View Filing Data

In millions

Three months ended March 31, 2020

Remainder of 2020 (estimated)

Amortization expense

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Components of Earnings Per Share

The components of basic earnings per share are as follows:



In millions, except per share amounts	Three months ended March 31
In millions, except per share amounts	2020			2019
Numerator:
Income from continuing operations	$	23		$	37
Dividends on Series A Convertible Preferred Stock	(6		)	(13		)
Income from continuing operations attributable to NCR common stockholders	17			24
Loss from discontinued operations, net of tax	—			—
Net income attributable to NCR common stockholders	$	17		$	24

Denominator:
Basic weighted average number of shares outstanding	128.0			119.3

Basic earnings per share:
From continuing operations	$	0.13		$	0.20
From discontinued operations	—			—
Total basic earnings per share	$	0.13		$	0.20

The components of diluted earnings per share are as follows:



In millions, except per share amounts	Three months ended March 31
In millions, except per share amounts	2020			2019
Numerator:
Income from continuing operations	$	23		$	37
Dividends on Series A Convertible Preferred Stock	(6		)	(13		)
Income from continuing operations attributable to NCR common stockholders	17			24
Loss from discontinued operations, net of tax	—			—
Net income attributable to NCR common stockholders	$	17		$	24

Denominator:
Basic weighted average number of shares outstanding	128.0			119.3
Dilutive effect of restricted stock units and stock options	2.5			2.9
Weighted average diluted shares	130.5			122.2

Diluted earnings per share:
From continuing operations	$	0.13		$	0.20
From discontinued operations	—			—
Total diluted earnings per share	$	0.13		$	0.20

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total revenue	$ 1,503,000,000	$ 1,536,000,000
Selling, general and administrative expenses	255,000,000	252,000,000
Research and development expenses	65,000,000	59,000,000
Total operating expenses	1,426,000,000	1,436,000,000
Income (loss) from operations	77,000,000	100,000,000
Interest expense	(50,000,000)	(45,000,000)
Other expense, net	(2,000,000)	(8,000,000)
Income (loss) from continuing operations before income taxes	25,000,000	47,000,000
Income tax expense (benefit)	1,000,000	9,000,000
Income (loss) from continuing operations	24,000,000	38,000,000
Loss from discontinued operations, net of tax	0	0
Net income (loss)	24,000,000	38,000,000
Net income (loss) attributable to noncontrolling interests	1,000,000	1,000,000
Net income (loss) attributable to NCR	23,000,000	37,000,000
Amounts attributable to NCR common stockholders:
Income (loss) from continuing operations	23,000,000	37,000,000
Dividends on convertible preferred stock	(6,000,000)	(13,000,000)
Income (loss) from continuing operations attributable to NCR common stockholders	17,000,000	24,000,000
Loss from discontinued operations, net of tax	0	0
Net income (loss) attributable to NCR common stockholders	$ 17,000,000	$ 24,000,000
Income (loss) per common share from continuing operations
Basic (in dollars per share)	$ 0.13	$ 0.20
Diluted (in dollars per share)	0.13	0.20
Net income (loss) per common share
Basic (in dollars per share)	0.13	0.20
Diluted (in dollars per share)	$ 0.13	$ 0.20
Weighted average common shares outstanding
Basic (in shares)	128.0	119.3
Diluted (in shares)	130.5	122.2
Product
Total revenue	$ 474,000,000	$ 539,000,000
Cost of revenue	391,000,000	453,000,000
Services
Total revenue	1,029,000,000	997,000,000
Cost of revenue	$ 715,000,000	$ 672,000,000

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Balance Sheet Parenthetical [Abstract]
Series A convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Series A convertible preferred stock, authorized (in shares)	3,000,000	3,000,000
Series A preferred shares, redemption amount	$ 399	$ 399
Series A preferred shares, liquidation preference	$ 399	$ 399
Series A convertible preferred stock, issued (in shares)	400,000	400,000
Series A convertible preferred stock, outstanding (in shares)	400,000	400,000
Stockholders' Equity:
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 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 issued (in shares)	127,300,000	127,700,000
Common Stock shares outstanding (in shares)	127,300,000	127,700,000

Debt Obligations - Trade Receivables Securitization Facility (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Trade receivables securitization facility, maximum borrowing base	$ 300
Short-term borrowings	304	$ 282
Trade receivables securitization facility, collateral at period end	$ 548	603
Federal Funds Rate \| Secured Debt
Debt Instrument [Line Items]
Debt basis spread on variable rate	0.50%
Trade Receivables Securitization Facility
Debt Instrument [Line Items]
Short-term borrowings	$ 293	$ 270

Derivatives and Hedging Instruments - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) currency
Derivative [Line Items]
Number of functional currencies \| currency	50
Maximum period for cash flow hedging activity	15 months
Foreign exchange contracts
Derivative [Line Items]
Gain in AOCI related to foreign exchange derivative transactions, net of tax \| $	$ 2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Total Stockholders Equity	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Non-Redeemable Noncontrolling Interests in Subsidiaries	Parent Company [Member]
Balance at beginning of period (in shares) at Dec. 31, 2018			119.0
Balance at beginning of period at Dec. 31, 2018		$ 399	$ 1	$ 34	$ 606	$ (246)	$ 4
Comprehensive income:
Net income		38			37		1
Other comprehensive income	$ 16	16				16
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest		54			37	16	1
Employee stock purchase and stock compensation plans (in shares)			1.0
Employee stock purchase and stock compensation plans		14		14
Series A convertible preferred stock dividends		(13)			(13)
Balance at end of period (in shares) at Mar. 31, 2019			120.0
Balance at end of period at Mar. 31, 2019		454	$ 1	48	630	(230)	5
Balance at beginning of period (in shares) at Dec. 31, 2019	127.7		127.0
Balance at beginning of period at Dec. 31, 2019	$ 1,107	1,107	$ 1	312	1,060	(269)	3	$ 1,104
Comprehensive income:
Net income		24			23		1
Other comprehensive income	$ (61)	(61)				(60)	(1)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest		(37)			23	(60)	0
Employee stock purchase and stock compensation plans (in shares)			2.0
Employee stock purchase and stock compensation plans		4		4
Series A convertible preferred stock dividends		(6)			(6)
Repurchase of Company common stock (in shares)			(2.0)
Repurchase of Company common stock		(41)		(41)
Balance at end of period (in shares) at Mar. 31, 2020	127.3		127.0
Balance at end of period at Mar. 31, 2020	$ 1,027	$ 1,027	$ 1	$ 275	$ 1,077	$ (329)	$ 3	$ 1,024

Leasing - Present Value of Lease Liabilities (Details) $ in Millions	Mar. 31, 2020 USD ($)
Operating Leases
Remainder of 2020	$ 88
2021	86
2022	64
2023	44
2024	38
Thereafter	272
Total lease payments	592
Less: Amount representing interest	(158)
Present value of lease liabilities	434
Finance Leases
Remainder of 2020	10
2021	14
2022	13
2023	6
2024	0
Thereafter	0
Total lease payments	43
Less: Amount representing interest	(2)
Present value of lease liabilities	$ 41

Accumulated Other Comprehensive Income (Loss) (AOCI) - Changes in AOCI by Component (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of December 31, 2019	$ (269)
Other comprehensive income (loss) before reclassifications	(58)
Amounts reclassified from AOCI	(2)
Net current period other comprehensive (loss) income	(60)
Balance as of March 31, 2020	(329)
Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of December 31, 2019	(260)
Other comprehensive income (loss) before reclassifications	(60)
Amounts reclassified from AOCI	0
Net current period other comprehensive (loss) income	(60)
Balance as of March 31, 2020	(320)
Changes in Employee Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of December 31, 2019	(10)
Other comprehensive income (loss) before reclassifications	0
Amounts reclassified from AOCI	(1)
Net current period other comprehensive (loss) income	(1)
Balance as of March 31, 2020	(11)
Changes in Fair Value of Effective Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of December 31, 2019	1
Other comprehensive income (loss) before reclassifications	2
Amounts reclassified from AOCI	(1)
Net current period other comprehensive (loss) income	1
Balance as of March 31, 2020	$ 2

Debt Obligations - Short-term Borrowings and Long-term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Short-term borrowings	$ 304	$ 282
Long-term debt	4,081	3,277
Unamortized Debt Issuance Expense	(31)	(32)
Term loan facility
Debt Instrument [Line Items]
Long-term debt	$ 739	$ 740
Weighted-average interest rate on long-term debt	4.30%	4.30%
Revolving credit facility
Debt Instrument [Line Items]
Long-term debt	$ 1,070	$ 265
Weighted-average interest rate on long-term debt	3.77%	3.76%
5.00% Senior Notes due 2022
Debt Instrument [Line Items]
Long-term debt	$ 600	$ 600
Debt stated interest rate	5.00%	5.00%
6.375% Senior Notes due 2023
Debt Instrument [Line Items]
Long-term debt	$ 700	$ 700
Debt stated interest rate	6.375%	6.375%
5.750% Senior Notes due 2027 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 500	$ 500
Debt stated interest rate	5.75%
Other
Debt Instrument [Line Items]
Long-term debt	$ 3	$ 4
Weighted-average interest rate on long-term debt	0.00%	0.05%
6.125% Senior Notes due 2029 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 500	$ 500
Debt stated interest rate	6.125%
Term loan facility
Debt Instrument [Line Items]
Current portion of Senior Secured Credit Facility	$ 7	$ 8
Weighted-Average interest rate on short-term borrowings	4.30%	4.30%
Trade Receivables Securitization Facility
Debt Instrument [Line Items]
Short-term borrowings	$ 293	$ 270
Weighted-Average interest rate on short-term borrowings	2.65%	2.65%
Other
Debt Instrument [Line Items]
Short-term borrowings	$ 4	$ 4
Weighted-Average interest rate on short-term borrowings	4.25%	2.82%

Employee Benefit Plans

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

7. EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost (income) of the pension plans for the three months ended March 31 were as follows:



In millions	U.S. Pension Benefits						International Pension Benefits						Total Pension Benefits
In millions	2020			2019			2020			2019			2020			2019
Net service cost	$	—		$	—		$	1		$	2		$	1		$	2
Interest cost	13			16			4			5			17			21
Expected return on plan assets	(9		)	(10		)	(7		)	(8		)	(16		)	(18		)
Net periodic benefit cost (income)	$	4		$	6		$	(2	)	$	(1	)	$	2		$	5

The benefit from the postretirement plan for the following periods were:



In millions	Three months ended March 31
In millions	2020			2019
Interest cost	$	—		$	—
Amortization of:
Prior service benefit	(1		)	(1		)
Net postretirement benefit	$	(1	)	$	(1	)

The net cost of the postemployment plan for the following periods were:



	Three months ended March 31
In millions	2020			2019
Net service cost	$	6		$	14
Interest cost	—			1
Amortization of:
Prior service benefit	—			(1		)
Actuarial gain	(1		)	(1		)
Net benefit cost	$	5		$	13

Employer Contributions

Pension For the three months ended March 31, 2020, NCR contributed $5 million to its international pension plans. NCR anticipates contributing an additional $16 million to its international pension plans for a total of $21 million in 2020.

Postretirement For the three months ended March 31, 2020, NCR made no contributions to its U.S. postretirement plan. NCR anticipates contributing an additional $2 million to its U.S. postretirement plan for a total of $2 million in 2020.

Postemployment For the three months ended March 31, 2020, NCR contributed $4 million to its postemployment plans. NCR anticipates contributing an additional $46 million to its postemployment plans for a total of $50 million in 2020.

Leasing - Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended
Leasing - Lease Costs (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease cost	$ 32	$ 35
Finance lease cost
Amortization of leased assets	3	0
Interest on lease liabilities	0	0
Short-Term lease cost	1	2
Variable lease cost	7	9
Total lease cost	$ 43	$ 46

Condensed Consolidating Supplemental Guarantor Information - Balance Sheet (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Current assets
Cash and cash equivalents	$ 1,214	$ 509	$ 414
Accounts receivable, net	1,353	1,490
Inventories	747	784
Due from affiliates	0	0
Other current assets	463	361
Total current assets	3,777	3,144
Property, plant and equipment, net	399	413
Goodwill	2,821	2,832
Intangibles, net	580	607
Operating lease assets	362	391
Prepaid pension cost	176	178
Deferred Income Taxes and Other Assets, Noncurrent	808	821
Investments in subsidiaries	0	0
Due from affiliates	0	0
Other assets	632	601
Total assets	9,555	8,987
Current liabilities
Short-term borrowings	304	282
Accounts payable	790	840
Payroll and benefits liabilities	186	308
Contract with Customer, Liability, Current	616	502
Contract with Customer, Liability, Noncurrent	75	81
Due to affiliates	0	0
Other current liabilities	510	606
Total current liabilities	2,406	2,538
Long-term debt	4,081	3,277
Pension and indemnity plan liabilities	855	858
Postretirement and postemployment benefits liabilities	112	111
Income tax accruals	89	92
Due to affiliates	0	0
Operating lease liabilities	346	369
Other liabilities	244	240
Total liabilities	8,133	7,485
Redeemable noncontrolling interest	0	0
Series A convertible preferred stock	395	395
Stockholders’ equity
Total NCR stockholders’ equity	1,024	1,104
Noncontrolling interests in subsidiaries	3	3
Total stockholders’ equity	1,027	1,107
Total liabilities and stockholders’ equity	9,555	8,987
Eliminations
Current assets
Cash and cash equivalents	0	0	0
Accounts receivable, net	0	0
Inventories	0	0
Due from affiliates	(4,865)	(3,657)
Other current assets	0	0
Total current assets	(4,865)	(3,657)
Property, plant and equipment, net	0	0
Goodwill	0	0
Intangibles, net	0	0
Operating lease assets	0	0
Prepaid pension cost	0	0
Deferred Income Taxes and Other Assets, Noncurrent	0	0
Investments in subsidiaries	(8,077)	(8,056)
Due from affiliates	(91)	(91)
Other assets	0	0
Total assets	(13,033)	(11,804)
Current liabilities
Short-term borrowings	0	0
Accounts payable	0	0
Payroll and benefits liabilities	0	0
Contract with Customer, Liability, Current	0	0
Due to affiliates	(4,865)	(3,657)
Other current liabilities	0	0
Total current liabilities	(4,865)	(3,657)
Long-term debt	0	0
Pension and indemnity plan liabilities	0	0
Postretirement and postemployment benefits liabilities	0	0
Income tax accruals	0	0
Due to affiliates	(91)	(91)
Operating lease liabilities	0	0
Other liabilities	0	0
Total liabilities	(4,956)	(3,748)
Redeemable noncontrolling interest	0	0
Series A convertible preferred stock	0	0
Stockholders’ equity
Total NCR stockholders’ equity	(8,077)	(8,056)
Noncontrolling interests in subsidiaries	0	0
Total stockholders’ equity	(8,077)	(8,056)
Total liabilities and stockholders’ equity	(13,033)	(11,804)
Parent Issuer
Current assets
Cash and cash equivalents	945	15	21
Accounts receivable, net	77	54
Inventories	236	315
Due from affiliates	853	909
Other current assets	220	122
Total current assets	2,331	1,415
Property, plant and equipment, net	265	280
Goodwill	2,186	2,183
Intangibles, net	456	471
Operating lease assets	238	254
Prepaid pension cost	0	0
Deferred Income Taxes and Other Assets, Noncurrent	331	335
Investments in subsidiaries	4,119	4,118
Due from affiliates	16	16
Other assets	563	527
Total assets	10,505	9,599
Current liabilities
Short-term borrowings	9	8
Accounts payable	357	427
Payroll and benefits liabilities	88	188
Contract with Customer, Liability, Current	336	245
Due to affiliates	2,963	2,730
Other current liabilities	218	261
Total current liabilities	3,971	3,859
Long-term debt	4,078	3,199
Pension and indemnity plan liabilities	590	586
Postretirement and postemployment benefits liabilities	16	17
Income tax accruals	30	29
Due to affiliates	0	0
Operating lease liabilities	269	282
Other liabilities	132	128
Total liabilities	9,086	8,100
Redeemable noncontrolling interest	0	0
Series A convertible preferred stock	395	395
Stockholders’ equity
Total NCR stockholders’ equity	1,024	1,104
Noncontrolling interests in subsidiaries	0	0
Total stockholders’ equity	1,024	1,104
Total liabilities and stockholders’ equity	10,505	9,599
Guarantor Subsidiary
Current assets
Cash and cash equivalents	3	3	3
Accounts receivable, net	1	1
Inventories	1	1
Due from affiliates	2,218	2,217
Other current assets	1	1
Total current assets	2,224	2,223
Property, plant and equipment, net	0	0
Goodwill	0	0
Intangibles, net	0	0
Operating lease assets	0	0
Prepaid pension cost	0	0
Deferred Income Taxes and Other Assets, Noncurrent	2	2
Investments in subsidiaries	3,958	3,938
Due from affiliates	1	1
Other assets	1	1
Total assets	6,186	6,165
Current liabilities
Short-term borrowings	0	0
Accounts payable	0	0
Payroll and benefits liabilities	0	0
Contract with Customer, Liability, Current	1	1
Due to affiliates	109	108
Other current liabilities	1	1
Total current liabilities	111	110
Long-term debt	0	0
Pension and indemnity plan liabilities	0	0
Postretirement and postemployment benefits liabilities	3	3
Income tax accruals	0	0
Due to affiliates	74	74
Operating lease liabilities	0	0
Other liabilities	0	0
Total liabilities	188	187
Redeemable noncontrolling interest	0	0
Series A convertible preferred stock	0	0
Stockholders’ equity
Total NCR stockholders’ equity	5,998	5,978
Noncontrolling interests in subsidiaries	0	0
Total stockholders’ equity	5,998	5,978
Total liabilities and stockholders’ equity	6,186	6,165
Non-Guarantor Subsidiaries
Current assets
Cash and cash equivalents	266	491	$ 390
Accounts receivable, net	1,275	1,435
Inventories	510	468
Due from affiliates	1,794	531
Other current assets	242	238
Total current assets	4,087	3,163
Property, plant and equipment, net	134	133
Goodwill	635	649
Intangibles, net	124	136
Operating lease assets	124	137
Prepaid pension cost	176	178
Deferred Income Taxes and Other Assets, Noncurrent	475	484
Investments in subsidiaries	0	0
Due from affiliates	74	74
Other assets	68	73
Total assets	5,897	5,027
Current liabilities
Short-term borrowings	295	274
Accounts payable	433	413
Payroll and benefits liabilities	98	120
Contract with Customer, Liability, Current	279	256
Due to affiliates	1,793	819
Other current liabilities	291	344
Total current liabilities	3,189	2,226
Long-term debt	3	78
Pension and indemnity plan liabilities	265	272
Postretirement and postemployment benefits liabilities	93	91
Income tax accruals	59	63
Due to affiliates	17	17
Operating lease liabilities	77	87
Other liabilities	112	112
Total liabilities	3,815	2,946
Redeemable noncontrolling interest	0	0
Series A convertible preferred stock	0	0
Stockholders’ equity
Total NCR stockholders’ equity	2,079	2,078
Noncontrolling interests in subsidiaries	3	3
Total stockholders’ equity	2,082	2,081
Total liabilities and stockholders’ equity	$ 5,897	$ 5,027

Supplemental Financial Information - Components of Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Inventory, Net [Abstract]
Work in process and raw materials	$ 190	$ 204
Finished goods	183	184
Service parts	374	396
Total inventories	$ 747	$ 784

Debt Obligations - Fair Value of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Debt value of long-term debt	$ 4,220	$ 3,700

Leasing - Weighted Average Remaining Lease Term and Interest Rate (Details)	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted average lease term, operating leases	9 years 1 month 6 days	8 years 10 months 24 days
Weighted average lease term, finance leases	3 years 2 months 12 days	3 years 4 months 24 days
Weighted average interest rate, operating leases	6.39%	6.42%
Weighted average interest rate, finance leases	4.15%	3.72%

Condensed Consolidating Supplemental Guarantor Information

3 Months Ended

Mar. 31, 2020

Condensed Consolidating Supplemental Guarantor Information [Abstract]

CONDENSED CONSOLIDATED SUPPLEMENTAL GUARANTOR INFORMATION

16. CONDENSED CONSOLIDATING SUPPLEMENTAL GUARANTOR INFORMATION

The Company's 5.00% Notes and 6.375% Notes are guaranteed by the Company's subsidiary, NCR International, Inc. (Guarantor Subsidiary), which is 100% owned by the Company and has guaranteed fully and unconditionally the obligations to pay principal and interest for these senior unsecured notes. The guarantees are subject to release under certain circumstances as described below:


•	the designation of the Guarantor Subsidiary as an unrestricted subsidiary under the indenture governing the notes;


•	the release of the Guarantor Subsidiary from its guarantee under the Senior Secured Credit Facility;


•	the release or discharge of the indebtedness that required the guarantee of the notes by the Guarantor Subsidiary;


•	the permitted sale or other disposition of the Guarantor Subsidiary to a third party; and


•	the Company's exercise of its legal defeasance option of its covenant defeasance option under the indenture governing the notes.

