Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 11, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-00395 | ||
Entity Registrant Name | NCR VOYIX CORPORATION | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 31-0387920 | ||
Entity Address, Address Line One | 864 Spring Street NW | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30308 | ||
City Area Code | 800 | ||
Local Phone Number | 225-5627 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | VYX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | true | ||
Document Financial Statement Restatement Recovery Analysis | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.2 | ||
Entity Common Stock, Shares Outstanding | 144,290,210 | ||
Documents Incorporated by Reference | Part III: Portions of the Registrant’s Definitive Proxy Statement for its Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days after the Registrant’s fiscal year end of December 31, 2023 are incorporated by reference into Part III of this Report. | ||
Entity Central Index Key | 0000070866 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 238 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | $ 963 | $ 978 | $ 967 | $ 922 | $ 966 | $ 960 | $ 950 | $ 917 | $ 1,889 | $ 2,867 | $ 3,830 | $ 3,793 | $ 3,692 |
Selling, general and administrative expenses | 162 | 167 | 156 | 323 | 486 | 740 | 695 | 704 | |||||
Research and development expenses | 38 | 42 | 49 | 91 | 129 | 185 | 147 | 195 | |||||
Total operating expenses | 907 | 900 | 893 | 1,793 | 2,700 | 3,793 | 3,657 | 3,666 | |||||
Income from operations | (130) | 71 | 67 | 29 | 58 | 55 | 24 | (1) | 96 | 167 | 37 | 136 | 26 |
Loss on extinguishment of debt | 0 | 0 | 0 | 0 | 0 | (46) | 0 | (42) | |||||
Interest expense | (83) | (91) | (83) | (174) | (257) | (294) | (285) | (238) | |||||
Other income (expense), net | (25) | (9) | (4) | (13) | (38) | (79) | 18 | (13) | |||||
Income (loss) from continuing operations before income taxes | (37) | (33) | (58) | (91) | (128) | (382) | (131) | (267) | |||||
Income tax expense (benefit) | 185 | 8 | 7 | 15 | 200 | 204 | 72 | 70 | |||||
Income (loss) from continuing operations | (258) | (222) | (41) | (65) | (12) | (38) | (57) | (96) | (106) | (328) | (586) | (203) | (337) |
Income (loss) from discontinued operations, net of tax | (61) | 94 | 57 | 73 | (6) | 107 | 100 | 61 | 130 | 224 | 163 | 262 | 435 |
Net income (loss) | (319) | (128) | 16 | 8 | (18) | 69 | 43 | (35) | 24 | (104) | (423) | 59 | 98 |
Net income (loss) attributable to noncontrolling interests | 1 | (1) | 1 | 0 | 1 | 0 | (1) | 1 | |||||
Net income (loss) attributable to NCR Voyix | (129) | 17 | 7 | 24 | (105) | (423) | 60 | 97 | |||||
Amounts attributable to NCR Voyix common stockholders: | |||||||||||||
Income (loss) from continuing operations | (222) | (41) | (65) | (106) | (328) | (586) | (203) | (337) | |||||
Series A convertible preferred stock dividends | (4) | (4) | (4) | (8) | (12) | (16) | (16) | (16) | |||||
Income (loss) from continuing operations attributable to NCR Voyix | (226) | (45) | (69) | (114) | (340) | (602) | (219) | (353) | |||||
Income (loss) from discontinued operations, net of tax | 93 | 58 | 72 | 130 | 223 | 163 | 263 | 434 | |||||
Net income (loss) attributable to NCR Voyix common stockholders | $ (322) | $ (133) | $ 13 | $ 3 | $ (20) | $ 65 | $ 37 | $ (38) | $ 16 | $ (117) | $ (439) | $ 44 | $ 81 |
Income (loss) per common share from continuing operations | |||||||||||||
Continuing operations. basic (in dollars per share) | $ (1.85) | $ (1.60) | $ (0.32) | $ (0.49) | $ (0.12) | $ (0.31) | $ (0.46) | $ (0.72) | $ (0.81) | $ (2.41) | $ (4.28) | $ (1.60) | $ (2.69) |
Diluted (in dollars per share) | (1.85) | (1.60) | (0.32) | (0.49) | (0.12) | (0.31) | (0.46) | (0.72) | (0.81) | (2.41) | (4.28) | (1.60) | (2.69) |
Net income (loss) per common share | |||||||||||||
Net income attributable to common shareholders, basic (in dollars per share) | (2.28) | (0.94) | 0.09 | 0.02 | (0.15) | 0.47 | 0.27 | (0.28) | 0.11 | (0.83) | (3.12) | 0.32 | 0.62 |
Diluted (in dollars per share) | $ (2.28) | $ (0.94) | $ 0.09 | $ 0.02 | $ (0.15) | $ 0.47 | $ 0.27 | $ (0.28) | $ 0.11 | $ (0.83) | $ (3.12) | $ 0.32 | $ 0.62 |
Weighted average common shares outstanding | |||||||||||||
Basic (in shares) | 140.6 | 136.7 | 131.2 | ||||||||||
Diluted (net income) | 140.6 | 136.7 | 131.2 | ||||||||||
Product | |||||||||||||
Revenue | $ 318 | $ 317 | $ 292 | $ 609 | $ 927 | $ 1,239 | $ 1,274 | $ 1,176 | |||||
Cost of products | 269 | 273 | 269 | 542 | 811 | 1,110 | 1,151 | 1,032 | |||||
Service | |||||||||||||
Revenue | 660 | 650 | 630 | 1,280 | 1,940 | 2,591 | 2,519 | 2,516 | |||||
Cost of products | $ 438 | $ 418 | $ 419 | $ 837 | $ 1,274 | $ 1,758 | $ 1,664 | $ 1,735 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (423) | $ 59 | $ 98 |
Currency translation adjustments | |||
Currency translation adjustments gain (loss) | 85 | (132) | (30) |
Derivatives | |||
Unrealized gain (loss) on derivatives | 0 | 152 | 9 |
Loss (gain) on derivatives arising during the period | (31) | (18) | 1 |
Less income tax benefit (expense) | 7 | (33) | (2) |
Employee benefit plans | |||
Prior service benefit | 0 | 0 | 6 |
Amortization of prior service cost | (1) | (2) | (1) |
Net (loss) gain arising during the period | (9) | 25 | (1) |
Amortization of actuarial (loss) gain | (1) | 0 | (1) |
Less income tax benefit (expense) | 3 | (4) | (1) |
Other comprehensive income (loss) | 53 | (12) | (20) |
Total comprehensive income (loss) | (370) | 47 | 78 |
Less comprehensive income attributable to noncontrolling interests: | |||
Net income | 0 | (1) | 1 |
Currency translation adjustments | 0 | (3) | 0 |
Amounts attributable to noncontrolling interests | 0 | (4) | 1 |
Comprehensive income (loss) attributable to NCR Voyix common stockholders | $ (370) | $ 51 | $ 77 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 262 | $ 221 |
Accounts receivable, net of allowances of $32 and $21 as of December 31, 2023 and 2022, respectively | 481 | 550 |
Inventories | 254 | 357 |
Restricted cash | 21 | 17 |
Prepaid and other current assets | 188 | 247 |
Current assets of discontinued operations | 0 | 1,690 |
Total current assets | 1,206 | 3,082 |
Property, plant and equipment, net | 212 | 227 |
Goodwill | 2,040 | 2,064 |
Intangibles, net | 291 | 416 |
Operating lease assets | 236 | 272 |
Prepaid pension cost | 43 | 35 |
Deferred income taxes | 239 | 329 |
Other assets | 723 | 744 |
Noncurrent assets of discontinued operations | 0 | 4,338 |
Total assets | 4,990 | 11,507 |
Current liabilities | ||
Short-term borrowings | 15 | 101 |
Accounts payable | 505 | 594 |
Payroll and benefits liabilities | 149 | 87 |
Contract liabilities | 197 | 191 |
Settlement liabilities | 39 | 38 |
Other current liabilities | 428 | 349 |
Current liabilities of discontinued operations | 0 | 1,353 |
Total current liabilities | 1,333 | 2,713 |
Long-term debt | 2,563 | 5,552 |
Pension and indemnity plan liabilities | 167 | 157 |
Postretirement and postemployment benefits liabilities | 43 | 38 |
Income tax accruals | 64 | 58 |
Operating lease liabilities | 254 | 286 |
Other liabilities | 265 | 185 |
Noncurrent liabilities of discontinued operations | 0 | 764 |
Total liabilities | 4,689 | 9,753 |
Commitments and Contingencies | ||
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.3 shares issued and outstanding as of December 31, 2023 and 2022; redemption amount and liquidation preference of $276 as of December 31, 2023 and 2022 | 276 | 275 |
Stockholders’ equity | ||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of December 31, 2023 and 2022, respectively | 0 | 0 |
Common stock: par value $0.01 per share, 500.0 shares authorized, 142.6 and 138.0 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 1 | 1 |
Paid-in capital | 874 | 704 |
Retained earnings (deficit) | (421) | 1,075 |
Accumulated other comprehensive loss | (429) | (300) |
Total NCR Voyix stockholders’ equity | 25 | 1,480 |
Noncontrolling interests in subsidiaries | 0 | 0 |
Noncontrolling interests of discontinued operations | 0 | (1) |
Total stockholders’ equity | 25 | 1,479 |
Total liabilities and stockholders’ equity | $ 4,990 | $ 11,507 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 32 | $ 21 |
Convertible Preferred Stock | ||
Temporary equity, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Temporary equity, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Temporary equity, shares issued (in shares) | 300,000 | 300,000 |
Temporary equity, shares outstanding (in shares) | 300,000 | 300,000 |
Temporary equity, aggregate amount of redemption requirement | $ 276 | $ 276 |
Temporary equity, liquidation preference | $ 276 | $ 276 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 142,600,000 | 138,000,000 |
Common stock, shares issued (in shares) | 142,600,000 | 138,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net income (loss) | $ (423) | $ 59 | $ 98 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss on debt extinguishment | 46 | 0 | 42 |
Depreciation and amortization | 559 | 610 | 517 |
Stock-based compensation expense | 177 | 125 | 154 |
Deferred income taxes | 140 | 60 | 89 |
Loss (gain) on disposal of property, plant and equipment and other assets | (2) | (10) | 0 |
Loss on divestitures | 12 | 9 | 0 |
Impairment of other assets | 8 | 0 | 24 |
Gain on terminated interest rate derivative agreements | (103) | 0 | 0 |
Changes in assets and liabilities, net of effects of business acquired: | |||
Receivables | 47 | (216) | 215 |
Inventories | 9 | (188) | (195) |
Current payables and accrued expenses | 108 | 29 | 255 |
Contract liabilities | (24) | (1) | (15) |
Employee benefit plans | (6) | (61) | (147) |
Other assets and liabilities | 146 | 11 | (28) |
Net cash provided by operating activities | 694 | 427 | 1,009 |
Investing activities | |||
Expenditures for property, plant and equipment | (130) | (92) | (106) |
Proceeds from sales of property, plant and equipment | 8 | 10 | 1 |
Additions to capitalized software | (247) | (285) | (242) |
Business acquisitions, net of cash acquired | (7) | (13) | (2,473) |
Proceeds from divestitures, net | 96 | (2) | 0 |
Purchases of investments | (10) | 0 | (13) |
Proceeds from sale of investments | 0 | 0 | 14 |
Other investing activities, net | 0 | (5) | (7) |
Net cash used in investing activities | (290) | (387) | (2,826) |
Financing activities | |||
Short term borrowings, net | 0 | 1 | 0 |
Payments on term credit facilities | (1,878) | (63) | (107) |
Borrowings on term credit facilities | 200 | 0 | 1,505 |
Payments on revolving credit facilities | (2,855) | (1,192) | (1,650) |
Borrowings on revolving credit facilities | 2,430 | 1,333 | 1,756 |
Payments of senior unsecured notes | (1,000) | 0 | (400) |
Proceeds from issuance of senior unsecured and other notes | 0 | 12 | 1,200 |
Payments on other financing arrangements | (2) | 0 | 0 |
Debt issuance costs and bridge commitment fees | (5) | 0 | (53) |
Call premium paid on debt extinguishment | (24) | 0 | (37) |
Cash paid for Series A Convertible Preferred Stock dividends | (15) | (15) | (15) |
Tax withholding payments on behalf of employees | (34) | (59) | (50) |
Proceeds from employee stock plans | 27 | 31 | 44 |
Net change in client funds obligations | 0 | (28) | 4 |
Principal payments for finance lease obligations | (15) | (15) | (17) |
Proceeds from long-term debt related to debt transferred to NCR Atleos at separation | 3,016 | 0 | 0 |
Cash transferred to NCR Atleos at separation | (684) | 0 | 0 |
Other financing activities | 0 | (4) | (2) |
Net cash provided by (used in) financing activities | (839) | 1 | 2,178 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (20) | (50) | (18) |
Increase (decrease) in cash, cash equivalents and restricted cash | (455) | (9) | 343 |
Cash, cash equivalents and restricted cash at beginning of period | 740 | 749 | 406 |
Cash, cash equivalents and restricted cash at end of period | $ 285 | $ 740 | $ 749 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Total Stockholders Equity | Common Stock | Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests in Subsidiaries |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 129 | ||||||
Balance at beginning of period at Dec. 31, 2020 | $ 1,051 | $ 1 | $ 368 | $ 950 | $ (271) | $ 3 | |
Comprehensive income (loss): | |||||||
Net income (loss) | 98 | 97 | 1 | ||||
Other comprehensive income (loss) | $ (20) | (20) | (20) | ||||
Total comprehensive income (loss) | 78 | 97 | (20) | ||||
Total comprehensive income (loss), noncontrolling interests in subsidiaries | 1 | ||||||
Employee stock purchase and stock compensation plans (in shares) | 3 | ||||||
Employee stock purchase and stock compensation plans | 128 | 128 | |||||
Fair value of converted Cardtronics awards attributable to pre-combination services | 19 | 19 | |||||
Series A convertible preferred stock dividends | (16) | (16) | |||||
Dividends paid to minority shareholder | (1) | (1) | |||||
Balance at end of period (in shares) at Dec. 31, 2021 | 132 | ||||||
Balance at end of period at Dec. 31, 2021 | 1,259 | $ 1 | 515 | 1,031 | (291) | 3 | |
Comprehensive income (loss): | |||||||
Net income (loss) | 59 | 60 | (1) | ||||
Other comprehensive income (loss) | $ (12) | (12) | (9) | (3) | |||
Total comprehensive income (loss) | 47 | 60 | (9) | ||||
Total comprehensive income (loss), noncontrolling interests in subsidiaries | (4) | ||||||
Employee stock purchase and stock compensation plans (in shares) | 5 | ||||||
Employee stock purchase and stock compensation plans | 121 | 121 | |||||
Stock issued in acquisition of LibertyX (in shares) | 1 | ||||||
Stock issued in acquisition of LibertyX | 68 | 68 | |||||
Series A convertible preferred stock dividends | (16) | (16) | |||||
Balance at end of period (in shares) at Dec. 31, 2022 | 138 | 138 | |||||
Balance at end of period at Dec. 31, 2022 | $ 1,479 | 1,479 | $ 1 | 704 | 1,075 | (300) | (1) |
Comprehensive income (loss): | |||||||
Net income (loss) | (423) | (423) | |||||
Other comprehensive income (loss) | 53 | 53 | 53 | ||||
Total comprehensive income (loss) | (370) | (423) | 53 | ||||
Employee stock purchase and stock compensation plans (in shares) | 5 | ||||||
Employee stock purchase and stock compensation plans | 170 | 170 | |||||
Series A convertible preferred stock dividends | (16) | (16) | |||||
Equity impact as a result of separation | $ (1,237) | (1,056) | (182) | 1 | |||
Balance at end of period (in shares) at Dec. 31, 2023 | 142.6 | 143 | |||||
Balance at end of period at Dec. 31, 2023 | $ 25 | $ 26 | $ 1 | $ 874 | $ (420) | $ (429) | $ 0 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Description of Business NCR Voyix Corporation (“NCR Voyix”, “NCR”, the “Company”, “we” or “us”), which, prior to its name change effective October 13, 2023 was known as NCR Corporation, was originally incorporated in 1884 and is a global provider of digital commerce solutions for retail stores, restaurants and financial institutions. Headquartered in Atlanta, Georgia, we are a software and services-led enterprise technology provider of run-the-store capabilities for retail and restaurants and cloud-based digital solutions for financial institutions, serving businesses of all sizes. Our software platforms, which run in the cloud and include microservices and APIs that integrate with our customers’ systems, and our As-a-Service solutions enable an end-to-end technology-based operations solution for our customers. Our offerings include digital first software and services offerings for retailers, restaurants and financial institutions, as well as payments acceptance solutions, multi-vendor connected device services, self-checkout (“SCO”) kiosks and related technologies, point of sale (“POS”) terminals and other self-service technologies. Our solutions are designed to enable restaurants, retailers, and financial institutions to seamlessly transact and engage with their customers and end users. Spin-off of NCR Atleos On September 15, 2022, Voyix announced a plan to separate into two independent, publicly traded companies – one focused on digital commerce, the other on ATMs. On October 16, 2023, the Company completed its separation of its ATM-focused business, including its self-service banking, payments & network and telecommunications and technology businesses, through the spin-off of its wholly owned subsidiary, NCR Atleos Corporation (“NCR Atleos”), (the “Spin-Off”). The Spin-Off was effected through a pro rata distribution of all outstanding shares of NCR Atleos common stock to holders of NCR Voyix common stock as of the close of business on October 2, 2023 (the “record date”). The Company distributed one share of NCR Atleos common stock for every two common shares of NCR Voyix outstanding as of the record date. Shareholders received cash in lieu of fractional shares of Atleos common stock. The Spin-Off is expected to qualify as a tax-free distribution for U.S. federal income tax purposes. NCR Atleos is an independent, publicly traded company focused on providing self-directed banking solutions to a global customer base, including financial institutions, retailers and consumers, and NCR Voyix retains no ownership interest. The accounting requirements for reporting the Spin-Off of NCR Atleos as a discontinued operation were met when the separation was completed. Accordingly, the financial results for NCR Atleos for the years ended December 31, 2023 (through the date of separation), December 31, 2022 and December 31, 2021 are presented as net income (loss) from discontinued operations, net of tax on the Consolidated Statements of Operations and its assets and liabilities as of December 31, 2022 are reclassified as discontinued operations in the Consolidated Balance Sheets. Refer to Note 2, “Discontinued Operations” for additional information. In connection with the Spin-Off, the Company and NCR Atleos entered into various agreements to effect the Spin-Off and provide a framework for the relationship between the Company and NCR Atleos after the Spin-Off. Such agreements include the separation and distribution agreement, as well as the following ongoing agreements: a transition services agreement, tax matters agreement, employee matters agreement, patent and technology cross-license agreement, trademark license and use agreement, master services agreement and various other transaction agreements. Under these agreements, the Company will continue to provide certain products and services to NCR Atleos following the Spin-Off and will receive certain products and services from NCR Atleos following the Spin-Off. Additionally, outstanding restricted stock units and stock options were adjusted to maintain the economic value of those awards before and after the Spin-Off. Generally, continuing NCR Voyix employees retained the number of outstanding restricted stock units held by them as of the Spin-Off and received additional NCR Voyix restricted stock units to reflect the Spin-Off, while continuing NCR Atleos employees had their outstanding restricted stock units held by them as of the Spin-Off converted solely into equivalent restricted stock units of NCR Atleos, and any outstanding restricted stock units held by them as of the Spin-Off were cancelled. Outstanding stock options at the time of the Spin-Off, regardless of the holder, were converted into stock options of both NCR Voyix and NCR Atleos. In addition, outstanding restricted stock units held by certain key equity holders as of the Spin-Off (including directors and certain former employees) were converted into restricted stock units of both NCR Voyix and NCR Atleos. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the periods reported. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by macroeconomic pressures and geopolitical challenges. The ultimate impact on our overall financial condition and operating results will depend on supply chain challenges and cost escalations including materials, interest, labor and freight, and any additional governmental and public actions taken in response. As a result, our accounting estimates and assumptions may change over time as a consequence of the effects these external factors. Such changes could result in future impairments of goodwill, intangible assets, long-lived assets, incremental credit losses on accounts receivable and decreases in the carrying amount of our tax assets. Evaluation of Subsequent Events The Company evaluated subsequent events through the date that our Consolidated Financial Statements were issued. Other than the items discussed within the Notes to Consolidated Financial Statements, no matters were identified that required adjustment of the Consolidated Financial Statements or additional disclosure. Basis of Consolidation The consolidated financial statements include the accounts of NCR Voyix and its majority-owned subsidiaries. Long-term investments in affiliated companies in which NCR Voyix owns between 20% and 50%, and therefore, exercises significant influence, but which it does not control, are accounted for using the equity method. Investments in which NCR Voyix does not exercise significant influence (generally, when the Company has an investment of less than 20% and no significant influence, such as representation on the investee’s board of directors) are accounted for using the cost method. All significant inter-company transactions and accounts have been eliminated. In addition, the Company is required to determine whether it is the primary beneficiary of economic income or losses that may be generated by variable interest entities in which the Company has such an interest. In circumstances where the Company determined it is the primary beneficiary, consolidation of that entity would be required. For the periods presented, no variable interest entities have been consolidated. Cyber ransomware incident On April 13, 2023, the Company determined that a single data center outage impacting certain of its commerce customers was caused by a cyber ransomware incident. Upon such determination, the Company immediately started contacting customers, enacted its cybersecurity protocol and engaged outside experts to contain the incident and begin the recovery process. We concluded that this incident impacted operations for some customers only with respect to specific Aloha cloud-based services and Counterpoint. Our investigation also concluded no financial reporting systems were impacted. During the year ended December 31, 2023, we recognized $36 million related to this matter in Cost of services and Selling, general and administrative expenses. As of December 31, 2023, we expect $19 million of these costs to be recovered under our insurance policies and have received $5 million of cash during 2023 and the remaining $14 million is recorded as an insurance receivable. Payments are expected in 2024. Additionally, we are still pursuing insurance recoveries for the remaining costs. We may incur additional costs relating to this incident in the future, including expenses to respond to and remediate this matter, payment of damages or other costs to customers or others. While the Company’s response to this incident is ongoing, at this time we do not believe additional costs we may incur as a result of the incident will ultimately have a material adverse effect on our business, results of operations or financial condition; however, we remain subject to risks and uncertainties as a result of the incident. We will continue to assess the impacts of the security event and cannot definitively determine, at this time, the full extent of the impact from such event on our business, results of operations or financial condition. Reclassifications Certain prior-period amounts have been reclassified in the accompanying Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. Out-of-period adjustments In the first quarter of 2023, the Company recorded a $10 million out-of-period adjustment to increase operating expenses and an employee-related liability in order to correct for an understatement of such same balances during the fourth quarter of 2022. In February 2024, the Company identified fraudulent automated clearing house (“ACH”) disbursements from a Company bank account. The amount of these disbursements through December 31, 2023 was $23 million. Through September 30, 2023, the Company had incorrectly recorded approximately $11 million in an accounts receivable clearing account instead of as operating expenses, of which approximately $2 million related to annual periods prior to 2023. As a result, in the fourth quarter of 2023, the Company recorded a $2 million out-of-period adjustment to increase operating expenses and decrease accounts receivable in order to correct for the errors. The Company evaluated the impact of the errors and out-of-period adjustments and concluded they are not material to any previously issued consolidated financial statements and the correction of the errors is not material to the consolidated financial statements for the year ended December 31, 2023. Revenue Recognition The Company records revenue, net of sales tax, when the following five steps have been completed: • Identification of the contract(s) with a customer • Identification of the performance obligation(s) in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy performance obligations The Company records revenue when, or as, performance obligations are satisfied by transferring control of a promised good or service to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for products and services. The Company evaluates the transfer of control primarily from the customer’s perspective where the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The Company does not adjust the transaction price for taxes collected from customers, as those amounts are netted against amounts remitted to government authorities. The Company enters contracts that include multiple distinct performance obligations, including hardware, software, professional consulting and managed services, payment processing services, installation services and maintenance support services. A promise to a customer is considered distinct when the product or service is both capable of being distinct, and distinct in the context of the contract. For these arrangements, the Company allocates the transaction price, at contract inception, to each distinct performance obligation on a relative standalone selling price basis. The primary method used to estimate standalone selling price is the price that the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. For hardware products, control is generally transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the products, which generally coincides with when the customer has assumed title and risk of loss of the goods sold. In certain instances, customer acceptance is required prior to the passage of title and risk of loss of the delivered products. In such cases, revenue is not recognized until the customer acceptance is obtained. Delivery, acceptance, and transfer of title and risk of loss generally occur in the same reporting period. The Company’s customers may request that delivery and passage of title and risk of loss occur on a bill and hold basis. For the periods ending December 31, 2023, 2022, and 2021, the revenue recognized from bill and hold transactions approximated less than 2% of total revenue, respectively. Hardware products may also be included in an As-a-service package and sold in a bundle with managed services. In these packages, title to the hardware is not transferred to the customer and revenue is recognized in consideration of lease accounting standards, depending on the terms and conditions in the contract. Most hardware leases embedded in our As-a-service contracts qualify for classification as operating leases. Revenue from the hardware operating leases in an As-a-service package is recognized over the term of the contract, which is the same pattern and timing as the services in the contract. Software products may be sold as perpetual licenses, term-based licenses, cloud-enabled and software as a service (“SaaS”). Perpetual license revenue is recognized at a point in time when control transfers to the customer and is reported within product revenue. Control is typically transferred when the customer takes possession of, or has access to, the software. Term-based license revenue is recognized at a point in time upon the commencement of the committed term of the contract, concurrent with the possession of the license, and reported within product revenue. The committed term of the contract is typically one month to one year due to customer termination rights. If the amount of consideration the Company expects to be paid in exchange for the licenses depends on customer usage, revenue is recognized when the usage occurs. SaaS primarily consists of fees to provide our customers access to our platform and cloud-based applications for a specified contract term. Revenue from SaaS contracts is recognized as variable consideration directly allocated based on customer usage or on a ratable basis over the contract term beginning on the date that our service is made available to the customer. SaaS is reported as part of our software and services revenue. The Company sells some product solutions that include a combination of cloud-enabled and on-premise term-based software licenses for a specified contract term. Significant judgment is required to determine if the products and services represent distinct promises to the customer or if they should be combined into one performance obligation. When they are combined into one performance obligation, revenue is recognized ratably over the contract term for which the service is provided. In addition to SaaS, our services revenue includes professional consulting, payment processing revenue, managed services, installation and maintenance support. Professional consulting primarily consists of software implementation, integration, customization and optimization services. Revenue from professional consulting contracts is recognized when the services are completed or customer acceptance of the service is received, if required. For installation and maintenance, control is transferred as the services are provided or ratably over the service period, or, if applicable, after customer acceptance of the service. For recurring services that we perform over a contract term, we analyze if the services are performed evenly throughout the term for fixed consideration. If so, we ratably recognize the corresponding consideration over the committed term. Otherwise, we apply the ‘as invoiced’ practical expedient, for performance obligations satisfied over time, if the amount we may invoice corresponds directly with the value to the customer of the Company’s performance to date. This expedient permits us to recognize revenue in the amount we invoice the customer. Payment processing revenue includes surcharge and other fees paid by cardholders and/or the cardholder’s financial institutions for the use of processing services. Surcharge revenues are recognized daily as the associated transactions are processed. Relative to credit card processing, revenue is comprised of fees charged to the Company’s customers, net of interchange fees and assessments charged by the credit card associations and payment networks, which are pass-through charges collected on behalf of the card issuers and payment networks. Under our managed service agreements, the Company provides various forms of services, including customer service, processing and other services, under one contract package. The Company typically receives a monthly service fee, fee per transaction, or fee per service provided in return for providing the agreed-upon services. The managed services fees are recognized as the related services are provided to the customers. The nature of our arrangements gives rise to several types of variable consideration including service level agreement credits, stock rotation rights, trade-in credits and volume-based rebates. At contract inception, we include this variable consideration in our transaction price when there is a basis to reasonably estimate the amount of the fee and it is probable there will not be a significant reversal. These estimates are generally made using the expected value method and a portfolio approach, based on historical experience, anticipated performance and our best judgment at the time. These estimates are reassessed at each reporting date. Because of our confidence in estimating these amounts, they are included in the transaction price of our contracts and the associated remaining performance obligations. Payment terms with our customers are established based on industry and regional practices and generally do not exceed 30 days. We do not typically include extended payment terms in our contracts with customers. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. If the period between transfer of the promised product or service and payment is more than one year, the Company analyzes whether a significant financing component is present. If so, the Company adjusts the total consideration to reflect the significant financing component. We account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products, rather than as a separate performance obligation. Accordingly, we record amounts billed for shipping and handling costs as a component of net product sales, and classify such costs as a component of cost of products. In addition to the standard product warranty, the Company periodically offers extended warranties to its customers in the form of product maintenance services. For maintenance contracts that have been combined with product contracts under the revenue guidance, the Company defers revenue at an amount based on the relative standalone selling price allocation, and recognizes the deferred revenue over the service term. For non-combined maintenance contracts, the Company defers the stated amount of the separately priced service and recognizes the deferred revenue over the service term. Remaining Performance Obligations Remaining performance obligations represent the transaction price of contracts for which products have not been delivered or services have not been performed. As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.6 billion. The Company expects to recognize revenue on approximately three-quarters of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. The majority of our professional services are expected to be recognized over the next 12 months but this is contingent upon a number of factors, including customers’ needs and schedules. The Company has made three elections which affect the value of remaining performance obligations described above. We do not disclose remaining performance obligations for contracts where variable consideration is directly allocated based on usage or when the original expected duration is one year or less. Additionally, we do not disclose remaining performance obligations for contracts where we recognize revenue from the satisfaction of the performance obligation in accordance with the ‘right to invoice’ practical expedient. Warranty and Sales Returns Provisions for product warranties and sales returns and allowances are recorded in the period in which the Company becomes obligated to honor the related right, which generally is the period in which the related product revenue is recognized. The Company accrues warranty reserves based upon historical factors such as labor rates, average repair time, travel time, number of service calls per machine and cost of replacement parts. When a sale is consummated, a warranty reserve is recorded based upon the estimated cost to provide the service over the warranty period. The Company accrues sales returns and allowances using percentages of revenue to reflect the Company’s historical average of sales return claims. Research and Development Costs Research and development costs primarily include payroll and benefit-related costs, contractor fees, facilities costs, infrastructure costs, and administrative expenses directly related to research and development support and are expensed as incurred, except certain software development costs are capitalized after technological feasibility of the software is established. Advertising Advertising costs are recognized in selling, general and administrative expenses when incurred. Stock-based Compensation Stock-based compensation represents the costs related to share-based awards granted to employees and non-employee directors. The Company’s outstanding stock-based compensation awards are classified as equity. The Company measures stock-based compensation cost at the grant date, based on the estimated fair value of the award and recognizes the cost over the requisite service period. Forfeitures are recognized as they occur. See Note 9, “Stock Compensation Plans”, for further information on the Company’s stock-based compensation plans. Income Taxes Income tax expense is provided based on income before income taxes. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. These deferred taxes are determined based on the enacted tax rates expected to apply in the periods in which the deferred assets or liabilities are expected to be settled or realized. The Company records valuation allowances related to its deferred income tax assets when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being sustained upon examination by authorities. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law and until such time that the related tax benefits are recognized. Cash, Cash Equivalents, and Restricted Cash All short-term, highly liquid investments having original maturities of three months or less, including time deposits, are considered to be cash equivalents. As of December 31, 2023, 2022 and 2021, the Company has restricted cash on deposit with a bank as collateral for letters of credit as well as cash included in settlement processing assets. The reconciliation of cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows is as follows: In millions Balance Sheet Location December 31, 2023 December 31, 2022 December 31, 2021 Cash and cash equivalents Cash and cash equivalents $ 262 $ 221 $ 221 Short term restricted cash Restricted cash — 1 — Long term restricted cash Other assets 2 — 1 Funds held for client Restricted cash — — 48 Cash included in settlement processing assets Restricted cash 21 16 16 Total cash, cash equivalents and restricted cash $ 285 $ 238 $ 286 Cash, cash equivalents and restricted cash of discontinued operations — 502 463 Total cash, cash equivalents and restricted cash $ 285 $ 740 $ 749 Supplemental cash flow information Interest paid in cash was $365 million, $268 million, and $215 million for fiscal years 2023, 2022, and 2021, respectively. Income taxes paid in cash were $92 million , $56 million and $42 million for fiscal years 2023, 2022, and 2021, respectively. Supplemental disclosures of noncash investing and financing activities During the twelve months ended December 31, 2022, we issued shares of the Company’s common stock and assumed unvested outstanding option awards in the acquisition of Moon Inc., dba LibertyX, for total non-cash consideration of $68 million. In connection with the acquisition, we also assumed debt of $2 million. Refer to Note 2, “Discontinued Operations”, for additional information on the LibertyX acquisition. Accounts Receivable, net Accounts receivable, net includes amounts billed and currently due from customers as well as amounts unbilled that typically result from sales under contracts where revenue recognized exceeds the amount billed to the customer and where the Company has an unconditional right to consideration. The amounts due are stated at their net estimated realizable value. The components of accounts receivable are summarized as follows: In millions December 31, 2023 December 31, 2022 Accounts receivable Trade $ 372 $ 505 Other 141 66 Accounts receivable, gross 513 571 Less: allowance for credit losses (32) (21) Total accounts receivable, net $ 481 $ 550 Allowance for Credit Losses on Accounts Receivable Allowances for credit losses on accounts receivable are recognized when reasonable and supportable forecasts affect the expected collectability. This requires us to make our best estimate of the current expected losses inherent in our accounts receivable at each balance sheet date. These estimates require consideration of historical loss experience, adjusted for current conditions, forward looking indicators, trends in customer payment frequency and judgments about the probable effects of relevant observable data, including present and future economic conditions and the financial health of specific customers and market sectors. This policy is applied consistently among all of our operating segments. We continue to evaluate our reserves in light of the age and quality of our outstanding accounts receivable and risks to specific industries or countries and adjust the reserves accordingly. Our allowance for credit losses as of December 31, 2023 and December 31, 2022 was $32 million and $21 million, respectively. For the year ended December 31, 2023, our allowance for credit losses charged to expense was $26 million. The Company recorded $15 million of write-offs against the reserve for the year ended December 31, 2023. For the year ending, December 31, 2022 our allowance for credit losses charged to expense was $15 million and the Company recorded $13 million of write-offs against the reserve. Inventories Inventories are stated at the lower of cost or net realizable value, using the average cost method. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. Service parts are included in inventories and include reworkable and non-reworkable service parts. The Company regularly reviews inventory quantities on hand, future purchase commitments with suppliers and the estimated utility of inventory. If the review indicates a reduction in utility below carrying value, inventory is reduced to a new cost basis. Excess and obsolete write-offs are established based on forecasted usage, orders, technological obsolescence and inventory aging. Contract Assets and Liabilities Contract assets include unbilled amounts where the right to payment is not solely subject to the passage of time. Amounts may not exceed their net realizable value. Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. If the net position is a contract asset, the current portion is included in Prepaid and other current assets and the non-current portion is included in Other assets in the Consolidated Balance Sheet. If the net position is a contract liability, the current portion is included in Contract liabilities and the non-current portion is included in Other liabilities in the Consolidated Balance Sheet. As of December 31, 2023 and 2022, no contracts were in a net asset position. The following table presents the net contract asset and contract liability balances: In millions Location in the Consolidated Balance Sheet December 31, 2023 December 31, 2022 Current portion of contract liabilities Contract liabilities $ 197 $ 191 Non-current portion of contract liabilities Other liabilities $ 19 $ 18 During the twelve months ended December 31, 2023, 2022, and 2021 the Company recognized $138 million, $152 million, and $176 million, respectively, in revenue that was included in contract liabilities as of December 31, 2022, 2021, and 2020, respectively. Deferred Commissions Our incremental costs of obtaining a contract, which consist of certain sales commissions, primarily for our SaaS revenue, are deferred and amortized on a straight-line basis over the period of expected benefit. We determined the period of expected benefit by taking into consideration customer contracts, the estimated life of the customer relationship, including renewals when the renewal commission is not commensurate with the initial commission, the expected life of the underlying technology and other factors. We classify deferred commissions as current or non-current based on the timing of when we expect to recognize the expense. The current and non-current portions of deferred commissions are included in Prepaid and other current assets and Other assets, respectively, in the Consolidated Balance Sheets. Amortization of deferred commissions is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Set-up Fees and Cost |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 2. DISCONTINUED OPERATIONS Spin-Off of NCR Atleos On October 16, 2023, the Company completed the Spin-Off of NCR Atleos into an independent publicly traded company. Refer to Note 1, “Basis of Presentation and Significant Accounting Policies” for additional information regarding the Spin-Off. The historical results of NCR Atleos have been presented as discontinued operations. The Company’s presentation of discontinued operations excludes general corporate overhead costs that did not meet the requirements to be presented as discontinued operation. The presentation of discontinued operations below excludes certain countries which are expected to transfer to NCR Atleos during 2024. The results of operations for these countries will be presented as part of discontinued operations as of the date of their separation. As of March 2024, three countries have transferred to NCR Atleos. The following table presents the major categories of income (loss) from discontinued operations related to the Spin-Off of NCR Atleos: For the year ended December 31 In millions 2023 (1) 2022 2021 Product revenue $ 784 1,077 1,017 Service revenue 2,464 2,974 2,447 Total revenue 3,248 4,051 3,464 Cost of products 633 946 818 Cost of services 1,715 2,225 1,678 Selling, general and administrative expenses 537 457 447 Research and development expenses 52 70 73 Total operating expenses 2,937 3,698 3,016 Income from discontinued operations 311 353 448 Interest expense (6) — — Other income (expense), net (23) (11) 102 Income (loss) from discontinued operations before income taxes 282 342 550 Income tax expense (benefit) 69 76 115 Net income (loss) from discontinued operations 213 266 435 Net income (loss) attributable to noncontrolling interests — (1) 1 Net income (loss) from discontinued operations related to NCR Atleos 213 267 434 (1) Represents operations of NCR Atleos through October 16, 2023, versus the full year for 2022 and 2021. The following table represents the major classes of assets and liabilities of discontinued operations: In millions December 31, 2022 Assets Current assets Cash and cash equivalents $ 284 Accounts receivable, net of allowances 533 Inventories 415 Restricted cash 211 Prepaid and other current assets 247 Total current assets 1,690 Property, plant and equipment, net 436 Goodwill * 2,476 Intangibles, net 729 Operating lease assets 99 Prepaid pension cost 177 Deferred income taxes 269 Other assets 152 Noncurrent assets 4,338 Total assets of discontinued operations $ 6,028 Liabilities and stockholder's equity Current liabilities Short-term borrowings 3 Accounts payable 348 Payroll and benefits liabilities 120 Contract liabilities 346 Settlement liabilities 212 Other current liabilities 324 Total current liabilities 1,353 Long-term debt 9 Pension and indemnity plan liabilities 457 Postretirement and postemployment benefits liabilities 53 Income tax accruals 39 Operating lease liabilities 67 Other liabilities 139 Noncurrent liabilities 764 Total liabilities of discontinued operations $ 2,117 * Goodwill allocated to discontinued operations represents the amount of goodwill attributable to NCR Atleos which was determined on a relative fair value basis. The total net impact to stockholder’s equity as a result of the separation was a reduction of $1,237 million, which has been reflected as a reduction of $1,056 million, $182 million and $1 million to retained earnings, accumulated other comprehensive income and noncontrolling interest, respectively, in the Consolidated Statement of Equity as of December 31, 2023. The following table presents selected financial information related to cash flows from discontinued operations: For the year ended December 31 In millions 2023 * 2022 2021 Net cash provided by/(used in) operating activities $ 283 $ 243 $ 803 Net cash provided by/(used in) investing activities (71) (123) (1,789) Net cash provided by/(used in) financing activities — 10 (3) * Represents Atleos operations from January 1, 2023 through October 16, 2023, versus a full year of NCR Atleos operations in 2022 and 2021. The following transactions have been included as part of discontinued operations for all of the periods presented. Acquisition of LibertyX (2022) On January 5, 2022, the Company completed its acquisition of Moon Inc., dba LibertyX, a leading cryptocurrency software provider, with the goal of enabling the Company to provide a complete digital currency solution, including the ability to buy and sell cryptocurrency, conduct cross-border remittance, and accept digital currency payments across digital and physical channels. The Company purchased all outstanding shares of LibertyX for $1 million cash consideration and approximately 1.4 million shares of the Company’s common stock at a price of $42.13 per share. The Company also converted approximately 0.2 million outstanding unvested LibertyX option awards into the Company’s awards pursuant to an exchange ratio as defined in the acquisition agreement. LibertyX stock option awards were converted into the Company’s stock option awards with an exercise price per share for option awards equal to the exercise price per share of such stock option award immediately prior to the completion of the acquisition divided by the exchange ratio, and vested immediately. The value of the option awards was deemed attributable to services already rendered and was included as a portion of the purchase price. Total purchase consideration for the LibertyX acquisition was approximately $69 million. As a result of the acquisition, LibertyX became a wholly-owned subsidiary of the Company. Recording of Assets Acquired and Liabilities Assumed The fair value of consideration transferred was allocated to the identifiable assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition as set forth below. The amounts for intangible assets are based on third-party valuations performed. The final allocation of the purchase price was as follows: In millions Fair Value Cash acquired $ 2 Tangible assets acquired 3 Acquired intangible assets other than goodwill 38 Acquired goodwill 40 Deferred tax liabilities (10) Liabilities assumed (4) Total purchase consideration $ 69 Goodwill represents the future economic benefits arising from other assets acquired that could not be individually separately recognized. The goodwill arising from the acquisition consists of revenue and cost synergies expected from combining the operations of the Company and LibertyX and is not deductible for tax purposes. The goodwill arising from the LibertyX acquisition is included in Noncurrent assets of discontinued operations within the Consolidated Balance Sheets. The following table sets forth the components of the intangible assets acquired as of the acquisition date: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 5 10 Technology - Software 30 13 Non-compete 1 1 Tradenames 2 2 Total acquired intangible assets $ 38 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. The operating results of LibertyX are part of Income (loss) from discontinued operations, net of tax within the Company’s results since the closing date of the acquisition. Other Acquisitions (2022) On July 1, 2022, the Company completed its acquisition of the India ATM business of FIS Payment Solutions & Services Private Limited for consideration of $19 million, of which $12 million has been paid in cash as of December 31, 2023. The India ATM business acquisition did not have a material impact on the consolidated financial statements. Acquisition of Cardtronics plc On January 25, 2021, the Company entered into a definitive agreement to acquire all outstanding shares of Cardtronics for $39.00 per share (the “Cardtronics Transaction”). The legal closing of the Cardtronics Transaction occurred on June 21, 2021. Cardtronics was the world’s largest non-bank ATM operator and service provider, enabling cash transactions by converting digital currency into physical cash at over 285,000 ATMs across 10 countries in North America, Europe, Asia-Pacific, and Africa. The Cardtronics Transaction is expected to accelerate our NCR-as-a-service strategy and enhance our ability to provide technology solutions and capabilities that run our customers’ businesses. Purchase Price Consideration The purchase consideration transferred consisted of the following: In millions Purchase Consideration Cash paid to common stockholders and holders of certain restricted stock and stock option awards $ 1,775 Debt repaid by the Company on behalf of Cardtronics 809 Transaction costs paid by the Company on behalf of Cardtronics 57 Fair value of converted Cardtronics awards attributable to pre-combination services 19 Settlement of pre-existing relationships 14 Total purchase consideration $ 2,674 Other than certain outstanding restricted stock and stock option awards issued to directors which were paid out in cash at closing, the Company converted outstanding unvested Cardtronics awards into the Company’s awards pursuant to an exchange ratio as defined in the acquisition agreement. Each restricted stock award that was outstanding, whether performance-based or time-based, was converted into time-based awards, and will continue to be governed by the same vesting terms as the original Cardtronics awards. Cardtronics stock option awards were converted into the Company’s stock option awards with an exercise price per share for option awards equal to the exercise price per share of such stock option award immediately prior to the completion of the acquisition divided by the exchange ratio, and will continue to be governed generally by the same terms and conditions as were applicable prior to the acquisition. The amounts attributable to services already rendered were included as an adjustment to the purchase price and the amounts attributable to future services will be expensed over the remaining vesting period, net of estimated forfeitures. The fair value of options that the Company assumed in connection with the acquisition of Cardtronics were estimated using the Black-Scholes model. Recording of Assets Acquired and Liabilities Assumed The fair value of consideration transferred to acquire Cardtronics was allocated to the identifiable assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition as set forth below. The allocation of the purchase price was finalized in June 2022. The final allocation of the purchase price for Cardtronics was as follows: In millions Fair Value Assets acquired Cash and restricted cash $ 291 Trade accounts receivable 85 Prepaid expenses, other current assets and other assets 193 Property, plant and equipment 362 Acquisition-related intangible assets 864 Total assets acquired $ 1,795 Liabilities assumed 733 Net assets acquired, excluding goodwill 1,062 Total purchase consideration 2,674 Goodwill $ 1,612 We recorded an allocation of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of June 21, 2021. In determining the fair value, the Company utilized various methods of the income, cost, and market approaches depending on the asset or liability being fair valued. The estimation of fair value required significant judgment related to future net cash flows (including revenue growth rate, EBITDA margins, and customer attrition), discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables, and other factors. Inputs were generally determined by taking into account historical data (supplemented by current and anticipated market conditions) and growth rates. Direct customer relationships and technology - software were valued using an excess earnings method. Significant assumptions used in the discounted cash flow analysis for (i) direct customer relationships were the revenue growth rate, customer attrition rate, and discount rate, and (ii) technology - software were the revenue growth rate, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins, and discount rate. Goodwill represents the future economic benefits arising from other assets acquired that could not be separately recognized. The goodwill arising from the acquisition consists of revenue and cost synergies expected from combining the operations of the Company and Cardtronics. Approximately $139 million of the goodwill recognized in connection with the acquisition was deductible for tax purposes. The goodwill arising from the acquisition is included within Noncurrent assets of discontinued operations within the Consolidated Balance Sheets. The following table sets forth the components of the intangible assets acquired as of the acquisition date: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 373 15 Technology - Software 441 8 Non-compete 1 1 Tradenames 49 4 Total acquired intangible assets $ 864 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. In connection with the closing of the acquisition, the Company incurred transaction costs of $46 million for the year ended December 31, 2021, which has been included within Income (loss) from discontinued operations, net of tax in the Consolidated Statement of Operations. Supplemental Information Conflict in Eastern Europe The war in Eastern Europe and related sanctions imposed on Russia and related actors by the United States and other jurisdictions required us to commence the orderly wind down of our operations in Russia beginning in the first quarter of 2022. As of December 31, 2022, we ceased operations in Russia and our only subsidiary in Russia was formally dissolved as of December 20, 2023. We recognized a pre-tax net loss of $22 million for the year ended December 31, 2022 related to these actions which is included in Income (loss) from discontinued operations, net of tax within the Company’s results. NCR Voyix has no operations in Russia. Environmental Matters The costs and insurance recoveries relating to certain environmental obligations associated with discontinued operations, including those relating to the Fox River, Kalamazoo River and Ebina matters, are presented in Income (loss) from discontinued operations, net of tax, in the Consolidated Statements of Operations. Income (loss) from discontinued operations, net of tax, related to environmental matters was a loss of $50 million, $4 million and zero, for the years ended December 31, 2023, 2022 and 2021, respectively. Net cash used in operating activities of discontinued operations related to environmental obligations was $19 million, $20 million and $68 million for fiscal years 2023, 2022 and 2021, respectively. Refer to Note 11, “Commitments and Contingencies” for further information. |
BUSINESS COMBINATIONS AND DIVES
BUSINESS COMBINATIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS AND DIVESTITURES | 3. BUSINESS COMBINATIONS AND DIVESTITURES Acquisition of Freshop, Terafina, & Dumac In the first quarter of 2021, the Company completed acquisitions for total cash consideration of $126 million, as outlined below: • On January 6, 2021, the Company completed its acquisition of Freshop E-Commerce Solution, Inc. (“Freshop”), a leading provider of grocery e-commerce. The Freshop acquisition further expands the Company’s software and services-led offerings to our retail platform and creates more value for our customers and new capabilities for the Company to run the store. As a result of the acquisition, Freshop became a wholly owned subsidiary of the Company. • On February 5, 2021, the Company completed its acquisition of Terafina, Inc. (“Terafina”), a leading solution provider for customer account opening and onboarding across digital, branch and call center channels. The Terafina acquisition further expands the Company’s sales and marketing capabilities in its industry-leading digital-first-banking platform to drive revenue growth across consumer and business market segments. As a result of the acquisition, Terafina became a wholly owned subsidiary of the Company. • On March 22, 2021 the Company completed its acquisition of certain assets and liabilities of Dumac Business Systems Inc. ( “Dumac” ), a leading POS solution provider for the quick service, table service, and convenient store markets. The Dumac asset acquisition further expands the Company ’s software and services-led offerings, creating more value for our customers and driving revenue growth across the Restaurants segment. Recording of Assets Acquired and Liabilities Assumed The fair value of consideration transferred was allocated to the identifiable assets acquired and liabilities assumed based upon their estimated fair values as of the date of the respective acquisitions as set forth below. The allocation of the purchase prices is as follows: In millions Fair Value Cash acquired $ 2 Tangible assets acquired 7 Acquired intangible assets other than goodwill 52 Acquired goodwill 81 Deferred tax liabilities (3) Liabilities assumed (13) Total purchase consideration $ 126 Goodwill represents the future economic benefits arising from other assets acquired that could not be individually separately recognized. The goodwill arising from the acquisitions consists of revenue and cost synergies expected from combining the operations of the Company and the respective acquisitions. It is expected that $9 million of the goodwill recognized in connection with the acquisitions will be deductible for tax purposes. The goodwill arising from the Freshop acquisition has been allocated to our Retail segment. The goodwill arising from the Terafina acquisition has been allocated to our Digital Banking segment. The goodwill arising from the Dumac acquisition has been allocated to our Restaurants segment. Refer to Note 4, “Goodwill and Purchased Intangible Assets”, for the carrying amounts of goodwill by segment. The following table sets forth the components of the intangible assets acquired as of the acquisition dates: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 11 10 Technology - Software 36 8 Non-compete 1 1 Tradenames 4 9 Total acquired intangible assets $ 52 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. The operating results of Freshop, Terafina, and Dumac have been included within the Company’s results as of the closing dates of the respective acquisitions. Supplemental pro forma information and actual revenue and earnings since the acquisition dates have not been provided as the acquisitions did not have a material impact on the Company’s Consolidated Statements of Operations. Divestitures On October 19, 2023, the Company divested of a portion of the assets that were deemed non-strategic to its payments business, consisting primarily of merchant contracts, our front end authorization platform and certain relevant intellectual property for cash proceeds of $82 million. |
GOODWILL AND PURCHASED INTANGIB
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 4. GOODWILL AND PURCHASED INTANGIBLE ASSETS Goodwill by Segment The carrying amounts of goodwill by segment as of December 31, 2023 and 2022 are included in the tables below. Foreign currency fluctuations are included within other adjustments . Goodwill and other intangible assets related to the NCR Atleos business have been reclassified as Noncurrent assets of discontinued operations for prior year periods as discussed in Note 2, “Discontinued Operations”. December 31, 2022 December 31, 2023 In millions Goodwill Accumulated Impairment Total Additions Impairment Other Goodwill Accumulated Impairment Total Retail $ 1,077 $ (34) $ 1,043 $ — $ — $ 4 $ 1,081 $ (34) $ 1,047 Restaurants 495 (23) 472 — — — 495 (23) 472 Digital Banking 521 — 521 — — — 521 — 521 Other (1) 28 — 28 — — (28) — — — Total goodwill $ 2,121 $ (57) $ 2,064 $ — $ — $ (24) $ 2,097 $ (57) $ 2,040 (1) Other segment relates to the divested business as noted in Note 3, “Business Combinations and Divestitures”. As discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”, management completed the annual goodwill impairment test during the fourth quarter of 2023 for all reporting units. In connection with the Spin-Off, goodwill was reassigned to the reporting units using a relative fair value allocation approach. The Company performed a quantitative impairment assessment for all reporting units using a weighted combination of both guideline public company and discounted cash flow valuation methods. This assessment included, but was not limited to, our consideration of macroeconomic conditions such as the conflict in Eastern Europe, foreign currency fluctuations, and significant cost inflation to the current year cash flows, the potential impacts to future cash flows, as well as industry and market conditions and financial performance, including forecasted revenue, earnings and capital expenditures of each reporting unit. Based on the assessments completed, it was determined that the fair value of all reporting units were in excess of the carrying value. However, if the actual results differ from our expectations for any of our reporting units, there is a possibility we would have to perform an interim impairment test in 2024, which could lead to an impairment of goodwill or other assets. The amount of goodwill allocated and distributed to NCR Atleos in connection with the Spin-Off was $2,474 million. Refer to Note 1, “Basis of Presentation and Significant Accounting Policies” for further details over the valuation models used and the significant assumptions and estimates utilized in the analysis performed. Identifiable Intangible Assets NCR Voyix’s purchased intangible assets, reported in Intangibles, net in the Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for the Company’s identifiable intangible assets were as set forth in the table below. Amortization December 31, 2023 December 31, 2022 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable intangible assets Reseller & customer relationships 1 - 20 $ 665 $ (438) $ 714 $ (405) Intellectual property 2 - 8 494 (433) 536 (433) Customer contracts 8 89 (89) 89 (89) Tradenames 1 - 10 79 (76) 78 (74) Total identifiable intangible assets $ 1,327 $ (1,036) $ 1,417 $ (1,001) Amortization expense related to identifiable intangible assets was $71 million, $71 million, and $76 million for the years ended December 31, 2023, 2022, 2021, respectively. The aggregate amortization expense (estimated) for identifiable intangible assets for the following periods is: For the years ended December 31 (estimated) In millions 2024 2025 2026 2027 2028 Amortization expense $ 57 $ 50 $ 47 $ 41 $ 29 |
SEGMENT INFORMATION AND CONCENT
SEGMENT INFORMATION AND CONCENTRATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND CONCENTRATION | 5. SEGMENT INFORMATION AND CONCENTRATIONS Subsequent to the Spin-Off, as described in Note 1, “Basis of Presentation and Significant Accounting Policies”, the Company manages and reports the following segments: • Retail - We offer software-led solutions to customers in the retail industry, leading with digital to connect retail operations end to end to integrate all aspects of a customer’s operations in indoor and outdoor settings from POS, to payments, inventory management, fraud and loss prevention applications, loyalty and consumer engagement. These solutions include retail-oriented technologies such as comprehensive API-point of sale retail software platforms and applications, hardware terminals, self-service kiosks including self-checkout (“SCO”), payment processing and merchant acquiring solutions, and bar-code scanners. • Restaurants - We offer technology solutions to customers in the restaurant industry, including table-service, quick-service and fast casual restaurants of all sizes, that are designed to improve operational efficiency, increase customer satisfaction, streamline order and transaction processing and reduce operating costs. Our solutions include POS hardware and software solutions, payment processing and merchant acquiring services, installation, maintenance, as well as managed and professional services. • Digital Banking - Our Digital Banking segment helps financial institutions implement their digital-first platform strategy by providing solutions for account opening, account management, transaction processing, imaging, and branch services to enable financial institutions to offer a compelling customer experience. Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to any of our three individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segment(s) and certain countries which are expected to transfer to NCR Atleos during 2024, as well as commercial agreements with NCR Atleos. These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker in assessing segment performance and in allocating the Company’s resources. Management evaluates the performance of the segments based on revenue and Adjusted EBITDA. Adjusted EBITDA is defined as GAAP net income (loss) from continuing operations attributable to NCR Voyix plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus stock-based compensation expense; plus other income (expense); plus pension mark-to-market adjustments and other special items, including amortization of acquisition-related intangibles, separation-related costs, cyber ransomware incident recovery costs net of insurance recoveries, fraudulent ACH disbursements costs, transformation and restructuring charges (which includes integration, severance and other exit and disposal costs), among others. The special items are considered non-operational or non-recurring in nature, so are excluded from the Adjusted EBITDA metric utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported GAAP net income (loss) from continuing operations attributable to the Company. Assets are not allocated to segments, and thus are not included in the assessment of segment performance. Consequently, we do not disclose total assets by reportable segment. The accounting policies used to determine the results of the operating segments are the same as those utilized for the consolidated financial statements as a whole. Intersegment sales and transfers are not material. The following table presents revenue and operating income by segment for the years ended December 31: In millions 2023 2022 2021 Revenue by Segment Retail $ 2,177 $ 2,182 $ 2,138 Restaurants 886 857 794 Digital Banking 579 547 521 Total Segment Revenue $ 3,642 $ 3,586 $ 3,453 Other 188 207 239 Total Revenue $ 3,830 $ 3,793 $ 3,692 Adjusted EBITDA by Segment Retail $ 411 $ 384 $ 427 Restaurants 197 160 150 Digital Banking 219 233 216 Total Segment Adjusted EBITDA 827 777 793 In millions 2023 2022 2021 Segment Adjusted EBITDA $ 827 $ 777 $ 793 Corporate and other income and expenses not allocated to segments 211 181 322 Pension mark-to-market adjustments 7 (41) (7) Transformation and restructuring costs (1) 39 96 53 Fraudulent ACH disbursements (2) 23 — — Acquisition-related amortization of intangibles 71 71 76 Acquisition-related costs (3) 1 2 3 Interest expense (4) 294 285 238 Interest income (13) (13) (8) Depreciation and amortization 252 237 220 Income taxes 204 72 70 Stock-based compensation expense 150 90 121 Separation costs (5) 99 — — Loss on disposal of businesses 12 — — Loss on debt extinguishment 46 — 42 Cyber ransomware incident recovery costs (6) 17 — — Net income (loss) from continuing operations attributable to NCR Voyix (GAAP) $ (586) $ (203) $ (337) (1) Represents integration, severance, and other exit and disposal costs, which are considered non-operational in nature. (2) Represents company identified fraudulent ACH disbursements from a company bank account. Additional details regarding this item are discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”. (3) Represents professional fees, retention bonuses, and other costs incurred related to acquisitions, which are considered non-operational in nature. (4) During the three months ended September 30, 2023, it was determined that the transactions underlying the unrealized gains on terminated interest rate swap and cap agreements reported in Accumulated other comprehensive income were probable of not occurring under ASC 815, Derivatives and Hedging . As such, $18 million of unrealized gains were recognized in Interest expense (5) Represents costs incurred as a result of the Spin-Off. Professional fees to effect the spin-off of NCR Atleos including separation management, organizational design, and legal fees have been classified within discontinued operations through October 16, 2023, the separation date. (6) Represents expenses to respond to, remediate and investigate the April 13, 2023 cyber ransomware incident net of insurance recoveries, which is considered a nonrecurring special item. Additional details regarding this cyber ransomware incident are discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”. The following table presents recurring revenue and all other products and services that is recognized at a point in time for the Company for the years ended December 31: In millions 2023 2022 2021 Recurring revenue (1) $ 2,195 $ 2,120 $ 2,069 All other products and services 1,635 1,673 1,623 Total revenue $ 3,830 $ 3,793 $ 3,692 (1) Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, interchange and network revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights. Revenue is attributed to the geographic area to which the product is delivered or in which the service is provided. The following table presents revenue by geographic area for the Company for the years ended December 31: In millions 2023 % 2022 % 2021 % Revenue by Geographic Area United States $ 2,540 67 % $ 2,560 67 % $ 2,367 65 % Americas (excluding United States) 281 7 % 254 7 % 226 6 % Europe, Middle East and Africa 653 17 % 594 16 % 643 17 % Asia Pacific 356 9 % 385 10 % 456 12 % Total revenue $ 3,830 100 % $ 3,793 100 % $ 3,692 100 % The following table presents property, plant and equipment by geographic area as of December 31: In millions 2023 2022 Property, plant and equipment, net United States $ 177 $ 187 Americas (excluding United States) 2 2 Europe, Middle East and Africa 29 32 Asia Pacific 4 6 Consolidated property, plant and equipment, net $ 212 $ 227 Concentrations One customer accounted for approximately 13% and 10% of our consolidated operating revenues during the years ended December 31, 2023 and 2022, respectively, and is included in our Retail segment. No customer accounted for more than 10% of our consolidated operating revenues during the year ended December 31, 2021. As of December 31, 2023, 2022, and 2021, the Company is not aware of any other significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on the Company’s operations. NCR Voyix does not have a concentration of available sources of labor, services, licenses or other rights that could, if suddenly eliminated, have a material adverse effect on its operations. A number of NCR Voyix’s products, systems and solutions rely primarily on specific suppliers for microprocessors and other component products, manufactured assemblies, operating systems, commercial software and other central components. The Company also utilizes contract manufacturers in order to complete manufacturing activities. There can be no assurances that any sudden impact to the availability or cost of these technologies or services would not have a material adverse effect on the Company’s operations. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | 6. DEBT OBLIGATIONS The following table summarizes the Company’s short-term borrowings and long-term debt: December 31, 2023 December 31, 2022 In millions, except percentages Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate Short-Term Borrowings Current portion of Senior Secured Credit Facility (1) $ 15 8.46% $ 100 6.54% Other (1) — 7.38% 1 7.05% Total short-term borrowings $ 15 $ 101 Long-Term Debt Senior Secured Credit Facility: Term loan facilities (1) $ 185 8.46% $ 1,778 6.69% Revolving credit facility (1) 98 9.07% 523 6.79% Senior Notes: 5.750% Senior Notes due 2027 — 500 5.000% Senior Notes due 2028 650 650 5.125% Senior Notes due 2029 1,200 1,200 6.125% Senior Notes due 2029 — 500 5.250% Senior Notes due 2030 450 450 Deferred financing fees (20) (49) Total long-term debt $ 2,563 $ 5,552 (1) Interest rates are weighted average interest rates as of December 31, 2023 and 2022. Senior Secured Credit Facilities On October 16, 2023, the Company entered into a new senior secured credit agreement, with certain subsidiaries of the Company party thereto as foreign borrowers, the lenders party thereto and Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”). This credit agreement provides for new senior secured credit facilities in an aggregate principal amount of $700 million, which are comprised of (i) a five-year multicurrency revolving credit facility in the aggregate principal amount of $500 million (including (a) a letter of credit sub-facility in an aggregate principal amount of up to $51 million and (b) a sub-facility in an aggregate principal amount of up to $200 million for borrowings and letters of credit in certain agreed foreign currencies) (the “Revolving Credit Facility,” and the loans thereunder, the “Revolving Loans”) and (ii) a five-year term loan “A” facility in the aggregate principal amount of $200 million (the “Term Loan A Facility,” and the loans thereunder, the “Term A Loans” and, the Term Loan A Facility, together with the Revolving Credit Facility, the “Senior Secured Credit Facilities”). The Term A Loans and the Revolving Loans (collectively, the “Loans”) bear interest based on SOFR (or an alternative reference rate for amounts denominated in a currency other than Dollars), or, at the Company’s option, in the case of amounts denominated in Dollars, at a base reference rate equal to the highest of (a) the federal funds rate plus 0.50%, (b) the rate of interest last quoted by the Administrative Agent as its “prime rate” and (c) the one-month SOFR rate plus 1.00% (the “Base Rate”), plus, as applicable, a margin ranging from 2.25% to 3.25% per annum for SOFR-based Loans and ranging from 1.25% to 2.25% per annum for Base Rate-based Loans, in each case, depending on the Company’s consolidated leverage ratio. The outstanding principal balance of the Term Loan A Facility is required to be repaid in quarterly installments beginning with the first full fiscal quarter after the Closing Date in an amount equal to (i) 1.875% of the original principal amount of the Term A Loans during the first three years and (ii) 2.50% of the original principal amount of the Term A Loans during final two years. Any remaining outstanding balance will be due at maturity on the fifth anniversary of the Closing Date. The Revolving Credit Facility is not subject to amortization and will mature on the fifth anniversary of the Closing Date. The obligations under the Senior Secured Credit Facilities are guaranteed by certain of the Company’s material subsidiaries (the “Guarantors”). The obligations under the Senior Secured Credit Facilities and the above described guarantee are secured by a first priority lien and security interest in certain equity interests owned by the Company and the Guarantors in certain of their respective domestic and foreign subsidiaries, and a first priority lien and security interest in substantially all of the assets of the Company and the Guarantors, subject to certain exclusions. The Senior Secured Credit Facilities contains customary representations and warranties, affirmative covenants, and negative covenants. The negative covenants limit the Company’s and its subsidiaries’ ability to, among other things, incur indebtedness, create liens on the Company’s or its subsidiaries’ assets, engage in fundamental changes, make investments, sell or otherwise dispose of assets, engage in sale-leaseback transactions, make restricted payments, repay subordinated indebtedness, engage in certain transactions with affiliates and enter into agreements restricting the ability of the Company’s subsidiaries to make distributions to the Company or incur liens on their assets. The Senior Secured Credit Facilities also contains a financial covenant that does not permit the Company to allow its consolidated leverage ratio to exceed (i) in the case of any fiscal quarter ending on or prior to September 30, 2024, 4.75 to 1.00, (ii) in the case of any fiscal quarter ending on or following September 30, 2024 and prior to September 30, 2025, 4.50 to 1.00 and (iii) in the case of any fiscal quarter ending on or following September 30, 2025, 4.25 to 1.00, in each case subject, to (x) increases of 0.25 in connection with the consummation of any material acquisition and applicable to the fiscal quarter in which such acquisition is consummated and the three consecutive fiscal quarters thereafter, and (y) a maximum cap of 5.00 to 1.00. The Senior Secured Credit Facilities also includes provisions for events of default, which are customary for similar financings. Upon the occurrence of an event of default, the lenders may, among other things, terminate the loan commitments, accelerate all loans and require cash collateral deposits in respect of outstanding letters of credit. If the Company is unable to pay or repay the amounts due, the lenders could, among other things, proceed against the collateral granted to them to secure such indebtedness. Prior Senior Secured Credit Facility On the Closing Date, the Company repaid all accrued and unpaid loans and other amounts due under the Company’s prior senior secured credit facility, originally dated as of August 22, 2011 (as amended, amended and restated, supplemented or modified), among the Company, as borrower, the lenders and issuing banks party thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent, and terminated all commitments and obligations thereunder. The Company’s prior senior secured credit facilities provided for a senior secured term loan A facility in an initial aggregate principal amount of $1,305 million , a senior secured term loan B facility in an initial aggregate principal amount of $750 million , and a revolving credit facility with commitments in an aggregate principal amount of $1,300 million . Atleos Senior Secured Credit Facility On September 27, 2023, Atleos entered into a credit agreement (the “Atleos Senior Secured Credit Facility”) with NCR Atleos Escrow Corporation (the “Escrow Issuer”), a wholly-owned subsidiary of Atleos, subsidiaries of Atleos that may become party thereto as foreign borrowers (if any), the lenders party thereto and Bank of America, N.A., as administrative agent. The Atleos Senior Secured Credit Facility provides for new senior secured credit facilities in an aggregate principal amount of $2,085 million, which are comprised of (i) a five-year multicurrency revolving credit facility in the aggregate principal amount of $500 million (including (a) a letters of credit sub-facility in an aggregate face amount of up to $75 million and (b) a sub-facility in an aggregate principal amount of up to $200 million for borrowings and Letters of Credit in certain agreed foreign currencies) (the “Atleos Revolving Credit Facility”, and the loans thereunder, the “Atleos Revolving Loans”), (ii) a five-year term loan “A” facility in the aggregate principal amount of $835 million (the “Atleos Term Loan A Facility”, and the loans thereunder, the “Atleos Term A Loans”) and (iii) a five and a half-year term loan “B” facility in the aggregate principal amount of $750 million. On October 16, 2023, the Escrow Issuer merged with and into Atleos (the “Escrow Merger”) and Atleos assumed the obligations of the Escrow Issuer under the Atleos Senior Secured Credit Facility. As of the consummation of the spin-off on October 16, 2023, the Atleos Senior Secured Credit Facility was no longer an obligation of the Company. Senior Unsecured Notes On August 21, 2019, the Company issued $500 million aggregate principal amount of 5.750% senior unsecured notes due in 2027 (the “5.750% Notes”) and $500 million aggregate principal amount of 6.125% senior unsecured notes due in 2029 (the “6.125% Notes”). On October 17, 2023, the Company redeemed the 5.750% Notes in full at a redemption premium of 101.438% of the aggregate principal amount thereof and the 6.125% Notes in full at a redemption premium of 103.074% of the aggregate principal amount thereof. As part of the debt extinguishment, the Company wrote-off deferred financing fees of $8 million and a cash redemption premium of $24 million. On August 20, 2020, the Company issued $650 million aggregate principal amount of 5.000% senior unsecured notes due in 2028 (the “5.000% Notes”) and $450 million aggregate principal amount of 5.250% senior unsecured notes due in 2030 (the “5.250% Notes”). Interest is payable on the 5.000% and 5.250% Notes semi-annually in arrears at interest rates of 5.000% and 5.250%, respectively, on April 1 and October 1. The 5.000% and 5.250% Notes were sold at 100% of the principal amount and mature on October 1, 2028 and October 1, 2030, respectively. At any time and from time to time, prior to October 1, 2023, the Company may redeem up to a maximum of 40% of the original aggregate principal amount of either the 5.000% Notes or 5.250% Notes with the proceeds of one or more equity offerings, at a redemption price equal to 105.000%, with respect to the 5.000% Notes, and 105.250%, with respect to the 5.250% Notes, of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided that: (i) at least 55% of the original aggregate principal amount of the 5.000% Notes or 5.250% Notes remains outstanding; and (ii) such redemption occurs within 180 days of the completion of such equity offering. Prior to October 1, 2023, with respect to the 5.000% Notes, or October 1, 2025, with respect to the 5.250% Notes, the Company may redeem some or all of such series of Notes by paying a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus the Applicable Premium, as defined in the indenture governing the applicable series of notes, plus accrued and unpaid interest to, but excluding, the redemption date (subject to the right of holders of record of the Notes on the relevant record date to receive interest due on the relevant interest payment date). The Company has the option to redeem the 5.000% Notes, in whole or in part, at any time on or after October 1, 2023, at a redemption price of 102.500%, 101.250%, and 100% during the 12-month periods commencing on October 1, 2023, 2024 and 2025 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. The Company has the option to redeem the 5.250% Notes, in whole or in part, at any time on or after October 1, 2025, at a redemption price of 102.625%, 101.750%, 100.875%, and 100% during the 12-month periods commencing on October 1, 2025, 2026, 2027 and 2028 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. On April 6, 2021, the Company issued $1.2 billion aggregate principal amount of 5.125% senior notes due 2029 (the “ 5.125% Notes”). Interest is payable on the 5.125% Notes semi-annually in arrears at annual rates of 5.125% on April 15 and October 15 of each year. The 5.125% Notes will mature on April 15, 2029. At any time and from time to time, prior to April 15, 2024, the Company may redeem up to a maximum of 40% of the original aggregate principal amount of the 5.125% Notes with the proceeds of one or more equity offerings, at a redemption price equal to 105.125% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided that: (i) at least 55% of the original aggregate principal amount of the applicable 5.125% Notes remains outstanding; and (ii) such redemption occurs within 180 days of the completion of such equity offering. Prior to April 15, 2024, the Company may redeem some or all of the 5.125% Notes by paying a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus the Applicable Premium, as defined in the indenture governing the 5.125% Notes, and accrued and unpaid interest to, but excluding, the applicable redemption date (subject to the right of holders of record of the applicable 5.125% Notes on the relevant record date to receive interest due on the relevant interest payment date). On or after April 15 of the relevant year listed below, the Company may redeem some or all of the 5.125% Notes at the prices listed below, plus accrued and unpaid interest, if any, to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date): 2024 at a redemption price of 102.563%, 2025 at a redemption price of 101.281% and 2026 and thereafter at a redemption price of 100%. The senior unsecured notes are the Company’s senior unsecured obligations and are jointly and severally unconditionally guaranteed on a senior unsecured basis by the Company’s domestic material subsidiaries, subject to certain limitations, that guarantee the Company’s Senior Secured Credit Facilities pursuant to supplemental indentures governing each applicable series of senior unsecured notes. The indentures governing the senior unsecured notes contain customary events of default, including, among other things, payment default, exchange default, failure to provide certain notices thereunder and certain provisions related to bankruptcy events. The indentures governing the senior unsecured notes also contains customary high yield affirmative and negative covenants, including negative covenants that, among other things, limit the Company and its restricted subsidiaries’ ability to incur additional indebtedness, create liens on, sell or otherwise dispose of assets, engage in certain fundamental corporate changes or changes to lines of business activities, make certain investments or material acquisitions, engage in sale-leaseback or hedging transactions, repurchase common stock, pay dividends or make similar distributions on capital stock, repay certain indebtedness, engage in certain affiliate transactions and enter into agreements that restrict their ability to create liens, pay dividends or make loan repayments. If the senior unsecured notes are assigned an “investment grade” rating by Moody’s or S&P and no default has occurred or is continuing, certain covenants will be terminated. On September 27, 2023, the Escrow Issuer issued $1,350 million aggregate principal amount of 9.500% senior secured notes due in 2029 (the “Atleos Notes”). On October 16, 2023, upon consummation of the Escrow Merger, Atleos assumed the obligations of the Escrow Issuer under the indenture governing the Atleos Notes. As of the consummation of the Spin-Off on October 16, 2023, the Atleos Notes were no longer obligations of the Company or any of its subsidiaries. Other Debt: In connection with the completion of the Spin-Off, the Company was released from its obligations under the master loan agreement it had in place with Banc of America Leasing & Capital, LLC. All of the Company’s rights and obligations under the master loan agreement were assumed by NCR Atleos and a subsidiary of NCR Atleos. Prior to such release and assignment, the master loan agreement provided the Company with a source of funding for specified ATM-as-a-Service (“ATMaaS”) contracts and the ATM equipment related to such contracts. Included within discontinued operations as of December 31, 2022, total debt outstanding under the financing program was $12 million with a weighted average interest rate of 7.21% and a weighted average term of 3.7 years . Debt Maturities Maturities of debt outstanding, in principal amounts, at December 31, 2023 are summarized below: For the years ended December 31 In millions Total 2024 2025 2026 2027 2028 Thereafter Debt maturities $ 2,578 $ 15 $ 16 $ 15 $ 19 $ 786 $ 1,727 Fair Value of Debt The Company utilized Level 2 inputs, as defined in the fair value hierarchy, to measure the fair value of the long-term debt, which, as of December 31, 2023 and 2022 was $2.47 billion and $5.25 billion, respectively. Management ’ s fair value estimates were based on quoted prices for recent trades of the Company’s long-term debt, quoted prices for similar instruments, and inquiries with certain investment communities. |
TRADE RECEIVABLES FACILITY
TRADE RECEIVABLES FACILITY | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
