9 Securities and other investments 7.0 — — 7.0 Property, plant, and equipment, net of accumulated depreciation and amortization 120.3 — 46.2 (18) 166.5 Deferred income taxes — 70.3 (4) (10.8) (19) 59.5 Goodwill 714.3 — (93.3) (20) 621.0 Customer relationships, net 176.1 — 378.2 (21) 554.3 Other intangible assets, net 45.1 — 320.0 (22) 365.1 Other assets 256.8 — 9.5 (23) 266.3 Total assets $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 LIABILITIES AND EQUITY Current liabilities Notes payable $ 1,254.9 $ (1,250.0) (5) $ — $ 4.9 Accounts payable 461.0 — — 461.0 Deferred revenue 421.0 — — 421.0 Payroll and other benefits liabilities 159.2 (0.1) (6) — 159.1 Current liabilities held for sale 10.2 — 0.7 (24) 10.9 DIP facility premium 384.4 (384.4) (7) — — Other current liabilities 343.3 5.5 (8) 1.5 (25) 350.3 Total current liabilities 3,034.0 (1,629.0) 2.2 1,407.2 Long-term debt 4.2 1,248.7 (9) 0.8 (26) 1,253.7 Pensions, post-retirement and other benefits 102.3 — (0.3) (27) 102.0 Deferred income taxes 85.8 (26.4) (4) 179.1 (19) 238.5 Other liabilities 120.3 — 4.0 (28) 124.3 Liabilities subject to compromise 2,232.4 (2,232.4) (10) — — Total liabilities $ 5,579.0 (2,639.1) 185.8 3,125.7 Equity Diebold Nixdorf, Incorporated shareholders' equity Predecessor common shares 121.2 (121.2) (11) — — Successor common stock — 0.4 (12) — 0.4 Paid-in capital; predecessor 832.3 (442.3) (13) (390.0) (29) — Paid-in capital; successor — 1,038.6 (14) — 1,038.6 Retained earnings (accumulated deficit) (2,204.8) 1,659.4 (15) 545.4 (29) — Treasury shares, at cost (586.4) 586.4 (13) — — Accumulated other comprehensive income (loss) (320.0) (8.8) (16) 328.8 (29) — Equity warrants 20.1 (20.1) (13) — — Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) (2,137.6) 2,692.4 484.2 1,039.0 Noncontrolling interests 1.3 — 12.6 (30) 13.9 Total equity (deficit) (2,136.3) 2,692.4 496.8 1,052.9 Total liabilities and equity (deficit) $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 Reorganization Adjustments (1) Represent amounts recorded as of the Fresh Start Reporting Date for the implementation of the Plans, including, among other items, settlement of the Predecessor's liabilities subject to compromise, distributions of cash, conversion of the DIP Facility to the Exit Facility, and the issuance of the Successor common stock. (2) Changes in cash and cash equivalents include the following: Payment of interest on the DIP Facility $ (1.8) Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Payment of lease rejection damages (3.8) Payment of professional fees (4.4) Net change in cash and cash equivalents $ (13.5) (3) Reflects the elimination of prepaid directors and officers insurance policies related to the Predecessor. (4) Change in deferred tax assets and liabilities as a result of release of valuation allowance, partially offset by reduc |
Earning Per Share
Earning Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Loss) Per Share Basic earnings (loss) per share is based on the weighted-average number of shares of common stock outstanding. Diluted earnings per share includes the dilutive effect of shares of potential common stock outstanding. Under the two-class method of computing earnings (loss) per share, non-vested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. During the Predecessor Periods, the Company’s participating securities include restricted stock units (RSUs), director deferred shares and shares that vested but were deferred by employees. There were no participating securities in the Successor Period. The Company calculated basic and diluted earnings (loss) per share under both the treasury stock method and the two-class method. For the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Periods of July 1, 2023 through August 11, 2023, January 1, 2023 through August 11, 2023, and the three and nine months ended September 30, 2022, there were no differences in the earnings (loss) per share amounts calculated using the two methods. Accordingly, the treasury stock method is disclosed below; however, because the Company is in a net loss position in the Successor Period and in the three and nine months ended September 30, 2022, dilutive shares are excluded from the shares used in the computation of diluted loss per share. The following table represents amounts used in computing earnings (loss) per share and the effect on the weighted-average number of shares of potential dilutive common stock: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Numerator Income (loss) used in basic and diluted loss per share Net income (loss) $ (25.8) $ 2,146.3 $ (50.5) Net income (loss) attributable to noncontrolling interests 0.7 (0.2) (0.7) Net income (loss) attributable to Diebold Nixdorf, Incorporated $ (26.5) $ 2,146.5 $ (49.8) Denominator Weighted-average number of shares of common stock used in basic earnings (loss) per share 37.6 80.0 79.1 Effect of dilutive shares (1) — 1.4 — Weighted-average number of shares used in diluted earnings (loss) per share 37.6 81.4 79.1 Net income (loss) attributable to Diebold Nixdorf, Incorporated Basic earnings (loss) per share $ (0.70) $ 26.83 $ (0.63) Diluted earnings (loss) per share (0.70) 26.37 (0.63) Anti-dilutive shares Anti-dilutive shares not used in calculating diluted weighted-average shares — 1.9 4.1 (1) Shares of 1.8 for Predecessor Period of the three months ended September 30, 2022 are excluded from the computation of diluted loss per share because the effects are anti-dilutive, due to the net loss position. Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Numerator Income (loss) used in basic and diluted loss per share Net income (loss) $ (25.8) $ 1,357.5 $ (433.5) Net income (loss) attributable to noncontrolling interests 0.7 (0.8) (1.4) Net income (loss) attributable to Diebold Nixdorf, Incorporated $ (26.5) $ 1,358.3 $ (432.1) Denominator Weighted-average number of shares of common stock used in basic earnings (loss) per share 37.6 79.7 78.9 Effect of dilutive shares (1) — 1.7 — Weighted-average number of shares used in diluted earnings (loss) per share 37.6 81.4 78.9 Net income (loss) attributable to Diebold Nixdorf, Incorporated Basic earnings (loss) per share $ (0.70) $ 17.04 $ (5.48) Diluted earnings (loss) per share $ (0.70) $ 16.69 $ (5.48) Anti-dilutive shares Anti-dilutive shares not used in calculating diluted weighted-average shares — 2.1 4.2 (1) Shares of 1.4 for the Predecessor Period of the nine months ended September 30, 2022, respectively, are excluded from the computation of diluted loss per share because the effects are anti-dilutive, due to the net loss position. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income Taxes |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Inventories Major classes of inventories are summarized as follows: Successor Predecessor September 30, 2023 December 31, 2022 Raw materials and work in process $ 192.8 $ 200.6 Finished goods 303.6 229.4 Total product inventories 496.4 430.0 Service parts 169.8 158.1 Total inventories $ 666.2 $ 588.1 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | InvestmentsThe Company’s investments, primarily held by our subsidiaries in Brazil, consist of certificates of deposit that are recorded at fair value based upon quoted market prices. Changes in fair value are recognized in interest income, determined using the specific identification method, and were minimal. There were no sales of securities or proceeds from the sale of securities prior to the maturity date during the Successor or Predecessor Periods. The Predecessor had deferred compensation plans that enable certain employees to defer receipt of a portion of their cash, 401(k) or share-based compensation and enable non-employee directors to defer receipt of director fees at the participants’ discretion. The Successor has deferred compensation plans that provide directors and certain employees the opportunity to defer receipt of all or a portion of their cash or share-based compensation. For deferred cash-based compensation, the Company established rabbi trusts (refer to Note 18), which are recorded at fair value of the underlying securities and presented within securities and other investments. The related deferred compensation liability is recorded at fair value and presented within other long-term liabilities. Realized and unrealized gains and losses on marketable securities in the rabbi trusts are recognized in interest income. The Company’s investments subject to fair value measurement consist of the following: Cost Basis Unrealized Fair Value As of September 30, 2023 (Successor) Short-term investments Certificates of deposit $ 16.6 $ — $ 16.6 Long-term investments Assets held in a rabbi trust $ 2.4 $ 0.4 $ 2.8 As of December 31, 2022 (Predecessor) Short-term investments Certificates of deposit $ 24.6 $ — $ 24.6 Long-term investments Assets held in a rabbi trust $ 4.3 $ 0.1 $ 4.4 Securities and other investments also includes cash surrender value of insurance contracts of $3.0 and $3.2 as of September 30, 2023 (Successor) and December 31, 2022 (Predecessor), respectively. |
Guarantees and Product Warranti
Guarantees and Product Warranties | 9 Months Ended |
Sep. 30, 2023 | |
Guarantees and Product Warranties Disclosure [Abstract] | |
GUARANTEES AND PRODUCT WARRANTIES | Product Warranties The Company provides its customers a standard manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. Estimated future obligations due to warranty claims are based upon historical factors such as labor rates, average repair time, travel time, number of service calls per machine and cost of replacement parts. As of August 11, 2023, management determined that the carrying value of the warranty accrual approximated the fair value; therefore, no fair value adjustment for fresh start accounting was recorded. Changes in the Company’s warranty liability balance are illustrated in the following tables: 2023 Beginning balance as of January 1 (Predecessor) $ 28.3 Current period accruals 18.8 Current period settlements (21.9) Currency translation adjustment 1.4 Beginning balance as of August 12 (Successor) 26.6 Current period accruals 3.9 Current period settlements (4.1) Currency translation adjustment (1.2) Ending balance as of September 30 (Successor) $ 25.2 2022 Beginning balance as of January 1 (Predecessor) $ 36.3 Current period accruals 12.2 Current period settlements (17.0) Currency translation adjustment (2.6) Ending balance as of September 30 (Predecessor) $ 28.9 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER CHARGES | RestructuringIn the second quarter of 2022, the Company announced a new initiative to streamline operations, drive efficiencies and digitize processes, targeting annualized cost savings of more than $150.0 by the end of 2023. During the period from August 12, 2023 through September 30, 2023 and the period from July 1, 2023 through August 11, 2023, the Company incurred $6.2 and $5.3 of restructuring and transformation costs, respectively. $4.3 of accruals were reversed in the Successor period. During the three and nine month periods ended September 30, 2022, the Company incurred $20.7 and $98.9, respectively, of restructuring and transformation costs. The most significant of these costs was $54.9, all recorded in the second quarter of 2022, that was accrued for future severance payments under an ongoing severance benefit program. The remainder of the expenses incurred primarily relates to transitioning personnel and consultant fees in relation to the transformation process. As of August 11, 2023, management determined that the carrying value of the restructuring accrual approximated the fair value; therefore, no fair value adjustment for fresh start accounting was recorded. The following tables summarizes the impact of the Company’s restructuring and transformation charges on the consolidated statements of operations: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Cost of sales – services $ (2.5) $ 1.1 $ 3.0 Cost of sales – products (1.8) 0.2 1.3 Selling and administrative expense 9.9 3.0 13.9 Research, development and engineering expense 0.1 0.4 2.5 Loss on sale of assets, net 0.5 0.6 — Total $ 6.2 $ 5.3 $ 20.7 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Cost of sales – services $ (2.5) $ 5.3 $ 7.4 Cost of sales – products (1.8) 0.8 10.0 Selling and administrative expense 9.9 29.4 71.7 Research, development and engineering expense 0.1 1.5 9.8 Loss on sale of assets, net 0.5 1.9 — Total $ 6.2 $ 38.9 $ 98.9 The following table summarizes the Company’s severance accrual balance and related activity: 2023 Beginning balance as of January 1 (Predecessor) $ 44.2 Severance accrual 6.8 Payout/Settlement (37.0) Other 0.4 Beginning balance as of August 12 (Successor) 14.4 Severance accrual 3.3 Payout/Settlement (5.4) Other (0.3) Ending balance as of September 30 (Successor) $ 12.0 2022 Beginning balance as of January 1 (Predecessor) $ 35.3 Severance accrual 54.9 Payout/Settlement (35.6) Other (0.3) Ending balance as of September 30 (Predecessor) $ 54.3 |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as Going Concern and Other Related Matters Voluntary Reorganization On June 1, 2023, the Company and certain of its U.S. and Canadian subsidiaries (collectively, the Debtors) filed voluntary petitions in the U.S. Bankruptcy Court for the Southern District of Texas (the U.S. Bankruptcy Court) seeking relief under chapter 11 of title 11 of the U.S. Code (the U.S. Bankruptcy Code). The cases were jointly administered under the caption In re: Diebold Holding Company, LLC, et al. (Case No. 23-90602) (the Chapter 11 Cases). Additionally, on June 1, 2023, Diebold Nixdorf Dutch Holding B.V. (Diebold Dutch) filed a scheme of arrangement relating to certain of the Company’s other subsidiaries (the Dutch Scheme Parties) and commenced voluntary proceedings (the Dutch Scheme Proceedings and, together with the Chapter 11 Cases, the Restructuring Proceedings) under the Dutch Act on Confirmation of Extrajudicial Plans (Wet homologatie onderhands akkoord) in the District Court of Amsterdam (the Dutch Court). In addition, on June 12, 2023, Diebold Dutch filed a voluntary petition for relief under chapter 15 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court seeking recognition of the Dutch Scheme Proceedings as a foreign main proceedings and related relief (the Chapter 15 Proceedings). On July 13, 2023, the U.S. Bankruptcy Court entered an order (the Confirmation Order) confirming the Debtors’ Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization (the U.S. Plan). On August 2, 2023, the Dutch Court entered an order (the WHOA Sanction Order) sanctioning the Netherlands WHOA Plan of Diebold Dutch and the Dutch Scheme Companies (the WHOA Plan) in the Dutch Scheme Proceedings. On August 7, 2023, the U.S. Bankruptcy Court entered an order in the Chapter 15 Proceedings recognizing the WHOA Plan and the WHOA Sanction Order. On August 11, 2023 (the Effective Date or Fresh Start Reporting Date), the U.S. Plan and WHOA Plan (together, the Plans) became effective in accordance with their terms and the Debtors and the Dutch Scheme Parties emerged from the Chapter 11 Cases and the Dutch Scheme Proceedings. Following filing the notice of the Effective Date with the U.S. Bankruptcy Court, the Chapter 15 Proceedings were closed. The following is a summary of the material provisions of the U.S. Plan, as confirmed by the U.S. Bankruptcy Court pursuant to the Confirmation Order, and the WHOA Plan (as applicable), as sanctioned by the Dutch Court, and are qualified in its entirety by reference to the full text of the Plans (including the Plan Supplement). Capitalized terms used but not defined in the following "Treatment of Claims" section of this Quarterly Report on Form 10-Q have the meanings set forth in the U.S. Plan. Treatment of Claims The following is a high-level summary of the treatment of claims and interests under the Plans (as applicable), which is qualified in its entirety by the terms of the Plans (as applicable): • Holders of Other Secured Claims . Each holder of allowed Other Secured Claims received, at the Company’s option: (a) payment in full in cash; (b) the collateral securing its secured claim; (c) reinstatement of its secured claim; or (d) such other treatment rendering its secured claim unimpaired in accordance with section 1124 of the U.S. Bankruptcy Code. • Holders of Other Priority Claims . Each holder of allowed Other Priority Claims received, at the Company’s option: (a) payment in full in cash; or (b) such other treatment rendering its other priority claim unimpaired in accordance with section 1124 of the U.S. Bankruptcy Code. • Holders of ABL Facility Claims . Prior to the Effective Date, allowed ABL Facility Claims were paid in full and any letters of credit were cash collateralized. • Holders of Superpriority Term Loan Claims . Prior to the Effective Date, allowed Superpriority Term Loan Claims were paid in full. • Holders of First Lien Claims . On the Effective Date, each holder of allowed First Lien Claims received its pro rata share of 98% of the reorganized Company’s new common equity interests (the New Common Stock) available for distribution to certain creditors under the Plans, which is subject to dilution on account of (a) the issuance of the New Common Stock (the Additional New Common Stock) as premiums in consideration for commitments with respect to the Debtors’ $1,250.0 debtor-in-possession term loan credit facility (the DIP Facility) and (b) a new management incentive plan implemented in connection with the Chapter 11 Cases pursuant to which 6% of the number of shares of New Common Stock issued pursuant to the U.S. Plan on a fully diluted basis (the MIP Shares) were reserved for issuance to management as determined by the reorganized Company’s new Board of Directors. • Holders of Second Lien Notes Claims . On the Effective Date, each holder of allowed Second Lien Notes Claims received its pro rata share of 2% of the New Common Stock available for distribution to creditors under the Plans, which is subject to dilution on account of (a) the issuance of certain of the Additional New Common Stock and (b) the MIP Shares. • Holders of 2024 Stub Unsecured Notes Claims . On the Effective Date, each holder of allowed 2024 Stub Unsecured Notes Claims received its pro rata share of an amount of a $3.5 cash distribution, which provided such holder with the same percentage recovery on its allowed 2024 Stub Unsecured Notes Claim that a holder of an allowed Second Lien Notes Claim received in respect of its allowed Second Lien Notes Claim (as diluted on account of the Additional New Common Stock, as applicable) under the U.S. Plan based upon the midpoint of the equity value of the New Common Stock as set forth in the Disclosure Statement approved in the Chapter 11 Cases (the Disclosure Statement). • Holders of General Unsecured Claims . On the Effective Date, each allowed General Unsecured Claim was reinstated and paid in the ordinary course of business in accordance with the terms and conditions of the particular transaction or agreement giving rise to such allowed general unsecured claim. • Holders of Section 510(b) Claims . On the Effective Date, claims subject to section 510(b) of the U.S. Bankruptcy Code were either extinguished, cancelled and discharged, and holders thereof received no distributions from the Debtors in respect of their claims. • DNI Equity Holders . Each holder of an equity interest in Diebold Nixdorf, Incorporated had such interest extinguished, cancelled and discharged without any distribution. The Exit Credit Agreement On the Effective Date, the Company, as borrower, entered into a new credit agreement (the Exit Credit Agreement) governing its $1,250.0 senior secured loan credit facility (the Exit Facility) along with certain financial institutions party thereto, as lenders, GLAS USA LLC, as administrative agent, and GLAS Americas LLC, as collateral agent. Concurrently with the closing of the Exit Facility, the Company’s existing $1,250.0 senior secured superpriority debtor-in-possession term loan credit facility (the DIP Facility) was terminated and the loans outstanding under the DIP Facility were converted into loans outstanding under the Exit Facility (the Conversion), and the liens and guarantees, including all guarantees and liens granted by certain subsidiaries of the Company that are organized in the United States and in certain foreign jurisdictions, granted under the DIP Facility were automatically terminated and released. In connection with the Conversion, the entire $1,250.0 under the Exit Facility was deemed drawn on the Effective Date. The Company may repay the loans under the Exit Facility at any time; provided that certain repayments of the loans made on or prior to February 11, 2025 with the proceeds of certain types of indebtedness must be accompanied by a premium of either 1.00% or 5.00% of the principal amount of the loans repaid. The amount of the premium is based on the type of indebtedness incurred to repay the loans. Amounts borrowed and repaid under the Exit Facility may not be reborrowed. The Exit Facility will mature on August 11, 2028. The obligations of the Company under the Exit Facility are guaranteed by certain subsidiaries of the Company that are organized in the United States (the Guarantors). The Exit Facility and related guarantees are secured by perfected senior security interests and liens on substantially all assets of the Company and each Guarantor. Loans under the Exit Facility bear interest at an adjusted secured overnight financing rate with a one-month tenor rate plus 7.50% per annum or an adjusted base rate plus 6.50% per annum. The Exit Facility includes conditions precedent, representations and warranties, affirmative and negative covenants and events of default that are customary for financings of this type and size. Registration Rights Agreement On the Effective Date, the Company entered into a registration rights agreement (the Registration Rights Agreement) with certain parties (together with any person or entity that becomes a party to the Registration Rights Agreement, the Holders) that received shares of the New Common Stock on the Effective Date as provided in the Plans. The Registration Rights Agreement provides Holders with registration rights for the Holders’ Registrable Securities (as defined in the Registration Rights Agreement). Pursuant to the Registration Rights Agreement, the Company is required to file a Resale Shelf Registration Statement (as defined in the Registration Rights Agreement) with respect to the Registrable Securities within 90 calendar days of the Effective Date. Subject to certain exceptions, the Company is required to use commercially reasonable efforts maintain the effectiveness of any such registration statement until the date on which all Registrable Securities registered thereunder are no longer Registrable Securities. In addition, specified Holders have the right to demand that the Company effect the registration of any or all of the Registrable Securities (a Demand Registration) and/or effectuate the distribution of any or all of their Registrable Securities by means of an underwritten shelf takedown offering. The Company is not obligated to effect more than five Demand Registrations or more than four underwritten shelf takedown offerings and it need not comply with such a request unless the aggregate gross proceeds from such a sale will exceed specified thresholds and other conditions are met. The Company will not be obligated to effect an underwritten shelf takedown within 180 days after the consummation of a previous underwritten shelf takedown or Demand Registration. Holders also have customary piggyback registration rights, subject to the limitations set forth in the Registration Rights Agreement. These registration rights are subject to certain conditions and limitations, including the right of the underwriters to limit the number of shares to be included in a registration statement and the Company’s right to delay or withdraw a registration statement under certain circumstances. The Company will generally pay all registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. The registration rights granted in the Registration Rights Agreement are subject to customary indemnification and contribution provisions, as well as customary restrictions such as blackout periods. Share-Based Compensation As discussed above, on the Effective Date, the then existing common shares of the Predecessor were canceled and the New Common Stock was issued. Accordingly, the existing share-based compensation awards issued pursuant to the 2017 Equity and Performance Incentive Plan were also canceled, which resulted in the recognition of any previously unamortized expense related to the canceled awards on the date of cancellation. Management Incentive Plan Pursuant to the U.S. Plan, the reorganized Company adopted a new management incentive plan (the MIP). The U.S. Plan contemplates that 6% of the New Common Stock, on a fully diluted basis, is reserved for issuance in connection with the MIP. As of September 30, 2023, the terms of awards under the MIP have not been established; as such, no grants have been awarded pursuant to the MIP. Conversion to Delaware Corporation Pursuant to the U.S. Plan as and part of the Restructuring Proceedings, the Company was reincorporated as a Delaware corporation. Going Concern Assessment The Company's condensed consolidated financial statements included herein have been prepared using the going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the normal course of business. As discussed above, commencing June 1, 2023, the Debtors and the Dutch Scheme Parties were operating as debtors in possession under the supervision and jurisdiction of the U.S. Bankruptcy Court and the Dutch Court until the Effective Date, when the U.S. Plan and the WHOA Plan became effective in accordance with their terms and the Debtors and Dutch Scheme Parties emerged from the Chapter 11 Cases and Dutch Scheme Proceedings. Prior to and during the pendency of the Chapter 11 Cases and Dutch Scheme Proceedings, the Company’s ability to continue as a going concern was subject to a high degree of risk and uncertainty until the Plans were confirmed and became effective. As a result of the U.S. Plan and the WHOA Plan becoming effective on the Effective Date, the Company believes that it has the ability to meet its obligations for at least one year from the date of the issuance of this Form 10-Q and that there is no longer substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities Subject to Compromise During the pendency of the Chapter 11 Cases and Dutch Scheme Proceedings, prepetition liabilities of the Debtors and Dutch Scheme Parties subject to compromise under the Restructuring Proceedings were distinguished from liabilities that were not expected to be compromised and post-petition liabilities in our condensed consolidated balance sheets. Liabilities subject to compromise were recorded at the amounts expected to be allowed by the U.S. Bankruptcy Court. See Note 3 for a listing of liabilities subject to compromise immediately prior to the effectiveness of the Plans. The contractual interest expense on Debt that was classified as subject to compromise was in excess of recorded interest expense by $50.6 and $67.5 for the period from July 1, 2023 through August 11, 2023 and the period from January 1, 2023 through August 11, 2023, respectively. This excess contractual interest was not recorded as interest expense on the Predecessor's Condensed Consolidated Statements of Operations, as we had discontinued accruing interest on this debt and discontinued making interest payments beginning on June 1, 2023 in connection with filing of the plans. See Note 12 for further detail regarding Debt subject to compromise. Reorganization Items, Net The income, expenses, gains and losses directly and incrementally resulting from the Chapter 11 Cases and Dutch Scheme Proceedings are separately reported as Reorganization items, net in our condensed consolidated statement of operations. Reorganization items, net consisted of the following: Successor Predecessor Successor Predecessor 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 Gain on settlement of liabilities subject to compromise (non-cash) $ — $ 1,570.5 $ — $ 1,570.5 Fresh start valuation adjustments (non-cash) — 686.7 — 686.7 Professional fees (cash) (8.0) (35.2) (8.0) (38.7) Unamortized debt issuance costs (non-cash) — — — (124.6) DIP premium (non-cash) — 32.6 — (384.4) Debt make-whole premium (cash) — — — (91.0) Lease rejection damage claim (cash) — (3.8) — (3.8) Other (non-cash) — (0.5) — (0.6) Total Reorganization items, net $ (8.0) $ 2,250.3 $ (8.0) $ 1,614.1 Cash paid for Reorganization items, net was $4.7 and $107.2 for the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Period, respectively. Fresh Start Accounting As discussed in Note 1, upon emergence from the Chapter 11 Cases and Dutch Scheme Proceedings, the Company qualified for and adopted Fresh Start Accounting, which resulted in the Company becoming a new entity for financial reporting purposes (the Successor). The reorganization value derived from the range of enterprise values associated with the Plans was allocated to the Company’s identifiable tangible and intangible assets and liabilities based on their fair values (except for deferred income taxes) with the remaining excess value allocated to goodwill. As a result of the adoption of Fresh Start Accounting and the effects of the implementation of the Plans, the Company’s condensed consolidated financial statements of the Successor, are not comparable to its condensed consolidated financial statements of the Predecessor. Reorganization Value The Successor determined a value to be assigned to the equity of the emerging entity as of the date of adoption of Fresh Start Accounting. The Disclosure Statement approved in the Chapter 11 Cases (the Disclosure Statement) included a range of enterprise values between $2,150.0 and $2,450.0. The Company engaged third-party valuation advisors to assist in determining a point estimate of enterprise value within the range and the allocation of enterprise value to the assets and liabilities for financial reporting purposes based on management’s latest outlook as of the Effective Date. The Company deemed it appropriate to use an enterprise value of $2,150.0 for financial reporting . The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Fair value of Exit Facility (1,250.0) Less: Net pension, post-retirement and other benefits liability (39.3) Less: Other debt (13.9) Less: Noncontrolling interests (13.9) Fair Value of Successor Equity $ 1,039.0 The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Net pension, post-retirement and other benefits liability (39.3) Plus: Fair value of non-debt current liabilities 1,398.3 Plus: Fair value of non-debt, non-current liabilities 225.0 Plus: Deferred income taxes, non-current 238.5 Reorganization Value of Successor's Assets to be Allocated $ 4,178.6 The discounted cash flow (DCF) method, a form of the income approach, was relied upon to validate the selected enterprise value of the Company within the range established within the Disclosure Statement, as well as to allocate the resulting consolidated enterprise value between the Company’s two reporting units. The DCF method is a multiple period discounting model in which the value of an entity is determined based on the present value of its expected future economic benefits. For purposes of our analysis, we used free cash flow, defined as the earnings available for distribution to an entity’s investors after consideration of the cash reinvestment required to support the Company’s continued operations and future growth. Conceptually, free cash flow as defined above is the amount that could be paid to investors without impairing an entity’s current or future operations. The expected cash flows for the period from August 12, 2023 through December 31, 2023 and for the years ending December 31, 2024 through 2028 were based on the financial projections and assumptions utilized as an input to determining the range of enterprise values in the Disclosure Statement. The expected cash flows beyond this period were based on long-term profitability and growth expectations. A terminal value was included, based on the cash flows of the final year of the discrete forecast period. Discount rates of 19.0% and 19.0% were estimated for the Company’s Banking and Retail reporting units, respectively, based on an after-tax weighted average cost of capital (WACC) reflecting the rate of return that would be expected by a market participant. The WACC also takes into consideration a company specific risk premium reflecting the risk associated with the financial projections used to estimate future cash flows. These discount rates were also compared to the consolidated internal rate of return (IRR) of 18.9% to assess reasonableness. The IRR is the rate of return that equates the present value of the expected consolidated cash flows to the enterprise value relied upon within the range established in the Disclosure Statement. The enterprise value and corresponding equity value are dependent upon achieving the future financial results set forth in our projections. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to uncertainties and the resolution of contingencies beyond our control. Accordingly, there cannot be assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. Valuation Process The Company estimated the fair values of the Company’s principal assets, including inventory, property, plant, and equipment, and intangible assets as well as the Company’s lease liabilities and the Exit Facility. Inventory The replacement value of the Company’s raw materials inventory was considered as its fair value. The comparative sales method was employed to estimate the fair value of the Company’s work-in-process and finished goods inventory. The comparative sales method utilizes the expected selling price of the inventory items as the base inventory value amount. This amount is then adjusted downward for costs and expenses associated with the time and effort that would be required to dispose of the inventory and a reasonable profit. Property, plant, and equipment Personal Property Personal property consisted of machinery, tools, equipment, furniture and fixtures, leasehold improvements, computer and equipment, and construction in progress. The cost approach was primarily utilized for the Company's personal property. This approach considers the amount required to construct or purchase a new asset of equal utility at current prices, with adjustments in value for physical deterioration, and functional and economic obsolescence. Physical deterioration is an adjustment made in the cost approach to reflect the real operating age of an asset with regard to wear and tear, decay and deterioration that is not prevented by maintenance. Functional obsolescence is the loss in value or usefulness of an asset caused by inefficiencies or inadequacies of the asset, as compared to a more efficient or less costly replacement asset with newer technology. Economic obsolescence is the loss in value or usefulness of an asset due to factors external to the asset, such as the economics of the industry, reduced demand, increased competition or similar factors. Land and Building Improvements The valuation of land, land improvements, buildings and building improvements was performed using either the cost, income capitalization or sales comparison approach, depending on the nature of the asset. The cost approach was utilized for the Company’s owned industrial facilities. The income capitalization approach was used to value the Company’s interests in an industrial complex. The income capitalization approach measures the value of a property by calculating the present value of the future economic benefits associated with the property. The sales comparison approach was used for certain owned vacant land and relies upon recent sales or similar offerings to arrive at a probable selling price. Intangible Assets Tradenames and Trademarks and Technology / Know-How Assets The relief from royalty method was relied upon to value the trade names and trademarks and technology / know-how assets. The relief from royalty analysis is comprised of two major steps: (i) a determination of an appropriate royalty rate, and (ii) the subsequent application of the royalty rate to projected revenue. In determining an appropriate royalty rate, the Company considered comparable license agreements, an excess earnings analysis to determine aggregate intangible asset earnings, and other qualitative factors. The key assumptions used to estimate the fair value of the Company’s trade names and trademarks and technology / know-how assets included forecasted revenues, the royalty rate, the tax rate and the discount rate. The relief from royalty method was relied upon for these valuations. The relief from royalty method measures the benefit of owning an intangible asset as the “relief” from the royalty expense that would otherwise be incurred by licensing the asset from a third party. It assumes that if the Company did not own the intangible asset, then it would be willing to pay a royalty for its use. This method is most commonly used for readily transferable intangible assets that have licensing appeal, such as intellectual property. Customer Relationship and Backlog Assets The customer relationships and backlog assets were valued using the multi-period excess earnings method, a variation of the income approach. For the customer relationships assets, revenues attributable to customer assets were determined and an attrition rate based on historical customer trends was applied to estimate the expected decline anticipated from the existing customer population. The cash flows attributable to the customer relationships and backlog assets were also determined by applying appropriate costs and contributory asset charges then adjusted using a discount rate that is commensurate with the risk inherent in the customer-related intangible assets. The key assumptions used to estimate the fair value of the customer-related assets included forecasted revenues, attrition rates, profit margins, contributory asset charges, the tax rate and the discount rate. Joint ventures To estimate the value of the joint ventures, the DCF method was employed to determine the enterprise value of these entities. Adjustments for cash and cash equivalents and interest-bearing debt were made to enterprise value to calculate each entity’s equity value. The application of a discount for lack of control was also considered. Lastly, the concluded equity value was adjusted for the Company’s ownership interest. Lease liabilities and right of use assets Lease liabilities were estimated as the present value of the remaining lease payments. The Company estimated an incremental borrowing rate and used it as the discount rate in the analysis. Right of use asset values were estimated by adjusting the lease liability estimates with estimates of off-market value of leases. Off-market (or above/below market) value was estimated as the present value of the differential between contract rates and market rates over the remaining term of a lease. Exit Facility To estimate the value of the Exit Facility, a DCF method was employed. The fair value of the Exit Facility was estimated by analyzing the expected cash flows and discounting such cash flows at a rate of return that reflects the time value of money and credit risk of the Company. The credit risk of the Company was determined via a synthetic credit rating analysis, and the concluded discount rate was determined by analyzing comparable corporate debt instruments and their observed market yields. Noncontrolling interests To estimate the value of the non-controlling interests, the DCF method was employed to determine the enterprise value of these entities. Adjustments for cash and cash equivalents and interest-bearing debt were made to enterprise value to calculate each entities’ equity value. The application of a discount for lack of control was also considered. Lastly, the concluded equity value was adjusted for the non-controlling interest’s ownership position. Consolidated Balance Sheet The adjustments included in the following fresh start condensed consolidated balance sheet reflect the effects of the transactions contemplated by the Plans and executed by the Company on the Fresh Start Reporting Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information and significant assumptions with regard to the adjustments recorded and the methods used to determine the fair values. Predecessor Reorganization Adjustments (1) Fresh Start Accounting Adjustments Successor August 11, 2023 August 12, 2023 ASSETS Current assets Cash and cash equivalents $ 404.9 $ (13.5) (2) $ — $ 391.4 Restricted cash 60.8 — — 60.8 Short-term investments 13.9 — — 13.9 Trade receivables, less allowances for doubtful accounts 623.9 — — 623.9 Inventories 712.8 — 32.8 (17) 745.6 Prepaid expenses 49.1 (3.5) (3) — 45.6 Current assets held for sale 9.9 — — 9.9 Other current assets 247.8 — — 247.8 Total current assets 2,123.1 (17.0) 32.8 2,138.9 Securities and other investments 7.0 — — 7.0 Property, plant, and equipment, net of accumulated depreciation and amortization 120.3 — 46.2 (18) 166.5 Deferred income taxes — 70.3 (4) (10.8) (19) 59.5 Goodwill 714.3 — (93.3) (20) 621.0 Customer relationships, net 176.1 — 378.2 (21) 554.3 Other intangible assets, net 45.1 — 320.0 (22) 365.1 Other assets 256.8 — 9.5 (23) 266.3 Total assets $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 LIABILITIES AND EQUITY Current liabilities Notes payable $ 1,254.9 $ (1,250.0) (5) $ — $ 4.9 Accounts payable 461.0 — — 461.0 Deferred revenue 421.0 — — 421.0 Payroll and other benefits liabilities 159.2 (0.1) (6) — 159.1 Current liabilities held for sale 10.2 — 0.7 (24) 10.9 DIP facility premium 384.4 (384.4) (7) — — Other current liabilities 343.3 5.5 (8) 1.5 (25) 350.3 Total current liabilities 3,034.0 (1,629.0) 2.2 1,407.2 Long-term debt 4.2 1,248.7 (9) 0.8 (26) 1,253.7 Pensions, post-retirement and other benefits 102.3 — (0.3) (27) 102.0 Deferred income taxes 85.8 (26.4) (4) 179.1 (19) 238.5 Other liabilities 120.3 — 4.0 (28) 124.3 Liabilities subject to compromise 2,232.4 (2,232.4) (10) — — Total liabilities $ 5,579.0 (2,639.1) 185.8 3,125.7 Equity Diebold Nixdorf, Incorporated shareholders' equity Predecessor common shares 121.2 (121.2) (11) — — Successor common stock — 0.4 (12) — 0.4 Paid-in capital; predecessor 832.3 (442.3) (13) (390.0) (29) — Paid-in capital; successor — 1,038.6 (14) — 1,038.6 Retained earnings (accumulated deficit) (2,204.8) 1,659.4 (15) 545.4 (29) — Treasury shares, at cost (586.4) 586.4 (13) — — Accumulated other comprehensive income (loss) (320.0) (8.8) (16) 328.8 (29) — Equity warrants 20.1 (20.1) (13) — — Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) (2,137.6) 2,692.4 484.2 1,039.0 Noncontrolling interests 1.3 — 12.6 (30) 13.9 Total equity (deficit) (2,136.3) 2,692.4 496.8 1,052.9 Total liabilities and equity (deficit) $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 Reorganization Adjustments (1) Represent amounts recorded as of the Fresh Start Reporting Date for the implementation of the Plans, including, among other items, settlement of the Predecessor's liabilities subject to compromise, distributions of cash, conversion of the DIP Facility to the Exit Facility, and the issuance of the Successor common stock. (2) Changes in cash and cash equivalents include the following: Payment of interest on the DIP Facility $ (1.8) Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Payment of lease rejection damages (3.8) Payment of professional fees (4.4) Net change in cash and cash equivalents $ (13.5) (3) Reflects the elimination of prepaid directors and officers insurance policies related to the Predecessor. (4) Change in deferred tax assets and liabilities as a result of release of valuation allowance, partially offset by reduc |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | Debt Outstanding debt balances were as follows: Successor Predecessor September 30, 2023 December 31, 2022 Notes payable – current Lines of credit $ 3.0 $ 0.9 2023 Term Loan B Facility - USD — 12.9 2023 Term Loan B Facility - Euro — 5.1 2025 New Term Loan B Facility - USD — 5.3 2025 New Term Loan B Facility - EUR — 1.1 Other 2.1 1.7 $ 5.1 $ 27.0 Short-term deferred financing fees — (3.0) $ 5.1 $ 24.0 Long-term debt 2024 Senior Notes — 72.1 2025 Senior Secured Notes - USD — 2.7 2025 Senior Secured Notes - EUR — 4.7 2026 Asset Backed Loan (ABL) — 182.0 2025 New Term Loan B Facility - USD — 529.5 2025 New Term Loan B Facility - EUR — 95.5 2026 2L Notes — 333.6 2025 New Senior Secured Notes - USD — 718.1 2025 New Senior Secured Notes - EUR — 379.7 2025 Superpriority Term Loans — 400.6 Exit Facility 1,250.0 — Other 4.3 6.3 $ 1,254.3 $ 2,724.8 Long-term deferred financing fees (1.2) (139.0) $ 1,253.1 $ 2,585.8 DIP Facility and Exit Credit Agreement On June 5, 2023, the Company, as borrower, entered into the credit agreement governing the DIP Facility along with certain financial institutions party thereto, as lenders (the Lenders), and GLAS USA LLC, as administrative agent, and GLAS Americas LLC, as collateral agent (the DIP Credit Agreement), and the closing of the DIP Facility occurred on the same day. The DIP Facility provided for two tranches of term loans to be made on the closing date of the DIP Facility: (i) a $760.0 Term B-1 tranche and (ii) a $490.0 Term B-2 tranche. On June 5, 2023, the proceeds of the DIP Facility were used, among others, to: (i) repay in full the term loan obligations, including a make-whole premium, under the Superpriority Facility (defined below) and (ii) repay in full the ABL Facility (defined below) and cash collateralize letters of credit thereunder. The payment for the Superpriority Facility totaled $492.3 and was comprised of $401.3 of principal and interest, $20.0 of premium, and a make-whole amount of $71.0. The payment for the ABL Facility, including the FILO Tranche (defined below), and the cash collateralization of the letters of credit thereunder totaled $241.0 and was comprised of $211.2 of principal and interest and $29.8 of the cash collateralized letters of credit. The DIP Facility provided for the following premiums and fees, as further described in the DIP Credit Agreement: (i) a participation premium equal to 10.00% of New Common Stock upon reorganization (subject only to dilution on account of the MIP); (ii) a backstop premium equal to 13.50% of New Common Stock; (iii) an upfront premium equal to 7.00% of New Common Stock and (iv) an additional premium equal to 7.00% of New Common Stock. Per the terms of the agreement, the backstop premium, the upfront premium and the additional premium were considered earned on May 30, 2023, and the participation premium was earned on the closing date in respect of the DIP Facility (i.e., June 5, 2023). As of June 30, 2023, the Company estimated the value of the DIP Facility premium based upon the midpoint of the equity value contained in the Disclosure Statement associated with the U.S. Plan. As discussed in Note 3, as of the Effective Date the Company determined the value of the common stock distributable pursuant to the Plans, based on the low end of the enterprise value for the reorganized entity, as contained in the Disclosure Statement to be $2,150.0. As a result, an adjustment to the DIP Facility premium was recorded by the Company to reflect this revised value in the final closing balance sheet of the Predecessor. The amount of this adjustment, $32.6, was recorded by the Predecessor as a reorganization item in the statement of operations. On August 11, 2023, contemporaneously with the Company’s emergence from the Restructuring Proceedings, the conversion of the aforementioned premiums and fees to New Common Stock occurred. The value of the DIP premiums that converted to equity was $384.4, as described in Note 3. On the Effective Date (i.e., August 11, 2023), the Company, as borrower, entered into a credit agreement (the Exit Credit Agreement) governing its $1,250.0 senior secured term loan credit facility (the Exit Facility) along with the Lenders, GLAS USA LLC, as administrative agent, and GLAS Americas LLC, as collateral agent. Concurrently with the closing of the Exit Facility, the Company’s existing $1,250.0 DIP Facility was terminated and the loans outstanding under the DIP Facility were converted into loans outstanding under the Exit Facility (the Conversion), and the liens and guarantees, including all guarantees and liens granted by certain subsidiaries of the Company that are organized in the United States and in certain foreign jurisdictions, granted under the DIP Facility were automatically terminated and released. In connection with the Conversion, the entire $1,250.0 under the Exit Facility was deemed drawn on the Effective Date. The Exit Facility will mature on August 11, 2028. The Company may repay the loans under the Exit Facility at any time; provided that certain repayments of the loans made on or prior to February 11, 2025 with the proceeds of certain types of indebtedness must be accompanied by a premium of either 1.00% or 5.00% of the principal amount of the loans repaid. The amount of the premium is based on the type of indebtedness incurred to repay the loans. Amounts borrowed and repaid under the Exit Facility may not be reborrowed. The obligations of the Company under the Exit Facility are guaranteed by certain subsidiaries of the Company that are organized in the United States (the Guarantors). The Exit Facility and related guarantees are secured by perfected senior security interests and liens on substantially all assets of the Company and each Guarantor. Loans under the Exit Facility bear interest at an adjusted secured overnight financing rate with a one-month tenor rate plus 7.50 percent per annum or an adjusted base rate plus 6.50 percent per annum. The Exit Facility includes conditions precedent, representations and warranties, affirmative and negative covenants and events of default that are customary for financings of this type and size. Events of default include both credit and non-credit events such as a change of control, nonpayment of principal or interest, etc. In the event of a default, the Lenders may declare the outstanding amounts immediately due and payable. Below is a summary of financing information: Financing Facilities Interest Rate Maturity/Termination Dates Initial Term (Years) Exit Facility (i) SOFR + 7.50% August 2028 5.0 (i) SOFR with a floor of 4.0 percent Line of Credit As of September 30, 2023, the Company had various international short-term lines of credit with borrowing limits aggregating to $25.4. The weighted-average interest rate on outstanding borrowings on the short-term lines of credit as of September 30, 2023 and December 31, 2022 was 20% and 11%, respectively, and primarily relate to higher interest rate, short-term lines of credit in Columbia and Brazil. Short-term lines mature in less than one year. The remaining amount available under the short-term lines at September 30, 2023 was $22.4. These lines of credit support working capital, vendor financing and foreign exchange derivatives. Restructuring Proceedings In accordance with the Plans, on the Effective Date, all of the obligations of the Company with respect to the following debt instruments were cancelled: • 8.50% Senior Notes due 2024 (the 2024 Senior Notes), issued under the Indenture, dated as of April 19, 2016, among the Company, as issuer, certain of the Debtors, as guarantors, and Computershare Trust Company, NA, as successor to U.S. Bank Trust Company, National Association, as trustee, as amended, restated, amended and restated, supplemented, waived, or otherwise modified from time to time; • 9.375% Senior Secured Notes due 2025 (the First Lien U.S. Notes, referred to above as the “2025 Senior Secured Notes-USD” and the "2025 New Senior Secured Notes – EUR"), issued under the amended and restated senior secured notes indenture, dated as of December 29, 2022, among the Company, as issuer, certain of the Debtors, as guarantors, U.S. Bank Trust Company, National Association, as trustee, and GLAS Americas LLC, as notes collateral agent, as amended, restated, amended and restated, supplemented, waived, or otherwise modified from time to time; • 9.000% Senior Secured Notes due 2025 (the First Lien Euro Notes, referred to above as the “2025 Senior Secured Notes – EUR" and the "2025 New Senior Secured Notes – EUR"), issued under the amended and restated senior secured notes indenture, dated as of December 29, 2022, among Diebold Dutch, as issuer, the Company, as guarantor, certain of the Debtors, as guarantors, U.S. Bank Trust Company, National Association, as trustee, and GLAS Americas LLC, as notes collateral agent, as amended, restated, amended and restated, supplemented, waived, or otherwise modified from time to time; • 8.50%/12.50% Senior Secured PIK Toggle Notes due 2026 (the 2L Notes and, together with the 2024 Senior Notes, the First Lien U.S. Notes and First Lien Euro Notes, the Notes), issued under the senior secured PIK toggle notes indenture, dated as of December 29, 2022, among the Company, as issuer, certain of the Debtors, as guarantors, Computershare Trust Company, NA, as successor to U.S. Bank Trust Company, National Association, as trustee, and GLAS Americas LLC, as notes collateral agent, as amended, restated, amended and restated, supplemented, waived, or otherwise modified from time to time; • Credit Agreement, dated as of November 23, 2015 (referred to above as the "2023 Term Loan B Facilities"), by and among the Company, as borrower, certain of the Debtors as guarantors, the banks, financial institutions, and other lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as amended, restated, amended and restated, supplemented, waived, or otherwise modified from time to time; and • Credit Agreement, dated as of December 29, 2022 (referred to above as the "2025 New Term Loan B Facilities"), by and among the Company, as borrower, certain of the Debtors, as guarantors, the banks, financial institutions, and other lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and GLAS Americas LLC, as collateral agent, as amended, restated, amended and restated, supplemented, waived or otherwise modified from time to time. 2022 Restructuring Activities All of the following obligations of the Predecessor were cancelled when the related instruments were paid with the DIP Facility proceeds. • Superpriority Facility - On December 29, 2022, the Company and Diebold Nixdorf Holding Germany GmbH (the Superpriority Borrower) entered into a Credit Agreement (the Superpriority Credit Agreement), providing for a superpriority secured term loan facility of $400.0 (the Superpriority Facility). On the December 2022 settlement date with respect to the Superpriority Facility, the Superpriority Borrower borrowed the full $400.0 of term loans available (the Superpriority Term Loans). The Superpriority Term Loans were to mature on July 15, 2025. On June 5, 2023, proceeds from the DIP Facility were used to repay in full the term loan obligations, including a make-whole premium, under the Superpriority Credit Agreement. • ABL Revolving Credit and Guaranty Agreements - On December 29, 2022, the Company and subsidiary borrowers (together with the Company, the ABL Borrowers) entered into a Revolving Credit and Guaranty Agreement (the ABL Credit Agreement). The ABL Credit Agreement provided for an asset-based revolving credit facility (the ABL Facility) consisting of three Tranches (respectively, Tranche A, Tranche B and Tranche C) with a total commitment of up to $250.0, including a Tranche A commitment of up to $155.0, a Tranche B commitment of up to $25.0 and a Tranche C commitment of up to $70.0. On the December 2022 settlement date with respect to the ABL Revolving Credit and Guaranty Agreements, certain ABL Borrowers borrowed a total of $182.0 under the ABL Facility, consisting of $122.0 of Tranche A loans and $60.0 of Tranche C loans. The ABL Facility was to mature on July 20, 2026, subject to a springing maturity to a date that is 91 days prior to the maturity date of any indebtedness for borrowed money (other than term loans or 2024 Senior Notes that were not exchanged in connection with the December 2022 refinancing transactions) in an aggregate principal amount of more than $25.0 incurred by the Company or any of its subsidiaries. On June 5, 2023, proceeds from the DIP Facility were used to repay in full the ABL Facility and cash collateralize letters of credit thereunder. • FILO Amendment - On March 21, 2023, the Company and certain of its subsidiaries entered into an amendment and limited waiver (the FILO Amendment) to the ABL Credit Agreement. The FILO Amendment provided for an additional tranche (the FILO Tranche) of commitments under the ABL Credit Agreement consisting of a senior secured “last out” term loan facility (the FILO Facility). An additional amount of $55.0 under the FILO Facility was borrowed in full on March 21, 2023. The FILO Facility matured on June 4, 2023. On June 5, 2023, proceeds from the DIP Facility were used to repay in full the FILO Tranche. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
EQUITY | Equity The following tables present changes in shareholders' equity attributable to Diebold Nixdorf, Incorporated and the noncontrolling interests: Accumulated Other Comprehensive Loss Total Diebold Nixdorf, Incorporated Shareholders' Equity Common Shares Additional Accumulated Deficit Treasury Equity Warrants Non-controlling Total Balance, December 31, 2022 (Predecessor) $ 119.8 $ 831.5 $ (1,406.7) $ (585.6) $ (360.0) $ 20.1 $ (1,380.9) $ 9.8 $ (1,371.1) Net loss — — (111.1) — — — (111.1) (0.4) (111.5) Other comprehensive loss — — — — 6.3 — 6.3 2.2 8.5 Share-based compensation issued 1.0 (1.0) — — — — — — — Share-based compensation expense — 1.3 — — — — 1.3 — 1.3 Treasury shares — — — (0.8) — — (0.8) — (0.8) Balance, March 31, 2023 (Predecessor) $ 120.8 $ 831.8 $ (1,517.8) $ (586.4) $ (353.7) $ 20.1 $ (1,485.2) $ 11.6 $ (1,473.6) Net loss — — (677.1) — — — (677.1) (0.2) (677.3) Other comprehensive loss — — — — 26.2 — 26.2 (6.6) 19.6 Share-based compensation issued 0.4 (0.5) — — — — (0.1) — (0.1) Share-based compensation expense — 0.8 — — — — 0.8 — 0.8 Balance, June 30, 2023 (Predecessor) $ 121.2 $ 832.1 $ (2,194.9) $ (586.4) $ (327.5) $ 20.1 $ (2,135.4) $ 4.8 $ (2,130.6) Net income — — 2,146.5 — — — 2,146.5 (0.2) 2,146.3 Other comprehensive loss — — — — 7.5 — 7.5 (3.3) 4.2 Share-based compensation expense — 0.3 — — — — 0.3 — 0.3 Acceleration of Predecessor equity awards — 2.8 — — — — 2.8 — 2.8 Elimination of Predecessor common shares, additional capital, retained earnings, treasury shares and warrants (121.2) (835.2) 48.4 586.4 — (20.1) (341.7) — (341.7) Elimination of accumulated other comprehensive income (loss) — — — — 320.0 — 320.0 — 320.0 Change in value of non-controlling interests — — — — — — — 12.6 12.6 Issuance of Successor common shares 0.4 1,038.6 — — — — 1,039.0 — 1,039.0 Balance, August 12, 2023 (Successor) $ 0.4 $ 1,038.6 $ — $ — $ — $ — $ 1,039.0 $ 13.9 $ 1,052.9 Net loss — — (26.5) — — (26.5) 0.7 (25.8) Other comprehensive loss — — — — (35.8) — (35.8) 0.2 (35.6) Balance, September 30, 2023 (Successor) $ 0.4 $ 1,038.6 $ (26.5) $ — $ (35.8) $ — $ 976.7 $ 14.8 $ 991.5 Accumulated Other Comprehensive Loss Total Diebold Nixdorf, Incorporated Shareholders' Equity Common Shares Additional Accumulated Deficit Treasury Equity Warrants Non-controlling Total Balance, December 31, 2021 (Predecessor) $ 118.3 $ 819.6 $ (822.4) $ (582.1) $ (378.5) $ — $ (845.1) $ 8.1 $ (837.0) Net loss — — (183.1) — — — (183.1) (0.8) (183.9) Other comprehensive loss — — — — 13.1 — 13.1 0.8 13.9 Share-based compensation issued 1.2 (1.2) — — — — — — — Share-based compensation expense — 1.7 — — — — 1.7 — 1.7 Treasury shares — — — (3.3) — — (3.3) — (3.3) Balance, March 31, 2022 (Predecessor) $ 119.5 $ 820.1 $ (1,005.5) $ (585.4) $ (365.4) $ — $ (1,016.7) $ 8.1 $ (1,008.6) Net loss — — (199.2) — — — (199.2) 0.1 (199.1) Other comprehensive loss — — — — (46.8) — (46.8) 2.3 (44.5) Share-based compensation issued 0.1 (0.3) — — — — (0.2) — (0.2) Share-based compensation expense — 5.2 — — — — 5.2 — 5.2 Treasury shares — — — — — — — — — Balance, June 30, 2022 (Predecessor) $ 119.6 $ 825.0 $ (1,204.7) $ (585.4) $ (412.2) $ — $ (1,257.7) $ 10.5 $ (1,247.2) Net loss — — (49.8) — — — (49.8) (0.7) $ (50.5) Other comprehensive loss — — — — (24.6) — (24.6) 1.9 $ (22.7) Share-based compensation issued 0.1 — — — — — 0.1 — $ 0.1 Share-based compensation expense — 2.7 — — — — 2.7 — $ 2.7 Treasury shares — — — (0.1) — — (0.1) — $ (0.1) Balance, September 30, 2022 (Predecessor) $ 119.7 $ 827.7 $ (1,254.5) $ (585.5) $ (436.8) $ — $ (1,329.4) $ 11.7 $ (1,317.7) |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Predecessor Divestitures In the first and second quarters of 2022, the Predecessor received net proceeds of $5.8 and $4.7, respectively, from the German reverse vending business sale. The Predecessor signed a divestiture agreement for its German reverse vending business in the fourth quarter of 2021, however the transaction had not closed as it was pending the regulatory process as of December 31, 2021. An impairment loss was recorded in 2021 related to this transaction for $1.3. In the third quarter of 2022, the Predecessor received $3.5 in cash proceeds related to the sale of IT assets with no book value. In the fourth quarter of 2022, the Predecessor received $2.7 in cash proceeds and recognized $1.9 of gain related to the sale of a building in Belgium. Successor Divestitures During the Successor Period, the Company sold its non-core European retail business that had been classified as held for sale in the Successor Period. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | Benefit Plans Qualified Retirement Benefits. The Company has a qualified retirement plan covering certain U.S. employees that has been closed to new participants since 2003 and frozen since December 2013. The Company has a number of non-U.S. defined benefit plans covering eligible employees located predominately in Europe, the most significant of which are German plans. Benefits for these plans are based primarily on each employee's final salary, with periodic adjustments for inflation. The obligations in Germany consist of employer funded pension plans and deferred compensation plans. The employer funded pension plans are based upon direct performance-related commitments in terms of defined contribution plans. Each beneficiary receives, depending on individual pay-scale grouping, contractual classification, or income level, different yearly contributions. The contribution is multiplied by an age factor appropriate to the respective pension plan and credited to the individual retirement account of the employee. The retirement accounts may be used up at retirement by either a one-time lump-sum payout or payments of up to ten years. The Company has other defined benefit plans outside the U.S., which have not been mentioned here due to materiality. Supplemental Executive Retirement Benefits. The Company has non-qualified pension plans in the U.S. to provide supplemental retirement benefits to certain officers, which have also been frozen since December 2013. Benefits are payable at retirement based upon a percentage of the participant’s compensation, as defined. Other Benefits. In addition to providing retirement benefits, the Company provides post-retirement healthcare and life insurance benefits (referred to as other benefits) for certain retired employees. Retired eligible employees in the U.S. may be entitled to these benefits based upon years of service with the Company, age at retirement and collective bargaining agreements. There are no plan assets and the Company funds the benefits as the claims are paid. The post-retirement benefit obligation was determined by application of the terms of medical and life insurance plans together with relevant actuarial assumptions and healthcare cost trend rates. Changes in Policies. Upon emergence from the Restructuring Proceedings, the Company has elected to make the following policy changes for its benefit plans: • Increasing the gain/loss amortization corridor from 5 percent to 10 percent, which will reduce future gain/loss amortization volatility. • For the U.S. defined benefit pension plans, the company has elected to value assets using the fair market value of assets. This method aligns with the assumptions previously utilized by the Company's non-US. defined benefit plans. The following tables set forth the net periodic benefit cost for the Company’s U.S. defined benefit pension plans: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ 2.7 $ 2.2 $ 4.5 Expected return on plan assets (2.1) (2.0) (4.3) Recognized net actuarial loss — — 0.2 Settlement loss recognized — — 14.3 Net periodic pension benefit cost $ 0.6 $ 0.2 $ 14.7 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ 2.7 $ 11.9 $ 13.0 Expected return on plan assets (2.1) (11.0) (15.9) Recognized net actuarial loss — 0.4 3.3 Settlement loss recognized — — 14.3 Net periodic pension benefit cost $ 0.6 $ 1.3 $ 14.7 The following tables set forth the net periodic benefit cost for the Company’s Non-U.S. defined benefit pension plans: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Service cost $ 1.0 $ 0.8 $ 2.4 Interest cost 1.6 1.5 1.1 Expected return on plan assets (2.0) (1.7) (3.8) Recognized net actuarial gain — (0.5) (0.4) Amortization of prior service cost — (0.1) (0.1) Settlement gain recognized — (2.1) — Net periodic pension benefit cost $ 0.6 $ (2.1) $ (0.8) Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Service cost $ 1.0 $ 3.9 $ 7.1 Interest cost 1.6 7.2 3.3 Expected return on plan assets (2.0) (8.4) (11.6) Recognized net actuarial gain — (2.3) (1.3) Amortization of prior service cost — (0.5) (0.3) Settlement gain recognized — (2.1) — Net periodic pension benefit cost $ 0.6 $ (2.2) $ (2.8) The following tables set forth the net periodic benefit cost for the Company’s other benefit plans during the period: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ — $ 0.1 $ 0.1 Recognized net actuarial gain — (0.1) (0.1) Net periodic pension benefit cost $ — $ — $ — Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ — $ 0.2 $ 0.2 Recognized net actuarial gain — (0.3) (0.3) Net periodic pension benefit cost $ — $ (0.1) $ (0.1) The following table represents the weighted-average assumptions used to determine net periodic benefit cost: Successor Predecessor September 30, 2023 December 31, 2022 U.S. Plans Non-U.S. Plans Other Benefits U.S. Plans Non-U.S. Plans Other Benefits Discount rate 3.16% 2.38% 6.83% 2.99% 2.39% 4.22% Expected long-term return on plan assets 5.25% 3.75% N/A 5.25% 3.30% N/A Rate of compensation increase N/A 3.88% N/A N/A 3.89% N/A Contributions and Reimbursements For the Predecessor Periods from January 1, 2023 through August 11, 2023 and the nine months ended September 30, 2022, there were contributions of $23.3 and $27.6, respectively, made to the qualified and non-qualified pension plans. For the Successor Period from August 12, 2023 through September 30, 2023, contributions of $1.6 were made to the qualified and non-qualified pension plans. The Company received reimbursements of $22.8 and $17.0 for certain benefits paid from its German plan trustee during March 2023 and May 2022, respectively. Both reimbursements were received by the Predecessor. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | LeasesThe Company utilizes lease agreements to meet its operating needs. These leases support global staff via the use of office space, warehouses, vehicles and IT equipment. The Company utilizes both operating and finance leases in its portfolio of leased assets, however, the majority of these leases are classified as operating. A significant portion of the volume of the lease portfolio is in fleet vehicles and IT office equipment; however, real estate leases constitute a majority of the value of the right-of-use (ROU) assets. Lease agreements are utilized worldwide, with the largest location concentration in the United States, Germany and India. The Company's lease population has initial lease terms ranging from less than one year to approximately fifteen years. Some leases include one or more options to renew, with renewal terms that can extend the lease term from six months to 15 years. The Company assesses these renewal/extension options using a threshold of reasonably certain, which is a high threshold and, therefore, the majority of its lease terms for accounting purposes do not include renewal periods. For leases where the Company is reasonably certain to renew, those optional periods are included within the lease term and, therefore, the measurement of the ROU asset and lease liability. Some of the vehicle and IT equipment leases also include options to purchase the leased asset, typically at end of term at fair market value. Some of the Company's leases include options to terminate the lease early. This allows the contract parties to terminate their obligations under the lease contract, sometimes in return for an agreed upon financial consideration. The terms and conditions of the termination options vary by contract, and for those leases where the Company is reasonably certain to use these options, the term and payments recognized in the measurement of ROU assets and lease liabilities has been updated accordingly. Additionally, there are several open-ended lease arrangements where the Company controls the option to continue or terminate the arrangement at any time after the first year. For these arrangements, the Company has analyzed a mix of historical use and future economic incentives to determine the reasonable expected holding period. This term is used for measurement of ROU assets and lease liabilities. The following table summarizes the weighted-average remaining lease terms and discount rates related to the Company's lease population: Successor September 30, 2023 Weighted-average remaining lease terms (in years) Operating leases 4.9 Finance leases 2.7 Weighted-average discount rate Operating leases 8.5% Finance leases 6.6% Certain lease agreements include payments based on a variety of global indexes or rates. These payment amounts have been projected using the index or rate as of lease commencement or the transition date and measured in ROU assets and lease liabilities. Other leases contain variable payments that are based on actual usage of the underlying assets and, therefore, are not measured in assets or liabilities as the variable payments are not based on an index or a rate. For real estate leases, these payments are most often tied to non-committed maintenance or utilities charges, and for equipment leases, to actual output or hours in operation. These amounts typically become known when the invoice is received, which is when expense is recognized. In rare circumstances, the Company's lease agreements may contain residual value guarantees. The Company's lease agreements do not contain any restrictions or covenants, such as those relating to dividends or incurring additional financial obligations. As of September 30, 2023, the Company did not have any material leases that have not yet commenced but that create significant rights and obligations. The Company determines whether an arrangement is or includes a lease at contract inception. All contracts containing the right to use an underlying asset are reviewed to confirm that the contract meets the definition of a lease. ROU assets and liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. In order to apply the incremental borrowing rate, a rate table was developed to assign the appropriate rate to each lease based on lease term and currency of payments. For leases with large numbers of underlying assets, a portfolio approach with a collateralized rate was utilized. Assets were grouped based on similar lease terms and economic environments in a manner whereby the Company reasonably expects that the application does not differ materially from a lease-by-lease approach. The following tables summarize the components of lease expense: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Lease expense Operating lease expense $ 8.2 $ 7.5 $ 18.7 Finance lease expense Amortization of ROU lease assets $ 0.6 $ 0.8 $ 1.1 Interest on lease liabilities $ 0.1 $ 0.2 $ 0.2 Variable lease expense $ 1.0 $ 0.9 $ 1.7 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Lease expense Operating lease expense $ 8.2 $ 41.9 $ 57.7 Finance lease expense Amortization of ROU lease assets $ 0.6 $ 2.4 $ 3.0 Interest on lease liabilities $ 0.1 $ 0.5 $ 0.5 Variable lease expense $ 1.0 $ 5.2 $ 7.5 The following table summarizes the maturities of lease liabilities: Operating Finance 2023 (excluding the nine months ended September 30, 2023) $ 15.1 $ 1.2 2024 40.1 3.8 2025 26.4 1.8 2026 15.7 1.1 2027 9.3 0.6 Thereafter 20.2 0.2 Total 126.8 8.7 Less: Present value discount (21.1) (0.7) Lease liability $ 105.7 $ 8.0 The following table summarizes the cash flow information related to leases: Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating - operating cash flows $ 11.8 $ 43.3 $ 57.7 Finance - financing cash flows $ 0.5 $ 2.5 $ 3.1 Finance - operating cash flows $ 0.1 $ 0.5 $ 0.5 ROU lease assets obtained in the exchange for lease liabilities: Operating leases $ 0.8 $ 19.2 $ 24.7 Finance leases $ — $ 0.6 $ 6.6 Refer to Note 3 for further detail relating to Fresh Start Accounting adjustments related to leases. The following table summarizes the balance sheet information related to leases: Successor Predecessor September 30, 2023 December 31, 2022 Assets Operating $ 98.0 $ 108.5 Finance 7.7 10.3 Total leased assets $ 105.7 $ 118.8 Current liabilities Operating $ 40.1 $ 39.0 Finance 3.9 4.1 Noncurrent liabilities Operating 65.5 76.7 Finance 4.2 5.7 Total lease liabilities $ 113.7 $ 125.5 |
Leases | LeasesThe Company utilizes lease agreements to meet its operating needs. These leases support global staff via the use of office space, warehouses, vehicles and IT equipment. The Company utilizes both operating and finance leases in its portfolio of leased assets, however, the majority of these leases are classified as operating. A significant portion of the volume of the lease portfolio is in fleet vehicles and IT office equipment; however, real estate leases constitute a majority of the value of the right-of-use (ROU) assets. Lease agreements are utilized worldwide, with the largest location concentration in the United States, Germany and India. The Company's lease population has initial lease terms ranging from less than one year to approximately fifteen years. Some leases include one or more options to renew, with renewal terms that can extend the lease term from six months to 15 years. The Company assesses these renewal/extension options using a threshold of reasonably certain, which is a high threshold and, therefore, the majority of its lease terms for accounting purposes do not include renewal periods. For leases where the Company is reasonably certain to renew, those optional periods are included within the lease term and, therefore, the measurement of the ROU asset and lease liability. Some of the vehicle and IT equipment leases also include options to purchase the leased asset, typically at end of term at fair market value. Some of the Company's leases include options to terminate the lease early. This allows the contract parties to terminate their obligations under the lease contract, sometimes in return for an agreed upon financial consideration. The terms and conditions of the termination options vary by contract, and for those leases where the Company is reasonably certain to use these options, the term and payments recognized in the measurement of ROU assets and lease liabilities has been updated accordingly. Additionally, there are several open-ended lease arrangements where the Company controls the option to continue or terminate the arrangement at any time after the first year. For these arrangements, the Company has analyzed a mix of historical use and future economic incentives to determine the reasonable expected holding period. This term is used for measurement of ROU assets and lease liabilities. The following table summarizes the weighted-average remaining lease terms and discount rates related to the Company's lease population: Successor September 30, 2023 Weighted-average remaining lease terms (in years) Operating leases 4.9 Finance leases 2.7 Weighted-average discount rate Operating leases 8.5% Finance leases 6.6% Certain lease agreements include payments based on a variety of global indexes or rates. These payment amounts have been projected using the index or rate as of lease commencement or the transition date and measured in ROU assets and lease liabilities. Other leases contain variable payments that are based on actual usage of the underlying assets and, therefore, are not measured in assets or liabilities as the variable payments are not based on an index or a rate. For real estate leases, these payments are most often tied to non-committed maintenance or utilities charges, and for equipment leases, to actual output or hours in operation. These amounts typically become known when the invoice is received, which is when expense is recognized. In rare circumstances, the Company's lease agreements may contain residual value guarantees. The Company's lease agreements do not contain any restrictions or covenants, such as those relating to dividends or incurring additional financial obligations. As of September 30, 2023, the Company did not have any material leases that have not yet commenced but that create significant rights and obligations. The Company determines whether an arrangement is or includes a lease at contract inception. All contracts containing the right to use an underlying asset are reviewed to confirm that the contract meets the definition of a lease. ROU assets and liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. In order to apply the incremental borrowing rate, a rate table was developed to assign the appropriate rate to each lease based on lease term and currency of payments. For leases with large numbers of underlying assets, a portfolio approach with a collateralized rate was utilized. Assets were grouped based on similar lease terms and economic environments in a manner whereby the Company reasonably expects that the application does not differ materially from a lease-by-lease approach. The following tables summarize the components of lease expense: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Lease expense Operating lease expense $ 8.2 $ 7.5 $ 18.7 Finance lease expense Amortization of ROU lease assets $ 0.6 $ 0.8 $ 1.1 Interest on lease liabilities $ 0.1 $ 0.2 $ 0.2 Variable lease expense $ 1.0 $ 0.9 $ 1.7 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Lease expense Operating lease expense $ 8.2 $ 41.9 $ 57.7 Finance lease expense Amortization of ROU lease assets $ 0.6 $ 2.4 $ 3.0 Interest on lease liabilities $ 0.1 $ 0.5 $ 0.5 Variable lease expense $ 1.0 $ 5.2 $ 7.5 The following table summarizes the maturities of lease liabilities: Operating Finance 2023 (excluding the nine months ended September 30, 2023) $ 15.1 $ 1.2 2024 40.1 3.8 2025 26.4 1.8 2026 15.7 1.1 2027 9.3 0.6 Thereafter 20.2 0.2 Total 126.8 8.7 Less: Present value discount (21.1) (0.7) Lease liability $ 105.7 $ 8.0 The following table summarizes the cash flow information related to leases: Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating - operating cash flows $ 11.8 $ 43.3 $ 57.7 Finance - financing cash flows $ 0.5 $ 2.5 $ 3.1 Finance - operating cash flows $ 0.1 $ 0.5 $ 0.5 ROU lease assets obtained in the exchange for lease liabilities: Operating leases $ 0.8 $ 19.2 $ 24.7 Finance leases $ — $ 0.6 $ 6.6 Refer to Note 3 for further detail relating to Fresh Start Accounting adjustments related to leases. The following table summarizes the balance sheet information related to leases: Successor Predecessor September 30, 2023 December 31, 2022 Assets Operating $ 98.0 $ 108.5 Finance 7.7 10.3 Total leased assets $ 105.7 $ 118.8 Current liabilities Operating $ 40.1 $ 39.0 Finance 3.9 4.1 Noncurrent liabilities Operating 65.5 76.7 Finance 4.2 5.7 Total lease liabilities $ 113.7 $ 125.5 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | Fair Value of Assets and Liabilities Assets and liabilities subject to fair value measurement by fair value level are recorded as follows: Successor Predecessor September 30, 2023 December 31, 2022 Fair Value Measurements Using Fair Value Measurements Using Classification on condensed consolidated Balance Sheets Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets Certificates of deposit Short-term investments $ 16.6 $ 16.6 $ — $ 24.6 $ 24.6 $ — Assets held in rabbi trusts Securities and other investments 2.8 2.8 — 4.4 4.4 — Total $ 19.4 $ 19.4 $ — $ 29.0 $ 29.0 $ — Liabilities Deferred compensation Other liabilities 2.8 2.8 — 4.4 4.4 — Total $ 2.8 $ 2.8 $ — $ 4.4 $ 4.4 $ — The Company uses the end of period when determining the timing of transfers between levels. During the Successor and Predecessor Periods, there were no transfers between levels. The carrying amount of the Predecessor's revolving credit facility approximates fair value. The remaining debt had a carrying value of $2,557.6 and fair value of $1,819.7 at December 31, 2022. The Successor's debt had a carrying value of $1,260.1 and fair value of $1,260.6 at September 30, 2023. Refer to Note 12 for further details surrounding the Company's debt as of September 30, 2023 compared to December 31, 2022 and Note 3 for further detail regarding Fresh Start Accounting adjustments related to the Company's debt. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Commitments and Contingencies Indirect Tax Contingencies The Company accrues for indirect tax matters when management believes that a loss is probable and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. In the event any losses are sustained in excess of accruals, they are charged against income. In evaluating indirect tax matters, management takes into consideration factors such as historical experience with matters of similar nature, specific facts and circumstances and the likelihood of prevailing. Management evaluates and updates accruals as matters progress over time. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably to the Company and could require recognizing future expenditures. Also, statutes of limitations could expire without the Company paying the taxes for matters for which accruals have been established, which could result in the recognition of future gains upon reversal of accruals at that time. At September 30, 2023, the Company was a party to several routine indirect tax claims from various taxing authorities globally that were incurred in the normal course of business, which neither individually nor in the aggregate are considered material by management in relation to the Company’s financial position or results of operations. In management’s opinion, the condensed consolidated financial statements would not be materially affected by the outcome of these indirect tax claims and/or proceedings or asserted claims. A loss contingency is reasonably possible if it has a more than remote but less than probable chance of occurring. Although management believes the Company has valid defenses with respect to its indirect tax positions, it is reasonably possible that a loss could occur in excess of the estimated liabilities. The Company estimated the aggregate risk at September 30, 2023 to be up to $51.1 for its material indirect tax matters. The aggregate risk related to indirect taxes is adjusted as the applicable statutes of limitations expire. Legal Contingencies At September 30, 2023, the Company was a party to several lawsuits that were incurred in the normal course of business, which neither individually nor in the aggregate were considered material by management in relation to the Company’s financial position or results of operations. In management’s opinion, the Company's condensed consolidated financial statements would not be materially affected by the outcome of these legal proceedings or asserted claims. In addition to these normal course of business litigation matters, the Successor continues to be a party to the proceedings that began in the Predecessor Period described below: Diebold Nixdorf Holding Germany GmbH, formerly Diebold Nixdorf Holding Germany Inc. & Co. KGaA (Diebold KGaA), is a party to two separate appraisal proceedings (Spruchverfahren) in connection with the purchase of all shares in its former listed subsidiary, Diebold Nixdorf AG. The first appraisal proceeding, which relates to the Domination and Profit Loss Transfer Agreement (DPLTA) entered into by Diebold KGaA and former Diebold Nixdorf AG, which became effective on February 17, 2017, is pending at the Higher Regional Court (Oberlandesgericht) of Düsseldorf (Germany) as the court of appeal. The DPLTA appraisal proceeding was filed by minority shareholders of Diebold Nixdorf AG challenging the adequacy of both the cash exit compensation of €55.02 per Diebold Nixdorf AG share (of which 6.9 million shares were then outstanding) and the annual recurring compensation of €2.82 per Diebold Nixdorf AG share offered in connection with the DPLTA. The second appraisal proceeding relates to the cash merger squeeze-out of minority shareholders of Diebold Nixdorf AG in 2019 and is currently pending at the same Chamber for Commercial Matters (Kammer für Handelssachen) at the District Court (Landgericht) of Dortmund (Germany) that was originally competent for the DPLTA appraisal proceedings. The squeeze-out appraisal proceeding was filed by former minority shareholders of Diebold Nixdorf AG challenging the adequacy of the cash exit compensation of €54.80 per Diebold Nixdorf AG share (of which 1.4 million shares were then outstanding) in connection with the merger squeeze-out. In both appraisal proceedings, a court ruling would apply to all Diebold Nixdorf AG shares outstanding at the time when the DPLTA or the merger squeeze-out, respectively, became effective. Any cash compensation received by former Diebold Nixdorf AG shareholders in connection with the merger squeeze-out would be netted with any higher cash compensation such shareholder may still claim in connection with the DPLTA appraisal proceeding. The District Court of Dortmund dismissed in 2022 all claims to increase the cash compensation and the annual recurring compensation in the DPLTA appraisal proceeding and rejected in 2023 all claims to increase the cash compensation in the merger squeeze-out appraisal proceeding. These first instance decisions, however, are not final as some of the plaintiffs filed appeals in the DPLTA appraisal proceeding and the deadline to submit an appeal in the squeeze-out appraisal proceeding has not yet expired. The Company believes that the compensation offered in connection with the DPLTA and the merger squeeze-out was in both cases fair and that the decisions of the District Court of Dortmund in the DPLTA and merger squeeze-out appraisal proceedings validate its position. German courts often adjudicate increases of the cash compensation to plaintiffs in varying amounts in connection with German appraisal proceedings. Therefore, the Company cannot rule out that a court may increase the cash compensation in these appraisal proceedings. The Company, however, is convinced that its defense in both appraisal proceedings is supported by strong sets of facts and the Company will continue to vigorously defend itself in these matters. Related legal fees are expensed as incurred. Bank Guarantees, Standby Letters of Credit, and Surety Bonds In the ordinary course of business, the Company may issue performance guarantees on behalf of its subsidiaries to certain customers and other parties. Some of those guarantees may be backed by standby letters of credit, surety bonds, or similar instruments. In general, under the guarantees, the Company would be obligated to perform, or cause performance, over the term of the underlying contract in the event of an unexcused, uncured breach by its subsidiary, or some other specified triggering event, in each case as defined by the applicable guarantee. At September 30, 2023, the maximum future contractual obligations relative to these various guarantees totaled $118.8, of which $24.0 represented standby letters of credit to insurance providers, and no associated liability was recorded. At December 31, 2022, the maximum future payment obligations relative to these various guarantees totaled $173.2, of which $24.0 represented standby letters of credit to insurance providers, and no associated liability was recorded. Restricted Cash The following table provides a reconciliation of Cash, cash equivalents and Short-term and Long-term restricted cash reporting within the Company's Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Cash Flows: Successor Predecessor September 30, 2023 December 31, 2022 Cash and cash equivalents $ 376.1 $ 307.4 Professional fee escrow 22.9 — Bank collateral guarantees 32.4 2.6 Pension collateral guarantees 8.9 9.1 Restricted cash and cash equivalents 64.2 11.7 Total cash, cash equivalents, and restricted cash $ 440.3 $ 319.1 The balances primarily relate to cash held in escrow for the purpose of paying certain professional fees as a result of the Restructuring Proceedings as described in Note 2 and collateralized letters of credit supporting corporate insurance. |
Revenue from Contract with Cust
Revenue from Contract with Customer | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Note 20: Revenue Recognition A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied. The following table represents the percentage of revenue recognized either at a point in time or over time: Successor Predecessor Period from Period from Nine months ended Timing of revenue recognition 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Products transferred at a point in time 48 % 39 % 37 % Products and services transferred over time 52 % 61 % 63 % Net sales 100 % 100 % 100 % Contract balances Contract assets are the rights to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract assets of the Company primarily relate to the Company's rights to consideration for goods shipped and services provided but not contractually billable at the reporting date. The contract assets are reclassified into the receivables balance when the rights to receive payment become unconditional. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. In addition, contract liabilities are recorded as advanced payments for products and other deliverables that are billed to and collected from customers prior to revenue being recognizable. Contract assets are minimal for the periods presented. The following table provides information about receivables and deferred revenue, which represent contract liabilities from contracts with customers: Contract balance information Trade receivables Contract liabilities Balance at December 31, 2022 (Predecessor) $ 612.2 $ 453.2 Balance at September 30, 2023 (Successor) $ 703.8 $ 351.5 There have been $16.6, $1.0, and $18.3 of impairment losses recognized as bad debt related to receivables or contract assets arising from the Company's contracts with customers during the period from January 1, 2023 through August 11, 2023, the period from August 12, 2023 through September 30, 2023, and the nine months ended September 30, 2022, respectively. As of December 31, 2022, the Predecessor had $453.2 of unrecognized deferred revenue constituting the remaining performance obligations that are unsatisfied (or partially unsatisfied). During the period from January 1, 2023 through August 11, 2023 and the period from August 12, 2023 through September 30, 2023, the Company recognized revenue of $223.4 and $63.7, respectively, related to the Company's deferred revenue balance at December 31, 2022. Transaction price allocated to the remaining performance obligations |
Finance Lease Receivables