Refer to Note 4, Debt Obligations for additional information.

In connection with the previously completed registered exchange offers for the 5.00% Notes and 6.375% Notes, the Company is required to comply with Rule 3-10 of SEC Regulation S-X (Rule 3-10), and has therefore included the accompanying Condensed Consolidating Financial Statements in accordance with Rule 3-10(f) of SEC Regulation S-X.

The following supplemental information sets forth, on a consolidating basis, the Condensed Statements of Operations and Comprehensive Income (Loss), the Condensed Balance Sheets and the Condensed Statements of Cash Flows for the parent issuer of these senior unsecured notes, for the Guarantor Subsidiary and for the Company and all of its consolidated subsidiaries.



Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the three months ended March 31, 2020

In millions	Parent Issuer			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	211		$	1	$	313		$	(51	)	$	474
Service revenue	547			1		481			—			1,029
Total revenue	758			2		794			(51		)	1,503
Cost of products	177			—		265			(51		)	391
Cost of services	389			1		325			—			715
Selling, general and administrative expenses	176			—		79			—			255
Research and development expenses	33			—		32			—			65
Total operating expenses	775			1		701			(51		)	1,426
Income (loss) from operations	(17		)	1		93			—			77
Interest expense	(48		)	—		(3		)	1			(50		)
Other (expense) income, net	5			—		(6		)	(1		)	(2		)
Income (loss) from continuing operations before income taxes	(60		)	1		84			—			25
Income tax expense (benefit)	(7		)	1		7			—			1
Income (loss) from continuing operations before earnings in subsidiaries	(53		)	—		77			—			24
Equity in earnings of consolidated subsidiaries	76			74		—			(150		)	—
Income (loss) from continuing operations	23			74		77			(150		)	24
Income (loss) from discontinued operations, net of tax	—			—		—			—			—
Net income (loss)	$	23		$	74	$	77		$	(150	)	$	24
Net income (loss) attributable to noncontrolling interests	—			—		1			—			1
Net income (loss) attributable to NCR	$	23		$	74	$	76		$	(150	)	$	23
Total comprehensive income (loss)	(37		)	15		15			(30		)	(37		)
Less comprehensive income (loss) attributable to noncontrolling interests	—			—		—			—			—
Comprehensive income (loss) attributable to NCR common stockholders	$	(37	)	$	15	$	15		$	(30	)	$	(37	)



Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the three months ended March 31, 2019

In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	273		$	2		$	310		$	(46	)	$	539
Service revenue	523			2			472			—			997
Total revenue	796			4			782			(46		)	1,536
Cost of products	246			—			253			(46		)	453
Cost of services	363			1			308			—			672
Selling, general and administrative expenses	140			—			112			—			252
Research and development expenses	33			—			26			—			59
Total operating expenses	782			1			699			(46		)	1,436
Income (loss) from operations	14			3			83			—			100
Interest expense	(43		)	—			(5		)	3			(45		)
Other (expense) income, net	(13		)	2			6			(3		)	(8		)
Income (loss) from continuing operations before income taxes	(42		)	5			84			—			47
Income tax expense (benefit)	49			(1		)	(39		)	—			9
Income (loss) from continuing operations before earnings in subsidiaries	(91		)	6			123			—			38
Equity in earnings of consolidated subsidiaries	128			97			—			(225		)	—
Income (loss) from continuing operations	37			103			123			(225		)	38
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	37		$	103		$	123		$	(225	)	$	38
Net income (loss) attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to NCR	$	37		$	103		$	122		$	(225	)	$	37
Total comprehensive income (loss)	53			120			138			(257		)	54
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	53		$	120		$	137		$	(257	)	$	53



Condensed Consolidating Balance Sheet
March 31, 2020

In millions	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	945	$	3	$	266	$	—		$	1,214
Accounts receivable, net	77		1		1,275		—			1,353
Inventories	236		1		510		—			747
Due from affiliates	853		2,218		1,794		(4,865		)	—
Other current assets	220		1		242		—			463
Total current assets	2,331		2,224		4,087		(4,865		)	3,777
Property, plant and equipment, net	265		—		134		—			399
Goodwill	2,186		—		635		—			2,821
Intangibles, net	456		—		124		—			580
Operating lease assets	238		—		124		—			362
Prepaid pension cost	—		—		176		—			176
Deferred income taxes	331		2		475		—			808
Investments in subsidiaries	4,119		3,958		—		(8,077		)	—
Due from affiliates	16		1		74		(91		)	—
Other assets	563		1		68		—			632
Total assets	$	10,505	$	6,186	$	5,897	$	(13,033	)	$	9,555

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	9	$	—	$	295	$	—		$	304
Accounts payable	357		—		433		—			790
Payroll and benefits liabilities	88		—		98		—			186
Contract liabilities	336		1		279		—			616
Due to affiliates	2,963		109		1,793		(4,865		)	—
Other current liabilities	218		1		291		—			510
Total current liabilities	3,971		111		3,189		(4,865		)	2,406
Long-term debt	4,078		—		3		—			4,081
Pension and indemnity plan liabilities	590		—		265		—			855
Postretirement and postemployment benefits liabilities	16		3		93		—			112
Income tax accruals	30		—		59		—			89
Due to affiliates	—		74		17		(91		)	—
Operating lease liabilities	269		—		77		—			346
Other liabilities	132		—		112		—			244
Total liabilities	9,086		188		3,815		(4,956		)	8,133
Redeemable noncontrolling interest	—		—		—		—			—
Series A convertible preferred stock	395		—		—		—			395
Stockholders’ equity
Total NCR stockholders’ equity	1,024		5,998		2,079		(8,077		)	1,024
Noncontrolling interests in subsidiaries	—		—		3		—			3
Total stockholders’ equity	1,024		5,998		2,082		(8,077		)	1,027
Total liabilities and stockholders’ equity	$	10,505	$	6,186	$	5,897	$	(13,033	)	$	9,555



Condensed Consolidating Balance Sheet
December 31, 2019

In millions	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	15	$	3	491		$	—		$	509
Accounts receivable, net	54		1		1,435		—			1,490
Inventories	315		1		468		—			784
Due from affiliates	909		2,217		531		(3,657		)	—
Other current assets	122		1		238		—			361
Total current assets	1,415		2,223		3,163		(3,657		)	3,144
Property, plant and equipment, net	280		—		133		—			413
Goodwill	2,183		—		649		—			2,832
Intangibles, net	471		—		136		—			607
Operating lease assets	254		—		137		—			391
Prepaid pension cost	—		—		178		—			178
Deferred income taxes	335		2		484		—			821
Investments in subsidiaries	4,118		3,938		—		(8,056		)	—
Due from affiliates	16		1		74		(91		)	—
Other assets	527		1		73		—			601
Total assets	$	9,599	$	6,165	$	5,027	$	(11,804	)	$	8,987

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	8	$	—	$	274	$	—		$	282
Accounts payable	427		—		413		—			840
Payroll and benefits liabilities	188		—		120		—			308
Contract liabilities	245		1		256		—			502
Due to affiliates	2,730		108		819		(3,657		)	—
Other current liabilities	261		1		344		—			606
Total current liabilities	3,859		110		2,226		(3,657		)	2,538
Long-term debt	3,199		—		78		—			3,277
Pension and indemnity plan liabilities	586		—		272		—			858
Postretirement and postemployment benefits liabilities	17		3		91		—			111
Income tax accruals	29		—		63		—			92
Due to affiliates	—		74		17		(91		)	—
Operating lease liabilities	282		—		87		—			369
Other liabilities	128		—		112		—			240
Total liabilities	8,100		187		2,946		(3,748		)	7,485
Redeemable noncontrolling interest	—		—		—		—			—
Series A convertible preferred stock	395		—		—		—			395
Stockholders’ equity
Total NCR stockholders’ equity	1,104		5,978		2,078		(8,056		)	1,104
Noncontrolling interests in subsidiaries	—		—		3		—			3
Total stockholders’ equity	1,104		5,978		2,081		(8,056		)	1,107
Total liabilities and stockholders’ equity	$	9,599	$	6,165	$	5,027	$	(11,804	)	$	8,987



Condensed Consolidating Statement of Cash Flows
For the three months ended March 31, 2020

In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(67	)	$	(10	)	$	139		$	(1	)	$	61
Investing activities
Expenditures for property, plant and equipment	(2		)	—			(8		)	—			(10		)
Proceeds from sales of property, plant and equipment	7			—			—			—			7
Additions to capitalized software	(55		)	—			(14		)	—			(69		)
Proceeds from (payments of) intercompany notes	242			10			—			(252		)	—
Business acquisitions, net	(6		)	—			(20		)	—			(26		)
Net cash provided by (used in) investing activities	186			10			(42		)	(252		)	(98		)
Financing activities
Short term borrowings, net	2			—			1			—			3
Payments on term credit facilities	(2		)	—			—			—			(2		)
Payments on revolving credit facilities	(430		)	—			(143		)	—			(573		)
Borrowings on revolving credit facilities	1,310			—			87			—			1,397
Repurchase of Common Stock	(41		)	—			—			—			(41		)
Debt issuance cost	(1		)	—			—			—			(1		)
Series A Preferred Stock Dividends	(6		)	—			—			—			(6		)
Proceeds from employee stock plans	3			—			—			—			3
Other financing activities	(2		)	—			(1		)	—			(3		)
Dividend distribution to consolidated subsidiaries	—			—			(1		)	1			—
Borrowings (repayments) of intercompany notes	—			—			(252		)	252			—
Tax withholding payments on behalf of employees	(24		)	—			—			—			(24		)
Net change in client funds obligations	—			—			12			—			12
Net cash provided by (used in) financing activities	809			—			(297		)	253			765
Cash flows from discontinued operations
Net cash used in operating activities	3			—			—			—			3
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(14		)	—			(14		)
Increase (decrease) in cash, cash equivalents and restricted cash	931			—			(214		)	—			717
Cash, cash equivalents and restricted cash at beginning of period	15			3			530			—			548
Cash, cash equivalents and restricted cash at end of period	$	946		$	3		$	316		$	—		$	1,265



In millions	March 31, 2020
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	945	$	3	$	266	$	—	$	1,214
Restricted cash and restricted cash equivalents including funds held for clients included in other assets	1		—		50		—		51
Total cash, cash equivalents and restricted cash	$	946	$	3	$	316	$	—	$	1,265



Condensed Consolidating Statement of Cash Flows
For the three months ended March 31, 2019

In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	111		$	(20	)	$	(107	)	$	—		$	(16	)
Investing activities
Expenditures for property, plant and equipment	(13		)	—			(9		)	—			(22		)
Additions to capitalized software	(36		)	—			(7		)	—			(43		)
Proceeds from (payments of) intercompany notes	29			30			—			(59		)	—
Investments in equity affiliates	—			—			10			(10		)	—
Business acquisitions, net	(6		)	—			—			—			(6		)
Net change in funds held for clients	—			—			—			—			—
Other investing activities, net	3			—			—			—			3
Net cash provided by (used in) investing activities	(23		)	30			(6		)	(69		)	(68		)
Financing activities
Short term borrowings, net	—			—			7			—			7
Payments on term credit facilities	(17		)	—			—			—			(17		)
Payments on revolving credit facilities	(375		)	—			—			—			(375		)
Borrowings on revolving credit facilities	330			—			100			—			430
Proceeds from employee stock plans	4			—			—			—			4
Equity contribution	—			(10		)	—			10			—
Net change in client funds obligations	—			—			17			—			17
Borrowings (repayments) of intercompany notes	—			—			(59		)	59			—
Tax withholding payments on behalf of employees	(13		)	—			—			—			(13		)
Net cash provided by (used in) financing activities	(71		)	(10		)	65			69			53
Cash flows from discontinued operations
Net cash used in operating activities	(6		)	—			—			—			(6		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			1			—			1
Increase (decrease) in cash, cash equivalents, and restricted cash	11			—			(47		)	—			(36		)
Cash, cash equivalents and restricted cash at beginning of period	11			3			508			—			522
Cash, cash equivalents and restricted cash at end of period	$	22		$	3		$	461		$	—		$	486



In millions	March 31, 2019
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	21	$	3	$	390	$	—	$	414
Restricted cash and restricted cash equivalents including funds held for clients included in other assets	1		—		71		—		72
Total cash, cash equivalents and restricted cash	$	22	$	3	$	461	$	—	$	486

Segment Information and Concentrations - Revenue by Products and Services (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from External Customer [Line Items]
Total revenue	$ 1,503	$ 1,536
Product revenue
Revenue from External Customer [Line Items]
Total revenue	474	539
Professional services and installation services revenue
Revenue from External Customer [Line Items]
Total revenue	227	238
Recurring revenue, including maintenance, cloud revenue and payments
Revenue from External Customer [Line Items]
Total revenue	802	759
Software
Revenue from External Customer [Line Items]
Total revenue	474	467
Services
Revenue from External Customer [Line Items]
Total revenue	636	585
Hardware
Revenue from External Customer [Line Items]
Total revenue	$ 393	$ 484

Leasing - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 30	$ 32
Operating cash flows from finance leases	0	0
Financing cash flows from finance leases	3	0
Lease Assets Obtained in Exchange for Lease Obligations
Operating Leases	(2)	12
Finance Leases	$ 8	$ 1

Supplemental Financial Information

3 Months Ended

Mar. 31, 2020

Supplemental Financial Information [Abstract]

SUPPLEMENTAL FINANCIAL INFORMATION

15. SUPPLEMENTAL FINANCIAL INFORMATION

The components of accounts receivable are summarized as follows:



In millions	March 31, 2020			December 31, 2019
Accounts receivable
Trade	$	1,359		$	1,482
Other	44			52
Accounts receivable, gross	1,403			1,534
Less: allowance for credit losses	(50		)	(44		)
Total accounts receivable, net	$	1,353		$	1,490

The components of inventory are summarized as follows:



In millions	March 31, 2020		December 31, 2019
Inventories
Work in process and raw materials	$	190	$	204
Finished goods	183		184
Service parts	374		396
Total inventories	$	747	$	784

Debt Obligations - Senior Secured Credit Facility (Details)	3 Months Ended
	Mar. 31, 2020 USD ($) Rate	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Short-term borrowings	$ 304,000,000	$ 282,000,000
Quarterly Payment of Term Loan Principal Amount	0.25%
Long-term debt	$ 4,081,000,000	3,277,000,000
Letters of credit outstanding	$ 28,000,000
Increase in Maximum Permitted Leverage Ratio due to Material Acquisitions	0.25
Available additional amount of incremental term loan commitment	$ 150,000,000
Period One
Debt Instrument [Line Items]
Debt consolidated leverage ratio	4.25
Debt maximum spread on consolidated leverage ratio	0.50
Period Two
Debt Instrument [Line Items]
Debt consolidated leverage ratio	1.00
Period Three
Debt Instrument [Line Items]
Debt consolidated leverage ratio	4.00
Debt maximum spread on consolidated leverage ratio	0.50
Period Four
Debt Instrument [Line Items]
Debt consolidated leverage ratio	1.00
Period Five
Debt Instrument [Line Items]
Debt consolidated leverage ratio	4.50
Term loan facility \| Base Rate
Debt Instrument [Line Items]
Debt basis spread on variable rate	1.50%
Term loan facility \| LIBOR
Debt Instrument [Line Items]
Debt basis spread on variable rate \| Rate	2.50%
Secured Debt
Debt Instrument [Line Items]
Debt Instrument Covenant Interest Coverage Ratio	4.75
Debt maximum consolidated leverage ratio	4.75
Secured Debt \| Federal Funds Rate
Debt Instrument [Line Items]
Debt basis spread on variable rate	0.50%
Secured Debt \| Base Rate
Debt Instrument [Line Items]
Debt basis spread on variable rate	1.00%
Secured Debt \| LIBOR \| Minimum
Debt Instrument [Line Items]
Debt margin for base rate loans	1.25%
Secured Debt \| LIBOR \| Maximum
Debt Instrument [Line Items]
Debt margin for base rate loans	2.25%
Secured Debt \| EURIBOR \| Minimum
Debt Instrument [Line Items]
Debt margin for base rate loans	0.25%
Secured Debt \| EURIBOR \| Maximum
Debt Instrument [Line Items]
Debt margin for base rate loans	1.25%
Revolving [Member] \| Secured Debt
Debt Instrument [Line Items]
Secured revolving credit facility principal amount	$ 1,100,000,000
Term loan facility
Debt Instrument [Line Items]
Total Term Loan Balance Outstanding	746,000,000
Long-term debt	739,000,000	740,000,000
Term loan facility \| Secured Debt
Debt Instrument [Line Items]
Secured revolving credit facility principal amount	750,000,000
Revolving credit facility
Debt Instrument [Line Items]
Long-term debt	1,070,000,000	$ 265,000,000
Revolving Foreign \| Secured Debt
Debt Instrument [Line Items]
Secured revolving credit facility principal amount	$ 400,000,000
Secured Debt \| Federal Funds Rate
Debt Instrument [Line Items]
Debt basis spread on variable rate	0.50%

Stock Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units	$ 19	$ 20
Stock options	4	2
Employee stock purchase plan	2	1
Stock-based compensation expense	25	23
Tax benefit	(3)	(3)
Stock-based compensation expense (net of tax)	$ 22	$ 20

Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price	$ 38.26
Share Based Compensation, Stock Options Award Exercise Price Premium Percentage	115.00%
Weighted average grant date fair value of stock options (in dollars per share)	$ 7.85	$ 8.07
Contractual term of stock options granted	7 years	7 years
Risk-free interest rate period of U.S. Treasury yield	7 years
Unrecognized compensation cost related to unvested awards	$ 63
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate period of U.S. Treasury yield		3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate period of U.S. Treasury yield		5 years
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount stock purchase price percentage	15.00%
Look-back feature period of discount stock purchase price	3 months
Minimum contribution by participant percentage	1.00%
Maximum contribution by participant percentage	10.00%
Stocks purchased by employees during the period (in shares)	0.5	0.3
Discounted price per share of stocks purchased by employees (in dollar per share)	$ 15.05	$ 20.24
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of stock options grated	3 years	4 years
Weighted average period to recognized compensation cost related to unvested awards	1 year 4 months 24 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested awards	$ 118
Weighted average period to recognized compensation cost related to unvested awards	1 year 1 month 6 days

Goodwill and Long-Lived Assets - Purchased Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 1,426	$ 1,431
Finite-Lived Intangible Assets, Accumulated Amortization	846	824
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	735	735
Finite-Lived Intangible Assets, Accumulated Amortization	$ 284	270
Customer Relationships [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year
Customer Relationships [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 524	529
Finite-Lived Intangible Assets, Accumulated Amortization	$ 403	397
Intellectual Property [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 years
Intellectual Property [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	8 years
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	8 years
Finite-Lived Intangible Assets, Gross	$ 89	89
Finite-Lived Intangible Assets, Accumulated Amortization	89	89
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	78	78
Finite-Lived Intangible Assets, Accumulated Amortization	$ 70	$ 68
Trade Names [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year
Trade Names [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years