TRADE RECEIVABLES FACILITY | 7. TRADE RECEIVABLES FACILITY The Company maintains a trade receivables facility (the “T/R Facility”) pursuant to which the Company’s wholly-owned, bankruptcy-remote subsidiary NCR Receivables LLC (the “U.S. SPE”) may sell certain trade receivables acquired by it from the Company and other affiliates of the Company to PNC Bank, National Association, MUFG Bank, Ltd. and any other unaffiliated purchasers from time to time party to the T/R Facility (the “Purchasers”). The T/R Facility was most recently amended on October 16, 2023 in connection with the Spin-Off in order to, among other things, (i) extend the scheduled maturity by two years, (ii) provide for the repurchase by each of Cardtronics USA, Inc., ATM National, LLC and Cardtronics Canada Holdings Inc. (the “Released Originators”) of its outstanding receivables then subject to the T/R Facility, (iii) assign to the Company and NCR Canada Corp., as applicable, all obligations of the Released Originators under the T/R Facility and release each such Released Originator from all of its obligations thereunder, and (iv) adjust the factors used to determine the availability of capital for investment in the pool of receivables by Purchasers. Under the T/R Facility, the Company and one of its Canadian operating subsidiaries continuously sell their trade receivables as they are originated to the U.S. SPE or a Canadian bankruptcy-remote special purpose entity (collectively with the U.S. SPE, the “SPEs”), as applicable. None of the assets or credit of the SPEs is available to satisfy the debts and obligations owed to the creditors of the Company or any other person until the obligations of the SPEs under the T/R Facility have been satisfied. In addition, the obligations of the SPEs under T/R Facility are solely the obligations of the SPEs and not of any other person, and such obligations are generally payable out of collections on the trade receivables owned by such SPEs. The Company controls and therefore consolidates the SPEs in its consolidated financial statements. As cash is collected on the trade receivables sold to the Purchasers, the U.S. SPE has the ability to continuously transfer ownership and control of new qualifying trade receivables to the Purchasers such that the total outstanding balance of trade receivables sold to the Purchasers can be up to $300 million at any point in time, which is the maximum purchase commitment of the Purchasers under the T/R Facility. The future outstanding balance of trade receivables that are sold by the U.S. SPE to the Purchasers is expected to vary based on the level of activity and other factors and could be less than the maximum purchase commitment of $300 million. The total outstanding balance of trade receivables that were sold to the Purchasers and derecognized by the U.S. SPE was approximately $288 million and $300 million, respectively, as of December 31, 2023 and December 31, 2022. Excluding the trade receivables sold to the Purchasers, the SPEs also collectively owned $107 million and $224 million of additional trade receivables as of December 31, 2023 and December 31, 2022, respectively, and these amounts are included in Accounts receivable, net in the Company’s Consolidated Balance Sheets. Upon the effectiveness of the T/R Facility, as amended, the Company received a benefit from cash from operations of approximately $300 million in the year ended December 31, 2021. Continuous cash activity related to the T/R Facility is reflected in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The U.S. SPE incurs fees under the T/R Facility, including fees due and payable to the Purchasers. Those fees, which are immaterial, are recorded within Other income (expense), net in the Consolidated Statements of Operations. In addition, each of the SPEs has provided a full recourse guarantee in favor of the Purchasers of the full and timely payment of all trade receivables sold to them by the U.S. SPE. The guarantee is secured by all the trade receivables owned by each of the SPEs that have not been sold to the Purchasers. The reserve recognized for this recourse obligation as of December 31, 2023 and 2022 is not material. The Company, or in the case of any Canadian trade receivables, NCR Canada Corp., continues to be involved with the trade receivables even after they are transferred to the SPEs (or further transferred to the Purchasers) by acting as servicer. In addition to any obligations as servicer, the Company and each of its subsidiaries that may from time to time act as an originator under the T/R Facility provide the SPEs with customary recourse in respect of (i) certain dilutive events with respect to the trade receivables sold to the SPEs that are caused by the Company or other applicable originators and (ii) in the event of certain violations by the Company or other applicable originators of their respective representations and warranties with respect to the trade receivables sold to the SPEs. The Company guarantees that any of its subsidiaries (other than the SPEs) party to the T/R Facility will duly and punctually perform its obligations under the T/R Facility (whether as servicer or as originator). These servicing and originator liabilities of the Company and any such subsidiaries (other than the SPEs) under the T/R Facility are not expected to be material given the high quality of the customers underlying the receivables and the anticipated short collection period. The T/R Facility includes other customary representations and warranties, affirmative and negative covenants and default and termination provisions, which provide for the acceleration of amounts owed to the Purchasers thereunder in circumstances including, but not limited to, failure to pay capital or yield on when due, breach of representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES For the years ended December 31, income (loss) from continuing operations before income taxes consisted of the following: In millions 2023 2022 2021 Income (loss) before income taxes United States $ (323) $ (212) $ (260) Foreign (59) 81 (7) Total income (loss) from continuing operations before income taxes $ (382) $ (131) $ (267) For the years ended December 31, income tax expense (benefit) consisted of the following: In millions 2023 2022 2021 Income tax expense (benefit) Current Federal $ 26 $ 1 $ 5 State 3 3 3 Foreign 35 30 36 Deferred Federal (32) (3) 62 State (6) (2) (10) Foreign 178 43 (26) Total income tax expense (benefit) $ 204 $ 72 $ 70 The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31: In millions 2023 2022 2021 Income tax (benefit) expense at the U.S. federal tax rate of 21% $ (80) $ (28) $ (56) Foreign income tax differential 1 (8) 13 Additional U.S. tax on foreign income 9 (2) 4 State and local income taxes (net of federal effect) (2) 1 (5) Other U.S. permanent book/tax differences 5 4 4 Meals and entertainment expense 2 1 1 Nondeductible transaction costs 2 1 — Nondeductible executive compensation 17 9 13 Dispositions 16 — — Spin-off of NCR Atleos 226 — — Gains/losses on internal entity restructuring — — 55 Excess (benefit)/deficit from share-based payments 2 — (11) Change in branch tax status — — 1 Research and development tax credits (2) (5) (5) Foreign tax law changes (8) 3 (14) Valuation allowances 20 103 56 Change in liability for unrecognized tax benefits 3 (15) — Change in tax estimates for prior periods (5) 4 17 Other, net (2) 4 (3) Total income tax (benefit) expense $ 204 $ 72 $ 70 The Company’s tax provisions include a provision for income taxes in certain tax jurisdictions where its subsidiaries are profitable, but reflect only a portion of the tax benefits related to certain foreign subsidiaries’ tax losses due to the uncertainty of the ultimate realization of future benefits from these losses. During 2023, our tax rate was impacted by a net $226 million expense related to the Spin-Off of NCR Atleos. Also during 2023, our tax rate was impacted by a $20 million expense from recording a valuation allowance against deferred tax assets and a $17 million expense from nondeductible executive compensation. During 2022, our tax rate was impacted by a $103 million expense from recording a valuation allowance against deferred tax assets in the United Kingdom and other jurisdictions. During 2021, our tax rate was impacted by a $56 million expense from recording a valuation allowance against deferred tax assets and a $55 million expense resulting from an internal entity restructuring. As described in Note 1, “Basis of Presentation and Significant Accounting Policies”, on October 16, 2023, in connection with the Spin-Off, the Company completed a series of legal entity restructurings including both an internal and external spin-off transaction. These transactions are subject to tax laws in the U.S. and non-U.S. jurisdictions, which resulted in the use of significant judgments by management as it pertains to the interpretation and application of tax laws in the U.S. and non-U.S. jurisdictions to determine the potential taxability of the transactions. The Company recorded income tax expense of $226 million from continuing operations in its 2023 financial statements related to the Spin-Off transactions. The Company did not provide additional U.S. income tax or foreign withholding taxes, if any, on approximately $258 million of undistributed earnings of its foreign subsidiaries, given the intention continues to be that those earnings are reinvested indefinitely. The amount of unrecognized deferred tax liability associated with these indefinitely reinvested earnings is approximately $19 million. The unrecognized deferred tax liability is made up of a combination of U.S. and state income taxes and foreign withholding taxes. We regularly review our deferred tax assets for recoverability and establish a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based on the evaluation of positive and negative evidence. This evidence includes historical taxable income/loss, projected future taxable income, the expected timing of the reversal of existing temporary differences and the implementation of tax planning strategies. Deferred income tax assets and liabilities included in the Consolidated Balance Sheets as of December 31 were as follows: In millions 2023 2022 Deferred income tax assets Employee pensions and other benefits $ 7 $ 41 Other balance sheet reserves and allowances 200 205 Tax loss and credit carryforwards 245 346 Capitalized research and development 51 30 Property, plant and equipment 17 18 Lease liabilities 56 70 Capitalized software 15 — Other 26 25 Total deferred income tax assets $ 617 $ 735 Valuation allowance (211) (274) Net deferred income tax assets $ 406 $ 461 Deferred income tax liabilities Intangibles $ 119 $ 41 Right of use assets 57 72 Capitalized software — 19 Total deferred income tax liabilities $ 176 $ 132 Total net deferred income tax assets $ 230 $ 329 The Company has previously recorded valuation allowances related to certain deferred tax assets due to the uncertainty of the ultimate realization of the future benefits from those assets. The recorded valuation allowances cover deferred tax assets, including tax loss carryforwards, interest expense carryforwards, and foreign tax credits in tax jurisdictions where there is uncertainty as to the ultimate realization of those tax assets. If we are unable to generate sufficient future taxable income of the proper source in the time period within which the temporary differences underlying our deferred tax assets become deductible, or before the expiration of our loss and credit carryforwards, additional valuation allowances could be required. As of December 31, 2023, the Company had U.S. federal, U.S. state (tax effected), and foreign tax attribute carryforwards of approximately $622 million. The net operating loss carryforwards that are subject to expiration will expire in the years 2024 through 2040. The attributes include U.S. tax credit carryforwards of $105 million, which expire in the years 2024 through 2043. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended December 31: In millions 2023 2022 2021 Gross unrecognized tax benefits - January 1 $ 87 $ 121 $ 103 Increases related to tax positions from prior years 1 3 25 Decreases related to tax positions from prior years (1) (15) (4) Increases related to tax provisions taken during the current year 2 7 7 Settlements with tax authorities — (22) (2) Lapses of statutes of limitation (1) (7) (8) Distributions to NCR Atleos $ (30) $ — $ — Total gross unrecognized tax benefits - December 31 $ 58 $ 87 $ 121 Of the total amount of gross unrecognized tax benefits as of December 31, 2023, $44 million would affect the Company’s effective tax rate if realized. The Company’s liability arising from uncertain tax positions is recorded in Income tax accruals and Other current liabilities in the Consolidated Balance Sheets. We recognized interest and penalties associated with uncertain tax positions as part of the provision for income taxes in our Consolidated Statements of Operations of $4 million of expense, $1 million of benefit, and zero for the years ended December 31, 2023, 2022, and 2021, respectively. The gross amount of interest and penalties accrued as of December 31, 2023 and 2022 was $18 million and $26 million, respectively. In the United States, the Company files consolidated federal and state income tax returns where statutes of limitations generally range from three to five years. In 2022, the IRS commenced an examination of our 2019 income tax return, which is ongoing. U.S. federal tax years remain open from 2019 forward. Years beginning on or after 2010 are still open to examination by certain foreign taxing authorities. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK COMPENSATION PLANS | 9. STOCK COMPENSATION PLANS As disclosed in Note 1, “Basis of Presentation and Significant Accounting Policies”, outstanding restricted stock units and stock options were adjusted to maintain the economic value of those awards before and after the Spin-Off. Generally, continuing NCR Voyix employees retained the number of outstanding restricted stock units held by them as of the Spin-Off and received additional NCR Voyix restricted stock units to reflect the Spin-Off, while continuing NCR Atleos employees had their outstanding restricted stock units held by them as of the Spin-Off converted solely into equivalent restricted stock units of NCR Atleos, and any outstanding restricted stock units held by them as of the Spin-Off were cancelled. Outstanding stock options at the time of the Spin-Off, regardless of the holder, were converted into stock options of both NCR Voyix and NCR Atleos. In addition, outstanding restricted stock units held by certain key equity holders as of the Spin-Off (including directors and certain former employees) were converted into restricted stock units of both NCR Voyix and NCR Atleos. The share information included below has been adjusted for the Spin-Off. The modification of the Company’s awards did not result in material stock-based compensation cost during the year ended December 31, 2023. The Company recognizes all share-based payments as compensation expense in its financial statements based on their fair value. As of December 31, 2023, the Company’s stock-based compensation consisted of restricted stock units, employee stock purchase plan and stock options. The Company recorded stock-based compensation expense in income (loss) from continuing operations for the years ended December 31 as follows: In millions 2023 2022 2021 Restricted stock units $ 141 66 93 Stock options 3 15 20 Employee stock purchase plan 6 9 8 Stock-based compensation expense $ 150 $ 90 $ 121 Tax benefit (7) (5) (8) Total stock-based compensation (net of tax) $ 143 85 113 Approximately 39 million shares (i) remain available for future issuance and (ii) are issuable upon the exercise or settlement of outstanding awards under the 2017 Stock Incentive Plan (“SIP”). Details of the Company’s stock-based compensation plans are discussed below. Restricted Stock Units The SIP provides for the grant of several different forms of stock-based compensation, including restricted stock units. Restricted stock units can have service-based and/or performance-based vesting with performance goals being established by the Compensation and Human Resource Committee of the Company’s Board of Directors. Any grant of restricted stock units is generally subject to a vesting period of 12 months to 48 months, to the extent permitted by the SIP. Performance-based grants conditionally vest upon achievement of future performance goals based on performance criteria such as the Company’s achievement of specific return on capital and/or other financial metrics (as defined in the SIP) during the performance period. Performance-based grants must be earned, based on performance, before the actual number of shares to be awarded is known. The Compensation and Human Resource Committee considers the likelihood of meeting the performance criteria based upon estimates and other relevant data, and certifies performance based on its analysis of achievement against the performance criteria. A recipient of restricted stock units does not have the rights of a stockholder and is subject to restrictions on transferability and risk of forfeiture. Other terms and conditions applicable to any award of restricted stock units will be determined by the Compensation and Human Resource Committee and set forth in the agreement relating to that award. The following table reports restricted stock unit activity during the year ended December 31, 2023: Shares in thousands Number of Units Weighted Average Grant-Date Fair Value per Unit Unvested shares as of January 1 15,676 $ 17.93 Shares granted 3,859 $ 16.25 Shares vested (7,351) $ 19.75 Shares forfeited (1,094) $ 18.58 Awards transferred to Atleos at Spin-Off (3,868) $ 15.94 Unvested shares as of December 31 7,222 $ 19.86 Stock-based compensation expense is recognized in the financial statements based upon fair value. The total fair value of units vested and distributed in the form of the Company’s common stock was $132 million in 2023, $121 million in 2022, and $92 million in 2021. As of December 31, 2023, there was $49 million of unrecognized compensation cost related to unvested restricted stock unit grants. The unrecognized compensation cost is expected to be recognized over a remaining weighted-average period of 0.9 year. The weighted average grant date fair value for restricted stock unit awards granted in 2022 and 2021 was $35.08 and $34.00, respectively. The following table represents the composition of restricted stock unit grants in 2023: Shares in thousands Number of Units Weighted Average Grant-Date Fair Value Service-based units 2,254 $ 13.44 Performance-based units 1,605 $ 20.32 Total restricted stock units 3,859 $ 16.25 On February 13, 2023, the Company granted market-based restricted stock units vesting on December 31, 2025. The number of awards that vest are subject to the compound annual growth rate (“CAGR”) of the Company’s stock price from January 1, 2023 to December 31, 2025 (the “performance period”), subject to an alternative level of achievement based on the Company’s relative total shareholder return ranking among a comparison group. The fair value of the awards was determined to be $35.04 per share based on using a Monte-Carlo simulation model and will be recognized over the requisite service period. Approximately 50% of these market-based restricted stock units granted include an accelerated vesting provision if a Qualified Transaction, as defined in the award agreement, takes place during the performance period (with a minimum vesting period of one year from the grant date). Upon the occurrence of a Qualified Transaction, the number of shares that vest are then based on the Company’s 20-day volume-weighted average closing stock price immediately preceding the transaction date. If a qualifying transaction is deemed probable, the award will be recognized over the adjusted requisite service period at a fair value determined using a Monte-Carlo simulation model ranging from $35.09 to $41.77 per unit, dependent upon the estimated timing of the transaction. Transactions of this nature are subject to many variables that are highly uncertain, including the receipt of regulatory approvals and market conditions. The Spin-Off resulted in a Qualified Transaction and as such, these market-based restricted stock units were subject to accelerated vesting as defined in the award agreement. The table below details the significant assumptions used in determining the fair value of the market-based restricted stock units granted on February 13, 2023: Dividend yield — % Risk-free interest rate 4.15 % Expected volatility 55.90 % Expected volatility for these restricted stock units is calculated as the historical volatility of the Company’s stock over a period of approximately three years, as management believes this is the best representation of prospective trends. The risk-free interest rate was determined based on a three year U.S. Treasury yield curve in effect at the time of the grant. On February 25, 2022, the Company granted market-based restricted stock units vesting on December 31, 2024. The number of awards that vest are subject to the performance of the Company’s stock price from the date of grant to December 31, 2024. The fair value was determined to be $57.67 per share based on using a Monte-Carlo simulation model and will be recognized over the requisite service period. The table below details the assumptions used in determining the fair value of the market-based restricted stock units. Dividend yield — % Risk-free interest rate 1.73 % Expected volatility 59.26 % Expected volatility for the market-based restricted stock units is calculated as the historical volatility of the Company’s stock over a period of three years, as management believes this is the best representation of prospective trends. The risk-free interest rate was determined based on a three year U.S. Treasury yield curve in effect at the time of the grant. On December 21, 2022, the Company granted market-based restricted stock units vesting on December 31, 2025. The number of awards that vest are subject to the compound annual growth rate (“CAGR”) of the Company’s stock price from January 1, 2023 to December 31, 2025 (the “performance period”), subject to an alternative level of achievement based on the Company’s relative total shareholder return ranking among a comparison group. The fair value of the awards was determined to be $29.66 per share based on using a Monte-Carlo simulation model and will be recognized over the requisite service period. Approximately 50% of these market-based restricted stock units granted include an accelerated vesting provision if a Qualified Transaction, as defined in the award agreement, takes place during the performance period (with a minimum vesting period of one year from the grant date). Upon the occurrence of a Qualified Transaction, the number of shares that vest are then based on the Company’s 20-day volume-weighted average closing stock price immediately preceding the transaction date. If a qualifying transaction is deemed probable, the award will be recognized over the adjusted requisite service period at a fair value determined using a Monte-Carlo simulation model ranging from $30.00 to $35.81 per unit, dependent upon the estimated timing of the transaction. Transactions of this nature are subject to many variables that are highly uncertain, including the receipt of regulatory approvals and market conditions. The Spin-Off resulted in a Qualified Transaction and as such, these market-based restricted stock units were subject to accelerated vesting as defined in the award agreement. The table below details the significant assumptions used in determining the fair value of the market-based restricted stock units granted on December 21, 2022: Dividend yield — % Risk-free interest rate 3.90 % Expected volatility 64.93 % Expected volatility for these restricted stock units is calculated as the historical volatility of the Company’s stock over a period of approximately three years, as management believes this is the best representation of prospective trends. The risk-free interest rate was determined based on a three year U.S. Treasury yield curve in effect at the time of the grant. Stock Options The SIP also provides for the grant of stock options to purchase shares of the Company’s common stock. The Compensation and Human Resource Committee has discretion to determine the material terms and conditions of option awards under the SIP, provided that (i) the exercise price must be no less than the fair market value of the Company’s common stock (defined as the closing price) on the date of grant, (ii) the term must be no longer than ten years, and (iii) in no event shall the normal vesting schedule provide for vesting in less than one year. Other terms and conditions of an award of stock options will be determined by the Compensation and Human Resource Committee as set forth in the agreement relating to that award. The Compensation and Human Resource Committee has authority to administer the SIP, except that the Committee on Directors and Governance of the Company’s Board of Directors will administer the SIP with respect to non-employee members of the Board of Directors. New shares of the Company’s common stock are issued as a result of stock option exercises. During the years ended December 31, 2023 and December 31, 2022, the Company did not grant any stock options. During the year ended December 31, 2022, as discussed in Note 2, “Discontinued Operations”, the Company converted certain outstanding unvested LibertyX awards into the Company’s awards. LibertyX stock option awards were converted into the Company’s stock option awards with an exercise price per share for option awards equal to the exercise price per share of such stock option award immediately prior to the completion of the acquisition divided by the exchange ratio (as defined in the acquisition agreement), and vested immediately. The value of the option awards was deemed attributable to services already rendered and was included as a portion of the purchase price. During the year ended December 31, 2021, as discussed in Note 2, “Discontinued Operations”, the Company converted certain outstanding unvested Cardtronics awards into the Company’s awards. Cardtronics stock option awards were converted into the Company’s stock option awards with an exercise price per share for option awards equal to the exercise price per share of such stock option award immediately prior to the completion of the acquisition divided by the exchange ratio (as defined in the acquisition agreement) and will continue to be governed generally by the same terms and conditions as were applicable prior to the acquisition. The fair value of options that the Company assumed in connection with the acquisition of Cardtronics were estimated using the Black-Scholes model. The following table summarizes the Company’s stock option activity for the year ended December 31, 2023: Shares in thousands Shares Under Option Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of January 1 8,696 $ 19.57 Granted 470 $ 23.59 Exercised (122) $ 17.00 Forfeited or expired (248) $ 35.04 Awards transferred to Atleos at Spin-Off (470) $ 23.59 Outstanding as of December 31 8,326 $ 19.09 2.30 $ 4.44 Fully vested and expected to vest as of December 31 8,326 $ 19.09 2.30 $ 4.44 Exercisable as of December 31 8,326 $ 19.09 2.30 $ 4.44 As of December 31, 2023, there was no unrecognized compensation cost related to unvested stock option grants. The total intrinsic value of all options exercised was $1 million in 2023, $7 million in 2022, and $9 million in 2021. Cash received from option exercises under all share-based payment arrangements was $2 million in 2023, $1 million in 2022, and $25 million in 2021. There was $1 million and $2 million of tax benefits realized from option exercises in 2022 and 2021, respectively. There was no tax benefit realized from stock options exercised in 2023. Employee Stock Purchase Plan The Company’s amended Employee Stock Purchase Plan (“ESPP”) provides employees a 15% discount on stock purchases using a three-month look-back feature where the discount is applied to the stock price that represents the lower of the Company’s closing stock price on either the first day or the last day of each calendar quarter. Participants can contribute between 1% and 10% of their compensation. The amended ESPP was approved by the Company’s stockholders in 2016 and became effective January 1, 2017. Employees purchased approximately 0.9 million shares in 2023, 1.3 million shares in 2022, and 0.8 million shares in 2021, for approximately $19 million in 2023, $29 million in 2022 and $26 million in 2021. A total of 4 million shares were originally authorized to be issued under the ESPP before its amendment. Under the amended ESPP, 10 million shares were newly authorized to be issued, plus any shares remaining unissued under the prior ESPP after the last 2016 purchase date. Approximately 4.6 million authorized shares remain unissued under our amended ESPP as of December 31, 2023. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 10. EMPLOYEE BENEFIT PLANS Pension and Postemployment Plans The Company sponsors defined benefit pension plans. Following the Spin-Off, NCR Atleos assumed the U.S. and certain international pension plan assets and liabilities, along with the associated deferred costs in accumulated other comprehensive loss, which were previously sponsored by the Company. Pursuant to the terms of the Spin-Off transaction documents, the Company is required to contribute 50% of the annual costs of the NCR Atleos U.S. pension plan to the extent NCR Atleos contributes more than $40 million on an annual basis beginning with the plan year ending December 31, 2024. Internationally, the defined benefit plans are based primarily upon compensation and years of service. Certain international plans also no longer offer additional benefits and are closed to new participants. The Company’s funding policy is to contribute annually no less than the minimum required by applicable laws and regulations. Assets of the Company’s defined benefit plans are primarily invested in common and commingled trusts. The Company recognizes the funded status of each applicable plan on the Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. For pension plans, changes in the fair value of plan assets and net actuarial gains or losses are recognized upon remeasurement, which is at least annually in the fourth quarter of each year. For postemployment plans, changes to the funded status are recognized as a component of other comprehensive loss in stockholders’ equity. Non-U.S. employees are typically covered under government-sponsored programs, and the Company generally does not provide postretirement benefits other than pensions to non-U.S. retirees. The Company generally funds these benefits on a pay-as-you-go basis. The Company offers various postemployment benefits to involuntarily terminated and certain inactive employees after employment but before retirement. These benefits are paid in accordance with the Company’s established postemployment benefit practices and policies. Postemployment benefits include mainly severance as well as continuation of healthcare benefits and life insurance coverage while on disability. The Company provides appropriate accruals for these postemployment benefits. These postemployment benefits are funded on a pay-as-you-go basis. Pension Plans Reconciliation of the beginning and ending balances of the benefit obligations for the Company’s pension plans are as follows: International Pension Benefits In millions 2023 2022 Change in benefit obligation Benefit obligation as of January 1 $ 178 $ 249 Net service cost 2 2 Interest cost 6 2 Actuarial (gain) loss 15 (43) Benefits paid (14) (13) Settlements — — Plan participant contributions — — Currency translation adjustments 5 (19) Benefit obligation as of December 31 $ 192 $ 178 Accumulated benefit obligation as of December 31 $ 191 $ 175 A reconciliation of the beginning and ending balances of the fair value of the plan assets of the Company’s pension plans are as follows: International Pension Benefits In millions 2023 2022 Change in plan assets Fair value of plan assets as of January 1 $ 51 $ 64 Actual return on plan assets 10 (3) Company contributions 13 12 Benefits paid (14) (13) Settlement — — Currency translation adjustments (4) (9) Plan participant contributions — — Fair value of plan assets as of December 31 $ 56 $ 51 The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss as of December 31: International Pension Benefits In millions 2023 2022 Funded Status $ (136) $ (127) Amounts recognized in the Consolidated Balance Sheets Noncurrent assets $ 43 $ 40 Current liabilities (12) (11) Noncurrent liabilities (167) (156) Net amounts recognized $ (136) $ (127) Amounts recognized in accumulated other comprehensive loss Prior service cost — — Total $ — $ — For pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation and accumulated benefit obligation were $163 million and $162 million, respectively, as of December 31, 2023, and $147 million and $149 million, respectively, as of December 31, 2022. The fair value of assets was zero as of both December 31, 2023 and December 31, 2022. The net periodic benefit (income) cost of the pension plans for the years ended December 31 was as follows: In millions International Pension Benefits 2023 2022 2021 Net service cost $ 2 $ 2 $ 2 Interest cost 6 2 1 Expected return on plan assets (2) (1) (1) Amortization of prior service cost — — — Actuarial (gain) loss 7 (41) (7) Net periodic benefit (income) cost $ 13 $ (38) $ (5) The net actuarial loss in 2023 was primarily due to plan experience losses as well as a decrease in discount rates, partially offset by favorable returns on plan assets. Actuarial gains in 2022 were primarily due to an increase in discount rates partially offset by unfavorable returns on the fair value of plan assets. Actuarial gains in 2021 were primarily due favorable returns on plan assets. The weighted average rates and assumptions used to determine benefit obligations as of December 31 were as follows: International Pension Benefits 2023 2022 Discount rate 3.0 % 3.4 % Rate of compensation increase 2.4 % 1.0 % The weighted average rates and assumptions used to determine net periodic benefit (income) cost for the years ended December 31 were as follows: International Pension Benefits 2023 2022 2021 Discount rate - Service Cost 1.8% 0.8 % 0.6 % Discount rate - Interest Cost 3.4% 0.7 % 0.3 % Expected return on plan assets 5.0% 2.1 % 2.0 % Rate of compensation increase 1.0% 0.9 % 0.7 % The weighted-average cash balance interest crediting rate for the Company’s cash balance defined benefit plans was 1.4% and 1.0% for the years ended December 31, 2023 and 2022, respectively. The discount rate used to determine the International plans benefit obligations as of December 31, 2023 were derived by examining interest rate levels and trends within each country, particularly yields on high-quality, long-term corporate bonds, relative to our future expected cash flows. The Company employs a building block approach as its primary approach in determining the long-term expected rate of return assumptions for plan assets. Historical market returns are studied and long-term relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatilities generate higher returns over the long run. Current market factors, such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The expected long-term portfolio return is established for each plan via a building block approach with proper rebalancing consideration. The result is then adjusted to reflect additional expected return from active management net of plan expenses. Historical plan returns, the expectations of other capital market participants, and peer data may be used to review and assess the results for reasonableness and appropriateness. Plan Assets The weighted average asset allocations as of December 31, 2023 and 2022 by asset category are as follows: International Pension Fund Actual Allocation of Plan Assets as of December 31 Target Asset Allocation 2023 2022 Equity and other investments (1) 66 % 62 % 62.5% Debt securities (2) 34 % 37 % 37.2% Other 1 % — % 0.3% Total 100 % 100 % (1) Includes equity securities and equities held in comingled trusts. (2) Includes debt securities and debt held in comingled trusts. The fair value of plan assets as of December 31, 2023 and 2022 by asset category is as follows: International In millions Notes Fair Value as of December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Not Subject to Leveling Assets Equity securities and other investments: Common and commingled trusts - Equities 1 37 — — — 37 Fixed income securities: Common and commingled trusts - Bonds 1 19 — — — 19 Total $ 56 $ — $ — $ — $ 56 International In millions Notes Fair Value as of December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Not Subject to Leveling Assets Equity securities: Common and commingled trusts - Equities 1 32 — — — 32 Fixed income securities: Common and commingled trusts - Bonds 1 19 — — — 19 Total $ 51 $ — $ — $ — $ 51 Notes: 1. Common/collective trusts and registered investment companies (RICs) such as mutual funds are valued using a Net Asset Value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares or units outstanding. The fair value of the underlying securities within the fund, which are generally traded on an active market, are valued at the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches, are employed by the fund manager or independent third party to value investments. Investment Strategy The Company has historically employed a total return investment approach, whereby a mix of fixed-income, equities and real estate investments are used to maximize the long-term return of plan assets subject to a prudent level of risk. The risk tolerance is established for each plan through a careful consideration of plan liabilities, plan funded status and corporate financial condition. When considering assets for investment, the Company considers the expected rate of return and the risk of return, among others, of each potential investment. Investment risk is measured and monitored on an ongoing basis through regular performance reporting, investment manager reviews, actuarial liability measurements and periodic investment strategy reviews. Postemployment Benefits Reconciliation of the beginning and ending balances of the benefit obligation for the Company’s postemployment plan was: Postemployment Benefits In millions 2023 2022 Change in benefit obligation Benefit obligation as of January 1 $ 93 $ 64 Service cost (1) 15 58 Interest cost 2 1 Benefits paid (54) (18) Foreign currency exchange — (3) Actuarial (gain) loss 9 (9) Benefit obligation as of December 31 $ 65 $ 93 (1) During the year ended December 31, 2022, the Company recorded approximately $50 million in employee severance charges related to actions taken in the second half of the year . The following table presents the funded status and the reconciliation of the unfunded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss at December 31: Postemployment Benefits In millions 2023 2022 Benefit obligation $ 65 $ 93 Amounts recognized in the Consolidated Balance Sheets Current liabilities $ 22 $ 57 Noncurrent liabilities 43 36 Net amounts recognized $ 65 $ 93 Amounts recognized in Accumulated other comprehensive loss Net actuarial (gain) loss $ 9 $ (9) Amortization of gain (loss) 1 — Amortization of prior service cost 1 1 Total $ 11 $ (8) The net periodic benefit cost of the postemployment plan for the years ended December 31 was: In millions Postemployment Benefits 2023 2022 2021 Service cost $ 15 $ 58 $ 15 Interest cost 2 1 1 Amortization of: Prior service benefit (1) (1) (1) Actuarial gain (1) — (1) Net periodic benefit cost $ 15 $ 58 $ 14 The weighted average assumptions utilized in accounting for postemployment benefit obligations as of December 31 and for postemployment benefit costs for the years ended December 31 were: Postemployment Benefit Obligations Postemployment Benefit Costs 2023 2022 2023 2022 2021 Discount rate for severance plan 4.1 % 5.1 % 5.1 % 2.3 % 1.4 % Salary increase rate 3.4 % 3.1 % 3.1 % 2.6 % 2.0 % Involuntary turnover rate 3.8 % 3.8 % 3.8 % 3.8 % 3.8 % Cash Flows Related to Employee Benefit Plans Cash Contributions The Company plans to contribute approximately $13 million to the international pension plans in 2024. The Company also plans to make contributions of approximately $21 million to the postemployment plan in 2024. Estimated Future Benefit Payments The Company expects to make the following benefit payments reflecting past and future service from its pension and postemployment plans: In millions International Pension Benefits Postemployment Benefits Year 2024 $ 15 $ 21 2025 $ 14 $ 8 2026 $ 14 $ 8 2027 $ 14 $ 7 2028 $ 14 $ 7 2029-2033 $ 60 $ 31 Savings Plans U.S. employees and many international employees participate in defined contribution savings plans. These plans generally provide either a specified percent of pay or a matching contribution on participating employees’ voluntary elections. The Company’s matching contributions typically are subject to a maximum percentage or level of compensation. Employee contributions can be made pre-tax, after-tax or a combination thereof. The expense under the U.S. plan was approximately $22 million in 2023, $26 million in 2022, and $22 million in 2021. The expense under international and subsidiary savings plans was $11 million in 2023, $11 million in 2022, and $14 million in 2021. Amounts to be Recognized The amounts in Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during 2024 are less than $1 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company is subject to various proceedings, lawsuits, claims and other matters, including, for example, those that relate to the environment and health and safety, labor and employment, employee benefits, import/ export compliance, patents or other intellectual property, data privacy and security, product liability, commercial disputes and regulatory compliance, among others. Additionally, the Company is subject to diverse and complex laws and regulations, including those relating to corporate governance, public disclosure and reporting, environmental safety and the discharge of materials into the environment, product safety, import and export compliance, data privacy and security, antitrust and competition, government contracting, anti-corruption, and labor and human resources, which are rapidly changing and subject to many possible changes in the future. Compliance with these laws and regulations, including changes in accounting standards, taxation requirements, and federal securities laws among others, may create a substantial burden on, and substantially increase costs to the Company or could have an impact on the Company’s future operating results. The Company has reflected all liabilities when a loss is considered probable and reasonably estimable in the Consolidated Financial Statements. We do not believe there is a reasonable possibility that losses exceeding amounts already recognized have been incurred, but there can be no assurances that the amounts required to satisfy alleged liabilities from such matters will not impact future operating results. Other than as stated below, the Company does not currently expect to incur material capital expenditures related to such matters. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various lawsuits, claims, legal proceedings and other matters, including, but not limited to the Kalamazoo River environmental matter and other matters discussed above and below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in the Company’s Consolidated Financial Statements or will not have a material adverse effect on its consolidated results of operations, capital expenditures, competitive position, financial condition or cash flows. Environmental Matters The Company’s facilities and operations are subject to a wide range of environmental protection laws, and the Company has investigatory and remedial activities underway at a number of facilities that it currently owns or operates, or formerly owned or operated, to comply, or to determine compliance, with such laws. Also, the Company has been identified, either by a government agency or by a private party seeking contribution to site clean-up costs, as a potentially responsible party (“PRP”) at a number of sites pursuant to various state and federal laws, including the Federal Water Pollution Control Act, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and comparable state statutes. Following the Spin-Off, the Company will retain the responsibility to manage the identified environmental liabilities and remediations, subject however to an indemnity obligation by NCR Atleos to contribute 50% of the costs of certain environmental liabilities after an annual $15 million funding threshold is met. Other than the Kalamazoo River matter and the Ebina matter discussed below, we currently do not anticipate material expenses and liabilities from these environmental matters. Fox River The Company was one of eight entities that was formally notified by governmental and other entities that it was a PRP for environmental claims (under CERCLA and other statutes) arising out of the presence of polychlorinated biphenyls (“PCBs”) in sediments in the lower Fox River and in the Bay of Green Bay in Wisconsin. The Company was identified as a PRP because of alleged PCB discharges from two carbonless copy paper manufacturing facilities it previously owned, which were located along the Fox River, and carbonless copy paper “broke” the Company allegedly sold to other mills as raw material. In 2017, the Company entered into a Consent Decree with the federal and state governments for the clean-up of the Fox River, which was approved on August 22, 2017 by the federal district court in Wisconsin presiding over this matter. The Consent Decree resolved the Company’s disputes with the enforcement agencies as well as the other PRPs. All litigation relating to the contribution and enforcement of remediation obligations on the Fox River has been concluded. On October 3, 2022, the Environmental Protection Agency issued the Company a Certificate of Completion certifying that all of the Company’s remedial obligations under the Consent Decree have been completed. The cost of the Fox River remediation has been shared with three parties (the previously reported API having fully satisfied its obligations in 2016, and is now bankrupt): B.A.T. Industries p.l.c. (“BAT”) as co-obligor, and AT&T Corp. (“AT&T”) and Nokia (as the successor to Lucent Technologies and Alcatel-Lucent USA) as indemnitors. Under a 1998 Cost Sharing Agreement and subsequent 2005 arbitration award (collectively, the “Cost Sharing Agreement”), from 2008 through 2014, BAT paid 60% of the cost of the Fox River clean-up and natural resource damages (“NRD”). Pursuant to a September 30, 2014 Funding Agreement (the “Funding Agreement”), BAT funded 50% of the Company’s Fox River remediation costs from October 1, 2014 forward; the Funding Agreement also provides the Company contractual avenues for a future payment of, via direct and third-party sources, (1) the difference between BAT’s 60% obligation under the Cost Sharing Agreement on the one hand and their ongoing (since September 2014) 50% payments under the Funding Agreement on the other, as well as (2) the difference between the amount the Company received under the Funding Agreement and the amount owed to it under the Cost Sharing Agreement for the period from April 2012 through September 2014 (collectively, the “Funding Agreement Receivable”). Pursuant to a June 12, 2015 Letter Agreement, the Company’s contractual avenue for direct payment by BAT was effectively stayed pending completion of other unrelated lawsuits by BAT against third-parties. As of December 31, 2023 and 2022, the Funding Agreement Receivable was approximately $54 million and was included in Other assets in the Consolidated Balance Sheets. The timing of collection of sums related to the receivable is uncertain, subject and pursuant to the terms of the Funding Agreement and related agreements. This receivable is not taken into account in calculating the Company’s Fox River remaining reserve. Additionally, under a 1996 Divestiture Agreement, AT&T and Nokia have been responsible severally (not jointly) for indemnifying the Company for certain portions of the amounts paid by the Company for the Fox River matter over a defined threshold and subject to certain offsets for insurance recoveries and net tax benefits (the “Divestiture Agreement Offsets”), if any. (The Divestiture Agreement governs certain aspects of AT&T’s divestiture of the Company and of what was then known as Lucent Technologies.) Those companies have made the payments requested of them by the Company on an ongoing basis. The Company, AT&T and Nokia are currently discussing a final reconciliation of the Divestiture Agreement Offsets, but the timing for a final reconciliation is uncertain. Accordingly, there could be additional changes to some elements of the Company’s remaining obligation over upcoming periods, in view of the final reconciliation of the Funding Agreement Receivable and the Divestiture Agreement Offsets. Thus, there can be no assurance that unexpected expenditures and liabilities will not have a material effect on the Company’s capital expenditures, earnings, financial condition, cash flows, or competitive position. As of December 31, 2023, we have no remaining liability for remedial obligations for the Fox River matter. As of December 31, 2023 and 2022, the liability subject to final reconciliation with indemnitors under the Divestiture Agreement was approximately $22 million. Kalamazoo River In November 2010, The United States Environmental Protection Agency (“USEPA”) issued a “general notice letter” to the Company with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site (“Kalamazoo River site”) in Michigan. Three other companies - International Paper, Mead Corporation, and Consumers Energy - also received general notice letters at or about the same time. USEPA asserts that the site is contaminated by various substances, primarily PCBs, as a result of discharges by various paper mills located along the river. USEPA does not claim that the Company made direct discharges into the Kalamazoo River, and the Company never had facilities at or near the Kalamazoo River site, but USEPA indicated that “NCR may be liable under Section 107 of CERCLA ... as an arranger, who by contract or agreement, arranged for the disposal, treatment and/or transportation of hazardous substances at the Site.” USEPA stated that it “may issue special notice letters to [NCR] and other PRPs for future RI/FS [remedial investigation / feasibility studies] and RD/RA [remedial design / remedial action] negotiations.” In connection with the Kalamazoo River site, in December 2010 the Company, along with two other defendants, was sued in federal court by three GP affiliate corporations in a private-party contribution and cost recovery action for alleged pollution. The suit, pending in Michigan, asks that the Company and other defendants pay a “fair portion” of these companies’ costs. Various removal and remedial actions remain to be decided upon and performed at the Kalamazoo River site, the total costs for which generally remain undetermined; in 2017, Records of Decisions were issued for two parts of the river, and in 2018 such a decision was issued for another part of the river, but such decisions for the majority of the work are expected to be made only over the next several years. The suit alleges that the Company is liable to the GP entities as an “arranger” under CERCLA. The initial phase of the case was tried in a Michigan federal court in February 2013; on September 26, 2013 the court issued a decision that held the Company was liable as an “arranger” as of at least March 1969. (PCB-containing carbonless copy paper was produced from approximately 1954 to April 1971, and the majority of contamination at the Kalamazoo River site had occurred prior to 1969). The Company preserved its right to appeal the September 2013 decision. In the 2013 decision the Court did not determine the Company’s share of the overall liability. Relative shares of liability for the four companies were tried to the court in a subsequent phase of the case in December 2015. In a ruling issued on March 29, 2018, the court addressed responsibility for the costs that GP had incurred in the past, totaling to approximately $50 million (GP had sought approximately $105 million, but $55 million of those claims were removed by the court upon motions filed by the Company and other parties); the Company and GP were each assigned a 40% share of those costs, and the other two companies were assigned 15% and 5% as their allocations. The court entered a judgment in the case on June 19, 2018, in which it indicated that it would not allocate future costs, but would enter a declaratory judgment that the four companies together had responsibility for future costs, in amounts and shares to be determined. Cross-proceedings have been commenced to obtain recoveries from the other parties pursuant to the judgment; those proceedings were stayed pending the appeal referenced below. In July 2018, the Company appealed to the United States Court of Appeals for the Sixth Circuit both the 2013 court decision, which it believes is in conflict with a decision from the Fox River trial court as to Operable Unit 1 of that site and an affirmance of that decision from the Court of Appeals for the Seventh Circuit, and the 2018 court decision, on various legal grounds. The Company filed a bond to stay any execution of the judgment pending the appeal, and its application for a stay was approved by the court and remains stayed until the Company filed its dismissal of the appeal on December 31, 2020 pursuant to a Consent Decree, noted below. During the pendency of the Sixth Circuit stay, the Company negotiated a settlement of the Kalamazoo River matter with the USEPA and other government agencies having oversight over the river. On December 5, 2019, the Company entered into a Consent Decree, filed with the District Court on December 11, 2019, and on December 2, 2020, the District Court approved the Consent Decree, which has now resolved all litigation associated with the river clean-up, including the Sixth Circuit appeal. The Consent Decree requires the Company to pay GP its 40% share of past costs, to pay the USEPA and state agencies their past and future administrative costs, and to dismiss its Sixth Circuit appeal. The Consent Decree further requires the Company to take responsibility for the remediation of a portion, but not all, of the Kalamazoo River. The Consent Decree further provides the Company protection from other PRPs, including GP, seeking contribution for their costs associated with the clean-up anywhere on the river, thereby resolving the allocation of future costs left unresolved by the June 19, 2019 judgment. The Company believes it has meritorious claims against BAT under the Cost Sharing Agreement, discussed above, for the Kalamazoo River remediation expenses as a so-called “future site.” To date, BAT has denied that the Kalamazoo River is a “future site.” On February 10, 2023, the Company filed an action against BAT in the Southern District of New York seeking a declaration that the Kalamazoo River is indeed a future site under the Cost Sharing Agreement. The Company will also have indemnity or reimbursement claims against AT&T and Nokia under the arrangement discussed above in connection with the Fox River matter after expenses have met a contractual threshold set out in the 1996 Divestiture Agreement referenced above in the Fox River discussion. The Company believes that contractual threshold was met in December 2022. In November 2023, the USEPA issued a conditional approval for a work plan to remediate one area of the river (referred to by USEPA as Area 4) for which the Company has remediation responsibility. The Company is currently working with the USEPA to define the conditions for approval and the scope of work needed to be completed. The conditional approval