Finance Lease Receivables | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lessor, Direct Financing Leases | Finance Lease Receivables Under certain circumstances, the Company provides financing arrangements to customers that are largely classified and accounted for as sales-type leases. The Company records interest income and any fees or costs related to financing receivables using the effective interest method over the term of the lease. As of August 11, 2023, the carrying value of finance lease receivables approximated the fair value; therefore, no fair value adjustment for Fresh Start Accounting was required. The following table presents the components of finance lease receivables: Successor Predecessor September 30, 2023 December 31, 2022 Gross minimum lease receivables $ 25.0 $ 28.1 Allowance for credit losses (0.1) (0.2) Estimated unguaranteed residual values — 0.1 24.9 28.0 Less: Unearned interest income (0.9) (1.5) Total $ 24.0 $ 26.5 Future minimum payments due from customers under finance lease receivables as of September 30, 2023 are as follows: 2023 $ 2.3 2024 7.2 2025 4.7 2026 4.2 2027 3.2 Thereafter 3.4 $ 25.0 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 22: Segment Information The Company's reportable operating segments are as follows: Banking and Retail. Segment operating profit as disclosed herein is consistent with the segment profit or loss measure used by the CODM and does not include corporate charges, amortization of acquired intangible assets, asset impairment, restructuring and transformation charges, the results of the held-for-sale European retail business, or other non-routine, unusual or infrequently occurring items, as the CODM does not regularly review and use such financial measures to make decisions, allocate resources and assess performance. Segment revenue represents revenues from sales to external customers. Segment operating profit is defined as revenues less expenses directly attributable to the segments. The Company does not allocate to its segments certain operating expenses which are managed at the headquarters level; that are not used in the management of the segments, not segment-specific, and impractical to allocate. In some cases the allocation of corporate charges has changed from the legacy structure to the new structure, but prior periods have been recast to conform to the new presentation. Segment operating profit reconciles to consolidated Profit (loss) before taxes by deducting items that are not attributed to the segments and which are managed independently of segment results. Assets are not allocated to segments, and thus are not included in the assessment of segment performance, and consequently, we do not disclose total assets and depreciation and amortization expense by reportable operating segment. The following tables present information regarding the Company’s segment performance and provide a reconciliation between segment operating profit and the consolidated Profit (loss) before taxes: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Net sales summary by segment Banking $ 409.0 $ 253.2 $ 580.3 Retail 181.1 97.2 225.0 Held for sale non-core European retail business (7) 1.7 1.2 5.1 Total revenue $ 591.8 $ 351.6 $ 810.4 Segment operating profit Banking (8) $ 59.3 $ 29.3 $ 83.1 Retail 31.3 15.1 31.1 Total segment operating profit $ 90.6 $ 44.4 $ 114.2 Corporate charges not allocated to segments (1) $ (47.0) $ (26.3) $ (54.2) Impairment of assets (2) (1.1) (0.6) (4.1) Amortization of Wincor Nixdorf purchase accounting intangible assets (3) — (6.1) (16.6) Restructuring and transformation expenses (4) (5.1) (4.8) (20.7) Refinancing related costs (5) 0.3 (0.1) (13.4) Net non-routine expense (6) 0.2 (4.7) 5.3 Held for sale non-core European retail business (7) (1.0) (1.3) (5.0) (53.7) (43.9) (108.7) Operating profit 36.9 0.5 5.5 Other (expense) income (77.0) 2,239.7 (51.5) (Loss) profit before taxes $ (40.1) $ 2,240.2 $ (46.0) Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Net sales summary by segment Banking $ 409.0 $ 1,511.0 $ 1,733.3 Retail 181.1 610.0 742.4 Held for sale non-core European retail business (7) 1.7 10.9 16.2 Total revenue $ 591.8 $ 2,131.9 $ 2,491.9 Segment operating profit Banking (8) $ 59.3 $ 211.6 $ 209.4 Retail 31.3 86.2 90.0 Total segment operating profit $ 90.6 $ 297.8 $ 299.4 Corporate charges not allocated to segments (1) (47.0) (159.8) (188.0) Impairment of assets (2) (1.1) (3.3) (64.7) Amortization of Wincor Nixdorf purchase accounting intangible assets (3) — (41.8) (52.8) Restructuring and transformation expenses (4) (5.1) (38.4) (98.9) Refinancing related costs (5) 0.3 (44.7) (13.4) Net non-routine expense (6) 0.2 (7.4) (34.3) Held for sale non-core European retail business (7) (1.0) (7.9) (16.7) (53.7) (303.3) (468.8) Operating profit (loss) 36.9 (5.5) (169.4) Other (expense) income (77.0) 1,453.9 (142.1) (Loss) profit before taxes $ (40.1) $ 1,448.4 $ (311.5) (1) Corporate charges not allocated to segments include headquarter-based costs associated primarily with human resources, finance, IT and legal that are not directly attributable to a particular segment and are separately assessed by the CODM for purposes of making decisions, assessing performance and allocating resources. It also includes the impact of $2.8 of revenue reversed due to a legal settlement penalty during the Successor Period. (2) Impairment in the 2023 Successor Period primarily relates to German and Indian facilities. Impairment in the 2023 Predecessor Periods primarily relate to leased European facilities closures. Impairment during the nine months ended September 30, 2022 Predecessor Period was primarily comprised of $38.4 related to impairment of capitalized cloud-based North America ERP, and the Company impaired $16.8 of assets connected with the Company's operations in Russia, Ukraine and Belarus as a result of the Russian incursion into Ukraine and the related economic sanctions. (3) The amortization of purchase accounting intangible assets is not included in the segment results used by the CODM to make decisions, allocate resources or assess performance. (4) Refer to Note 11 for further information regarding restructurings. Consistent with the historical reportable segment structure, restructuring and transformation costs are not assigned to the segments, and are separately analyzed by the CODM. (5) Refinancing related costs are fees earned by our advisors that have been accounted for as period expense. (6) Net non-routine expense consists of items that the Company has determined are non-routine in nature and not allocated to the reportable operating segments as they are not included in the measure used by the CODM to make decisions, allocate resources and assess performance. (7) Held for sale non-core European retail business represents the revenue and operating profit of a business that had been classified as held for sale in the Predecessor Period and sold during the Successor Period (see Note 15). It was removed in 2022 from the retail segment's information used by the CODM to make decisions, assess performance and allocate resources, and now is individually analyzed. This change and timing thereof aligns with the build-out of a data center that makes the entity capable of operating autonomously and is consistent with material provided in connection with our refinancing effort which are exclusive of this entity. (8) Excludes $2.8 of revenue reversed due to a legal settlement penalty during the Successor period. The following table presents information regarding the Company’s segment net sales by service and product solution: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Segments Banking Services $ 228.4 $ 173.0 $ 379.9 Products 180.6 80.2 200.4 Total Banking 409.0 253.2 580.3 Retail Services 76.0 66.7 130.4 Products 105.1 30.5 94.6 Total Retail 181.1 97.2 225.0 Held for sale non-core European retail business Services 1.1 0.9 4.0 Products 0.6 0.3 1.1 Total revenue $ 591.8 $ 351.6 $ 810.4 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Segments Banking Services $ 228.4 $ 954.3 $ 1,152.9 Products 180.6 556.7 580.4 Total Banking 409.0 1,511.0 1,733.3 Retail Services 76.0 335.2 405.6 Products 105.1 274.8 336.8 Total Retail 181.1 610.0 742.4 Held for sale non-core European retail business Services 1.1 5.5 7.4 Products 0.6 5.4 8.8 Total revenue $ 591.8 $ 2,131.9 $ 2,491.9 |
Research and Development
Research and Development | 3 Months Ended |
Sep. 30, 2023 | |
Research and Development [Abstract] | |
Research, Development, and Computer Software Disclosure | Note 23: Cloud Implementation At December 31, 2021, the Company had capitalized $50.7 of cloud implementation costs, which are presented in the Other assets caption of the condensed consolidated balance sheets. During the first quarter of 2022, the Company impaired $38.4 of capitalized cloud implementation costs related to a cloud-based North American enterprise resource planning (ERP) system, which was intended to replace the on premise ERP currently in use. In connection with the executive transition that took place in the first quarter of 2022 and the culmination of related process optimization workshops in March 2022, the Company made the decision to indefinitely suspend the cloud-based North America ERP implementation, which was going to require significant additional investment before it could function as well as our current North America ERP, and to instead focus the Company's ERP implementation efforts on the distribution subsidiaries, which can better leverage the standardization and simplification initiatives connected with the cloud-based implementation. As a result of the completed process optimization walkthroughs, the Company determined that the customizations already built for the North America ERP should not be leveraged at the distribution subsidiaries which require more streamlined and scalable process flows. At September 30, 2023, the Company had a net book value of capitalized cloud implementation costs of $19.3, which relates to a combination of the distribution subsidiary ERP and corporate tools to support business operations. Refer to Note 3 for further information on Fresh Start Accounting adjustments. Amortization of cloud implementation fees are expensed over the term of the cloud computing arrangement, and the expense is required to be recognized in the same line item in the income statement as the associated hosting service expenses. Amortization of cloud implementation fees were as follows: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Amortization of cloud implementation fees $ 1.3 $ 0.3 $ 0.6 Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Amortization of cloud implementation fees $ 1.3 $ 2.0 $ 1.6 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Note 7: Property, Plant, and Equipment As of August 11, 2023, as a result of Fresh Start Accounting, we have adjusted our property, plant and equipment, balances and remaining useful lives, to fair value. See Note 3 for additional information. In the Successor Period, property, plant, and equipment balances reflect fair value as of August 11, 2023 plus additions less disposals, depreciation and amortization for the period of August 12, 2023 through September 30, 2023. In the Predecessor Period, property, plant, and equipment is reflected at cost less accumulated depreciation and amortization. The following is a summary of property, plant, and equipment: Successor Predecessor Estimated Useful Life September 30, 2023 December 31, 2022 Land and land improvements (1) $ 20.8 $ 10.0 Buildings and building improvements 15-30 40.9 68.3 Machinery, tools and equipment 5-12 34.3 81.8 Leasehold improvements (2) 10 6.5 17.2 Computer equipment 3 17.7 101.1 Computer software 5-10 6.1 127.8 Furniture and fixtures 5-8 17.4 54.6 Tooling 3-5 10.9 134.7 Construction in progress 13.0 4.6 Total property plant and equipment, at cost $ 167.6 $ 600.1 Less accumulated depreciation and amortization (8.6) (479.4) Total property, plant, and equipment, net $ 159.0 $ 120.7 (1) Estimated useful life for land and land improvements is perpetual and 15 years, respectively. (2) The estimated useful life for leasehold improvements is the lesser of 10 years or the term of the lease. Depreciation expense is computed on a straight-line basis over the estimated useful lives of the related assets. Depreciation expense was as follows: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Depreciation expense $ 5.4 $ 5.8 $ 6.7 Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Depreciation expense $ 5.4 $ 18.3 $ 23.0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | |||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | $ 2,146.5 | $ (26.5) | $ (49.8) | $ 1,358.3 | $ (432.1) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Chapter 11 Cases and Dutch Sc_2
Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as a Going Concern and Other Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Reorganizations [Abstract] | |
Reorganization Items, Net | Reorganization items, net consisted of the following: Successor Predecessor Successor Predecessor 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 Gain on settlement of liabilities subject to compromise (non-cash) $ — $ 1,570.5 $ — $ 1,570.5 Fresh start valuation adjustments (non-cash) — 686.7 — 686.7 Professional fees (cash) (8.0) (35.2) (8.0) (38.7) Unamortized debt issuance costs (non-cash) — — — (124.6) DIP premium (non-cash) — 32.6 — (384.4) Debt make-whole premium (cash) — — — (91.0) Lease rejection damage claim (cash) — (3.8) — (3.8) Other (non-cash) — (0.5) — (0.6) Total Reorganization items, net $ (8.0) $ 2,250.3 $ (8.0) $ 1,614.1 Cash paid for Reorganization items, net was $4.7 and $107.2 for the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Period, respectively. The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Fair value of Exit Facility (1,250.0) Less: Net pension, post-retirement and other benefits liability (39.3) Less: Other debt (13.9) Less: Noncontrolling interests (13.9) Fair Value of Successor Equity $ 1,039.0 The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Net pension, post-retirement and other benefits liability (39.3) Plus: Fair value of non-debt current liabilities 1,398.3 Plus: Fair value of non-debt, non-current liabilities 225.0 Plus: Deferred income taxes, non-current 238.5 Reorganization Value of Successor's Assets to be Allocated $ 4,178.6 The adjustments included in the following fresh start condensed consolidated balance sheet reflect the effects of the transactions contemplated by the Plans and executed by the Company on the Fresh Start Reporting Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information and significant assumptions with regard to the adjustments recorded and the methods used to determine the fair values. Predecessor Reorganization Adjustments (1) Fresh Start Accounting Adjustments Successor August 11, 2023 August 12, 2023 ASSETS Current assets Cash and cash equivalents $ 404.9 $ (13.5) (2) $ — $ 391.4 Restricted cash 60.8 — — 60.8 Short-term investments 13.9 — — 13.9 Trade receivables, less allowances for doubtful accounts 623.9 — — 623.9 Inventories 712.8 — 32.8 (17) 745.6 Prepaid expenses 49.1 (3.5) (3) — 45.6 Current assets held for sale 9.9 — — 9.9 Other current assets 247.8 — — 247.8 Total current assets 2,123.1 (17.0) 32.8 2,138.9 Securities and other investments 7.0 — — 7.0 Property, plant, and equipment, net of accumulated depreciation and amortization 120.3 — 46.2 (18) 166.5 Deferred income taxes — 70.3 (4) (10.8) (19) 59.5 Goodwill 714.3 — (93.3) (20) 621.0 Customer relationships, net 176.1 — 378.2 (21) 554.3 Other intangible assets, net 45.1 — 320.0 (22) 365.1 Other assets 256.8 — 9.5 (23) 266.3 Total assets $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 LIABILITIES AND EQUITY Current liabilities Notes payable $ 1,254.9 $ (1,250.0) (5) $ — $ 4.9 Accounts payable 461.0 — — 461.0 Deferred revenue 421.0 — — 421.0 Payroll and other benefits liabilities 159.2 (0.1) (6) — 159.1 Current liabilities held for sale 10.2 — 0.7 (24) 10.9 DIP facility premium 384.4 (384.4) (7) — — Other current liabilities 343.3 5.5 (8) 1.5 (25) 350.3 Total current liabilities 3,034.0 (1,629.0) 2.2 1,407.2 Long-term debt 4.2 1,248.7 (9) 0.8 (26) 1,253.7 Pensions, post-retirement and other benefits 102.3 — (0.3) (27) 102.0 Deferred income taxes 85.8 (26.4) (4) 179.1 (19) 238.5 Other liabilities 120.3 — 4.0 (28) 124.3 Liabilities subject to compromise 2,232.4 (2,232.4) (10) — — Total liabilities $ 5,579.0 (2,639.1) 185.8 3,125.7 Equity Diebold Nixdorf, Incorporated shareholders' equity Predecessor common shares 121.2 (121.2) (11) — — Successor common stock — 0.4 (12) — 0.4 Paid-in capital; predecessor 832.3 (442.3) (13) (390.0) (29) — Paid-in capital; successor — 1,038.6 (14) — 1,038.6 Retained earnings (accumulated deficit) (2,204.8) 1,659.4 (15) 545.4 (29) — Treasury shares, at cost (586.4) 586.4 (13) — — Accumulated other comprehensive income (loss) (320.0) (8.8) (16) 328.8 (29) — Equity warrants 20.1 (20.1) (13) — — Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) (2,137.6) 2,692.4 484.2 1,039.0 Noncontrolling interests 1.3 — 12.6 (30) 13.9 Total equity (deficit) (2,136.3) 2,692.4 496.8 1,052.9 Total liabilities and equity (deficit) $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 Reorganization Adjustments (1) Represent amounts recorded as of the Fresh Start Reporting Date for the implementation of the Plans, including, among other items, settlement of the Predecessor's liabilities subject to compromise, distributions of cash, conversion of the DIP Facility to the Exit Facility, and the issuance of the Successor common stock. (2) Changes in cash and cash equivalents include the following: Payment of interest on the DIP Facility $ (1.8) Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Payment of lease rejection damages (3.8) Payment of professional fees (4.4) Net change in cash and cash equivalents $ (13.5) (3) Reflects the elimination of prepaid directors and officers insurance policies related to the Predecessor. (4) Change in deferred tax assets and liabilities as a result of release of valuation allowance, partially offset by reduction of estimated tax attributes due to cancellation of debt. (5) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities, based on the maturity of the debt. (6) Reflects the acceleration and cancellation of unvested Predecessor stock compensation awards. (7) Represents the issuance of Successor common stock to the settle the DIP Facility premiums. (8) Changes in other current liabilities includes the following: Accrual of professional fees $ 6.3 Accrual of German transfer tax 5.0 Accrual of deferred financing fees 1.3 Cancellation of unvested Predecessor stock compensation awards (0.9) Payment of interest on the DIP Facility (1.8) Payment of professional fees (4.4) Net change in other current liabilities $ 5.5 (9) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities ($1,250.0) and recording of deferred financing fees ($1.3), based on the maturity of the debt. (10) Liabilities Subject to Compromise were settled in accordance with the Plans and the resulting gain was determined as follows: Debt subject to compromise $ 2,160.5 Accrued interest on debt subject to compromise 68.1 Lease liability 3.8 Total liabilities subject to compromise $ 2,232.4 Less: Distribution of common stock to holders of First Lien Claims and Second Lien Notes Claims (654.6) Less: Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Less: Payment of lease rejection damages (3.8) Gain on Settlement of Liabilities Subject to Compromise $ 1,570.5 (11) Represents the cancellation of Predecessor common shares at par value. (12) Reflects the par value of Successor common stock issued to holders of the First Lien Claims and Second Lien Notes Claims ($0.3) and the DIP Facility premiums ($0.1), pursuant to the Plans. (13) Change in Predecessor paid-in-capital reflect the following: Cancellation of Predecessor common shares at par value $ 121.2 Cancellation of Predecessor equity warrants 20.1 Acceleration of the vesting of Predecessor equity awards upon the Effective Date 2.8 Cancellation of Predecessor treasury stock, at cost (586.4) Change in Predecessor paid-in-capital $ (442.3) (14) Represents paid in capital associated with the issuance of Successor common stock to holders of First Lien Claims and Second Lien Notes Claims ($654.3) and the DIP Facility premiums ($384.3), pursuant to the Plans. (15) Net change in accumulated deficit includes the following: Gain on Settlement of Liabilities Subject to Compromise $ 1,570.5 Net deferred tax impacts on the effectiveness of the Plans 96.7 Elimination of unvested Predecessor stock compensation awards (liability classified) 0.8 Accrual of professional fees (6.3) Elimination of prepaid directors and officers insurance policies related to the Predecessor (3.5) Acceleration of the vesting of Predecessor equity awards upon the Effective Date (2.6) Elimination of accumulated other comprehensive income related to interest rate swaps 8.8 Accrual of German transfer tax (5.0) Net change in accumulated deficit $ 1,659.4 (16) Represents the elimination of accumulated other comprehensive income related to interest rate swaps. Fresh Start Accounting Adjustments Amounts presented for "Predecessor Historical Value" represents the carrying value of the asset/liability prior to the implementation of the Plans. (17) Reflects adjustments to inventory at its estimated fair value due to the adoptions of Fresh Start Accounting. Successor Fair Value Predecessor Historical Value Raw materials and work in process, net $ 226.4 $ 232.7 Finished goods, net 347.3 308.2 Total product inventories 573.7 540.9 Service parts 171.9 171.9 Total inventories $ 745.6 $ 712.8 (18) Changes in property, plant and equipment reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of property, plant, and equipment: Successor Fair Value Predecessor Historical Value Land and land improvements $ 21.5 $ 10.4 Buildings and building improvements 42.3 70.5 Leasehold improvements 6.1 17.4 Computer equipment 16.1 105.1 Computer software 5.9 128.7 Furniture and fixtures 17.3 55.9 Tooling 11.1 137.5 Machinery, tools and equipment 32.4 83.4 Construction in progress 13.8 12.2 Total property, plant and equipment, at cost 166.5 621.1 Less accumulated depreciation and amortization — (500.8) Total property, plant, and equipment, net $ 166.5 $ 120.3 (19) Adjustments to deferred income taxes for changes in financial reporting basis of assets and liabilities as a result of the adoption of fresh start accounting. (20) Reflects adjustment to goodwill for the excess of the reorganization value of assets over the fair value of identifiable tangible and intangible assets. (21) Changes in customer relationships reflects the fair value adjustment due to the adoption of Fresh Start Accounting. (22) Changes in other intangible assets reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of other intangible assets: Successor Fair Value Predecessor Historical Value Capitalized software development 13.8 260.4 Development costs non-software 32.2 50.4 Tradenames and trademarks 118.6 — Technology know-how 160.8 — Other intangibles 39.7 51.8 Other intangible assets, at cost 365.1 362.6 Less accumulated amortization — (317.5) Total intangibles, net $ 365.1 $ 45.1 (23) Changes in other assets reflects fair value adjustments from implementation of Fresh Start Accounting. The following table summarizes the components of other assets: Successor Fair Value Predecessor Historical Value Cloud projects, at cost 19.9 25.6 Less accumulated depreciation and amortization — (5.3) Cloud projects, net 19.9 20.3 Right-of-use operating lease assets 102.2 89.6 Right-of-use finance lease assets 8.7 7.9 Joint ventures 30.3 33.7 Pensions, post-retirement and other benefits 71.3 71.4 Other assets 33.9 33.9 Total other assets $ 266.3 $ 256.8 (24) Reflects changes in the fair value of current liabilities held for sale due to the adoption of Fresh Start Accounting. (25) Reflects changes in the fair value of operating lease liabilities ($0.8 increase) and finance lease liability ($0.7 increase) due to the adoption of Fresh Start Accounting. (26) Reflects changes in the finance lease liabilities ($0.8 increase) due to the adoption of Fresh Start Accounting. (27) Reflects the remeasurement adjustment to pensions, post-retirement benefits, and other benefits driven by changes in actuarial assumptions. (28) Reflects changes in the fair value of operating lease liabilities ($6.2 increase) and other liabilities ($2.2 decrease) due to the adoption of Fresh Start Accounting. (29) Reflects the cumulative impact of Fresh Start Accounting adjustments discussed above and below and the elimination of Predecessor capital in excess of par value and Predecessor accumulated deficit. Customer relationships, net 378.2 Other intangible assets 320.0 Other assets fair value adjustments 9.5 Property, plant and equipment 46.2 Inventories 32.8 Current Liabilities (2.2) Long-term debt (0.8) Pensions, post-retirement and other benefits 0.3 Other long-term liabilities (4.0) Goodwill (93.3) Fresh start valuation gain $ 686.7 Deferred income taxes (189.9) Fresh start valuation adjustment for noncontrolling interest (12.6) Elimination of Predecessor paid-in-capital 390.0 Elimination of Predecessor other comprehensive loss (328.8) Net Change in Accumulated Deficit $ 545.4 (30) Reflects the fair value adjustment to noncontrolling interests in certain consolidated subsidiaries. |
Fresh Start Accounting (Tables)
Fresh Start Accounting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Reorganizations [Abstract] | |
Reorganization Items, Net | Reorganization items, net consisted of the following: Successor Predecessor Successor Predecessor 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 Gain on settlement of liabilities subject to compromise (non-cash) $ — $ 1,570.5 $ — $ 1,570.5 Fresh start valuation adjustments (non-cash) — 686.7 — 686.7 Professional fees (cash) (8.0) (35.2) (8.0) (38.7) Unamortized debt issuance costs (non-cash) — — — (124.6) DIP premium (non-cash) — 32.6 — (384.4) Debt make-whole premium (cash) — — — (91.0) Lease rejection damage claim (cash) — (3.8) — (3.8) Other (non-cash) — (0.5) — (0.6) Total Reorganization items, net $ (8.0) $ 2,250.3 $ (8.0) $ 1,614.1 Cash paid for Reorganization items, net was $4.7 and $107.2 for the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Period, respectively. The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Fair value of Exit Facility (1,250.0) Less: Net pension, post-retirement and other benefits liability (39.3) Less: Other debt (13.9) Less: Noncontrolling interests (13.9) Fair Value of Successor Equity $ 1,039.0 The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Net pension, post-retirement and other benefits liability (39.3) Plus: Fair value of non-debt current liabilities 1,398.3 Plus: Fair value of non-debt, non-current liabilities 225.0 Plus: Deferred income taxes, non-current 238.5 Reorganization Value of Successor's Assets to be Allocated $ 4,178.6 The adjustments included in the following fresh start condensed consolidated balance sheet reflect the effects of the transactions contemplated by the Plans and executed by the Company on the Fresh Start Reporting Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information and significant assumptions with regard to the adjustments recorded and the methods used to determine the fair values. Predecessor Reorganization Adjustments (1) Fresh Start Accounting Adjustments Successor August 11, 2023 August 12, 2023 ASSETS Current assets Cash and cash equivalents $ 404.9 $ (13.5) (2) $ — $ 391.4 Restricted cash 60.8 — — 60.8 Short-term investments 13.9 — — 13.9 Trade receivables, less allowances for doubtful accounts 623.9 — — 623.9 Inventories 712.8 — 32.8 (17) 745.6 Prepaid expenses 49.1 (3.5) (3) — 45.6 Current assets held for sale 9.9 — — 9.9 Other current assets 247.8 — — 247.8 Total current assets 2,123.1 (17.0) 32.8 2,138.9 Securities and other investments 7.0 — — 7.0 Property, plant, and equipment, net of accumulated depreciation and amortization 120.3 — 46.2 (18) 166.5 Deferred income taxes — 70.3 (4) (10.8) (19) 59.5 Goodwill 714.3 — (93.3) (20) 621.0 Customer relationships, net 176.1 — 378.2 (21) 554.3 Other intangible assets, net 45.1 — 320.0 (22) 365.1 Other assets 256.8 — 9.5 (23) 266.3 Total assets $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 LIABILITIES AND EQUITY Current liabilities Notes payable $ 1,254.9 $ (1,250.0) (5) $ — $ 4.9 Accounts payable 461.0 — — 461.0 Deferred revenue 421.0 — — 421.0 Payroll and other benefits liabilities 159.2 (0.1) (6) — 159.1 Current liabilities held for sale 10.2 — 0.7 (24) 10.9 DIP facility premium 384.4 (384.4) (7) — — Other current liabilities 343.3 5.5 (8) 1.5 (25) 350.3 Total current liabilities 3,034.0 (1,629.0) 2.2 1,407.2 Long-term debt 4.2 1,248.7 (9) 0.8 (26) 1,253.7 Pensions, post-retirement and other benefits 102.3 — (0.3) (27) 102.0 Deferred income taxes 85.8 (26.4) (4) 179.1 (19) 238.5 Other liabilities 120.3 — 4.0 (28) 124.3 Liabilities subject to compromise 2,232.4 (2,232.4) (10) — — Total liabilities $ 5,579.0 (2,639.1) 185.8 3,125.7 Equity Diebold Nixdorf, Incorporated shareholders' equity Predecessor common shares 121.2 (121.2) (11) — — Successor common stock — 0.4 (12) — 0.4 Paid-in capital; predecessor 832.3 (442.3) (13) (390.0) (29) — Paid-in capital; successor — 1,038.6 (14) — 1,038.6 Retained earnings (accumulated deficit) (2,204.8) 1,659.4 (15) 545.4 (29) — Treasury shares, at cost (586.4) 586.4 (13) — — Accumulated other comprehensive income (loss) (320.0) (8.8) (16) 328.8 (29) — Equity warrants 20.1 (20.1) (13) — — Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) (2,137.6) 2,692.4 484.2 1,039.0 Noncontrolling interests 1.3 — 12.6 (30) 13.9 Total equity (deficit) (2,136.3) 2,692.4 496.8 1,052.9 Total liabilities and equity (deficit) $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 Reorganization Adjustments (1) Represent amounts recorded as of the Fresh Start Reporting Date for the implementation of the Plans, including, among other items, settlement of the Predecessor's liabilities subject to compromise, distributions of cash, conversion of the DIP Facility to the Exit Facility, and the issuance of the Successor common stock. (2) Changes in cash and cash equivalents include the following: Payment of interest on the DIP Facility $ (1.8) Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Payment of lease rejection damages (3.8) Payment of professional fees (4.4) Net change in cash and cash equivalents $ (13.5) (3) Reflects the elimination of prepaid directors and officers insurance policies related to the Predecessor. (4) Change in deferred tax assets and liabilities as a result of release of valuation allowance, partially offset by reduction of estimated tax attributes due to cancellation of debt. (5) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities, based on the maturity of the debt. (6) Reflects the acceleration and cancellation of unvested Predecessor stock compensation awards. (7) Represents the issuance of Successor common stock to the settle the DIP Facility premiums. (8) Changes in other current liabilities includes the following: Accrual of professional fees $ 6.3 Accrual of German transfer tax 5.0 Accrual of deferred financing fees 1.3 Cancellation of unvested Predecessor stock compensation awards (0.9) Payment of interest on the DIP Facility (1.8) Payment of professional fees (4.4) Net change in other current liabilities $ 5.5 (9) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities ($1,250.0) and recording of deferred financing fees ($1.3), based on the maturity of the debt. (10) Liabilities Subject to Compromise were settled in accordance with the Plans and the resulting gain was determined as follows: Debt subject to compromise $ 2,160.5 Accrued interest on debt subject to compromise 68.1 Lease liability 3.8 Total liabilities subject to compromise $ 2,232.4 Less: Distribution of common stock to holders of First Lien Claims and Second Lien Notes Claims (654.6) Less: Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Less: Payment of lease rejection damages (3.8) Gain on Settlement of Liabilities Subject to Compromise $ 1,570.5 (11) Represents the cancellation of Predecessor common shares at par value. (12) Reflects the par value of Successor common stock issued to holders of the First Lien Claims and Second Lien Notes Claims ($0.3) and the DIP Facility premiums ($0.1), pursuant to the Plans. (13) Change in Predecessor paid-in-capital reflect the following: Cancellation of Predecessor common shares at par value $ 121.2 Cancellation of Predecessor equity warrants 20.1 Acceleration of the vesting of Predecessor equity awards upon the Effective Date 2.8 Cancellation of Predecessor treasury stock, at cost (586.4) Change in Predecessor paid-in-capital $ (442.3) (14) Represents paid in capital associated with the issuance of Successor common stock to holders of First Lien Claims and Second Lien Notes Claims ($654.3) and the DIP Facility premiums ($384.3), pursuant to the Plans. (15) Net change in accumulated deficit includes the following: Gain on Settlement of Liabilities Subject to Compromise $ 1,570.5 Net deferred tax impacts on the effectiveness of the Plans 96.7 Elimination of unvested Predecessor stock compensation awards (liability classified) 0.8 Accrual of professional fees (6.3) Elimination of prepaid directors and officers insurance policies related to the Predecessor (3.5) Acceleration of the vesting of Predecessor equity awards upon the Effective Date (2.6) Elimination of accumulated other comprehensive income related to interest rate swaps 8.8 Accrual of German transfer tax (5.0) Net change in accumulated deficit $ 1,659.4 (16) Represents the elimination of accumulated other comprehensive income related to interest rate swaps. Fresh Start Accounting Adjustments Amounts presented for "Predecessor Historical Value" represents the carrying value of the asset/liability prior to the implementation of the Plans. (17) Reflects adjustments to inventory at its estimated fair value due to the adoptions of Fresh Start Accounting. Successor Fair Value Predecessor Historical Value Raw materials and work in process, net $ 226.4 $ 232.7 Finished goods, net 347.3 308.2 Total product inventories 573.7 540.9 Service parts 171.9 171.9 Total inventories $ 745.6 $ 712.8 (18) Changes in property, plant and equipment reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of property, plant, and equipment: Successor Fair Value Predecessor Historical Value Land and land improvements $ 21.5 $ 10.4 Buildings and building improvements 42.3 70.5 Leasehold improvements 6.1 17.4 Computer equipment 16.1 105.1 Computer software 5.9 128.7 Furniture and fixtures 17.3 55.9 Tooling 11.1 137.5 Machinery, tools and equipment 32.4 83.4 Construction in progress 13.8 12.2 Total property, plant and equipment, at cost 166.5 621.1 Less accumulated depreciation and amortization — (500.8) Total property, plant, and equipment, net $ 166.5 $ 120.3 (19) Adjustments to deferred income taxes for changes in financial reporting basis of assets and liabilities as a result of the adoption of fresh start accounting. (20) Reflects adjustment to goodwill for the excess of the reorganization value of assets over the fair value of identifiable tangible and intangible assets. (21) Changes in customer relationships reflects the fair value adjustment due to the adoption of Fresh Start Accounting. (22) Changes in other intangible assets reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of other intangible assets: Successor Fair Value Predecessor Historical Value Capitalized software development 13.8 260.4 Development costs non-software 32.2 50.4 Tradenames and trademarks 118.6 — Technology know-how 160.8 — Other intangibles 39.7 51.8 Other intangible assets, at cost 365.1 362.6 Less accumulated amortization — (317.5) Total intangibles, net $ 365.1 $ 45.1 (23) Changes in other assets reflects fair value adjustments from implementation of Fresh Start Accounting. The following table summarizes the components of other assets: Successor Fair Value Predecessor Historical Value Cloud projects, at cost 19.9 25.6 Less accumulated depreciation and amortization — (5.3) Cloud projects, net 19.9 20.3 Right-of-use operating lease assets 102.2 89.6 Right-of-use finance lease assets 8.7 7.9 Joint ventures 30.3 33.7 Pensions, post-retirement and other benefits 71.3 71.4 Other assets 33.9 33.9 Total other assets $ 266.3 $ 256.8 (24) Reflects changes in the fair value of current liabilities held for sale due to the adoption of Fresh Start Accounting. (25) Reflects changes in the fair value of operating lease liabilities ($0.8 increase) and finance lease liability ($0.7 increase) due to the adoption of Fresh Start Accounting. (26) Reflects changes in the finance lease liabilities ($0.8 increase) due to the adoption of Fresh Start Accounting. (27) Reflects the remeasurement adjustment to pensions, post-retirement benefits, and other benefits driven by changes in actuarial assumptions. (28) Reflects changes in the fair value of operating lease liabilities ($6.2 increase) and other liabilities ($2.2 decrease) due to the adoption of Fresh Start Accounting. (29) Reflects the cumulative impact of Fresh Start Accounting adjustments discussed above and below and the elimination of Predecessor capital in excess of par value and Predecessor accumulated deficit. Customer relationships, net 378.2 Other intangible assets 320.0 Other assets fair value adjustments 9.5 Property, plant and equipment 46.2 Inventories 32.8 Current Liabilities (2.2) Long-term debt (0.8) Pensions, post-retirement and other benefits 0.3 Other long-term liabilities (4.0) Goodwill (93.3) Fresh start valuation gain $ 686.7 Deferred income taxes (189.9) Fresh start valuation adjustment for noncontrolling interest (12.6) Elimination of Predecessor paid-in-capital 390.0 Elimination of Predecessor other comprehensive loss (328.8) Net Change in Accumulated Deficit $ 545.4 (30) Reflects the fair value adjustment to noncontrolling interests in certain consolidated subsidiaries. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share under the treasury stock method and the effect on the weighted-average number of shares of dilutive potential common stock: | The following table represents amounts used in computing earnings (loss) per share and the effect on the weighted-average number of shares of potential dilutive common stock: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Numerator Income (loss) used in basic and diluted loss per share Net income (loss) $ (25.8) $ 2,146.3 $ (50.5) Net income (loss) attributable to noncontrolling interests 0.7 (0.2) (0.7) Net income (loss) attributable to Diebold Nixdorf, Incorporated $ (26.5) $ 2,146.5 $ (49.8) Denominator Weighted-average number of shares of common stock used in basic earnings (loss) per share 37.6 80.0 79.1 Effect of dilutive shares (1) — 1.4 — Weighted-average number of shares used in diluted earnings (loss) per share 37.6 81.4 79.1 Net income (loss) attributable to Diebold Nixdorf, Incorporated Basic earnings (loss) per share $ (0.70) $ 26.83 $ (0.63) Diluted earnings (loss) per share (0.70) 26.37 (0.63) Anti-dilutive shares Anti-dilutive shares not used in calculating diluted weighted-average shares — 1.9 4.1 (1) Shares of 1.8 for Predecessor Period of the three months ended September 30, 2022 are excluded from the computation of diluted loss per share because the effects are anti-dilutive, due to the net loss position. Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Numerator Income (loss) used in basic and diluted loss per share Net income (loss) $ (25.8) $ 1,357.5 $ (433.5) Net income (loss) attributable to noncontrolling interests 0.7 (0.8) (1.4) Net income (loss) attributable to Diebold Nixdorf, Incorporated $ (26.5) $ 1,358.3 $ (432.1) Denominator Weighted-average number of shares of common stock used in basic earnings (loss) per share 37.6 79.7 78.9 Effect of dilutive shares (1) — 1.7 — Weighted-average number of shares used in diluted earnings (loss) per share 37.6 81.4 78.9 Net income (loss) attributable to Diebold Nixdorf, Incorporated Basic earnings (loss) per share $ (0.70) $ 17.04 $ (5.48) Diluted earnings (loss) per share $ (0.70) $ 16.69 $ (5.48) Anti-dilutive shares Anti-dilutive shares not used in calculating diluted weighted-average shares — 2.1 4.2 (1) Shares of 1.4 for the Predecessor Period of the nine months ended September 30, 2022, respectively, are excluded from the computation of diluted loss per share because the effects are anti-dilutive, due to the net loss position. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Income Tax Expense/(Benefit) (13.2) 94.1 3.9 Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Income Tax Expense/(Benefit) (13.2) 90.4 119.0 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Major classes of inventories | Major classes of inventories are summarized as follows: Successor Predecessor September 30, 2023 December 31, 2022 Raw materials and work in process $ 192.8 $ 200.6 Finished goods 303.6 229.4 Total product inventories 496.4 430.0 Service parts 169.8 158.1 Total inventories $ 666.2 $ 588.1 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment | The Company’s investments subject to fair value measurement consist of the following: Cost Basis Unrealized Fair Value As of September 30, 2023 (Successor) Short-term investments Certificates of deposit $ 16.6 $ — $ 16.6 Long-term investments Assets held in a rabbi trust $ 2.4 $ 0.4 $ 2.8 As of December 31, 2022 (Predecessor) Short-term investments Certificates of deposit $ 24.6 $ — $ 24.6 Long-term investments Assets held in a rabbi trust $ 4.3 $ 0.1 $ 4.4 |
Goodwill and Other Assets (Tabl
Goodwill and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the period from January 1, 2023 through August 11, 2023 (Predecessor) and August 12, 2023 through September 30, 2023 (Successor) are as follows: Banking Retail Total Goodwill $ 903.6 $ 269.6 $ 1,173.2 Accumulated impairment (413.7) (57.2) (470.9) Balance at January 1, 2023 (Predecessor) $ 489.9 $ 212.4 $ 702.3 Currency translation adjustment 8.5 3.5 12.0 Goodwill $ 912.1 $ 273.1 $ 1,185.2 Accumulated impairment (413.7) (57.2) (470.9) Fresh Start Adjustment (27.0) (66.3) (93.3) Balance at August 12, 2023 (Successor) $ 471.4 $ 149.6 $ 621.0 Currency translation adjustment $ (14.0) $ (6.1) $ (20.1) Divestitures $ — $ (4.2) $ (4.2) Balance at September 30, 2023 $ 457.4 $ 139.3 $ 596.7 |
Schedule Of Intangible Assets [Table Text Block] | The following summarizes information on Intangible assets by major category: Successor Predecessor September 30, 2023 December 31, 2022 Weighted-average remaining useful lives Gross Accumulated Net Gross Accumulated Net Customer relationships 16.4 years $ 537.0 $ (4.4) $ 532.6 $ 662.3 $ (448.7) $ 213.6 Trade name/trademark 17.4 years 115.8 (0.9) 114.9 — — — Capitalized software development 2.9 years 16.8 (0.8) 16.0 245.2 (202.7) 42.5 Development costs non-software 5.8 years 188.5 (4.4) 184.1 48.7 (48.7) — Other intangibles 1.5 years 39.9 (3.4) 36.5 48.7 (47.2) 1.5 Other intangible assets, net 361.0 (9.5) 351.5 342.6 (298.6) 44.0 Total $ 898.0 $ (13.9) $ 884.1 $ 1,004.9 $ (747.3) $ 257.6 |
Schedule Of Capitalized Software Development | The following table identifies the activity relating to total capitalized software development: 2023 Beginning balance as of January 1 (Predecessor) $ 42.5 Capitalization 13.1 Amortization (12.4) Other (6.1) Fresh Start Accounting adjustment (23.3) Beginning balance as of August 12 (Successor) 13.8 Capitalization 3.7 Amortization (0.8) Other (0.7) Ending balance as of September 30 (Successor) $ 16.0 2022 Beginning balance as of January 1 (Predecessor) $ 43.2 Capitalization 24.0 Amortization (19.7) Other (9.0) Ending balance as of September 30 (Predecessor) $ 38.5 |
Finite-Lived Intangible Assets Amortization Expense | Total amortization expense, excluding amounts related to deferred financing costs, was as follows: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Amortization expense, excluding deferred financing costs $ 15.6 $ 11.0 $ 23.2 Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Amortization expense, excluding deferred financing costs $ 15.6 $ 59.0 $ 72.1 |
Guarantees and Product Warran_2
Guarantees and Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Guarantees and Product Warranties Disclosure [Abstract] | |
Changes in warranty liability balance | Changes in the Company’s warranty liability balance are illustrated in the following tables: 2023 Beginning balance as of January 1 (Predecessor) $ 28.3 Current period accruals 18.8 Current period settlements (21.9) Currency translation adjustment 1.4 Beginning balance as of August 12 (Successor) 26.6 Current period accruals 3.9 Current period settlements (4.1) Currency translation adjustment (1.2) Ending balance as of September 30 (Successor) $ 25.2 2022 Beginning balance as of January 1 (Predecessor) $ 36.3 Current period accruals 12.2 Current period settlements (17.0) Currency translation adjustment (2.6) Ending balance as of September 30 (Predecessor) $ 28.9 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following tables summarizes the impact of the Company’s restructuring and transformation charges on the consolidated statements of operations: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Cost of sales – services $ (2.5) $ 1.1 $ 3.0 Cost of sales – products (1.8) 0.2 1.3 Selling and administrative expense 9.9 3.0 13.9 Research, development and engineering expense 0.1 0.4 2.5 Loss on sale of assets, net 0.5 0.6 — Total $ 6.2 $ 5.3 $ 20.7 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Cost of sales – services $ (2.5) $ 5.3 $ 7.4 Cost of sales – products (1.8) 0.8 10.0 Selling and administrative expense 9.9 29.4 71.7 Research, development and engineering expense 0.1 1.5 9.8 Loss on sale of assets, net 0.5 1.9 — Total $ 6.2 $ 38.9 $ 98.9 |
Restructuring accrual balances and related activity | The following table summarizes the Company’s severance accrual balance and related activity: 2023 Beginning balance as of January 1 (Predecessor) $ 44.2 Severance accrual 6.8 Payout/Settlement (37.0) Other 0.4 Beginning balance as of August 12 (Successor) 14.4 Severance accrual 3.3 Payout/Settlement (5.4) Other (0.3) Ending balance as of September 30 (Successor) $ 12.0 2022 Beginning balance as of January 1 (Predecessor) $ 35.3 Severance accrual 54.9 Payout/Settlement (35.6) Other (0.3) Ending balance as of September 30 (Predecessor) $ 54.3 |
Reorganization Items, Net | Reorganization items, net consisted of the following: Successor Predecessor Successor Predecessor 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 Gain on settlement of liabilities subject to compromise (non-cash) $ — $ 1,570.5 $ — $ 1,570.5 Fresh start valuation adjustments (non-cash) — 686.7 — 686.7 Professional fees (cash) (8.0) (35.2) (8.0) (38.7) Unamortized debt issuance costs (non-cash) — — — (124.6) DIP premium (non-cash) — 32.6 — (384.4) Debt make-whole premium (cash) — — — (91.0) Lease rejection damage claim (cash) — (3.8) — (3.8) Other (non-cash) — (0.5) — (0.6) Total Reorganization items, net $ (8.0) $ 2,250.3 $ (8.0) $ 1,614.1 Cash paid for Reorganization items, net was $4.7 and $107.2 for the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Period, respectively. The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Fair value of Exit Facility (1,250.0) Less: Net pension, post-retirement and other benefits liability (39.3) Less: Other debt (13.9) Less: Noncontrolling interests (13.9) Fair Value of Successor Equity $ 1,039.0 The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date: Enterprise value $ 2,150.0 Plus: Excess cash available for operations 206.1 Less: Net pension, post-retirement and other benefits liability (39.3) Plus: Fair value of non-debt current liabilities 1,398.3 Plus: Fair value of non-debt, non-current liabilities 225.0 Plus: Deferred income taxes, non-current 238.5 Reorganization Value of Successor's Assets to be Allocated $ 4,178.6 The adjustments included in the following fresh start condensed consolidated balance sheet reflect the effects of the transactions contemplated by the Plans and executed by the Company on the Fresh Start Reporting Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information and significant assumptions with regard to the adjustments recorded and the methods used to determine the fair values. Predecessor Reorganization Adjustments (1) Fresh Start Accounting Adjustments Successor August 11, 2023 August 12, 2023 ASSETS Current assets Cash and cash equivalents $ 404.9 $ (13.5) (2) $ — $ 391.4 Restricted cash 60.8 — — 60.8 Short-term investments 13.9 — — 13.9 Trade receivables, less allowances for doubtful accounts 623.9 — — 623.9 Inventories 712.8 — 32.8 (17) 745.6 Prepaid expenses 49.1 (3.5) (3) — 45.6 Current assets held for sale 9.9 — — 9.9 Other current assets 247.8 — — 247.8 Total current assets 2,123.1 (17.0) 32.8 2,138.9 Securities and other investments 7.0 — — 7.0 Property, plant, and equipment, net of accumulated depreciation and amortization 120.3 — 46.2 (18) 166.5 Deferred income taxes — 70.3 (4) (10.8) (19) 59.5 Goodwill 714.3 — (93.3) (20) 621.0 Customer relationships, net 176.1 — 378.2 (21) 554.3 Other intangible assets, net 45.1 — 320.0 (22) 365.1 Other assets 256.8 — 9.5 (23) 266.3 Total assets $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 LIABILITIES AND EQUITY Current liabilities Notes payable $ 1,254.9 $ (1,250.0) (5) $ — $ 4.9 Accounts payable 461.0 — — 461.0 Deferred revenue 421.0 — — 421.0 Payroll and other benefits liabilities 159.2 (0.1) (6) — 159.1 Current liabilities held for sale 10.2 — 0.7 (24) 10.9 DIP facility premium 384.4 (384.4) (7) — — Other current liabilities 343.3 5.5 (8) 1.5 (25) 350.3 Total current liabilities 3,034.0 (1,629.0) 2.2 1,407.2 Long-term debt 4.2 1,248.7 (9) 0.8 (26) 1,253.7 Pensions, post-retirement and other benefits 102.3 — (0.3) (27) 102.0 Deferred income taxes 85.8 (26.4) (4) 179.1 (19) 238.5 Other liabilities 120.3 — 4.0 (28) 124.3 Liabilities subject to compromise 2,232.4 (2,232.4) (10) — — Total liabilities $ 5,579.0 (2,639.1) 185.8 3,125.7 Equity Diebold Nixdorf, Incorporated shareholders' equity Predecessor common shares 121.2 (121.2) (11) — — Successor common stock — 0.4 (12) — 0.4 Paid-in capital; predecessor 832.3 (442.3) (13) (390.0) (29) — Paid-in capital; successor — 1,038.6 (14) — 1,038.6 Retained earnings (accumulated deficit) (2,204.8) 1,659.4 (15) 545.4 (29) — Treasury shares, at cost (586.4) 586.4 (13) — — Accumulated other comprehensive income (loss) (320.0) (8.8) (16) 328.8 (29) — Equity warrants 20.1 (20.1) (13) — — Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) (2,137.6) 2,692.4 484.2 1,039.0 Noncontrolling interests 1.3 — 12.6 (30) 13.9 Total equity (deficit) (2,136.3) 2,692.4 496.8 1,052.9 Total liabilities and equity (deficit) $ 3,442.7 $ 53.3 $ 682.6 $ 4,178.6 Reorganization Adjustments (1) Represent amounts recorded as of the Fresh Start Reporting Date for the implementation of the Plans, including, among other items, settlement of the Predecessor's liabilities subject to compromise, distributions of cash, conversion of the DIP Facility to the Exit Facility, and the issuance of the Successor common stock. (2) Changes in cash and cash equivalents include the following: Payment of interest on the DIP Facility $ (1.8) Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Payment of lease rejection damages (3.8) Payment of professional fees (4.4) Net change in cash and cash equivalents $ (13.5) (3) Reflects the elimination of prepaid directors and officers insurance policies related to the Predecessor. (4) Change in deferred tax assets and liabilities as a result of release of valuation allowance, partially offset by reduction of estimated tax attributes due to cancellation of debt. (5) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities, based on the maturity of the debt. (6) Reflects the acceleration and cancellation of unvested Predecessor stock compensation awards. (7) Represents the issuance of Successor common stock to the settle the DIP Facility premiums. (8) Changes in other current liabilities includes the following: Accrual of professional fees $ 6.3 Accrual of German transfer tax 5.0 Accrual of deferred financing fees 1.3 Cancellation of unvested Predecessor stock compensation awards (0.9) Payment of interest on the DIP Facility (1.8) Payment of professional fees (4.4) Net change in other current liabilities $ 5.5 (9) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities ($1,250.0) and recording of deferred financing fees ($1.3), based on the maturity of the debt. (10) Liabilities Subject to Compromise were settled in accordance with the Plans and the resulting gain was determined as follows: Debt subject to compromise $ 2,160.5 Accrued interest on debt subject to compromise 68.1 Lease liability 3.8 Total liabilities subject to compromise $ 2,232.4 Less: Distribution of common stock to holders of First Lien Claims and Second Lien Notes Claims (654.6) Less: Payment to holders of the 2024 Stub Unsecured Notes Claims (3.5) Less: Payment of lease rejection damages (3.8) Gain on Settlement of Liabilities Subject to Compromise $ 1,570.5 (11) Represents the cancellation of Predecessor common shares at par value. (12) Reflects the par value of Successor common stock issued to holders of the First Lien Claims and Second Lien Notes Claims ($0.3) and the DIP Facility premiums ($0.1), pursuant to the Plans. (13) Change in Predecessor paid-in-capital reflect the following: Cancellation of Predecessor common shares at par value $ 121.2 Cancellation of Predecessor equity warrants 20.1 Acceleration of the vesting of Predecessor equity awards upon the Effective Date 2.8 Cancellation of Predecessor treasury stock, at cost (586.4) Change in Predecessor paid-in-capital $ (442.3) (14) Represents paid in capital associated with the issuance of Successor common stock to holders of First Lien Claims and Second Lien Notes Claims ($654.3) and the DIP Facility premiums ($384.3), pursuant to the Plans. (15) Net change in accumulated deficit includes the following: Gain on Settlement of Liabilities Subject to Compromise $ 1,570.5 Net deferred tax impacts on the effectiveness of the Plans 96.7 Elimination of unvested Predecessor stock compensation awards (liability classified) 0.8 Accrual of professional fees (6.3) Elimination of prepaid directors and officers insurance policies related to the Predecessor (3.5) Acceleration of the vesting of Predecessor equity awards upon the Effective Date (2.6) Elimination of accumulated other comprehensive income related to interest rate swaps 8.8 Accrual of German transfer tax (5.0) Net change in accumulated deficit $ 1,659.4 (16) Represents the elimination of accumulated other comprehensive income related to interest rate swaps. Fresh Start Accounting Adjustments Amounts presented for "Predecessor Historical Value" represents the carrying value of the asset/liability prior to the implementation of the Plans. (17) Reflects adjustments to inventory at its estimated fair value due to the adoptions of Fresh Start Accounting. Successor Fair Value Predecessor Historical Value Raw materials and work in process, net $ 226.4 $ 232.7 Finished goods, net 347.3 308.2 Total product inventories 573.7 540.9 Service parts 171.9 171.9 Total inventories $ 745.6 $ 712.8 (18) Changes in property, plant and equipment reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of property, plant, and equipment: Successor Fair Value Predecessor Historical Value Land and land improvements $ 21.5 $ 10.4 Buildings and building improvements 42.3 70.5 Leasehold improvements 6.1 17.4 Computer equipment 16.1 105.1 Computer software 5.9 128.7 Furniture and fixtures 17.3 55.9 Tooling 11.1 137.5 Machinery, tools and equipment 32.4 83.4 Construction in progress 13.8 12.2 Total property, plant and equipment, at cost 166.5 621.1 Less accumulated depreciation and amortization — (500.8) Total property, plant, and equipment, net $ 166.5 $ 120.3 (19) Adjustments to deferred income taxes for changes in financial reporting basis of assets and liabilities as a result of the adoption of fresh start accounting. (20) Reflects adjustment to goodwill for the excess of the reorganization value of assets over the fair value of identifiable tangible and intangible assets. (21) Changes in customer relationships reflects the fair value adjustment due to the adoption of Fresh Start Accounting. (22) Changes in other intangible assets reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of other intangible assets: Successor Fair Value Predecessor Historical Value Capitalized software development 13.8 260.4 Development costs non-software 32.2 50.4 Tradenames and trademarks 118.6 — Technology know-how 160.8 — Other intangibles 39.7 51.8 Other intangible assets, at cost 365.1 362.6 Less accumulated amortization — (317.5) Total intangibles, net $ 365.1 $ 45.1 (23) Changes in other assets reflects fair value adjustments from implementation of Fresh Start Accounting. The following table summarizes the components of other assets: Successor Fair Value Predecessor Historical Value Cloud projects, at cost 19.9 25.6 Less accumulated depreciation and amortization — (5.3) Cloud projects, net 19.9 20.3 Right-of-use operating lease assets 102.2 89.6 Right-of-use finance lease assets 8.7 7.9 Joint ventures 30.3 33.7 Pensions, post-retirement and other benefits 71.3 71.4 Other assets 33.9 33.9 Total other assets $ 266.3 $ 256.8 (24) Reflects changes in the fair value of current liabilities held for sale due to the adoption of Fresh Start Accounting. (25) Reflects changes in the fair value of operating lease liabilities ($0.8 increase) and finance lease liability ($0.7 increase) due to the adoption of Fresh Start Accounting. (26) Reflects changes in the finance lease liabilities ($0.8 increase) due to the adoption of Fresh Start Accounting. (27) Reflects the remeasurement adjustment to pensions, post-retirement benefits, and other benefits driven by changes in actuarial assumptions. (28) Reflects changes in the fair value of operating lease liabilities ($6.2 increase) and other liabilities ($2.2 decrease) due to the adoption of Fresh Start Accounting. (29) Reflects the cumulative impact of Fresh Start Accounting adjustments discussed above and below and the elimination of Predecessor capital in excess of par value and Predecessor accumulated deficit. Customer relationships, net 378.2 Other intangible assets 320.0 Other assets fair value adjustments 9.5 Property, plant and equipment 46.2 Inventories 32.8 Current Liabilities (2.2) Long-term debt (0.8) Pensions, post-retirement and other benefits 0.3 Other long-term liabilities (4.0) Goodwill (93.3) Fresh start valuation gain $ 686.7 Deferred income taxes (189.9) Fresh start valuation adjustment for noncontrolling interest (12.6) Elimination of Predecessor paid-in-capital 390.0 Elimination of Predecessor other comprehensive loss (328.8) Net Change in Accumulated Deficit $ 545.4 (30) Reflects the fair value adjustment to noncontrolling interests in certain consolidated subsidiaries. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Balances | Outstanding debt balances were as follows: Successor Predecessor September 30, 2023 December 31, 2022 Notes payable – current Lines of credit $ 3.0 $ 0.9 2023 Term Loan B Facility - USD — 12.9 2023 Term Loan B Facility - Euro — 5.1 2025 New Term Loan B Facility - USD — 5.3 2025 New Term Loan B Facility - EUR — 1.1 Other 2.1 1.7 $ 5.1 $ 27.0 Short-term deferred financing fees — (3.0) $ 5.1 $ 24.0 Long-term debt 2024 Senior Notes — 72.1 2025 Senior Secured Notes - USD — 2.7 2025 Senior Secured Notes - EUR — 4.7 2026 Asset Backed Loan (ABL) — 182.0 2025 New Term Loan B Facility - USD — 529.5 2025 New Term Loan B Facility - EUR — 95.5 2026 2L Notes — 333.6 2025 New Senior Secured Notes - USD — 718.1 2025 New Senior Secured Notes - EUR — 379.7 2025 Superpriority Term Loans — 400.6 Exit Facility 1,250.0 — Other 4.3 6.3 $ 1,254.3 $ 2,724.8 Long-term deferred financing fees (1.2) (139.0) $ 1,253.1 $ 2,585.8 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Changes in shareholders' equity attributable to Diebold, Incorporated and the noncontrolling interests | The following tables present changes in shareholders' equity attributable to Diebold Nixdorf, Incorporated and the noncontrolling interests: Accumulated Other Comprehensive Loss Total Diebold Nixdorf, Incorporated Shareholders' Equity Common Shares Additional Accumulated Deficit Treasury Equity Warrants Non-controlling Total Balance, December 31, 2022 (Predecessor) $ 119.8 $ 831.5 $ (1,406.7) $ (585.6) $ (360.0) $ 20.1 $ (1,380.9) $ 9.8 $ (1,371.1) Net loss — — (111.1) — — — (111.1) (0.4) (111.5) Other comprehensive loss — — — — 6.3 — 6.3 2.2 8.5 Share-based compensation issued 1.0 (1.0) — — — — — — — Share-based compensation expense — 1.3 — — — — 1.3 — 1.3 Treasury shares — — — (0.8) — — (0.8) — (0.8) Balance, March 31, 2023 (Predecessor) $ 120.8 $ 831.8 $ (1,517.8) $ (586.4) $ (353.7) $ 20.1 $ (1,485.2) $ 11.6 $ (1,473.6) Net loss — — (677.1) — — — (677.1) (0.2) (677.3) Other comprehensive loss — — — — 26.2 — 26.2 (6.6) 19.6 Share-based compensation issued 0.4 (0.5) — — — — (0.1) — (0.1) Share-based compensation expense — 0.8 — — — — 0.8 — 0.8 Balance, June 30, 2023 (Predecessor) $ 121.2 $ 832.1 $ (2,194.9) $ (586.4) $ (327.5) $ 20.1 $ (2,135.4) $ 4.8 $ (2,130.6) Net income — — 2,146.5 — — — 2,146.5 (0.2) 2,146.3 Other comprehensive loss — — — — 7.5 — 7.5 (3.3) 4.2 Share-based compensation expense — 0.3 — — — — 0.3 — 0.3 Acceleration of Predecessor equity awards — 2.8 — — — — 2.8 — 2.8 Elimination of Predecessor common shares, additional capital, retained earnings, treasury shares and warrants (121.2) (835.2) 48.4 586.4 — (20.1) (341.7) — (341.7) Elimination of accumulated other comprehensive income (loss) — — — — 320.0 — 320.0 — 320.0 Change in value of non-controlling interests — — — — — — — 12.6 12.6 Issuance of Successor common shares 0.4 1,038.6 — — — — 1,039.0 — 1,039.0 Balance, August 12, 2023 (Successor) $ 0.4 $ 1,038.6 $ — $ — $ — $ — $ 1,039.0 $ 13.9 $ 1,052.9 Net loss — — (26.5) — — (26.5) 0.7 (25.8) Other comprehensive loss — — — — (35.8) — (35.8) 0.2 (35.6) Balance, September 30, 2023 (Successor) $ 0.4 $ 1,038.6 $ (26.5) $ — $ (35.8) $ — $ 976.7 $ 14.8 $ 991.5 Accumulated Other Comprehensive Loss Total Diebold Nixdorf, Incorporated Shareholders' Equity Common Shares Additional Accumulated Deficit Treasury Equity Warrants Non-controlling Total Balance, December 31, 2021 (Predecessor) $ 118.3 $ 819.6 $ (822.4) $ (582.1) $ (378.5) $ — $ (845.1) $ 8.1 $ (837.0) Net loss — — (183.1) — — — (183.1) (0.8) (183.9) Other comprehensive loss — — — — 13.1 — 13.1 0.8 13.9 Share-based compensation issued 1.2 (1.2) — — — — — — — Share-based compensation expense — 1.7 — — — — 1.7 — 1.7 Treasury shares — — — (3.3) — — (3.3) — (3.3) Balance, March 31, 2022 (Predecessor) $ 119.5 $ 820.1 $ (1,005.5) $ (585.4) $ (365.4) $ — $ (1,016.7) $ 8.1 $ (1,008.6) Net loss — — (199.2) — — — (199.2) 0.1 (199.1) Other comprehensive loss — — — — (46.8) — (46.8) 2.3 (44.5) Share-based compensation issued 0.1 (0.3) — — — — (0.2) — (0.2) Share-based compensation expense — 5.2 — — — — 5.2 — 5.2 Treasury shares — — — — — — — — — Balance, June 30, 2022 (Predecessor) $ 119.6 $ 825.0 $ (1,204.7) $ (585.4) $ (412.2) $ — $ (1,257.7) $ 10.5 $ (1,247.2) Net loss — — (49.8) — — — (49.8) (0.7) $ (50.5) Other comprehensive loss — — — — (24.6) — (24.6) 1.9 $ (22.7) Share-based compensation issued 0.1 — — — — — 0.1 — $ 0.1 Share-based compensation expense — 2.7 — — — — 2.7 — $ 2.7 Treasury shares — — — (0.1) — — (0.1) — $ (0.1) Balance, September 30, 2022 (Predecessor) $ 119.7 $ 827.7 $ (1,254.5) $ (585.5) $ (436.8) $ — $ (1,329.4) $ 11.7 $ (1,317.7) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the Company’s accumulated other comprehensive income (loss) (AOCI), net of tax, by component for 2023: Translation Foreign Currency Hedges Interest Rate Hedges Pension and Other Post-retirement Benefits Other Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2023 (Predecessor) $ (352.1) $ (1.9) $ 5.3 $ (12.6) $ 1.3 $ (360.0) Other comprehensive income (loss) before reclassifications (1) 4.7 — 0.3 — — 5.0 Amounts reclassified from AOCI — — — 1.3 — 1.3 Net current-period other comprehensive income (loss) 4.7 — 0.3 1.3 — 6.3 Balance at March 31, 2023 (Predecessor) $ (347.4) $ (1.9) $ 5.6 $ (11.3) $ 1.3 $ (353.7) Other comprehensive income (loss) before reclassifications (2) 25.2 — 0.2 — — 25.4 Amounts reclassified from AOCI — — — 0.8 — 0.8 Net current-period other comprehensive income (loss) 25.2 — 0.2 0.8 — 26.2 Balance at June 30, 2023 (Predecessor) $ (322.2) $ (1.9) $ 5.8 $ (10.5) $ 1.3 $ (327.5) Other comprehensive income (loss) before reclassifications (3) (1.2) 4.7 2.9 — — 6.4 Amounts reclassified from AOCI — — — 1.1 — 1.1 Fresh Start adjustments 323.4 (2.8) (8.7) 9.4 (1.3) 320.0 Net current-period other comprehensive income (loss) 322.2 1.9 (5.8) 10.5 (1.3) 327.5 Balance at August 12, 2023 (Successor) $ — $ — $ — $ — $ — $ — Other comprehensive income (loss) before reclassifications (4) (35.8) — — — — (35.8) Amounts reclassified from AOCI — — — — — — Net current-period other comprehensive income (loss) (35.8) — — — — (35.8) Balance at September 30, 2023 (Successor) $ (35.8) $ — $ — $ — $ — $ (35.8) (1) Other comprehensive income (loss) before reclassifications within the translation component excludes $(2.2) of translation attributable to noncontrolling interests. (2) Other comprehensive income (loss) before reclassifications within the translation component excludes $6.6 of translation attributable to noncontrolling interests. (3) Other comprehensive income (loss) before reclassifications within the translation component excludes $3.3 of translation attributable to noncontrolling interests. (4) Other comprehensive income (loss) before reclassifications within the translation component excludes $(0.2) of translation attributable to noncontrolling interests. The following table summarizes the changes in the Company’s AOCI, net of tax, by component for 2022: Translation Foreign Currency Hedges Interest Rate Hedges Pension and Other Post-retirement Benefits Other Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2022 (Predecessor) $ (310.9) $ (1.9) $ 0.4 $ (64.6) $ (1.5) $ (378.5) Other comprehensive income (loss) before reclassifications (1) 10.4 (1.0) 2.9 — 0.7 13.0 Amounts reclassified from AOCI — — (0.6) 0.7 — 0.1 Net current-period other comprehensive income (loss) 10.4 (1.0) 2.3 0.7 0.7 13.1 Balance at March 31, 2022 (Predecessor) $ (300.5) $ (2.9) $ 2.7 $ (63.9) $ (0.8) $ (365.4) Other comprehensive income (loss) before reclassifications (2) (49.6) 0.9 1.8 — — (46.9) Amounts reclassified from AOCI — — — 0.1 — 0.1 Net current-period other comprehensive income (loss) (49.6) 0.9 1.8 0.1 — (46.8) Balance at June 30, 2022 (Predecessor) $ (350.1) $ (2.0) $ 4.5 $ (63.8) $ (0.8) $ (412.2) Other comprehensive income (loss) before reclassifications (3) (38.1) 0.1 0.5 — — (37.5) Amounts reclassified from AOCI — — — 12.9 — 12.9 Net current-period other comprehensive income (loss) (38.1) 0.1 0.5 12.9 — (24.6) Balance at September 30, 2022 (Predecessor) $ (388.2) $ (1.9) $ 5.0 $ (50.9) $ (0.8) $ (436.8) (1) Other comprehensive income (loss) before reclassifications within the translation component excludes $(0.8) of translation attributable to noncontrolling interests. : (2) Other comprehensive income (loss) before reclassifications within the translation component excludes $(2.3) of translation attributable to noncontrolling interests. : (3) Other comprehensive income (loss) before reclassifications within the translation component excludes $(1.9) of translation attributable to noncontrolling interests. : The following table summarizes the details about the amounts reclassified from AOCI: |