Commitments and Contingencies - Loss Contingencies (Details) $ in Millions		3 Months Ended
	Mar. 29, 2018 USD ($) company	Mar. 31, 2020 USD ($) defendant affiliate_corporations facility number_of_companies entity party	Dec. 31, 2019 USD ($)	Aug. 22, 2017 party	Dec. 31, 2013 company	Nov. 13, 2007 entity
Loss Contingencies [Line Items]
Inventory, Net		$ 747	$ 784
Ebina [Member]
Loss Contingencies [Line Items]
Loss contingency accrual		$ 20	19
Fox River
Loss Contingencies [Line Items]
Number of potentially responsible parties \| entity		8				8
Number of previously owned carbonless copy paper manufacturing facilities \| facility		2
Threshold amount for environmental cleanup costs			75
Percentage of funding obligation under cost sharing agreement		50.00%
Percentage of obligation under cost sharing agreement		60.00%
Receivable under funding agreement		$ 53	53
Number of defendants \| defendant		2
Number of parties \| party		2
Gross loss contingency accrual		$ 3	5
Net loss contingency accrual		$ 21	16
Total amount received from settlements with insurance carriers			202
Kalamazoo River
Loss Contingencies [Line Items]
Loss contingency, value of damages sought	$ 105
Number of additional companies receiving general notice letters \| number_of_companies		3
Number of additional defendants \| defendant		2
Number of total corporation plaintiffs \| affiliate_corporations		3
Number of companies tried to the court \| company					4
Costs incurred in the pasted related to loss contingency	50
Loss contingency, value of damages sought	$ 55
NCR share of costs related to loss contingency	40.00%
GP share of costs related to loss contingency	40.00%
Number of companies assigned to share costs of loss contingency \| company	2
Loss contingency accrual		$ 81	81
Fox River LLC \| Fox River
Loss Contingencies [Line Items]
Funding remainder			0
Glatfelter \| Fox River
Loss Contingencies [Line Items]
Number of parties that appealed \| party				1
Company One \| Kalamazoo River
Loss Contingencies [Line Items]
NCR share of costs related to loss contingency	15.00%
Company Two \| Kalamazoo River
Loss Contingencies [Line Items]
NCR share of costs related to loss contingency	5.00%
Fox River
Loss Contingencies [Line Items]
Percentage of portion of costs below threshold		45.00%
Percentage of portion of costs exceeding threshold		40.00%
Fox River \| General Contractor Arbitration [Member]
Loss Contingencies [Line Items]
Loss contingency, range of possible loss			10
Minimum \| Fox River \| General Contractor Arbitration [Member]
Loss Contingencies [Line Items]
Loss contingency, range of possible loss			46
Percentage of Company's award responsibility to indemnitors and co-obligators		25.00%
Maximum \| Fox River \| General Contractor Arbitration [Member]
Loss Contingencies [Line Items]
Loss contingency, range of possible loss			$ 53
BCG Matter [Member]
Loss Contingencies [Line Items]
Loss contingency, value of damages sought		$ 80
Nashville Tornado [Member]
Loss Contingencies [Line Items]
Inventory, Net		151
Inventory Write-down		105
Inventory Requiring Further Assessment for Write-down		46
Insurance Recoveries		25
Insurance Recoveries Received After Period End		$ 40

Earnings Per Share - Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Income (loss) from continuing operations	$ 23	$ 37
Preferred Stock Dividends Income Statement Impact Included in Diluted Earnings Per Share From Continuing Operations	6	13
Preferred Stock Dividends, Income Statement Impact	6	13
Income from continuing operations attributable to NCR common stockholders	17	24
Loss from discontinued operations, net of tax	0	0
Net income attributable to NCR common stockholders	$ 17	$ 24
Weighted average outstanding shares of common stock (in shares)	128.0	119.3
Dilutive effect of restricted stock units (in shares)	2.5	2.9
Denominator (in shares)	130.5	122.2
Diluted earnings per share:
From continuing operations (in dollars per share)	$ 0.13	$ 0.20
From discontinued operations (in dollars per share)	0	0
Total diluted earnings (loss) per share (in dollars per share)	$ 0.13	$ 0.20
Series A Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted per share count (in shares)	13.2	29.2
Restricted Stock Units (RSUs) and Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted per share count (in shares)	7.8	4.5

Series A Convertible Preferred Stock	3 Months Ended
Series A Convertible Preferred Stock	Mar. 31, 2020
Series A Preferred Stock [Abstract]
SERIES A CONVERTIBLE PREFERRED STOCK	10. SERIES A CONVERTIBLE PREFERRED STOCK On December 4, 2015, NCR 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. Holders of Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per annum, payable quarterly in arrears. The Series A Convertible Preferred Stock is 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. Under the Investment Agreement, Blackstone agreed not to sell or otherwise transfer its shares of Series A Convertible Preferred Stock (or any shares of common stock issued upon conversion thereof) without the Company’s consent until June 4, 2017. In March 2017, we provided Blackstone with an early release from this lock-up, allowing Blackstone to sell approximately 49% of its shares of Series A Convertible Preferred Stock, and in return, Blackstone agreed to amend the Investment Agreement to extend the lock-up on the remaining 51% of its shares of Series A Convertible Preferred Stock for six months until December 1, 2017. In connection with the early release of the lock-up, 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, NCR entered into an agreement to repurchase and convert the outstanding 512,221 shares of Series A Convertible Preferred Stock owned by Blackstone. NCR 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 9.16 million shares of common stock at a conversion price of $30.00 per share. Beginning in the first quarter of 2020, dividends are payable in cash or in-kind at the option of the Company. During the three months ended March 31, 2020, the Company paid cash dividends of $6 million. During the three months ended March 31, 2019, the Company paid dividends-in-kind of $12 million. As of March 31, 2020 and December 31, 2019, 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 13.2 million and 13.3 million shares, respectively.

Condensed Consolidating Supplemental Guarantor Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
5.00% Notes
Condensed Financial Statements, Captions [Line Items]
Debt stated interest rate	5.00%	5.00%
6.375% Notes
Condensed Financial Statements, Captions [Line Items]
Debt stated interest rate	6.375%	6.375%
Guarantor Subsidiary \| NCR International, Inc.
Condensed Financial Statements, Captions [Line Items]
Ownership percentage on guarantor subsidiary	100.00%
Guarantor Subsidiary \| NCR International, Inc. \| 5.00% Notes
Condensed Financial Statements, Captions [Line Items]
Debt stated interest rate	5.00%
Guarantor Subsidiary \| NCR International, Inc. \| 6.375% Notes
Condensed Financial Statements, Captions [Line Items]
Debt stated interest rate	6.375%

Goodwill and Long-Lived Assets - Amortization Expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense three months ended 2019	$ 22
Amortization expense remainder of 2019 (estimated)	60
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2020	73
2021	68
2022	66
2023	59
2024	$ 51

Subsequent Events (Details) - USD ($) $ in Millions		3 Months Ended
Subsequent Events (Details) - USD ($) $ in Millions	Apr. 13, 2020	Mar. 31, 2020
8.125% Notes Due 2025 [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Long-term Debt	$ 400
Percentage of Principle Amount Notes Were Sold At	100.00%
Debt Instrument Redemption Price As Percentage of Principle Amount	100.00%
Twelve Month Period Commencing April 15, 2023 [Member] \| 8.125% Notes Due 2025 [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Instrument Redemption Price As Percentage of Principle Amount	102.031%
Twelve month period commencing on April 15, 2022 [Member] \| 8.125% Notes Due 2025 [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Instrument Redemption Price As Percentage of Principle Amount	104.063%
Twelve month period commencing on April 15, 2024 [Member] \| 8.125% Notes Due 2025 [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Instrument Redemption Price As Percentage of Principle Amount	100.00%
Guarantor Subsidiary \| NCR International, Inc. [Member]
Subsequent Event [Line Items]
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions		100.00%
Guarantor Subsidiary \| 8.125% Notes Due 2025 [Member] \| NCR International, Inc. [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.125%

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	5. INCOME TAXES Income tax provisions for interim (quarterly) periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items. Income tax expense was $1 million for the three months ended March 31, 2020 compared to income tax expense of $9 million for the three months ended March 31, 2019. The change was primarily driven by lower income before taxes and an increase in discrete tax benefits in the three months ended March 31, 2020. In connection with preparing the financial statements for the quarter ended March 31, 2020, the Company identified and recorded income tax benefits of $2 million related to an error in the calculation of the permanent differences on executive stock compensation and $3 million for the write-off of income tax payables incorrectly recorded in prior periods. The Company determined the impact of these errors were not material to the annual or interim financial statements of previous periods and the effect of correcting these errors was not material to the Condensed Consolidated Financial Statements for the three months ended March 31, 2020 and is not expected to be material to the 2020 annual financial statements. The Company engages in continuous discussions and negotiations with taxing authorities regarding tax matters, and the Company has determined that over the next 12 months it expects to resolve certain tax matters related to U.S. and foreign jurisdictions. As a result, as of March 31, 2020, we estimate that it is reasonably possible that gross unrecognized tax benefits may decrease by $30 million to $37 million in the next 12 months.

Supplemental Financial Information - Components of Accounts Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable, gross	$ 1,403	$ 1,534
Less: allowance for credit losses	(50)	(44)
Total accounts receivable, net	1,353	1,490
Trade
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable, gross	1,359	1,482
Other
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable, gross	$ 44	$ 52

Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

13. 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 March 31, 2020 and December 31, 2019 are set forth as follows:



	March 31, 2020
In millions	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Deposits held in money market mutual funds ⁽¹⁾	$	937	$	937	$	—	$	—
Foreign exchange contracts ⁽²⁾	6		—		6		—
Total	$	943	$	937	$	6	$	—
Liabilities:
Foreign exchange contracts ⁽³⁾	$	6	$	—	$	6	$	—
Total	$	6	$	—	$	6	$	—



	December 31, 2019
In millions	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Deposits held in money market mutual funds ⁽¹⁾	$	15	$	15	$	—	$	—
Foreign exchange contracts ⁽²⁾	2		—		2		—
Total	$	17	$	15	$	2	$	—
Liabilities:
Foreign exchange contracts ⁽³⁾	$	1	$	—	$	1	$	—
Total	$	1	$	—	$	1	$	—

⁽¹⁾ Included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets.

⁽²⁾ Included in Other current assets in the Condensed Consolidated Balance Sheets.

⁽³⁾ Included in Other current liabilities in the Condensed 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.

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). NCR 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. There were no material impairment charges or non-recurring fair value adjustments recorded during the three months ended March 31, 2020 and 2019.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stock Compensation Plans

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

STOCK COMPENSATION PLANS

6. STOCK COMPENSATION PLANS

As of March 31, 2020, the Company’s primary type of stock-based compensation was restricted stock units and stock options. Stock-based compensation expense for the following periods were:



In millions	Three months ended March 31
In millions	2020			2019
Restricted stock units	$	19		$	20
Stock options	4			2
Employee stock purchase plan	2			1
Stock-based compensation expense	25			23
Tax benefit	(3		)	(3		)
Stock-based compensation expense (net of tax)	$	22		$	20

Stock-based compensation expense is recognized in the financial statements based upon grant date fair value.

In the three months ended March 31, 2020, the stock options granted were premium-priced stock options, in which the exercise price is equal to 115% of the closing stock price on the date of the grant, or an exercise price of $38.26. The weighted average fair value of the option grants was $7.85 based on using a Monte-Carlo simulation model and will be recognized over the requisite service period. These option grants have a seven year contractual term that vest at the end of 36 months. For the three months ended March 31, 2019, the weighted average fair value of option grants was $8.07 with a seven year contractual term that vest ratably over four years. The table below details the assumptions used in determining the fair value of the option grants.



	Three months ended March 31
	2020			2019
Dividend yield	$	—		$	—
Risk-free interest rate	1.46		%	2.50		%
Expected volatility	33.38		%	34.79		%
Expected holding period (years)	3.7			3.9

Expected volatility is calculated as the historical volatility of the Company’s stock over a period equal to the expected term of the options, as management believes this is the best representation of prospective trends. The Company uses historical data to estimate option exercise and employee terminations within the valuation model. The expected holding period represents the period of time that options are expected to be outstanding. For options granted during the three months ended March 31, 2020, the seven-year U.S. Treasury yield curve was used to determine the risk-free interest rate. For options granted during the three months ended March 31, 2019, the risk-free interest rate was determined based on a blend of the three and five-year U.S. Treasury yield curves in effect at the time of the grant.

As of March 31, 2020, the total unrecognized compensation cost of $118 million related to unvested restricted stock grants is expected to be recognized over a weighted average period of approximately 1.1 years. As of March 31, 2020, the total unrecognized compensation cost of $63 million related to unvested stock option grants is expected to be recognized over a weighted average period of approximately 1.4 years.

Employee Stock Purchase Plan The Company's 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 NCR’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.

For the three months ended March 31, 2020, employees purchased 0.5 million shares, at a discounted price of $15.05. For the three months ended March 31, 2019, employees purchased 0.3 million shares, at a discounted price of $20.24.

Derivatives and Hedging Instruments - Gain (Loss) on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Foreign exchange contracts \| Other (expense), net
Derivative [Line Items]
Amount of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations	$ 6	$ (5)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 1	$ 9
Minimum
Income Tax Contingency [Line Items]
Reasonable possible decrease in unrecognized tax benefits	30
Maximum
Income Tax Contingency [Line Items]
Reasonable possible decrease in unrecognized tax benefits	37
Out of period adjustments - stock compensation permanent differences [Member]
Income Tax Contingency [Line Items]
Income tax expense (benefit)	2
Out of period adjustments - write-off of income tax payables [Member]
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 3

Supplemental Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Supplemental Financial Information [Abstract]

Schedule of Components of Accounts Receivable

The components of accounts receivable are summarized as follows:



In millions	March 31, 2020			December 31, 2019
Accounts receivable
Trade	$	1,359		$	1,482
Other	44			52
Accounts receivable, gross	1,403			1,534
Less: allowance for credit losses	(50		)	(44		)
Total accounts receivable, net	$	1,353		$	1,490

Schedule of Components of Inventory

The components of inventory are summarized as follows:



In millions	March 31, 2020		December 31, 2019
Inventories
Work in process and raw materials	$	190	$	204
Finished goods	183		184
Service parts	374		396
Total inventories	$	747	$	784

Leasing (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule of Lease Balances

The following table presents our lease balances as of March 31, 2020 and December 31, 2019:



In millions	Location in the Condensed Consolidated Balance Sheet	March 31, 2020			December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	362		$	391
Finance lease assets	Property, plant and equipment, net	47			38
Accumulated Amortization of Finance lease assets	Property, plant and equipment, net	(8		)	(5		)
Total leased assets		$	401		$	424
Liabilities
Current
Operating lease liabilities	Other current liabilities	$	88		$	91
Finance lease liabilities	Other current liabilities	13			10
Noncurrent
Operating lease liabilities	Operating lease liabilities	346			369
Finance lease liabilities	Other liabilities	28			25
Total lease liabilities		$	475		$	495

Schedule of Lease Costs, Supplemental Cash Flow Information, Lease Term and Interest Rate

The following table presents our lease costs for operating and finance leases:



In millions	Three months ended March 31
In millions	2020		2019
Operating lease cost	$	32	$	35
Finance lease cost
Amortization of leased assets	3		—
Interest on lease liabilities	—		—
Short-Term lease cost	1		2
Variable lease cost	7		9
Total lease cost	$	43	$	46

The following table presents the supplemental cash flow information:



In millions	Three months ended March 31
In millions	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	30		$	32
Operating cash flows from finance leases	$	—		$	—
Financing cash flows from finance leases	$	3		$	—
Lease Assets Obtained in Exchange for Lease Obligations
Operating Leases	$	(2	)	$	12
Finance Leases	$	8		$	1

The following table presents the weighted average remaining lease term and interest rates:



	March 31, 2020		December 31, 2019
Weighted average lease term:
Operating leases	9.1 years		8.9 years
Finance leases	3.2 years		3.4 years
Weighted average interest rates:
Operating leases	6.39	%	6.42	%
Finance leases	4.15	%	3.72	%

Schedule of Reconciliation of Undiscounted Cash Flows of Operating Lease Liabilities

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 Condensed Consolidated Balance Sheet as of March 31, 2020:



In millions	Operating Leases			Finance Leases
Remainder of 2020	$	88		$	10
2021	86			14
2022	64			13
2023	44			6
2024	38			—
Thereafter	272			—
Total lease payments	592			43
Less: Amount representing interest	(158		)	(2		)
Present value of lease liabilities	$	434		$	41

Schedule of Reconciliation of Undiscounted Cash Flows of Finance Lease Liabilities



In millions	Operating Leases			Finance Leases
Remainder of 2020	$	88		$	10
2021	86			14
2022	64			13
2023	44			6
2024	38			—
Thereafter	272			—
Total lease payments	592			43
Less: Amount representing interest	(158		)	(2		)
Present value of lease liabilities	$	434		$	41

Condensed Consolidating Supplemental Guarantor Information - Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total revenue	$ 1,503,000,000	$ 1,536,000,000
Selling, general and administrative expenses	255,000,000	252,000,000
Research and development expenses	65,000,000	59,000,000
Total operating expenses	1,426,000,000	1,436,000,000
Income (loss) from operations	77,000,000	100,000,000
Interest expense	(50,000,000)	(45,000,000)
Other expense, net	(2,000,000)	(8,000,000)
Income (loss) from continuing operations before income taxes	25,000,000	47,000,000
Income tax expense (benefit)	1,000,000	9,000,000
Income (loss) from continuing operations before earnings in subsidiaries	24,000,000	38,000,000
Equity in earnings of consolidated subsidiaries	0	0
Income (loss) from continuing operations	24,000,000	38,000,000
Income (loss) from discontinued operations, net of tax	0	0
Net income (loss)	24,000,000	38,000,000
Net income (loss) attributable to noncontrolling interests	1,000,000	1,000,000
Net income (loss) attributable to NCR	23,000,000	37,000,000
Total comprehensive income (loss)	(37,000,000)	54,000,000
Less comprehensive income (loss) attributable to noncontrolling interests	0	1,000,000
Comprehensive income (loss) attributable to NCR	(37,000,000)	53,000,000
Product
Total revenue	474,000,000	539,000,000
Cost of revenue	391,000,000	453,000,000
Services
Total revenue	1,029,000,000	997,000,000
Cost of revenue	715,000,000	672,000,000
Eliminations
Total revenue	(51,000,000)	(46,000,000)
Selling, general and administrative expenses	0	0
Research and development expenses	0	0
Total operating expenses	(51,000,000)	(46,000,000)
Income (loss) from operations	0	0
Interest expense	(1,000,000)	3,000,000
Other expense, net	(1,000,000)	(3,000,000)
Income (loss) from continuing operations before income taxes	0	0
Income tax expense (benefit)	0	0
Income (loss) from continuing operations before earnings in subsidiaries	0	0
Equity in earnings of consolidated subsidiaries	(150,000,000)	(225,000,000)
Income (loss) from continuing operations	(150,000,000)	(225,000,000)
Income (loss) from discontinued operations, net of tax	0	0
Net income (loss)	(150,000,000)	(225,000,000)
Net income (loss) attributable to noncontrolling interests	0	0
Net income (loss) attributable to NCR	(150,000,000)	(225,000,000)
Total comprehensive income (loss)	(30,000,000)	(257,000,000)
Less comprehensive income (loss) attributable to noncontrolling interests	0	0
Comprehensive income (loss) attributable to NCR	(30,000,000)	(257,000,000)
Eliminations \| Product
Total revenue	(51,000,000)	(46,000,000)
Cost of revenue	(51,000,000)	(46,000,000)
Eliminations \| Services
Total revenue	0	0
Cost of revenue	0	0
Parent Issuer
Total revenue	758,000,000	796,000,000
Selling, general and administrative expenses	176,000,000	140,000,000
Research and development expenses	33,000,000	33,000,000
Total operating expenses	775,000,000	782,000,000
Income (loss) from operations	(17,000,000)	14,000,000
Interest expense	(48,000,000)	(43,000,000)
Other expense, net	5,000,000	(13,000,000)
Income (loss) from continuing operations before income taxes	(60,000,000)	(42,000,000)
Income tax expense (benefit)	(7,000,000)	49,000,000
Income (loss) from continuing operations before earnings in subsidiaries	(53,000,000)	(91,000,000)
Equity in earnings of consolidated subsidiaries	76,000,000	128,000,000
Income (loss) from continuing operations	23,000,000	37,000,000
Income (loss) from discontinued operations, net of tax	0	0
Net income (loss)	23,000,000	37,000,000
Net income (loss) attributable to noncontrolling interests	0	0
Net income (loss) attributable to NCR	23,000,000	37,000,000
Total comprehensive income (loss)	(37,000,000)	53,000,000
Less comprehensive income (loss) attributable to noncontrolling interests	0	0
Comprehensive income (loss) attributable to NCR	(37,000,000)	53,000,000
Parent Issuer \| Product
Total revenue	211,000,000	273,000,000
Cost of revenue	177,000,000	246,000,000
Parent Issuer \| Services
Total revenue	547,000,000	523,000,000
Cost of revenue	389,000,000	363,000,000
Guarantor Subsidiary
Total revenue	2,000,000	4,000,000
Selling, general and administrative expenses	0	0
Research and development expenses	0	0
Total operating expenses	1,000,000	1,000,000
Income (loss) from operations	1,000,000	3,000,000
Interest expense	0	0
Other expense, net	0	2,000,000
Income (loss) from continuing operations before income taxes	1,000,000	5,000,000
Income tax expense (benefit)	1,000,000	(1,000,000)
Income (loss) from continuing operations before earnings in subsidiaries	0	6,000,000
Equity in earnings of consolidated subsidiaries	74,000,000	97,000,000
Income (loss) from continuing operations	74,000,000	103,000,000
Income (loss) from discontinued operations, net of tax	0	0
Net income (loss)	74,000,000	103,000,000
Net income (loss) attributable to noncontrolling interests	0	0
Net income (loss) attributable to NCR	74,000,000	103,000,000
Total comprehensive income (loss)	15,000,000	120,000,000
Less comprehensive income (loss) attributable to noncontrolling interests	0	0
Comprehensive income (loss) attributable to NCR	15,000,000	120,000,000
Guarantor Subsidiary \| Product
Total revenue	1,000,000	2,000,000
Cost of revenue	0	0
Guarantor Subsidiary \| Services
Total revenue	1,000,000	2,000,000
Cost of revenue	1,000,000	1,000,000
Non-Guarantor Subsidiaries
Total revenue	794,000,000	782,000,000
Selling, general and administrative expenses	79,000,000	112,000,000
Research and development expenses	32,000,000	26,000,000
Total operating expenses	701,000,000	699,000,000
Income (loss) from operations	93,000,000	83,000,000
Interest expense	(3,000,000)	(5,000,000)
Other expense, net	(6,000,000)	6,000,000
Income (loss) from continuing operations before income taxes	84,000,000	84,000,000
Income tax expense (benefit)	7,000,000	(39,000,000)
Income (loss) from continuing operations before earnings in subsidiaries	77,000,000	123,000,000
Equity in earnings of consolidated subsidiaries	0	0
Income (loss) from continuing operations	77,000,000	123,000,000
Income (loss) from discontinued operations, net of tax	0	0
Net income (loss)	77,000,000	123,000,000
Net income (loss) attributable to noncontrolling interests	1,000,000	1,000,000
Net income (loss) attributable to NCR	76,000,000	122,000,000
Total comprehensive income (loss)	15,000,000	138,000,000
Less comprehensive income (loss) attributable to noncontrolling interests	0	1,000,000
Comprehensive income (loss) attributable to NCR	15,000,000	137,000,000
Non-Guarantor Subsidiaries \| Product
Total revenue	313,000,000	310,000,000
Cost of revenue	265,000,000	253,000,000
Non-Guarantor Subsidiaries \| Services
Total revenue	481,000,000	472,000,000
Cost of revenue	$ 325,000,000	$ 308,000,000