provided the Company with sufficient information to estimate the cost of remediation for this area of the river and necessitated an increase in the Kalamazoo reserve. As of December 31, 2023 and 2022, the total reserve for Kalamazoo was $141 million and $90 million, respectively. The reserve is reported on a basis that is net of expected contributions from the Company’s co-obligors and indemnitors, subject to when the applicable threshold is reached. While the Company believes its co-obligors’ and indemnitors’ obligations are as previously reported, the reserve reflects changes in positions taken by some of those co-obligors and indemnitors with respect to the Kalamazoo River. The contributions from its co-obligors and indemnitors are expected to range from $70 million to $155 million and the Company will continue to pursue such contribution. As many aspects of the costs of remediation will not be determined for several years (and thus the high end of a range of possible costs for many areas of the site cannot be quantified at this time), the Company has made what it considers to be reasonable estimates of the low end of a range for such costs where remedies are identified, and/or of the costs of investigations and studies for areas of the river where remedies have not yet been determined, and the reserve is informed by those estimates. The extent of the Company’s potential liability remains subject to many uncertainties, notwithstanding the settlement of this matter and related Consent Decree noted above, particularly in as much as remedy decisions and cost estimates will not be generated until times in the future and as most of the work to be performed will take place through the 2030s. Under other assumptions or estimates for possible costs of remediation, which the Company does not at this point consider to be reasonably estimable or verifiable, it is possible that the reserve the Company has taken to discontinued operations reflected in this paragraph could more than approximately double the reflected reserve. Ebina The Company is engaged in cooperative regulatory compliance activities with the government of Japan in connection with certain environmental contaminants generated in its past operations in that country. The Company has quantities of PCB and other wastes primarily from its former plant at Oiso, Japan, including capsulated undiluted solutions manufactured in the past, capacitors, light ballasts and PCB-affected soil from the Oiso plant that was excavated and placed in steel drums. These wastes are stored in a facility at Ebina, Japan in accordance with Japanese regulations governing such materials. Over the past several years Japan has enacted and amended legislation governing such wastes, and has set a current deadline for treating and disposing of (at government-constructed disposal facilities) the highest-concentration wastes by 2027. Lower-concentration wastes can be and have been disposed of via private contractors, and as of December 31, 2023, the Company had disposed of approximately 99% of its lower-concentration wastes and approximately 98% of its higher-concentration wastes. The Company and its consultants have met and communicated regularly with the Japanese agency charged with administration of the law, and are working with that agency on a program to manage disposal of the high-concentration wastes, including tests of technologies to make the disposal more efficient. The government has given its final approvals, and the Company started to dispose of the high-concentration wastes in 2021, with final deadlines for various of the government-constructed disposal sites currently set for 2023 and later. Low-concentration wastes are required to be contracted for disposal by 2027, a timetable that the Company expects to meet. In September 2019, the Company’s environmental consultants, following a series of communications and meetings with the Japanese agency, at the Company’s request prepared an estimate of remaining disposal costs over the coming several years. While the estimate is subject to a range of assumptions and uncertainties, including prospects of cost reduction in coordination with the agency as certain field testing to separate high-concentration and low-concentration waste progresses over the coming years, the Company adjusted its existing reserve for the matter to take into account this cost estimate. The reserve as of both December 31, 2023 and 2022 is $7 million. The Japan environmental waste issue is treated as a compliance matter and not as litigation or enforcement, and the Company has received no threats of litigation or enforcement. NCR Atleos does not have any indemnification obligations to the Company in connection with the Ebina matter, and this remediation is expected to be completed during the remainder of the year or early next year. Environmental-Related Insurance Recoveries In connection with the Fox River and other environmental sites, through December 31, 2023, the Company has received a combined gross total of approximately $212 million in settlements reached with various of its insurance carriers. Portions of many of these settlements agreed in the 2010 through 2013 timeframe are payable to a law firm that litigated the claims on the Company’s behalf. Some of the settlements cover not only the Fox River but also other environmental sites; some are limited to either the Fox River or the Kalamazoo River site. Some of the settlements are directed to defense costs and some are directed to indemnity; some settlements cover both defense costs and indemnity. The Company does not anticipate that further material insurance recoveries specific to Kalamazoo River remediation costs will be available to it, but it has recovered some amounts as a result of settlement discussions with certain carriers. Claims with respect to Kalamazoo River defense costs have now been settled, with the amounts of those settlements included in the sum reported above. Environmental Remediation Estimates It is difficult to estimate the future financial impact of environmental laws, including potential liabilities. The Company records environmental provisions when it is probable that a liability has been incurred and the amount or range of the liability is reasonably estimable; in accordance with accounting guidance, where liabilities are not expected to be quantifiable or estimable for a period of years, the estimated costs of investigating those liabilities are recorded as a component of the reserve for that particular site. Provisions for estimated losses from environmental restoration and remediation are, depending on the site, based generally on internal and third-party environmental studies, estimates as to the number and participation level of other PRPs, the extent of contamination, estimated amounts for attorney and other fees, and the nature of required clean-up and restoration actions. Reserves are adjusted as further information develops or circumstances change. Management expects that the amounts reserved from time to time will be paid out over the period of investigation, negotiation, remediation and restoration for the applicable sites. The amounts provided for environmental matters in the Company’s Consolidated Financial Statements are the estimated gross undiscounted amounts of such liabilities, without deductions for indemnity insurance, third-party indemnity claims or recoveries from other PRPs, except as qualified in the following sentences. In those cases where insurance carriers or third-party indemnitors have agreed to pay any amounts and management believes that collectability of such amounts is probable, the amounts are recorded in the Consolidated Financial Statements. For the Fox River and Kalamazoo River sites, as described above, assets relating to the AT&T and Nokia indemnities and to the BAT obligations are recorded as payment is supported by contractual agreements, public filings and/or payment history. Guarantees and Product Warranties In the ordinary course of business, the Company may issue performance guarantees on behalf of its subsidiaries to certain of its 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. The Company believes the likelihood of having to perform under any such guarantee is remote. As of December 31, 2023 and 2022, the Company had no material obligations related to such guarantees, and therefore its Consolidated Financial Statements do not have any associated liability balance. 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. When a sale is consummated, the total customer revenue is recognized, provided that all revenue recognition criteria are otherwise satisfied, and the associated warranty liability is recorded using pre-established warranty percentages for the respective product classes. Warranty reserve liabilities are presented in Other current liabilities and Other liabilities in the Consolidated Balance Sheets. From time to time, product design or quality corrections are accomplished through modification programs. When identified, associated costs of labor and parts for such programs are estimated and accrued as part of the warranty reserve. In addition, the Company provides its customers with certain indemnification rights, subject to certain limitations and exceptions. In some cases, the Company agrees to defend and indemnify its customers from third-party lawsuits alleging patent or other infringement of Company solutions based on its customers’ use of them. On limited occasions the Company will undertake to indemnify a customer for business, rather than contractual, reasons. From time to time, the Company also enters into agreements in connection with its acquisition and divestiture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is not readily determinable due to the conditional nature of the Company’s potential obligations, certain limitations to liability and indemnity exclusions that appear in certain of the Company’s agreements, and the specific facts and circumstances involved with each particular agreement. Historically, the Company has not recorded a liability in connection with these indemnifications. From time to time the Company has provided indemnification under these circumstances, none of which has resulted in material liabilities, and the Company expects these indemnities will continue to arise in the future. Purchase Commitments The Company has purchase commitments for materials, supplies, services, and property, plant and equipment as part of the normal course of business. This includes a long-term service agreement with Accenture, under which many of the Company’s key transaction processing activities and functions are performed. |
LEASING
LEASING | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASING | 12. LEASING The following table presents our lease balances as of December 31: In millions Location in the Consolidated Balance Sheet December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease assets $ 236 $ 272 Finance lease assets Property, plant and equipment, net 71 59 Accumulated Amortization of Finance lease assets Property, plant and equipment, net (57) (49) Total leased assets $ 250 $ 282 Liabilities Current Operating lease liabilities Other current liabilities $ 44 $ 52 Finance lease liabilities Other current liabilities 8 9 Noncurrent Operating lease liabilities Operating lease liabilities 254 286 Finance lease liabilities Other liabilities 7 3 Total lease liabilities $ 313 $ 350 The following table presents our lease costs for operating and finance leases: In millions For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Operating lease cost $ 72 $ 77 $ 98 Finance lease cost Amortization of leased assets 13 13 14 Interest on lease liabilities 1 1 1 Short-Term lease cost — 3 3 Variable lease cost 29 23 21 Sublease income (3) — — Total lease cost $ 112 $ 117 $ 137 The following table presents the supplemental cash flow information: In millions For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 76 $ 82 $ 102 Operating cash flows from finance leases $ 1 $ 1 $ 1 Financing cash flows from finance leases $ 14 $ 13 $ 14 Lease Assets Obtained in Exchange for Lease Obligations Operating Leases $ 16 $ 4 $ 107 Finance Leases $ (1) $ — $ 2 The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 61 $ 9 2025 46 6 2026 39 1 2027 39 — 2028 38 — Thereafter 164 — Total lease payments 387 16 Less: Amount representing interest 89 1 Present value of lease liabilities $ 298 $ 15 As of December 31, 2023, all material operating leases had commenced. The following table presents the weighted average remaining lease term and interest rates: December 31, 2023 December 31, 2022 Weighted average lease term: Operating leases 8.3 years 8.8 years Finance leases 2.2 years 1.2 years Weighted average interest rates: Operating leases 6.14 % 6.01 % Finance leases 3.38 % 3.08 % |
LEASING | 12. LEASING The following table presents our lease balances as of December 31: In millions Location in the Consolidated Balance Sheet December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease assets $ 236 $ 272 Finance lease assets Property, plant and equipment, net 71 59 Accumulated Amortization of Finance lease assets Property, plant and equipment, net (57) (49) Total leased assets $ 250 $ 282 Liabilities Current Operating lease liabilities Other current liabilities $ 44 $ 52 Finance lease liabilities Other current liabilities 8 9 Noncurrent Operating lease liabilities Operating lease liabilities 254 286 Finance lease liabilities Other liabilities 7 3 Total lease liabilities $ 313 $ 350 The following table presents our lease costs for operating and finance leases: In millions For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Operating lease cost $ 72 $ 77 $ 98 Finance lease cost Amortization of leased assets 13 13 14 Interest on lease liabilities 1 1 1 Short-Term lease cost — 3 3 Variable lease cost 29 23 21 Sublease income (3) — — Total lease cost $ 112 $ 117 $ 137 The following table presents the supplemental cash flow information: In millions For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 76 $ 82 $ 102 Operating cash flows from finance leases $ 1 $ 1 $ 1 Financing cash flows from finance leases $ 14 $ 13 $ 14 Lease Assets Obtained in Exchange for Lease Obligations Operating Leases $ 16 $ 4 $ 107 Finance Leases $ (1) $ — $ 2 The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 61 $ 9 2025 46 6 2026 39 1 2027 39 — 2028 38 — Thereafter 164 — Total lease payments 387 16 Less: Amount representing interest 89 1 Present value of lease liabilities $ 298 $ 15 As of December 31, 2023, all material operating leases had commenced. The following table presents the weighted average remaining lease term and interest rates: December 31, 2023 December 31, 2022 Weighted average lease term: Operating leases 8.3 years 8.8 years Finance leases 2.2 years 1.2 years Weighted average interest rates: Operating leases 6.14 % 6.01 % Finance leases 3.38 % 3.08 % |
SERIES A PREFERRED STOCK
SERIES A PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SERIES A PREFERRED STOCK | 13. SERIES A PREFERRED STOCK On December 4, 2015, the Company issued 820,000 shares of Series A Convertible Preferred Stock to certain entities affiliated with the Blackstone Group L.P. (collectively, “Blackstone”) for an aggregate purchase price of $820 million, or $1,000 per share, pursuant to an Investment Agreement between the Company and Blackstone, dated November 11, 2015. In connection with the issuance of the Series A Convertible Preferred Stock, the Company incurred direct and incremental expenses of $26 million, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These direct and incremental expenses originally reduced the Series A Convertible Preferred Stock, and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, March 16, 2024. In 2017, in connection with the early release of the lock-up included in the Investment Agreement, Blackstone offered for sale 342,000 shares of Series A Convertible Preferred Stock in an underwritten public offering. In addition, Blackstone converted 90,000 shares of Series A Convertible Preferred Stock into shares of our common stock and we repurchased those shares of common stock for $48.47 per share. The underwritten offering and the stock repurchase were consummated on March 17, 2017. On September 18, 2019, the Company entered into an agreement to repurchase and convert the outstanding 512,221 shares of Series A Convertible Preferred Stock owned by Blackstone. The Company repurchased 237,673 shares of Series A Convertible Preferred Stock for total cash consideration of $302 million. The remaining shares of Blackstone’s Series A Convertible Preferred Stock, including accrued dividends, were converted to approximately 9.2 million shares of common stock at a conversion price of $30.00 per share. For the repurchase of Series A Convertible Preferred Stock, the excess of the fair value of consideration transferred over the carrying value was approximately $67 million, and has been included as a deemed dividend in adjusting the income from common stockholders in calculating earnings per share. In this analysis, we determined the fair value of the consideration transferred was not in excess of the fair value of the redeemed Series A Convertible Preferred Stock. As a result, there was no inducement provided to Blackstone for the conversion of the remaining preferred shares into common stock. On October 6, 2020, the Company entered into a definitive agreement to repurchase 67,000 shares of Series A Convertible Preferred Stock from two affiliated shareholders for a total cash consideration of $72 million. The transaction closed on October 7, 2020. On October 12, 2020, the Company entered into a definitive agreement to repurchase 65,365 shares of Series A Convertible Preferred Stock owned by two affiliated shareholders for a total cash consideration of $72 million. The transaction closed on October 13, 2020. The excess of the fair value of consideration transferred over the carrying value was approximately $12 million, and has been included as a deemed dividend in adjusting the income from common stockholders in calculating earnings per share. Dividend Rights The Series A Convertible Preferred Stock ranks senior to the shares of the Company’s common stock, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. The Series A Convertible Preferred Stock has a liquidation preference of $1,000 per share. Holders of Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per annum, which was payable quarterly in arrears. Beginning in the first quarter of 2020, dividends are payable in cash or in-kind at the option of the Company. If the Company does not declare and pay a dividend, the dividend rate will increase to 8.0% per annum until all accrued but unpaid dividends have been paid in full. During the years ended December 31, 2023, 2022 and 2021, the Company did not pay dividends-in-kind associated with the Series A Convertible Preferred Stock. Cash dividends of $15 million were declared during the years ended December 31, 2023, 2022 and 2021. Conversion Features Prior to the close of business on October 17, 2023, the Series A Convertible Preferred Stock was convertible at the option of the holders at any time into shares of common stock at a conversion price of $30.00 per share or a conversion rate of 33.333 shares of common stock per share of Series A Convertible Preferred Stock. As a result of the Spin-Off, the conversion rate of the Series A Convertible Preferred Stock was adjusted pursuant to its terms to 57.560 shares of common stock per share of Series A Convertible Preferred Stock, effective immediately after the close of business on October 17, 2023. As of December 31, 2023 and 2022, the maximum number of common shares that could be required to be issued upon conversion of the outstanding shares of Series A Convertible Preferred Stock was 15.9 million and 9.2 million shares, respectively. The conversion rate is subject to the following customary anti-dilution and other adjustments: • the issuance of common stock as a dividend or the subdivision, combination, or reclassification of common stock into a greater or lesser number of shares of common stock; • the dividend, distribution or other issuance of rights, options or warrants to holders of Common Stock entitling them to subscribe for or purchase shares of common stock at a price per share that is less than the volume-weighted average price per share of common stock; • the completion of a tender offer or exchange offer of shares of common stock at a premium to the volume-weighted average price per share of common stock and certain other above-market purchases of common stock; • the issuance of a dividend or similar distribution in-kind, which can include shares of any class of capital stock, evidences of the Company’s indebtedness, assets or other property or securities, to holders of common stock; • a transaction in which a subsidiary of the Company ceases to be a subsidiary of the Company as a result of the distribution of the equity interests of the subsidiary to the holders of the Company’s common stock; and • the payment of a cash dividend to the holders of common stock. At any time after December 4, 2018, all outstanding shares of Series A Convertible Preferred Stock are convertible at the option of the Company if the volume-weighted average price of the common stock exceeds $54.00 for at least 30 trading days in any period of 45 consecutive trading days. The $54.00 may be adjusted pursuant to the anti-dilution provisions above. The Series A Convertible Preferred Stock, and the associated dividends for the first sixteen payments, did not generate a beneficial conversion feature (“BCF”) upon issuance as the fair value of the Company’s common stock was greater than the conversion price. The Company will determine and, if required, measure a BCF based on the fair value of our stock price on the date dividends are declared subsequent to the sixteenth dividend. If a BCF is recognized, a reduction to retained earnings and the Series A Convertible Preferred Stock will be recorded, and then subsequently accreted through the first redemption date. Additionally, the Company determined that the nature of the Series A Convertible Preferred Stock was more akin to an equity instrument and that the economic characteristics and risks of the embedded conversion options were clearly and closely related to the Series A Convertible Preferred Stock. As such, the conversion options were not required to be bifurcated from the host under ASC 815, Derivatives and Hedging. Redemption Rights On any date during the three months commencing on and immediately following March 16, 2024 and the three months commencing on and immediately following every third anniversary of March 16, 2024, holders of Series A Convertible Preferred Stock have the right to require the Company to repurchase all or any portion of the Series A Convertible Preferred Stock at 100% of the liquidation preference thereof plus all accrued but unpaid dividends. Upon certain change of control events involving the Company, holders of Series A Convertible Preferred Stock can require the Company to repurchase, subject to certain exceptions, all or any portion of the Series A Convertible Preferred Stock at the greater of (1) an amount in cash equal to 100% of the liquidation preference thereof plus all accrued but unpaid dividends and (2) the consideration the holders would have received if they had converted their shares of Series A Convertible Preferred Stock into common stock immediately prior to the change of control event. The Company has the right, upon certain change of control events involving the Company, to redeem the Series A Convertible Preferred Stock at the greater of (1) an amount in cash equal to the sum of the liquidation preference of the Series A Convertible Preferred Stock, all accrued but unpaid dividends and the present value, discounted at a rate of 10%, of any remaining scheduled dividends through the fifth anniversary of the first dividend payment date, assuming the Company chose to pay such dividends in cash (the “make-whole provision”) and (2) the consideration the holders would have received if they had converted their shares of Series A Convertible Preferred Stock into common stock immediately prior to the change of control event. Since the redemption of the Series A Convertible Preferred Stock is contingently or optionally redeemable and therefore not certain to occur, the Series A Convertible Preferred Stock is not required to be classified as a liability under ASC 480, Distinguishing Liabilities from Equity . As the Series A Convertible Preferred Stock is redeemable in certain circumstances at the option of the holder and is redeemable in certain circumstances upon the occurrence of an event that is not solely within our control, we have classified the Series A Convertible Preferred Stock in mezzanine equity in the Consolidated Balance Sheets. As noted above, the Company determined that the nature of the Series A Convertible Preferred Stock was more akin to an equity instrument. However, the Company determined that the economic characteristics and risks of the embedded put options, call option and make-whole provision were not clearly and closely related to the Series A Convertible Preferred Stock. Therefore, the Company assessed the put and call options further, and determined they did not meet the definition of a derivative under ASC 815, Derivatives and Hedging. Under the same analysis, the Company determined the make-whole provision did meet the definition of a derivative, but that the value of the derivative was minimal due to the expectations surrounding the scenarios under which the call option and make-whole provision would be exercised. Voting Rights Holders of Series A Convertible Preferred Stock are entitled to vote with the holders of the common stock on an as-converted basis. Holders of Series A Convertible Preferred Stock are entitled to a separate class vote with respect to amendments to the Company’s organizational documents that have an adverse effect on the Series A Convertible Preferred Stock and issuances by the Company of securities that are senior to, or equal in priority with, the Series A Convertible Preferred Stock. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 14. EARNINGS PER SHARE Basic earnings per share (“EPS”) is calculated by dividing net income or loss attributable to NCR Voyix, less any dividends (declared or cumulative undeclared), deemed dividends, accretion or decretion, redemption or induced conversion on our Series A Convertible Preferred Stock, by the weighted average number of shares outstanding during the period. In computing diluted EPS, we evaluate and reflect the maximum potential dilution, for each issue or series of issues of potential common shares in sequence from the most dilutive to the least dilutive. We adjust the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A Convertible Preferred Stock to its redemption price, or recorded upon a redemption or induced conversion. We adjust the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of the Series A Convertible Preferred Stock, restricted stock units, and stock options. The holders of Series A Convertible Preferred Stock, unvested restricted stock units and stock options do not have non-forfeitable rights to common stock dividends or common stock dividend equivalents. Accordingly, the Series A Convertible Preferred Stock, unvested restricted stock units and stock options do not qualify as participating securities. See Note 9, “Stock Compensation Plans”, for share information on NCR Voyix’s stock compensation plans. The components of basic and diluted earnings (loss) per share are as follows: In millions, except per share amounts Year ended December 31 2023 2022 2021 Numerator: Income (loss) from continuing operations $ (586) $ (203) $ (337) Series A convertible preferred stock dividends (16) (16) (16) Net income (loss) from continuing operations attributable to NCR Voyix common stockholders (602) (219) (353) Income (loss) from discontinued operations, net of tax 163 263 434 Net income (loss) attributable to NCR Voyix common stockholders $ (439) $ 44 $ 81 Denominator: Basic and diluted weighted average number of shares outstanding 140.6 136.7 131.2 Basic and diluted earnings (loss) per share: From continuing operations $ (4.28) $ (1.60) $ (2.69) From discontinued operations 1.16 1.92 3.31 Total basic and diluted earnings per share $ (3.12) $ 0.32 $ 0.62 For 2023, due to the net loss from continuing operations attributable to NCR Voyix common stockholders, potential common shares that would cause dilution, such as Series A Convertible Preferred Stock, restricted stock units and stock options, were excluded from the diluted share count because their effect would have been anti-dilutive. The weighted average outstanding shares of common stock were not adjusted by 10.6 million for the as-if converted Series A Convertible Preferred Stock because the effect would be anti-dilutive. Additionally, for 2023, weighted average restricted stock units and stock options of 12.1 million were excluded from the diluted share count because their effect would have been anti-dilutive. Refer to Note 13, “Series A Convertible Preferred Stock”, for additional discussion related to the transaction impacting the Series A Convertible Preferred Stock. For 2022, due to the net loss from continuing operations attributable to NCR Voyix common stockholders, potential common shares that would cause dilution, such as Series A Convertible Preferred Stock, restricted stock units and stock options, were excluded from the diluted share count because their effect would have been anti-dilutive. The weighted average outstanding shares of common stock were not adjusted by 9.2 million for the as-if converted Series A Convertible Preferred Stock because the effect would be anti-dilutive. Additionally, for 2022, weighted average restricted stock units and stock options of 11.0 million were excluded from the diluted share count because their effect would have been anti-dilutive. For 2021, due to the net loss from continuing operations attributable to NCR Voyix common stockholders, potential common shares that would cause dilution, such as Series A Convertible Preferred Stock, restricted stock units and stock options, were excluded from the diluted share count because their effect would have been anti-dilutive. The weighted average outstanding shares of common stock were not adjusted by 9.2 million for the as-if converted Series A Convertible Preferred Stock because the effect would have been anti-dilutive. Additionally, for 2021, weighted average restricted stock units and stock options of 12.5 million were excluded from the diluted share count because their effect would have been anti-dilutive. |
DERIVATIVES AND HEDGING INSTRUM
DERIVATIVES AND HEDGING INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING INSTRUMENTS | 15. DERIVATIVES AND HEDGING INSTRUMENTS The Company is exposed to certain risks arising from both our business operations and economic conditions. We principally manage exposures to a wide variety of business and operational risk through management of core business activities. We manage interest rate risk associated with our vault cash rental obligations and floating rate-debt by managing the amount, sources, and duration of debt funding and the use of derivative financial instruments. The Company previously used interest rate cap agreements or interest rate swap contracts (“Interest Rate Derivatives”) to manage differences in the amount, timing and duration of known or expected cash payments related to our previous TLA Facility. Further, a substantial portion of our operations and revenue occur outside the United States and, as such, the Company has exposure to approximately 40 functional currencies. Our results can be significantly impacted, both positively and negatively, by changes in foreign currency exchange rates. The Company seeks to mitigate such impact by hedging its foreign currency transaction exposure using foreign currency forward and option contracts. We do not enter into hedges for speculative purposes. Foreign Currency Exchange Risk The accounting guidance for derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The Company designates foreign exchange contracts as cash flow hedges of forecasted transactions when they are determined to be highly effective at inception. Our risk management strategy includes hedging, on behalf of certain subsidiaries, a portion of our forecasted, non-functional currency denominated cash flows for a period of up to 15 months. As a result, some of the impact of currency fluctuations on non-functional currency denominated transactions (and hence on subsidiary operating income, as stated in the functional currency), is mitigated in the near term. In the longer term (greater than 15 months), the subsidiaries are still subject to the effect of translating the functional currency results to United States Dollars. To manage our exposures and mitigate the impact of currency fluctuations on the operations of our foreign subsidiaries, we hedge our main transactional exposures through the use of foreign exchange forward and option contracts. This is primarily done through the hedging of foreign currency denominated inter-company inventory purchases by the Company’s marketing units and the foreign currency denominated inputs to our manufacturing units. If the hedge is designated as a highly effective cash flow hedge, the gains or losses are deferred into accumulated other comprehensive income (“AOCI”). The gains or losses from derivative contracts that are designated as highly effective cash flow hedges related to inventory purchases are recorded in cost of products when the inventory is sold to an unrelated third party. Otherwise, they are recorded in earnings when the exchange rates change. As of December 31, 2023, the balance in AOCI related to foreign exchange derivative transactions was zero. We also utilize foreign exchange contracts to hedge our exposure of assets and liabilities denominated in non-functional currencies. We recognize the gains and losses on these types of hedges in earnings as exchange rates change. Interest Rate Risk The Company designates Interest Rate Derivative contracts as cash flow hedges of forecasted transactions when they are determined to be highly effective at inception. We utilize interest rate swap contracts or interest rate cap agreements to add stability to interest cost and to manage exposure to interest rate movements as part of our interest rate risk management strategy. Payments and receipts related to Interest Rate Derivatives are included in cash flows from operating activities in the Consolidated Statements of Cash Flows. In March 2022, the Company terminated the outstanding $2 billion notional amount interest rate cap agreements maturing in 2024 for proceeds of $64 million. The gains will be recognized ratably through July 1, 2024, corresponding to the term of the original interest rate cap agreements. In March 2022, the Company executed $2.2 billion aggregate notional amount interest rate swap contracts that began April 1, 2022 and had an original termination date of April 1, 2025. These interest rate swap contracts had fixed rates ranging from 2.078% to 2.443%, and were designated as cash flow hedges of the floating rate interest associated with the Company’s TLA Facility. In June 2022, the Company terminated the outstanding $2.4 billion aggregate notional interest rate swap contracts maturing in 2025 for proceeds of $55 million. The gains will be recognized ratably primarily through April 1, 2025, corresponding to the term of the original interest rate swap agreements. As of September 30, 2023, it was determined that the transactions underlying the unrealized gains on terminated interest rate swap agreement for the TLA facility reported in Accumulated other comprehensive income were probable of not occurring under ASC 815, Derivatives and Hedging . As such, $18 million of unrealized gains were recognized in Interest Expense in the Consolidated Statements of Operations for the year ended December 31, 2023. As of December 31, 2023 and December 31, 2022, the balance in AOCI related to Interest Rate Derivatives was zero and $109 million, respectively. The following tables provide information on the location and amounts of derivative fair values in the Consolidated Balance Sheets: Fair Values of Derivative Instruments December 31, 2023 In millions Balance Sheet Location Notional Fair Balance Sheet Location Notional Fair Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid and other current assets $ 5 Other current liabilities $ (4) Total derivatives not designated as hedging instruments $ 402 $ 5 $ 207 $ (4) Total derivatives $ 5 $ (4) Fair Values of Derivative Instruments December 31, 2022 In millions Balance Sheet Location Notional Fair Balance Sheet Location Notional Fair Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid and other current assets $ 1 Other current liabilities $ (2) Total derivatives not designated as hedging instruments $ 376 $ 1 $ 373 $ (2) Total derivatives $ 1 $ (2) The effects of derivative instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022, and 2021 were as follows: In millions Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative Amount of (Gain) Loss Reclassified from AOCI into the Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Location of (Gain) Loss Reclassified from AOCI into the Consolidated Statements of Operations For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Interest rate contracts $ — $ 116 $ 5 Cost of services $ — $ (8) $ 1 Interest rate contracts $ — $ 36 $ 4 Interest expense $ (31) $ (10) $ — In millions Amount of Gain (Loss) Recognized in the Consolidated Statements of Operations Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in the Consolidated Statements of Operations For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Foreign exchange contracts Other income (expense), net $ (8) $ (15) $ (12) The following tables show the impact of the Company’s cash flow hedge accounting relationships on the Consolidated Statement of Operations for the years ended December 31, 2023, 2022, and 2021. Location and Amount of (Gain) Loss Recognized in Income on Cash Flow Hedging Relationships for the years ended December 31: In millions Cost of Services Cost of Products Interest Expense 2023 2022 2021 2023 2022 2021 2023 2022 2021 Total amount of expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 1,758 $ 1,664 $ 1,735 $ 1,110 $ 1,151 $ 1,032 $ (294) $ (285) $ (238) Amount of (gain) loss reclassified from Accumulated other comprehensive loss, net of expense $ — $ (8) $ 1 $ — $ — $ — $ (31) $ (10) $ — Refer to Note 16, “Fair Value of Assets and Liabilities”, for further information on derivative assets and liabilities recorded at fair value on a recurring basis. Concentration of Credit Risk The Company is potentially subject to concentrations of credit risk on accounts receivable and financial instruments such as hedging instruments and cash and cash equivalents. Credit risk includes the risk of nonperformance by counterparties. The maximum potential loss may exceed the amount recognized on the Consolidated Balance Sheets. Exposure to credit risk is managed through credit approvals, credit limits, selecting major international financial institutions as counterparties to hedging transactions and monitoring procedures. NCR Voyix’s business often involves large transactions with customers, and if one or more of those customers were to default on its obligations under applicable contractual arrangements, the Company could be exposed to potentially significant losses. However, management believes that the reserves for potential losses are adequate. As of December 31, 2023 and 2022, the Company did not have any major concentration of credit risk related to financial instruments. |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | 16. FAIR VALUE OF ASSETS AND LIABILITIES Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities recorded at fair value on a recurring basis as of December 31, 2023 and 2022 are set forth as follows: December 31, 2023 December 31, 2022 Fair Value Measurements Using Fair Value Measurements Using In millions December 31, 2023 Quoted Prices Significant Other Significant December 31, 2022 Quoted Prices Significant Other Significant Assets: Deposits held in money market mutual funds (1) $ — $ — $ — $ — $ 16 $ 16 $ — $ — Foreign exchange contracts (2) 5 — 5 — 1 — 1 — Total $ 5 $ — $ 5 $ — $ 17 $ 16 $ 1 $ — Liabilities: Foreign exchange contracts (3) 4 — 4 — 2 — 2 — Total $ 4 $ — $ 4 $ — $ 2 $ — $ 2 $ — (1) Included in Cash and cash equivalents in the Consolidated Balance Sheets. (2) Included in Prepaid and other current assets in the Consolidated Balance Sheets. (3) Included in Other current liabilities in the Consolidated Balance Sheets. Deposits Held in Money Market Mutual Funds A portion of the Company’s excess cash is held in money market mutual funds that generate interest income based on prevailing market rates. Money market mutual fund holdings are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. Foreign Exchange Contracts As a result of our global operating activities, we are exposed to risks from changes in foreign currency exchange rates, which may adversely affect our financial condition. To manage our exposures and mitigate the impact of currency fluctuations on our financial results, we hedge our primary transactional exposures through the use of foreign exchange forward and option contracts. The foreign exchange contracts are valued using the market approach based on observable market transactions of forward rates and are classified within Level 2 of the valuation hierarchy. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements. We measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilize Level 3 inputs to evaluate the likelihood of both our own default and counterparty default. As of December 31, 2023 , we determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives and therefore, the valuations are classified in Level 2 of the fair value hierarchy. Assets Measured at Fair Value on a Non-recurring Basis From time to time, certain assets are measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). The Company measures certain assets, including intangible assets and cost and equity method investments, at fair value on a non-recurring basis. These assets are recognized at fair value when initially valued and when deemed to be impaired. Additionally, the Company reviews the carrying values of investments when events and circumstances warrant and considers all available evidence in evaluating when declines in fair value are other-than-temporary declines. The Company carries equity investments in privately-held companies at cost or at fair value when the Company recognizes an other-than-temporary impairment charge. No material impairment charges or non-recurring fair value adjustments were recorded during the years ended December 31, 2023, December 31, 2022 and December 31, 2021. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 17. ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in Accumulated Other Comprehensive Income ( “AOCI” ) by Component The changes in AOCI for the years ended December 31 are as follows: In millions Currency Translation Adjustments Changes in Employee Benefit Plans Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2020 $ (245) $ (26) $ — $ (271) Other comprehensive (loss) income before reclassifications (30) 4 7 (19) Amounts reclassified from AOCI — (2) 1 (1) Net current period other comprehensive (loss) income (30) 2 8 (20) Balance at December 31, 2021 $ (275) $ (24) $ 8 $ (291) Other comprehensive (loss) income before reclassifications (129) 21 117 9 Amounts reclassified from AOCI — (2) (16) (18) Net current period other comprehensive (loss) income (129) 19 101 (9) Balance at December 31, 2022 $ (404) $ (5) $ 109 $ (300) Other comprehensive (loss) income before reclassifications $ 85 $ (7) $ — $ 78 Amounts reclassified from AOCI — (1) (24) (25) Net current period other comprehensive (loss) income $ 85 $ (8) $ (24) $ 53 Spin-Off of NCR Atleos (105) 8 (85) (182) Balance at December 31, 2023 $ (424) $ (5) $ — $ (429) Reclassifications Out of AOCI The reclassifications out of AOCI for the years ended December 31 are as follows: For the year ended December 31, 2023 Employee Benefit Plans In millions Actuarial Losses Recognized Amortization of Prior Service Benefit Effective Cash Flow Hedges Total Affected line in Consolidated Statement of Operations: Cost of products $ — $ — $ — $ — Cost of services (1) (1) — (2) Selling, general and administrative expenses — — — — Research and development expenses — — — — Interest expense — — (31) (31) Total before tax $ (1) $ (1) $ (31) $ (33) Tax expense 8 Total reclassifications, net of tax $ (25) For the year ended December 31, 2022 Employee Benefit Plans In millions Actuarial Losses Recognized Amortization of Prior Service Benefit Effective Cash Flow Hedges Total Affected line in Consolidated Statement of Operations: Cost of products $ — $ — $ — $ — Cost of services (1) (1) (8) (10) Selling, general and administrative expenses 1 (1) — — Research and development expenses — — — — Interest expense — — (10) (10) Total before tax $ — $ (2) $ (18) $ (20) Tax expense 2 Total reclassifications, net of tax $ (18) For the year ended December 31, 2021 Employee Benefit Plans In millions Actuarial Losses Recognized Amortization of Prior Service Benefit Effective Cash Flow Hedges Total Affected line in Consolidated Statement of Operations: Cost of products $ — $ — $ — $ — Cost of services — (2) 1 (1) Selling, general and administrative expenses (1) — — (1) Research and development expenses — 1 — 1 Total before tax $ (1) $ (1) $ 1 $ (1) Tax expense — Total reclassifications, net of tax $ (1) |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information [Abstract] | |