Reclassification out of Accumulated Other Comprehensive Income | Successor Predecessor Affected Line Item on the Statement of Operations Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Pension and post-retirement benefits: Net actuarial gain (loss) amortized (net of tax of $(3.1), and $(0.6) in the Predecessor Periods, respectively) $ — $ 1.1 $ (1.4) Miscellaneous, net Net actuarial losses recognized due to settlement (net of tax of $0.0 and $0.0 in the Predecessor Periods, respectively) — — 14.3 Miscellaneous, net Total reclassifications for the period $ — $ 1.1 $ 12.9 Successor Predecessor Affected Line Item on the Statement of Operations Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Interest rate hedge loss $ — $ — $ (0.6) Interest expense Pension and post-retirement benefits: Net actuarial gain (loss) amortized (net of tax of $(3.8), and $(1.0) in the Predecessor Periods, respectively) — 3.2 (0.6) Miscellaneous, net Net actuarial losses recognized due to settlement (net of tax of $0.0 and $0.0 in the Predecessor Periods, respectively) — — 14.3 Miscellaneous, net Total reclassifications for the period $ — $ 3.2 $ 13.1 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following tables set forth the net periodic benefit cost for the Company’s U.S. defined benefit pension plans: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ 2.7 $ 2.2 $ 4.5 Expected return on plan assets (2.1) (2.0) (4.3) Recognized net actuarial loss — — 0.2 Settlement loss recognized — — 14.3 Net periodic pension benefit cost $ 0.6 $ 0.2 $ 14.7 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ 2.7 $ 11.9 $ 13.0 Expected return on plan assets (2.1) (11.0) (15.9) Recognized net actuarial loss — 0.4 3.3 Settlement loss recognized — — 14.3 Net periodic pension benefit cost $ 0.6 $ 1.3 $ 14.7 The following tables set forth the net periodic benefit cost for the Company’s Non-U.S. defined benefit pension plans: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Service cost $ 1.0 $ 0.8 $ 2.4 Interest cost 1.6 1.5 1.1 Expected return on plan assets (2.0) (1.7) (3.8) Recognized net actuarial gain — (0.5) (0.4) Amortization of prior service cost — (0.1) (0.1) Settlement gain recognized — (2.1) — Net periodic pension benefit cost $ 0.6 $ (2.1) $ (0.8) Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Service cost $ 1.0 $ 3.9 $ 7.1 Interest cost 1.6 7.2 3.3 Expected return on plan assets (2.0) (8.4) (11.6) Recognized net actuarial gain — (2.3) (1.3) Amortization of prior service cost — (0.5) (0.3) Settlement gain recognized — (2.1) — Net periodic pension benefit cost $ 0.6 $ (2.2) $ (2.8) The following tables set forth the net periodic benefit cost for the Company’s other benefit plans during the period: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ — $ 0.1 $ 0.1 Recognized net actuarial gain — (0.1) (0.1) Net periodic pension benefit cost $ — $ — $ — Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Components of net periodic benefit cost Interest cost $ — $ 0.2 $ 0.2 Recognized net actuarial gain — (0.3) (0.3) Net periodic pension benefit cost $ — $ (0.1) $ (0.1) The following table represents the weighted-average assumptions used to determine net periodic benefit cost: Successor Predecessor September 30, 2023 December 31, 2022 U.S. Plans Non-U.S. Plans Other Benefits U.S. Plans Non-U.S. Plans Other Benefits Discount rate 3.16% 2.38% 6.83% 2.99% 2.39% 4.22% Expected long-term return on plan assets 5.25% 3.75% N/A 5.25% 3.30% N/A Rate of compensation increase N/A 3.88% N/A N/A 3.89% N/A |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Summary of Lease | The following table summarizes the weighted-average remaining lease terms and discount rates related to the Company's lease population: Successor September 30, 2023 Weighted-average remaining lease terms (in years) Operating leases 4.9 Finance leases 2.7 Weighted-average discount rate Operating leases 8.5% Finance leases 6.6% Refer to Note 3 for further detail relating to Fresh Start Accounting adjustments related to leases. The following table summarizes the balance sheet information related to leases: Successor Predecessor September 30, 2023 December 31, 2022 Assets Operating $ 98.0 $ 108.5 Finance 7.7 10.3 Total leased assets $ 105.7 $ 118.8 Current liabilities Operating $ 40.1 $ 39.0 Finance 3.9 4.1 Noncurrent liabilities Operating 65.5 76.7 Finance 4.2 5.7 Total lease liabilities $ 113.7 $ 125.5 |
Lease, Cost | The following tables summarize the components of lease expense: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Lease expense Operating lease expense $ 8.2 $ 7.5 $ 18.7 Finance lease expense Amortization of ROU lease assets $ 0.6 $ 0.8 $ 1.1 Interest on lease liabilities $ 0.1 $ 0.2 $ 0.2 Variable lease expense $ 1.0 $ 0.9 $ 1.7 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Lease expense Operating lease expense $ 8.2 $ 41.9 $ 57.7 Finance lease expense Amortization of ROU lease assets $ 0.6 $ 2.4 $ 3.0 Interest on lease liabilities $ 0.1 $ 0.5 $ 0.5 Variable lease expense $ 1.0 $ 5.2 $ 7.5 The following table summarizes the cash flow information related to leases: Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating - operating cash flows $ 11.8 $ 43.3 $ 57.7 Finance - financing cash flows $ 0.5 $ 2.5 $ 3.1 Finance - operating cash flows $ 0.1 $ 0.5 $ 0.5 ROU lease assets obtained in the exchange for lease liabilities: Operating leases $ 0.8 $ 19.2 $ 24.7 Finance leases $ — $ 0.6 $ 6.6 |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the maturities of lease liabilities: Operating Finance 2023 (excluding the nine months ended September 30, 2023) $ 15.1 $ 1.2 2024 40.1 3.8 2025 26.4 1.8 2026 15.7 1.1 2027 9.3 0.6 Thereafter 20.2 0.2 Total 126.8 8.7 Less: Present value discount (21.1) (0.7) Lease liability $ 105.7 $ 8.0 |
Finance Lease, Liability, to be Paid, Maturity | The following table summarizes the maturities of lease liabilities: Operating Finance 2023 (excluding the nine months ended September 30, 2023) $ 15.1 $ 1.2 2024 40.1 3.8 2025 26.4 1.8 2026 15.7 1.1 2027 9.3 0.6 Thereafter 20.2 0.2 Total 126.8 8.7 Less: Present value discount (21.1) (0.7) Lease liability $ 105.7 $ 8.0 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Recorded at Fair Market Value | Assets and liabilities subject to fair value measurement by fair value level are recorded as follows: Successor Predecessor September 30, 2023 December 31, 2022 Fair Value Measurements Using Fair Value Measurements Using Classification on condensed consolidated Balance Sheets Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets Certificates of deposit Short-term investments $ 16.6 $ 16.6 $ — $ 24.6 $ 24.6 $ — Assets held in rabbi trusts Securities and other investments 2.8 2.8 — 4.4 4.4 — Total $ 19.4 $ 19.4 $ — $ 29.0 $ 29.0 $ — Liabilities Deferred compensation Other liabilities 2.8 2.8 — 4.4 4.4 — Total $ 2.8 $ 2.8 $ — $ 4.4 $ 4.4 $ — |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of Cash, cash equivalents and Short-term and Long-term restricted cash reporting within the Company's Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Cash Flows: Successor Predecessor September 30, 2023 December 31, 2022 Cash and cash equivalents $ 376.1 $ 307.4 Professional fee escrow 22.9 — Bank collateral guarantees 32.4 2.6 Pension collateral guarantees 8.9 9.1 Restricted cash and cash equivalents 64.2 11.7 Total cash, cash equivalents, and restricted cash $ 440.3 $ 319.1 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table represents the percentage of revenue recognized either at a point in time or over time: Successor Predecessor Period from Period from Nine months ended Timing of revenue recognition 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Products transferred at a point in time 48 % 39 % 37 % Products and services transferred over time 52 % 61 % 63 % Net sales 100 % 100 % 100 % |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about receivables and deferred revenue, which represent contract liabilities from contracts with customers: Contract balance information Trade receivables Contract liabilities Balance at December 31, 2022 (Predecessor) $ 612.2 $ 453.2 Balance at September 30, 2023 (Successor) $ 703.8 $ 351.5 |
Finance Lease Receivables (Tabl
Finance Lease Receivables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule Of Components For Finance Lease Receivables [Table Text Block] | The following table presents the components of finance lease receivables: Successor Predecessor September 30, 2023 December 31, 2022 Gross minimum lease receivables $ 25.0 $ 28.1 Allowance for credit losses (0.1) (0.2) Estimated unguaranteed residual values — 0.1 24.9 28.0 Less: Unearned interest income (0.9) (1.5) Total $ 24.0 $ 26.5 |
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | Future minimum payments due from customers under finance lease receivables as of September 30, 2023 are as follows: 2023 $ 2.3 2024 7.2 2025 4.7 2026 4.2 2027 3.2 Thereafter 3.4 $ 25.0 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables present information regarding the Company’s segment performance and provide a reconciliation between segment operating profit and the consolidated Profit (loss) before taxes: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Net sales summary by segment Banking $ 409.0 $ 253.2 $ 580.3 Retail 181.1 97.2 225.0 Held for sale non-core European retail business (7) 1.7 1.2 5.1 Total revenue $ 591.8 $ 351.6 $ 810.4 Segment operating profit Banking (8) $ 59.3 $ 29.3 $ 83.1 Retail 31.3 15.1 31.1 Total segment operating profit $ 90.6 $ 44.4 $ 114.2 Corporate charges not allocated to segments (1) $ (47.0) $ (26.3) $ (54.2) Impairment of assets (2) (1.1) (0.6) (4.1) Amortization of Wincor Nixdorf purchase accounting intangible assets (3) — (6.1) (16.6) Restructuring and transformation expenses (4) (5.1) (4.8) (20.7) Refinancing related costs (5) 0.3 (0.1) (13.4) Net non-routine expense (6) 0.2 (4.7) 5.3 Held for sale non-core European retail business (7) (1.0) (1.3) (5.0) (53.7) (43.9) (108.7) Operating profit 36.9 0.5 5.5 Other (expense) income (77.0) 2,239.7 (51.5) (Loss) profit before taxes $ (40.1) $ 2,240.2 $ (46.0) Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Net sales summary by segment Banking $ 409.0 $ 1,511.0 $ 1,733.3 Retail 181.1 610.0 742.4 Held for sale non-core European retail business (7) 1.7 10.9 16.2 Total revenue $ 591.8 $ 2,131.9 $ 2,491.9 Segment operating profit Banking (8) $ 59.3 $ 211.6 $ 209.4 Retail 31.3 86.2 90.0 Total segment operating profit $ 90.6 $ 297.8 $ 299.4 Corporate charges not allocated to segments (1) (47.0) (159.8) (188.0) Impairment of assets (2) (1.1) (3.3) (64.7) Amortization of Wincor Nixdorf purchase accounting intangible assets (3) — (41.8) (52.8) Restructuring and transformation expenses (4) (5.1) (38.4) (98.9) Refinancing related costs (5) 0.3 (44.7) (13.4) Net non-routine expense (6) 0.2 (7.4) (34.3) Held for sale non-core European retail business (7) (1.0) (7.9) (16.7) (53.7) (303.3) (468.8) Operating profit (loss) 36.9 (5.5) (169.4) Other (expense) income (77.0) 1,453.9 (142.1) (Loss) profit before taxes $ (40.1) $ 1,448.4 $ (311.5) (1) Corporate charges not allocated to segments include headquarter-based costs associated primarily with human resources, finance, IT and legal that are not directly attributable to a particular segment and are separately assessed by the CODM for purposes of making decisions, assessing performance and allocating resources. It also includes the impact of $2.8 of revenue reversed due to a legal settlement penalty during the Successor Period. (2) Impairment in the 2023 Successor Period primarily relates to German and Indian facilities. Impairment in the 2023 Predecessor Periods primarily relate to leased European facilities closures. Impairment during the nine months ended September 30, 2022 Predecessor Period was primarily comprised of $38.4 related to impairment of capitalized cloud-based North America ERP, and the Company impaired $16.8 of assets connected with the Company's operations in Russia, Ukraine and Belarus as a result of the Russian incursion into Ukraine and the related economic sanctions. (3) The amortization of purchase accounting intangible assets is not included in the segment results used by the CODM to make decisions, allocate resources or assess performance. (4) Refer to Note 11 for further information regarding restructurings. Consistent with the historical reportable segment structure, restructuring and transformation costs are not assigned to the segments, and are separately analyzed by the CODM. (5) Refinancing related costs are fees earned by our advisors that have been accounted for as period expense. (6) Net non-routine expense consists of items that the Company has determined are non-routine in nature and not allocated to the reportable operating segments as they are not included in the measure used by the CODM to make decisions, allocate resources and assess performance. (7) Held for sale non-core European retail business represents the revenue and operating profit of a business that had been classified as held for sale in the Predecessor Period and sold during the Successor Period (see Note 15). It was removed in 2022 from the retail segment's information used by the CODM to make decisions, assess performance and allocate resources, and now is individually analyzed. This change and timing thereof aligns with the build-out of a data center that makes the entity capable of operating autonomously and is consistent with material provided in connection with our refinancing effort which are exclusive of this entity. (8) Excludes $2.8 of revenue reversed due to a legal settlement penalty during the Successor period. |
Schedule Of Revenue From External Customers By Product And Service Solution | The following table presents information regarding the Company’s segment net sales by service and product solution: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Segments Banking Services $ 228.4 $ 173.0 $ 379.9 Products 180.6 80.2 200.4 Total Banking 409.0 253.2 580.3 Retail Services 76.0 66.7 130.4 Products 105.1 30.5 94.6 Total Retail 181.1 97.2 225.0 Held for sale non-core European retail business Services 1.1 0.9 4.0 Products 0.6 0.3 1.1 Total revenue $ 591.8 $ 351.6 $ 810.4 Successor Predecessor Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Segments Banking Services $ 228.4 $ 954.3 $ 1,152.9 Products 180.6 556.7 580.4 Total Banking 409.0 1,511.0 1,733.3 Retail Services 76.0 335.2 405.6 Products 105.1 274.8 336.8 Total Retail 181.1 610.0 742.4 Held for sale non-core European retail business Services 1.1 5.5 7.4 Products 0.6 5.4 8.8 Total revenue $ 591.8 $ 2,131.9 $ 2,491.9 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following is a summary of property, plant, and equipment: Successor Predecessor Estimated Useful Life September 30, 2023 December 31, 2022 Land and land improvements (1) $ 20.8 $ 10.0 Buildings and building improvements 15-30 40.9 68.3 Machinery, tools and equipment 5-12 34.3 81.8 Leasehold improvements (2) 10 6.5 17.2 Computer equipment 3 17.7 101.1 Computer software 5-10 6.1 127.8 Furniture and fixtures 5-8 17.4 54.6 Tooling 3-5 10.9 134.7 Construction in progress 13.0 4.6 Total property plant and equipment, at cost $ 167.6 $ 600.1 Less accumulated depreciation and amortization (8.6) (479.4) Total property, plant, and equipment, net $ 159.0 $ 120.7 (1) Estimated useful life for land and land improvements is perpetual and 15 years, respectively. (2) The estimated useful life for leasehold improvements is the lesser of 10 years or the term of the lease. Depreciation expense is computed on a straight-line basis over the estimated useful lives of the related assets. Depreciation expense was as follows: Successor Predecessor Period from Period from Three months ended 08/12/2023 through 09/30/2023 07/01/2023 through 08/11/2023 September 30, 2022 Depreciation expense $ 5.4 $ 5.8 $ 6.7 Period from Period from Nine months ended 08/12/2023 through 09/30/2023 01/01/2023 through 08/11/2023 September 30, 2022 Depreciation expense $ 5.4 $ 18.3 $ 23.0 |
Chapter 11 Cases and Dutch Sc_3
Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as a Going Concern and Other Related Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||
Aug. 11, 2023 | Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | Aug. 12, 2023 | Aug. 10, 2023 | |
Reorganization, Chapter 11 [Line Items] | ||||||||
DIP Facility | $ 0 | |||||||
Gain on settlement of liabilities subject to compromise (non-cash) | $ 1,570.5 | $ 0 | $ (1,570.5) | |||||
Fresh start valuation adjustments (non-cash) | 686.7 | 0 | (686.7) | |||||
Professional fees (cash) | (35.2) | (8) | (38.7) | |||||
Unamortized debt issuance costs (non-cash) | 0 | 0 | 124.6 | |||||
DIP premium (non-cash) | (32.6) | 0 | (384.4) | |||||
Debt make-whole premium (cash) | 0 | 0 | 91 | |||||
Lease rejection damage claim (cash) | (3.8) | 0 | (3.8) | |||||
Other (non-cash) | (0.5) | 0 | 0.6 | |||||
Total Reorganization items, net | 2,250.3 | $ (8) | $ 0 | 1,614.1 | $ 0 | |||
Contractual interest in excess of recorded interest | $ 50.6 | $ 67.5 | ||||||
Management Incentive Plan | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Percent of shares reserved | 6% | 6% | 6% | |||||
Holders of First Lien Claims | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Pro rata share | 98% | 98% | 98% | |||||
DIP Facility | $ 1,250 | $ 1,250 | $ 1,250 | $ 1,250 | ||||
Holders of Second Lien Notes Claims | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Pro rata share | 2% | 2% | 2% | |||||
Holders of 2024 Stub Unsecured Notes Claims | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
DIP Facility | $ 3.5 | |||||||
Debtor-in-Possession Facility, Exit Credit Agreement | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
DIP Facility | $ 1,250 | $ 1,250 | $ 1,250 | |||||
New credit agreement | $ 1,250 | $ 1,250 | $ 1,250 | |||||
Debtor-in-Possession Facility, Exit Credit Agreement | Secured Overnight Financing Rate (SOFR) | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Variable rate | 7.50% | 7.50% | 7.50% | |||||
Debtor-in-Possession Facility, Exit Credit Agreement | Base Rate [Member] | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Variable rate | 6.50% | 6.50% | 6.50% | |||||
Debtor-in-Possession Facility, Exit Credit Agreement | Minimum | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Prepayment fee percentage | 1% | |||||||
Debtor-in-Possession Facility, Exit Credit Agreement | Maximum | ||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||
Prepayment fee percentage | 5% |
Fresh Start Accounting - Fair V
Fresh Start Accounting - Fair Value of Successor Common Shares (Details) - USD ($) | Sep. 30, 2023 | Aug. 12, 2023 | Aug. 11, 2023 | Dec. 31, 2022 |
Reorganizations [Abstract] | ||||
Enterprise value | $ 2,150,000,000 | |||
Plus: Excess cash available for operations | 206,100,000 | |||
Less: Fair value of Exit Facility | $ (1,260,600,000) | (1,250,000,000) | ||
Less: Net pension, post-retirement and other benefits liability | (39,300,000) | |||
Less: Other debt | (13,900,000) | |||
Noncontrolling interests | $ (14,800,000) | $ (13,900,000) | (13,900,000) | $ (9,800,000) |
Fair Value of Successor Equity | $ 1,039,000,000 |
Fresh Start Accounting - Narrat
Fresh Start Accounting - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 reportingUnit | Aug. 11, 2023 USD ($) | |
Reorganization, Chapter 11 [Line Items] | ||
Enterprise value | $ 2,150 | |
Internal Rate of Return (IRR) | 18.90% | |
Number of Reporting Units | reportingUnit | 2 | |
Global Banking | ||
Reorganization, Chapter 11 [Line Items] | ||
Reporting Unit, Measurement Input | 0.190 | |
Global Retail [Member] | ||
Reorganization, Chapter 11 [Line Items] | ||
Reporting Unit, Measurement Input | 0.190 | |
Minimum | ||
Reorganization, Chapter 11 [Line Items] | ||
Enterprise value | $ 2,150 | |
Maximum | ||
Reorganization, Chapter 11 [Line Items] | ||
Enterprise value | $ 2,450 |
Fresh Start Accounting - Succes
Fresh Start Accounting - Successor Assets To Be Allocated (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 12, 2023 | Aug. 11, 2023 | Dec. 31, 2022 |
Reorganizations [Abstract] | ||||
Enterprise value | $ 2,150 | |||
Plus: Excess cash available for operations | 206.1 | |||
Less: Net pension, post-retirement and other benefits liability | (39.3) | |||
Noncontrolling interests | $ 14.8 | $ 13.9 | 13.9 | $ 9.8 |
Plus: Fair value of non-debt current liabilities | 1,398.3 | |||
Plus: Fair value of non-debt, non-current liabilities | 225 | |||
Deferred income taxes | 166.2 | 238.5 | 238.5 | 96.6 |
Total assets | $ 4,019.6 | $ 4,178.6 | $ 4,178.6 | $ 3,065 |
Fresh Start Accounting - Balanc
Fresh Start Accounting - Balance Sheet (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 7 Months Ended | 9 Months Ended | ||||||||
Aug. 12, 2023 | Aug. 11, 2023 | Aug. 11, 2023 | Sep. 30, 2023 | Aug. 11, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets | ||||||||||||
Cash and cash equivalents | $ 391.4 | $ 391.4 | $ 391.4 | $ 376.1 | $ 391.4 | $ 128.4 | $ 307.4 | |||||
Restricted cash | 60.8 | 60.8 | 60.8 | 64.2 | 60.8 | 0 | 11.7 | |||||
Short-term investments | 13.9 | 16.6 | 24.6 | |||||||||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | 623.9 | 703.8 | 612.2 | |||||||||
Inventories | 745.6 | 666.2 | 588.1 | |||||||||
Prepaid expenses | 45.6 | 46.9 | 50.5 | |||||||||
Current assets held for sale | 9.9 | 0 | 7.9 | |||||||||
Other current assets | 247.8 | 207 | 168.5 | |||||||||
Total current assets | 2,138.9 | 2,080.8 | 1,770.9 | |||||||||
Securities and other investments | 7 | 5.8 | 7.6 | |||||||||
Total property, plant, and equipment, net | 166.5 | 159 | 120.7 | |||||||||
Deferred income taxes | 59.5 | 36.6 | 0 | |||||||||
Goodwill | 621 | 596.7 | 702.3 | |||||||||
Intangible assets, net | 884.1 | 257.6 | ||||||||||
Other assets | 266.3 | 256.6 | 205.9 | |||||||||
Total assets | 4,178.6 | 4,178.6 | 4,178.6 | 4,019.6 | 4,178.6 | 3,065 | ||||||
Current liabilities | ||||||||||||
Notes payable | 4.9 | 5.1 | 24 | |||||||||
Accounts payable | 461 | 528.9 | 611.6 | |||||||||
Deferred revenue | 421 | 351.5 | 453.2 | |||||||||
Payroll and other benefits liabilities | 159.1 | 137 | 107.9 | |||||||||
Current liabilities held for sale | 10.9 | 0 | 6.8 | |||||||||
DIP facility premium | 0 | |||||||||||
Other current liabilities | 350.3 | 391.2 | 401.4 | |||||||||
Total current liabilities | 1,407.2 | 1,413.7 | 1,604.9 | |||||||||
Long-term debt | 1,253.7 | 1,253.1 | 2,585.8 | |||||||||
Pensions, post-retirement and other benefits | 102 | 98.2 | 40.6 | |||||||||
Deferred income taxes | 238.5 | 238.5 | 238.5 | 166.2 | 238.5 | 96.6 | ||||||
Other liabilities | 124.3 | 96.9 | 108.2 | |||||||||
Liabilities subject to compromise | 0 | |||||||||||
Liabilities, Total | 3,125.7 | 3,028.1 | 4,436.1 | |||||||||
Diebold Nixdorf, Incorporated shareholders' equity | ||||||||||||
Common stock | 0.4 | 0.4 | ||||||||||
Additional capital | 1,038.6 | 1,038.6 | 831.5 | |||||||||
Accumulated deficit | 0 | (26.5) | (1,406.7) | |||||||||
Treasury shares, at cost | 0 | 0 | (585.6) | |||||||||
Accumulated other comprehensive loss | 0 | 0 | 0 | (35.8) | 0 | (436.8) | $ (327.5) | $ (353.7) | (360) | $ (412.2) | $ (365.4) | $ (378.5) |
Equity warrants | 0 | 0 | 20.1 | 20.1 | 20.1 | 0 | 0 | |||||
Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) | 1,039 | 976.7 | (1,380.9) | |||||||||
Noncontrolling interests | 13.9 | 13.9 | 13.9 | 14.8 | 13.9 | 9.8 | ||||||
Total equity | 1,052.9 | 1,052.9 | 1,052.9 | 991.5 | 1,052.9 | (1,317.7) | (2,130.6) | (1,473.6) | (1,371.1) | $ (1,247.2) | (1,008.6) | (837) |
Total liabilities and equity (deficit) | 4,178.6 | 4,019.6 | 3,065 | |||||||||
Changes in Cash and Cash Equivalents | ||||||||||||
Net change in cash and cash equivalents | (12.6) | 131 | $ (262.6) | |||||||||
Liabilities Subject to Compromise | ||||||||||||
Lease liability | (105.7) | |||||||||||
Liabilities subject to compromise | 0 | |||||||||||
Gain on settlement of liabilities subject to compromise (non-cash) | (1,570.5) | 0 | 1,570.5 | |||||||||
Change in Predecessor paid-in-Capital | ||||||||||||
Common Stock, Value, Issued | 0.4 | 0.4 | ||||||||||
Equity warrants | 0 | 0 | $ 20.1 | $ 20.1 | 20.1 | $ 0 | $ 0 | |||||
Treasury Stock, Value | 0 | 0 | 585.6 | |||||||||
Inventory, Net [Abstract] | ||||||||||||
Inventory, Work in Process and Raw Materials | 226.4 | |||||||||||
Finished goods | 347.3 | 303.6 | 229.4 | |||||||||
Service parts | 171.9 | 169.8 | 158.1 | |||||||||
Inventories | 745.6 | 666.2 | 588.1 | |||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 166.5 | 167.6 | 600.1 | |||||||||
Less accumulated depreciation and amortization | 0 | |||||||||||
Total property, plant, and equipment, net | 166.5 | 159 | 120.7 | |||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 365.1 | |||||||||||
Less accumulated amortization | 0 | (13.9) | (747.3) | |||||||||
Total intangibles, net | 365.1 | |||||||||||
Other Assets [Abstract] | ||||||||||||
Cloud projects, at cost | 19.9 | |||||||||||
Less accumulated depreciation and amortization | 0 | |||||||||||
Cloud projects, net | 19.9 | |||||||||||
Right-of-use operating lease assets | 102.2 | 98 | ||||||||||
Finance | 8.7 | 7.7 | ||||||||||
Joint ventures | 30.3 | |||||||||||
Pensions, post-retirement and other benefits | 71.3 | |||||||||||
Other assets | 33.9 | |||||||||||
Total other assets | 266.3 | 256.6 | 205.9 | |||||||||
Other intangible assets, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 365.1 | 351.5 | 44 | |||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Less accumulated amortization | (9.5) | (298.6) | ||||||||||
Customer relationships, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 554.3 | 532.6 | 213.6 | |||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Less accumulated amortization | (4.4) | (448.7) | ||||||||||
Capitalized software development | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 13.8 | |||||||||||
Development costs non-software | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 32.2 | |||||||||||
Trade name/trademark | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 114.9 | 0 | ||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 118.6 | |||||||||||
Less accumulated amortization | (0.9) | 0 | ||||||||||
Development costs non-software | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 184.1 | 0 | ||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 160.8 | |||||||||||
Less accumulated amortization | (4.4) | (48.7) | ||||||||||
Other intangibles | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 36.5 | 1.5 | ||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 39.7 | |||||||||||
Less accumulated amortization | (3.4) | (47.2) | ||||||||||
Product | ||||||||||||
Current assets | ||||||||||||
Inventories | 573.7 | |||||||||||
Inventory, Net [Abstract] | ||||||||||||
Inventories | 573.7 | |||||||||||
Land and land improvements | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 21.5 | 20.8 | 10 | |||||||||
Buildings and building improvements | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 42.3 | |||||||||||
Leasehold improvements | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 6.1 | 6.5 | 17.2 | |||||||||
Computer equipment | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 16.1 | 17.7 | 101.1 | |||||||||
Furniture and fixtures | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 17.3 | 17.4 | 54.6 | |||||||||
Computer software | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 5.9 | |||||||||||
Tooling | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 11.1 | 10.9 | 134.7 | |||||||||
Machinery, tools and equipment | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 32.4 | |||||||||||
Construction in progress | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | $ 13.8 | $ 13 | 4.6 | |||||||||
Predecessor | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 404.9 | 404.9 | 404.9 | 307.4 | ||||||||
Restricted cash | 60.8 | 60.8 | 60.8 | |||||||||
Short-term investments | 13.9 | 13.9 | 13.9 | |||||||||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | 623.9 | 623.9 | 623.9 | |||||||||
Inventories | 712.8 | 712.8 | 712.8 | |||||||||
Prepaid expenses | 49.1 | 49.1 | 49.1 | |||||||||
Current assets held for sale | 9.9 | 9.9 | 9.9 | |||||||||
Other current assets | 247.8 | 247.8 | 247.8 | |||||||||
Total current assets | 2,123.1 | 2,123.1 | 2,123.1 | |||||||||
Securities and other investments | 7 | 7 | 7 | |||||||||
Total property, plant, and equipment, net | 120.3 | 120.3 | 120.3 | |||||||||
Deferred income taxes | 0 | 0 | 0 | |||||||||
Goodwill | 714.3 | 714.3 | 714.3 | |||||||||
Other assets | 256.8 | 256.8 | 256.8 | |||||||||
Total assets | 3,442.7 | 3,442.7 | 3,442.7 | |||||||||
Current liabilities | ||||||||||||
Notes payable | 1,254.9 | 1,254.9 | 1,254.9 | |||||||||
Accounts payable | 461 | 461 | 461 | |||||||||
Deferred revenue | 421 | 421 | 421 | |||||||||
Payroll and other benefits liabilities | 159.2 | 159.2 | 159.2 | |||||||||
Current liabilities held for sale | 10.2 | 10.2 | 10.2 | |||||||||
DIP facility premium | 384.4 | 384.4 | 384.4 | |||||||||
Other current liabilities | 343.3 | 343.3 | 343.3 | |||||||||
Total current liabilities | 3,034 | 3,034 | 3,034 | |||||||||
Long-term debt | 4.2 | 4.2 | 4.2 | |||||||||
Pensions, post-retirement and other benefits | 102.3 | 102.3 | 102.3 | |||||||||
Deferred income taxes | 85.8 | 85.8 | 85.8 | |||||||||
Other liabilities | 120.3 | 120.3 | 120.3 | |||||||||
Liabilities subject to compromise | 2,232.4 | 2,232.4 | 2,232.4 | |||||||||
Liabilities, Total | 5,579 | 5,579 | 5,579 | |||||||||
Diebold Nixdorf, Incorporated shareholders' equity | ||||||||||||
Common stock | 121.2 | 121.2 | 121.2 | 119.8 | ||||||||
Additional capital | 832.3 | 832.3 | 832.3 | |||||||||
Accumulated deficit | (2,204.8) | (2,204.8) | (2,204.8) | |||||||||
Treasury shares, at cost | (586.4) | (586.4) | (586.4) | |||||||||
Accumulated other comprehensive loss | (320) | (320) | (320) | |||||||||
Equity warrants | 20.1 | 20.1 | 20.1 | |||||||||
Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) | (2,137.6) | (2,137.6) | (2,137.6) | |||||||||
Noncontrolling interests | 1.3 | 1.3 | 1.3 | |||||||||
Total equity | (2,136.3) | (2,136.3) | (2,136.3) | |||||||||
Total liabilities and equity (deficit) | 3,442.7 | 3,442.7 | 3,442.7 | |||||||||
Liabilities Subject to Compromise | ||||||||||||
Liabilities subject to compromise | 2,232.4 | 2,232.4 | 2,232.4 | |||||||||
Change in Predecessor paid-in-Capital | ||||||||||||
Common Stock, Value, Issued | 121.2 | 121.2 | 121.2 | 119.8 | ||||||||
Equity warrants | 20.1 | 20.1 | 20.1 | |||||||||
Treasury Stock, Value | 586.4 | 586.4 | 586.4 | |||||||||
Inventory, Net [Abstract] | ||||||||||||
Inventory, Work in Process and Raw Materials | 232.7 | 232.7 | 232.7 | |||||||||
Finished goods | 308.2 | 308.2 | 308.2 | |||||||||
Service parts | 171.9 | 171.9 | 171.9 | |||||||||
Inventories | 712.8 | 712.8 | 712.8 | |||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 621.1 | 621.1 | 621.1 | |||||||||
Less accumulated depreciation and amortization | (500.8) | |||||||||||
Total property, plant, and equipment, net | 120.3 | 120.3 | 120.3 | |||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 362.6 | 362.6 | 362.6 | |||||||||
Less accumulated amortization | (317.5) | (317.5) | (317.5) | |||||||||
Total intangibles, net | 45.1 | 45.1 | 45.1 | |||||||||
Other Assets [Abstract] | ||||||||||||
Cloud projects, at cost | 25.6 | 25.6 | 25.6 | |||||||||
Less accumulated depreciation and amortization | (5.3) | (5.3) | (5.3) | |||||||||
Cloud projects, net | 20.3 | 20.3 | 20.3 | |||||||||
Right-of-use operating lease assets | 89.6 | 89.6 | 89.6 | 108.5 | ||||||||
Finance | 7.9 | 7.9 | 7.9 | $ 10.3 | ||||||||
Joint ventures | 33.7 | 33.7 | 33.7 | |||||||||
Pensions, post-retirement and other benefits | 71.4 | 71.4 | 71.4 | |||||||||
Other assets | 33.9 | 33.9 | 33.9 | |||||||||
Total other assets | 256.8 | 256.8 | 256.8 | |||||||||
Predecessor | Other intangible assets, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 45.1 | 45.1 | 45.1 | |||||||||
Predecessor | Customer relationships, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 176.1 | 176.1 | 176.1 | |||||||||
Predecessor | Capitalized software development | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 260.4 | 260.4 | 260.4 | |||||||||
Predecessor | Development costs non-software | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 50.4 | 50.4 | 50.4 | |||||||||
Predecessor | Trade name/trademark | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 0 | 0 | 0 | |||||||||
Predecessor | Development costs non-software | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 0 | 0 | 0 | |||||||||