Basis of Presentation and Summary of Significant Accounting Policies Contract Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Current portion of contract assets	$ 9	$ 9
Contract with Customer, Liability, Current	616	502
Non-current portion of contract liabilities	75	$ 81
Revenue recognized that was included in contract liabilities	198
Remaining performance obligations	$ 4,000

Cover Page - shares shares in Millions	3 Months Ended
Cover Page - shares shares in Millions	Mar. 31, 2020	Apr. 17, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Entity File Number	001-00395
Entity Registrant Name	NCR CORP
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	937
Local Phone Number	445-5000
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
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NCR
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		127.8
Entity Central Index Key	0000070866
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Transition Report	false

Stock Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

Stock-based compensation expense for the following periods were:



In millions	Three months ended March 31
In millions	2020			2019
Restricted stock units	$	19		$	20
Stock options	4			2
Employee stock purchase plan	2			1
Stock-based compensation expense	25			23
Tax benefit	(3		)	(3		)
Stock-based compensation expense (net of tax)	$	22		$	20

Schedule of Valuation Assumptions Used To Estimate Fair Value of Stock Options

he weighted average fair value of the option grants was $7.85 based on using a Monte-Carlo simulation model and will be recognized over the requisite service period. These option grants have a seven year contractual term that vest at the end of 36 months. For the three months ended March 31, 2019, the weighted average fair value of option grants was $8.07 with a seven year contractual term that vest ratably over four years. The table below details the assumptions used in determining the fair value of the option grants.



	Three months ended March 31
	2020			2019
Dividend yield	$	—		$	—
Risk-free interest rate	1.46		%	2.50		%
Expected volatility	33.38		%	34.79		%
Expected holding period (years)	3.7			3.9

Derivatives and Hedging Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING INSTRUMENTS

12. DERIVATIVES AND HEDGING INSTRUMENTS

NCR is exposed to risks associated with changes in foreign currency exchange rates and interest rates. NCR utilizes a variety of measures to monitor and manage these risks, including the use of derivative financial instruments. NCR has exposure to approximately 50 functional currencies. Since a substantial portion of our operations and revenue occur outside the U.S., and in currencies other than the U.S. Dollar, our results can be significantly impacted, both positively and negatively, by changes in foreign currency exchange rates.

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 Condensed 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. The amount we hedge and the duration of hedge contracts may vary significantly. In the longer term (greater than 15 months), the subsidiaries are still subject to the effect of translating the functional currency results to U.S. 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 NCR’s marketing units and the foreign currency denominated inputs to our manufacturing units. The related foreign exchange contracts are designated as highly effective cash flow hedges. The gains or losses on these hedges are deferred in accumulated other comprehensive income (AOCI) and reclassified to income when the underlying hedged transaction is recorded in earnings. As of March 31, 2020, the balance in AOCI related to foreign exchange derivative transactions was a gain of $2 million, net of tax. The gains or losses from derivative contracts related to inventory purchases are recorded in cost of products when the inventory is sold to an unrelated third party.

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. We do not enter into hedges for speculative purposes.

The following tables provide information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets:



	Fair Values of Derivative Instruments
	March 31, 2020
In millions	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts	Other current assets	$	155	$	5	Other current liabilities	$	79	$	2
Total derivatives designated as hedging instruments				$	5				$	2
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets	$	175	$	1	Other current liabilities	$	319	$	4
Total derivatives not designated as hedging instruments				$	1				$	4
Total derivatives				$	6				$	6


	Fair Values of Derivative Instruments
	December 31, 2019
In millions	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts	Other current assets	$	55	$	1	Other current liabilities	$	—	$	—
Total derivatives designated as hedging instruments				$	1				$	—
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets	$	71	$	1	Other current liabilities	$	264	$	1
Total derivatives not designated as hedging instruments				$	1				$	1
Total derivatives				$	2				$	1

The effects of derivative instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019 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 Condensed Consolidated Statement of Operations
Derivatives in Cash Flow Hedging Relationships	For the three months ended March 31, 2020		For the three months ended March 31, 2019		Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations	For the three months ended March 31, 2020			For the three months ended March 31, 2019
Foreign exchange contracts	$	3	$	1	Cost of products	$	(1	)	$	(1	)



In millions		Amount of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations
		Three months ended March 31
Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations	2020		2019
Foreign exchange contracts	Other (expense), net	$	6	$	(5	)

Refer to Note 13. 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

NCR 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 Condensed 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’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 expected losses are adequate. As of March 31, 2020, we did not have any significant concentration of credit risk related to financial instruments.

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Impairment Charges	$ 0	$ 0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	937		$ 15
Foreign Currency Contract, Asset, Fair Value Disclosure	0		0
Assets, Fair Value Disclosure	937		15
Foreign Currency Contracts, Liability, Fair Value Disclosure	0		0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0		0
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0		0
Foreign Currency Contract, Asset, Fair Value Disclosure	6		2
Assets, Fair Value Disclosure	6		2
Foreign Currency Contracts, Liability, Fair Value Disclosure	6		1
Financial and Nonfinancial Liabilities, Fair Value Disclosure	6		1
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0		0
Foreign Currency Contract, Asset, Fair Value Disclosure	0		0
Assets, Fair Value Disclosure	0		0
Foreign Currency Contracts, Liability, Fair Value Disclosure	0		0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0		0
Fair Value, Recurring [Member] \| Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	937		15
Foreign Currency Contract, Asset, Fair Value Disclosure	6		2
Assets, Fair Value Disclosure	943		17
Foreign Currency Contracts, Liability, Fair Value Disclosure	6		1
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 6		$ 1

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 24	$ 38
Currency translation adjustments
Currency translation gains (losses)	(61)	19
Derivatives
Unrealized gains on derivatives	3	1
Gains on derivatives recognized during the period	(1)	(1)
Less income tax provision	1
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax		0
Employee benefit plans
Amortization of prior service benefit	(1)	(2)
Amortization of actuarial losses	(1)	(1)
Less income tax benefit	1	0
Other comprehensive income (loss)	(61)	16
Total comprehensive income (loss)	(37)	54
Less comprehensive income attributable to noncontrolling interests:
Net income (loss)	1	1
Currency translation adjustments	(1)	0
Amounts attributable to noncontrolling interests	0	1
Comprehensive income (loss) attributable to NCR	$ (37)	$ 53

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows
Cash and cash equivalents	$ 1,214	$ 509	$ 414
Restricted cash included in other assets	51	72	72
Total cash, cash equivalents and restricted cash	$ 1,265	$ 548	$ 486	$ 522	$ 522

Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables)

3 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of Changes in AOCI by Component

Changes in AOCI by Component



In millions	Currency Translation Adjustments			Changes in Employee Benefit Plans			Changes in Fair Value of Effective Cash Flow Hedges			Total
Balance as of December 31, 2019	$	(260	)	$	(10	)	$	1		$	(269	)
Other comprehensive income (loss) before reclassifications	(60		)	—			2			(58		)
Amounts reclassified from AOCI	—			(1		)	(1		)	(2		)
Net current period other comprehensive (loss) income	(60		)	(1		)	1			(60		)
Balance as of March 31, 2020	$	(320	)	$	(11	)	$	2		$	(329	)

Reclassification out of AOCI

Reclassifications Out of AOCI



		For the three months ended March 31, 2020
		Employee Benefit Plans
In millions		Amortization of Actuarial Loss (Gain)			Amortization of Prior Service Benefit			Effective Cash Flow Hedge Loss (Gain)			Total
Affected line in Condensed Consolidated Statement of Operations:
	Cost of products	$	—		$	—		$	(1	)	$	(1	)
	Cost of services	(1		)	(1		)	—			(2		)
	Total before tax	$	(1	)	$	(1	)	$	(1	)	$	(3	)
	Tax expense										1
	Total reclassifications, net of tax										$	(2	)



		For the three months ended March 31, 2019
		Employee Benefit Plans
In millions		Amortization of Actuarial Loss (Gain)			Amortization of Prior Service Benefit			Effective Cash Flow Hedge Loss (Gain)			Total
Affected line in Condensed Consolidated Statement of Operations:
	Cost of products	$	—		$	—		$	(1	)	$	(1	)
	Cost of services	(1		)	(2		)	—			(3		)
	Total before tax	$	(1	)	$	(2	)	$	(1	)	$	(4	)
	Tax expense										—
	Total reclassifications, net of tax										$	(4	)

Subsequent Events Presentation (Notes)	3 Months Ended
Subsequent Events Presentation (Notes)	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events [Text Block]	17. SUBSEQUENT EVENTS Acquisition of OKI Brasil On June 6, 2019, we entered into a definitive agreement with Oki Electric Industry Co., Ltd. and its Brazilian subsidiary, Oki Brasil Industria e Comércio de Produtos e Tecnologia em Automação S.A., to purchase OKI Brasil's IT services and select software assets for use in the financial, retail and other industries. Neither OKI's manufacturing operations nor its printing business in Brazil are included in the acquisition. On April 9, 2020, we completed this acquisition through the purchase of 100% of the quotas of Origami Brasil Tecnologia e Serviços em Automação Ltda., which became a wholly owned subsidiary of our subsidiary, NCR Brasil, Ltda. Senior Unsecured Notes On April 13, 2020, the Company issued $400 million aggregate principal amount of 8.125% senior unsecured notes due in 2025 (the 8.125% Notes). The 8.125% Notes were sold at 100% of the principal amount, which resulted in total gross proceeds of $400 million. Interest is payable on the Notes semi-annually in arrears at an annual rate of 8.125%, on April 15 and October 15 of each year, beginning on October 15, 2020. The Notes will mature on April 15, 2025. The 8.125% Notes are unsecured senior obligations of the Company and are guaranteed by the Company's wholly-owned subsidiary, NCR International, Inc. (Guarantor Subsidiary), which is 100% owned by the Company and has guaranteed fully and unconditionally the obligations to pay principal and interest for these senior unsecured notes. The Company has the option to redeem the 8.125% Notes, in whole or in part, at any time on or after April 15, 2022, at a redemption price of 104.063%, 102.031%, and 100% during the 12-month periods commencing on April 15, 2022, 2023 and 2024 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to April 15, 2022, the Company may redeem some or all of the 8.125% 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, as of, and 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).

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liability

The Company recorded the activity related to the warranty reserve for the three months ended March 31 as follows:



In millions	2020			2019
Warranty reserve liability
Beginning balance as of January 1	$	21		$	26
Accruals for warranties issued	8			8
Settlements (in cash or in kind)	(11		)	(10		)
Ending balance as of March 31	$	18		$	24

Leasing

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

LEASING

9. LEASING

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 12 months or less at inception are not recorded on our Condensed Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term in our Condensed 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 Condensed 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.

The following table presents our lease balances as of March 31, 2020 and December 31, 2019:



In millions	Location in the Condensed Consolidated Balance Sheet	March 31, 2020			December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	362		$	391
Finance lease assets	Property, plant and equipment, net	47			38
Accumulated Amortization of Finance lease assets	Property, plant and equipment, net	(8		)	(5		)
Total leased assets		$	401		$	424
Liabilities
Current
Operating lease liabilities	Other current liabilities	$	88		$	91
Finance lease liabilities	Other current liabilities	13			10
Noncurrent
Operating lease liabilities	Operating lease liabilities	346			369
Finance lease liabilities	Other liabilities	28			25
Total lease liabilities		$	475		$	495

The following table presents our lease costs for operating and finance leases:



In millions	Three months ended March 31
In millions	2020		2019
Operating lease cost	$	32	$	35
Finance lease cost
Amortization of leased assets	3		—
Interest on lease liabilities	—		—
Short-Term lease cost	1		2
Variable lease cost	7		9
Total lease cost	$	43	$	46

The following table presents the supplemental cash flow information:



In millions	Three months ended March 31
In millions	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	30		$	32
Operating cash flows from finance leases	$	—		$	—
Financing cash flows from finance leases	$	3		$	—
Lease Assets Obtained in Exchange for Lease Obligations
Operating Leases	$	(2	)	$	12
Finance Leases	$	8		$	1



In millions	Operating Leases			Finance Leases
Remainder of 2020	$	88		$	10
2021	86			14
2022	64			13
2023	44			6
2024	38			—
Thereafter	272			—
Total lease payments	592			43
Less: Amount representing interest	(158		)	(2		)
Present value of lease liabilities	$	434		$	41

As of March 31, 2020, we have additional operating leases of $73 million, primarily for a real estate lease in Europe, that have not yet commenced. This operating lease is expected to commence in 2021 with a lease term of 10 years.

The following table presents the weighted average remaining lease term and interest rates:



	March 31, 2020		December 31, 2019
Weighted average lease term:
Operating leases	9.1 years		8.9 years
Finance leases	3.2 years		3.4 years
Weighted average interest rates:
Operating leases	6.39	%	6.42	%
Finance leases	4.15	%	3.72	%

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.

LEASING

9. LEASING

The following table presents our lease balances as of March 31, 2020 and December 31, 2019:



In millions	Location in the Condensed Consolidated Balance Sheet	March 31, 2020			December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	362		$	391
Finance lease assets	Property, plant and equipment, net	47			38
Accumulated Amortization of Finance lease assets	Property, plant and equipment, net	(8		)	(5		)
Total leased assets		$	401		$	424
Liabilities
Current
Operating lease liabilities	Other current liabilities	$	88		$	91
Finance lease liabilities	Other current liabilities	13			10
Noncurrent
Operating lease liabilities	Operating lease liabilities	346			369
Finance lease liabilities	Other liabilities	28			25
Total lease liabilities		$	475		$	495

The following table presents our lease costs for operating and finance leases:



In millions	Three months ended March 31
In millions	2020		2019
Operating lease cost	$	32	$	35
Finance lease cost
Amortization of leased assets	3		—
Interest on lease liabilities	—		—
Short-Term lease cost	1		2
Variable lease cost	7		9
Total lease cost	$	43	$	46

The following table presents the supplemental cash flow information:



In millions	Three months ended March 31
In millions	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	30		$	32
Operating cash flows from finance leases	$	—		$	—
Financing cash flows from finance leases	$	3		$	—
Lease Assets Obtained in Exchange for Lease Obligations
Operating Leases	$	(2	)	$	12
Finance Leases	$	8		$	1



In millions	Operating Leases			Finance Leases
Remainder of 2020	$	88		$	10
2021	86			14
2022	64			13
2023	44			6
2024	38			—
Thereafter	272			—
Total lease payments	592			43
Less: Amount representing interest	(158		)	(2		)
Present value of lease liabilities	$	434		$	41

The following table presents the weighted average remaining lease term and interest rates:



	March 31, 2020		December 31, 2019
Weighted average lease term:
Operating leases	9.1 years		8.9 years
Finance leases	3.2 years		3.4 years
Weighted average interest rates:
Operating leases	6.39	%	6.42	%
Finance leases	4.15	%	3.72	%

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	The accompanying Condensed Consolidated Financial Statements have been prepared by NCR Corporation (NCR, the Company, we or us) without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments, unless otherwise disclosed) necessary for a fair statement of the consolidated results of operations, financial position, and cash flows for each period presented. The consolidated results for the interim periods are not necessarily indicative of results to be expected for the full year. The 2019 year-end Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (GAAP). These financial statements should be read in conjunction with NCR’s Form 10-K for the year ended December 31, 2019.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with 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 period reported. Actual results could differ from those estimates.
Evaluation of Subsequent Events	Evaluation of Subsequent Events The Company evaluated subsequent events through the date that our Condensed Consolidated Financial Statements were issued. Except as described within Note 17, Subsequent Events, no matters were identified that required adjustment of the Condensed Consolidated Financial Statements or additional disclosure.
Reclassifications	Reclassifications Certain prior-period amounts have been reclassified in the accompanying Condensed Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.
Remaining Performance Obligations	Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders for which products have not been delivered or services have not been performed. As of March 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.0 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 two elections that affect the value of remaining performance obligations described above. We do not disclose remaining performance obligations for Software as a Service (SaaS) contracts where variable consideration is directly allocated based on usage or when the original expected length is one year or less.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Issued In December 2019, the Financial Accounting Standards Board ("FASB") issued an accounting standards update with new guidance which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This accounting standards update also adds guidance to reduce complexity in certain areas, including recognizing measures for the accounting for income taxes. This accounting standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on our consolidated financial statements. Adopted In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. This accounting standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The adoption of this accounting standards update did not have a material effect on the Company's net income, cash flows or financial condition. In August 2018, the Financial Accounting Standards Board (FASB) issued an accounting standards update with new guidance on fair value measurement disclosure requirements that requires the disclosure of additions to and transfers into and out of Level 3 of the fair value hierarchy. This accounting standards update also requires disclosure about the uncertainty in measurement as of the reporting date. The new standard became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The adoption of this accounting standards update did not have a material impact on our financial statement disclosures. In August 2018, the FASB issued an accounting standards update related to accounting for implementation costs incurred in a cloud computing arrangement that is also a service contract. If a cloud computing arrangement also includes an internal-use software, an intangible asset is recognized, and a liability is recognized for any payments related to the software license. However, if a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract and any fees associated with the service are expensed as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this accounting standards update did not have a material effect on the Company's net income, cash flows or financial condition.
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.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

8. COMMITMENTS AND CONTINGENCIES

In the normal course of business, NCR 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, NCR 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 NCR or could have an impact on NCR's future operating results. The Company has reflected all liabilities when a loss is considered probable and reasonably estimable in the Condensed 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 Fox River and Kalamazoo River environmental matters and other matters discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in NCR’s Condensed 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.