SUPPLEMENTAL FINANCIAL INFORMATION | 18. SUPPLEMENTAL FINANCIAL INFORMATION The components of Other income (expense), net are summarized as follows for the years ended December 31: In millions 2023 2022 2021 Other income (expense), net Interest income $ 13 $ 13 $ 8 Foreign currency fluctuations and foreign exchange contracts (28) (17) (2) Bank-related fees (28) (9) (27) Employee benefit plans (1) (8) 40 9 Other, net (28) (9) (1) Total other income (expense), net $ (79) $ 18 $ (13) (1) For the year ended December 31, 2023, the actuarial loss related to the remeasurement of our pension plan assets and liabilities was $7 million. For the year ended December 31, 2022, the actuarial gain related to the remeasurement of our pension plan assets and liabilities was $41 million. For the year ended December 31, 2021, the actuarial gain related to the remeasurement of our pension plan assets and liabilities was $7 million. The components of inventory are summarized as follows: In millions December 31, 2023 December 31, 2022 Inventories Work in process and raw materials $ 14 $ 48 Finished goods 112 166 Service parts 128 143 Total inventories $ 254 $ 357 The components of property, plant and equipment, net are summarized as follows: In millions December 31, 2023 December 31, 2022 Property, plant and equipment Land and improvements $ 1 $ 2 Buildings and improvements 208 145 Machinery and other equipment 476 570 Finance lease assets 71 59 Property, plant and equipment, gross 756 776 Less: accumulated depreciation (544) (549) Total property, plant and equipment, net $ 212 $ 227 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 19. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth the Company’s unaudited results of operations for each of the quarters in the fiscal years 2023 and 2022, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations. The December 31, 2023 quarterly information has been revised for the impact of the fraudulent ACH disbursements, as discussed in Note 20, “Revised 2023 Quarterly Financial Information (Unaudited)”. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. In millions, except per share amounts First Quarter Second Quarter Third Quarter Fourth Quarter 2023 Total revenue $ 922 $ 967 $ 978 $ 963 Gross margin 234 276 271 181 Income (loss) from operations 29 67 71 (130) Income from continuing operations (65) (41) (222) (258) Income (loss) from discontinued operations, net of taxes 73 57 94 (61) Net income (loss) 8 16 (128) (319) Net (loss) income attributable to common stockholders 3 13 (133) (322) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Net income attributable to common shareholders 0.02 0.09 (0.94) (2.28) Diluted earnings (loss) per share: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Diluted earnings per share attributable to common shareholders 0.02 0.09 (0.94) (2.28) 2022 Total revenue $ 917 $ 950 $ 960 $ 966 Gross margin 210 224 281 263 Income (loss) from operations (1) 24 55 58 Income from continuing operations (96) (57) (38) (12) Income (loss) from discontinued operations, net of taxes 61 100 107 (6) Net income (loss) (35) 43 69 (18) Net (loss) income attributable to common stockholders (38) 37 65 (20) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Net income attributable to common shareholders (0.28) 0.27 0.47 (0.15) Diluted earnings (loss) per share: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Diluted earnings per share attributable to common shareholders (0.28) 0.27 0.47 (0.15) 20. REVISED 2023 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) As described in Note 1, “Basis of Presentation and Significant Accounting Policies”, in February 2024, the Company identified fraudulent ACH disbursements from a Company bank account. Through September 30, 2023, the Company incorrectly recorded approximately $11 million in an accounts receivable clearing account instead of as operating expenses, of which $2 million related to annual periods prior to 2023. The Company evaluated the impact of the errors and concluded they are not material to any previously issued interim consolidated financial statements. As a result of these errors, and the related income tax effects, the Company has revised the financial information for NCR Voyix as of and for each of the periods ended March 31, 2023, June 30, 2023 and September 30, 2023. Additionally, the Company corrected other immaterial errors which originally resulted in the understatement of operating expenses related to prepaid assets and accrued expenses. The Company intends to reflect these revisions in its Quarterly Reports to be filed on Form 10-Q. The following table sets forth the Company’s results of operations for each of the first three quarters in the year ended December 31, 2023, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations and the revision impact of the fraudulent ACH disbursements and other immaterial errors. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Three Months Ended March 31, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 521 $ 229 $ — $ 292 Service revenue 1,370 740 — 630 Total revenue 1,891 969 — 922 Cost of products 456 187 — 269 Cost of services 969 550 — 419 Selling, general and administrative expenses 292 138 2 156 Research and development expenses 64 15 — 49 Total operating expenses 1,781 890 2 893 Income (loss) from operations 110 79 (2) 29 Loss on extinguishment of debt — — — — Interest expense (83) — — (83) Other income (expense), net (3) 1 — (4) Income (loss) from continuing operations before income taxes 24 80 (2) (58) Income tax expense (benefit) 14 7 — 7 Income from continuing operations 10 73 (2) (65) Income (loss) from discontinued operations, net of tax — (73) — 73 Net income (loss) 10 — (2) 8 Net income (loss) attributable to noncontrolling interests 1 1 — — Net income attributable to noncontrolling interests of discontinued operations — (1) — 1 Net income (loss) attributable to NCR Voyix 9 — (2) 7 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 9 (65) Series A convertible preferred stock dividends (4) (4) Income (loss) from continuing operations attributable to NCR Voyix 5 (69) Income (loss) from discontinued operations, net of tax — 72 Net income (loss) attributable to NCR Voyix common stockholders 5 3 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Net income attributable to common shareholders $ 0.04 $ 0.02 Diluted earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Diluted earnings per share attributable to common shareholders $ 0.04 $ 0.02 Three months ended June 30, 2023 Six months ended June 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 576 $ 259 $ — $ 317 $ 1,097 $ 488 $ — $ 609 Service revenue 1,410 760 — 650 2,780 1,500 — 1,280 Total revenue 1,986 1,019 — 967 3,877 1,988 — 1,889 Cost of products 478 205 — 273 934 392 — 542 Cost of services 970 552 — 418 1,939 1,102 — 837 Selling, general and administrative expenses 333 169 3 167 625 307 5 323 Research and development expenses 57 15 — 42 121 30 — 91 Total operating expenses 1,838 941 3 900 3,619 1,831 5 1,793 Income (loss) from operations 148 78 (3) 67 258 157 (5) 96 Loss on extinguishment of debt — — — — — — — — Interest expense (91) — — (91) (174) — — (174) Other income (expense), net (8) 1 — (9) (11) 2 — (13) Income (loss) from continuing operations before income taxes 49 79 (3) (33) 73 159 (5) (91) Income tax expense (benefit) 30 21 (1) 8 44 28 (1) 15 Income from continuing operations 19 58 (2) (41) 29 131 (4) (106) Income (loss) from discontinued operations, net of tax (1) (58) — 57 (1) (131) — 130 Net income (loss) 18 — (2) 16 28 — (4) 24 Net income (loss) attributable to noncontrolling interests (1) (1) — — — — — — Net income (loss) attributable to noncontrolling interests from discontinued operations — 1 — (1) — — — — Net income (loss) attributable to NCR Voyix 19 — (2) 17 28 — (4) 24 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 20 (41) 29 (106) Series A convertible preferred stock dividends (4) (4) (8) (8) Income (loss) from continuing operations attributable to NCR Voyix 16 (45) 21 (114) Income (loss) from discontinued operations, net of tax (1) 58 (1) 130 Net income (loss) attributable to NCR Voyix common stockholders 15 13 20 16 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Net income attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Diluted earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Diluted earnings per share attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Three months ended September 30, 2023 Nine months ended September 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 560 $ 242 $ — $ 318 $ 1,657 $ 730 $ — $ 927 Service revenue 1,457 797 — 660 4,237 2,297 — 1,940 Total revenue 2,017 1,039 — 978 5,894 3,027 — 2,867 Cost of products 465 196 — 269 1,399 588 — 811 Cost of services 925 488 1 438 2,864 1,591 1 1,274 Selling, general and administrative expenses 331 175 6 162 956 481 11 486 Research and development expenses 54 16 — 38 175 46 — 129 Total operating expenses 1,775 875 7 907 5,394 2,706 12 2,700 Income (loss) from operations 242 164 (7) 71 500 321 (12) 167 Loss on extinguishment of debt — — — — — — — — Interest expense (85) (2) — (83) (259) (2) — (257) Other income (expense), net (44) (19) — (25) (55) (17) — (38) Income (loss) from continuing operations before income taxes 113 143 (7) (37) 186 302 (12) (128) Income tax expense (benefit) 236 49 (2) 185 280 77 (3) 200 Income from continuing operations (123) 94 (5) (222) (94) 225 (9) (328) Income (loss) from discontinued operations, net of tax — (94) — 94 (1) (225) — 224 Net income (loss) (123) — (5) (128) (95) — (9) (104) Net income (loss) attributable to noncontrolling interests 1 1 — — 1 1 — — Net income (loss) attributable to noncontrolling interest from discontinued operations — (1) — 1 — (1) — 1 Net income (loss) attributable to NCR Voyix (124) — (5) (129) (96) — (9) (105) Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations (124) (222) (95) (328) Series A convertible preferred stock dividends (4) (4) (12) (12) Income (loss) from continuing operations attributable to NCR Voyix (128) (226) (107) (340) Income (loss) from discontinued operations, net of tax — 93 (1) 223 Net income (loss) attributable to NCR Voyix common stockholders (128) (133) (108) (117) Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Net income attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) Diluted earnings (loss) per share: Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Diluted earnings per share attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) There is no impact to our Consolidated Statements of Comprehensive Income (Loss) for each of the first three quarterly periods in 2023, other than the impact to Net income (loss) as presented above. There is no impact to our Consolidated Statements of Changes in Stockholders’ Equity for the quarterly periods in 2023 other than the impact to Retained earnings as a result of the changes in Net income (loss) as presented above. The impacts to our Consolidated Balance Sheets, prior to being recast for discontinued operations, as of March 31, 2023, June 30, 2023 and September 30, 2023, was as follows: • to correct our March 31, 2023 Accounts receivable, net, Total current assets and Total assets from $1,009 million, $3,070 million and $11,442 million, respectively to $1,007 million, $3,068 million and $11,440 million, respectively, and to correct Total liabilities and stockholders’ equity from $11,442 million to $11,440 million. • to correct our June 30, 2023 Accounts receivable, net, Total current assets, Deferred income taxes and Total assets from $986 million, $2,954 million, $589 million and $11,279 million, respectively, to $981 million, $2,949 million, $590 million, and $11,275 million, respectively, and to correct Total liabilities and stockholders’ equity from $11,279 million to $11,275 million. • to correct our September 30, 2023 Accounts receivable, net, Prepaid and other current assets, Total current assets, Deferred tax assets and Total assets from $950 million, $473 million, $3,093 million, $430 million and $13,223 million, respectively, to $940 million, $472 million, $3,082 million, $433 million and $13,215 million, respectively, and to correct Other current liabilities, Total current liabilities, total liabilities and Total liabilities and stockholders’ equity from $660 million, $2,680 million, $11,576 million and $13,223 million, respectively, to $661 million, $2,681 million, $11,577 million and $13,215 million, respectively. There is no net impact of the adjustments described above to our Consolidated Statements of Cash Flows to “Net cash provided by operating activities” for each of the first three quarterly periods in 2023, as the impact to Net income (loss) is offset by the changes to operating assets and liabilities, net of effects of business acquired noted above. |
REVISED 2023 QUARTERLY FINANCIA
REVISED 2023 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
REVISED 2023 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 19. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth the Company’s unaudited results of operations for each of the quarters in the fiscal years 2023 and 2022, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations. The December 31, 2023 quarterly information has been revised for the impact of the fraudulent ACH disbursements, as discussed in Note 20, “Revised 2023 Quarterly Financial Information (Unaudited)”. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. In millions, except per share amounts First Quarter Second Quarter Third Quarter Fourth Quarter 2023 Total revenue $ 922 $ 967 $ 978 $ 963 Gross margin 234 276 271 181 Income (loss) from operations 29 67 71 (130) Income from continuing operations (65) (41) (222) (258) Income (loss) from discontinued operations, net of taxes 73 57 94 (61) Net income (loss) 8 16 (128) (319) Net (loss) income attributable to common stockholders 3 13 (133) (322) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Net income attributable to common shareholders 0.02 0.09 (0.94) (2.28) Diluted earnings (loss) per share: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Diluted earnings per share attributable to common shareholders 0.02 0.09 (0.94) (2.28) 2022 Total revenue $ 917 $ 950 $ 960 $ 966 Gross margin 210 224 281 263 Income (loss) from operations (1) 24 55 58 Income from continuing operations (96) (57) (38) (12) Income (loss) from discontinued operations, net of taxes 61 100 107 (6) Net income (loss) (35) 43 69 (18) Net (loss) income attributable to common stockholders (38) 37 65 (20) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Net income attributable to common shareholders (0.28) 0.27 0.47 (0.15) Diluted earnings (loss) per share: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Diluted earnings per share attributable to common shareholders (0.28) 0.27 0.47 (0.15) 20. REVISED 2023 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) As described in Note 1, “Basis of Presentation and Significant Accounting Policies”, in February 2024, the Company identified fraudulent ACH disbursements from a Company bank account. Through September 30, 2023, the Company incorrectly recorded approximately $11 million in an accounts receivable clearing account instead of as operating expenses, of which $2 million related to annual periods prior to 2023. The Company evaluated the impact of the errors and concluded they are not material to any previously issued interim consolidated financial statements. As a result of these errors, and the related income tax effects, the Company has revised the financial information for NCR Voyix as of and for each of the periods ended March 31, 2023, June 30, 2023 and September 30, 2023. Additionally, the Company corrected other immaterial errors which originally resulted in the understatement of operating expenses related to prepaid assets and accrued expenses. The Company intends to reflect these revisions in its Quarterly Reports to be filed on Form 10-Q. The following table sets forth the Company’s results of operations for each of the first three quarters in the year ended December 31, 2023, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations and the revision impact of the fraudulent ACH disbursements and other immaterial errors. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Three Months Ended March 31, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 521 $ 229 $ — $ 292 Service revenue 1,370 740 — 630 Total revenue 1,891 969 — 922 Cost of products 456 187 — 269 Cost of services 969 550 — 419 Selling, general and administrative expenses 292 138 2 156 Research and development expenses 64 15 — 49 Total operating expenses 1,781 890 2 893 Income (loss) from operations 110 79 (2) 29 Loss on extinguishment of debt — — — — Interest expense (83) — — (83) Other income (expense), net (3) 1 — (4) Income (loss) from continuing operations before income taxes 24 80 (2) (58) Income tax expense (benefit) 14 7 — 7 Income from continuing operations 10 73 (2) (65) Income (loss) from discontinued operations, net of tax — (73) — 73 Net income (loss) 10 — (2) 8 Net income (loss) attributable to noncontrolling interests 1 1 — — Net income attributable to noncontrolling interests of discontinued operations — (1) — 1 Net income (loss) attributable to NCR Voyix 9 — (2) 7 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 9 (65) Series A convertible preferred stock dividends (4) (4) Income (loss) from continuing operations attributable to NCR Voyix 5 (69) Income (loss) from discontinued operations, net of tax — 72 Net income (loss) attributable to NCR Voyix common stockholders 5 3 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Net income attributable to common shareholders $ 0.04 $ 0.02 Diluted earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Diluted earnings per share attributable to common shareholders $ 0.04 $ 0.02 Three months ended June 30, 2023 Six months ended June 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 576 $ 259 $ — $ 317 $ 1,097 $ 488 $ — $ 609 Service revenue 1,410 760 — 650 2,780 1,500 — 1,280 Total revenue 1,986 1,019 — 967 3,877 1,988 — 1,889 Cost of products 478 205 — 273 934 392 — 542 Cost of services 970 552 — 418 1,939 1,102 — 837 Selling, general and administrative expenses 333 169 3 167 625 307 5 323 Research and development expenses 57 15 — 42 121 30 — 91 Total operating expenses 1,838 941 3 900 3,619 1,831 5 1,793 Income (loss) from operations 148 78 (3) 67 258 157 (5) 96 Loss on extinguishment of debt — — — — — — — — Interest expense (91) — — (91) (174) — — (174) Other income (expense), net (8) 1 — (9) (11) 2 — (13) Income (loss) from continuing operations before income taxes 49 79 (3) (33) 73 159 (5) (91) Income tax expense (benefit) 30 21 (1) 8 44 28 (1) 15 Income from continuing operations 19 58 (2) (41) 29 131 (4) (106) Income (loss) from discontinued operations, net of tax (1) (58) — 57 (1) (131) — 130 Net income (loss) 18 — (2) 16 28 — (4) 24 Net income (loss) attributable to noncontrolling interests (1) (1) — — — — — — Net income (loss) attributable to noncontrolling interests from discontinued operations — 1 — (1) — — — — Net income (loss) attributable to NCR Voyix 19 — (2) 17 28 — (4) 24 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 20 (41) 29 (106) Series A convertible preferred stock dividends (4) (4) (8) (8) Income (loss) from continuing operations attributable to NCR Voyix 16 (45) 21 (114) Income (loss) from discontinued operations, net of tax (1) 58 (1) 130 Net income (loss) attributable to NCR Voyix common stockholders 15 13 20 16 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Net income attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Diluted earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Diluted earnings per share attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Three months ended September 30, 2023 Nine months ended September 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 560 $ 242 $ — $ 318 $ 1,657 $ 730 $ — $ 927 Service revenue 1,457 797 — 660 4,237 2,297 — 1,940 Total revenue 2,017 1,039 — 978 5,894 3,027 — 2,867 Cost of products 465 196 — 269 1,399 588 — 811 Cost of services 925 488 1 438 2,864 1,591 1 1,274 Selling, general and administrative expenses 331 175 6 162 956 481 11 486 Research and development expenses 54 16 — 38 175 46 — 129 Total operating expenses 1,775 875 7 907 5,394 2,706 12 2,700 Income (loss) from operations 242 164 (7) 71 500 321 (12) 167 Loss on extinguishment of debt — — — — — — — — Interest expense (85) (2) — (83) (259) (2) — (257) Other income (expense), net (44) (19) — (25) (55) (17) — (38) Income (loss) from continuing operations before income taxes 113 143 (7) (37) 186 302 (12) (128) Income tax expense (benefit) 236 49 (2) 185 280 77 (3) 200 Income from continuing operations (123) 94 (5) (222) (94) 225 (9) (328) Income (loss) from discontinued operations, net of tax — (94) — 94 (1) (225) — 224 Net income (loss) (123) — (5) (128) (95) — (9) (104) Net income (loss) attributable to noncontrolling interests 1 1 — — 1 1 — — Net income (loss) attributable to noncontrolling interest from discontinued operations — (1) — 1 — (1) — 1 Net income (loss) attributable to NCR Voyix (124) — (5) (129) (96) — (9) (105) Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations (124) (222) (95) (328) Series A convertible preferred stock dividends (4) (4) (12) (12) Income (loss) from continuing operations attributable to NCR Voyix (128) (226) (107) (340) Income (loss) from discontinued operations, net of tax — 93 (1) 223 Net income (loss) attributable to NCR Voyix common stockholders (128) (133) (108) (117) Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Net income attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) Diluted earnings (loss) per share: Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Diluted earnings per share attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) There is no impact to our Consolidated Statements of Comprehensive Income (Loss) for each of the first three quarterly periods in 2023, other than the impact to Net income (loss) as presented above. There is no impact to our Consolidated Statements of Changes in Stockholders’ Equity for the quarterly periods in 2023 other than the impact to Retained earnings as a result of the changes in Net income (loss) as presented above. The impacts to our Consolidated Balance Sheets, prior to being recast for discontinued operations, as of March 31, 2023, June 30, 2023 and September 30, 2023, was as follows: • to correct our March 31, 2023 Accounts receivable, net, Total current assets and Total assets from $1,009 million, $3,070 million and $11,442 million, respectively to $1,007 million, $3,068 million and $11,440 million, respectively, and to correct Total liabilities and stockholders’ equity from $11,442 million to $11,440 million. • to correct our June 30, 2023 Accounts receivable, net, Total current assets, Deferred income taxes and Total assets from $986 million, $2,954 million, $589 million and $11,279 million, respectively, to $981 million, $2,949 million, $590 million, and $11,275 million, respectively, and to correct Total liabilities and stockholders’ equity from $11,279 million to $11,275 million. • to correct our September 30, 2023 Accounts receivable, net, Prepaid and other current assets, Total current assets, Deferred tax assets and Total assets from $950 million, $473 million, $3,093 million, $430 million and $13,223 million, respectively, to $940 million, $472 million, $3,082 million, $433 million and $13,215 million, respectively, and to correct Other current liabilities, Total current liabilities, total liabilities and Total liabilities and stockholders’ equity from $660 million, $2,680 million, $11,576 million and $13,223 million, respectively, to $661 million, $2,681 million, $11,577 million and $13,215 million, respectively. There is no net impact of the adjustments described above to our Consolidated Statements of Cash Flows to “Net cash provided by operating activities” for each of the first three quarterly periods in 2023, as the impact to Net income (loss) is offset by the changes to operating assets and liabilities, net of effects of business acquired noted above. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | Column A Column B Column C Column D Column E Additions Description Balance at Beginning of Period Charged to Costs & Expenses Charged to Other Accounts Deductions Balance at End of Period Year Ended December 31, 2023 Allowance for doubtful accounts $21 $26 $— $15 $32 Deferred tax asset valuation allowance $274 $25 $5 $93 $211 Year Ended December 31, 2022 Allowance for doubtful accounts $19 $15 $— $13 $21 Deferred tax asset valuation allowance $225 $81 $14 $46 $274 Year Ended December 31, 2021 Allowance for doubtful accounts $40 $8 $— $29 $19 Deferred tax asset valuation allowance $209 $27 $13 $24 $225 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | ||||||||
Net income (loss) | $ (129) | $ 17 | $ 7 | $ 24 | $ (105) | $ (423) | $ 60 | $ 97 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the periods reported. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by macroeconomic pressures and geopolitical challenges. The ultimate impact on our overall financial condition and operating results will depend on supply chain challenges and cost escalations including materials, interest, labor and freight, and any additional governmental and public actions taken in response. As a result, our accounting estimates and assumptions may change over time as a consequence of the effects these external factors. Such changes could result in future impairments of goodwill, intangible assets, long-lived assets, incremental credit losses on accounts receivable and decreases in the carrying amount of our tax assets. |
Subsequent Events | Evaluation of Subsequent Events The Company evaluated subsequent events through the date that our Consolidated Financial Statements were issued. Other than the items discussed within the Notes to Consolidated Financial Statements, no matters were identified that required adjustment of the Consolidated Financial Statements or additional disclosure. |
Basis of Consolidation | Basis of Consolidation |
Reclassifications | Reclassifications |
Revenue Recognition | Revenue Recognition The Company records revenue, net of sales tax, when the following five steps have been completed: • Identification of the contract(s) with a customer • Identification of the performance obligation(s) in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy performance obligations The Company records revenue when, or as, performance obligations are satisfied by transferring control of a promised good or service to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for products and services. The Company evaluates the transfer of control primarily from the customer’s perspective where the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The Company does not adjust the transaction price for taxes collected from customers, as those amounts are netted against amounts remitted to government authorities. The Company enters contracts that include multiple distinct performance obligations, including hardware, software, professional consulting and managed services, payment processing services, installation services and maintenance support services. A promise to a customer is considered distinct when the product or service is both capable of being distinct, and distinct in the context of the contract. For these arrangements, the Company allocates the transaction price, at contract inception, to each distinct performance obligation on a relative standalone selling price basis. The primary method used to estimate standalone selling price is the price that the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. For hardware products, control is generally transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the products, which generally coincides with when the customer has assumed title and risk of loss of the goods sold. In certain instances, customer acceptance is required prior to the passage of title and risk of loss of the delivered products. In such cases, revenue is not recognized until the customer acceptance is obtained. Delivery, acceptance, and transfer of title and risk of loss generally occur in the same reporting period. The Company’s customers may request that delivery and passage of title and risk of loss occur on a bill and hold basis. For the periods ending December 31, 2023, 2022, and 2021, the revenue recognized from bill and hold transactions approximated less than 2% of total revenue, respectively. Hardware products may also be included in an As-a-service package and sold in a bundle with managed services. In these packages, title to the hardware is not transferred to the customer and revenue is recognized in consideration of lease accounting standards, depending on the terms and conditions in the contract. Most hardware leases embedded in our As-a-service contracts qualify for classification as operating leases. Revenue from the hardware operating leases in an As-a-service package is recognized over the term of the contract, which is the same pattern and timing as the services in the contract. Software products may be sold as perpetual licenses, term-based licenses, cloud-enabled and software as a service (“SaaS”). Perpetual license revenue is recognized at a point in time when control transfers to the customer and is reported within product revenue. Control is typically transferred when the customer takes possession of, or has access to, the software. Term-based license revenue is recognized at a point in time upon the commencement of the committed term of the contract, concurrent with the possession of the license, and reported within product revenue. The committed term of the contract is typically one month to one year due to customer termination rights. If the amount of consideration the Company expects to be paid in exchange for the licenses depends on customer usage, revenue is recognized when the usage occurs. SaaS primarily consists of fees to provide our customers access to our platform and cloud-based applications for a specified contract term. Revenue from SaaS contracts is recognized as variable consideration directly allocated based on customer usage or on a ratable basis over the contract term beginning on the date that our service is made available to the customer. SaaS is reported as part of our software and services revenue. The Company sells some product solutions that include a combination of cloud-enabled and on-premise term-based software licenses for a specified contract term. Significant judgment is required to determine if the products and services represent distinct promises to the customer or if they should be combined into one performance obligation. When they are combined into one performance obligation, revenue is recognized ratably over the contract term for which the service is provided. In addition to SaaS, our services revenue includes professional consulting, payment processing revenue, managed services, installation and maintenance support. Professional consulting primarily consists of software implementation, integration, customization and optimization services. Revenue from professional consulting contracts is recognized when the services are completed or customer acceptance of the service is received, if required. For installation and maintenance, control is transferred as the services are provided or ratably over the service period, or, if applicable, after customer acceptance of the service. For recurring services that we perform over a contract term, we analyze if the services are performed evenly throughout the term for fixed consideration. If so, we ratably recognize the corresponding consideration over the committed term. Otherwise, we apply the ‘as invoiced’ practical expedient, for performance obligations satisfied over time, if the amount we may invoice corresponds directly with the value to the customer of the Company’s performance to date. This expedient permits us to recognize revenue in the amount we invoice the customer. Payment processing revenue includes surcharge and other fees paid by cardholders and/or the cardholder’s financial institutions for the use of processing services. Surcharge revenues are recognized daily as the associated transactions are processed. Relative to credit card processing, revenue is comprised of fees charged to the Company’s customers, net of interchange fees and assessments charged by the credit card associations and payment networks, which are pass-through charges collected on behalf of the card issuers and payment networks. Under our managed service agreements, the Company provides various forms of services, including customer service, processing and other services, under one contract package. The Company typically receives a monthly service fee, fee per transaction, or fee per service provided in return for providing the agreed-upon services. The managed services fees are recognized as the related services are provided to the customers. The nature of our arrangements gives rise to several types of variable consideration including service level agreement credits, stock rotation rights, trade-in credits and volume-based rebates. At contract inception, we include this variable consideration in our transaction price when there is a basis to reasonably estimate the amount of the fee and it is probable there will not be a significant reversal. These estimates are generally made using the expected value method and a portfolio approach, based on historical experience, anticipated performance and our best judgment at the time. These estimates are reassessed at each reporting date. Because of our confidence in estimating these amounts, they are included in the transaction price of our contracts and the associated remaining performance obligations. Payment terms with our customers are established based on industry and regional practices and generally do not exceed 30 days. We do not typically include extended payment terms in our contracts with customers. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. If the period between transfer of the promised product or service and payment is more than one year, the Company analyzes whether a significant financing component is present. If so, the Company adjusts the total consideration to reflect the significant financing component. We account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products, rather than as a separate performance obligation. Accordingly, we record amounts billed for shipping and handling costs as a component of net product sales, and classify such costs as a component of cost of products. In addition to the standard product warranty, the Company periodically offers extended warranties to its customers in the form of product maintenance services. For maintenance contracts that have been combined with product contracts under the revenue guidance, the Company defers revenue at an amount based on the relative standalone selling price allocation, and recognizes the deferred revenue over the service term. For non-combined maintenance contracts, the Company defers the stated amount of the separately priced service and recognizes the deferred revenue over the service term. Remaining Performance Obligations Remaining performance obligations represent the transaction price of contracts for which products have not been delivered or services have not been performed. As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.6 billion. The Company expects to recognize revenue on approximately three-quarters of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. The majority of our professional services are expected to be recognized over the next 12 months but this is contingent upon a number of factors, including customers’ needs and schedules. The Company has made three elections which affect the value of remaining performance obligations described above. We do not disclose remaining performance obligations for contracts where variable consideration is directly allocated based on usage or when the original expected duration is one year or less. Additionally, we do not disclose remaining performance obligations for contracts where we recognize revenue from the satisfaction of the performance obligation in accordance with the ‘right to invoice’ practical expedient. Contract Assets and Liabilities Contract assets include unbilled amounts where the right to payment is not solely subject to the passage of time. Amounts may not exceed their net realizable value. Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. If the net position is a contract asset, the current portion is included in Prepaid and other current assets and the non-current portion is included in Other assets in the Consolidated Balance Sheet. If the net position is a contract liability, the current portion is included in Contract liabilities and the non-current portion is included in Other liabilities in the Consolidated Balance Sheet. As of December 31, 2023 and 2022, no contracts were in a net asset position. |
Warranty and Sales Returns | Warranty and Sales Returns |
Research and Development Costs | Research and Development Costs |
Advertising | Advertising |
Stock-based Compensation | Stock-based Compensation |
Income Taxes | Income Taxes Income tax expense is provided based on income before income taxes. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. These deferred taxes are determined based on the enacted tax rates expected to apply in the periods in which the deferred assets or liabilities are expected to be settled or realized. The Company records valuation allowances related to its deferred income tax assets when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being sustained upon examination by authorities. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law and until such time that the related tax benefits are recognized. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash |
Accounts Receivable, net and Allowance for Credit Losses on Accounts Receivable | Accounts Receivable, net Accounts receivable, net includes amounts billed and currently due from customers as well as amounts unbilled that typically result from sales under contracts where revenue recognized exceeds the amount billed to the customer and where the Company has an unconditional right to consideration. The amounts due are stated at their net estimated realizable value. The components of accounts receivable are summarized as follows: In millions December 31, 2023 December 31, 2022 Accounts receivable Trade $ 372 $ 505 Other 141 66 Accounts receivable, gross 513 571 Less: allowance for credit losses (32) (21) Total accounts receivable, net $ 481 $ 550 Allowance for Credit Losses on Accounts Receivable |
Inventories | Inventories |
Deferred Commissions | Deferred Commissions Our incremental costs of obtaining a contract, which consist of certain sales commissions, primarily for our SaaS revenue, are deferred and amortized on a straight-line basis over the period of expected benefit. We determined the period of expected benefit by taking into consideration customer contracts, the estimated life of the customer relationship, including renewals when the renewal commission is not commensurate with the initial commission, the expected life of the underlying technology and other factors. We classify deferred commissions as current or non-current based on the timing of when we expect to recognize the expense. The current and non-current portions of deferred commissions are included in Prepaid and other current assets and Other assets, respectively, in the Consolidated Balance Sheets. Amortization of deferred commissions is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. |
Set-up Fees and Costs | Set-up Fees and Costs |
Settlement Processing Assets and Obligations | Settlement Processing Assets and Obligations Funds settlement refers to the process of transferring funds for sales and credits between card issuers and merchants. Depending on the type of transaction, either the credit card interchange system or the debit network is used to transfer the information and funds in either direction between the sponsoring bank and card issuing bank to complete the link between merchants and card issuers. In certain of our processing arrangements, merchant funding occurs after the sponsoring bank or the Company receives the funds from the card issuer through the card networks, creating a settlement obligation to the merchant on the Company’s Consolidated Balance Sheet. In a limited number of other arrangements, the sponsoring bank funds the merchants before it receives the net settlement funds from the card networks, creating a settlement asset on the Company’s Consolidated Balance Sheet. Additionally, relative to credit card transactions, certain of the Company’s sponsoring banks collect the gross revenue from the merchants, pay the interchange fees and assessments to the credit card associations, collect their fees for processing and pay the Company a net residual payment representing the Company’s fees for the services. In these instances, the Company does not reflect the related settlement processing assets and obligations in its Consolidated Balance Sheet. |
Capitalized Software | Capitalized Software Certain direct development costs associated with internal-use software are capitalized within Other assets and amortized over the estimated useful lives of the resulting software. The Company typically amortizes capitalized internal-use software on a straight-line basis over four developed will not be completed or placed into service, the internal-use software is reported at the lower of the carrying amount or fair value. |
Software to be Sold, Leased, or Otherwise Marketed | Costs incurred for the development of software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs are included within Other assets and are amortized on a sum-of-the-years’ digits or straight-line basis over the estimated useful lives ranging from three |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over the fair value of the net tangible and identifiable intangible assets of businesses acquired. Goodwill is tested at the reporting unit level for impairment on an annual basis during the fourth quarter or more frequently if certain events occur indicating that the carrying value of goodwill may be impaired. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include a decline in expected cash flows, a significant adverse change in legal factors or in the business climate, a decision to sell a business, unanticipated competition, or slower growth rates, among others. Consistent with the examples of such events and circumstances given in the accounting guidance, we believe that a goodwill impairment test should be performed immediately before and after a reorganization of our reporting structure when the reorganization would affect the composition of one or more of our reporting units. In this circumstance, performing the impairment test immediately before and after the reorganization would help to confirm that the reorganization is not potentially masking a goodwill impairment charge. In the evaluation of goodwill for impairment, we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If, under the quantitative assessment, the fair value of a reporting unit is less than its carrying amount, then the amount of the impairment loss, if any, is determined based on the amount by which the carrying amount exceeds the fair value up to the total value of goodwill assigned to the reporting unit. Fair values of the reporting units are estimated using a weighted methodology considering the output from both the income and market approaches. The income approach incorporates the use of discounted cash flow (“DCF”) analysis. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including revenue growth rates, EBITDA margins and discount rates. Several of these assumptions vary among reporting units. The cash flow forecasts are generally based on approved strategic operating plans. The market approach is performed using the Guideline Public Companies (“GPC”) method which is based on earnings multiple data. We perform a reconciliation between our market capitalization and our estimate of the aggregate fair value of the reporting units, including consideration of a control premium. Refer to Note 4, “Goodwill and Purchased Intangible Assets”, for further discussion. Acquired intangible assets other than goodwill are amortized over their weighted average amortization period unless they are determined to be indefinite. Acquired intangible assets are carried at cost, less accumulated amortization. For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish the carrying value. |
Property, Plant and Equipment | Property, Plant and Equipment |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets |
Lessee | Lessee We lease property, vehicles and equipment under operating and financing leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. We determine the lease term by assuming the exercise of renewal options that are reasonably certain. Leases with a lease term of 12 months or less at inception are not recorded on our Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term in our Consolidated Statement of Operations. Our leases may include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Our incremental borrowing rate is based on a credit-adjusted risk-free rate at commencement date, which best approximates a secured rate over a similar term of lease. Additionally, we do not separate lease and non-lease components for any asset classes, except for those leases embedded in certain service arrangements. Fixed and in-substance fixed payments are included in the recognition of the operating and financing assets and lease liabilities, however, variable lease payments, other than those based on a rate or index, are recognized in the Consolidated Statements of Operations in the period in which the obligation for those payments is incurred. The Company’s variable lease payments generally relate to payments tied to various indices, non-lease components and payments above a contractual minimum fixed payment. |
Lessor | Lessor We have various arrangements for certain point-of-sale equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material. |
Pension and Postemployment Benefits | Pension and Postemployment Benefits The Company has significant pension and postemployment benefit costs, which are developed from actuarial valuations. Actuarial assumptions are established to anticipate future events and are used in calculating the expense and liabilities relating to these plans. These factors include assumptions the Company makes about interest rates, expected investment return on plan assets, rate of increase in healthcare costs, involuntary turnover rates, and rates of future compensation increases. In addition, the Company also uses subjective factors, such as withdrawal rates and mortality rates to develop the Company’s valuations. The Company generally reviews and updates these assumptions on an annual basis. The Company is required to consider current market conditions, including changes in interest rates, in making |
Environmental and Legal Contingencies | Environmental and Legal Contingencies In the normal course of business, the Company is subject to various proceedings, lawsuits, claims and other matters, including, for example, those that relate to the environment and health and safety, labor and employment, employee benefits, import/export compliance, intellectual property, data privacy and security, product liability, commercial disputes and regulatory compliance, among others. Additionally, the Company is subject to diverse and complex laws, regulations, and standards including those relating to corporate governance, public disclosure and reporting, environmental safety and the discharge of materials into the environment, product safety, import and export compliance, data privacy and security, antitrust and competition, government contracting, anti-corruption, and labor and human resources, which are rapidly changing and subject to many possible changes in the future. Compliance with these laws and regulations, including changes in accounting standards, taxation requirements, and federal securities laws, among others, may create a substantial burden on, and substantially increase the costs to the Company or could have an impact on the Company’s future operating results. The Company believes that the amounts provided in its Consolidated Financial Statements are adequate in light of the probable and estimable liabilities. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various lawsuits, claims, legal proceedings and other matters, including the Fox River and Kalamazoo River environmental matters discussed in Note 11, “Commitments and Contingencies”, and to comply with applicable laws and regulations, will not exceed the amounts reflected in the Company’s Consolidated Financial Statements or will not have a material adverse effect on the Company’s consolidated results of operations, financial condition or cash flows. Any costs that may be incurred in excess of those amounts provided as of December 31, 2023 cannot currently be reasonably determined or are not currently considered probable. The costs and insurance recoveries relating to certain environmental obligations associated with discontinued operations, including those relating to the Fox River, Kalamazoo River and Ebina matters, are presented in Income (loss) from discontinued operations, net of tax, in the Consolidated Statements of Operations. |
Foreign Currency | Foreign Currency |