Predecessor | Other intangibles | ||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Other intangible assets, at cost | 51.8 | 51.8 | 51.8 | |||||||||
Predecessor | Product | ||||||||||||
Current assets | ||||||||||||
Inventories | 540.9 | 540.9 | 540.9 | |||||||||
Inventory, Net [Abstract] | ||||||||||||
Inventories | 540.9 | 540.9 | 540.9 | |||||||||
Predecessor | Land and land improvements | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 10.4 | 10.4 | 10.4 | |||||||||
Predecessor | Buildings and building improvements | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 70.5 | 70.5 | 70.5 | |||||||||
Predecessor | Leasehold improvements | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 17.4 | 17.4 | 17.4 | |||||||||
Predecessor | Computer equipment | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 105.1 | 105.1 | 105.1 | |||||||||
Predecessor | Furniture and fixtures | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 55.9 | 55.9 | 55.9 | |||||||||
Predecessor | Computer software | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 128.7 | 128.7 | 128.7 | |||||||||
Predecessor | Tooling | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 137.5 | 137.5 | 137.5 | |||||||||
Predecessor | Machinery, tools and equipment | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 83.4 | 83.4 | 83.4 | |||||||||
Predecessor | Construction in progress | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant and equipment, at cost | 12.2 | 12.2 | 12.2 | |||||||||
Reorganization Adjustments | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | (13.5) | (13.5) | (13.5) | |||||||||
Restricted cash | 0 | 0 | 0 | |||||||||
Short-term investments | 0 | 0 | 0 | |||||||||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | 0 | 0 | 0 | |||||||||
Inventories | 0 | 0 | 0 | |||||||||
Prepaid expenses | (3.5) | (3.5) | (3.5) | |||||||||
Current assets held for sale | 0 | 0 | 0 | |||||||||
Other current assets | 0 | 0 | 0 | |||||||||
Total current assets | (17) | (17) | (17) | |||||||||
Securities and other investments | 0 | 0 | 0 | |||||||||
Total property, plant, and equipment, net | 0 | 0 | 0 | |||||||||
Deferred income taxes | 70.3 | 70.3 | 70.3 | |||||||||
Goodwill | 0 | 0 | 0 | |||||||||
Total assets | 53.3 | 53.3 | 53.3 | |||||||||
Current liabilities | ||||||||||||
Notes payable | (1,250) | (1,250) | (1,250) | |||||||||
Accounts payable | 0 | 0 | 0 | |||||||||
Deferred revenue | 0 | 0 | 0 | |||||||||
Payroll and other benefits liabilities | (0.1) | (0.1) | (0.1) | |||||||||
Current liabilities held for sale | 0 | 0 | 0 | |||||||||
DIP facility premium | (384.4) | (384.4) | (384.4) | |||||||||
Other current liabilities | 5.5 | 5.5 | 5.5 | |||||||||
Total current liabilities | (1,629) | (1,629) | (1,629) | |||||||||
Long-term debt | 1,248.7 | 1,248.7 | 1,248.7 | |||||||||
Pensions, post-retirement and other benefits | 0 | 0 | 0 | |||||||||
Deferred income taxes | (26.4) | (26.4) | (26.4) | |||||||||
Other liabilities | 0 | 0 | 0 | |||||||||
Liabilities subject to compromise | (2,232.4) | (2,232.4) | (2,232.4) | |||||||||
Liabilities, Total | (2,639.1) | (2,639.1) | (2,639.1) | |||||||||
Diebold Nixdorf, Incorporated shareholders' equity | ||||||||||||
Common stock | (121.2) | (121.2) | (121.2) | |||||||||
Additional capital | (442.3) | (442.3) | (442.3) | |||||||||
Accumulated deficit | 1,659.4 | 1,659.4 | 1,659.4 | |||||||||
Treasury Stock, Common, Value | (586.4) | (586.4) | (586.4) | |||||||||
Treasury shares, at cost | 586.4 | 586.4 | 586.4 | |||||||||
Additional Paid in Capital | (442.3) | (442.3) | (442.3) | |||||||||
Accumulated other comprehensive loss | (8.8) | (8.8) | (8.8) | |||||||||
Equity warrants | (20.1) | (20.1) | (20.1) | |||||||||
Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) | 2,692.4 | 2,692.4 | 2,692.4 | |||||||||
Noncontrolling interests | 0 | 0 | 0 | |||||||||
Total equity | 2,692.4 | 2,692.4 | 2,692.4 | |||||||||
Total liabilities and equity (deficit) | 53.3 | 53.3 | 53.3 | |||||||||
Changes in Cash and Cash Equivalents | ||||||||||||
Payment of interest on the DIP Facility | (1.8) | |||||||||||
Payment to holders of the 2024 Stub Unsecured Notes Claims | (3.5) | |||||||||||
Payment of lease rejection damages | (3.8) | |||||||||||
Professional Fees | (4.4) | |||||||||||
Net change in cash and cash equivalents | (13.5) | |||||||||||
Changes in Other Current Liabilities | ||||||||||||
Accrual of professional fees | 6.3 | 6.3 | 6.3 | |||||||||
Accrual of German transfer tax | 5 | 5 | 5 | |||||||||
Accrual of deferred financing fees | 1.3 | 1.3 | 1.3 | |||||||||
Cancellation of unvested Predecessor stock compensation awards | (0.9) | |||||||||||
Payment of interest on the DIP Facility | (1.8) | |||||||||||
Professional Fees | (4.4) | |||||||||||
Net change in other current liabilities | 5.5 | 5.5 | 5.5 | |||||||||
Liabilities Subject to Compromise | ||||||||||||
Debt subject to compromise | 2,160.5 | 2,160.5 | 2,160.5 | |||||||||
Accrued interest on debt subject to compromise | 68.1 | 68.1 | 68.1 | |||||||||
Lease liability | 3.8 | 3.8 | 3.8 | |||||||||
Liabilities subject to compromise | (2,232.4) | (2,232.4) | (2,232.4) | |||||||||
Less: Distribution of common stock to holders of First Lien Claims and Second Lien Notes Claims | (654.6) | |||||||||||
Payment to holders of the 2024 Stub Unsecured Notes Claims | 3.5 | |||||||||||
Payment of lease rejection damages | 3.8 | |||||||||||
Gain on settlement of liabilities subject to compromise (non-cash) | 1,570.5 | |||||||||||
Change in Predecessor paid-in-Capital | ||||||||||||
Common Stock, Value, Issued | (121.2) | (121.2) | (121.2) | |||||||||
Equity warrants | (20.1) | (20.1) | (20.1) | |||||||||
Accelerated Vesting Of Equity | 2.8 | 2.8 | 2.8 | |||||||||
Treasury Stock, Value | (586.4) | (586.4) | (586.4) | |||||||||
Additional Paid in Capital | (442.3) | (442.3) | (442.3) | |||||||||
Inventory, Net [Abstract] | ||||||||||||
Inventories | 0 | 0 | 0 | |||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant, and equipment, net | 0 | 0 | 0 | |||||||||
Reorganization Adjustments | Other intangible assets, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 0 | 0 | 0 | |||||||||
Other assets | 0 | 0 | 0 | |||||||||
Other Assets [Abstract] | ||||||||||||
Total other assets | 0 | 0 | 0 | |||||||||
Reorganization Adjustments | Customer relationships, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 0 | 0 | 0 | |||||||||
Fresh Start Accounting Adjustments | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||||
Restricted cash | 0 | 0 | 0 | |||||||||
Short-term investments | 0 | 0 | 0 | |||||||||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | 0 | 0 | 0 | |||||||||
Inventories | 32.8 | 32.8 | 32.8 | |||||||||
Prepaid expenses | 0 | 0 | 0 | |||||||||
Current assets held for sale | 0 | 0 | 0 | |||||||||
Other current assets | 0 | 0 | 0 | |||||||||
Total current assets | 32.8 | 32.8 | 32.8 | |||||||||
Securities and other investments | 0 | 0 | 0 | |||||||||
Total property, plant, and equipment, net | 46.2 | 46.2 | 46.2 | |||||||||
Deferred income taxes | (10.8) | (10.8) | (10.8) | |||||||||
Goodwill | (93.3) | (93.3) | (93.3) | |||||||||
Other assets | 9.5 | 9.5 | 9.5 | |||||||||
Total assets | 682.6 | 682.6 | 682.6 | |||||||||
Current liabilities | ||||||||||||
Notes payable | 0 | 0 | 0 | |||||||||
Accounts payable | 0 | 0 | 0 | |||||||||
Deferred revenue | 0 | 0 | 0 | |||||||||
Payroll and other benefits liabilities | 0 | 0 | 0 | |||||||||
Current liabilities held for sale | 0.7 | 0.7 | 0.7 | |||||||||
DIP facility premium | 0 | 0 | 0 | |||||||||
Other current liabilities | 1.5 | 1.5 | 1.5 | |||||||||
Total current liabilities | 2.2 | 2.2 | 2.2 | |||||||||
Long-term debt | 0.8 | 0.8 | 0.8 | |||||||||
Pensions, post-retirement and other benefits | (0.3) | (0.3) | (0.3) | |||||||||
Deferred income taxes | 179.1 | 179.1 | 179.1 | |||||||||
Other liabilities | 4 | 4 | 4 | |||||||||
Liabilities subject to compromise | 0 | 0 | 0 | |||||||||
Liabilities, Total | 185.8 | 185.8 | 185.8 | |||||||||
Diebold Nixdorf, Incorporated shareholders' equity | ||||||||||||
Additional capital | (390) | (390) | (390) | |||||||||
Accumulated deficit | 545.4 | 545.4 | 545.4 | |||||||||
Treasury shares, at cost | 0 | 0 | 0 | |||||||||
Accumulated other comprehensive loss | 328.8 | 328.8 | 328.8 | |||||||||
Equity warrants | 0 | 0 | 0 | |||||||||
Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) | 484.2 | 484.2 | 484.2 | |||||||||
Noncontrolling interests | 12.6 | 12.6 | 12.6 | |||||||||
Total equity | 496.8 | 496.8 | 496.8 | |||||||||
Total liabilities and equity (deficit) | 682.6 | 682.6 | 682.6 | |||||||||
Liabilities Subject to Compromise | ||||||||||||
Liabilities subject to compromise | 0 | 0 | 0 | |||||||||
Change in Predecessor paid-in-Capital | ||||||||||||
Equity warrants | 0 | 0 | 0 | |||||||||
Treasury Stock, Value | 0 | 0 | 0 | |||||||||
Inventory, Net [Abstract] | ||||||||||||
Inventories | 32.8 | 32.8 | 32.8 | |||||||||
Property, Plant and Equipment | ||||||||||||
Total property, plant, and equipment, net | 46.2 | 46.2 | 46.2 | |||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||
Total intangibles, net | 378.2 | 378.2 | 378.2 | |||||||||
Other Assets [Abstract] | ||||||||||||
Total other assets | 9.5 | 9.5 | 9.5 | |||||||||
Fresh Start Accounting Adjustments | Other intangible assets, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | 320 | 320 | 320 | |||||||||
Fresh Start Accounting Adjustments | Customer relationships, net | ||||||||||||
Current assets | ||||||||||||
Intangible assets, net | $ 378.2 | $ 378.2 | $ 378.2 |
Fresh Start Accounting - Change
Fresh Start Accounting - Changes In Balance Sheet (Details) - USD ($) $ in Millions | Aug. 11, 2023 | Sep. 30, 2023 | Aug. 12, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | $ (26.5) | $ 0 | $ (1,406.7) | |
Reorganization Adjustments | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Gain on Settlement of Liabilities Subject to Compromise | $ 1,570.5 | |||
Net Change in Accumulated Deficit | 1,659.4 | |||
Net deferred tax impacts on the effectiveness of the Plans | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | 96.7 | |||
Elimination of unvested Predecessor stock compensation awards (liability classified) | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | 0.8 | |||
Accrual of professional fees | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | (6.3) | |||
Elimination of prepaid directors and officers insurance policies related to the Predecessor | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | (3.5) | |||
Acceleration of the vesting of Predecessor equity awards upon the Effective Date | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | (2.6) | |||
Elimination of accumulated other comprehensive income related to interest rate swaps | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | 8.8 | |||
Accrual of German transfer tax | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Net Change in Accumulated Deficit | $ (5) |
Fresh Start Accounting - Additi
Fresh Start Accounting - Additional (Details) - USD ($) | Aug. 11, 2023 | Sep. 30, 2023 | Aug. 12, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Reorganization, Chapter 11 [Line Items] | ||||||||||
Customer relationships, net | $ 365,100,000 | |||||||||
Total property, plant, and equipment, net | $ 159,000,000 | 166,500,000 | $ 120,700,000 | |||||||
Inventories | 666,200,000 | 745,600,000 | 588,100,000 | |||||||
Total current liabilities | (1,413,700,000) | (1,407,200,000) | (1,604,900,000) | |||||||
Long-term debt | (1,260,100,000) | |||||||||
Pensions, post-retirement and other benefits | (98,200,000) | (102,000,000) | (40,600,000) | |||||||
Other long-term liabilities | (96,900,000) | (124,300,000) | (108,200,000) | |||||||
Goodwill | 596,700,000 | 621,000,000 | 702,300,000 | |||||||
Noncontrolling interests | $ (13,900,000) | (14,800,000) | (13,900,000) | (9,800,000) | ||||||
Elimination of Predecessor paid-in-capital | (1,038,600,000) | (1,038,600,000) | (831,500,000) | |||||||
Elimination of Predecessor other comprehensive loss | 0 | 35,800,000 | 0 | $ 327,500,000 | $ 353,700,000 | 360,000,000 | $ 436,800,000 | $ 412,200,000 | $ 365,400,000 | $ 378,500,000 |
Net Change in Accumulated Deficit | $ (26,500,000) | $ 0 | $ (1,406,700,000) | |||||||
Fresh Start Accounting Adjustments | ||||||||||
Reorganization, Chapter 11 [Line Items] | ||||||||||
Customer relationships, net | 378,200,000 | |||||||||
Other intangible assets | 320,000,000 | |||||||||
Other Assets Fair Value Adjustments | 9,500,000 | |||||||||
Total property, plant, and equipment, net | 46,200,000 | |||||||||
Inventories | 32,800,000 | |||||||||
Total current liabilities | (2,200,000) | |||||||||
Long-term debt | (800,000) | |||||||||
Pensions, post-retirement and other benefits | 300,000 | |||||||||
Other long-term liabilities | (4,000,000) | |||||||||
Goodwill | (93,300,000) | |||||||||
Fresh start valuation gain | 686,700,000 | |||||||||
Deferred income taxes | (189,900,000) | |||||||||
Noncontrolling interests | (12,600,000) | |||||||||
Elimination of Predecessor paid-in-capital | 390,000,000 | |||||||||
Elimination of Predecessor other comprehensive loss | (328,800,000) | |||||||||
Net Change in Accumulated Deficit | $ 545,400,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Aug. 11, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Income (loss) used in basic and diluted loss per share | |||||||||
Net income (loss) | $ 2,146.3 | $ (25.8) | $ (677.3) | $ (111.5) | $ (50.5) | $ (199.1) | $ (183.9) | $ 1,357.5 | $ (433.5) |
Net income (loss) attributable to noncontrolling interests | (0.2) | 0.7 | (0.7) | (0.8) | (1.4) | ||||
Net (loss) income attributable to Diebold Nixdorf, Incorporated | $ 2,146.5 | $ (26.5) | $ (49.8) | $ 1,358.3 | $ (432.1) | ||||
Denominator | |||||||||
Weighted-average number of shares of common stock used in basic earnings (loss) per share (in shares) | 80 | 37.6 | 79.1 | 79.7 | 78.9 | ||||
Effect of dilutive shares (in shares) | 1.4 | 0 | 0 | 1.7 | 0 | ||||
Weighted-average number of shares used in diluted earnings (loss) per share (in shares) | 81.4 | 37.6 | 79.1 | 81.4 | 78.9 | ||||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | |||||||||
Basic earnings (loss) per share (in dollars per share) | $ 26.83 | $ (0.70) | $ (0.63) | $ 17.04 | $ (5.48) | ||||
Diluted earnings (loss) per share (in dollars per share) | $ 26.37 | $ (0.70) | $ (0.63) | $ 16.69 | $ (5.48) | ||||
Anti-dilutive shares | |||||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares | 1.9 | 0 | 4.1 | 2.1 | 4.2 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit) | $ 94.1 | $ (13.2) | $ 3.9 | $ 90.4 | $ 119 |
Income Taxes (Details)
Income Taxes (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate Reconciliation, Percent | 4.20% | 32.90% | (8.50%) | 6.20% | (38.20%) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 12, 2023 | Dec. 31, 2022 |
Major classes of inventories | |||
Finished goods | $ 303.6 | $ 347.3 | $ 229.4 |
Service parts | 169.8 | 171.9 | 158.1 |
Raw materials and work in process | 192.8 | 200.6 | |
Total inventories | 666.2 | $ 745.6 | 588.1 |
Product | |||
Major classes of inventories | |||
Total inventories | $ 496.4 | $ 430 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Assets held in rabbi trusts [Member] | |||
Short-term investments: | |||
Fair value of assets held under trust | $ 2.8 | $ 4.4 | |
Long-term investments: | |||
Assets held in a rabbi trust | 2.4 | 4.3 | |
Long-term investments, unrealized gain | 0.4 | $ 0.1 | |
Certificates of deposit | |||
Long-term investments: | |||
Long-term investments, unrealized gain | 0 | $ 0 | |
Certificates of Deposit, at Carrying Value | 16.6 | 24.6 | |
Short-term investments | Certificates of deposit | Fair Value, Measurements, Recurring [Member] | |||
Short-term investments: | |||
Fair value of assets held under trust | 16.6 | 24.6 | |
Short-term investments | Certificates of deposit | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Short-term investments: | |||
Fair value of assets held under trust | $ 16.6 | $ 24.6 |
Investments (Textuals) (Details
Investments (Textuals) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 12, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | |||
Life Insurance, Corporate or Bank Owned, Amount | $ 3 | $ 3.2 | |
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | 703.8 | $ 623.9 | 612.2 |
Accounts payable | $ 528.9 | $ 461 | 611.6 |
Inspur (Suzhou) Financial Technology Service Co Ltd | Related Party | |||
Related Party Transaction [Line Items] | |||
Strategic alliance, ownership percentage | 48.10% | ||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | $ 13 | ||
Accounts payable | 18.9 | ||
Aisino-Wincor Retail And Banking Systems (Shanghai) Co.,Ltd | Related Party | |||
Related Party Transaction [Line Items] | |||
Strategic alliance, ownership percentage | 49% | ||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | $ 32.6 | ||
Accounts payable | $ 25.7 |
Goodwill and Other Assets (Deta
Goodwill and Other Assets (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Aug. 11, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | |||||
Goodwill | $ 1,185.2 | $ 1,173.2 | |||
Accumulated impairment losses | (470.9) | (470.9) | |||
Fresh Start Adjustment | (93.3) | ||||
Beginning balance | $ 702.3 | ||||
Divestitures | $ (4.2) | ||||
Goodwill, Foreign Currency Translation Gain (Loss) | (20.1) | 12 | |||
Ending balance | 596.7 | $ 596.7 | 596.7 | ||
Global Retail [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | 273.1 | 269.6 | |||
Accumulated impairment losses | (57.2) | (57.2) | |||
Fresh Start Adjustment | (66.3) | ||||
Beginning balance | 212.4 | ||||
Divestitures | (4.2) | ||||
Goodwill, Foreign Currency Translation Gain (Loss) | (6.1) | 3.5 | |||
Ending balance | 139.3 | $ 139.3 | 139.3 | ||
Segment Reporting, Additional Information about Entity's Reportable Segments | 34 percent | ||||
Global Banking | |||||
Goodwill [Line Items] | |||||
Goodwill | 912.1 | 903.6 | |||
Accumulated impairment losses | (413.7) | $ (413.7) | |||
Fresh Start Adjustment | $ (27) | ||||
Beginning balance | 489.9 | ||||
Divestitures | 0 | ||||
Goodwill, Foreign Currency Translation Gain (Loss) | (14) | 8.5 | |||
Ending balance | $ 457.4 | $ 457.4 | $ 457.4 | ||
Segment Reporting, Additional Information about Entity's Reportable Segments | 43 percent |
Goodwill and Other Assets Sched
Goodwill and Other Assets Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 2 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 12, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying amount | $ 898 | $ 898 | $ 1,004.9 | ||||
Less accumulated amortization | (13.9) | (13.9) | $ 0 | (747.3) | |||
Intangible assets, net | 884.1 | $ 884.1 | 257.6 | ||||
Payments to Develop Software | 3.7 | $ 13.1 | $ 24 | ||||
Fresh Start Accounting adjustment | (23.3) | ||||||
Amortization of internally-developed software | (0.8) | (12.4) | (19.7) | ||||
Customer relationships, net | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-average remaining useful lives | 16 years 4 months 24 days | ||||||
Gross carrying amount | 537 | $ 537 | 662.3 | ||||
Less accumulated amortization | (4.4) | (4.4) | (448.7) | ||||
Intangible assets, net | 532.6 | $ 532.6 | 554.3 | 213.6 | |||
Trade name/trademark | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-average remaining useful lives | 17 years 4 months 24 days | ||||||
Gross carrying amount | 115.8 | $ 115.8 | 0 | ||||
Less accumulated amortization | (0.9) | (0.9) | 0 | ||||
Intangible assets, net | 114.9 | $ 114.9 | 0 | ||||
Capitalized software development | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-average remaining useful lives | 2 years 10 months 24 days | ||||||
Gross carrying amount | 16.8 | $ 16.8 | 245.2 | ||||
Less accumulated amortization | (0.8) | (0.8) | (202.7) | ||||
Intangible assets, net | 16 | $ 16 | 38.5 | 42.5 | $ 43.2 | ||
Capitalized Computer Software, Period Increase (Decrease) | (0.7) | $ (6.1) | $ (9) | ||||
Transfer To Held For Sale | 13.8 | ||||||
Development costs non-software | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-average remaining useful lives | 5 years 9 months 18 days | ||||||
Gross carrying amount | 188.5 | $ 188.5 | 48.7 | ||||
Less accumulated amortization | (4.4) | (4.4) | (48.7) | ||||
Intangible assets, net | 184.1 | $ 184.1 | 0 | ||||
Other intangibles | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Weighted-average remaining useful lives | 1 year 6 months | ||||||
Gross carrying amount | 39.9 | $ 39.9 | 48.7 | ||||
Less accumulated amortization | (3.4) | (3.4) | (47.2) | ||||
Intangible assets, net | 36.5 | 36.5 | 1.5 | ||||
Other intangible assets, net | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying amount | 361 | 361 | 342.6 | ||||
Less accumulated amortization | (9.5) | (9.5) | (298.6) | ||||
Intangible assets, net | $ 351.5 | $ 351.5 | $ 365.1 | $ 44 |
Goodwill and Other Assets (Text
Goodwill and Other Assets (Textuals) (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | Aug. 12, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||||||||
Amortization | $ 11 | $ 15.6 | $ 23.2 | $ 59 | $ 72.1 | |||
Goodwill | 596.7 | $ 596.7 | $ 621 | $ 702.3 | ||||
Global Retail [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 139.3 | $ 139.3 | 149.6 | 212.4 | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments | 34 percent | |||||||
Global Banking | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | $ 457.4 | $ 457.4 | $ 471.4 | $ 489.9 | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments | 43 percent |
Goodwill and Other Assets - Amo
Goodwill and Other Assets - Amortization (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Amortization | $ 11 | $ 15.6 | $ 23.2 | $ 59 | $ 72.1 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges By Statement of Income Account (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Schedule of restructuring and related costs | |||||
Restructuring Charges | $ (5.3) | $ (6.2) | $ (20.7) | $ (38.9) | $ (98.9) |
Cost of sales – services | |||||
Schedule of restructuring and related costs | |||||
Restructuring Charges | (1.1) | 2.5 | (3) | (5.3) | (7.4) |
Cost of Sales Products | |||||
Schedule of restructuring and related costs | |||||
Restructuring Charges | (0.2) | 1.8 | (1.3) | (0.8) | (10) |
Selling and administrative expense | |||||
Schedule of restructuring and related costs | |||||
Restructuring Charges | (3) | (9.9) | (13.9) | (29.4) | (71.7) |
Research, development and engineering expense | |||||
Schedule of restructuring and related costs | |||||
Restructuring Charges | (0.4) | (0.1) | (2.5) | (1.5) | (9.8) |
Sale of Subsidiary Gain (Loss) | |||||
Schedule of restructuring and related costs | |||||
Restructuring Charges | $ (0.6) | $ (0.5) | $ 0 | $ (1.9) | $ 0 |
Restructuring - Restructuring_2
Restructuring - Restructuring Charges By Segment (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 5.3 | $ 6.2 | $ 20.7 | $ 38.9 | $ 98.9 |
Restructuring Reserve Activity
Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Jun. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring Reserve, Beginning Balance | $ 14.4 | $ 44.2 | $ 35.3 | |
Payout/Settlement | (5.4) | (37) | (35.6) | |
Restructuring Reserve, Translation and Other Adjustment | (0.3) | 0.4 | (0.3) | |
Restructuring Reserve, Ending Balance | 12 | 14.4 | 54.3 | |
Severance Costs | 3.3 | $ 6.8 | $ 54.9 | |
Restructuring Reserve, Accrual Adjustment | $ 4.3 | $ 54.9 |
Restructuring (Textuals) (Detai
Restructuring (Textuals) (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Aug. 11, 2023 | Aug. 11, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Other Restructuring Costs | $ 150 | ||||||||
Restructuring Reserve, Accrual Adjustment | $ 4.3 | $ 54.9 | |||||||
DIP premium (non-cash) | $ (32.6) | 0 | $ (384.4) | ||||||
Severance accrual | 5.3 | 6.2 | $ 20.7 | 38.9 | $ 98.9 | ||||
Severance Costs | 3.3 | 6.8 | 54.9 | ||||||
Severance accrual | 5.3 | 6.2 | 20.7 | 38.9 | 98.9 | ||||
Segment Reconciling Items [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Severance accrual | $ 5.3 | 4.8 | 5.1 | $ 6.2 | 20.7 | 38.4 | 98.9 | ||
Severance accrual | $ 5.3 | $ 4.8 | $ 5.1 | $ 6.2 | $ 20.7 | $ 38.4 | $ 98.9 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 12, 2023 | Dec. 31, 2022 |
Notes payable – current | |||
Notes and Loans Payable, Current | $ 5.1 | $ 27 | |
Other Long-term Debt, Current | 2.1 | 1.7 | |
Debt Issuance Costs, Current, Net | 0 | 3 | |
Notes Payable, Current | 5.1 | $ 4.9 | 24 |
Long-term debt | |||
Other Long-term Debt, Noncurrent | 4.3 | 6.3 | |
Long-term debt excluding debt issuance costs | 1,254.3 | 2,724.8 | |
Debt Issuance Costs, Noncurrent, Net | 1.2 | 139 | |
Long-term Debt and Capital Lease Obligations | 1,253.1 | $ 1,253.7 | 2,585.8 |
Senior Notes Due 2024 [Member] | |||
Long-term debt | |||
Term Loan Facility | 0 | 72.1 | |
Senior Notes Due 2025 [Member] | |||
Long-term debt | |||
Term Loan Facility | 0 | 2.7 | |
Senior Notes Due 2025 EURO [Member] | |||
Long-term debt | |||
Term Loan Facility | 0 | 4.7 | |
Asset Backed Loan | |||
Long-term debt | |||
Revolving credit facility | 0 | 182 | |
Extended Term B USD | |||
Long-term debt | |||
Term Loan Facility | 0 | 529.5 | |
Extended Term B EUR | |||
Long-term debt | |||
Term Loan Facility | 0 | 95.5 | |
2L Notes - 2026 | |||
Long-term debt | |||
Term Loan Facility | 0 | 333.6 | |
Exchanged Senior Secured Notes Due 2025 USD | |||
Long-term debt | |||
Term Loan Facility | 0 | 718.1 | |
Exchanged Senior Secured Notes Due 2025 EUR | |||
Long-term debt | |||
Senior Notes, Noncurrent | 0 | 379.7 | |
Superpriority Term Loans Due 2025 | |||
Long-term debt | |||
Term Loan Facility | 0 | 400.6 | |
Exit Facility | |||
Long-term debt | |||
Notes Payable, Noncurrent | 1,250 | 0 | |
International Short-Term Uncommitted Line of Credit [Member] | |||
Notes payable – current | |||
Uncommitted Lines Of Credit | 3 | 0.9 | |
Term Loan B USD [Member] | |||
Notes payable – current | |||
Notes and Loans Payable, Current | 0 | 12.9 | |
Term Loan B EUR [Member] | |||
Notes payable – current | |||
Notes and Loans Payable, Current | 0 | 5.1 | |
Extended Term B USD | |||
Notes payable – current | |||
Term Loan Facility | 0 | 5.3 | |
Extended Term B EUR | |||
Notes payable – current | |||
Term Loan Facility | $ 0 | $ 1.1 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) $ in Millions | 2 Months Ended | 7 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 05, 2023 | Dec. 31, 2022 | |
Debt (Textuals) | ||||||
Revolving credit facility borrowings, net | $ 0 | $ 0 | $ 240 | |||
Superpriority Term Loans Due 2025 | ||||||
Debt (Textuals) | ||||||
Debt Instrument, Periodic Payment | 492.3 | |||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 20 | |||||
Debt Instrument, Fee Amount | $ 71 | |||||
Superpriority Term Loans and Interest | ||||||
Debt (Textuals) | ||||||
Repayments of Other Debt | 401.3 | |||||
ABL and FILO | ||||||
Debt (Textuals) | ||||||
Repayments of Other Debt | 211.2 | |||||
Repayments of Lines of Credit | 29.8 | |||||
Asset Backed Loan | ||||||
Debt (Textuals) | ||||||
Repayments of Lines of Credit | 0 | 188.3 | 0 | |||
Debt Instrument, Periodic Payment | 241 | |||||
International Short-Term Uncommitted Line of Credit [Member] | ||||||
Debt (Textuals) | ||||||
Borrowing limit of short term uncommitted line of credit | $ 25.4 | $ 25.4 | ||||
Weighted average interest rate on outstanding borrowings | 20% | 20% | 11% | |||
Amount available | $ 22.4 | $ 22.4 | ||||
Proceeds from Other Debt | $ 4.9 | $ 4.4 | $ 12.4 | |||
Line of Credit Facility, Expiration Period | 1 year |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||||||
Aug. 11, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | Aug. 12, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 1,052.9 | $ 991.5 | $ (2,130.6) | $ (1,473.6) | $ (1,317.7) | $ (1,247.2) | $ (1,008.6) | $ 1,052.9 | $ (1,317.7) | |||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | 2,146.5 | (26.5) | (49.8) | 1,358.3 | (432.1) | |||||||
Net income (loss) | 2,146.3 | (25.8) | (677.3) | (111.5) | (50.5) | (199.1) | (183.9) | 1,357.5 | (433.5) | |||
Other comprehensive loss | 4.2 | (35.6) | 19.6 | 8.5 | (22.7) | (44.5) | 13.9 | 32.3 | (53.3) | |||
Share-based compensation issued | 0.1 | 0 | 0.1 | 0.2 | 0 | |||||||
Share-based compensation expense | 0.8 | 1.3 | 2.7 | 5.2 | 1.7 | |||||||
Treasury shares | (0.8) | (0.1) | 0 | (3.3) | ||||||||
Reclassification of guaranteed dividend to accrued liabilities | (341.7) | |||||||||||
Balance | (2,130.6) | 1,052.9 | (1,473.6) | (1,371.1) | (1,247.2) | (1,008.6) | (837) | (1,371.1) | (837) | |||
Equity warrants | 0 | 20.1 | 20.1 | 0 | $ 0 | $ 20.1 | $ 0 | |||||
Common Stock, Value, Issued | 0.4 | $ 0.4 | ||||||||||
Common Stock [Member] | ||||||||||||
Balance | 0.4 | 0.4 | 121.2 | 120.8 | 119.7 | 119.6 | 119.5 | 0.4 | 119.7 | |||
Share-based compensation issued | (0.4) | (1) | (0.1) | (0.1) | (1.2) | |||||||
Balance | 121.2 | 0.4 | 120.8 | 119.8 | 119.6 | 119.5 | 118.3 | 119.8 | 118.3 | |||
Additional Paid-in Capital [Member] | ||||||||||||
Balance | 1,038.6 | 1,038.6 | 832.1 | 831.8 | 827.7 | 825 | 820.1 | 1,038.6 | 827.7 | |||
Share-based compensation issued | (0.5) | (1) | 0 | (0.3) | (1.2) | |||||||
Share-based compensation expense | 0.3 | 0.8 | 1.3 | 2.7 | 5.2 | 1.7 | ||||||
Balance | 832.1 | 1,038.6 | 831.8 | 831.5 | 825 | 820.1 | 819.6 | 831.5 | 819.6 | |||
Retained Earnings [Member] | ||||||||||||
Balance | 0 | (26.5) | (2,194.9) | (1,517.8) | (1,254.5) | (1,204.7) | (1,005.5) | 0 | (1,254.5) | |||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | 2,146.5 | (26.5) | (677.1) | (111.1) | (49.8) | (199.2) | (183.1) | 1,358.3 | (432.1) | |||
Balance | (2,194.9) | 0 | (1,517.8) | (1,406.7) | (1,204.7) | (1,005.5) | (822.4) | (1,406.7) | (822.4) | |||
Treasury Stock, Common | ||||||||||||
Balance | 0 | 0 | (586.4) | (586.4) | (585.5) | (585.4) | (585.4) | 0 | (585.5) | |||
Treasury shares | (0.8) | (0.1) | 0 | (3.3) | ||||||||
Balance | (586.4) | 0 | (586.4) | (585.6) | (585.4) | (585.4) | (582.1) | (585.6) | (582.1) | |||
AOCI Attributable to Parent | ||||||||||||
Balance | 0 | (35.8) | (327.5) | (353.7) | (436.8) | (412.2) | (365.4) | 0 | (436.8) | |||
Other comprehensive loss | 7.5 | (35.8) | 26.2 | 6.3 | (24.6) | (46.8) | 13.1 | |||||
Balance | (327.5) | 0 | (353.7) | (360) | (412.2) | (365.4) | (378.5) | (360) | (378.5) | |||
Parent [Member] | ||||||||||||
Balance | 1,039 | 976.7 | (2,135.4) | (1,485.2) | (1,329.4) | (1,257.7) | (1,016.7) | 1,039 | (1,329.4) | |||
Net income (loss) attributable to Diebold Nixdorf, Incorporated | 2,146.5 | (26.5) | (677.1) | (111.1) | (49.8) | (199.2) | (183.1) | |||||
Other comprehensive loss | 7.5 | (35.8) | 26.2 | 6.3 | (24.6) | (46.8) | 13.1 | |||||
Share-based compensation issued | 0.1 | 0.1 | 0.2 | |||||||||
Share-based compensation expense | 0.3 | 0.8 | 1.3 | 2.7 | 5.2 | 1.7 | ||||||
Treasury shares | (0.8) | (0.1) | 0 | (3.3) | ||||||||
Balance | (2,135.4) | 1,039 | (1,485.2) | (1,380.9) | (1,257.7) | (1,016.7) | (845.1) | (1,380.9) | (845.1) | |||
Noncontrolling Interest [Member] | ||||||||||||
Balance | 13.9 | 14.8 | 4.8 | 11.6 | 11.7 | 10.5 | 8.1 | 13.9 | 11.7 | |||
Net income (loss) | (0.2) | 0.7 | (0.2) | (0.4) | (0.7) | 0.1 | (0.8) | |||||
Other comprehensive loss | (3.3) | 0.2 | (6.6) | 2.2 | 1.9 | 2.3 | 0.8 | |||||
Balance | $ 4.8 | $ 13.9 | $ 11.6 | $ 9.8 | $ 10.5 | $ 8.1 | $ 8.1 | $ 9.8 | $ 8.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||||
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Beginning Balance | $ (327.5) | $ 0 | $ (327.5) | $ (353.7) | $ (360) | $ (412.2) | $ (365.4) | $ (378.5) | $ (360) | $ (378.5) |
Other comprehensive income (loss) before reclassifications | 6.4 | (35.8) | 25.4 | 5 | (37.5) | (46.9) | 13 | |||
Amounts reclassified from AOCI | 1.1 | 0 | 0.8 | 1.3 | 12.9 | (0.1) | (0.1) | 3.2 | 13.1 | |
Net current-period other comprehensive income (loss) | 327.5 | (35.8) | 26.2 | 6.3 | (24.6) | (46.8) | 13.1 | |||
Ending Balance | 0 | (35.8) | (35.8) | (327.5) | (353.7) | (436.8) | (412.2) | (365.4) | 0 | (436.8) |
Translation attributable to noncontrolling interests | 3.3 | (0.2) | 6.6 | (2.2) | (1.9) | (2.3) | (0.8) | |||
Translation adjustment | ||||||||||