Nashville Tornado On March 3, 2020, one of our Global Fulfillment Centers, operated with a third-party logistics partner in Mt. Juliet, Tennessee was severely impacted by tornadoes in the greater Nashville area. We maintain substantial property damage insurance coverage for this Global Fulfillment Center and have, and continue to, work closely with our insurance carrier and claims adjusters to ascertain the property damage. The property on site mainly consisted of raw materials and finished goods inventory, which totaled $151 million, as of the date of the tornado. The Company determined approximately $105 million of the inventory to be a total loss as of March 31, 2020 and as such was written-off with an offsetting insurance receivable recorded, which was included within other current assets in the Condensed Consolidated Balance Sheet with no net impact on cost of sales. The insurance receivable was based on the amount probable of recovery based on the terms of the insurance policy. The remaining $46 million of inventory requires further assessment to determine recoverability. Prior to March 31, 2020, the Company received $25 million as an advance draw from the insurance carrier for the damages sustained. Subsequent to the end of the quarter, we received an additional $40 million from the insurance carrier. Additionally, our insurance policy also provides for business interruption coverage, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. There have not been material other expenses or costs incurred for the three months ended March 31, 2020.

Boston Consulting Group On November 6, 2019, Boston Consulting Group, Inc., a former consultant for the Company, commenced a lawsuit against the Company in the United States District Court for the District of New York. The Complaint in the matter alleges the Company breached two consulting agreements and seeks in excess of $80 million and other compensatory damages and equitable relief. While the Company at this time is unable to make any predictions about the outcome of this case or estimate any possible liability, the Company believes the allegations of money owed are grossly overstated, and the Company intends to vigorously defend this lawsuit.

Environmental Matters NCR's facilities and operations are subject to a wide range of environmental protection laws, and NCR 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, NCR 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. Other than the Fox River matter, 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 NCR is one of eight entities that were formally notified by governmental and other entities, such as local Native American tribes, that they are PRPs 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 other Fox River PRPs that received notices include Appleton Papers Inc. (API; now known as Appvion, Inc.), P.H. Glatfelter Company ("Glatfelter"), Georgia-Pacific Consumer Products LP (GP, successor to Fort James Operating Company), and others. NCR 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. NCR sold its facilities in 1978 to API. The parties have also contended that NCR is responsible for PCB discharges from paper mills owned by other companies because NCR carbonless copy paper "broke" was allegedly purchased by those other mills as a raw material.

The United States Environmental Protection Agency (USEPA) and Wisconsin Department of Natural Resources (together, the Governments) developed clean-up plans for the upper and lower parts of the Fox River and for portions of the Bay of Green Bay. On November 13, 2007, the Governments issued a unilateral administrative order (the 2007 Order) under CERCLA to the eight original PRPs, requiring them to perform remedial work under the Governments’ clean-up plan for the lower parts of the river (operable units 2 through 5). In April 2009, NCR and API formed a limited liability company (the LLC), which entered into an agreement with an environmental remediation contractor to perform the work at the Fox River site. In-water dredging and remediation under the clean-up plan commenced shortly thereafter.

NCR and API, along with B.A.T Industries p.l.c. (BAT), share among themselves a portion of the cost of the Fox River clean-up and natural resource damages (NRD) based upon a 1998 agreement (the Cost Sharing Agreement), a 2005 arbitration award

(subsequently confirmed as a judgment), and a September 30, 2014 Funding Agreement (the Funding Agreement). The Cost Sharing Agreement and the arbitration resolved disputes that arose out of the Company's 1978 sale of its Fox River facilities to API. The Cost Sharing Agreement and arbitration award resulted in a 45% share for NCR of the first $75 million of such costs (a threshold that was reached in 2008), and a 40% share for amounts in excess of $75 million. The Funding Agreement arose out of a 2012 to 2014 arbitration dispute between NCR and API, and provides for regular, ongoing funding of NCR-incurred Fox River remediation costs via contributions, made to a new limited liability corporation created by the Funding Agreement, by BAT, API and, for 2014, API's indemnitor, Windward Prospects. The Funding Agreement creates an obligation on BAT and API to fund 50% of NCR’s Fox River remediation costs from October 1, 2014 forward; (API’s Fox River-related obligations under the Funding Agreement were fully satisfied in 2016); the Funding Agreement also provides NCR contractual avenues for payment of, via direct and third-party sources, (1) the difference between BAT’s and API’s 60% obligation under the Cost Sharing Agreement and arbitration award 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 NCR received under the Funding Agreement and the amount owed to it under the Cost Sharing Agreement and arbitration award for the period from April 2012 through September 2014. As of March 31, 2020 and December 31, 2019, the receivable under the Funding Agreement was approximately $53 million, respectively, and was included in other assets in the Condensed Consolidated Balance Sheet. The Company anticipates that it will collect sums related to the receivable in 2020 or later, likely after the remediation efforts related to the Fox River matter, described below, are complete. This receivable is not taken into account in calculating the Company’s Fox River net reserve.

The Company's litigations relating to contribution and enforcement claims concerning the Fox River have been concluded. A proposed consent decree settlement (the CD settlement) with respect to the contribution action (a case originally filed by NCR and API) and the government enforcement action (a case originally filed by the federal and state governments against several PRPs, including the Company) was successfully negotiated by NCR and the federal and state governments and was approved on August 22, 2017 by the federal district court in Wisconsin that had been presiding over those cases. A final order of dismissal as to the Company in the contribution and government enforcement actions was subsequently entered; one party, Glatfelter, had appealed the approval of the CD settlement. On January 3, 2019, the United States lodged a proposed consent decree with the Wisconsin court, reflecting a settlement reached by the United States, Wisconsin and Glatfelter with respect to Glatfelter’s Fox River liability under the government enforcement action; a component of that settlement was withdrawal of Glatfelter’s appeal opposing the Company’s CD settlement. On March 14, 2019, the Wisconsin court approved the Glatfelter consent decree, and on April 3, 2019, Glatfelter's appeal was dismissed.

The CD settlement has now resolved the remaining Fox River-related contribution and enforcement claims against the Company. The key components of the approved CD settlement include (1) the Company’s commitment to complete the remediation of the Fox River, which is now expected to be completed in 2020; (2) the Company’s conditional agreement to waive its contribution claims against the two remaining defendants in the case, GP and Glatfelter; (3) the Company’s agreement not to appeal the trial court’s decision on divisibility of harm; (4) the Governments’ agreement to include in the settlement so-called “contribution protection” in the Company’s favor as to GP’s and Glatfelter’s contribution claims against the Company, the effect of which will be to extinguish those claims; (5) the Governments’ agreement not to pursue the Company for the Governments’ past oversight costs; and (6) the Governments’ agreement to exercise prosecutorial discretion in pursuing other parties for future oversight costs and long-term monitoring and maintenance, with the Company retaining so-called “backstop” liability in the event that the other parties fail to pay future oversight costs or to perform long-term monitoring and maintenance. Additionally, although certain state law claims by GP and Glatfelter against the Company may not be affected directly by the CD settlement, the CD settlement provides that the Company’s contribution claims against those two parties will revive if those parties attempt to assert any claims against the Company relating to the Fox River, including any state law claims.

In the quarter ending September 30, 2017, the remediation general contractor commenced an arbitration against the LLC, in a dispute over contract interpretation. The hearing on this matter was completed in June 2019, and the parties submitted post-trial briefs in August 2019. The amounts claimed by the contractor range from approximately $46 million to approximately $53 million; the Company disputed the claims and contested them vigorously during the hearing. In November 2019, having rejected substantial portions of the claims, the arbitration panel awarded the contractor $10 million. The Company’s indemnitors and co-obligors, described below, are expected to bear responsibility for the majority of any award, with the Company’s share of approximately one-fourth of such award.

With respect to the Company’s prior dispute with API, which was generally superseded by the Funding Agreement, the Company received timely payments as they came due under the Funding Agreement. Although API filed for bankruptcy protection in October 2017, it had made all of the payments to the Company in connection with the Fox River that are required of it by the Funding Agreement.

NCR's eventual remediation liability, followed by long-term monitoring expected to be performed by others, will depend on a number of factors. In establishing the reserve, NCR attempts to estimate a range of reasonably possible outcomes for each of these

factors, although each range is itself uncertain. NCR uses its best estimate within the range, if that is possible. Where there is a range of equally possible outcomes, and there is no amount within that range that is considered to be a better estimate than any other amount, NCR uses the low end of the range. The significant factors include: (1) the total remaining clean-up costs, including the costs associated with decommissioning the site, the expected cost impact of which is expected to be neutral or non-material to the Company, including long-term monitoring following completion of the clean-up, and what parties are assigned to discharge the post-clean-up tasks (as noted, the Company no longer expects to bear long-term monitoring costs); (2) total NRD for the site and the share that NCR will bear (which is now resolved as to the Company); (3) the share of clean-up costs that NCR will bear (which is resolved under the CD settlement); (4) NCR's transaction and litigation costs to defend itself to the extent additional litigation is required with respect to claims brought by the general contractor; and (5) the share of NCR's payments that BAT will bear (which is governed by the Cost Sharing Agreement and the Funding Agreement, BAT has made all of the payments requested of it, and as discussed above; API is in bankruptcy and is not presumed likely to bear further shares of NCR’s payments). With respect to NRD, in connection with a certain settlement entered into by other PRPs in 2015, the Government withdrew the NRD claims it had prosecuted on behalf of NRD trustees, including those NRD claims asserted against the Company.

Calculation of the Company's Fox River reserve is subject to several complexities, and it is possible there could be additional changes to some elements of the reserve over upcoming periods, although the Company is unable to predict or estimate such changes at this time. There can be no assurance that the clean-up and related expenditures and liabilities will not have a material effect on NCR's capital expenditures, earnings, financial condition, cash flows, or competitive position. As of March 31, 2020, the gross reserve for the Fox River matter was approximately $3 million, compared to $5 million as of December 31, 2019. As of March 31, 2020, the net reserve for the Fox River matter was approximately $21 million, compared to $16 million as of December 31, 2019. NCR contributes to the LLC to fund remediation activities and generally, by contract, has funded certain amounts of remediation expenses in advance. As of March 31, 2020 and December 31, 2019, approximately zero remained from this funding. NCR's reserve for the Fox River matter is reduced as the LLC makes payments to the remediation contractor and other vendors with respect to remediation activities.

Under a 1996 agreement, AT&T Corp. (AT&T) and Nokia (as the successor to Lucent Technologies and Alcatel-Lucent USA) are responsible severally (not jointly) for indemnifying NCR for certain portions of the amounts paid by NCR for the Fox River matter over a defined threshold and subject to certain offsets. (The agreement governs certain aspects of AT&T's divestiture of NCR 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.

Kalamazoo River In November 2010, USEPA issued a "general notice letter" to NCR 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 NCR 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 Georgia-Pacific (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 NCR 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). NCR preserved its right to appeal the September 2013 decision.

In the 2013 decision, the Court did not determine NCR’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); NCR 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 are 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 as of March 2020.

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, which will resolve all litigation associated with the river clean-up, including the Sixth Circuit appeal when approved. Upon approval, the Consent Decree will require the Company to pay GP its 40% share of past costs, to pay the USEPA and state agencies their past and future administrative costs, to dismiss its Sixth Circuit appeal, and 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 Consent Decree was subject to a public comment period which ended February 18, 2020, and the Company is still awaiting approval of the Consent Decree.

NCR expects to have claims against BAT and API under the Funding Agreement, discussed above for the Kalamazoo River remediation expenses. API filed for bankruptcy protection in October 2017, and thus payment of its potential share under the Funding Agreement for so-called “future sites,” which would include the Kalamazoo River site, may be at risk, but as liability under the Cost Sharing Agreement and the Funding Agreement is joint and several, the bankruptcy is not anticipated to affect the Company’s ability to seek that amount from BAT. 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 agreement referenced above in the Fox River discussion.

As of March 31, 2020 and December 31, 2019, the total reserve for Kalamazoo was $81 million; that figure 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. 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 NCR’s potential liability remains subject to many uncertainties, notwithstanding the settlement of this matter and related Consent Decree noted above, particularly inasmuch 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 the period ended March 31, 2020, NCR had disposed of more than a third of its lower-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. Based on communications with the agency, the earliest that high-concentration wastes can be disposed of will be in the second half of 2020, with final deadlines for various of the government-constructed disposal sites currently set for 2022, 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 has adjusted its existing reserve for the matter to take into account this cost estimate, and that reserve as of March 31, 2020 is $20 million compared to $19 million at December 31, 2019. 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.

Environmental-Related Insurance Recoveries In connection with the Fox River and other environmental sites, through March 31, 2020, NCR has received a combined gross total of approximately $202 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, owing to considerations under applicable Michigan law. 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. NCR 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 NCR's Condensed 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 Condensed 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, NCR 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, NCR 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. NCR believes the likelihood of having to perform under any such guarantee is remote. As of March 31, 2020 and December 31, 2019, NCR had no material obligations related to such guarantees, and therefore its Condensed Consolidated Financial Statements do not have any associated liability balance.

NCR 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.

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.

The Company recorded the activity related to the warranty reserve for the three months ended March 31 as follows:



In millions	2020			2019
Warranty reserve liability
Beginning balance as of January 1	$	21		$	26
Accruals for warranties issued	8			8
Settlements (in cash or in kind)	(11		)	(10		)
Ending balance as of March 31	$	18		$	24

In addition, NCR provides its customers with certain indemnification rights. In general, NCR agrees to indemnify the customer if a third party asserts patent or other infringement on the part of its customers for its use of the Company’s products subject to certain conditions that are generally standard within the Company’s industries. On limited occasions the Company will undertake additional indemnification obligations for business reasons. From time to time, NCR 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 and the specific facts and circumstances involved with each particular agreement. The Company has not recorded a liability in connection with these indemnifications, and no current indemnification instance is material to the Company’s financial position. Historically, payments made by the Company under these types of agreements have not had a material effect on the Company’s consolidated financial condition, results of operations or cash flows.

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 NCR's key transaction processing activities and functions are performed.

Accumulated Other Comprehensive Income (Loss) (AOCI)

3 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss) [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI)

14. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI)

Changes in AOCI by Component



In millions	Currency Translation Adjustments			Changes in Employee Benefit Plans			Changes in Fair Value of Effective Cash Flow Hedges			Total
Balance as of December 31, 2019	$	(260	)	$	(10	)	$	1		$	(269	)
Other comprehensive income (loss) before reclassifications	(60		)	—			2			(58		)
Amounts reclassified from AOCI	—			(1		)	(1		)	(2		)
Net current period other comprehensive (loss) income	(60		)	(1		)	1			(60		)
Balance as of March 31, 2020	$	(320	)	$	(11	)	$	2		$	(329	)

Reclassifications Out of AOCI



		For the three months ended March 31, 2020
		Employee Benefit Plans
In millions		Amortization of Actuarial Loss (Gain)			Amortization of Prior Service Benefit			Effective Cash Flow Hedge Loss (Gain)			Total
Affected line in Condensed Consolidated Statement of Operations:
	Cost of products	$	—		$	—		$	(1	)	$	(1	)
	Cost of services	(1		)	(1		)	—			(2		)
	Total before tax	$	(1	)	$	(1	)	$	(1	)	$	(3	)
	Tax expense										1
	Total reclassifications, net of tax										$	(2	)



		For the three months ended March 31, 2019
		Employee Benefit Plans
In millions		Amortization of Actuarial Loss (Gain)			Amortization of Prior Service Benefit			Effective Cash Flow Hedge Loss (Gain)			Total
Affected line in Condensed Consolidated Statement of Operations:
	Cost of products	$	—		$	—		$	(1	)	$	(1	)
	Cost of services	(1		)	(2		)	—			(3		)
	Total before tax	$	(1	)	$	(2	)	$	(1	)	$	(4	)
	Tax expense										—
	Total reclassifications, net of tax										$	(4	)

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 1,214	$ 509
Accounts receivable, net	1,353	1,490
Inventories	747	784
Other current assets	463	361
Total current assets	3,777	3,144
Property, plant and equipment, net	399	413
Goodwill	2,821	2,832
Intangibles, net	580	607
Operating lease assets	362	391
Prepaid pension cost	176	178
Deferred Income Taxes and Other Assets, Noncurrent	808	821
Other assets	632	601
Total assets	9,555	8,987
Current liabilities
Short-term borrowings	304	282
Accounts payable	790	840
Payroll and benefits liabilities	186	308
Contract with Customer, Liability, Current	616	502
Other current liabilities	510	606
Total current liabilities	2,406	2,538
Long-term debt	4,081	3,277
Pension and indemnity plan liabilities	855	858
Postretirement and postemployment benefits liabilities	112	111
Income tax accruals	89	92
Operating lease liabilities	346	369
Other liabilities	244	240
Total liabilities	8,133	7,485
Commitments and Contingencies (Note 8)
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.4 and 0.4 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively; redemption amount and liquidation preference of $399 as of March 31, 2020 and December 31, 2019, respectively	395	395
Stockholders’ equity
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	0	0
Common stock: par value $0.01 per share, 500.0 shares authorized, 127.3 and 127.7 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	1	1
Paid-in capital	275	312
Retained earnings	1,077	1,060
Accumulated other comprehensive loss	(329)	(269)
Total NCR stockholders’ equity	1,024	1,104
Noncontrolling interests in subsidiaries	3	3
Total stockholders’ equity	1,027	1,107
Total liabilities and stockholders’ equity	$ 9,555	$ 8,987

Employee Benefit Plans - Pension Plan (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
U.S. Pension Benefits
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Net service cost	$ 0	$ 0
Interest cost	13	16
Expected return on plan assets	(9)	(10)
Net periodic benefit cost (income)	4	6
International Pension Benefits
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Net service cost	1	2
Interest cost	4	5
Expected return on plan assets	(7)	(8)
Net periodic benefit cost (income)	(2)	(1)
Total Pension Benefits
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Net service cost	1	2
Interest cost	17	21
Expected return on plan assets	(16)	(18)
Net periodic benefit cost (income)	$ 2	$ 5

Derivatives and Hedging Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative	$ 3	$ 1
Foreign exchange contracts \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative	3	1
Foreign exchange contracts \| Cash Flow Hedging \| Cost of products
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative	$ (1)	$ (1)

Series A Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Sep. 18, 2019	Mar. 17, 2017	Dec. 04, 2015
Class of Stock [Line Items]
Series A convertible preferred stock, issued (in shares)	400,000		400,000
Secondary offering by the preferred shareholders					342,000
Redeemed Shares of Preferred Stock					90,000
Repurchase price per share of common stock upon conversion					$ 48.47
Series A Convertible Preferred Stock
Class of Stock [Line Items]
Series A convertible preferred stock, issued (in shares)						820,000
Aggregate purchase price of preferred shares						$ 820
Preferred stock, par value (in dollars per share)						$ 1,000
Direct issuance expenses						$ 26
Dividend rate						5.50%
Conversion price per share at option of holder (in dollars per share)						$ 30.00
Conversion rate per preferred share (in shares)	33.333
Redeemed Shares of Preferred Stock				512,221
Blackstone Shares Converted into Common Shares				237,673
Cash Paid for the Redemption of Preferred Stock				$ 302
Preferred Shares Converted into Common Stock in Redemption			9,160,000
Dividends, Preferred Stock, Cash	$ 6
Dividends, preferred stock, paid-in-kind		$ 12
Financial instruments subject to redemption, settlement terms, maximum number of shares (in shares)	13,200,000		13,300,000

Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

EARNINGS PER SHARE

11. EARNINGS PER SHARE

Basic earnings per share (EPS) is calculated by dividing net income or loss attributable to NCR, 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 adjust the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared), deemed dividends, accretion or decretion, redemption or induced conversion on our Series A Convertible Preferred Stock. We adjust the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares related to the Series A Convertible Preferred Stock and stock-based compensation plans.

The holders of Series A Convertible Preferred Stock, unvested restricted stock units and stock options do not have nonforfeitable 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 6, Stock Compensation Plans for share information on NCR’s stock compensation plans.

The components of basic earnings per share are as follows:



In millions, except per share amounts	Three months ended March 31
In millions, except per share amounts	2020			2019
Numerator:
Income from continuing operations	$	23		$	37
Dividends on Series A Convertible Preferred Stock	(6		)	(13		)
Income from continuing operations attributable to NCR common stockholders	17			24
Loss from discontinued operations, net of tax	—			—
Net income attributable to NCR common stockholders	$	17		$	24

Denominator:
Basic weighted average number of shares outstanding	128.0			119.3

Basic earnings per share:
From continuing operations	$	0.13		$	0.20
From discontinued operations	—			—
Total basic earnings per share	$	0.13		$	0.20

The components of diluted earnings per share are as follows:



In millions, except per share amounts	Three months ended March 31
In millions, except per share amounts	2020			2019
Numerator:
Income from continuing operations	$	23		$	37
Dividends on Series A Convertible Preferred Stock	(6		)	(13		)
Income from continuing operations attributable to NCR common stockholders	17			24
Loss from discontinued operations, net of tax	—			—
Net income attributable to NCR common stockholders	$	17		$	24

Denominator:
Basic weighted average number of shares outstanding	128.0			119.3
Dilutive effect of restricted stock units and stock options	2.5			2.9
Weighted average diluted shares	130.5			122.2

Diluted earnings per share:
From continuing operations	$	0.13		$	0.20
From discontinued operations	—			—
Total diluted earnings per share	$	0.13		$	0.20

For the three months ended March 31, 2020, shares related to the as-if converted Series A Convertible Preferred Stock of 13.2 million were excluded from the diluted share count because their effect would have been anti-dilutive. For the three months ended March 31, 2020, weighted average restricted stock units and stock options of 7.8 million were excluded from the diluted share count because their effect would have been anti-dilutive.

