Third quarter and other recent highlights include:
Year to date cash flow provided by operating activities of
Year to date free cash flow of
Revenue of
GAAP diluted EPS of
Executing strategy to shift the mix to more software, services and recurring revenue
Reduced leverage and simplified capital structure
'Our third quarter performance reflects solid execution of our strategy and the resiliency of our solutions in a difficult operating environment that continues to be impacted by COVID-19,' said
In this release, we use certain non-GAAP measures, including presenting certain measures on a constant currency basis. These non-GAAP measures include 'free cash flow' and others with the words 'non-GAAP,' or 'constant currency' in their titles. These non-GAAP measures are listed, described and reconciled to their most directly comparable GAAP measures under the heading 'Non-GAAP Financial Measures' later in this release.
Third Quarter 2020 Operating Results
Revenue
Third quarter revenue of
$ in millions
Q3 2020
Q3 2019
% Increase
(Decrease)
Increase
(Decrease)
Constant
Currency
Banking
$
777
$
942
(18
%)
(17
%)
Retail
556
539
3
%
2
%
Hospitality
173
216
(20
%)
(20
%)
Other
83
86
(3
%)
(5
%)
Total Revenue
$
1,589
$
1,783
(11
%)
(11
%)
Software
$
468
$
512
(9
%)
(9
%)
Services
655
640
2
%
3
%
Hardware
466
631
(26
%)
(26
%)
ATM
219
368
(40
%)
(40
%)
SCO/POS
247
263
(6
%)
(7
%)
Total Revenue
$
1,589
$
1,783
(11
%)
(11
%)
Software & Services %
71
%
65
%
Recurring Revenue
$
848
$
806
5
%
6
%
Recurring Revenue %
53
%
45
%
Banking revenue decreased 18% due to the continued impact of the COVID-19 pandemic driven by a 40% decline in ATM hardware revenue. An accelerated shift from selling perpetual software licenses to recurring revenue also impacted the year-over-year revenue comparison. Foreign currency fluctuations had an unfavorable impact of 1% on the revenue comparison.
Retail revenue increased 3% due to an increase in self-checkout revenue and services revenue, partially offset by lower point-of-sale revenue. Foreign currency fluctuations had a favorable impact of 1% on the revenue comparison.
Hospitality revenue decreased 20% driven primarily by a decline in hardware revenue. Foreign currency fluctuations did not have an impact on the revenue comparison.
Gross Margin
Third quarter gross margin of
Operating Expenses
Third quarter operating expenses of
Operating Income
Third quarter income from operations of
Other Expense/Income
Third quarter other expense (GAAP) of
Income Tax Expense/Benefit
Third quarter income tax expense of zero decreased from an income tax expense of
Third quarter income tax expense (non-GAAP) of
Net Income from Continuing Operations Attributable to NCR
Third quarter net income from continuing operations attributable to NCR of
Adjusted EBITDA
Third quarter adjusted EBITDA of
Cash Flow
Third quarter cash provided by operating activities of
Capital Structure Update
We are taking steps to reduce our finance leverage and simplify our capital structure. In August, we closed two new bond offerings for
Impact from COVID-19
We continue to navigate through the challenging times presented by COVID-19, with a sharp focus on safeguarding our employees and helping our customers. Despite the unprecedented environment, our teams are executing at a high level and we are advancing our strategy.
While it is difficult to project how disruptive and protracted the pandemic will be, we do expect it will negatively impact our business for the remainder of 2020 and into 2021. We expect all of our segment results to be negatively impacted by the COVID-19 pandemic. We expect our hardware revenues to be most impacted while our recurring revenue streams is expected to be more resilient.
The COVID-19 pandemic is complex and rapidly evolving. The ultimate impact on our overall financial condition and operating results will depend on the currently unknowable duration and severity of the pandemic, as well as any additional governmental and public actions taken in response. We are in the process of evaluating the long-term impact that COVID-19 may have on our business model which may result in charges in the fourth quarter of 2020. These charges may include both cash and non-cash items. There can be no assurance that the measures we have taken or will take will completely offset the negative impact of COVID-19.
2020 Third Quarter Earnings Conference Call
A conference call is scheduled for today at
More information on NCR's Q3 2020 earnings, including additional financial information and analysis, is available on NCR's Investor Relations website at http://investor.ncr.com/.