Derivative Instruments | Derivative Instruments In the normal course of business, the Company enters into various financial instruments, including derivative financial instruments. The Company accounts for derivatives as either assets or liabilities in the Consolidated Balance Sheets at fair value and recognizes the resulting gains or losses as adjustments to earnings or other comprehensive income. For derivative instruments that are designated and qualify as hedging instruments, the Company formally documents the relationship between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. Hedging activities are transacted only with highly rated institutions, reducing exposure to credit risk in the event of nonperformance. Additionally, the Company completes assessments related to the risk of counterparty nonperformance on a regular basis. The accounting for changes in fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company has designated the hedging instrument, based on the exposure being hedged, as a fair value hedge, a cash flow hedge or a hedge of a net investment in a foreign operation. For derivative instruments designated as fair value hedges, the effective portion of the hedge is recorded as an offset to the change in the fair value of the hedged item, and the ineffective portion of the hedge, if any, is recorded in the Consolidated Statement of Operations. For derivative instruments designated as cash flow hedges and determined to be highly effective, the gains or losses are deferred in Accumulated other comprehensive loss and recognized in the determination of income as adjustments of carrying amounts when the underlying hedged transaction is realized, canceled or otherwise terminated. When hedging certain foreign currency transactions of a long-term investment nature (net investments in foreign operations), gains and losses are recorded in the currency translation adjustment component of Accumulated other comprehensive loss. Gains and losses on foreign exchange contracts that are not used to hedge currency transactions of a long-term investment nature, or that are not designated as cash flow or fair value hedges, are recognized in Other income (expense), net as exchange rates change. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is defined as an exit price, representing an amount that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance prioritizes the inputs used to measure fair value into the following three-tier fair value hierarchy: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities • Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, that are observable either directly or indirectly • Level 3: Unobservable inputs for which there is little or no market data Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes to the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company measures its financial assets and financial liabilities at fair value based on one or more of the following three valuation techniques: • Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. • Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). • Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option pricing and excess earnings models). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , with new guidance for contract assets and contract liabilities acquired in a business combination. The new guidance requires contract assets and contract liabilities, such as deferred revenue, acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers . Prior to the issuance of this guidance, contract assets and contract liabilities were recognized by the acquirer at fair value on the acquisition date. The accounting standards update was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted and applied prospectively to acquisitions occurring on or after the effective date. The Company has adopted this accounting standard update which did not have an impact on the Company’s net income, cash flows, earnings per share or financial condition but may impact future acquisitions. Although there are other new accounting pronouncements issued by the FASB and adopted by or effective for the Company, the Company does not believe any of these accounting pronouncements had a material impact on its consolidated financial statements. Accounting Pronouncements Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendment enhances disclosures of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”), extend certain annual disclosures to interim periods, and permit more than one measure of segment profit or loss to be reported under certain conditions. The amendment is effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendment is permitted, including adoption in any interim periods for which financial statements have not been issued. The Company is currently evaluating the guidance and its impact to the financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This guidance requires disclosure of specific categories in the rate reconciliation and provides additional information for reconciling items that meet a specified quantitative threshold. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures. Although there are other new accounting pronouncements issued by the FASB and not yet adopted by or effective for the Company, the Company does not believe any of these accounting pronouncements will have a material impact on its consolidated financial statements. |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The reconciliation of cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows is as follows: In millions Balance Sheet Location December 31, 2023 December 31, 2022 December 31, 2021 Cash and cash equivalents Cash and cash equivalents $ 262 $ 221 $ 221 Short term restricted cash Restricted cash — 1 — Long term restricted cash Other assets 2 — 1 Funds held for client Restricted cash — — 48 Cash included in settlement processing assets Restricted cash 21 16 16 Total cash, cash equivalents and restricted cash $ 285 $ 238 $ 286 Cash, cash equivalents and restricted cash of discontinued operations — 502 463 Total cash, cash equivalents and restricted cash $ 285 $ 740 $ 749 |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of accounts receivable are summarized as follows: In millions December 31, 2023 December 31, 2022 Accounts receivable Trade $ 372 $ 505 Other 141 66 Accounts receivable, gross 513 571 Less: allowance for credit losses (32) (21) Total accounts receivable, net $ 481 $ 550 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table presents the net contract asset and contract liability balances: In millions Location in the Consolidated Balance Sheet December 31, 2023 December 31, 2022 Current portion of contract liabilities Contract liabilities $ 197 $ 191 Non-current portion of contract liabilities Other liabilities $ 19 $ 18 |
Schedule of Capitalized Computer Software | The following table identifies the activity relating to total capitalized software: In millions 2023 2022 2021 Beginning balance as of January 1 $ 463 $ 394 $ 354 Capitalization 231 240 205 Amortization (195) (169) (147) Impairment (3) — (18) Capitalized software acquired or disposed of and other adjustments (10) (2) — Ending balance as of December 31 $ 486 $ 463 $ 394 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table presents the major categories of income (loss) from discontinued operations related to the Spin-Off of NCR Atleos: For the year ended December 31 In millions 2023 (1) 2022 2021 Product revenue $ 784 1,077 1,017 Service revenue 2,464 2,974 2,447 Total revenue 3,248 4,051 3,464 Cost of products 633 946 818 Cost of services 1,715 2,225 1,678 Selling, general and administrative expenses 537 457 447 Research and development expenses 52 70 73 Total operating expenses 2,937 3,698 3,016 Income from discontinued operations 311 353 448 Interest expense (6) — — Other income (expense), net (23) (11) 102 Income (loss) from discontinued operations before income taxes 282 342 550 Income tax expense (benefit) 69 76 115 Net income (loss) from discontinued operations 213 266 435 Net income (loss) attributable to noncontrolling interests — (1) 1 Net income (loss) from discontinued operations related to NCR Atleos 213 267 434 (1) Represents operations of NCR Atleos through October 16, 2023, versus the full year for 2022 and 2021. The following table represents the major classes of assets and liabilities of discontinued operations: In millions December 31, 2022 Assets Current assets Cash and cash equivalents $ 284 Accounts receivable, net of allowances 533 Inventories 415 Restricted cash 211 Prepaid and other current assets 247 Total current assets 1,690 Property, plant and equipment, net 436 Goodwill * 2,476 Intangibles, net 729 Operating lease assets 99 Prepaid pension cost 177 Deferred income taxes 269 Other assets 152 Noncurrent assets 4,338 Total assets of discontinued operations $ 6,028 Liabilities and stockholder's equity Current liabilities Short-term borrowings 3 Accounts payable 348 Payroll and benefits liabilities 120 Contract liabilities 346 Settlement liabilities 212 Other current liabilities 324 Total current liabilities 1,353 Long-term debt 9 Pension and indemnity plan liabilities 457 Postretirement and postemployment benefits liabilities 53 Income tax accruals 39 Operating lease liabilities 67 Other liabilities 139 Noncurrent liabilities 764 Total liabilities of discontinued operations $ 2,117 * Goodwill allocated to discontinued operations represents the amount of goodwill attributable to NCR Atleos which was determined on a relative fair value basis. The following table presents selected financial information related to cash flows from discontinued operations: For the year ended December 31 In millions 2023 * 2022 2021 Net cash provided by/(used in) operating activities $ 283 $ 243 $ 803 Net cash provided by/(used in) investing activities (71) (123) (1,789) Net cash provided by/(used in) financing activities — 10 (3) * Represents Atleos operations from January 1, 2023 through October 16, 2023, versus a full year of NCR Atleos operations in 2022 and 2021. |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The purchase consideration transferred consisted of the following: In millions Purchase Consideration Cash paid to common stockholders and holders of certain restricted stock and stock option awards $ 1,775 Debt repaid by the Company on behalf of Cardtronics 809 Transaction costs paid by the Company on behalf of Cardtronics 57 Fair value of converted Cardtronics awards attributable to pre-combination services 19 Settlement of pre-existing relationships 14 Total purchase consideration $ 2,674 |
Schedule of Business Acquisitions, by Acquisition | The final allocation of the purchase price was as follows: In millions Fair Value Cash acquired $ 2 Tangible assets acquired 3 Acquired intangible assets other than goodwill 38 Acquired goodwill 40 Deferred tax liabilities (10) Liabilities assumed (4) Total purchase consideration $ 69 The final allocation of the purchase price for Cardtronics was as follows: In millions Fair Value Assets acquired Cash and restricted cash $ 291 Trade accounts receivable 85 Prepaid expenses, other current assets and other assets 193 Property, plant and equipment 362 Acquisition-related intangible assets 864 Total assets acquired $ 1,795 Liabilities assumed 733 Net assets acquired, excluding goodwill 1,062 Total purchase consideration 2,674 Goodwill $ 1,612 In millions Fair Value Cash acquired $ 2 Tangible assets acquired 7 Acquired intangible assets other than goodwill 52 Acquired goodwill 81 Deferred tax liabilities (3) Liabilities assumed (13) Total purchase consideration $ 126 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of the intangible assets acquired as of the acquisition date: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 5 10 Technology - Software 30 13 Non-compete 1 1 Tradenames 2 2 Total acquired intangible assets $ 38 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. The following table sets forth the components of the intangible assets acquired as of the acquisition date: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 373 15 Technology - Software 441 8 Non-compete 1 1 Tradenames 49 4 Total acquired intangible assets $ 864 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. The following table sets forth the components of the intangible assets acquired as of the acquisition dates: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 11 10 Technology - Software 36 8 Non-compete 1 1 Tradenames 4 9 Total acquired intangible assets $ 52 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. |
BUSINESS COMBINATIONS AND DIV_2
BUSINESS COMBINATIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The final allocation of the purchase price was as follows: In millions Fair Value Cash acquired $ 2 Tangible assets acquired 3 Acquired intangible assets other than goodwill 38 Acquired goodwill 40 Deferred tax liabilities (10) Liabilities assumed (4) Total purchase consideration $ 69 The final allocation of the purchase price for Cardtronics was as follows: In millions Fair Value Assets acquired Cash and restricted cash $ 291 Trade accounts receivable 85 Prepaid expenses, other current assets and other assets 193 Property, plant and equipment 362 Acquisition-related intangible assets 864 Total assets acquired $ 1,795 Liabilities assumed 733 Net assets acquired, excluding goodwill 1,062 Total purchase consideration 2,674 Goodwill $ 1,612 In millions Fair Value Cash acquired $ 2 Tangible assets acquired 7 Acquired intangible assets other than goodwill 52 Acquired goodwill 81 Deferred tax liabilities (3) Liabilities assumed (13) Total purchase consideration $ 126 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of the intangible assets acquired as of the acquisition date: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 5 10 Technology - Software 30 13 Non-compete 1 1 Tradenames 2 2 Total acquired intangible assets $ 38 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. The following table sets forth the components of the intangible assets acquired as of the acquisition date: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 373 15 Technology - Software 441 8 Non-compete 1 1 Tradenames 49 4 Total acquired intangible assets $ 864 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. The following table sets forth the components of the intangible assets acquired as of the acquisition dates: Fair Value Weighted Average Amortization Period (1) (In millions) (In years) Direct customer relationships $ 11 10 Technology - Software 36 8 Non-compete 1 1 Tradenames 4 9 Total acquired intangible assets $ 52 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The purchase consideration transferred consisted of the following: In millions Purchase Consideration Cash paid to common stockholders and holders of certain restricted stock and stock option awards $ 1,775 Debt repaid by the Company on behalf of Cardtronics 809 Transaction costs paid by the Company on behalf of Cardtronics 57 Fair value of converted Cardtronics awards attributable to pre-combination services 19 Settlement of pre-existing relationships 14 Total purchase consideration $ 2,674 |
GOODWILL AND PURCHASED INTANG_2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amounts of goodwill by segment as of December 31, 2023 and 2022 are included in the tables below. Foreign currency fluctuations are included within other adjustments . Goodwill and other intangible assets related to the NCR Atleos business have been reclassified as Noncurrent assets of discontinued operations for prior year periods as discussed in Note 2, “Discontinued Operations”. December 31, 2022 December 31, 2023 In millions Goodwill Accumulated Impairment Total Additions Impairment Other Goodwill Accumulated Impairment Total Retail $ 1,077 $ (34) $ 1,043 $ — $ — $ 4 $ 1,081 $ (34) $ 1,047 Restaurants 495 (23) 472 — — — 495 (23) 472 Digital Banking 521 — 521 — — — 521 — 521 Other (1) 28 — 28 — — (28) — — — Total goodwill $ 2,121 $ (57) $ 2,064 $ — $ — $ (24) $ 2,097 $ (57) $ 2,040 (1) Other segment relates to the divested business as noted in Note 3, “Business Combinations and Divestitures”. |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The gross carrying amount and accumulated amortization for the Company’s identifiable intangible assets were as set forth in the table below. Amortization December 31, 2023 December 31, 2022 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable intangible assets Reseller & customer relationships 1 - 20 $ 665 $ (438) $ 714 $ (405) Intellectual property 2 - 8 494 (433) 536 (433) Customer contracts 8 89 (89) 89 (89) Tradenames 1 - 10 79 (76) 78 (74) Total identifiable intangible assets $ 1,327 $ (1,036) $ 1,417 $ (1,001) |
Schedule of Expected Amortization Expense | The aggregate amortization expense (estimated) for identifiable intangible assets for the following periods is: For the years ended December 31 (estimated) In millions 2024 2025 2026 2027 2028 Amortization expense $ 57 $ 50 $ 47 $ 41 $ 29 |
SEGMENT INFORMATION AND CONCE_2
SEGMENT INFORMATION AND CONCENTRATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents revenue and operating income by segment for the years ended December 31: In millions 2023 2022 2021 Revenue by Segment Retail $ 2,177 $ 2,182 $ 2,138 Restaurants 886 857 794 Digital Banking 579 547 521 Total Segment Revenue $ 3,642 $ 3,586 $ 3,453 Other 188 207 239 Total Revenue $ 3,830 $ 3,793 $ 3,692 Adjusted EBITDA by Segment Retail $ 411 $ 384 $ 427 Restaurants 197 160 150 Digital Banking 219 233 216 Total Segment Adjusted EBITDA 827 777 793 In millions 2023 2022 2021 Segment Adjusted EBITDA $ 827 $ 777 $ 793 Corporate and other income and expenses not allocated to segments 211 181 322 Pension mark-to-market adjustments 7 (41) (7) Transformation and restructuring costs (1) 39 96 53 Fraudulent ACH disbursements (2) 23 — — Acquisition-related amortization of intangibles 71 71 76 Acquisition-related costs (3) 1 2 3 Interest expense (4) 294 285 238 Interest income (13) (13) (8) Depreciation and amortization 252 237 220 Income taxes 204 72 70 Stock-based compensation expense 150 90 121 Separation costs (5) 99 — — Loss on disposal of businesses 12 — — Loss on debt extinguishment 46 — 42 Cyber ransomware incident recovery costs (6) 17 — — Net income (loss) from continuing operations attributable to NCR Voyix (GAAP) $ (586) $ (203) $ (337) (1) Represents integration, severance, and other exit and disposal costs, which are considered non-operational in nature. (2) Represents company identified fraudulent ACH disbursements from a company bank account. Additional details regarding this item are discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”. (3) Represents professional fees, retention bonuses, and other costs incurred related to acquisitions, which are considered non-operational in nature. (4) During the three months ended September 30, 2023, it was determined that the transactions underlying the unrealized gains on terminated interest rate swap and cap agreements reported in Accumulated other comprehensive income were probable of not occurring under ASC 815, Derivatives and Hedging . As such, $18 million of unrealized gains were recognized in Interest expense (5) Represents costs incurred as a result of the Spin-Off. Professional fees to effect the spin-off of NCR Atleos including separation management, organizational design, and legal fees have been classified within discontinued operations through October 16, 2023, the separation date. (6) Represents expenses to respond to, remediate and investigate the April 13, 2023 cyber ransomware incident net of insurance recoveries, which is considered a nonrecurring special item. Additional details regarding this cyber ransomware incident are discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”. |
Revenue from External Customers by Products and Services | The following table presents recurring revenue and all other products and services that is recognized at a point in time for the Company for the years ended December 31: In millions 2023 2022 2021 Recurring revenue (1) $ 2,195 $ 2,120 $ 2,069 All other products and services 1,635 1,673 1,623 Total revenue $ 3,830 $ 3,793 $ 3,692 (1) Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, interchange and network revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights. |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Revenue is attributed to the geographic area to which the product is delivered or in which the service is provided. The following table presents revenue by geographic area for the Company for the years ended December 31: In millions 2023 % 2022 % 2021 % Revenue by Geographic Area United States $ 2,540 67 % $ 2,560 67 % $ 2,367 65 % Americas (excluding United States) 281 7 % 254 7 % 226 6 % Europe, Middle East and Africa 653 17 % 594 16 % 643 17 % Asia Pacific 356 9 % 385 10 % 456 12 % Total revenue $ 3,830 100 % $ 3,793 100 % $ 3,692 100 % |
Property, Plant and Equipment | The following table presents property, plant and equipment by geographic area as of December 31: In millions 2023 2022 Property, plant and equipment, net United States $ 177 $ 187 Americas (excluding United States) 2 2 Europe, Middle East and Africa 29 32 Asia Pacific 4 6 Consolidated property, plant and equipment, net $ 212 $ 227 The components of property, plant and equipment, net are summarized as follows: In millions December 31, 2023 December 31, 2022 Property, plant and equipment Land and improvements $ 1 $ 2 Buildings and improvements 208 145 Machinery and other equipment 476 570 Finance lease assets 71 59 Property, plant and equipment, gross 756 776 Less: accumulated depreciation (544) (549) Total property, plant and equipment, net $ 212 $ 227 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The following table summarizes the Company’s short-term borrowings and long-term debt: December 31, 2023 December 31, 2022 In millions, except percentages Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate Short-Term Borrowings Current portion of Senior Secured Credit Facility (1) $ 15 8.46% $ 100 6.54% Other (1) — 7.38% 1 7.05% Total short-term borrowings $ 15 $ 101 Long-Term Debt Senior Secured Credit Facility: Term loan facilities (1) $ 185 8.46% $ 1,778 6.69% Revolving credit facility (1) 98 9.07% 523 6.79% Senior Notes: 5.750% Senior Notes due 2027 — 500 5.000% Senior Notes due 2028 650 650 5.125% Senior Notes due 2029 1,200 1,200 6.125% Senior Notes due 2029 — 500 5.250% Senior Notes due 2030 450 450 Deferred financing fees (20) (49) Total long-term debt $ 2,563 $ 5,552 (1) |
Schedule of Maturities of Long-term Debt | Debt Maturities Maturities of debt outstanding, in principal amounts, at December 31, 2023 are summarized below: For the years ended December 31 In millions Total 2024 2025 2026 2027 2028 Thereafter Debt maturities $ 2,578 $ 15 $ 16 $ 15 $ 19 $ 786 $ 1,727 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | For the years ended December 31, income (loss) from continuing operations before income taxes consisted of the following: In millions 2023 2022 2021 Income (loss) before income taxes United States $ (323) $ (212) $ (260) Foreign (59) 81 (7) Total income (loss) from continuing operations before income taxes $ (382) $ (131) $ (267) |
Schedule of Components of Income Tax Expense (Benefit) | For the years ended December 31, income tax expense (benefit) consisted of the following: In millions 2023 2022 2021 Income tax expense (benefit) Current Federal $ 26 $ 1 $ 5 State 3 3 3 Foreign 35 30 36 Deferred Federal (32) (3) 62 State (6) (2) (10) Foreign 178 43 (26) Total income tax expense (benefit) $ 204 $ 72 $ 70 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31: In millions 2023 2022 2021 Income tax (benefit) expense at the U.S. federal tax rate of 21% $ (80) $ (28) $ (56) Foreign income tax differential 1 (8) 13 Additional U.S. tax on foreign income 9 (2) 4 State and local income taxes (net of federal effect) (2) 1 (5) Other U.S. permanent book/tax differences 5 4 4 Meals and entertainment expense 2 1 1 Nondeductible transaction costs 2 1 — Nondeductible executive compensation 17 9 13 Dispositions 16 — — Spin-off of NCR Atleos 226 — — Gains/losses on internal entity restructuring — — 55 Excess (benefit)/deficit from share-based payments 2 — (11) Change in branch tax status — — 1 Research and development tax credits (2) (5) (5) Foreign tax law changes (8) 3 (14) Valuation allowances 20 103 56 Change in liability for unrecognized tax benefits 3 (15) — Change in tax estimates for prior periods (5) 4 17 Other, net (2) 4 (3) Total income tax (benefit) expense $ 204 $ 72 $ 70 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities included in the Consolidated Balance Sheets as of December 31 were as follows: In millions 2023 2022 Deferred income tax assets Employee pensions and other benefits $ 7 $ 41 Other balance sheet reserves and allowances 200 205 Tax loss and credit carryforwards 245 346 Capitalized research and development 51 30 Property, plant and equipment 17 18 Lease liabilities 56 70 Capitalized software 15 — Other 26 25 Total deferred income tax assets $ 617 $ 735 Valuation allowance (211) (274) Net deferred income tax assets $ 406 $ 461 Deferred income tax liabilities Intangibles $ 119 $ 41 Right of use assets 57 72 Capitalized software — 19 Total deferred income tax liabilities $ 176 $ 132 Total net deferred income tax assets $ 230 $ 329 |
Summary of Income Tax Contingencies | The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended December 31: In millions 2023 2022 2021 Gross unrecognized tax benefits - January 1 $ 87 $ 121 $ 103 Increases related to tax positions from prior years 1 3 25 Decreases related to tax positions from prior years (1) (15) (4) Increases related to tax provisions taken during the current year 2 7 7 Settlements with tax authorities — (22) (2) Lapses of statutes of limitation (1) (7) (8) Distributions to NCR Atleos $ (30) $ — $ — Total gross unrecognized tax benefits - December 31 $ 58 $ 87 $ 121 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Cost by Plan | As of December 31, 2023, the Company’s stock-based compensation consisted of restricted stock units, employee stock purchase plan and stock options. The Company recorded stock-based compensation expense in income (loss) from continuing operations for the years ended December 31 as follows: In millions 2023 2022 2021 Restricted stock units $ 141 66 93 Stock options 3 15 20 Employee stock purchase plan 6 9 8 Stock-based compensation expense $ 150 $ 90 $ 121 Tax benefit (7) (5) (8) Total stock-based compensation (net of tax) $ 143 85 113 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table reports restricted stock unit activity during the year ended December 31, 2023: Shares in thousands Number of Units Weighted Average Grant-Date Fair Value per Unit Unvested shares as of January 1 15,676 $ 17.93 Shares granted 3,859 $ 16.25 Shares vested (7,351) $ 19.75 Shares forfeited (1,094) $ 18.58 Awards transferred to Atleos at Spin-Off (3,868) $ 15.94 Unvested shares as of December 31 7,222 $ 19.86 The following table represents the composition of restricted stock unit grants in 2023: Shares in thousands Number of Units Weighted Average Grant-Date Fair Value Service-based units 2,254 $ 13.44 Performance-based units 1,605 $ 20.32 Total restricted stock units 3,859 $ 16.25 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The table below details the significant assumptions used in determining the fair value of the market-based restricted stock units granted on February 13, 2023: Dividend yield — % Risk-free interest rate 4.15 % Expected volatility 55.90 % Dividend yield — % Risk-free interest rate 1.73 % Expected volatility 59.26 % The table below details the significant assumptions used in determining the fair value of the market-based restricted stock units granted on December 21, 2022: Dividend yield — % Risk-free interest rate 3.90 % Expected volatility 64.93 % |
Share-based Payment Arrangement, Option, Activity | The following table summarizes the Company’s stock option activity for the year ended December 31, 2023: Shares in thousands Shares Under Option Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of January 1 8,696 $ 19.57 Granted 470 $ 23.59 Exercised (122) $ 17.00 Forfeited or expired (248) $ 35.04 Awards transferred to Atleos at Spin-Off (470) $ 23.59 Outstanding as of December 31 8,326 $ 19.09 2.30 $ 4.44 Fully vested and expected to vest as of December 31 8,326 $ 19.09 2.30 $ 4.44 Exercisable as of December 31 8,326 $ 19.09 2.30 $ 4.44 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | Reconciliation of the beginning and ending balances of the benefit obligations for the Company’s pension plans are as follows: International Pension Benefits In millions 2023 2022 Change in benefit obligation Benefit obligation as of January 1 $ 178 $ 249 Net service cost 2 2 Interest cost 6 2 Actuarial (gain) loss 15 (43) Benefits paid (14) (13) Settlements — — Plan participant contributions — — Currency translation adjustments 5 (19) Benefit obligation as of December 31 $ 192 $ 178 Accumulated benefit obligation as of December 31 $ 191 $ 175 Reconciliation of the beginning and ending balances of the benefit obligation for the Company’s postemployment plan was: Postemployment Benefits In millions 2023 2022 Change in benefit obligation Benefit obligation as of January 1 $ 93 $ 64 Service cost (1) 15 58 Interest cost 2 1 Benefits paid (54) (18) Foreign currency exchange — (3) Actuarial (gain) loss 9 (9) Benefit obligation as of December 31 $ 65 $ 93 (1) During the year ended December 31, 2022, the Company recorded approximately $50 million in employee severance charges related to actions taken in the second half of the year |
Schedule of Changes in Fair Value of Plan Assets | A reconciliation of the beginning and ending balances of the fair value of the plan assets of the Company’s pension plans are as follows: International Pension Benefits In millions 2023 2022 Change in plan assets Fair value of plan assets as of January 1 $ 51 $ 64 Actual return on plan assets 10 (3) Company contributions 13 12 Benefits paid (14) (13) Settlement — — Currency translation adjustments (4) (9) Plan participant contributions — — Fair value of plan assets as of December 31 $ 56 $ 51 |
Schedule of Net Benefit Costs and Amounts Recognized in Balance Sheet | The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss as of December 31: International Pension Benefits In millions 2023 2022 Funded Status $ (136) $ (127) Amounts recognized in the Consolidated Balance Sheets Noncurrent assets $ 43 $ 40 Current liabilities (12) (11) Noncurrent liabilities (167) (156) Net amounts recognized $ (136) $ (127) Amounts recognized in accumulated other comprehensive loss Prior service cost — — Total $ — $ — The following table presents the funded status and the reconciliation of the unfunded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss at December 31: Postemployment Benefits In millions 2023 2022 Benefit obligation $ 65 $ 93 Amounts recognized in the Consolidated Balance Sheets Current liabilities $ 22 $ 57 Noncurrent liabilities 43 36 Net amounts recognized $ 65 $ 93 Amounts recognized in Accumulated other comprehensive loss Net actuarial (gain) loss $ 9 $ (9) Amortization of gain (loss) 1 — Amortization of prior service cost 1 1 Total $ 11 $ (8) |
Schedule of Net Benefit Costs | The net periodic benefit (income) cost of the pension plans for the years ended December 31 was as follows: In millions International Pension Benefits 2023 2022 2021 Net service cost $ 2 $ 2 $ 2 Interest cost 6 2 1 Expected return on plan assets (2) (1) (1) Amortization of prior service cost — — — Actuarial (gain) loss 7 (41) (7) Net periodic benefit (income) cost $ 13 $ (38) $ (5) The net periodic benefit cost of the postemployment plan for the years ended December 31 was: In millions Postemployment Benefits 2023 2022 2021 Service cost $ 15 $ 58 $ 15 Interest cost 2 1 1 Amortization of: Prior service benefit (1) (1) (1) Actuarial gain (1) — (1) Net periodic benefit cost $ 15 $ 58 $ 14 |
Defined Benefit Plan, Assumptions | The weighted average rates and assumptions used to determine benefit obligations as of December 31 were as follows: International Pension Benefits 2023 2022 Discount rate 3.0 % 3.4 % Rate of compensation increase 2.4 % 1.0 % The weighted average rates and assumptions used to determine net periodic benefit (income) cost for the years ended December 31 were as follows: International Pension Benefits 2023 2022 2021 Discount rate - Service Cost 1.8% 0.8 % 0.6 % Discount rate - Interest Cost 3.4% 0.7 % 0.3 % Expected return on plan assets 5.0% 2.1 % 2.0 % Rate of compensation increase 1.0% 0.9 % 0.7 % The weighted average assumptions utilized in accounting for postemployment benefit obligations as of December 31 and for postemployment benefit costs for the years ended December 31 were: Postemployment Benefit Obligations Postemployment Benefit Costs 2023 2022 2023 2022 2021 Discount rate for severance plan 4.1 % 5.1 % 5.1 % 2.3 % 1.4 % Salary increase rate 3.4 % 3.1 % 3.1 % 2.6 % 2.0 % Involuntary turnover rate 3.8 % 3.8 % 3.8 % 3.8 % 3.8 % |
Schedule of Allocation of Plan Assets | The weighted average asset allocations as of December 31, 2023 and 2022 by asset category are as follows: International Pension Fund Actual Allocation of Plan Assets as of December 31 Target Asset Allocation 2023 2022 Equity and other investments (1) 66 % 62 % 62.5% Debt securities (2) 34 % 37 % 37.2% Other 1 % — % 0.3% Total 100 % 100 % (1) Includes equity securities and equities held in comingled trusts. (2) Includes debt securities and debt held in comingled trusts. The fair value of plan assets as of December 31, 2023 and 2022 by asset category is as follows: International In millions Notes Fair Value as of December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Not Subject to Leveling Assets Equity securities and other investments: Common and commingled trusts - Equities 1 37 — — — 37 Fixed income securities: Common and commingled trusts - Bonds 1 19 — — — 19 Total $ 56 $ — $ — $ — $ 56 International In millions Notes Fair Value as of December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Not Subject to Leveling Assets Equity securities: Common and commingled trusts - Equities 1 32 — — — 32 Fixed income securities: Common and commingled trusts - Bonds 1 19 — — — 19 Total $ 51 $ — $ — $ — $ 51 Notes: 1. |
Schedule of Expected Benefit Payments | The Company expects to make the following benefit payments reflecting past and future service from its pension and postemployment plans: In millions International Pension Benefits Postemployment Benefits Year 2024 $ 15 $ 21 2025 $ 14 $ 8 2026 $ 14 $ 8 2027 $ 14 $ 7 2028 $ 14 $ 7 2029-2033 $ 60 $ 31 |
LEASING (Tables)
LEASING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | The following table presents our lease balances as of December 31: In millions Location in the Consolidated Balance Sheet December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease assets $ 236 $ 272 Finance lease assets Property, plant and equipment, net 71 59 Accumulated Amortization of Finance lease assets Property, plant and equipment, net (57) (49) Total leased assets $ 250 $ 282 Liabilities Current Operating lease liabilities Other current liabilities $ 44 $ 52 Finance lease liabilities Other current liabilities 8 9 Noncurrent Operating lease liabilities Operating lease liabilities 254 286 Finance lease liabilities Other liabilities 7 3 Total lease liabilities $ 313 $ 350 |
Lease, Cost | The following table presents our lease costs for operating and finance leases: In millions For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Operating lease cost $ 72 $ 77 $ 98 Finance lease cost Amortization of leased assets 13 13 14 Interest on lease liabilities 1 1 1 Short-Term lease cost — 3 3 Variable lease cost 29 23 21 Sublease income (3) — — Total lease cost $ 112 $ 117 $ 137 The following table presents the supplemental cash flow information: In millions For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 76 $ 82 $ 102 Operating cash flows from finance leases $ 1 $ 1 $ 1 Financing cash flows from finance leases $ 14 $ 13 $ 14 Lease Assets Obtained in Exchange for Lease Obligations Operating Leases $ 16 $ 4 $ 107 Finance Leases $ (1) $ — $ 2 The following table presents the weighted average remaining lease term and interest rates: December 31, 2023 December 31, 2022 Weighted average lease term: Operating leases 8.3 years 8.8 years Finance leases 2.2 years 1.2 years Weighted average interest rates: Operating leases 6.14 % 6.01 % Finance leases 3.38 % 3.08 % |
Lessee, Operating Lease, Liability, Maturity | The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 61 $ 9 2025 46 6 2026 39 1 2027 39 — 2028 38 — Thereafter 164 — Total lease payments 387 16 Less: Amount representing interest 89 1 Present value of lease liabilities $ 298 $ 15 |
Finance Lease, Liability, Fiscal Year Maturity | The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 61 $ 9 2025 46 6 2026 39 1 2027 39 — 2028 38 — Thereafter 164 — Total lease payments 387 16 Less: Amount representing interest 89 1 Present value of lease liabilities $ 298 $ 15 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The components of basic and diluted earnings (loss) per share are as follows: In millions, except per share amounts Year ended December 31 2023 2022 2021 Numerator: Income (loss) from continuing operations $ (586) $ (203) $ (337) Series A convertible preferred stock dividends (16) (16) (16) Net income (loss) from continuing operations attributable to NCR Voyix common stockholders (602) (219) (353) Income (loss) from discontinued operations, net of tax 163 263 434 Net income (loss) attributable to NCR Voyix common stockholders $ (439) $ 44 $ 81 Denominator: Basic and diluted weighted average number of shares outstanding 140.6 136.7 131.2 Basic and diluted earnings (loss) per share: From continuing operations $ (4.28) $ (1.60) $ (2.69) From discontinued operations 1.16 1.92 3.31 Total basic and diluted earnings per share $ (3.12) $ 0.32 $ 0.62 |
DERIVATIVES AND HEDGING INSTR_2
DERIVATIVES AND HEDGING INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables provide information on the location and amounts of derivative fair values in the Consolidated Balance Sheets: Fair Values of Derivative Instruments December 31, 2023 In millions Balance Sheet Location Notional Fair Balance Sheet Location Notional Fair Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid and other current assets $ 5 Other current liabilities $ (4) Total derivatives not designated as hedging instruments $ 402 $ 5 $ 207 $ (4) Total derivatives $ 5 $ (4) Fair Values of Derivative Instruments December 31, 2022 In millions Balance Sheet Location Notional Fair Balance Sheet Location Notional Fair Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid and other current assets $ 1 Other current liabilities $ (2) Total derivatives not designated as hedging instruments $ 376 $ 1 $ 373 $ (2) Total derivatives $ 1 $ (2) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effects of derivative instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022, and 2021 were as follows: In millions Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative Amount of (Gain) Loss Reclassified from AOCI into the Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Location of (Gain) Loss Reclassified from AOCI into the Consolidated Statements of Operations For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Interest rate contracts $ — $ 116 $ 5 Cost of services $ — $ (8) $ 1 Interest rate contracts $ — $ 36 $ 4 Interest expense $ (31) $ (10) $ — In millions Amount of Gain (Loss) Recognized in the Consolidated Statements of Operations Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in the Consolidated Statements of Operations For the year ended December 31, 2023 For the year ended December 31, 2022 For the year ended December 31, 2021 Foreign exchange contracts Other income (expense), net $ (8) $ (15) $ (12) The following tables show the impact of the Company’s cash flow hedge accounting relationships on the Consolidated Statement of Operations for the years ended December 31, 2023, 2022, and 2021. Location and Amount of (Gain) Loss Recognized in Income on Cash Flow Hedging Relationships for the years ended December 31: In millions Cost of Services Cost of Products Interest Expense 2023 2022 2021 2023 2022 2021 2023 2022 2021 Total amount of expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 1,758 $ 1,664 $ 1,735 $ 1,110 $ 1,151 $ 1,032 $ (294) $ (285) $ (238) Amount of (gain) loss reclassified from Accumulated other comprehensive loss, net of expense $ — $ (8) $ 1 $ — $ — $ — $ (31) $ (10) $ — |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities recorded at fair value on a recurring basis as of December 31, 2023 and 2022 are set forth as follows: December 31, 2023 December 31, 2022 Fair Value Measurements Using Fair Value Measurements Using In millions December 31, 2023 Quoted Prices Significant Other Significant December 31, 2022 Quoted Prices Significant Other Significant Assets: Deposits held in money market mutual funds (1) $ — $ — $ — $ — $ 16 $ 16 $ — $ — Foreign exchange contracts (2) 5 — 5 — 1 — 1 — Total $ 5 $ — $ 5 $ — $ 17 $ 16 $ 1 $ — Liabilities: Foreign exchange contracts (3) 4 — 4 — 2 — 2 — Total $ 4 $ — $ 4 $ — $ 2 $ — $ 2 $ — (1) Included in Cash and cash equivalents in the Consolidated Balance Sheets. (2) Included in Prepaid and other current assets in the Consolidated Balance Sheets. (3) Included in Other current liabilities in the Consolidated Balance Sheets. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income ( “AOCI” ) by Component The changes in AOCI for the years ended December 31 are as follows: In millions Currency Translation Adjustments Changes in Employee Benefit Plans Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2020 $ (245) $ (26) $ — $ (271) Other comprehensive (loss) income before reclassifications (30) 4 7 (19) Amounts reclassified from AOCI — (2) 1 (1) Net current period other comprehensive (loss) income (30) 2 8 (20) Balance at December 31, 2021 $ (275) $ (24) $ 8 $ (291) Other comprehensive (loss) income before reclassifications (129) 21 117 9 Amounts reclassified from AOCI — (2) (16) (18) Net current period other comprehensive (loss) income (129) 19 101 (9) Balance at December 31, 2022 $ (404) $ (5) $ 109 $ (300) Other comprehensive (loss) income before reclassifications $ 85 $ (7) $ — $ 78 Amounts reclassified from AOCI — (1) (24) (25) Net current period other comprehensive (loss) income $ 85 $ (8) $ (24) $ 53 Spin-Off of NCR Atleos (105) 8 (85) (182) Balance at December 31, 2023 $ (424) $ (5) $ — $ (429) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of AOCI for the years ended December 31 are as follows: For the year ended December 31, 2023 Employee Benefit Plans In millions Actuarial Losses Recognized Amortization of Prior Service Benefit Effective Cash Flow Hedges Total Affected line in Consolidated Statement of Operations: Cost of products $ — $ — $ — $ — Cost of services (1) (1) — (2) Selling, general and administrative expenses — — — — Research and development expenses — — — — Interest expense — — (31) (31) Total before tax $ (1) $ (1) $ (31) $ (33) Tax expense 8 Total reclassifications, net of tax $ (25) For the year ended December 31, 2022 Employee Benefit Plans In millions Actuarial Losses Recognized Amortization of Prior Service Benefit Effective Cash Flow Hedges Total Affected line in Consolidated Statement of Operations: Cost of products $ — $ — $ — $ — Cost of services (1) (1) (8) (10) Selling, general and administrative expenses 1 (1) — — Research and development expenses — — — — Interest expense — — (10) (10) Total before tax $ — $ (2) $ (18) $ (20) Tax expense 2 Total reclassifications, net of tax $ (18) For the year ended December 31, 2021 Employee Benefit Plans In millions Actuarial Losses Recognized Amortization of Prior Service Benefit Effective Cash Flow Hedges Total Affected line in Consolidated Statement of Operations: Cost of products $ — $ — $ — $ — Cost of services — (2) 1 (1) Selling, general and administrative expenses (1) — — (1) Research and development expenses — 1 — 1 Total before tax $ (1) $ (1) $ 1 $ (1) Tax expense — Total reclassifications, net of tax $ (1) |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information [Abstract] | |
Interest and Other Income | The components of Other income (expense), net are summarized as follows for the years ended December 31: In millions 2023 2022 2021 Other income (expense), net Interest income $ 13 $ 13 $ 8 Foreign currency fluctuations and foreign exchange contracts (28) (17) (2) Bank-related fees (28) (9) (27) Employee benefit plans (1) (8) 40 9 Other, net (28) (9) (1) Total other income (expense), net $ (79) $ 18 $ (13) (1) For the year ended December 31, 2023, the actuarial loss related to the remeasurement of our pension plan assets and liabilities was $7 million. For the year ended December 31, 2022, the actuarial gain related to the remeasurement of our pension plan assets and liabilities was $41 million. For the year ended December 31, 2021, the actuarial gain related to the remeasurement of our pension plan assets and liabilities was $7 million. |
Schedule of Inventory, Current | The components of inventory are summarized as follows: In millions December 31, 2023 December 31, 2022 Inventories Work in process and raw materials $ 14 $ 48 Finished goods 112 166 Service parts 128 143 Total inventories $ 254 $ 357 |
Property, Plant and Equipment | The following table presents property, plant and equipment by geographic area as of December 31: In millions 2023 2022 Property, plant and equipment, net United States $ 177 $ 187 Americas (excluding United States) 2 2 Europe, Middle East and Africa 29 32 Asia Pacific 4 6 Consolidated property, plant and equipment, net $ 212 $ 227 The components of property, plant and equipment, net are summarized as follows: In millions December 31, 2023 December 31, 2022 Property, plant and equipment Land and improvements $ 1 $ 2 Buildings and improvements 208 145 Machinery and other equipment 476 570 Finance lease assets 71 59 Property, plant and equipment, gross 756 776 Less: accumulated depreciation (544) (549) Total property, plant and equipment, net $ 212 $ 227 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following table sets forth the Company’s unaudited results of operations for each of the quarters in the fiscal years 2023 and 2022, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations. The December 31, 2023 quarterly information has been revised for the impact of the fraudulent ACH disbursements, as discussed in Note 20, “Revised 2023 Quarterly Financial Information (Unaudited)”. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. In millions, except per share amounts First Quarter Second Quarter Third Quarter Fourth Quarter 2023 Total revenue $ 922 $ 967 $ 978 $ 963 Gross margin 234 276 271 181 Income (loss) from operations 29 67 71 (130) Income from continuing operations (65) (41) (222) (258) Income (loss) from discontinued operations, net of taxes 73 57 94 (61) Net income (loss) 8 16 (128) (319) Net (loss) income attributable to common stockholders 3 13 (133) (322) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Net income attributable to common shareholders 0.02 0.09 (0.94) (2.28) Diluted earnings (loss) per share: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Diluted earnings per share attributable to common shareholders 0.02 0.09 (0.94) (2.28) 2022 Total revenue $ 917 $ 950 $ 960 $ 966 Gross margin 210 224 281 263 Income (loss) from operations (1) 24 55 58 Income from continuing operations (96) (57) (38) (12) Income (loss) from discontinued operations, net of taxes 61 100 107 (6) Net income (loss) (35) 43 69 (18) Net (loss) income attributable to common stockholders (38) 37 65 (20) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Net income attributable to common shareholders (0.28) 0.27 0.47 (0.15) Diluted earnings (loss) per share: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Diluted earnings per share attributable to common shareholders (0.28) 0.27 0.47 (0.15) The following table sets forth the Company’s results of operations for each of the first three quarters in the year ended December 31, 2023, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations and the revision impact of the fraudulent ACH disbursements and other immaterial errors. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Three Months Ended March 31, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 521 $ 229 $ — $ 292 Service revenue 1,370 740 — 630 Total revenue 1,891 969 — 922 Cost of products 456 187 — 269 Cost of services 969 550 — 419 Selling, general and administrative expenses 292 138 2 156 Research and development expenses 64 15 — 49 Total operating expenses 1,781 890 2 893 Income (loss) from operations 110 79 (2) 29 Loss on extinguishment of debt — — — — Interest expense (83) — — (83) Other income (expense), net (3) 1 — (4) Income (loss) from continuing operations before income taxes 24 80 (2) (58) Income tax expense (benefit) 14 7 — 7 Income from continuing operations 10 73 (2) (65) Income (loss) from discontinued operations, net of tax — (73) — 73 Net income (loss) 10 — (2) 8 Net income (loss) attributable to noncontrolling interests 1 1 — — Net income attributable to noncontrolling interests of discontinued operations — (1) — 1 Net income (loss) attributable to NCR Voyix 9 — (2) 7 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 9 (65) Series A convertible preferred stock dividends (4) (4) Income (loss) from continuing operations attributable to NCR Voyix 5 (69) Income (loss) from discontinued operations, net of tax — 72 Net income (loss) attributable to NCR Voyix common stockholders 5 3 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Net income attributable to common shareholders $ 0.04 $ 0.02 Diluted earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Diluted earnings per share attributable to common shareholders $ 0.04 $ 0.02 Three months ended June 30, 2023 Six months ended June 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 576 $ 259 $ — $ 317 $ 1,097 $ 488 $ — $ 609 Service revenue 1,410 760 — 650 2,780 1,500 — 1,280 Total revenue 1,986 1,019 — 967 3,877 1,988 — 1,889 Cost of products 478 205 — 273 934 392 — 542 Cost of services 970 552 — 418 1,939 1,102 — 837 Selling, general and administrative expenses 333 169 3 167 625 307 5 323 Research and development expenses 57 15 — 42 121 30 — 91 Total operating expenses 1,838 941 3 900 3,619 1,831 5 1,793 Income (loss) from operations 148 78 (3) 67 258 157 (5) 96 Loss on extinguishment of debt — — — — — — — — Interest expense (91) — — (91) (174) — — (174) Other income (expense), net (8) 1 — (9) (11) 2 — (13) Income (loss) from continuing operations before income taxes 49 79 (3) (33) 73 159 (5) (91) Income tax expense (benefit) 30 21 (1) 8 44 28 (1) 15 Income from continuing operations 19 58 (2) (41) 29 131 (4) (106) Income (loss) from discontinued operations, net of tax (1) (58) — 57 (1) (131) — 130 Net income (loss) 18 — (2) 16 28 — (4) 24 Net income (loss) attributable to noncontrolling interests (1) (1) — — — — — — Net income (loss) attributable to noncontrolling interests from discontinued operations — 1 — (1) — — — — Net income (loss) attributable to NCR Voyix 19 — (2) 17 28 — (4) 24 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 20 (41) 29 (106) Series A convertible preferred stock dividends (4) (4) (8) (8) Income (loss) from continuing operations attributable to NCR Voyix 16 (45) 21 (114) Income (loss) from discontinued operations, net of tax (1) 58 (1) 130 Net income (loss) attributable to NCR Voyix common stockholders 15 13 20 16 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Net income attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Diluted earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Diluted earnings per share attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Three months ended September 30, 2023 Nine months ended September 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 560 $ 242 $ — $ 318 $ 1,657 $ 730 $ — $ 927 Service revenue 1,457 797 — 660 4,237 2,297 — 1,940 Total revenue 2,017 1,039 — 978 5,894 3,027 — 2,867 Cost of products 465 196 — 269 1,399 588 — 811 Cost of services 925 488 1 438 2,864 1,591 1 1,274 Selling, general and administrative expenses 331 175 6 162 956 481 11 486 Research and development expenses 54 16 — 38 175 46 — 129 Total operating expenses 1,775 875 7 907 5,394 2,706 12 2,700 Income (loss) from operations 242 164 (7) 71 500 321 (12) 167 Loss on extinguishment of debt — — — — — — — — Interest expense (85) (2) — (83) (259) (2) — (257) Other income (expense), net (44) (19) — (25) (55) (17) — (38) Income (loss) from continuing operations before income taxes 113 143 (7) (37) 186 302 (12) (128) Income tax expense (benefit) 236 49 (2) 185 280 77 (3) 200 Income from continuing operations (123) 94 (5) (222) (94) 225 (9) (328) Income (loss) from discontinued operations, net of tax — (94) — 94 (1) (225) — 224 Net income (loss) (123) — (5) (128) (95) — (9) (104) Net income (loss) attributable to noncontrolling interests 1 1 — — 1 1 — — Net income (loss) attributable to noncontrolling interest from discontinued operations — (1) — 1 — (1) — 1 Net income (loss) attributable to NCR Voyix (124) — (5) (129) (96) — (9) (105) Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations (124) (222) (95) (328) Series A convertible preferred stock dividends (4) (4) (12) (12) Income (loss) from continuing operations attributable to NCR Voyix (128) (226) (107) (340) Income (loss) from discontinued operations, net of tax — 93 (1) 223 Net income (loss) attributable to NCR Voyix common stockholders (128) (133) (108) (117) Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Net income attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) Diluted earnings (loss) per share: Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Diluted earnings per share attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) |