For the three months ended March 31, 2019, shares related to the as-if converted Series A Convertible Preferred Stock of 29.2 million were excluded from the diluted share count because their effect would have been anti-dilutive. For the three months ended March 31, 2019, weighted average restricted stock units and stock options of 4.5 million were excluded from the diluted share count because their effect would have been anti-dilutive.

Employee Benefit Plans - Postemployment Plan (Details) - Postemployment Retirement Benefits [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Net service cost	$ 6	$ 14
Interest cost	0	1
Amortization of prior service benefit	0	(1)
Amortization of actuarial gain	(1)	(1)
Net benefit cost	$ 5	$ 13

Segment Information and Concentrations (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of Revenue and Operating Income by Segment

The following table presents revenue and operating income by segment:



In millions	Three months ended March 31
In millions	2020			2019
Revenue by segment
Banking	$	763		$	758
Retail	472			511
Hospitality	169			193
Other	99			74
Consolidated revenue	$	1,503		$	1,536
Operating income by segment
Banking	$	103		$	95
Retail	5			26
Hospitality	(9		)	16
Other	5			10
Subtotal - segment operating income	104			147
Other adjustments ⁽¹⁾	27			47
Income from operations	$	77		$	100


⁽¹⁾	The following table presents the other adjustments for NCR:



In millions	Three months ended March 31
In millions	2020		2019
Transformation and restructuring costs	$	5	$	26
Acquisition-related amortization of intangible assets	22		21
Total other adjustments	$	27	$	47

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

The following table presents revenue by geography for NCR:



In millions	Three months ended March 31
In millions	2020		2019
Americas	$	892	$	920
Europe, Middle East and Africa (EMEA)	403		419
Asia Pacific (APJ)	208		197
Total revenue	$	1,503	$	1,536

Schedule of Revenues from Products and Services

The following tables present revenue from products and services for NCR:



In millions	Three months ended March 31
In millions	2020		2019
Product revenue	$	474	$	539
Professional services and installation services revenue	227		238
Recurring revenue, including maintenance, cloud revenue and payments	802		759
Total revenue	$	1,503	$	1,536



In millions	Three months ended March 31
In millions	2020		2019
Software	$	474	$	467
Services	636		585
Hardware	393		484
Total revenue	$	1,503	$	1,536

Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying Condensed Consolidated Financial Statements have been prepared by NCR Corporation (NCR, the Company, we or us) without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments, unless otherwise disclosed) necessary for a fair statement of the consolidated results of operations, financial position, and cash flows for each period presented. The consolidated results for the interim periods are not necessarily indicative of results to be expected for the full year. The 2019 year-end Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (GAAP). These financial statements should be read in conjunction with NCR’s Form 10-K for the year ended December 31, 2019.

Use of Estimates The preparation of financial statements in accordance with 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 period reported. Actual results could differ from those estimates.

Evaluation of Subsequent Events The Company evaluated subsequent events through the date that our Condensed Consolidated Financial Statements were issued. Except as described within Note 17, Subsequent Events, no matters were identified that required adjustment of the Condensed Consolidated Financial Statements or additional disclosure.

Reclassifications Certain prior-period amounts have been reclassified in the accompanying Condensed Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Contract Assets and Liabilities The following table presents the net contract asset and contract liability balances as of March 31, 2020 and December 31, 2019.



In millions	Location in the Condensed Consolidated Balance Sheet	March 31, 2020		December 31, 2019
Current portion of contract assets	Other current assets	$	9	$	9
Current portion of contract liabilities	Contract liabilities	$	616	$	502
Non-current portion of contract liabilities	Other liabilities	$	75	$	81

During the three months ended March 31, 2020, the Company recognized $198 million in revenue that was included in contract liabilities as of December 31, 2019.

Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders for which products have not been delivered or services have not been performed. As of March 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.0 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 two elections that affect the value of remaining performance obligations described above. We do not disclose remaining performance obligations for Software as a Service (SaaS) contracts where variable consideration is directly allocated based on usage or when the original expected length is one year or less.

Recent Accounting Pronouncements

Issued

In December 2019, the Financial Accounting Standards Board ("FASB") issued an accounting standards update with new guidance which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This accounting standards update also adds guidance to reduce complexity in certain areas,

including recognizing measures for the accounting for income taxes. This accounting standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on our consolidated financial statements.

Adopted

In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. This accounting standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The adoption of this accounting standards update did not have a material effect on the Company's net income, cash flows or financial condition.

In August 2018, the Financial Accounting Standards Board (FASB) issued an accounting standards update with new guidance on fair value measurement disclosure requirements that requires the disclosure of additions to and transfers into and out of Level 3 of the fair value hierarchy. This accounting standards update also requires disclosure about the uncertainty in measurement as of the reporting date. The new standard became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The adoption of this accounting standards update did not have a material impact on our financial statement disclosures.

In August 2018, the FASB issued an accounting standards update related to accounting for implementation costs incurred in a cloud computing arrangement that is also a service contract. If a cloud computing arrangement also includes an internal-use software, an intangible asset is recognized, and a liability is recognized for any payments related to the software license. However, if a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract and any fees associated with the service are expensed as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this accounting standards update did not have a material effect on the Company's net income, cash flows or financial condition.

Goodwill and Long-Lived Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND LONG-LIVED ASSETS

3. GOODWILL AND LONG-LIVED ASSETS

Hospitality Goodwill Assessment In addition to our annual goodwill impairment test performed in the fourth quarter, we perform interim impairment tests for long-lived and intangible assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amount of the asset (group) may not be recoverable.

Late in the quarter ended March 31, 2020, there was significant market volatility driven by the novel coronavirus (COVID-19) pandemic which drove uncertainty around our full year revenue and operating income expectations. As a result, we withdrew our full year outlook for 2020 on March 31, 2020, which was previously provided during our fourth quarter 2019 earnings conference call on February 11, 2020. Given the rapidly changing environment, we considered if there was an indication the carrying value of net assets were in excess of the fair value for each of our reporting units. This consideration included the expected impacts to the current year cash flows, the potential impacts to future cash flows as well as the excess of the fair value over the carrying value from the prior year annual assessment. As a result, we determined there was an indication that the carrying value of the net assets assigned to the Hospitality reporting unit may not be recoverable.

The fair value of the Hospitality reporting unit was 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 discounted cash flow model to forecast operating cash flows, including revenue growth, operating income margin and discount rate. The market approach is performed using the Guideline Public Companies (GPC) method which is based on earnings multiple data of peer companies.

For the Hospitality reporting unit, the Company expects the COVID-19 pandemic to have a significant impact to our customers in the table service market, travel and entertainment market and small and medium business market in the near term. The Company expects the long term growth strategy to remain intact with previous growth expectations returning in 2021. Based on these assumptions, the Company determined the fair value of the Hospitality segment continues to be greater than the carrying value and therefore, no impairment existed as of March 31, 2020. However, if the actual results or the anticipated timing of the recovery from the COVID-19 pandemic differ from our expectations for the Hospitality, or any, reporting unit, there is a possibility we would have to perform another interim impairment test in 2020, which could lead to an impairment of goodwill or other assets.

Goodwill by Segment The carrying amounts of goodwill by segment as of March 31, 2020 and December 31, 2019 are included in the table below. Foreign currency fluctuations are included within other adjustments.



	December 31, 2019														March 31, 2020
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment		Other			Goodwill		Accumulated Impairment Losses			Total
Banking	$	1,774	$	(101	)	$	1,673	$	—	$	—	$	(3	)	$	1,771	$	(101	)	$	1,670
Retail	638		(34		)	604		—		—		(9		)	629		(34		)	595
Hospitality	402		(23		)	379		3		—		(2		)	403		(23		)	380
Other	187		(11		)	176		—		—		—			187		(11		)	176
Total goodwill	$	3,001	$	(169	)	$	2,832	$	3	$	—	$	(14	)	$	2,990	$	(169	)	$	2,821

Identifiable Intangible Assets NCR's purchased intangible assets, reported in intangibles, net in the Condensed Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below.



	Amortization Period (in Years)	March 31, 2020					December 31, 2019
In millions	Amortization Period (in Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Identifiable intangible assets
Reseller & customer relationships	1 - 20	$	735	$	(284	)	$	735	$	(270	)
Intellectual property	2 - 8	524		(403		)	529		(397		)
Customer contracts	8	89		(89		)	89		(89		)
Tradenames	1 - 10	78		(70		)	78		(68		)
Total identifiable intangible assets		$	1,426	$	(846	)	$	1,431	$	(824	)

The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is:



	For the years ended December 31 (estimated)
In millions	2021		2022		2023		2024		2025
Amortization expense	$	73	$	68	$	66	$	59	$	51

Employee Benefit Plans - Postretirement Plan (Details) - Postretirement Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 0	$ 0
Amortization of prior service benefit	(1)	(1)
Net periodic benefit cost (income)	$ (1)	$ (1)

Goodwill and Long-Lived Assets - Goodwill by Segments (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill [Roll Forward]
Goodwill	$ 3,001
Accumulated Impairment Losses	(169)
Total	2,832
Additions	3
Impairment	0
Other	(14)
Goodwill	2,990
Accumulated Impairment Losses	(169)
Total	2,821
Banking
Goodwill [Roll Forward]
Goodwill	1,774
Accumulated Impairment Losses	(101)
Total	1,673
Additions	0
Impairment	0
Other	(3)
Goodwill	1,771
Accumulated Impairment Losses	(101)
Total	1,670
Retail
Goodwill [Roll Forward]
Goodwill	638
Accumulated Impairment Losses	(34)
Total	604
Additions	0
Impairment	0
Other	(9)
Goodwill	629
Accumulated Impairment Losses	(34)
Total	595
Hospitality
Goodwill [Roll Forward]
Goodwill	402
Accumulated Impairment Losses	(23)
Total	379
Additions	3
Impairment	0
Other	(2)
Goodwill	403
Accumulated Impairment Losses	(23)
Total	380
Other
Goodwill [Roll Forward]
Goodwill	187
Accumulated Impairment Losses	(11)
Total	176
Additions	0
Impairment	0
Other	0
Goodwill	187
Accumulated Impairment Losses	(11)
Total	$ 176

Goodwill and Long-Lived Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill by Segment

The carrying amounts of goodwill by segment as of March 31, 2020 and December 31, 2019 are included in the table below. Foreign currency fluctuations are included within other adjustments.



	December 31, 2019														March 31, 2020
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment		Other			Goodwill		Accumulated Impairment Losses			Total
Banking	$	1,774	$	(101	)	$	1,673	$	—	$	—	$	(3	)	$	1,771	$	(101	)	$	1,670
Retail	638		(34		)	604		—		—		(9		)	629		(34		)	595
Hospitality	402		(23		)	379		3		—		(2		)	403		(23		)	380
Other	187		(11		)	176		—		—		—			187		(11		)	176
Total goodwill	$	3,001	$	(169	)	$	2,832	$	3	$	—	$	(14	)	$	2,990	$	(169	)	$	2,821

Schedule of Purchased Intangible Assets

NCR's purchased intangible assets, reported in intangibles, net in the Condensed Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below.



	Amortization Period (in Years)	March 31, 2020					December 31, 2019
In millions	Amortization Period (in Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Identifiable intangible assets
Reseller & customer relationships	1 - 20	$	735	$	(284	)	$	735	$	(270	)
Intellectual property	2 - 8	524		(403		)	529		(397		)
Customer contracts	8	89		(89		)	89		(89		)
Tradenames	1 - 10	78		(70		)	78		(68		)
Total identifiable intangible assets		$	1,426	$	(846	)	$	1,431	$	(824	)

Schedule of Aggregate Amortization Expense

The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is:



	For the years ended December 31 (estimated)
In millions	2021		2022		2023		2024		2025
Amortization expense	$	73	$	68	$	66	$	59	$	51

Stock Compensation Plans - Valuation Assumptions Used for Stock Options (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.46%	2.50%
Expected volatility	33.38%	34.79%
Expected holding period (years)	3 years 8 months 12 days	3 years 10 months 24 days

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of Net Contract Assets and Contract Liabilities Balances

The following table presents the net contract asset and contract liability balances as of March 31, 2020 and December 31, 2019.



In millions	Location in the Condensed Consolidated Balance Sheet	March 31, 2020		December 31, 2019
Current portion of contract assets	Other current assets	$	9	$	9
Current portion of contract liabilities	Contract liabilities	$	616	$	502
Non-current portion of contract liabilities	Other liabilities	$	75	$	81

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Cash Flows [Abstract]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash at end of period	$ 1,265	$ 486
Operating activities
Net income (loss)	24	38
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	0	0
Depreciation and amortization	87	81
Stock-based compensation expense	25	23
Deferred income taxes	5	(5)
Goodwill and Long-Lived Intangible Asset Impairment	1	0
Gain on sale of property, plant and equipment	(2)	0
Changes in assets and liabilities:
Receivables	137	21
Inventories	(48)	(68)
Current payables and accrued expenses	(183)	(192)
Increase (Decrease) in Contract with Customer, Liability	108	100
Employee benefit plans	(3)	(4)
Other assets and liabilities	(90)	(10)
Net cash provided by operating activities	61	(16)
Investing activities
Expenditures for property, plant and equipment	(10)	(22)
Proceeds from sale of property, plant and equipment	7	0
Additions to capitalized software	(69)	(43)
Business acquisitions, net	(26)	(6)
Net change in funds held for clients - investing	0	0
Other investing activities, net	0	3
Net Cash Provided by (Used in) Investing Activities	(98)	(68)
Financing activities
Short term borrowings, net	3	7
Payments on term credit facilities	(2)	(17)
Payments on revolving credit facilities	(573)	(375)
Borrowings on revolving credit facilities	1,397	430
Payments of Debt Issuance Costs	(1)	0
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	(6)	0
Repurchases of Common Stock	(41)	0
Proceeds from employee stock plans	3	4
Tax withholding payments on behalf of employees	(24)	(13)
Increase (Decrease) in Client Funds Held	12	17
Proceeds from (Payments for) Other Financing Activities	(3)	0
Net Cash Provided by (Used in) Financing Activities	765	53
Cash flows from discontinued operations
Net cash provided by (used in) operating activities	3	(6)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14)	1
Increase (decrease) in cash, cash equivalents, and restricted cash	717	(36)
Cash, cash equivalents and restricted cash at beginning of period	548	522
Cash, cash equivalents and restricted cash at end of period	$ 1,265	$ 486

Condensed Consolidating Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Consolidating Supplemental Guarantor Information [Abstract]

Schedule of Condensed Consolidating Supplemental Guarantor Information



Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the three months ended March 31, 2020

In millions	Parent Issuer			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	211		$	1	$	313		$	(51	)	$	474
Service revenue	547			1		481			—			1,029
Total revenue	758			2		794			(51		)	1,503
Cost of products	177			—		265			(51		)	391
Cost of services	389			1		325			—			715
Selling, general and administrative expenses	176			—		79			—			255
Research and development expenses	33			—		32			—			65
Total operating expenses	775			1		701			(51		)	1,426
Income (loss) from operations	(17		)	1		93			—			77
Interest expense	(48		)	—		(3		)	1			(50		)
Other (expense) income, net	5			—		(6		)	(1		)	(2		)
Income (loss) from continuing operations before income taxes	(60		)	1		84			—			25
Income tax expense (benefit)	(7		)	1		7			—			1
Income (loss) from continuing operations before earnings in subsidiaries	(53		)	—		77			—			24
Equity in earnings of consolidated subsidiaries	76			74		—			(150		)	—
Income (loss) from continuing operations	23			74		77			(150		)	24
Income (loss) from discontinued operations, net of tax	—			—		—			—			—
Net income (loss)	$	23		$	74	$	77		$	(150	)	$	24
Net income (loss) attributable to noncontrolling interests	—			—		1			—			1
Net income (loss) attributable to NCR	$	23		$	74	$	76		$	(150	)	$	23
Total comprehensive income (loss)	(37		)	15		15			(30		)	(37		)
Less comprehensive income (loss) attributable to noncontrolling interests	—			—		—			—			—
Comprehensive income (loss) attributable to NCR common stockholders	$	(37	)	$	15	$	15		$	(30	)	$	(37	)



Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
For the three months ended March 31, 2019

In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Product revenue	$	273		$	2		$	310		$	(46	)	$	539
Service revenue	523			2			472			—			997
Total revenue	796			4			782			(46		)	1,536
Cost of products	246			—			253			(46		)	453
Cost of services	363			1			308			—			672
Selling, general and administrative expenses	140			—			112			—			252
Research and development expenses	33			—			26			—			59
Total operating expenses	782			1			699			(46		)	1,436
Income (loss) from operations	14			3			83			—			100
Interest expense	(43		)	—			(5		)	3			(45		)
Other (expense) income, net	(13		)	2			6			(3		)	(8		)
Income (loss) from continuing operations before income taxes	(42		)	5			84			—			47
Income tax expense (benefit)	49			(1		)	(39		)	—			9
Income (loss) from continuing operations before earnings in subsidiaries	(91		)	6			123			—			38
Equity in earnings of consolidated subsidiaries	128			97			—			(225		)	—
Income (loss) from continuing operations	37			103			123			(225		)	38
Income (loss) from discontinued operations, net of tax	—			—			—			—			—
Net income (loss)	$	37		$	103		$	123		$	(225	)	$	38
Net income (loss) attributable to noncontrolling interests	—			—			1			—			1
Net income (loss) attributable to NCR	$	37		$	103		$	122		$	(225	)	$	37
Total comprehensive income (loss)	53			120			138			(257		)	54
Less comprehensive income (loss) attributable to noncontrolling interests	—			—			1			—			1
Comprehensive income (loss) attributable to NCR common stockholders	$	53		$	120		$	137		$	(257	)	$	53



Condensed Consolidating Balance Sheet
March 31, 2020

In millions	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	945	$	3	$	266	$	—		$	1,214
Accounts receivable, net	77		1		1,275		—			1,353
Inventories	236		1		510		—			747
Due from affiliates	853		2,218		1,794		(4,865		)	—
Other current assets	220		1		242		—			463
Total current assets	2,331		2,224		4,087		(4,865		)	3,777
Property, plant and equipment, net	265		—		134		—			399
Goodwill	2,186		—		635		—			2,821
Intangibles, net	456		—		124		—			580
Operating lease assets	238		—		124		—			362
Prepaid pension cost	—		—		176		—			176
Deferred income taxes	331		2		475		—			808
Investments in subsidiaries	4,119		3,958		—		(8,077		)	—
Due from affiliates	16		1		74		(91		)	—
Other assets	563		1		68		—			632
Total assets	$	10,505	$	6,186	$	5,897	$	(13,033	)	$	9,555

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	9	$	—	$	295	$	—		$	304
Accounts payable	357		—		433		—			790
Payroll and benefits liabilities	88		—		98		—			186
Contract liabilities	336		1		279		—			616
Due to affiliates	2,963		109		1,793		(4,865		)	—
Other current liabilities	218		1		291		—			510
Total current liabilities	3,971		111		3,189		(4,865		)	2,406
Long-term debt	4,078		—		3		—			4,081
Pension and indemnity plan liabilities	590		—		265		—			855
Postretirement and postemployment benefits liabilities	16		3		93		—			112
Income tax accruals	30		—		59		—			89
Due to affiliates	—		74		17		(91		)	—
Operating lease liabilities	269		—		77		—			346
Other liabilities	132		—		112		—			244
Total liabilities	9,086		188		3,815		(4,956		)	8,133
Redeemable noncontrolling interest	—		—		—		—			—
Series A convertible preferred stock	395		—		—		—			395
Stockholders’ equity
Total NCR stockholders’ equity	1,024		5,998		2,079		(8,077		)	1,024
Noncontrolling interests in subsidiaries	—		—		3		—			3
Total stockholders’ equity	1,024		5,998		2,082		(8,077		)	1,027
Total liabilities and stockholders’ equity	$	10,505	$	6,186	$	5,897	$	(13,033	)	$	9,555