Beginning Balance | (322.2) | 0 | (322.2) | (347.4) | (352.1) | (350.1) | (300.5) | (310.9) | (352.1) | (310.9) |
Other comprehensive income (loss) before reclassifications | (1.2) | (35.8) | 25.2 | 4.7 | (38.1) | (49.6) | 10.4 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net current-period other comprehensive income (loss) | 322.2 | (35.8) | 25.2 | 4.7 | (38.1) | (49.6) | 10.4 | |||
Ending Balance | 0 | (35.8) | (35.8) | (322.2) | (347.4) | (388.2) | (350.1) | (300.5) | 0 | (388.2) |
Foreign Currency Hedges | ||||||||||
Beginning Balance | (1.9) | 0 | (1.9) | (1.9) | (1.9) | (2) | (2.9) | (1.9) | (1.9) | (1.9) |
Other comprehensive income (loss) before reclassifications | 4.7 | 0 | 0 | 0 | 0.1 | 0.9 | (1) | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net current-period other comprehensive income (loss) | 1.9 | 0 | 0 | 0 | 0.1 | 0.9 | (1) | |||
Ending Balance | 0 | 0 | 0 | (1.9) | (1.9) | (1.9) | (2) | (2.9) | 0 | (1.9) |
Interest Rate Hedges | ||||||||||
Beginning Balance | 5.8 | 0 | 5.8 | 5.6 | 5.3 | 4.5 | 2.7 | 0.4 | 5.3 | 0.4 |
Other comprehensive income (loss) before reclassifications | 2.9 | 0 | 0.2 | 0.3 | 0.5 | 1.8 | 2.9 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | 0 | 0 | 0.6 | |||
Net current-period other comprehensive income (loss) | (5.8) | 0 | 0.2 | 0.3 | 0.5 | 1.8 | 2.3 | |||
Ending Balance | 0 | 0 | 0 | 5.8 | 5.6 | 5 | 4.5 | 2.7 | 0 | 5 |
Pension and Other Post-retirement Benefits | ||||||||||
Beginning Balance | (10.5) | 0 | (10.5) | (11.3) | (12.6) | (63.8) | (63.9) | (64.6) | (12.6) | (64.6) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0.8 | 1.3 | 12.9 | (0.1) | (0.7) | ||||
Net current-period other comprehensive income (loss) | 10.5 | 0 | 0.8 | 1.3 | 12.9 | 0.1 | 0.7 | |||
Ending Balance | 0 | 0 | 0 | (10.5) | (11.3) | (50.9) | (63.8) | (63.9) | 0 | (50.9) |
Other | ||||||||||
Beginning Balance | 1.3 | 0 | 1.3 | 1.3 | 1.3 | (0.8) | (0.8) | (1.5) | 1.3 | (1.5) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | 0.7 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net current-period other comprehensive income (loss) | (1.3) | 0 | 0 | 0 | 0 | 0 | 0.7 | |||
Ending Balance | $ 0 | $ 0 | $ 0 | $ 1.3 | $ 1.3 | $ (0.8) | $ (0.8) | $ (0.8) | $ 0 | $ (0.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) Reclassification Adjustments (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Aug. 11, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Interest Expense | $ 26.4 | $ 42.9 | $ 50.7 | $ 178 | $ 148.4 | ||||
Net pension settlements | 0 | 0 | 14.3 | 0 | 14.3 | ||||
Total reclassifications for the period | 1.1 | 0 | $ 0.8 | $ 1.3 | 12.9 | $ (0.1) | $ (0.1) | 3.2 | 13.1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 1.1 | 0 | $ (1.4) | 3.2 | (0.6) | ||||
Accumulated Net Gain (Loss) from Interest Rate Hedge [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||
Interest Expense | $ 0 | $ 0 | $ 0.6 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||
Aug. 11, 2023 | May 31, 2022 | Sep. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Components of net periodic benefit cost | |||||||
Contributions to qualified and non qualified pension plans | $ 1.6 | $ 23.3 | $ 27.6 | ||||
Benefit Plan, Plan Assets, Reimbursement from CTA | $ 17 | ||||||
Pension Plan [Member] | |||||||
Components of net periodic benefit cost | |||||||
Benefit Plan, Plan Assets, Reimbursement from CTA | $ 22.8 | ||||||
U.S. defined benefit pension plans | Pension Plan [Member] | |||||||
Components of net periodic benefit cost | |||||||
Interest cost | $ (2.2) | (2.7) | $ (4.5) | (11.9) | (13) | ||
Expected return on plan assets | (2) | (2.1) | (4.3) | (11) | (15.9) | ||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 0 | 0 | 0.2 | 0.4 | 3.3 | ||
Net periodic pension benefit cost | 0.2 | 0.6 | 14.7 | 1.3 | 14.7 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 14.3 | 0 | 14.3 | ||
U.S. defined benefit pension plans | Other Postretirement Benefits Plan [Member] | |||||||
Components of net periodic benefit cost | |||||||
Interest cost | 0 | (0.1) | (0.2) | ||||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 0 | 0.1 | 0.3 | ||||
Net periodic pension benefit cost | 0 | 0 | 0 | (0.1) | (0.1) | ||
Foreign Plan [Member] | Pension Plan [Member] | |||||||
Components of net periodic benefit cost | |||||||
Service cost | 0.8 | 1 | 2.4 | 3.9 | 7.1 | ||
Interest cost | (1.5) | (1.6) | (1.1) | (7.2) | (3.3) | ||
Expected return on plan assets | (1.7) | (2) | (3.8) | (8.4) | (11.6) | ||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 0.5 | 0 | 0.4 | 2.3 | 1.3 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (0.1) | 0 | (0.1) | (0.5) | (0.3) | ||
Net periodic pension benefit cost | (2.1) | 0.6 | (0.8) | (2.2) | (2.8) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (2.1) | $ 0 | $ 0 | $ (2.1) | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 numberOfRenewalOptions | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term | 1 year |
Finance lease term | 1 year |
Finance lease, renewal term | 6 months |
Operating lease, renewal term | 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term | 15 years |
Finance lease term | 15 years |
Finance lease, renewal term | 15 years |
Operating lease, renewal term | 15 years |
Leases - Lease Terms (Details)
Leases - Lease Terms (Details) | Sep. 30, 2023 |
Weighted-average remaining lease terms (in years) | |
Operating leases | 4 years 10 months 24 days |
Finance leases | 2 years 8 months 12 days |
Weighted-average discount rate | |
Operating leases | 8.50% |
Finance leases | 6.60% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease expense | $ 8.2 | ||||
Finance lease expense | |||||
Amortization of ROU lease assets | 0.6 | ||||
Interest on lease liabilities | 0.1 | ||||
Variable lease expense | $ 1 | ||||
Predecessor | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease expense | $ 7.5 | $ 18.7 | $ 41.9 | $ 57.7 | |
Finance lease expense | |||||
Amortization of ROU lease assets | 0.8 | 1.1 | 2.4 | 3 | |
Interest on lease liabilities | 0.2 | 0.2 | 0.5 | 0.5 | |
Variable lease expense | $ 0.9 | $ 1.7 | $ 5.2 | $ 7.5 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Operating | |
2023 (excluding the nine months ended September 30, 2023) | $ 15.1 |
2024 | 40.1 |
2025 | 26.4 |
2026 | 15.7 |
2027 | 9.3 |
Thereafter | 20.2 |
Total | 126.8 |
Less: Present value discount | (21.1) |
Lease liability | 105.7 |
Finance | |
2023 (excluding the nine months ended September 30, 2023) | 1.2 |
2024 | 3.8 |
2025 | 1.8 |
2026 | 1.1 |
2027 | 0.6 |
Thereafter | 0.2 |
Total | 8.7 |
Less: Present value discount | (0.7) |
Lease liability | $ 8 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 2 Months Ended | 7 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Aug. 11, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating - operating cash flows | $ 11.8 | ||
Finance - financing cash flows | 0.5 | ||
Finance - operating cash flows | 0.1 | ||
ROU lease assets obtained in the exchange for lease liabilities: | |||
Operating leases | 0.8 | $ 19.2 | $ 24.7 |
Finance leases | $ 0 | 0.6 | 6.6 |
Predecessor | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating - operating cash flows | 43.3 | 57.7 | |
Finance - financing cash flows | 2.5 | 3.1 | |
Finance - operating cash flows | $ 0.5 | $ 0.5 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 12, 2023 | Aug. 11, 2023 | Dec. 31, 2022 |
Assets | ||||
Right-of-use operating lease assets | $ 98 | $ 102.2 | ||
Finance | 7.7 | $ 8.7 | ||
Total leased assets | 105.7 | |||
Current liabilities | ||||
Operating lease liabilities | 40.1 | |||
Finance | 3.9 | |||
Noncurrent liabilities | ||||
Operating | 65.5 | |||
Finance | 4.2 | |||
Total lease liabilities | $ 113.7 | |||
Predecessor | ||||
Assets | ||||
Right-of-use operating lease assets | $ 89.6 | $ 108.5 | ||
Finance | $ 7.9 | 10.3 | ||
Total leased assets | 118.8 | |||
Current liabilities | ||||
Operating lease liabilities | 39 | |||
Finance | 4.1 | |||
Noncurrent liabilities | ||||
Operating | 76.7 | |||
Finance | 5.7 | |||
Total lease liabilities | $ 125.5 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value Measurements (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Transfers Between Levels Amount | $ 0 | $ 0 | ||
Fair value liabilities measured on recurring basis | ||||
Less: Fair value of Exit Facility | 1,260,600,000 | $ 1,250,000,000 | ||
Long-term debt | 1,260,100,000 | |||
Fair Value, Measurements, Recurring [Member] | ||||
Fair value assets measured on recurring basis | ||||
Total | 19,400,000 | $ 29,000,000 | ||
Fair value liabilities measured on recurring basis | ||||
Total | 2,800,000 | 4,400,000 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair value assets measured on recurring basis | ||||
Total | 19,400,000 | 29,000,000 | ||
Fair value liabilities measured on recurring basis | ||||
Total | 2,800,000 | 4,400,000 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair value assets measured on recurring basis | ||||
Total | 0 | 0 | ||
Fair value liabilities measured on recurring basis | ||||
Total | 0 | 0 | ||
Assets held in rabbi trusts [Member] | ||||
Fair value assets measured on recurring basis | ||||
Fair value of investment assets | 2,800,000 | 4,400,000 | ||
Short-term investments | Certificates of deposit | Fair Value, Measurements, Recurring [Member] | ||||
Fair value assets measured on recurring basis | ||||
Fair value of investment assets | 16,600,000 | 24,600,000 | ||
Short-term investments | Certificates of deposit | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair value assets measured on recurring basis | ||||
Fair value of investment assets | 16,600,000 | 24,600,000 | ||
Short-term investments | Certificates of deposit | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair value assets measured on recurring basis | ||||
Fair value of investment assets | 0 | 0 | ||
Securities and other investments | Assets held in rabbi trusts [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair value assets measured on recurring basis | ||||
Assets held in rabbi trusts | 2,800,000 | 4,400,000 | ||
Securities and other investments | Assets held in rabbi trusts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair value assets measured on recurring basis | ||||
Assets held in rabbi trusts | 2,800,000 | 4,400,000 | ||
Securities and other investments | Assets held in rabbi trusts [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair value assets measured on recurring basis | ||||
Assets held in rabbi trusts | 0 | 0 | ||
Other liabilities | Fair Value, Measurements, Recurring [Member] | ||||
Fair value liabilities measured on recurring basis | ||||
Deferred compensation | 2,800,000 | 4,400,000 | ||
Other liabilities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair value liabilities measured on recurring basis | ||||
Deferred compensation | 2,800,000 | 4,400,000 | ||
Other liabilities | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair value liabilities measured on recurring basis | ||||
Deferred compensation | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) shares in Millions, $ in Millions | May 13, 2019 € / shares shares | Feb. 17, 2017 € / shares shares | Sep. 30, 2023 USD ($) |
Loss Contingencies [Line Items] | |||
Shares Repurchased Of Redeemable Noncontrolling Interest | shares | 1.4 | 6.9 | |
Indirect Tax Liability [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ | $ 51.1 | ||
Domination and Profit and Loss Transfer Agreement [Member] | Diebold Nixdorf AG [Member] | |||
Loss Contingencies [Line Items] | |||
Business Acquisition, Share Price | € 54.80 | € 55.02 | |
Recurring Cash Compensation Per Share Net Of Tax | € 2.82 |
Bank Guarantees, Standby LOC, a
Bank Guarantees, Standby LOC, and Surety Bonds (Details) - USD ($) $ in Millions | 2 Months Ended | 7 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Aug. 11, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Guarantor Obligations [Line Items] | ||||
Maximum future payment obligations | $ 118.8 | $ 173.2 | ||
Changes in warranty liability balance | ||||
Beginning Balance | 26.6 | $ 28.3 | $ 36.3 | |
Current period accruals | 3.9 | 18.8 | 12.2 | |
Current period settlements | (4.1) | (21.9) | (17) | |
Currency translation adjustment | (1.2) | 1.4 | (2.6) | |
Ending Balance | 25.2 | $ 26.6 | $ 28.9 | |
Financial Standby Letter of Credit [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Maximum future payment obligations | $ 24 | $ 24 |
Commitment and Contingencies -
Commitment and Contingencies - Reconciliation of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 12, 2023 | Aug. 11, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Reorganization, Chapter 11 [Line Items] | ||||||
Cash and cash equivalents | $ 376.1 | $ 391.4 | $ 391.4 | $ 307.4 | $ 128.4 | |
Professional fee escrow | 22.9 | |||||
Bank collateral guarantees | 32.4 | |||||
Pension collateral guarantees | 8.9 | |||||
Restricted cash and cash equivalents | 64.2 | |||||
Cash, cash equivalents and restricted cash | $ 440.3 | 452.2 | 319.1 | $ 128.4 | $ 388.9 | |
Predecessor | ||||||
Reorganization, Chapter 11 [Line Items] | ||||||
Cash and cash equivalents | $ 404.9 | 307.4 | ||||
Professional fee escrow | 0 | |||||
Bank collateral guarantees | 2.6 | |||||
Pension collateral guarantees | 9.1 | |||||
Restricted cash and cash equivalents | 11.7 | |||||
Cash, cash equivalents and restricted cash | $ 319.1 |
Revenue from Contract with Cu_3
Revenue from Contract with Customer (Details) - USD ($) $ in Millions | 2 Months Ended | 7 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Aug. 11, 2023 | Sep. 30, 2022 | Aug. 12, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue From Contract With Customer Percentage | 100% | 100% | 100% | ||
Deferred revenue | $ 351.5 | $ 421 | $ 453.2 | ||
Trade receivables, less allowances for doubtful accounts of $1.0 and $34.5, respectively | 703.8 | $ 623.9 | $ 612.2 | ||
Revenue, Remaining Performance Obligation, Amount | $ 1,300 | ||||
Deferred Revenue, Revenue Recognized | 63.7 | $ 223.4 | |||
Impairment losses recognized as bad debt expense | $ 1 | $ 16.6 | $ 18.3 | ||
Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue From Contract With Customer Percentage | 52% | 61% | 63% | ||
Transferred at Point in Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue From Contract With Customer Percentage | 48% | 39% | 37% |
Finance Lease Receivables (Deta
Finance Lease Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Capital Leases, Future Minimum Payments Due Thereafter | $ 3.4 | |
2021 | 2.3 | |
2022 | 7.2 | |
2023 | 4.7 | |
2024 | 4.2 | |
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Five | 3.2 | |
Capital Leases Net Investment In Sales Type Leases Receivable Net | 24 | $ 26.5 |
Capital Leases, Future Minimum Payments Receivable | 25 | |
Financing Receivable, Allowance for Credit Losses | 0.1 | 0.2 |
Sales-type Lease, Unguaranteed Residual Asset | 0 | 0.1 |
Capital Leases Net Investment In Sales Type Leases Minimum Payments To Be Received And Unguaranteed Residual Values | 24.9 | 28 |
Capital Leases Net Investment In Sales Type Leases Unearned Interest Income | 0.9 | 1.5 |
Finance Leases Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Capital Leases, Future Minimum Payments Receivable | $ 25 | $ 28.1 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Aug. 11, 2023 | Aug. 11, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |||
Summary of Segment Information | |||||||||
Total revenue | $ 351.6 | $ 591.8 | $ 810.4 | $ 2,131.9 | $ 2,491.9 | ||||
Operating income (loss) / Segment operating profit | (0.5) | (36.9) | (5.5) | 5.5 | 169.4 | ||||
Asset Impairment Charges | (0.6) | (1.1) | (4.1) | (3.3) | (64.7) | ||||
Restructuring and transformation expenses(4) | (5.3) | (6.2) | (20.7) | (38.9) | (98.9) | ||||
Other income (expense) | 2,239.7 | (77) | (51.5) | 1,453.9 | (142.1) | ||||
Income (loss) from continuing operations before taxes | (40.1) | 1,448.4 | (311.5) | ||||||
Amortization of acquired intangible assets | 0 | (41.8) | (52.8) | ||||||
Global Retail [Member] | |||||||||
Summary of Segment Information | |||||||||
Total revenue | 97.2 | 181.1 | 225 | 610 | 742.4 | ||||
Global Banking | |||||||||
Summary of Segment Information | |||||||||
Total revenue | 253.2 | 409 | 580.3 | 1,511 | 1,733.3 | ||||
Other Segments | |||||||||
Summary of Segment Information | |||||||||
Total revenue | 1.2 | 1.7 | 5.1 | 10.9 | 16.2 | ||||
Operating Segments [Member] | |||||||||
Summary of Segment Information | |||||||||
Operating income (loss) / Segment operating profit | (44.4) | (90.6) | (114.2) | (297.8) | (299.4) | ||||
Operating Segments [Member] | Global Retail [Member] | |||||||||
Summary of Segment Information | |||||||||
Total revenue | 97.2 | 181.1 | 225 | 610 | 742.4 | ||||
Operating income (loss) / Segment operating profit | (15.1) | (31.3) | (31.1) | (86.2) | (90) | ||||
Operating Segments [Member] | Global Banking | |||||||||
Summary of Segment Information | |||||||||
Total revenue | 253.2 | 409 | 580.3 | 1,511 | 1,733.3 | ||||
Operating income (loss) / Segment operating profit | (29.3) | (59.3) | (83.1) | (211.6) | (209.4) | ||||
Corporate and Reconciling Items [Member] | |||||||||
Summary of Segment Information | |||||||||
Reconciliation Of Operating Profit Loss From Segments To Consolidated, Amount | (43.9) | (53.7) | (108.7) | (303.3) | (468.8) | ||||
Segment Reconciling Items [Member] | |||||||||
Summary of Segment Information | |||||||||
Operating income (loss) / Segment operating profit | 1.3 | 1 | 5 | 7.9 | 16.7 | ||||
Asset Impairment Charges | 0.6 | 1.1 | (4.1) | (3.3) | (64.7) | ||||
Restructuring and transformation expenses(4) | $ (5.3) | (4.8) | (5.1) | $ (6.2) | (20.7) | (38.4) | (98.9) | ||
Net non-routine expense(6) | (4.7) | 0.2 | 5.3 | (7.4) | (34.3) | ||||
Amortization of acquired intangible assets | 6.1 | 0 | (16.6) | (41.8) | (52.8) | ||||
Corporate | |||||||||
Summary of Segment Information | |||||||||
Operating income (loss) / Segment operating profit | $ (26.3) | $ (47) | $ (54.2) | $ 159.8 | [1] | $ 188 | [1] | ||
[1]Corporate charges not allocated to segments include headquarter-based costs associated primarily with human resources, finance, IT and legal that are not directly attributable to a particular segment and are separately assessed by the CODM for purposes of making decisions, assessing performance and allocating resources. It also includes the impact of $2.8 of revenue reversed due to a legal settlement penalty during the Successor Period. (2) Impairment in the 2023 Successor Period primarily relates to German and Indian facilities. Impairment in the 2023 Predecessor Periods primarily relate to leased European facilities closures. Impairment during the nine months ended September 30, 2022 Predecessor Period was primarily comprised of $38.4 related to impairment of capitalized cloud-based North America ERP, and the Company impaired $16.8 of assets connected with the Company's operations in Russia, Ukraine and Belarus as a result of the Russian incursion into Ukraine and the related economic sanctions. (3) The amortization of purchase accounting intangible assets is not included in the segment results used by the CODM to make decisions, allocate resources or assess performance. (4) Refer to Note 11 for further information regarding restructurings. Consistent with the historical reportable segment structure, restructuring and transformation costs are not assigned to the segments, and are separately analyzed by the CODM. (5) Refinancing related costs are fees earned by our advisors that have been accounted for as period expense. (6) Net non-routine expense consists of items that the Company has determined are non-routine in nature and not allocated to the reportable operating segments as they are not included in the measure used by the CODM to make decisions, allocate resources and assess performance. (7) Held for sale non-core European retail business represents the revenue and operating profit of a business that had been classified as held for sale in the Predecessor Period and sold during the Successor Period (see Note 15). It was removed in 2022 from the retail segment's information used by the CODM to make decisions, assess performance and allocate resources, and now is individually analyzed. This change and timing thereof aligns with the build-out of a data center that makes the entity capable of operating autonomously and is consistent with material provided in connection with our refinancing effort which are exclusive of this entity. (8) Excludes $2.8 of revenue reversed due to a legal settlement penalty during the Successor period. |
Segment Information - Segment I
Segment Information - Segment Information By Revenue Type (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Aug. 11, 2023 | Aug. 11, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |||
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ (351.6) | $ (591.8) | $ (810.4) | $ (2,131.9) | $ (2,491.9) | ||||
Operating profit (loss) | 0.5 | 36.9 | 5.5 | (5.5) | (169.4) | ||||
Impairment of assets | 0.6 | 1.1 | 4.1 | 3.3 | 64.7 | ||||
Amortization of Wincor Nixdorf purchase accounting intangible assets | 0 | 41.8 | 52.8 | ||||||
Severance accrual | 5.3 | 6.2 | 20.7 | 38.9 | 98.9 | ||||
Other income (expense) | 2,239.7 | (77) | (51.5) | 1,453.9 | (142.1) | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | 2,240.2 | (40.1) | (46) | 1,448.4 | (311.5) | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Asset Impairment Charges | (0.6) | (1.1) | (4.1) | (3.3) | (64.7) | ||||
Amortization of acquired intangible assets | 0 | (41.8) | (52.8) | ||||||
Restructuring and transformation expenses(4) | (5.3) | (6.2) | (20.7) | (38.9) | (98.9) | ||||
Operating profit (loss) | 0.5 | 36.9 | 5.5 | (5.5) | (169.4) | ||||
Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating profit (loss) | 44.4 | 90.6 | 114.2 | 297.8 | 299.4 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit (loss) | 44.4 | 90.6 | 114.2 | 297.8 | 299.4 | ||||
Corporate | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating profit (loss) | 26.3 | 47 | 54.2 | (159.8) | [1] | (188) | [1] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit (loss) | 26.3 | 47 | 54.2 | (159.8) | [1] | (188) | [1] | ||
Segment Reconciling Items [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating profit (loss) | (1.3) | (1) | (5) | (7.9) | (16.7) | ||||
Impairment of assets | (0.6) | (1.1) | 4.1 | 3.3 | 64.7 | ||||
Amortization of Wincor Nixdorf purchase accounting intangible assets | (6.1) | 0 | 16.6 | 41.8 | 52.8 | ||||
Severance accrual | $ 5.3 | 4.8 | 5.1 | $ 6.2 | 20.7 | 38.4 | 98.9 | ||
Restructuring and Related Cost, Incurred Cost | (0.1) | 0.3 | (13.4) | (44.7) | (13.4) | ||||
Non Routine Expenses Net | 4.7 | (0.2) | (5.3) | 7.4 | 34.3 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Asset Impairment Charges | 0.6 | 1.1 | (4.1) | (3.3) | (64.7) | ||||
Amortization of acquired intangible assets | 6.1 | 0 | (16.6) | (41.8) | (52.8) | ||||
Restructuring and transformation expenses(4) | $ (5.3) | (4.8) | (5.1) | $ (6.2) | (20.7) | (38.4) | (98.9) | ||
Restructuring and Related Cost, Incurred Cost | (0.1) | 0.3 | (13.4) | (44.7) | (13.4) | ||||
Net non-routine expense(6) | (4.7) | 0.2 | 5.3 | (7.4) | (34.3) | ||||
Operating profit (loss) | (1.3) | (1) | (5) | (7.9) | (16.7) | ||||
Corporate and Reconciling Items [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Reconciliation Of Operating Profit Loss From Segments To Consolidated, Amount | (43.9) | (53.7) | (108.7) | (303.3) | (468.8) | ||||
Retail Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (97.2) | (181.1) | (225) | (610) | (742.4) | ||||
Retail Segment [Member] | Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (97.2) | (181.1) | (225) | (610) | (742.4) | ||||
Operating profit (loss) | 15.1 | 31.3 | 31.1 | 86.2 | 90 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit (loss) | 15.1 | 31.3 | 31.1 | 86.2 | 90 | ||||
Other Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (1.2) | (1.7) | (5.1) | (10.9) | (16.2) | ||||
Global Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (253.2) | (409) | (580.3) | (1,511) | (1,733.3) | ||||
Global Banking | Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (253.2) | (409) | (580.3) | (1,511) | (1,733.3) | ||||
Operating profit (loss) | 29.3 | 59.3 | 83.1 | 211.6 | 209.4 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit (loss) | 29.3 | 59.3 | 83.1 | 211.6 | 209.4 | ||||
Service [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (240.6) | (305.5) | (514.3) | (1,295) | (1,565.9) | ||||
Service [Member] | Retail Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (66.7) | (76) | (130.4) | (335.2) | (405.6) | ||||
Service [Member] | Other Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (0.9) | (1.1) | (4) | (5.5) | (7.4) | ||||
Service [Member] | Global Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (173) | (228.4) | (379.9) | (954.3) | (1,152.9) | ||||
Product | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (111) | (286.3) | (296.1) | (836.9) | (926) | ||||
Product | Retail Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (30.5) | (105.1) | (94.6) | (274.8) | (336.8) | ||||
Product | Other Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | (0.3) | (0.6) | (1.1) | (5.4) | (8.8) | ||||
Product | Global Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ (80.2) | $ (180.6) | $ (200.4) | $ (556.7) | $ (580.4) | ||||
[1]Corporate charges not allocated to segments include headquarter-based costs associated primarily with human resources, finance, IT and legal that are not directly attributable to a particular segment and are separately assessed by the CODM for purposes of making decisions, assessing performance and allocating resources. It also includes the impact of $2.8 of revenue reversed due to a legal settlement penalty during the Successor Period. (2) Impairment in the 2023 Successor Period primarily relates to German and Indian facilities. Impairment in the 2023 Predecessor Periods primarily relate to leased European facilities closures. Impairment during the nine months ended September 30, 2022 Predecessor Period was primarily comprised of $38.4 related to impairment of capitalized cloud-based North America ERP, and the Company impaired $16.8 of assets connected with the Company's operations in Russia, Ukraine and Belarus as a result of the Russian incursion into Ukraine and the related economic sanctions. (3) The amortization of purchase accounting intangible assets is not included in the segment results used by the CODM to make decisions, allocate resources or assess performance. (4) Refer to Note 11 for further information regarding restructurings. Consistent with the historical reportable segment structure, restructuring and transformation costs are not assigned to the segments, and are separately analyzed by the CODM. (5) Refinancing related costs are fees earned by our advisors that have been accounted for as period expense. (6) Net non-routine expense consists of items that the Company has determined are non-routine in nature and not allocated to the reportable operating segments as they are not included in the measure used by the CODM to make decisions, allocate resources and assess performance. (7) Held for sale non-core European retail business represents the revenue and operating profit of a business that had been classified as held for sale in the Predecessor Period and sold during the Successor Period (see Note 15). It was removed in 2022 from the retail segment's information used by the CODM to make decisions, assess performance and allocate resources, and now is individually analyzed. This change and timing thereof aligns with the build-out of a data center that makes the entity capable of operating autonomously and is consistent with material provided in connection with our refinancing effort which are exclusive of this entity. (8) Excludes $2.8 of revenue reversed due to a legal settlement penalty during the Successor period. |
Segment Information - Revenue b
Segment Information - Revenue by Service/Product Solution (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Revenue from External Customer [Line Items] | |||||
Net sales | $ 351.6 | $ 591.8 | $ 810.4 | $ 2,131.9 | $ 2,491.9 |
Service [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 240.6 | 305.5 | 514.3 | 1,295 | 1,565.9 |
Product | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 111 | 286.3 | 296.1 | 836.9 | 926 |
Global Retail [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 97.2 | 181.1 | 225 | 610 | 742.4 |
Global Retail [Member] | Operating Segments [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 97.2 | 181.1 | 225 | 610 | 742.4 |
Global Retail [Member] | Service [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 66.7 | 76 | 130.4 | 335.2 | 405.6 |
Global Retail [Member] | Product | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 30.5 | 105.1 | 94.6 | 274.8 | 336.8 |
Global Banking | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 253.2 | 409 | 580.3 | 1,511 | 1,733.3 |
Global Banking | Operating Segments [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 253.2 | 409 | 580.3 | 1,511 | 1,733.3 |
Global Banking | Service [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 173 | 228.4 | 379.9 | 954.3 | 1,152.9 |
Global Banking | Product | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 80.2 | 180.6 | 200.4 | 556.7 | 580.4 |
Other Segments | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 1.2 | 1.7 | 5.1 | 10.9 | 16.2 |
Other Segments | Service [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | 0.9 | 1.1 | 4 | 5.5 | 7.4 |
Other Segments | Product | |||||
Revenue from External Customer [Line Items] | |||||
Net sales | $ 0.3 | $ 0.6 | $ 1.1 | $ 5.4 | $ 8.8 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2021 | |
Research and Development [Abstract] | |||
Capitalized Computer Software, Net | $ 19.3 | $ 50.7 | |
Capitalized Computer Software, Impairments | $ 38.4 |
Research and Development (Det_2
Research and Development (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Research and Development [Abstract] | |||||
Amortization of Implementation Fees | $ 0.3 | $ 1.3 | $ 0.6 | $ 2 | $ 1.6 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | |||||
Net sales | $ 351.6 | $ 591.8 | $ 810.4 | $ 2,131.9 | $ 2,491.9 |
Operating profit (loss) | 0.5 | 36.9 | 5.5 | (5.5) | (169.4) |
Gross profit | 85.5 | 129.6 | 193.8 | 520 | 539.9 |
Impairment of assets | $ 0.6 | $ 1.1 | $ 4.1 | $ 3.3 | $ 64.7 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 12, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 167.6 | $ 166.5 | $ 600.1 |
Accumulated depreciation and amortization | (8.6) | (479.4) | |
Total property, plant, and equipment, net | 159 | 166.5 | 120.7 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 20.8 | 21.5 | 10 |
Property, Plant and Equipment, Useful Life | 15 years | ||
Building | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 40.9 | 68.3 | |
Building | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Building | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 34.3 | 81.8 | |
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 12 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 6.5 | 6.1 | 17.2 |
Property, Plant and Equipment, Useful Life | 10 years | ||
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 17.7 | 16.1 | 101.1 |
Property, Plant and Equipment, Useful Life | 3 years | ||
Technology Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 6.1 | 127.8 | |
Technology Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Technology Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 17.4 | 17.3 | 54.6 |
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 8 years | ||
Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 10.9 | 11.1 | 134.7 |
Tooling | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Tooling | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 13 | $ 13.8 | $ 4.6 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Depreciation (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Aug. 11, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 11, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation | $ 5.8 | $ 5.4 | $ 6.7 | $ 18.3 | $ 23 |