REVISED 2023 QUARTERLY FINANC_2
REVISED 2023 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following table sets forth the Company’s unaudited results of operations for each of the quarters in the fiscal years 2023 and 2022, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations. The December 31, 2023 quarterly information has been revised for the impact of the fraudulent ACH disbursements, as discussed in Note 20, “Revised 2023 Quarterly Financial Information (Unaudited)”. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. In millions, except per share amounts First Quarter Second Quarter Third Quarter Fourth Quarter 2023 Total revenue $ 922 $ 967 $ 978 $ 963 Gross margin 234 276 271 181 Income (loss) from operations 29 67 71 (130) Income from continuing operations (65) (41) (222) (258) Income (loss) from discontinued operations, net of taxes 73 57 94 (61) Net income (loss) 8 16 (128) (319) Net (loss) income attributable to common stockholders 3 13 (133) (322) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Net income attributable to common shareholders 0.02 0.09 (0.94) (2.28) Diluted earnings (loss) per share: Continuing operations $ (0.49) $ (0.32) $ (1.60) $ (1.85) Discontinued operations 0.51 0.41 0.66 (0.43) Diluted earnings per share attributable to common shareholders 0.02 0.09 (0.94) (2.28) 2022 Total revenue $ 917 $ 950 $ 960 $ 966 Gross margin 210 224 281 263 Income (loss) from operations (1) 24 55 58 Income from continuing operations (96) (57) (38) (12) Income (loss) from discontinued operations, net of taxes 61 100 107 (6) Net income (loss) (35) 43 69 (18) Net (loss) income attributable to common stockholders (38) 37 65 (20) Income (loss) per share attributable to common stockholders: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Net income attributable to common shareholders (0.28) 0.27 0.47 (0.15) Diluted earnings (loss) per share: Continuing operations $ (0.72) $ (0.46) $ (0.31) $ (0.12) Discontinued operations 0.44 0.73 0.78 (0.03) Diluted earnings per share attributable to common shareholders (0.28) 0.27 0.47 (0.15) The following table sets forth the Company’s results of operations for each of the first three quarters in the year ended December 31, 2023, which has been retrospectively adjusted to reflect NCR Atleos historical financial results as discontinued operations and the revision impact of the fraudulent ACH disbursements and other immaterial errors. The following quarterly financial data should be read in conjunction with our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Three Months Ended March 31, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 521 $ 229 $ — $ 292 Service revenue 1,370 740 — 630 Total revenue 1,891 969 — 922 Cost of products 456 187 — 269 Cost of services 969 550 — 419 Selling, general and administrative expenses 292 138 2 156 Research and development expenses 64 15 — 49 Total operating expenses 1,781 890 2 893 Income (loss) from operations 110 79 (2) 29 Loss on extinguishment of debt — — — — Interest expense (83) — — (83) Other income (expense), net (3) 1 — (4) Income (loss) from continuing operations before income taxes 24 80 (2) (58) Income tax expense (benefit) 14 7 — 7 Income from continuing operations 10 73 (2) (65) Income (loss) from discontinued operations, net of tax — (73) — 73 Net income (loss) 10 — (2) 8 Net income (loss) attributable to noncontrolling interests 1 1 — — Net income attributable to noncontrolling interests of discontinued operations — (1) — 1 Net income (loss) attributable to NCR Voyix 9 — (2) 7 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 9 (65) Series A convertible preferred stock dividends (4) (4) Income (loss) from continuing operations attributable to NCR Voyix 5 (69) Income (loss) from discontinued operations, net of tax — 72 Net income (loss) attributable to NCR Voyix common stockholders 5 3 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Net income attributable to common shareholders $ 0.04 $ 0.02 Diluted earnings (loss) per share: Continuing operations $ 0.04 $ (0.49) Discontinued operations — 0.51 Diluted earnings per share attributable to common shareholders $ 0.04 $ 0.02 Three months ended June 30, 2023 Six months ended June 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 576 $ 259 $ — $ 317 $ 1,097 $ 488 $ — $ 609 Service revenue 1,410 760 — 650 2,780 1,500 — 1,280 Total revenue 1,986 1,019 — 967 3,877 1,988 — 1,889 Cost of products 478 205 — 273 934 392 — 542 Cost of services 970 552 — 418 1,939 1,102 — 837 Selling, general and administrative expenses 333 169 3 167 625 307 5 323 Research and development expenses 57 15 — 42 121 30 — 91 Total operating expenses 1,838 941 3 900 3,619 1,831 5 1,793 Income (loss) from operations 148 78 (3) 67 258 157 (5) 96 Loss on extinguishment of debt — — — — — — — — Interest expense (91) — — (91) (174) — — (174) Other income (expense), net (8) 1 — (9) (11) 2 — (13) Income (loss) from continuing operations before income taxes 49 79 (3) (33) 73 159 (5) (91) Income tax expense (benefit) 30 21 (1) 8 44 28 (1) 15 Income from continuing operations 19 58 (2) (41) 29 131 (4) (106) Income (loss) from discontinued operations, net of tax (1) (58) — 57 (1) (131) — 130 Net income (loss) 18 — (2) 16 28 — (4) 24 Net income (loss) attributable to noncontrolling interests (1) (1) — — — — — — Net income (loss) attributable to noncontrolling interests from discontinued operations — 1 — (1) — — — — Net income (loss) attributable to NCR Voyix 19 — (2) 17 28 — (4) 24 Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations 20 (41) 29 (106) Series A convertible preferred stock dividends (4) (4) (8) (8) Income (loss) from continuing operations attributable to NCR Voyix 16 (45) 21 (114) Income (loss) from discontinued operations, net of tax (1) 58 (1) 130 Net income (loss) attributable to NCR Voyix common stockholders 15 13 20 16 Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Net income attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Diluted earnings (loss) per share: Continuing operations $ 0.11 $ (0.32) $ 0.15 $ (0.81) Discontinued operations (0.01) 0.41 (0.01) 0.92 Diluted earnings per share attributable to common shareholders $ 0.11 $ 0.09 $ 0.14 $ 0.11 Three months ended September 30, 2023 Nine months ended September 30, 2023 In millions, except per share amounts As reported Discontinued operations Adjustment As recasted and revised As reported Discontinued operations Adjustment As recasted and revised Product revenue $ 560 $ 242 $ — $ 318 $ 1,657 $ 730 $ — $ 927 Service revenue 1,457 797 — 660 4,237 2,297 — 1,940 Total revenue 2,017 1,039 — 978 5,894 3,027 — 2,867 Cost of products 465 196 — 269 1,399 588 — 811 Cost of services 925 488 1 438 2,864 1,591 1 1,274 Selling, general and administrative expenses 331 175 6 162 956 481 11 486 Research and development expenses 54 16 — 38 175 46 — 129 Total operating expenses 1,775 875 7 907 5,394 2,706 12 2,700 Income (loss) from operations 242 164 (7) 71 500 321 (12) 167 Loss on extinguishment of debt — — — — — — — — Interest expense (85) (2) — (83) (259) (2) — (257) Other income (expense), net (44) (19) — (25) (55) (17) — (38) Income (loss) from continuing operations before income taxes 113 143 (7) (37) 186 302 (12) (128) Income tax expense (benefit) 236 49 (2) 185 280 77 (3) 200 Income from continuing operations (123) 94 (5) (222) (94) 225 (9) (328) Income (loss) from discontinued operations, net of tax — (94) — 94 (1) (225) — 224 Net income (loss) (123) — (5) (128) (95) — (9) (104) Net income (loss) attributable to noncontrolling interests 1 1 — — 1 1 — — Net income (loss) attributable to noncontrolling interest from discontinued operations — (1) — 1 — (1) — 1 Net income (loss) attributable to NCR Voyix (124) — (5) (129) (96) — (9) (105) Amounts attributable to NCR Voyix common stockholders Income (loss) from continuing operations (124) (222) (95) (328) Series A convertible preferred stock dividends (4) (4) (12) (12) Income (loss) from continuing operations attributable to NCR Voyix (128) (226) (107) (340) Income (loss) from discontinued operations, net of tax — 93 (1) 223 Net income (loss) attributable to NCR Voyix common stockholders (128) (133) (108) (117) Income (loss) per share attributable to common stockholders: Basic earnings (loss) per share Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Net income attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) Diluted earnings (loss) per share: Continuing operations $ (0.91) $ (1.60) $ (0.76) $ (2.41) Discontinued operations — 0.66 (0.01) 1.58 Diluted earnings per share attributable to common shareholders $ (0.91) $ (0.94) $ (0.77) $ (0.83) |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Oct. 02, 2023 | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2023 USD ($) | Apr. 13, 2023 USD ($) | Sep. 15, 2022 company | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Number of independent companies | company | 2 | |||||||||
Loss - conflict in Eastern Europe | $ 22 | |||||||||
Recovery costs, cyber ransomware | $ 36 | |||||||||
Insurance settlements receivable | $ 14 | 14 | $ 19 | |||||||
Proceeds from insurance settlement | 5 | |||||||||
Out-of-period adjustment to increase operating expenses | $ 10 | |||||||||
Fraudulent disbursement, amount | 23 | |||||||||
Fraudulent disbursements, amount recorded on balance sheet | $ 11 | 2 | ||||||||
Accounts receivable, net of allowances of $32 and $21 as of December 31, 2023 and 2022, respectively | 481 | $ 1,007 | $ 940 | 481 | 550 | $ 981 | ||||
Remaining performance obligation | 1,600 | 1,600 | ||||||||
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 0 | 502 | $ 463 | ||||||
Interest paid, excluding capitalized interest | 365 | 268 | 215 | |||||||
Income taxes paid, net | 92 | 56 | 42 | |||||||
Allowance for credit loss | 32 | 32 | 21 | |||||||
Credit loss charged to expense | 26 | 15 | ||||||||
Allowance for credit loss, writeoff | 15 | 13 | ||||||||
Current portion of contract assets | 0 | 0 | ||||||||
Contract with customer, liability, revenue recognized | $ 138 | 152 | 176 | |||||||
Contract term used to recognize set up fees | 5 years | |||||||||
Period of benefit used to amortize set up costs | 7 years | |||||||||
Settlement assets | 46 | $ 46 | 39 | |||||||
Settlement liabilities | 39 | 39 | 38 | |||||||
Depreciation | 57 | 57 | $ 59 | |||||||
Revision of Prior Period, Adjustment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Operating expenses | 2 | |||||||||
Accounts receivable, net of allowances of $32 and $21 as of December 31, 2023 and 2022, respectively | $ (2) | $ (2) | ||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff | NCR Atleos Corporation | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Conversion ratio | 0.50 | |||||||||
LibertyX | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Business combination, consideration transferred, non-cash | 68 | |||||||||
Noncash transaction debt assumed | $ 2 | |||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Remaining performance obligation, expected timing of satisfaction, period | 12 months | 12 months | ||||||||
Remaining performance obligation, percentage | 0.75% | 0.75% | ||||||||
Maximum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Software product contract term | 1 year | |||||||||
Maximum | Machinery and other equipment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Property, plant and equipment, useful life | 20 years | 20 years | ||||||||
Maximum | Building | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Property, plant and equipment, useful life | 45 years | 45 years | ||||||||
Maximum | Software Development Costs, Internal Use | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized computer software, useful life | 7 years | |||||||||
Maximum | Software and Software Development Costs | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized computer software, useful life | 5 years | |||||||||
Maximum | Revenue Benchmark | Bill and Hold Transactions | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Concentration risk, percentage | 2% | 2% | 2% | |||||||
Minimum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Software product contract term | 1 month | |||||||||
Minimum | Machinery and other equipment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Property, plant and equipment, useful life | 3 years | 3 years | ||||||||
Minimum | Building | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Property, plant and equipment, useful life | 25 years | 25 years | ||||||||
Minimum | Software Development Costs, Internal Use | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized computer software, useful life | 4 years | |||||||||
Minimum | Software and Software Development Costs | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Capitalized computer software, useful life | 3 years |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 262 | $ 221 | $ 221 | |
Short term restricted cash | 0 | 1 | 0 | |
Long term restricted cash | 2 | 0 | 1 | |
Funds held for client | 0 | 0 | 48 | |
Cash included in settlement processing assets | 21 | 16 | 16 | |
Total cash, cash equivalents and restricted cash | 285 | 238 | 286 | |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 502 | 463 | |
Cash, cash equivalents and restricted cash at beginning of period | $ 285 | $ 740 | $ 749 | $ 406 |
BASIS OF PRESENTATION AND SIG_6
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Components of Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 513 | $ 571 | |||
Less: allowance for credit losses | (32) | (21) | |||
Total accounts receivable, net | 481 | $ 940 | $ 981 | $ 1,007 | 550 |
Trade | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | 372 | 505 | |||
Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 141 | $ 66 |
BASIS OF PRESENTATION AND SIG_7
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Current portion of contract liabilities | $ 197 | $ 191 |
Non-current portion of contract liabilities | $ 19 | $ 18 |
BASIS OF PRESENTATION AND SIG_8
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Capitalized Software and Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Software [Roll Forward] | |||
Beginning balance as of January 1 | $ 463 | $ 394 | $ 354 |
Capitalization | 231 | 240 | 205 |
Amortization | (195) | (169) | (147) |
Impairment | (3) | 0 | (18) |
Capitalized software acquired or disposed of and other adjustments | (10) | (2) | 0 |
Ending balance as of December 31 | $ 486 | $ 463 | $ 394 |
DISCONTINUED OPERATIONS - Major
DISCONTINUED OPERATIONS - Major Categories of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Income (loss) from discontinued operations, net of tax | $ (61) | $ 94 | $ 57 | $ 73 | $ (6) | $ 107 | $ 100 | $ 61 | $ 130 | $ 224 | $ 163 | $ 262 | $ 435 |
Net income (loss) attributable to noncontrolling interests | 1 | (1) | 1 | 0 | 1 | 0 | (1) | 1 | |||||
Income (loss) from discontinued operations, net of tax | 93 | 58 | 72 | 130 | 223 | 163 | 263 | 434 | |||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Spin-Off of Atleos | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Total revenue | 3,248 | 4,051 | 3,464 | ||||||||||
Selling, general and administrative expenses | 537 | 457 | 447 | ||||||||||
Research and development expenses | 52 | 70 | 73 | ||||||||||
Total operating expenses | 2,937 | 3,698 | 3,016 | ||||||||||
Income from discontinued operations | 311 | 353 | 448 | ||||||||||
Interest expense | (6) | 0 | 0 | ||||||||||
Other income (expense), net | (23) | (11) | 102 | ||||||||||
Income from discontinued operations | 282 | 342 | 550 | ||||||||||
Income tax expense (benefit) | 69 | 76 | 115 | ||||||||||
Income (loss) from discontinued operations, net of tax | (94) | (58) | (73) | (131) | (225) | 213 | 266 | 435 | |||||
Net income (loss) attributable to noncontrolling interests | $ (1) | $ 1 | $ (1) | $ 0 | $ (1) | 0 | (1) | 1 | |||||
Income (loss) from discontinued operations, net of tax | 213 | 267 | 434 | ||||||||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Product | Spin-Off of Atleos | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Total revenue | 784 | 1,077 | 1,017 | ||||||||||
Costs of products and services | 633 | 946 | 818 | ||||||||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Service | Spin-Off of Atleos | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Total revenue | 2,464 | 2,974 | 2,447 | ||||||||||
Costs of products and services | $ 1,715 | $ 2,225 | $ 1,678 |
DISCONTINUED OPERATIONS - Maj_2
DISCONTINUED OPERATIONS - Major Classes of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Oct. 16, 2023 | Dec. 31, 2022 |
Current assets | |||
Total current assets | $ 0 | $ 1,690 | |
Noncurrent assets of discontinued operations | 0 | 4,338 | |
Current liabilities | |||
Total current liabilities | 0 | 1,353 | |
Noncurrent liabilities of discontinued operations | $ 0 | 764 | |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Spin-Off of Atleos | |||
Current assets | |||
Cash and cash equivalents | 284 | ||
Accounts receivable, net of allowances | 533 | ||
Inventories | 415 | ||
Restricted cash | 211 | ||
Prepaid and other current assets | 247 | ||
Total current assets | 1,690 | ||
Property, plant and equipment, net | 436 | ||
Goodwill | $ 2,474 | 2,476 | |
Intangibles, net | 729 | ||
Operating lease assets | 99 | ||
Prepaid pension cost | 177 | ||
Deferred income taxes | 269 | ||
Other assets | 152 | ||
Noncurrent assets of discontinued operations | 4,338 | ||
Total assets of discontinued operations | 6,028 | ||
Current liabilities | |||
Short-term borrowings | 3 | ||
Accounts payable | 348 | ||
Payroll and benefits liabilities | 120 | ||
Contract liabilities | 346 | ||
Settlement liabilities | 212 | ||
Other current liabilities | 324 | ||
Total current liabilities | 1,353 | ||
Long-term debt | 9 | ||
Pension and indemnity plan liabilities | 457 | ||
Postretirement and postemployment benefits liabilities | 53 | ||
Income tax accruals | 39 | ||
Operating lease liabilities | 67 | ||
Other liabilities | 139 | ||
Noncurrent liabilities of discontinued operations | 764 | ||
Total liabilities of discontinued operations | $ 2,117 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | 18 Months Ended | ||||||
Jul. 01, 2022 USD ($) | Jan. 05, 2022 USD ($) $ / shares shares | Jun. 21, 2021 USD ($) $ / shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Mar. 07, 2024 country | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | $ (1,237) | |||||||
Expected tax deductible amount of goodwill | $ 9 | |||||||
Loss - conflict in Eastern Europe | $ 22 | |||||||
Loss from discontinued operations, net of tax, environmental matters | 50 | $ 4 | 0 | |||||
Subsequent Event | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of countries transferred to discontinued operation | country | 3 | |||||||
Cardtronics | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Transaction costs | $ 46 | |||||||
LibertyX | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Share consideration value | $ 1 | |||||||
New issues (in shares) | shares | 1,400 | |||||||
Acquired share price (in dollars per share) | $ / shares | $ 42.13 | |||||||
Number of shares converted (in shares) | shares | 200 | |||||||
Total purchase consideration | $ 69 | |||||||
FIS Payment Solutions & Services Private Limited | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Total purchase consideration | $ 19 | |||||||
Payments to acquire businesses, gross | $ 12 | |||||||
Cardtronics | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Acquired share price (in dollars per share) | $ / shares | $ 39 | |||||||
Total purchase consideration | $ 2,674 | |||||||
Expected tax deductible amount of goodwill | $ 139 | |||||||
Retained Earnings (Deficit) | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | (1,056) | |||||||
Accumulated Other Comprehensive (Loss) Income | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | (182) | |||||||
Noncontrolling Interests in Subsidiaries | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | 1 | |||||||
Spin-Off of Atleos | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | (1,237) | |||||||
Spin-Off of Atleos | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Retained Earnings (Deficit) | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | (1,056) | |||||||
Spin-Off of Atleos | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Accumulated Other Comprehensive (Loss) Income | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | (182) | |||||||
Spin-Off of Atleos | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Noncontrolling Interests in Subsidiaries | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity impact as a result of separation | $ 1 |
DISCONTINUED OPERATIONS - Cash
DISCONTINUED OPERATIONS - Cash Flows from Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net cash provided by (used in) operating activities of discontinued operations | $ 19 | $ 20 | $ 68 |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Spin-Off of Atleos | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net cash provided by (used in) operating activities of discontinued operations | 283 | 243 | 803 |
Net cash provided by/(used in) investing activities | (71) | (123) | (1,789) |
Net cash provided by/(used in) financing activities | $ 0 | $ 10 | $ (3) |
DISCONTINUED OPERATIONS - Preli
DISCONTINUED OPERATIONS - Preliminary Allocation of Purchase Price, LibertyX (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 05, 2022 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||
Acquired goodwill | $ 0 | |
LibertyX | ||
Business Acquisition [Line Items] | ||
Cash acquired | $ 2 | |
Tangible assets acquired | 3 | |
Acquired intangible assets other than goodwill | 38 | |
Acquired goodwill | 40 | |
Deferred tax liabilities | (10) | |
Liabilities assumed | (4) | |
Total purchase consideration | $ 69 |
DISCONTINUED OPERATIONS - Compo
DISCONTINUED OPERATIONS - Components of Intangible Assets Acquired, LibertyX (Details) - LibertyX $ in Millions | Jan. 05, 2022 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 38 |
Direct customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 5 |
Weighted average amortization period (in years) | 10 years |
Technology - Software | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 30 |
Weighted average amortization period (in years) | 13 years |
Non-compete | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 1 |
Weighted average amortization period (in years) | 1 year |
Tradenames | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 2 |
Weighted average amortization period (in years) | 2 years |
DISCONTINUED OPERATIONS - Purch
DISCONTINUED OPERATIONS - Purchase Consideration Transferred, Cardtronics (Details) - Cardtronics $ in Millions | Jun. 21, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash paid to common stockholders and holders of certain restricted stock and stock option awards | $ 1,775 |
Debt repaid by the Company on behalf of Cardtronics | 809 |
Transaction costs paid by the Company on behalf of Cardtronics | 57 |
Fair value of converted Cardtronics awards attributable to pre-combination services | 19 |
Settlement of pre-existing relationships | 14 |
Total purchase consideration | $ 2,674 |
DISCONTINUED OPERATIONS - Pre_2
DISCONTINUED OPERATIONS - Preliminary Allocation of Purchase Price, Cardtronics (Details) - USD ($) $ in Millions | Jun. 21, 2021 | Dec. 31, 2023 | Dec. 31, 2022 |
Assets acquired | |||
Goodwill | $ 2,040 | $ 2,064 | |
Cardtronics | |||
Assets acquired | |||
Cash and restricted cash | $ 291 | ||
Trade accounts receivable | 85 | ||
Prepaid expenses, other current assets and other assets | 193 | ||
Property, plant and equipment | 362 | ||
Acquisition-related intangible assets | 864 | ||
Total assets acquired | 1,795 | ||
Liabilities assumed | 733 | ||
Net assets acquired, excluding goodwill | 1,062 | ||
Total purchase consideration | 2,674 | ||
Goodwill | $ 1,612 |
DISCONTINUED OPERATIONS - Com_2
DISCONTINUED OPERATIONS - Components of Intangible Assets Acquired, Cardtronics (Details) - Cardtronics $ in Millions | Jun. 21, 2021 USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 864 |
Direct customer relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 373 |
Weighted average amortization period (in years) | 15 years |
Technology - Software | |
Business Acquisition [Line Items] | |
Fair Value | $ 441 |
Weighted average amortization period (in years) | 8 years |
Non-compete | |
Business Acquisition [Line Items] | |
Fair Value | $ 1 |
Weighted average amortization period (in years) | 1 year |
Tradenames | |
Business Acquisition [Line Items] | |
Fair Value | $ 49 |
Weighted average amortization period (in years) | 4 years |
BUSINESS COMBINATIONS AND DIV_3
BUSINESS COMBINATIONS AND DIVESTITURES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Oct. 19, 2023 | Mar. 31, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Expected tax deductible amount of goodwill | $ 9 | ||
Proceeds from divestitures, net | $ 82 | ||
Freshop, Terafina, Dumac | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 126 | $ 126 |
BUSINESS COMBINATIONS AND DIV_4
BUSINESS COMBINATIONS AND DIVESTITURES - Preliminary Allocation of Purchase Price, Freshop, Terafina, Dumac (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Acquired goodwill | $ 0 | ||
Freshop, Terafina, Dumac | |||
Business Acquisition [Line Items] | |||
Cash and restricted cash | $ 2 | ||
Total assets acquired | 7 | ||
Acquired intangible assets other than goodwill | 52 | ||
Acquired goodwill | 81 | ||
Deferred tax liabilities | (3) | ||
Liabilities assumed | (13) | ||
Total purchase consideration | $ 126 | $ 126 |
BUSINESS COMBINATIONS AND DIV_5
BUSINESS COMBINATIONS AND DIVESTITURES - Components of Intangible Assets Acquired, Freshop, Terafina, Dumac (Details) - Freshop, Terafina, Dumac $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Fair Value | $ 52 |
Direct customer relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 11 |
Weighted average amortization period (in years) | 10 years |
Technology - Software | |
Business Acquisition [Line Items] | |
Fair Value | $ 36 |
Weighted average amortization period (in years) | 8 years |
Non-compete | |
Business Acquisition [Line Items] | |
Fair Value | $ 1 |
Weighted average amortization period (in years) | 1 year |
Tradenames | |
Business Acquisition [Line Items] | |
Fair Value | $ 4 |
Weighted average amortization period (in years) | 9 years |
GOODWILL AND PURCHASED INTANG_3
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 2,121 |
Accumulated impairment, beginning balance | (57) |
Total beginning balance | 2,064 |
Acquired goodwill | 0 |
Impairment | 0 |
Other | (24) |
Goodwill, ending balance | 2,097 |
Accumulated impairment, ending balance | (57) |
Total ending balance | 2,040 |
Retail | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,077 |
Accumulated impairment, beginning balance | (34) |
Total beginning balance | 1,043 |
Acquired goodwill | 0 |
Impairment | 0 |
Other | 4 |
Goodwill, ending balance | 1,081 |
Accumulated impairment, ending balance | (34) |
Total ending balance | 1,047 |
Restaurants | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 495 |
Accumulated impairment, beginning balance | (23) |
Total beginning balance | 472 |
Acquired goodwill | 0 |
Impairment | 0 |
Other | 0 |
Goodwill, ending balance | 495 |
Accumulated impairment, ending balance | (23) |
Total ending balance | 472 |
Digital Banking | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 521 |
Accumulated impairment, beginning balance | 0 |
Total beginning balance | 521 |
Acquired goodwill | 0 |
Impairment | 0 |
Other | 0 |
Goodwill, ending balance | 521 |
Accumulated impairment, ending balance | 0 |
Total ending balance | 521 |
Other | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 28 |
Accumulated impairment, beginning balance | 0 |
Total beginning balance | 28 |
Acquired goodwill | 0 |
Impairment | 0 |
Other | (28) |
Goodwill, ending balance | 0 |
Accumulated impairment, ending balance | 0 |
Total ending balance | $ 0 |
GOODWILL AND PURCHASED INTANG_4
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 71 | $ 71 | $ 76 |
GOODWILL AND PURCHASED INTANG_5
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Schedule of Acquired Intangibles (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,327 | $ 1,417 |
Accumulated Amortization | (1,036) | (1,001) |
Direct customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 665 | 714 |
Accumulated Amortization | (438) | (405) |
Intellectual property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 494 | 536 |
Accumulated Amortization | $ (433) | (433) |
Customer contracts | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (in Years) | 8 years | |
Gross Carrying Amount | $ 89 | 89 |
Accumulated Amortization | (89) | (89) |
Tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 79 | 78 |
Accumulated Amortization | $ (76) | $ (74) |
Minimum | Direct customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (in Years) | 1 year | |
Minimum | Intellectual property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (in Years) | 2 years | |
Minimum | Tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (in Years) | 1 year | |
Maximum | Direct customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (in Years) | 20 years | |
Maximum | Intellectual property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (in Years) | 8 years | |
Maximum | Tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (in Years) | 10 years |
GOODWILL AND PURCHASED INTANG_6
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Amorization Expense (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 57 |
2025 | 50 |
2026 | 47 |
2027 | 41 |
2028 | $ 29 |
SEGMENT INFORMATION AND CONCE_3
SEGMENT INFORMATION AND CONCENTRATION - Revenue and Operating Income By Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | $ 963 | $ 978 | $ 967 | $ 922 | $ 966 | $ 960 | $ 950 | $ 917 | $ 1,889 | $ 2,867 | $ 3,830 | $ 3,793 | $ 3,692 |
Corporate and other income and expenses not allocated to segments | 211 | 181 | 322 | ||||||||||
Pension mark-to-market adjustments | 7 | (41) | (7) | ||||||||||
Transformation and restructuring costs | 39 | 96 | 53 | ||||||||||
Fraudulent ACH disbursements(2) | 23 | 0 | 0 | ||||||||||
Amortization expense | 71 | 71 | 76 | ||||||||||
Acquisition-related costs | 1 | 2 | 3 | ||||||||||
Interest expense | 83 | 91 | 83 | 174 | 257 | 294 | 285 | 238 | |||||
Interest income | (13) | (13) | (8) | ||||||||||
Depreciation and amortization | 252 | 237 | 220 | ||||||||||
Income tax expense (benefit) | 185 | 8 | 7 | 15 | 200 | 204 | 72 | 70 | |||||
Stock-based compensation expense | 150 | 90 | 121 | ||||||||||
Separation costs | 99 | 0 | 0 | ||||||||||
Loss on disposal of businesses | 12 | 0 | 0 | ||||||||||
Loss on debt extinguishment | 0 | 0 | 0 | 0 | 0 | 46 | 0 | 42 | |||||
Cyber ransomware incident recovery costs | 17 | 0 | 0 | ||||||||||
Net income (loss) from continuing operations attributable to NCR Voyix (GAAP) | (222) | $ (41) | $ (65) | $ (106) | $ (328) | (586) | (203) | (337) | |||||
Gain on terminated interest rate derivatives agreement | $ 18 | ||||||||||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | ||||||||||||
Operating Segments | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 3,642 | 3,586 | 3,453 | ||||||||||
Adjusted EBITDA by Segment | 827 | 777 | 793 | ||||||||||
Operating Segments | Retail | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 2,177 | 2,182 | 2,138 | ||||||||||
Adjusted EBITDA by Segment | 411 | 384 | 427 | ||||||||||
Operating Segments | Restaurants | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 886 | 857 | 794 | ||||||||||
Adjusted EBITDA by Segment | 197 | 160 | 150 | ||||||||||
Operating Segments | Digital Banking | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 579 | 547 | 521 | ||||||||||
Adjusted EBITDA by Segment | 219 | 233 | 216 | ||||||||||
Corporate, Non-Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | $ 188 | $ 207 | $ 239 |
SEGMENT INFORMATION AND CONCE_4
SEGMENT INFORMATION AND CONCENTRATION - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | $ 963 | $ 978 | $ 967 | $ 922 | $ 966 | $ 960 | $ 950 | $ 917 | $ 1,889 | $ 2,867 | $ 3,830 | $ 3,793 | $ 3,692 |
Recurring revenue | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | 2,195 | 2,120 | 2,069 | ||||||||||
All other products and services | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | $ 1,635 | $ 1,673 | $ 1,623 |
SEGMENT INFORMATION AND CONCE_5
SEGMENT INFORMATION AND CONCENTRATION - Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Revenue | $ 963 | $ 978 | $ 967 | $ 922 | $ 966 | $ 960 | $ 950 | $ 917 | $ 1,889 | $ 2,867 | $ 3,830 | $ 3,793 | $ 3,692 |
Percentage of revenues by geographic area | 100% | 100% | 100% | ||||||||||
United States | |||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Revenue | $ 2,540 | $ 2,560 | $ 2,367 | ||||||||||
Percentage of revenues by geographic area | 67% | 67% | 65% | ||||||||||
Americas (excluding United States) | |||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Revenue | $ 281 | $ 254 | $ 226 | ||||||||||
Percentage of revenues by geographic area | 7% | 7% | 6% | ||||||||||
Europe, Middle East and Africa | |||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Revenue | $ 653 | $ 594 | $ 643 | ||||||||||
Percentage of revenues by geographic area | 17% | 16% | 17% | ||||||||||
Asia Pacific | |||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Revenue | $ 356 | $ 385 | $ 456 | ||||||||||
Percentage of revenues by geographic area | 9% | 10% | 12% |
SEGMENT INFORMATION AND CONCE_6
SEGMENT INFORMATION AND CONCENTRATION - Property, Plant and Equipment by Geography (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 212 | $ 227 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 177 | 187 |
Americas (excluding United States) | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2 | 2 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 29 | 32 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 4 | $ 6 |
SEGMENT INFORMATION AND CONCE_7
SEGMENT INFORMATION AND CONCENTRATION - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Benchmark | Customer Concentration Risk | One Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 13% | 10% |
DEBT OBLIGATIONS - Short-term B
DEBT OBLIGATIONS - Short-term Borrowings and Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Aug. 20, 2020 | Aug. 21, 2019 |
Debt Instrument [Line Items] | ||||
Short-term borrowings | $ 15 | $ 101 | ||
Long-term debt | 2,563 | 5,552 | ||
Deferred financing fees | (20) | (49) | ||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 185 | $ 1,778 | ||
Weighted-Average Interest Rate | 8.46% | 6.69% | ||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 98 | $ 523 | ||
Weighted-Average Interest Rate | 9.07% | 6.79% | ||
5.750% Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 500 | ||
Interest rate, stated percentage | 5.75% | 5.75% | ||
5.000% Senior Notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 650 | 650 | $ 650 | |
Interest rate, stated percentage | 5% | |||
5.125% Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,200 | 1,200 | ||
Interest rate, stated percentage | 5.125% | |||
6.125% Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 500 | ||
Interest rate, stated percentage | 6.125% | 6.125% | ||
5.250% Senior Notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 450 | 450 | $ 450 | |
Interest rate, stated percentage | 5.25% | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Current portion of Senior Secured Credit Facility | $ 15 | $ 100 | ||
Weighted-Average Interest Rate | 8.46% | 6.54% | ||
Other | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | $ 0 | $ 1 | ||
Weighted-Average Interest Rate | 7.38% | 7.05% |
DEBT OBLIGATIONS - Additional I
DEBT OBLIGATIONS - Additional Information, Credit Facilities (Details) - USD ($) $ in Millions | Oct. 16, 2023 | Sep. 27, 2023 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | |||
Aggregate principal amount of term loan A facility | $ 1,305 | ||
Senior secured incremental term loan B facility | 750 | ||
Term Loan A Facility | Medium-term Notes | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 200 | ||
Debt instrument, term | 5 years | ||
Term Loan A Facility | Medium-term Notes | First Three Years | |||
Line of Credit Facility [Line Items] | |||
Interest rate, effective percentage | 1.875% | ||
Repayment term | 3 years | ||
Term Loan A Facility | Medium-term Notes | Last Two Years | |||
Line of Credit Facility [Line Items] | |||
Interest rate, effective percentage | 2.50% | ||
Repayment term | 2 years | ||
Term Loan A Facility | Medium-term Notes | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument covenant consolidated leverage ratio | 5 | ||
Secured Debt | Revolving | |||
Line of Credit Facility [Line Items] | |||
Secured credit facility maximum borrowing amount | $ 1,300 | ||
Atleos Credit Agreement | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 2,085 | ||
Atleos Credit Agreement | Line of Credit | Revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, term | 5 years | ||
Maximum borrowing capacity | $ 500 | ||
Atleos Credit Agreement | Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 75 | ||
Atleos Credit Agreement | Line of Credit | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 200 | ||
Atleos Term Loan A Facility | Medium-term Notes | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 835 | ||
Debt instrument, term | 5 years | ||
Atleos Term Loan B Facility | Medium-term Notes | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 750 | ||
Debt instrument, term | 5 years 6 months | ||
Credit Agreement | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 700 | ||
Credit Agreement | Line of Credit | Revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, term | 5 years | ||
Maximum borrowing capacity | $ 500 | ||
Credit Agreement | Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 51 | ||
Credit Agreement | Line of Credit | Foreign Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 200 | ||
New Loans | Term Loans And Revolving Credit Facility | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
New Loans | Term Loans And Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1% | ||
New Loans | Term Loans And Revolving Credit Facility | Maximum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 2.25% | ||
New Loans | Term Loans And Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) | |||
Line of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 3.25% | ||
New Loans | Term Loans And Revolving Credit Facility | Minimum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 1.25% | ||
New Loans | Term Loans And Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) | |||
Line of Credit Facility [Line Items] | |||
Additional basis spread on variable rate | 2.25% | ||
Period One | Term Loan A Facility | Medium-term Notes | |||
Line of Credit Facility [Line Items] | |||
Debt instrument covenant consolidated leverage ratio | 4.75 | ||
Period Two | Term Loan A Facility | Medium-term Notes | |||
Line of Credit Facility [Line Items] | |||
Debt instrument covenant consolidated leverage ratio | 4.50 | ||
Period Three | Term Loan A Facility | Medium-term Notes | |||
Line of Credit Facility [Line Items] | |||
Debt instrument covenant consolidated leverage ratio | 4.25 | ||
Additional consolidated leverage ratio | 25% |
DEBT OBLIGATIONS - Additional_2
DEBT OBLIGATIONS - Additional Information, Senior Notes (Details) - USD ($) $ in Millions | Apr. 15, 2026 | Apr. 15, 2025 | Apr. 15, 2024 | Oct. 17, 2023 | Apr. 06, 2021 | Aug. 20, 2020 | Dec. 31, 2023 | Sep. 27, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 21, 2019 |
Debt Instrument [Line Items] | |||||||||||
Debt maturities | $ 2,578 | ||||||||||
Write off of deferred debt issuance cost | $ 8 | ||||||||||
Cash redemption premium, writeoff | $ 24 | ||||||||||
Long-term debt | $ 2,563 | $ 5,552 | |||||||||
Percentage of Note required outstanding | 55% | ||||||||||
At any time and from time to time, prior to April 15, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 105.125% | ||||||||||
5.750% Senior Notes due 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt maturities | $ 500 | ||||||||||
Interest rate, stated percentage | 5.75% | 5.75% | |||||||||
Long-term debt | $ 0 | 500 | |||||||||
6.125% Senior Notes due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt maturities | $ 500 | ||||||||||
Interest rate, stated percentage | 6.125% | 6.125% | |||||||||
Long-term debt | $ 0 | 500 | |||||||||
Senior Notes | 6.125% Senior Notes due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 103.074% | ||||||||||
Senior Notes | Atleos Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 9,500,000% | ||||||||||
Aggregate principal amount | $ 1,350 | ||||||||||
Senior Notes | 5.750% Senior Notes due 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 101.438% | ||||||||||
5.000% Senior Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 5% | ||||||||||
Long-term debt | $ 650 | 650 | 650 | ||||||||
5.000% Senior Notes due 2028 | From time to time, prior to October 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 105% | ||||||||||
5.000% Senior Notes due 2028 | Twelve Month Period Commencing October 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 102.50% | ||||||||||
5.000% Senior Notes due 2028 | Twelve Month Period Commencing October 1, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 101.25% | ||||||||||
5.250% Senior Notes due 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 5.25% | ||||||||||
Long-term debt | $ 450 | $ 450 | $ 450 | ||||||||
5.250% Senior Notes due 2030 | From time to time, prior to October 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 105.25% | ||||||||||
5.250% Senior Notes due 2030 | Twelve month period commencing on October 1, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 102.625% | ||||||||||
5.250% Senior Notes due 2030 | Twelve Month Period Commencing October 1, 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 101.75% | ||||||||||
5.250% Senior Notes due 2030 | Twelve Month Period Commencing October 1, 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 100.875% | ||||||||||
5.250% Senior Notes due 2030 | Twelve Month Period Commencing October 1, 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 100% | ||||||||||
5.000% and 5.250% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount of Notes required to remaing outstanding | 0.55 | ||||||||||
5.000% and 5.250% Senior Notes | From time to time, prior to October 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 40% | ||||||||||
5.000% and 5.250% Senior Notes | Prior to October 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 100% | ||||||||||
5.125% Senior Notes due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 5.125% | ||||||||||
Long-term debt, gross | $ 1,200 | ||||||||||
Maximum redeemable percentage | 40% | ||||||||||
5.125% Senior Notes due 2029 | Prior to April 15, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 100% | ||||||||||
5.125% Senior Notes due 2029 | On or after April 15; redeemed in 2024 | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 102.563% | ||||||||||
5.125% Senior Notes due 2029 | On or after April 15; redeemed in 2025 | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 101.281% | ||||||||||
5.125% Senior Notes due 2029 | On or after April 15; redeemed in 2026 and thereafter | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument redemption price as percentage of principle amount | 100% |
DEBT OBLIGATIONS - Additional_3
DEBT OBLIGATIONS - Additional Information, Other Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Debt instrument, fair value disclosure | $ 5,250 | $ 2,470 |
Banc of America Leasing & Capital, LLC | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit outstanding | $ 12 | |
Interest rate during period | 7.21% | |
Debt instrument, term | 3 years 8 months 12 days |
DEBT OBLIGATIONS - Maturities o
DEBT OBLIGATIONS - Maturities of Long Term Debt (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Debt maturities | $ 2,578 |
2024 | 15 |
2025 | 16 |
2026 | 15 |
2027 | 19 |
2028 | 786 |
Thereafter | $ 1,727 |
TRADE RECEIVABLES FACILITY (Det
TRADE RECEIVABLES FACILITY (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 16, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||||
Trade receivable facility maturity term | 2 years | |||
Accounts receivable sales agreement amount | $ 300 | |||
Accounts receivable, sale | 288 | $ 300 | $ 300 | |
Trade receivables securitization facility, collateral at period end | $ 107 | $ 224 |
INCOME TAXES - Income from Cont
INCOME TAXES - Income from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
(Loss) Income Before Income Taxes [Abstract] | ||||||||
United States | $ (323) | $ (212) | $ (260) | |||||
Foreign | (59) | 81 | (7) | |||||
Income (loss) from continuing operations before income taxes | $ (37) | $ (33) | $ (58) | $ (91) | $ (128) | $ (382) | $ (131) | $ (267) |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||||||||
Federal | $ 26 | $ 1 | $ 5 | |||||
State | 3 | 3 | 3 | |||||
Foreign | 35 | 30 | 36 | |||||
Deferred | ||||||||
Federal | (32) | (3) | 62 | |||||
State | (6) | (2) | (10) | |||||
Foreign | 178 | 43 | (26) | |||||
Total income tax expense (benefit) | $ 185 | $ 8 | $ 7 | $ 15 | $ 200 | $ 204 | $ 72 | $ 70 |
INCOME TAXES - Income Tax Recon
INCOME TAXES - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||||||
Income tax (benefit) expense at the U.S. federal tax rate of 21% | $ (80) | $ (28) | $ (56) | |||||
Foreign income tax differential | 1 | (8) | 13 | |||||
Additional U.S. tax on foreign income | 9 | (2) | 4 | |||||
State and local income taxes (net of federal effect) | (2) | 1 | (5) | |||||
Other U.S. permanent book/tax differences | 5 | 4 | 4 | |||||
Meals and entertainment expense | 2 | 1 | 1 | |||||
Nondeductible transaction costs | 2 | 1 | 0 | |||||
Nondeductible executive compensation | 17 | 9 | 13 | |||||
Dispositions | 16 | 0 | 0 | |||||
Spin-off of NCR Atleos | 226 | 0 | 0 | |||||
Gains/losses on internal entity restructuring | 0 | 0 | 55 | |||||
Excess (benefit)/deficit from share-based payments | 2 | 0 | (11) | |||||
Change in branch tax status | 0 | 0 | 1 | |||||
Research and development tax credits | (2) | (5) | (5) | |||||
Foreign tax law changes | (8) | 3 | (14) | |||||
Valuation allowances | 20 | 103 | 56 | |||||
Change in liability for unrecognized tax benefits | 3 | (15) | 0 | |||||
Change in tax estimates for prior periods | (5) | 4 | 17 | |||||
Other, net | (2) | 4 | (3) | |||||
Total income tax expense (benefit) | $ 185 | $ 8 | $ 7 | $ 15 | $ 200 | $ 204 | $ 72 | $ 70 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | |||
Spin-off of NCR Atleos | $ 226 | $ 0 | $ 0 |
Valuation allowances | 20 | 103 | 56 |
Valuation allowance against interest expense deduction carryforwards | 20 | 103 | |
Income tax expense, continuing operations, discontinued operations | 226 | ||
Undistributed earnings of foreign subsidiaries | 258 | ||
Undistributed foreign earnings | 19 | ||
U.S. federal and foreign tax attribute carryforwards | 622 | ||
Total amount of gross unrecognized tax benefits that would affect NCR's effective tax rate if realized | 44 | ||
Recognized interest and penalties expense (benefit) associated with uncertain tax positions | 4 | (1) | $ 0 |
Interest and penalties accrued associated with uncertain tax positions | 18 | $ 26 | |
Minimum | |||
Income Tax Disclosure [Line Items] | |||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, upper bound | 6 | ||
Maximum | |||
Income Tax Disclosure [Line Items] | |||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, upper bound | 8 | ||
Domestic Tax Authority | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforward, amount | $ 105 |
INCOME TAXES - Deferred Taxes (
INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets | ||
Employee pensions and other benefits | $ 7 | $ 41 |
Other balance sheet reserves and allowances | 200 | 205 |
Tax loss and credit carryforwards | 245 | 346 |
Capitalized research and development | 51 | 30 |
Property, plant and equipment | 17 | 18 |
Lease liabilities | 56 | 70 |
Capitalized software | 15 | 0 |
Other | 26 | 25 |
Total deferred income tax assets | 617 | 735 |
Valuation allowance | (211) | (274) |
Net deferred income tax assets | 406 | 461 |
Deferred income tax liabilities | ||
Intangibles | 119 | 41 |
Right of use assets | 57 | 72 |
Capitalized software | 0 | 19 |