Condensed Consolidating Balance Sheet
December 31, 2019

In millions	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	15	$	3	491		$	—		$	509
Accounts receivable, net	54		1		1,435		—			1,490
Inventories	315		1		468		—			784
Due from affiliates	909		2,217		531		(3,657		)	—
Other current assets	122		1		238		—			361
Total current assets	1,415		2,223		3,163		(3,657		)	3,144
Property, plant and equipment, net	280		—		133		—			413
Goodwill	2,183		—		649		—			2,832
Intangibles, net	471		—		136		—			607
Operating lease assets	254		—		137		—			391
Prepaid pension cost	—		—		178		—			178
Deferred income taxes	335		2		484		—			821
Investments in subsidiaries	4,118		3,938		—		(8,056		)	—
Due from affiliates	16		1		74		(91		)	—
Other assets	527		1		73		—			601
Total assets	$	9,599	$	6,165	$	5,027	$	(11,804	)	$	8,987

Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	8	$	—	$	274	$	—		$	282
Accounts payable	427		—		413		—			840
Payroll and benefits liabilities	188		—		120		—			308
Contract liabilities	245		1		256		—			502
Due to affiliates	2,730		108		819		(3,657		)	—
Other current liabilities	261		1		344		—			606
Total current liabilities	3,859		110		2,226		(3,657		)	2,538
Long-term debt	3,199		—		78		—			3,277
Pension and indemnity plan liabilities	586		—		272		—			858
Postretirement and postemployment benefits liabilities	17		3		91		—			111
Income tax accruals	29		—		63		—			92
Due to affiliates	—		74		17		(91		)	—
Operating lease liabilities	282		—		87		—			369
Other liabilities	128		—		112		—			240
Total liabilities	8,100		187		2,946		(3,748		)	7,485
Redeemable noncontrolling interest	—		—		—		—			—
Series A convertible preferred stock	395		—		—		—			395
Stockholders’ equity
Total NCR stockholders’ equity	1,104		5,978		2,078		(8,056		)	1,104
Noncontrolling interests in subsidiaries	—		—		3		—			3
Total stockholders’ equity	1,104		5,978		2,081		(8,056		)	1,107
Total liabilities and stockholders’ equity	$	9,599	$	6,165	$	5,027	$	(11,804	)	$	8,987



Condensed Consolidating Statement of Cash Flows
For the three months ended March 31, 2020

In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(67	)	$	(10	)	$	139		$	(1	)	$	61
Investing activities
Expenditures for property, plant and equipment	(2		)	—			(8		)	—			(10		)
Proceeds from sales of property, plant and equipment	7			—			—			—			7
Additions to capitalized software	(55		)	—			(14		)	—			(69		)
Proceeds from (payments of) intercompany notes	242			10			—			(252		)	—
Business acquisitions, net	(6		)	—			(20		)	—			(26		)
Net cash provided by (used in) investing activities	186			10			(42		)	(252		)	(98		)
Financing activities
Short term borrowings, net	2			—			1			—			3
Payments on term credit facilities	(2		)	—			—			—			(2		)
Payments on revolving credit facilities	(430		)	—			(143		)	—			(573		)
Borrowings on revolving credit facilities	1,310			—			87			—			1,397
Repurchase of Common Stock	(41		)	—			—			—			(41		)
Debt issuance cost	(1		)	—			—			—			(1		)
Series A Preferred Stock Dividends	(6		)	—			—			—			(6		)
Proceeds from employee stock plans	3			—			—			—			3
Other financing activities	(2		)	—			(1		)	—			(3		)
Dividend distribution to consolidated subsidiaries	—			—			(1		)	1			—
Borrowings (repayments) of intercompany notes	—			—			(252		)	252			—
Tax withholding payments on behalf of employees	(24		)	—			—			—			(24		)
Net change in client funds obligations	—			—			12			—			12
Net cash provided by (used in) financing activities	809			—			(297		)	253			765
Cash flows from discontinued operations
Net cash used in operating activities	3			—			—			—			3
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(14		)	—			(14		)
Increase (decrease) in cash, cash equivalents and restricted cash	931			—			(214		)	—			717
Cash, cash equivalents and restricted cash at beginning of period	15			3			530			—			548
Cash, cash equivalents and restricted cash at end of period	$	946		$	3		$	316		$	—		$	1,265



In millions	March 31, 2020
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	945	$	3	$	266	$	—	$	1,214
Restricted cash and restricted cash equivalents including funds held for clients included in other assets	1		—		50		—		51
Total cash, cash equivalents and restricted cash	$	946	$	3	$	316	$	—	$	1,265



Condensed Consolidating Statement of Cash Flows
For the three months ended March 31, 2019

In millions	Parent Issuer			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	111		$	(20	)	$	(107	)	$	—		$	(16	)
Investing activities
Expenditures for property, plant and equipment	(13		)	—			(9		)	—			(22		)
Additions to capitalized software	(36		)	—			(7		)	—			(43		)
Proceeds from (payments of) intercompany notes	29			30			—			(59		)	—
Investments in equity affiliates	—			—			10			(10		)	—
Business acquisitions, net	(6		)	—			—			—			(6		)
Net change in funds held for clients	—			—			—			—			—
Other investing activities, net	3			—			—			—			3
Net cash provided by (used in) investing activities	(23		)	30			(6		)	(69		)	(68		)
Financing activities
Short term borrowings, net	—			—			7			—			7
Payments on term credit facilities	(17		)	—			—			—			(17		)
Payments on revolving credit facilities	(375		)	—			—			—			(375		)
Borrowings on revolving credit facilities	330			—			100			—			430
Proceeds from employee stock plans	4			—			—			—			4
Equity contribution	—			(10		)	—			10			—
Net change in client funds obligations	—			—			17			—			17
Borrowings (repayments) of intercompany notes	—			—			(59		)	59			—
Tax withholding payments on behalf of employees	(13		)	—			—			—			(13		)
Net cash provided by (used in) financing activities	(71		)	(10		)	65			69			53
Cash flows from discontinued operations
Net cash used in operating activities	(6		)	—			—			—			(6		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			1			—			1
Increase (decrease) in cash, cash equivalents, and restricted cash	11			—			(47		)	—			(36		)
Cash, cash equivalents and restricted cash at beginning of period	11			3			508			—			522
Cash, cash equivalents and restricted cash at end of period	$	22		$	3		$	461		$	—		$	486



In millions	March 31, 2019
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows	Parent Issuer		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	21	$	3	$	390	$	—	$	414
Restricted cash and restricted cash equivalents including funds held for clients included in other assets	1		—		71		—		72
Total cash, cash equivalents and restricted cash	$	22	$	3	$	461	$	—	$	486

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2020

Pension Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

Components of net periodic benefit cost (income) of the pension plans for the three months ended March 31 were as follows:



In millions	U.S. Pension Benefits						International Pension Benefits						Total Pension Benefits
In millions	2020			2019			2020			2019			2020			2019
Net service cost	$	—		$	—		$	1		$	2		$	1		$	2
Interest cost	13			16			4			5			17			21
Expected return on plan assets	(9		)	(10		)	(7		)	(8		)	(16		)	(18		)
Net periodic benefit cost (income)	$	4		$	6		$	(2	)	$	(1	)	$	2		$	5

Postretirement Plan

Defined Benefit Plan Disclosure [Line Items]

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The benefit from the postretirement plan for the following periods were:



In millions	Three months ended March 31
In millions	2020			2019
Interest cost	$	—		$	—
Amortization of:
Prior service benefit	(1		)	(1		)
Net postretirement benefit	$	(1	)	$	(1	)

Postemployment Retirement Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The net cost of the postemployment plan for the following periods were:



	Three months ended March 31
In millions	2020			2019
Net service cost	$	6		$	14
Interest cost	—			1
Amortization of:
Prior service benefit	—			(1		)
Actuarial gain	(1		)	(1		)
Net benefit cost	$	5		$	13

Condensed Consolidating Supplemental Guarantor Information - Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2017
Proceeds from Contributions from Parent		$ 0
Net cash provided by (used in) operating activities	$ 61	(16)
Investing activities
Expenditures for property, plant and equipment	(10)	(22)
Proceeds from sale of property, plant and equipment	7	0
Additions to capitalized software	(69)	(43)
Proceeds from (payments of) intercompany notes	0	0
Investments in equity affiliates		0
Business acquisitions, net	(26)	(6)
Net change in funds held for clients - investing	0	0
Increase (Decrease) in Client Funds Held	12	17
Other investing activities, net	0	3
Net Cash Provided by (Used in) Investing Activities	(98)	(68)
Financing activities
Short term borrowings, net	(3)	(7)
Payments on term credit facilities	(2)	(17)
Payments on revolving credit facilities	(573)	(375)
Borrowings on revolving credit facilities	1,397	430
Repurchases of Common Stock	(41)	0
Payments of Debt Issuance Costs	(1)	0
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	(6)	0
Proceeds from employee stock plans	3	4
Proceeds from (Payments for) Other Financing Activities	(3)	0
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries	0
Borrowings (repayments) of intercompany notes	0	0
Tax withholding payments on behalf of employees	(24)	(13)
Net Cash Provided by (Used in) Financing Activities	765	53
Cash flows from discontinued operations
Net cash provided by (used in) operating activities	3	(6)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14)	1
Increase (decrease) in cash, cash equivalents, and restricted cash	717	(36)
Cash, cash equivalents and restricted cash at beginning of period	548	522
Cash, cash equivalents and restricted cash at end of period	1,265	486
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows
Cash and cash equivalents			$ 1,214	$ 509	$ 414
Restricted cash included in other assets			51	72	72
Total cash, cash equivalents and restricted cash	548	522	1,265	548	486	$ 522
Eliminations
Proceeds from Contributions from Parent		10
Net cash provided by (used in) operating activities	(1)	0
Investing activities
Expenditures for property, plant and equipment	0	0
Proceeds from sale of property, plant and equipment	0
Additions to capitalized software	0	0
Proceeds from (payments of) intercompany notes	(252)	(59)
Investments in equity affiliates		(10)
Business acquisitions, net	0	0
Net change in funds held for clients - investing	0	0
Increase (Decrease) in Client Funds Held	0	0
Other investing activities, net		0
Net Cash Provided by (Used in) Investing Activities	(252)	(69)
Financing activities
Short term borrowings, net	0	0
Payments on term credit facilities	0	0
Payments on revolving credit facilities	0	0
Borrowings on revolving credit facilities	0	0
Repurchases of Common Stock	0
Payments of Debt Issuance Costs	0
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	0
Proceeds from employee stock plans	0	0
Proceeds from (Payments for) Other Financing Activities	0
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries	1
Borrowings (repayments) of intercompany notes	252	59
Tax withholding payments on behalf of employees	0	0
Net Cash Provided by (Used in) Financing Activities	253	69
Cash flows from discontinued operations
Net cash provided by (used in) operating activities	0	0
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0	0
Increase (decrease) in cash, cash equivalents, and restricted cash	0	0
Cash, cash equivalents and restricted cash at beginning of period	0	0
Cash, cash equivalents and restricted cash at end of period	0	0
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows
Cash and cash equivalents			0	0	0
Restricted cash included in other assets			0		0
Total cash, cash equivalents and restricted cash	0	0	0	0	0
Parent Issuer
Proceeds from Contributions from Parent		0
Net cash provided by (used in) operating activities	(67)	111
Investing activities
Expenditures for property, plant and equipment	(2)	(13)
Proceeds from sale of property, plant and equipment	7
Additions to capitalized software	(55)	(36)
Proceeds from (payments of) intercompany notes	242	29
Investments in equity affiliates		0
Business acquisitions, net	(6)	(6)
Net change in funds held for clients - investing	0	0
Increase (Decrease) in Client Funds Held	0	0
Other investing activities, net		3
Net Cash Provided by (Used in) Investing Activities	186	(23)
Financing activities
Short term borrowings, net	(2)	0
Payments on term credit facilities	(2)	(17)
Payments on revolving credit facilities	(430)	(375)
Borrowings on revolving credit facilities	1,310	330
Repurchases of Common Stock	(41)
Payments of Debt Issuance Costs	(1)
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	(6)
Proceeds from employee stock plans	3	4
Proceeds from (Payments for) Other Financing Activities	(2)
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries	0
Borrowings (repayments) of intercompany notes	0	0
Tax withholding payments on behalf of employees	(24)	(13)
Net Cash Provided by (Used in) Financing Activities	809	(71)
Cash flows from discontinued operations
Net cash provided by (used in) operating activities	3	(6)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0	0
Increase (decrease) in cash, cash equivalents, and restricted cash	931	11
Cash, cash equivalents and restricted cash at beginning of period	15	11
Cash, cash equivalents and restricted cash at end of period	946	22
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows
Cash and cash equivalents			945	15	21
Restricted cash included in other assets			1		1
Total cash, cash equivalents and restricted cash	15	11	946	15	22
Guarantor Subsidiary
Proceeds from Contributions from Parent		(10)
Net cash provided by (used in) operating activities	(10)	(20)
Investing activities
Expenditures for property, plant and equipment	0	0
Proceeds from sale of property, plant and equipment	0
Additions to capitalized software	0	0
Proceeds from (payments of) intercompany notes	10	30
Investments in equity affiliates		0
Business acquisitions, net	0	0
Net change in funds held for clients - investing	0	0
Increase (Decrease) in Client Funds Held	0	0
Other investing activities, net		0
Net Cash Provided by (Used in) Investing Activities	10	30
Financing activities
Short term borrowings, net	0	0
Payments on term credit facilities	0	0
Payments on revolving credit facilities	0	0
Borrowings on revolving credit facilities	0	0
Repurchases of Common Stock	0
Payments of Debt Issuance Costs	0
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	0
Proceeds from employee stock plans	0	0
Proceeds from (Payments for) Other Financing Activities	0
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries	0
Borrowings (repayments) of intercompany notes	0	0
Tax withholding payments on behalf of employees	0	0
Net Cash Provided by (Used in) Financing Activities	0	(10)
Cash flows from discontinued operations
Net cash provided by (used in) operating activities	0	0
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0	0
Increase (decrease) in cash, cash equivalents, and restricted cash	0	0
Cash, cash equivalents and restricted cash at beginning of period	3	3
Cash, cash equivalents and restricted cash at end of period	3	3
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows
Cash and cash equivalents			3	3	3
Restricted cash included in other assets			0		0
Total cash, cash equivalents and restricted cash	3	3	3	3	3
Non-Guarantor Subsidiaries
Proceeds from Contributions from Parent		0
Net cash provided by (used in) operating activities	139	(107)
Investing activities
Expenditures for property, plant and equipment	(8)	(9)
Proceeds from sale of property, plant and equipment	0
Additions to capitalized software	(14)	(7)
Proceeds from (payments of) intercompany notes	0	0
Investments in equity affiliates		10
Business acquisitions, net	(20)	0
Net change in funds held for clients - investing	0	0
Increase (Decrease) in Client Funds Held	12	17
Other investing activities, net		0
Net Cash Provided by (Used in) Investing Activities	(42)	(6)
Financing activities
Short term borrowings, net	(1)	(7)
Payments on term credit facilities	0	0
Payments on revolving credit facilities	(143)	0
Borrowings on revolving credit facilities	87	100
Repurchases of Common Stock	0
Payments of Debt Issuance Costs	0
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	0
Proceeds from employee stock plans	0	0
Proceeds from (Payments for) Other Financing Activities	(1)
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries	(1)
Borrowings (repayments) of intercompany notes	(252)	(59)
Tax withholding payments on behalf of employees	0	0
Net Cash Provided by (Used in) Financing Activities	(297)	65
Cash flows from discontinued operations
Net cash provided by (used in) operating activities	0	0
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14)	1
Increase (decrease) in cash, cash equivalents, and restricted cash	(214)	(47)
Cash, cash equivalents and restricted cash at beginning of period	530	508
Cash, cash equivalents and restricted cash at end of period	316	461
Reconciliation of cash, cash equivalents and restricted cash as shown in the Condensed Consolidated Statements of Cash Flows
Cash and cash equivalents			266	491	390
Restricted cash included in other assets			50		71
Total cash, cash equivalents and restricted cash	$ 530	$ 508	$ 316	$ 530	$ 461

Segment Information and Concentrations - Revenue and Operating Income By Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 1,503	$ 1,536
Income (loss) from operations	77	100
Operating Segments
Segment Reporting Information [Line Items]
Total revenue	1,503	1,536
Segment operating income	104	147
Segment Reconciling Items
Segment Reporting Information [Line Items]
Transformation and restructuring costs	5	26
Acquisition-related amortization of intangible assets	22	21
Other adjustments	27	47
Banking \| Operating Segments
Segment Reporting Information [Line Items]
Total revenue	763	758
Segment operating income	103	95
Retail \| Operating Segments
Segment Reporting Information [Line Items]
Total revenue	472	511
Segment operating income	5	26
Hospitality \| Operating Segments
Segment Reporting Information [Line Items]
Total revenue	169	193
Segment operating income	(9)	16
Other \| Operating Segments
Segment Reporting Information [Line Items]
Total revenue	99	74
Segment operating income	$ 5	$ 10

Accumulated Other Comprehensive Income (Loss) (AOCI) - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Selling, General and Administrative Expense	$ (255)	$ (252)
Research and development expenses	(65)	(59)
Income (loss) from continuing operations	24	38
Income tax expense	(1)	(9)
Net income (loss) attributable to NCR common stockholders	17	24
Product
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	(391)	(453)
Service [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	(715)	(672)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income (loss) from continuing operations	(3)	(4)
Income tax expense	1	0
Net income (loss) attributable to NCR common stockholders	(2)	(4)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Product
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Service [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	(2)	(3)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Effective Cash Flow Hedge Loss (Gain)
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income (loss) from continuing operations	(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Effective Cash Flow Hedge Loss (Gain) \| Product
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	0	0
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Effective Cash Flow Hedge Loss (Gain) \| Service [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Amortization of Prior Service Benefit
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income (loss) from continuing operations	(1)	(2)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Amortization of Prior Service Benefit \| Product
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	0	0
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Amortization of Prior Service Benefit \| Service [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	(1)	(2)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Changes in Fair Value of Effective Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income (loss) from continuing operations	(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Changes in Fair Value of Effective Cash Flow Hedges \| Product
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Changes in Fair Value of Effective Cash Flow Hedges \| Service [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenue	$ 0	$ 0

Leasing - Lease Balances (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Assets
Operating lease assets	$ 362	$ 391
Finance lease assets	47	38
Accumulated Amortization of Finance lease assets	(8)	(5)
Total leased assets	401	424
Liabilities
Operating lease liabilities, current	88	91
Finance lease liabilities, current	13	10
Operating lease liabilities, noncurrent	346	369
Finance lease liabilities, noncurrent	28	25
Total lease liabilities	$ 475	$ 495

Derivatives and Hedging Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Location and Amounts of Derivative Fair Values in the Condensed Consolidated Balance Sheets

The following tables provide information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets:



	Fair Values of Derivative Instruments
	March 31, 2020
In millions	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts	Other current assets	$	155	$	5	Other current liabilities	$	79	$	2
Total derivatives designated as hedging instruments				$	5				$	2
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets	$	175	$	1	Other current liabilities	$	319	$	4
Total derivatives not designated as hedging instruments				$	1				$	4
Total derivatives				$	6				$	6


	Fair Values of Derivative Instruments
	December 31, 2019
In millions	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts	Other current assets	$	55	$	1	Other current liabilities	$	—	$	—
Total derivatives designated as hedging instruments				$	1				$	—
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets	$	71	$	1	Other current liabilities	$	264	$	1
Total derivatives not designated as hedging instruments				$	1				$	1
Total derivatives				$	2				$	1

Schedule Effects of Derivative Instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income



In millions	Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) on Derivative					Amount of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations
Derivatives in Cash Flow Hedging Relationships	For the three months ended March 31, 2020		For the three months ended March 31, 2019		Location of (Gain) Loss Reclassified from AOCI into the Condensed Consolidated Statement of Operations	For the three months ended March 31, 2020			For the three months ended March 31, 2019
Foreign exchange contracts	$	3	$	1	Cost of products	$	(1	)	$	(1	)



In millions		Amount of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations
		Three months ended March 31
Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations	2020		2019
Foreign exchange contracts	Other (expense), net	$	6	$	(5	)

Debt Obligations - Senior Unsecured Notes (Details) - USD ($) $ in Millions	Apr. 13, 2020	Mar. 31, 2020	Dec. 31, 2019	Aug. 21, 2019	Dec. 19, 2013	Sep. 17, 2012
5.00% Senior Notes due 2022
Debt Instrument [Line Items]
Long-term Debt						$ 600
Debt stated interest rate		5.00%	5.00%
Debt percentage of principle amount notes were sold at						100.00%
6.375% Senior Notes due 2023
Debt Instrument [Line Items]
Long-term Debt					$ 700
Debt stated interest rate		6.375%	6.375%
Debt percentage of principle amount notes were sold at					100.00%
5.750% Senior Notes due 2027 [Member]
Debt Instrument [Line Items]
Long-term Debt				$ 500
Debt stated interest rate		5.75%
Debt percentage of principle amount notes were sold at				100.00%
6.125% Senior Notes due 2029 [Member]
Debt Instrument [Line Items]
Long-term Debt				$ 500
Debt stated interest rate		6.125%
Subsequent Event [Member] \| 8.125% Notes Due 2025 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 400
Debt Instrument Redemption Price As Percentage of Principle Amount	100.00%
Debt percentage of principle amount notes were sold at	100.00%
NCR International, Inc. [Member] \| Guarantor Subsidiary \| 5.00% Senior Notes due 2022
Debt Instrument [Line Items]
Debt stated interest rate		5.00%
NCR International, Inc. [Member] \| Guarantor Subsidiary \| 6.375% Senior Notes due 2023
Debt Instrument [Line Items]
Debt stated interest rate		6.375%
NCR International, Inc. [Member] \| Guarantor Subsidiary \| Subsequent Event [Member] \| 8.125% Notes Due 2025 [Member]
Debt Instrument [Line Items]
Debt stated interest rate	8.125%

Employee Benefit Plans - Narrative (Details) $ in Millions	3 Months Ended
Employee Benefit Plans - Narrative (Details) $ in Millions	Mar. 31, 2020 USD ($)
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan assets contributions by employer	$ 5
Additional estimated contributions by employer during fiscal year	16
Total estimated contributions by employer during fiscal year	21
Postretirement Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan assets contributions by employer	0
Additional estimated contributions by employer during fiscal year	2
Total estimated contributions by employer during fiscal year	2
Postemployment Retirement Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan assets contributions by employer	4
Additional estimated contributions by employer during fiscal year	46
Total estimated contributions by employer during fiscal year	$ 50

Segment Information and Concentrations

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION AND CONCENTRATIONS

2. SEGMENT INFORMATION AND CONCENTRATIONS

The Company manages and reports the following segments:

•

Banking - We offer solutions to enable customers in the financial services industry to reduce costs, generate new revenue streams and enhance customer loyalty. These solutions include a comprehensive line of ATM and payment processing hardware and software; cash management and video banking software and customer-facing digital banking services; and related installation, maintenance, and managed and professional services.

•

Retail - We offer solutions to customers in the retail industry designed to improve selling productivity and checkout processes as well as increase service levels. The solutions offered serve the following customer markets in the retail industry: food, drug and mass merchandisers; department and specialty retailers; convenience and fuel retailers, and small and medium retailers. These solutions primarily include retail-oriented technologies, such as point of sale terminals and point of sale software; a retail software platform with a comprehensive suite of retail software applications; innovative self-service kiosks, such as self-checkout; as well as bar-code scanners. We also offer installation, maintenance, managed and professional services as well as payment processing solutions.

•

Hospitality - We offer solutions to customers in the hospitality industry, serving businesses in the following markets: quick service restaurants, table service restaurants, small and medium restaurants and travel and entertainment venues. Our solutions include point of sale hardware and software solutions, installation, maintenance, managed and professional services as well as payment processing solutions.


•	Other - This category includes telecommunications and technology solutions where we offer maintenance as well as managed and professional services for third-party hardware provided to select manufacturers who value and leverage our global service capability.

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 segment operating income. 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.

To maintain operating focus on business performance, non-operational items are excluded from the segment operating results utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported income from operations.

The following table presents revenue and operating income by segment:



In millions	Three months ended March 31
In millions	2020			2019
Revenue by segment
Banking	$	763		$	758
Retail	472			511
Hospitality	169			193
Other	99			74
Consolidated revenue	$	1,503		$	1,536
Operating income by segment
Banking	$	103		$	95
Retail	5			26
Hospitality	(9		)	16
Other	5			10
Subtotal - segment operating income	104			147
Other adjustments ⁽¹⁾	27			47
Income from operations	$	77		$	100


⁽¹⁾	The following table presents the other adjustments for NCR:



In millions	Three months ended March 31
In millions	2020		2019
Transformation and restructuring costs	$	5	$	26
Acquisition-related amortization of intangible assets	22		21
Total other adjustments	$	27	$	47

The following table presents revenue by geography for NCR:



In millions	Three months ended March 31
In millions	2020		2019
Americas	$	892	$	920
Europe, Middle East and Africa (EMEA)	403		419
Asia Pacific (APJ)	208		197
Total revenue	$	1,503	$	1,536

The following tables present revenue from products and services for NCR:



In millions	Three months ended March 31
In millions	2020		2019
Product revenue	$	474	$	539
Professional services and installation services revenue	227		238
Recurring revenue, including maintenance, cloud revenue and payments	802		759
Total revenue	$	1,503	$	1,536



In millions	Three months ended March 31
In millions	2020		2019
Software	$	474	$	467
Services	636		585
Hardware	393		484
Total revenue	$	1,503	$	1,536

Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

Assets and liabilities recorded at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 are set forth as follows:



	March 31, 2020
In millions	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Deposits held in money market mutual funds ⁽¹⁾	$	937	$	937	$	—	$	—
Foreign exchange contracts ⁽²⁾	6		—		6		—
Total	$	943	$	937	$	6	$	—
Liabilities:
Foreign exchange contracts ⁽³⁾	$	6	$	—	$	6	$	—
Total	$	6	$	—	$	6	$	—



	December 31, 2019
In millions	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Deposits held in money market mutual funds ⁽¹⁾	$	15	$	15	$	—	$	—
Foreign exchange contracts ⁽²⁾	2		—		2		—
Total	$	17	$	15	$	2	$	—
Liabilities:
Foreign exchange contracts ⁽³⁾	$	1	$	—	$	1	$	—
Total	$	1	$	—	$	1	$	—

⁽¹⁾ Included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets.

⁽²⁾ Included in Other current assets in the Condensed Consolidated Balance Sheets.

⁽³⁾ Included in Other current liabilities in the Condensed Consolidated Balance Sheets.

Leasing - Narrative (Details) - Europe $ in Millions	Mar. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Amount of additional operating leases not yet commenced	$ 73
Term of additional operating leases not yet commenced	10 years

Commitments and Contingencies - Warranty Reserve (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance as of January 1	$ 21	$ 26
Accruals for warranties issued	8	8
Settlements (in cash or in kind)	(11)	(10)
Ending balance as of March 31	$ 18	$ 24

Debt Obligations (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Debt Obligations

The following table summarizes the Company's short-term borrowings and long-term debt:



		March 31, 2020				December 31, 2019
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⁾		$	7		4.30%	$	8		4.30%
Trade Receivables Securitization Facility		293			2.65%	270			2.65%
Other ⁽¹⁾		4			4.25%	4			2.82%
	Total short-term borrowings	$	304			$	282
Long-Term Debt
Senior Secured Credit Facility:
	Term loan facility ⁽¹⁾	$	739		4.30%	$	740		4.30%
	Revolving credit facility ⁽¹⁾	1,070			3.77%	265			3.76%
Senior notes:
	5.00% Senior Notes due 2022	600				600
	6.375% Senior Notes due 2023	700				700
	5.750% Senior Notes due 2027	500				500
	6.125% Senior Notes due 2029	500				500
Deferred financing fees		(31		)		(32		)
Other ⁽¹⁾		3			—%	4			0.05%
	Total long-term debt	$	4,081			$	3,277


⁽¹⁾	Interest rates are weighted-average interest rates as of March 31, 2020 and December 31, 2019.

Debt Obligations

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

4. DEBT OBLIGATIONS

The following table summarizes the Company's short-term borrowings and long-term debt:



		March 31, 2020				December 31, 2019
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⁾		$	7		4.30%	$	8		4.30%
Trade Receivables Securitization Facility		293			2.65%	270			2.65%
Other ⁽¹⁾		4			4.25%	4			2.82%
	Total short-term borrowings	$	304			$	282
Long-Term Debt
Senior Secured Credit Facility:
	Term loan facility ⁽¹⁾	$	739		4.30%	$	740		4.30%
	Revolving credit facility ⁽¹⁾	1,070			3.77%	265			3.76%
Senior notes:
	5.00% Senior Notes due 2022	600				600
	6.375% Senior Notes due 2023	700				700
	5.750% Senior Notes due 2027	500				500
	6.125% Senior Notes due 2029	500				500
Deferred financing fees		(31		)		(32		)
Other ⁽¹⁾		3			—%	4			0.05%
	Total long-term debt	$	4,081			$	3,277


⁽¹⁾	Interest rates are weighted-average interest rates as of March 31, 2020 and December 31, 2019.

Senior Secured Credit Facility On August 28, 2019, the Company entered into an amended and restated senior secured credit facility with and among certain subsidiaries of NCR (the Foreign Borrowers), the lenders party thereto and JPMorgan Chase Bank, NA (JPMCB) as the administrative agent, refinancing its term loan facility and revolving credit facility thereunder (the Senior Secured Credit Facility). The Senior Secured Credit Facility consists of a term loan facility with an aggregate principal commitment of $750 million, of which $746 million was outstanding as of March 31, 2020. Additionally, the Senior Secured Credit Facility provides for a five-year revolving credit facility with an aggregate principal amount of $1.1 billion, of which $1.07 billion was outstanding as of March 31, 2020. The revolving credit facility also allows a portion of the availability to be used for letters of credit, and as of March 31, 2020, there were $28 million of letters of credit outstanding.

Up to $400 million of the revolving credit facility is available to the Foreign Borrowers. Term loans were made to the Company in U.S. Dollars, and loans under the revolving credit facility are available in U.S. Dollars, Euros and Pound Sterling.

The outstanding principal balance of the term loan facility is required to be repaid in equal quarterly installments of approximately 0.25% of the aggregate principal amount that began with the fiscal quarter ending December 31, 2019, with the balance being due at maturity on August 28, 2026. Borrowings under the revolving portion of the credit facility are due August 28, 2024. Revolving loans outstanding under the Senior Secured Credit Facility denominated in U.S. Dollars bear interest at the Company's option at (a) London Inter-bank Offered Rate ("LIBOR"), plus a margin ranging from 1.25% to 2.25% or (b) a base rate equal to the highest of (i) the federal funds rate plus 0.50%, (ii) the rate of interest last quoted by the Wall Street Journal as the “prime rate” and (iii) the one-month LIBOR rate plus 1.00% (the Base Rate), plus, a margin ranging from 0.25% to 1.25%, in each case, depending on the Company’s consolidated leverage ratio. Revolving loans denominated in Euro bear interest at the EURIBOR, plus a margin ranging from 1.25% to 2.25% depending on the Company’s consolidated leverage ratio. The terms of the Senior Secured Credit Facility also require certain other fees and payments to be made by the Company, including a commitment fee on the undrawn portion of the revolving credit facility. Term loans outstanding under the Senior Secured Credit Facility bear interest, at NCR's option, at LIBOR plus 2.50% per annum or the Base Rate plus a 1.50% margin per annum. In the event that LIBOR is no longer available or in certain other circumstances as described in the Senior Secured Credit Facility, the Senior Secured Credit Facility provides a mechanism for determining an alternative rate of interest. There is no assurance that any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, LIBOR.

The obligations of the Company and Foreign Borrowers under the Senior Secured Credit Facility are guaranteed by certain of the Company's wholly-owned domestic subsidiaries. The Senior Secured Credit Facility and these guarantees are secured by a first

priority lien and security interest in certain equity interests owned by the Company and the guarantor subsidiaries in certain of their respective domestic and foreign subsidiaries, and a perfected first priority lien and security interest in substantially all of the Company's U.S. assets and the assets of the guarantor subsidiaries, subject to certain exclusions. These security interests would be released if the Company achieves an “investment grade” rating and will remain released so long as the Company maintains that rating.

The Senior Secured Credit Facility includes affirmative and negative covenants that restrict or limit the ability of the Company and its subsidiaries to, among other things, incur indebtedness; create liens on assets; engage in certain fundamental corporate changes or changes to the Company's business activities; make investments; sell or otherwise dispose of assets; engage in sale-leaseback or hedging transactions; repurchase stock, pay dividends or make similar distributions; repay other indebtedness; engage in certain affiliate transactions; or enter into agreements that restrict the Company's ability to create liens, pay dividends or make loan repayments. The Senior Secured Credit Facility also includes a financial covenant that require the Company to maintain:

•

a consolidated leverage ratio on the last day of any fiscal quarter, not to exceed (i) in the case of any fiscal quarter ending on or prior to March 31, 2021, (a) the sum of 4.50 and an amount (not to exceed 0.50) to reflect debt used to reduce NCR’s unfunded pension liabilities to (b) 1.00, and (ii) in the case of any fiscal quarter ending after March 31, 2021 and on or prior to March 31, 2023, (a) the sum of 4.25 and an amount (not to exceed 0.50) to reflect debt used to reduce NCR’s unfunded pension liabilities to (b) 1.00; and (iii) in the case of any fiscal quarter ending after March 31, 2023, (a) the sum of 4.00 and an amount (not to exceed 0.50) to reflect debt used to reduce our unfunded pension liabilities to (b) 1.00.

The Company has the option to elect to increase the maximum permitted leverage ratio by 0.25 in connection with the consummation of any material acquisition (as defined in the Senior Secured Credit Facility) for four fiscal quarters, but in no event will the maximum permitted leverage ratio, inclusive of all increases, exceed 4.75 to 1.00. At March 31, 2020, the maximum consolidated leverage ratio under the Senior Secured Credit Facility was 4.75 to 1.00.

The Senior Secured Credit Facility 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.

The Company may request, at any time and from time to time, but the lenders are not obligated to fund, the establishment of one or more incremental term loans and/or revolving credit facilities (subject to the agreement of existing lenders or additional financial institutions to provide such term loans and/or revolving credit facilities) with commitments in an aggregate amount not to exceed the greater of (i) $150 million, and (ii) such amount as would not cause the leverage ratio under the Senior Secured Credit Facility, calculated on a pro forma basis including the incremental facility and assuming that it and the revolver are fully drawn, to exceed 3.00 to 1.00, and the proceeds of which can be used for working capital requirements and other general corporate purposes.

Senior Unsecured Notes On September 17, 2012, the Company issued $600 million aggregate principal amount of 5.00% senior unsecured notes due in 2022 (the 5.00% Notes). The 5.00% Notes were sold at 100% of the principal amount and will mature on July 15, 2022. On December 19, 2013, the Company issued $700 million aggregate principal amount of 6.375% senior unsecured notes due in 2023 (the 6.375% Notes). The 6.375% Notes were sold at 100% of the principal amount and will mature on December 15, 2023. 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). The 5.750% Notes were sold at 100% of the principal amount and will mature on September 1, 2027. The 6.125% Notes were sold at 100% of the principal amount and will mature on September 1, 2029.

Subsequent to the end of the quarter, on April 13, 2020, the Company issued $400 million aggregate principal amount of 8.125% senior unsecured notes due in 2025. Refer to Note 17, Subsequent Events for further disclosure regarding the debt offering.

The senior unsecured notes are guaranteed, fully and unconditionally, on an unsecured senior basis, by our 100% owned subsidiary, NCR International, Inc.

The terms of the indentures for these notes limit the ability of the Company and certain of its subsidiaries to, among other things, incur additional debt or issue redeemable preferred stock; pay dividends or make certain other restricted payments or investments; incur liens; sell assets; incur restrictions on the ability of the Company's subsidiaries to pay dividends to the Company; enter into affiliate transactions; engage in sale and leaseback transactions; and consolidate, merge, sell or otherwise dispose of all or substantially all of the Company's or such subsidiaries' assets. These covenants are subject to significant exceptions and

qualifications. For example, if these 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.

Trade Receivables Securitization Facility In November 2014, the Company established a revolving trade receivables securitization facility (the A/R Facility) with PNC Bank, National Association (PNC) as the administrative agent, and various lenders. In November 2019, the Company amended the A/R Facility to increase the maximum commitment made available under the Facility and extended the maturity date to November 2021. The amendment also included other modifications including the scope of receivables subject to the facility and related eligibility requirements, the adoption of a new benchmark for determining overnight funding rates and the fees and interest payable to the agent and lenders party thereto. The A/R Facility now provides for up to $300 million in funding based on the availability of eligible receivables and other customary factors and conditions, of which $293 million was outstanding as of March 31, 2020.

Under the A/R Facility, NCR sells and/or contributes certain of its U.S. trade receivables to a wholly-owned, bankruptcy-remote subsidiary as they are originated, and advances by the lenders to that subsidiary are secured by those trade receivables. The assets of this financing subsidiary are restricted as collateral for the payment of its obligations under the A/R Facility, and its assets and credit are not available to satisfy the debts and obligations owed to the creditors of the Company. The Company includes the assets, liabilities and results of operations of this financing subsidiary in its consolidated financial statements. The financing subsidiary owned $548 million and $603 million of outstanding accounts receivable as of March 31, 2020 and December 31, 2019, respectively, and these amounts are included in accounts receivable, net in the Company’s Condensed Consolidated Balance Sheets.

The financing subsidiary will pay annual commitments and other customary fees to the lenders, and advances by a lender under the A/R Facility will accrue interest (i) at a reserve-adjusted LIBOR rate or a base rate equal to the highest of (a) the applicable lender’s prime rate or (b) the federal funds rate plus 0.50%, if the lender is funding as a committed lender under the terms of the A/R Facility, or (ii) based on commercial paper interest rates if the lender is funding as a commercial paper conduit lender. Advances may be prepaid at any time without premium or penalty.

The A/R Facility contains various customary affirmative and negative covenants and default and termination provisions which provide for the acceleration of the advances under the A/R Facility in circumstances including, but not limited to, failure to pay interest or principal 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.

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 March 31, 2020 and December 31, 2019 was $4.22 billion and $3.70 billion, respectively. Management's fair value estimates were based on quoted prices for recent trades of NCR’s long-term debt, quoted prices for similar instruments, and inquiries with certain investment communities.

Segment Information and Concentrations - Revenue by Geography (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 1,503	$ 1,536
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	892	920
Europe, Middle East and Africa (EMEA)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	403	419
Asia Pacific (APJ)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 208	$ 197

Derivatives and Hedging Instruments - Derivative Fair Values (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	$ 6	$ 2
Derivative Liabilities, Fair Value	6	1
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	5	1
Derivative Liabilities, Fair Value	2	0
Derivatives designated as hedging instruments \| Foreign exchange contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Notional Amount	155	55
Derivative Assets, Fair Value	5	1
Derivatives designated as hedging instruments \| Foreign exchange contracts \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative Liability, Notional Amount	79
Derivative Liabilities, Fair Value	2	0
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	1	1
Derivative Liabilities, Fair Value	4	1
Derivatives not designated as hedging instruments \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value		1
Derivatives not designated as hedging instruments \| Foreign exchange contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Notional Amount	175	71
Derivative Assets, Fair Value	1
Derivatives not designated as hedging instruments \| Foreign exchange contracts \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative Liability, Notional Amount	319	264
Derivative Liabilities, Fair Value	$ 4	$ 1

Earnings Per Share - Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Income (loss) from continuing operations	$ 23	$ 37
Preferred Stock Dividends Income Statement Impact Included in Diluted Earnings Per Share From Continuing Operations	6	13
Dividends on convertible preferred stock	(6)	(13)
Income from continuing operations attributable to NCR common stockholders	17	24
Loss from discontinued operations, net of tax	0	0
Net income (loss) attributable to NCR common stockholders	$ 17	$ 24
Denominator:
Weighted average outstanding shares of common stock (in shares)	128.0	119.3
Basic earnings per share:
From continuing operations (in dollars per share)	$ 0.13	$ 0.20
From discontinued operations (in dollars per share)	0	0
Total basic earnings (loss) per share (in dollars per share)	$ 0.13	$ 0.20