Total deferred income tax liabilities | 176 | 132 |
Total net deferred income tax assets | $ 230 | $ 329 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits - January 1 | $ 87 | $ 121 | $ 103 |
Increases related to tax positions from prior years | 1 | 3 | 25 |
Decreases related to tax positions from prior years | (1) | (15) | (4) |
Increases related to tax provisions taken during the current year | 2 | 7 | 7 |
Settlements with tax authorities | 0 | (22) | (2) |
Lapses of statutes of limitation | (1) | (7) | (8) |
Distributions to NCR Atleos | (30) | 0 | 0 |
Total gross unrecognized tax benefits - December 31 | $ 58 | $ 87 | $ 121 |
STOCK COMPENSATION PLANS - Allo
STOCK COMPENSATION PLANS - Allocated Compensation, Assumptions and Shares Available (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Restricted stock units | $ 141 | $ 66 | $ 93 |
Stock options | 3 | 15 | 20 |
Employee stock purchase plan | 6 | 9 | 8 |
Stock-based compensation expense | 150 | 90 | 121 |
Tax benefit | (7) | (5) | (8) |
Total stock-based compensation (net of tax) | $ 143 | $ 85 | $ 113 |
STOCK COMPENSATION PLANS - Addi
STOCK COMPENSATION PLANS - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Feb. 13, 2023 | Dec. 21, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of shares vested and distributed | $ 132 | $ 121 | $ 92 | ||
Total unrecognized compensation cost, period of recognition | 10 months 24 days | ||||
Shares granted (in dollars per share) | $ 35.04 | $ 29.66 | $ 35.08 | $ 34 | |
Performance-based units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in dollars per share) | $ 20.32 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation | $ 49 | ||||
Shares granted (in dollars per share) | $ 16.25 | ||||
Weighted average grant date fair value | 19.86 | $ 17.93 | |||
Performance Shares | Restricted stock units granted February 23, 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value | $ 57.67 | ||||
Performance Shares | Share-based Payment Arrangement, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 50% | 50% | |||
Vesting period | 1 year | 1 year | |||
Weighted average closing stock price per day volume | 20 days | 20 days | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of all options exercised | $ 1 | $ 7 | $ 9 | ||
Cash received from option exercises | 2 | 1 | 25 | ||
Tax benefit | $ 0 | 1 | 2 | ||
Shares remain unissued (in shares) | 4.6 | ||||
Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized (in shares) | 4 | ||||
Employees purchased | $ 19 | $ 29 | $ 26 | ||
Amended Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized (in shares) | 10 | ||||
Minimum | Performance-based units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award requisite service period | 12 months | ||||
Minimum | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value | $ 35.09 | $ 30 | |||
Minimum | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Maximum | Performance-based units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award requisite service period | 48 months | ||||
Maximum | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value | $ 41.77 | $ 35.81 | |||
Maximum | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 10 years | ||||
Stock Incentive Plan, 2006 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized (in shares) | 39 | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Discount on stock purchases | 15% | ||||
Look-back period | 3 months | ||||
Minimum employee subscription rate | 1% | ||||
Maximum employee subscription rate | 10% | ||||
Employee stock purchase plan, shares purchased (in shares) | 0.9 | 1.3 | 0.8 |
STOCK COMPENSATION PLANS - Rest
STOCK COMPENSATION PLANS - Restricted Stock and Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||||
Feb. 13, 2023 | Dec. 21, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Units | |||||
Shares transferred (in shares) | (3,868) | ||||
Weighted Average Grant-Date Fair Value per Unit | |||||
Shares granted (in dollars per share) | $ 35.04 | $ 29.66 | $ 35.08 | $ 34 | |
Shares transferred (in dollars per share) | $ 15.94 | ||||
Restricted Stock | |||||
Number of Units | |||||
Unvested shares as of January 1 (in shares) | 15,676 | ||||
Shares granted (in shares) | 3,859 | ||||
Shares vested (in shares) | (7,351) | ||||
Shares forfeited (in shares) | (1,094) | ||||
Unvested shares as of December 31 (in shares) | 7,222 | 15,676 | |||
Weighted Average Grant-Date Fair Value per Unit | |||||
Beginning balance (in dollars per share) | $ 17.93 | ||||
Shares granted (in dollars per share) | 16.25 | ||||
Shares vested (in dollars per share) | 19.75 | ||||
Shares forfeited (in dollars per share) | 18.58 | ||||
Ending balance (in dollars per share) | $ 19.86 | $ 17.93 |
STOCK COMPENSATION PLANS - Comp
STOCK COMPENSATION PLANS - Composition of Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||||
Feb. 13, 2023 | Dec. 21, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted Average Grant Date Fair Value (in dollars per share) | $ 35.04 | $ 29.66 | $ 35.08 | $ 34 | |
Service-based units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of units (in shares) | 2,254 | ||||
Weighted Average Grant Date Fair Value (in dollars per share) | $ 13.44 | ||||
Performance-based units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of units (in shares) | 1,605 | ||||
Weighted Average Grant Date Fair Value (in dollars per share) | $ 20.32 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of units (in shares) | 3,859 | ||||
Weighted Average Grant Date Fair Value (in dollars per share) | $ 16.25 |
STOCK COMPENSATION PLANS - Assu
STOCK COMPENSATION PLANS - Assumptions Used in Determining Fair Value of Stock Units (Details) | 12 Months Ended | |
Feb. 13, 2023 | Dec. 31, 2023 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | |
Risk-free interest rate | 3.90% | |
Expected volatility | 64.93% | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | |
Risk-free interest rate | 4.15% | |
Expected volatility | 55.90% | |
Restricted stock units granted February 23, 2021 | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | |
Risk-free interest rate | 1.73% | |
Expected volatility | 59.26% |
STOCK COMPENSATION PLANS - Stoc
STOCK COMPENSATION PLANS - Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Transferred (in shares) | shares | (470) |
Weighted Average Exercise Price per Share | |
Transferred (in dollars per share) | $ / shares | $ 23.59 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding as of January 1 (in shares) | shares | 8,696 |
Granted (in shares) | shares | 470 |
Exercised (in shares) | shares | (122) |
Forfeited or expired (in shares) | shares | (248) |
Outstanding as of December 31 (in shares) | shares | 8,326 |
Weighted Average Exercise Price per Share | |
Outstanding as of January 1 (in dollars per share) | $ / shares | $ 19.57 |
Granted (in dollars per share) | $ / shares | 23.59 |
Exercised (in dollars per share) | $ / shares | 17 |
Forfeited or expired (in dollars per share) | $ / shares | 35.04 |
Outstanding as of December 31 (in dollars per share) | $ / shares | $ 19.09 |
Stock Options Additional Disclosures | |
Outstanding, Weighted Average Remaining Contratual Term (in years) | 2 years 3 months 18 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 4,440 |
Fully vested and expected to vest, Shares Under Option (in shares) | shares | 8,326 |
Fully vested and expected to vest, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares | $ 19.09 |
Fully vested and expected to vest, Weighted Average Remaining Contractual Term | 2 years 3 months 18 days |
Fully vested and expected to vest, Aggregate Intrinsic Value | $ | $ 4,440 |
Exercisable, Shares Under Option (in shares) | shares | 8,326 |
Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares | $ 19.09 |
Exercisable, Weighted Average Remaining Contractual Term (in years) | 2 years 3 months 18 days |
Exercisable, Aggregate Intrinsic Value dollars per share) | $ | $ 4,440 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Annual contribution to costs, percent | 50% | ||
Expected amortization, next fiscal year | $ 1 | ||
NCR Atleos Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution threshold | 40 | ||
Total Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 163 | $ 147 | |
Accumulated benefit obligation | 162 | 149 | |
Plan assets | $ 0 | $ 0 | |
U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average interest crediting rate | 1.40% | 1% | |
International Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions, next fiscal year | $ 13 | ||
Postemployment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions, next fiscal year | 21 | ||
Defined Contribution, U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | 22 | $ 26 | $ 22 |
Defined Contribution, All Other Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | $ 11 | $ 11 | $ 14 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation and Plan Assets, Funded Status, Amounts Recognized in Balance Sheet, and ABO in Excess of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Separation costs | $ 99 | $ 0 | $ 0 |
International Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation as of January 1 | 178 | 249 | |
Net service cost | 2 | 2 | 2 |
Interest cost | (6) | (2) | (1) |
Actuarial (gain) loss | 15 | (43) | |
Benefits paid | (14) | (13) | |
Settlements | 0 | 0 | |
Plan participant contributions | 0 | 0 | |
Currency translation adjustments | 5 | (19) | |
Benefit obligation as of December 31 | 192 | 178 | 249 |
Accumulated benefit obligation as of December 31 | 191 | 175 | |
Postemployment Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation as of January 1 | 93 | 64 | |
Net service cost | 15 | 58 | 15 |
Interest cost | (2) | (1) | (1) |
Actuarial (gain) loss | 9 | (9) | |
Benefits paid | (54) | (18) | |
Currency translation adjustments | 0 | (3) | |
Benefit obligation as of December 31 | $ 65 | 93 | $ 64 |
Separation costs | $ 50 |
EMPLOYEE BENEFIT PLANS - Chan_2
EMPLOYEE BENEFIT PLANS - Change in Plan Assets (Details) - International Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets as of January 1 | $ 56 | $ 51 | $ 64 |
Actual return on plan assets | 10 | (3) | |
Company contributions | 13 | 12 | |
Benefits paid | (14) | (13) | |
Settlement | 0 | 0 | |
Currency translation adjustments | (4) | (9) | |
Plan participant contributions | 0 | 0 | |
Fair value of plan assets as of December 31 | $ 56 | $ 51 |
EMPLOYEE BENEFIT PLANS - Reconc
EMPLOYEE BENEFIT PLANS - Reconciliation of Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Noncurrent assets | $ 43 | $ 35 | |
Amounts recognized in accumulated other comprehensive loss | |||
Amortization of actuarial (loss) gain | 1 | 0 | $ 1 |
Amortization of prior service cost | (1) | (2) | $ (1) |
International Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded Status | (136) | (127) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Noncurrent assets | 43 | 40 | |
Current liabilities | 12 | 11 | |
Noncurrent liabilities | 167 | 156 | |
Net amounts recognized | (136) | (127) | |
Amounts recognized in accumulated other comprehensive loss | |||
Prior service cost | 0 | 0 | |
Total | 0 | 0 | |
Postemployment Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Funded Status | 65 | 93 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Current liabilities | 22 | 57 | |
Noncurrent liabilities | 43 | 36 | |
Net amounts recognized | 65 | 93 | |
Amounts recognized in accumulated other comprehensive loss | |||
Net actuarial (gain) loss | (9) | 9 | |
Amortization of actuarial (loss) gain | 1 | 0 | |
Amortization of prior service cost | 1 | 1 | |
Total | $ 11 | $ (8) |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit (Income) Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
International Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Net service cost | $ 2 | $ 2 | $ 2 |
Interest cost | 6 | 2 | 1 |
Expected return on plan assets | (2) | (1) | (1) |
Amortization of prior service cost | 0 | 0 | 0 |
Actuarial (gain) loss | 7 | (41) | (7) |
Net periodic benefit (income) cost | 13 | (38) | (5) |
Postemployment Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Net service cost | 15 | 58 | 15 |
Interest cost | 2 | 1 | 1 |
Amortization of prior service cost | (1) | (1) | (1) |
Actuarial (gain) loss | (1) | 0 | (1) |
Net periodic benefit cost | $ 15 | $ 58 | $ 14 |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions, Market-Related Value, and Unrecognized Loss (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
International Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3% | 3.40% | |
Rate of compensation increase | 2.40% | 1% | |
Discount rate - Service Cost | 1.80% | 0.80% | 0.60% |
Discount rate - Interest Cost | 3.40% | 0.70% | 0.30% |
Expected return on plan assets | 5% | 2.10% | 2% |
Rate of compensation increase | 1% | 0.90% | 0.70% |
Postemployment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.10% | 5.10% | |
Discount rate - Interest Cost | 2.30% | 1.40% | |
Rate of compensation increase | 3.40% | 3.10% | |
Rate of compensation increase | 2.60% | 2% | |
Involuntary turnover rate | 3.80% | 3.80% | |
Involuntary turnover rate | 3.80% | 3.80% |
EMPLOYEE BENEFIT PLANS - Actual
EMPLOYEE BENEFIT PLANS - Actual and Target Allocations (Details) - International Pension Benefits | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Actual Allocation of Plan Assets as of December 31 | 100% | 100% |
Equity and other investments | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Actual Allocation of Plan Assets as of December 31 | 66% | 62% |
Target Asset Allocation | 62.50% | |
Debt securities | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Actual Allocation of Plan Assets as of December 31 | 34% | 37% |
Target Asset Allocation | 37.20% | |
Other | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||
Actual Allocation of Plan Assets as of December 31 | 1% | 0% |
Target Asset Allocation | 0.30% |
EMPLOYEE BENEFIT PLANS - Unobse
EMPLOYEE BENEFIT PLANS - Unobservable Input Reconciliation (Details) - International Pension Benefits - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | $ 56 | $ 51 | $ 64 |
Not Subject to Leveling | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 56 | 51 | |
Common and commingled trusts - Equities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 37 | 32 | |
Common and commingled trusts - Equities | Not Subject to Leveling | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 37 | 32 | |
Common and commingled trusts - Bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 19 | 19 | |
Common and commingled trusts - Bonds | Not Subject to Leveling | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 19 | 19 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common and commingled trusts - Equities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common and commingled trusts - Bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Common and commingled trusts - Equities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Common and commingled trusts - Bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Common and commingled trusts - Equities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Common and commingled trusts - Bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined benefit plan, plan assets, amount | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
International Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 15 |
2025 | 14 |
2026 | 14 |
2027 | 14 |
2028 | 14 |
2029-2033 | 60 |
Postemployment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 21 |
2025 | 8 |
2026 | 8 |
2027 | 7 |
2028 | 7 |
2029-2033 | $ 31 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended | ||||
Mar. 29, 2018 USD ($) company | Dec. 31, 2023 USD ($) entity company | Dec. 31, 2022 USD ($) | Dec. 31, 2013 company | Dec. 31, 2010 affiliateCorporation defendant | |
Loss Contingencies [Line Items] | |||||
Ebina waste disposal percentage; low concentration | 99% | ||||
Ebina waste disposal percentage; high concentration | 98% | ||||
NCR Atleos Corporation | |||||
Loss Contingencies [Line Items] | |||||
Environmental contingencies, threshold | 50% | ||||
Environmental contingencies, threshold amount | $ 15 | ||||
Minimum | Kalamazoo River Site | |||||
Loss Contingencies [Line Items] | |||||
Anticipated contribution from co-obligors and indemnitors | 70 | ||||
Maximum | Kalamazoo River Site | |||||
Loss Contingencies [Line Items] | |||||
Anticipated contribution from co-obligors and indemnitors | $ 155 | ||||
Fox River Site | |||||
Loss Contingencies [Line Items] | |||||
Number of potentially responsible parties | entity | 8 | ||||
Percentage of funding obligation under cost sharing agreement | 50% | ||||
Percentage of obligation under cost sharing agreement | 60% | ||||
Receivable under funding agreement | $ 54 | $ 54 | |||
Gross loss contingency accrual | 0 | ||||
Net loss contingency accrual | 22 | 22 | |||
Total amount received from settlements with insurance carriers | $ 212 | ||||
Kalamazoo River Site | |||||
Loss Contingencies [Line Items] | |||||
Number of additional companies receiving general notice letters | company | 3 | ||||
Number of additional defendants | defendant | 2 | ||||
Number of total corporation plaintiffs | affiliateCorporation | 3 | ||||
Number of companies tried to the court | company | 4 | ||||
GP Costs incurred in the pasted related to Kalamazoo | $ 50 | ||||
Loss contingency, value of damages sought | 105 | ||||
Loss contingency, value of damages sought | $ 55 | ||||
NCR share of costs related to loss contingency | 40% | ||||
NCR Share of Costs related to Kalamazoo | 40% | ||||
Number of companies assigned to share costs of loss contingency | company | 2 | ||||
Loss contingency accrual | $ 141 | 90 | |||
Kalamazoo River Site | Company One | |||||
Loss Contingencies [Line Items] | |||||
NCR Share of Costs related to Kalamazoo | 15% | ||||
Kalamazoo River Site | Company Two | |||||
Loss Contingencies [Line Items] | |||||
NCR Share of Costs related to Kalamazoo | 5% | ||||
Ebina | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 7 | $ 7 |
LEASING - Lease Balances at Bal
LEASING - Lease Balances at Balance Sheet Date (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating lease assets | $ 236 | $ 272 |
Finance lease assets | 71 | 59 |
Accumulated Amortization of Finance lease assets | (57) | (49) |
Total leased assets | $ 250 | $ 282 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating lease liabilities | $ 44 | $ 52 |
Finance lease liabilities | 8 | 9 |
Operating lease liabilities | 254 | 286 |
Finance lease liabilities | 7 | 3 |
Total lease liabilities | $ 313 | $ 350 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
LEASING - Lease Costs (Details)
LEASING - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 72 | $ 77 | $ 98 |
Amortization of leased assets | 13 | 13 | 14 |
Interest on lease liabilities | 1 | 1 | 1 |
Short-Term lease cost | 0 | 3 | 3 |
Variable lease cost | 29 | 23 | 21 |
Sublease income | (3) | 0 | 0 |
Total lease cost | $ 112 | $ 117 | $ 137 |
LEASING - Supplemental Cash Flo
LEASING - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 76 | $ 82 | $ 102 |
Operating cash flows from finance leases | 1 | 1 | 1 |
Financing cash flows from finance leases | 14 | 13 | 14 |
Operating Leases | 16 | 4 | 107 |
Finance Leases | $ (1) | $ 0 | $ 2 |
LEASING - Present Value of Leas
LEASING - Present Value of Lease Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 61 |
2025 | 46 |
2026 | 39 |
2027 | 39 |
2028 | 38 |
Thereafter | 164 |
Total lease payments | 387 |
Less: Amount representing interest | 89 |
Present value of lease liabilities | 298 |
Finance Leases | |
2024 | 9 |
2025 | 6 |
2026 | 1 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total lease payments | 16 |
Less: Amount representing interest | 1 |
Present value of lease liabilities | $ 15 |
LEASING - Weighted Average Leas
LEASING - Weighted Average Lease Term and Interest Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted Average Lease Term [Abstract] | ||
Operating leases | 8 years 3 months 18 days | 8 years 9 months 18 days |
Finance leases | 2 years 2 months 12 days | 1 year 2 months 12 days |
Weighted Average Interest Rates [Abstract] | ||
Operating leases | 6.14% | 6.01% |
Finance leases | 3.38% | 3.08% |
SERIES A PREFERRED STOCK (Detai
SERIES A PREFERRED STOCK (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||||
Oct. 06, 2020 USD ($) shares | Sep. 18, 2019 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Oct. 16, 2023 | Oct. 12, 2020 USD ($) shares | Dec. 04, 2018 $ / shares | Mar. 17, 2017 $ / shares shares | Dec. 04, 2015 USD ($) $ / shares Rate shares | |
Class of Stock [Line Items] | ||||||||||
Temporary equity, shares issued (in shares) | 300,000 | 300,000 | ||||||||
Preferred stock, convertible, conversion ratio | 57.560 | |||||||||
Deemed dividend on preferred stock redemption | $ | $ 12 | $ 67 | ||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 1,000 | |||||||||
Dividends, paid-in-kind | $ | $ 0 | $ 0 | $ 0 | |||||||
Dividends, cash | $ | $ 15 | $ 15 | $ 15 | |||||||
Redemption, share price threshold | $ / shares | $ 54 | |||||||||
Trading days | 30 days | |||||||||
Consecutive trading days | 45 days | |||||||||
Preferred stock, liquidation preference | 100% | |||||||||
Redemption value discount rate | 10% | |||||||||
Convertible Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Temporary equity, shares issued (in shares) | 820,000 | |||||||||
Aggregate purchase price | $ | $ 820 | |||||||||
Stated value of preferred shares (in dollars per share) | $ / shares | $ 1,000 | |||||||||
Direct issuance expenses | $ | $ 26 | |||||||||
Secondary offering by the preferred shareholders (in shares) | 342,000 | |||||||||
Redeemed shares of preferred stock (in shares) | 67,000 | 512,221 | 65,365 | 90,000 | ||||||
Repurchase price per share of common stock upon conversion (in dollars per share) | $ / shares | $ 48.47 | |||||||||
Blackstone shares converted into common shares (in shares) | 237,673 | |||||||||
Cash paid for the redemption of preferred stock | $ | $ 72 | $ 302 | $ 72 | |||||||
Conversion of convertible securities (in shares) | 9,200,000 | |||||||||
Conversion price per preferred share (in dollars per share) | $ / shares | $ 30 | |||||||||
Dividend rate for preferred shares | Rate | 5.50% | |||||||||
Dividend rate for preferred shares; accrued but unpaid dividend | 8% | |||||||||
Conversion rate per preferred share | 33.333 | |||||||||
Financial instruments subject to redemption, settlement terms, maximum number of shares | 15,900,000 | 9,200,000 |
EARNINGS PER SHARE - Basic Earn
EARNINGS PER SHARE - Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||||||||||||
Income (loss) from continuing operations | $ (222) | $ (41) | $ (65) | $ (106) | $ (328) | $ (586) | $ (203) | $ (337) | |||||
Series A convertible preferred stock dividends | (4) | (4) | (4) | (8) | (12) | (16) | (16) | (16) | |||||
Net income (loss) from continuing operations attributable to NCR Voyix common stockholders | (602) | (219) | (353) | ||||||||||
Income (loss) from discontinued operations, net of tax | 93 | 58 | 72 | 130 | 223 | 163 | 263 | 434 | |||||
Net income (loss) attributable to NCR Voyix common stockholders | $ (322) | $ (133) | $ 13 | $ 3 | $ (20) | $ 65 | $ 37 | $ (38) | $ 16 | $ (117) | $ (439) | $ 44 | $ 81 |
Denominator: | |||||||||||||
Weighted average outstanding shares of common stock, basic (in shares) | 140.6 | 136.7 | 131.2 | ||||||||||
Weighted average diluted shares (in shares) | 140.6 | 136.7 | 131.2 | ||||||||||
Basic and diluted earnings (loss) per share: | |||||||||||||
Continuing operations. basic (in dollars per share) | $ (1.85) | $ (1.60) | $ (0.32) | $ (0.49) | $ (0.12) | $ (0.31) | $ (0.46) | $ (0.72) | $ (0.81) | $ (2.41) | $ (4.28) | $ (1.60) | $ (2.69) |
Diluted (in dollars per share) | (1.85) | (1.60) | (0.32) | (0.49) | (0.12) | (0.31) | (0.46) | (0.72) | (0.81) | (2.41) | (4.28) | (1.60) | (2.69) |
From discontinued operations (in dollars per share) | 1.16 | 1.92 | 3.31 | ||||||||||
From discontinued operations (in dollars per share) | (0.43) | 0.66 | 0.41 | 0.51 | (0.03) | 0.78 | 0.73 | 0.44 | 1.16 | 1.92 | 3.31 | ||
Diluted (in dollars per share) | (2.28) | (0.94) | 0.09 | 0.02 | (0.15) | 0.47 | 0.27 | (0.28) | 0.11 | (0.83) | (3.12) | 0.32 | 0.62 |
Net income attributable to common shareholders, basic (in dollars per share) | $ (2.28) | $ (0.94) | $ 0.09 | $ 0.02 | $ (0.15) | $ 0.47 | $ 0.27 | $ (0.28) | $ 0.11 | $ (0.83) | $ (3.12) | $ 0.32 | $ 0.62 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 16, 2023 | |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Spin-Off of Atleos | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Goodwill | $ 2,476 | $ 2,474 | ||
Series A Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 10.6 | 9.2 | 9.2 | |
Restricted Stock Units (RSUs) and Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 12.1 | 11 | 12.5 |
DERIVATIVES AND HEDGING INSTR_3
DERIVATIVES AND HEDGING INSTRUMENTS - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) currency | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | ||||
Number of functional currencies | currency | 40 | |||
Maximum period for cash flow hedging activity | 15 months | |||
Total stockholders' equity | $ 25 | $ 1,479 | ||
Derivative, notional amount | $ 2,200 | |||
Proceeds from interest rate cap | $ 55 | $ 64 | ||
Unrealized gain on derivatives | 18 | |||
AOCI Attributable to interest rate derivatives | ||||
Derivative [Line Items] | ||||
Total stockholders' equity | 0 | $ 109 | ||
Minimum | ||||
Derivative [Line Items] | ||||
Average variable interest rate | 2.078% | |||
Maximum | ||||
Derivative [Line Items] | ||||
Average variable interest rate | 2.443% | |||
Foreign exchange contracts | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||
Derivative [Line Items] | ||||
Total stockholders' equity | $ 0 | |||
Terminated Interest Rate Cap | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 2,400 | $ 2,000 |
DERIVATIVES AND HEDGING INSTR_4
DERIVATIVES AND HEDGING INSTRUMENTS - Derivative Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 5 | $ 1 |
Derivative liabilities, fair value | (4) | (2) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | 402 | 376 |
Derivative liability, notional amount | 207 | 373 |
Derivative assets, fair value | 5 | 1 |
Derivative liabilities, fair value | (4) | (2) |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 5 | 1 |
Derivative liabilities, fair value | $ (4) | $ (2) |
DERIVATIVES AND HEDGING INSTR_5
DERIVATIVES AND HEDGING INSTRUMENTS - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Loss (gain) on derivatives arising during the period | $ 31 | $ 18 | $ (1) | |||||
Interest expense | $ 83 | $ 91 | $ 83 | $ 174 | $ 257 | 294 | 285 | 238 |
Service | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Cost of products | 438 | 418 | 419 | 837 | 1,274 | 1,758 | 1,664 | 1,735 |
Product | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Cost of products | $ 269 | $ 273 | $ 269 | $ 542 | $ 811 | 1,110 | 1,151 | 1,032 |
Interest Rate Contract | Cost of Sales | Cash Flow Hedging | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gain (loss) recognized | 0 | 116 | 5 | |||||
Loss (gain) on derivatives arising during the period | 0 | (8) | 1 | |||||
Interest Rate Contract | Cost of Products | Cash Flow Hedging | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Loss (gain) on derivatives arising during the period | 0 | 0 | 0 | |||||
Interest Rate Contract | Interest Expense | Cash Flow Hedging | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gain (loss) recognized | 0 | 36 | 4 | |||||
Loss (gain) on derivatives arising during the period | $ (31) | $ (10) | $ 0 |
DERIVATIVES AND HEDGING INSTR_6
DERIVATIVES AND HEDGING INSTRUMENTS - Gain (Loss) on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other (Expense) Income, Net | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in the Consolidated Statements of Operations | $ (8) | $ (15) | $ (12) |
FAIR VALUE OF ASSETS AND LIAB_3
FAIR VALUE OF ASSETS AND LIABILITIES (Details) - Fair Value, Recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits held in money market mutual funds | $ 0 | $ 16 |
Foreign exchange contracts | 0 | 0 |
Total | 0 | 16 |
Foreign exchange contracts | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits held in money market mutual funds | 0 | 0 |
Foreign exchange contracts | 5 | 1 |
Total | 5 | 1 |
Foreign exchange contracts | 4 | 2 |
Total | 4 | 2 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits held in money market mutual funds | 0 | 0 |
Foreign exchange contracts | 0 | 0 |
Total | 0 | 0 |
Foreign exchange contracts | 0 | 0 |
Total | 0 | 0 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits held in money market mutual funds | 0 | 16 |
Foreign exchange contracts | 5 | 1 |
Total | 5 | 17 |
Foreign exchange contracts | 4 | 2 |
Total | $ 4 | $ 2 |
FAIR VALUE OF ASSETS AND LIAB_4
FAIR VALUE OF ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Transformation and restructuring costs(1) | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | $ 1,479 | ||
Other comprehensive income (loss) | 53 | $ (12) | $ (20) |
Equity impact as a result of separation | (1,237) | ||
Balance at end of period | 25 | 1,479 | |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (404) | (275) | (245) |
Other comprehensive (loss) income before reclassifications | 85 | (129) | (30) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Other comprehensive income (loss) | 85 | (129) | (30) |
Equity impact as a result of separation | (105) | ||
Balance at end of period | (424) | (404) | (275) |
Changes in Employee Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (5) | (24) | (26) |
Other comprehensive (loss) income before reclassifications | (7) | 21 | 4 |
Amounts reclassified from AOCI | (1) | (2) | (2) |
Other comprehensive income (loss) | (8) | 19 | 2 |
Equity impact as a result of separation | 8 | ||
Balance at end of period | (5) | (5) | (24) |
Changes in Fair Value of Effective Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | 109 | 8 | 0 |
Other comprehensive (loss) income before reclassifications | 0 | 117 | 7 |
Amounts reclassified from AOCI | (24) | (16) | 1 |
Other comprehensive income (loss) | (24) | 101 | 8 |
Equity impact as a result of separation | (85) | ||
Balance at end of period | 0 | 109 | 8 |
Accumulated Other Comprehensive (Loss) Income | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (300) | (291) | (271) |
Other comprehensive (loss) income before reclassifications | 78 | 9 | (19) |
Amounts reclassified from AOCI | (25) | (18) | (1) |
Other comprehensive income (loss) | 53 | (9) | (20) |
Equity impact as a result of separation | (182) | ||
Balance at end of period | $ (429) | $ (300) | $ (291) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Selling, general and administrative expenses | $ 162 | $ 167 | $ 156 | $ 323 | $ 486 | $ 740 | $ 695 | $ 704 | |||||
Research and development expenses | 38 | 42 | 49 | 91 | 129 | 185 | 147 | 195 | |||||
Interest expense | 83 | 91 | 83 | 174 | 257 | 294 | 285 | 238 | |||||
Income (loss) from continuing operations before income taxes | 37 | 33 | 58 | 91 | 128 | 382 | 131 | 267 | |||||
Income tax expense (benefit) | 185 | 8 | 7 | 15 | 200 | 204 | 72 | 70 | |||||
Income (loss) from continuing operations | $ 258 | 222 | 41 | 65 | $ 12 | $ 38 | $ 57 | $ 96 | 106 | 328 | 586 | 203 | 337 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Selling, general and administrative expenses | 0 | 0 | (1) | ||||||||||
Research and development expenses | 0 | 0 | 1 | ||||||||||
Interest expense | (31) | (10) | |||||||||||
Income (loss) from continuing operations before income taxes | (33) | (20) | (1) | ||||||||||
Income tax expense (benefit) | 8 | 2 | 0 | ||||||||||
Income (loss) from continuing operations | (25) | (18) | (1) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Actuarial Losses Recognized | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Selling, general and administrative expenses | 0 | 1 | (1) | ||||||||||
Research and development expenses | 0 | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | |||||||||||
Income (loss) from continuing operations before income taxes | (1) | 0 | (1) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Prior Service Benefit | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Selling, general and administrative expenses | 0 | (1) | 0 | ||||||||||
Research and development expenses | 0 | 0 | 1 | ||||||||||
Interest expense | 0 | 0 | |||||||||||
Income (loss) from continuing operations before income taxes | (1) | (2) | (1) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Changes in Fair Value of Effective Cash Flow Hedges | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||||
Research and development expenses | 0 | 0 | 0 | ||||||||||
Interest expense | (31) | (10) | |||||||||||
Income (loss) from continuing operations before income taxes | (31) | (18) | 1 | ||||||||||
Product | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | 269 | 273 | 269 | 542 | 811 | 1,110 | 1,151 | 1,032 | |||||
Product | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | 0 | 0 | 0 | ||||||||||
Product | Reclassification out of Accumulated Other Comprehensive Income | Actuarial Losses Recognized | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | 0 | 0 | 0 | ||||||||||
Product | Reclassification out of Accumulated Other Comprehensive Income | Amortization of Prior Service Benefit | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | 0 | 0 | 0 | ||||||||||
Product | Reclassification out of Accumulated Other Comprehensive Income | Changes in Fair Value of Effective Cash Flow Hedges | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | 0 | 0 | 0 | ||||||||||
Service | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | $ 438 | $ 418 | $ 419 | $ 837 | $ 1,274 | 1,758 | 1,664 | 1,735 | |||||
Service | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | (2) | (10) | (1) | ||||||||||
Service | Reclassification out of Accumulated Other Comprehensive Income | Actuarial Losses Recognized | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | (1) | (1) | 0 | ||||||||||
Service | Reclassification out of Accumulated Other Comprehensive Income | Amortization of Prior Service Benefit | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | (1) | (1) | (2) | ||||||||||
Service | Reclassification out of Accumulated Other Comprehensive Income | Changes in Fair Value of Effective Cash Flow Hedges | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of products | $ 0 | $ (8) | $ 1 |
SUPPLEMENTAL FINANCIAL INFORM_3
SUPPLEMENTAL FINANCIAL INFORMATION - Other (Expense) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Financial Information [Abstract] | ||||||||
Interest income | $ 13 | $ 13 | $ 8 | |||||
Foreign currency fluctuations and foreign exchange contracts | (28) | (17) | (2) | |||||
Bank-related fees | (28) | 40 | 9 | |||||
Employee benefit plans | (8) | (9) | (27) | |||||
Other, net | (28) | (9) | (1) | |||||
Total other income (expense), net | $ (25) | $ (9) | $ (4) | $ (13) | $ (38) | (79) | $ 18 | $ (13) |
Remeasurement of pension plan assets and liabilities | $ 7 |
SUPPLEMENTAL FINANCIAL INFORM_4
SUPPLEMENTAL FINANCIAL INFORMATION - Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventories | ||
Work in process and raw materials | $ 14 | $ 48 |
Finished goods | 112 | 166 |
Service parts | 128 | 143 |
Total inventories | $ 254 | $ 357 |
SUPPLEMENTAL FINANCIAL INFORM_5
SUPPLEMENTAL FINANCIAL INFORMATION - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Finance lease assets | $ 71 | $ 59 |
Property, plant and equipment, gross | 756 | 776 |
Less: accumulated depreciation | (544) | (549) |
Property, plant and equipment, net | 212 | 227 |
Land and improvements | ||
Class of Stock [Line Items] | ||
Property, plant and equipment | 1 | 2 |
Buildings and improvements | ||
Class of Stock [Line Items] | ||
Property, plant and equipment | 208 | 145 |
Machinery and other equipment | ||
Class of Stock [Line Items] | ||
Property, plant and equipment | $ 476 | $ 570 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Revenue | $ 963 | $ 978 | $ 967 | $ 922 | $ 966 | $ 960 | $ 950 | $ 917 | $ 1,889 | $ 2,867 | $ 3,830 | $ 3,793 | $ 3,692 |
Gross margin | 181 | 271 | 276 | 234 | 263 | 281 | 224 | 210 | |||||
Income (loss) from operations | (130) | 71 | 67 | 29 | 58 | 55 | 24 | (1) | 96 | 167 | 37 | 136 | 26 |
Income from continuing operations | (258) | (222) | (41) | (65) | (12) | (38) | (57) | (96) | (106) | (328) | (586) | (203) | (337) |
Income (loss) from discontinued operations, net of tax | (61) | 94 | 57 | 73 | (6) | 107 | 100 | 61 | 130 | 224 | 163 | 262 | 435 |
Net income (loss) | (319) | (128) | 16 | 8 | (18) | 69 | 43 | (35) | 24 | (104) | (423) | 59 | 98 |
Total reclassifications, net of tax | $ (322) | $ (133) | $ 13 | $ 3 | $ (20) | $ 65 | $ 37 | $ (38) | $ 16 | $ (117) | $ (439) | $ 44 | $ 81 |
Basic and diluted earnings (loss) per share: | |||||||||||||
Continuing operations. basic (in dollars per share) | $ (1.85) | $ (1.60) | $ (0.32) | $ (0.49) | $ (0.12) | $ (0.31) | $ (0.46) | $ (0.72) | $ (0.81) | $ (2.41) | $ (4.28) | $ (1.60) | $ (2.69) |
Discontinued operations, basic (in dollars per share) | (0.43) | 0.66 | 0.41 | 0.51 | (0.03) | 0.78 | 0.73 | 0.44 | 0.92 | 1.58 | |||
Net income attributable to common shareholders, basic (in dollars per share) | (2.28) | (0.94) | 0.09 | 0.02 | (0.15) | 0.47 | 0.27 | (0.28) | 0.11 | (0.83) | (3.12) | 0.32 | 0.62 |
Diluted earnings (loss) per share: | |||||||||||||
From continuing operations (in dollars per share) | (1.85) | (1.60) | (0.32) | (0.49) | (0.12) | (0.31) | (0.46) | (0.72) | (0.81) | (2.41) | (4.28) | (1.60) | (2.69) |
From discontinued operations (in dollars per share) | (0.43) | 0.66 | 0.41 | 0.51 | (0.03) | 0.78 | 0.73 | 0.44 | 1.16 | 1.92 | 3.31 | ||
Diluted (in dollars per share) | $ (2.28) | $ (0.94) | $ 0.09 | $ 0.02 | $ (0.15) | $ 0.47 | $ 0.27 | $ (0.28) | $ 0.11 | $ (0.83) | $ (3.12) | $ 0.32 | $ 0.62 |
REVISED 2023 QUARTERLY FINANC_3
REVISED 2023 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Condensed Financial Information Disclosure [Line Items] | |||||
Fraudulent disbursements, amount recorded on balance sheet | $ 11 | $ 2 | |||
Accounts receivable, net of allowances of $32 and $21 as of December 31, 2023 and 2022, respectively | 940 | 550 | $ 481 | $ 981 | $ 1,007 |
Current assets | 3,082 | 3,082 | 1,206 | 2,949 | 3,068 |
Assets | 13,215 | 11,507 | 4,990 | 11,275 | 11,440 |
Deferred income taxes | 433 | 329 | 239 | 590 | |
Liabilities and equity | 13,215 | 11,507 | 4,990 | 11,275 | 11,440 |
Prepaid and other current assets | 472 | 247 | 188 | ||
Liabilities | 11,577 | 9,753 | 4,689 | ||
Other current liabilities | 661 | 349 | 428 | ||
Current liabilities | 2,681 | $ 2,713 | 1,333 | ||
As reported | |||||
Condensed Financial Information Disclosure [Line Items] | |||||
Accounts receivable, net of allowances of $32 and $21 as of December 31, 2023 and 2022, respectively | 950 | 986 | 1,009 | ||
Current assets | 3,093 | 2,954 | 3,070 | ||
Assets | 13,223 | 11,279 | 11,442 | ||
Deferred income taxes | 430 | 589 | |||
Liabilities and equity | 13,223 | $ 11,279 | $ 11,442 | ||
Prepaid and other current assets | 473 | ||||
Liabilities | 11,576 | ||||
Other current liabilities | 660 | ||||
Current liabilities | $ 2,680 | ||||
Revision of Prior Period, Adjustment | |||||
Condensed Financial Information Disclosure [Line Items] | |||||
Accounts receivable, net of allowances of $32 and $21 as of December 31, 2023 and 2022, respectively | $ (2) |
REVISED 2023 QUARTERLY FINANC_4
REVISED 2023 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) - Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | $ 963 | $ 978 | $ 967 | $ 922 | $ 966 | $ 960 | $ 950 | $ 917 | $ 1,889 | $ 2,867 | $ 3,830 | $ 3,793 | $ 3,692 |
Selling, general and administrative expenses | 162 | 167 | 156 | 323 | 486 | 740 | 695 | 704 | |||||
Research and development expenses | 38 | 42 | 49 | 91 | 129 | 185 | 147 | 195 | |||||
Total operating expenses | 907 | 900 | 893 | 1,793 | 2,700 | 3,793 | 3,657 | 3,666 | |||||
Income (loss) from operations | (130) | 71 | 67 | 29 | 58 | 55 | 24 | (1) | 96 | 167 | 37 | 136 | 26 |
Loss on extinguishment of debt | 0 | 0 | 0 | 0 | 0 | (46) | 0 | (42) | |||||
Interest expense | (83) | (91) | (83) | (174) | (257) | (294) | (285) | (238) | |||||
Other income (expense), net | (25) | (9) | (4) | (13) | (38) | (79) | 18 | (13) | |||||
Income (loss) from continuing operations before income taxes | (37) | (33) | (58) | (91) | (128) | (382) | (131) | (267) | |||||
Income tax expense (benefit) | 185 | 8 | 7 | 15 | 200 | 204 | 72 | 70 | |||||
Income from continuing operations | (258) | (222) | (41) | (65) | (12) | (38) | (57) | (96) | (106) | (328) | (586) | (203) | (337) |
Income (loss) from discontinued operations, net of tax | (61) | 94 | 57 | 73 | (6) | 107 | 100 | 61 | 130 | 224 | 163 | 262 | 435 |
Net income (loss) | (319) | (128) | 16 | 8 | (18) | 69 | 43 | (35) | 24 | (104) | (423) | 59 | 98 |
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (1) | 1 | |||||
Net income (loss) attributable to noncontrolling interests | 1 | (1) | 1 | 0 | 1 | 0 | (1) | 1 | |||||
Net income (loss) | (129) | 17 | 7 | 24 | (105) | (423) | 60 | 97 | |||||
Net income (loss) from continuing operations attributable to NCR Voyix (GAAP) | (222) | (41) | (65) | (106) | (328) | (586) | (203) | (337) | |||||
Series A convertible preferred stock dividends | (4) | (4) | (4) | (8) | (12) | (16) | (16) | (16) | |||||
income (loss) from continuing operations attributable to common stockholders | (226) | (45) | (69) | (114) | (340) | (602) | (219) | (353) | |||||
Income (loss) from discontinued operations, net of tax | 93 | 58 | 72 | 130 | 223 | 163 | 263 | 434 | |||||
Total reclassifications, net of tax | $ (322) | $ (133) | $ 13 | $ 3 | $ (20) | $ 65 | $ 37 | $ (38) | $ 16 | $ (117) | $ (439) | $ 44 | $ 81 |
Continuing operations. basic (in dollars per share) | $ (1.85) | $ (1.60) | $ (0.32) | $ (0.49) | $ (0.12) | $ (0.31) | $ (0.46) | $ (0.72) | $ (0.81) | $ (2.41) | $ (4.28) | $ (1.60) | $ (2.69) |
Discontinued operations, basic (in dollars per share) | (0.43) | 0.66 | 0.41 | 0.51 | (0.03) | 0.78 | 0.73 | 0.44 | 0.92 | 1.58 | |||
Net income attributable to common shareholders, basic (in dollars per share) | (2.28) | (0.94) | 0.09 | 0.02 | (0.15) | 0.47 | 0.27 | (0.28) | 0.11 | (0.83) | (3.12) | 0.32 | 0.62 |
Diluted (in dollars per share) | (1.85) | (1.60) | (0.32) | (0.49) | (0.12) | (0.31) | (0.46) | (0.72) | (0.81) | (2.41) | (4.28) | (1.60) | (2.69) |
Discontinued operations, diluted (in dollars per share) | 0.66 | 0.41 | 0.51 | 0.92 | 1.58 | ||||||||
Diluted (in dollars per share) | $ (2.28) | $ (0.94) | $ 0.09 | $ 0.02 | $ (0.15) | $ 0.47 | $ 0.27 | $ (0.28) | $ 0.11 | $ (0.83) | $ (3.12) | $ 0.32 | $ 0.62 |
As reported | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | $ 2,017 | $ 1,986 | $ 1,891 | $ 3,877 | $ 5,894 | ||||||||
Selling, general and administrative expenses | 331 | 333 | 292 | 625 | 956 | ||||||||
Research and development expenses | 54 | 57 | 64 | 121 | 175 | ||||||||
Total operating expenses | 1,775 | 1,838 | 1,781 | 3,619 | 5,394 | ||||||||
Income (loss) from operations | 242 | 148 | 110 | 258 | 500 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | 0 | 0 | ||||||||
Interest expense | (85) | (91) | (83) | (174) | (259) | ||||||||
Other income (expense), net | (44) | (8) | (3) | (11) | (55) | ||||||||
Income (loss) from continuing operations before income taxes | 113 | 49 | 24 | 73 | 186 | ||||||||
Income tax expense (benefit) | 236 | 30 | 14 | 44 | 280 | ||||||||
Income from continuing operations | (123) | 19 | 10 | 29 | (94) | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | (1) | 0 | (1) | (1) | ||||||||
Net income (loss) | (123) | 18 | 10 | 28 | (95) | ||||||||
Net income (loss) attributable to noncontrolling interests | 1 | (1) | 1 | 0 | 1 | ||||||||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | ||||||||
Net income (loss) | (124) | 19 | 9 | 28 | (96) | ||||||||
Net income (loss) from continuing operations attributable to NCR Voyix (GAAP) | (124) | 20 | 9 | 29 | (95) | ||||||||
Series A convertible preferred stock dividends | (4) | (4) | (4) | (8) | (12) | ||||||||
income (loss) from continuing operations attributable to common stockholders | (128) | 16 | 5 | 21 | (107) | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | (1) | 0 | (1) | (1) | ||||||||
Total reclassifications, net of tax | $ (128) | $ 15 | $ 5 | $ 20 | $ (108) | ||||||||
Continuing operations. basic (in dollars per share) | $ (0.91) | $ 0.11 | $ 0.04 | $ 0.15 | $ (0.76) | ||||||||
Discontinued operations, basic (in dollars per share) | 0 | (0.01) | 0 | (0.01) | (0.01) | ||||||||
Net income attributable to common shareholders, basic (in dollars per share) | (0.91) | 0.11 | 0.04 | 0.14 | (0.77) | ||||||||
Diluted (in dollars per share) | (0.91) | 0.11 | 0.04 | 0.15 | (0.76) | ||||||||
Discontinued operations, diluted (in dollars per share) | 0 | (0.01) | 0 | (0.01) | (0.01) | ||||||||
Diluted (in dollars per share) | $ (0.91) | $ 0.11 | $ 0.04 | $ 0.14 | $ (0.77) | ||||||||
Revision of Prior Period, Adjustment | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Selling, general and administrative expenses | 6 | 3 | 2 | 5 | 11 | ||||||||
Research and development expenses | 0 | 0 | 0 | 0 | 0 | ||||||||
Total operating expenses | 7 | 3 | 2 | 5 | 12 | ||||||||
Income (loss) from operations | (7) | (3) | (2) | (5) | (12) | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | 0 | 0 | ||||||||
Other income (expense), net | 0 | 0 | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations before income taxes | (7) | (3) | (2) | (5) | (12) | ||||||||
Income tax expense (benefit) | (2) | (1) | 0 | (1) | (3) | ||||||||
Income from continuing operations | (5) | (2) | (2) | (4) | (9) | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | ||||||||
Net income (loss) | (5) | (2) | (2) | (4) | (9) | ||||||||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | ||||||||
Net income (loss) | (5) | (2) | (2) | (4) | (9) | ||||||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Spin-Off of Atleos | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 1,039 | 1,019 | 969 | 1,988 | 3,027 | ||||||||
Selling, general and administrative expenses | 175 | 169 | 138 | 307 | 481 | ||||||||
Research and development expenses | 16 | 15 | 15 | 30 | 46 | ||||||||
Total operating expenses | 875 | 941 | 890 | 1,831 | 2,706 | ||||||||
Income (loss) from operations | 164 | 78 | 79 | 157 | 321 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | 0 | 0 | ||||||||
Interest expense | (2) | 0 | 0 | 0 | (2) | ||||||||
Other income (expense), net | (19) | 1 | 1 | 2 | (17) | ||||||||
Income (loss) from continuing operations before income taxes | 143 | 79 | 80 | 159 | 302 | ||||||||
Income tax expense (benefit) | 49 | 21 | 7 | 28 | 77 | ||||||||
Income from continuing operations | 94 | 58 | 73 | 131 | 225 | ||||||||
Income (loss) from discontinued operations, net of tax | (94) | (58) | (73) | (131) | (225) | $ 213 | $ 266 | $ 435 | |||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to noncontrolling interests | 1 | (1) | 1 | 0 | 1 | ||||||||
Net income (loss) attributable to noncontrolling interests | (1) | 1 | (1) | 0 | (1) | 0 | (1) | 1 | |||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | ||||||||
Income (loss) from discontinued operations, net of tax | 213 | 267 | 434 | ||||||||||
Product | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 318 | 317 | 292 | 609 | 927 | 1,239 | 1,274 | 1,176 | |||||
Cost of products | 269 | 273 | 269 | 542 | 811 | 1,110 | 1,151 | 1,032 | |||||
Product | As reported | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 560 | 576 | 521 | 1,097 | 1,657 | ||||||||
Cost of products | 465 | 478 | 456 | 934 | 1,399 | ||||||||
Product | Revision of Prior Period, Adjustment | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 0 | 0 | 0 | 0 | 0 | ||||||||
Cost of products | 0 | 0 | 0 | 0 | 0 | ||||||||
Product | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Spin-Off of Atleos | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 242 | 259 | 229 | 488 | 730 | ||||||||
Cost of products | 196 | 205 | 187 | 392 | 588 | ||||||||
Service | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 660 | 650 | 630 | 1,280 | 1,940 | 2,591 | 2,519 | 2,516 | |||||
Cost of products | 438 | 418 | 419 | 837 | 1,274 | $ 1,758 | $ 1,664 | $ 1,735 | |||||
Service | As reported | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 1,457 | 1,410 | 1,370 | 2,780 | 4,237 | ||||||||
Cost of products | 925 | 970 | 969 | 1,939 | 2,864 | ||||||||
Service | Revision of Prior Period, Adjustment | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 0 | 0 | 0 | 0 | 0 | ||||||||
Cost of products | 1 | 0 | 0 | 0 | 1 | ||||||||
Service | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Spin-Off of Atleos | |||||||||||||
Condensed Financial Information Disclosure [Line Items] | |||||||||||||
Revenue | 797 | 760 | 740 | 1,500 | 2,297 | ||||||||
Cost of products | $ 488 | $ 552 | $ 550 | $ 1,102 | $ 1,591 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Allowance, Credit Loss | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 21 | $ 19 | $ 40 |
Charged to Costs & Expenses | 26 | 15 | 8 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 15 | 13 | 29 |
Balance at End of Period | 32 | 21 | 19 |
Deferred Tax Asset Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 274 | 225 | 209 |
Charged to Costs & Expenses | 25 | 81 | 27 |
Charged to Other Accounts | 5 | 14 | 13 |
Deductions | 93 | 46 | 24 |
Balance at End of Period | $ 211 | $ 274 | $ 225 |