About
Website: www.ncr.com
Twitter: @NCRCorporation
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Cautionary Statements
This release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the 'Act'), including statements containing the words 'expect,' 'intend,' 'plan,' 'believe,' 'will,' 'should,' 'would,' 'could,' 'may' and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to NCR's plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release include, without limitation, statements regarding NCR's plans to manage its business through the novel strain of the coronavirus identified in late 2019 ('COVID-19') pandemic and the health and safety of our customers and employees; the expected impact of the COVID-19 pandemic on NCR's Banking, Retail and Hospitality segments including the impact on our customers' businesses and their ability to pay; expectations regarding our operating goals and actions to manage these goals; expectations regarding our cash flow generation, cash reserve, liquidity, financial flexibility, and impact of the COVID-19 pandemic on our employee base; expectations regarding our ability to capitalize on market opportunities; expectations regarding long-term strategy; NCR's financial outlook (including the section entitled 'Impact from COVID-19'); expectations regarding our continued focus on our long-term fundamentals, including, but, not limited to, execution of NCR's recurring revenue strategy and expected areas of focus to drive growth and create long-term stockholder value. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of NCR's control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors relating to: the impact of the COVID-19 pandemic on our workforce, operations and financial results, including the impact on our customer's businesses; manufacturing disruptions, including those caused by or related to outsourced manufacturing or disruptions in our supply chain due to the COVID-19 pandemic; strength of demand for the products we offer or will offer in the future consistent with our strategy and its effect on our businesses; domestic and global economic and credit conditions including, in particular, those resulting from the imposition or threat of protectionist trade policies or import or export tariffs, global and regional market conditions and spending trends in the financial services and retail industries, new tax legislation across multiple jurisdictions, modified or new global or regional trade agreements, execution of the
Non-GAAP Financial Measures
Non-GAAP Financial Measures. While NCR reports its results in accordance with Generally Accepted Accounting Principles in
Non-GAAP Diluted Earnings Per Share (EPS), Gross Margin (non-GAAP), Gross Margin Rate (non-GAAP), Operating Expenses (non-GAAP), Operating Income (non-GAAP), Operating Margin Rate (non-GAAP), Other (Expense) (non-GAAP), Income Tax Expense (non-GAAP), Effective Income Tax Rate (non-GAAP), and Net Income from Continuing Operations Attributable to NCR (non-GAAP). NCR's non-GAAP diluted EPS, gross margin (non-GAAP), gross margin rate (non-GAAP), operating expenses (non-GAAP), operating income (non-GAAP), operating margin rate (non-GAAP), other (expense) (non-GAAP), income tax expense (non-GAAP), effective income tax rate (non-GAAP), and net income from continuing operations attributable to NCR (non-GAAP) are determined by excluding, as applicable, pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits as well as other special items, including amortization of acquisition related intangibles and transformation and restructuring activities, from NCR's GAAP earnings per share, gross margin, gross margin rate, expenses, income from operations, operating margin rate, other (expense), income tax expense, effective income tax rate and net income from continuing operations attributable to NCR, respectively. Due to the non-operational nature of these pension and other special items, NCR's management uses these non-GAAP measures to evaluate year-over-year operating performance. NCR also uses operating income (non-GAAP) and diluted EPS (non-GAAP), to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with NCR's past reports of financial results.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) NCR believes that Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) provides useful information to investors because it is an indicator of the strength and performance of the Company's ongoing business operations, including its ability to fund discretionary spending such as capital expenditures, strategic acquisitions and other investments. NCR determines Adjusted EBITDA for a given period based on its GAAP net income from continuing operations attributable to NCR plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus other income (expense); plus pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits and other special items, including amortization of acquisition related intangibles.
Free Cash Flow. NCR defines free cash flow as net cash provided by/used in operating activities and cash flow provided by/used in discontinued operations less capital expenditures for property, plant and equipment, additions to capitalized software, discretionary pension contributions and pension settlements. NCR's management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures, which can be used for, among other things, investment in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repayment of the Company's debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow does not have uniform definitions under GAAP and, therefore, NCR's definitions may differ from other companies' definitions of these measures.
Constant Currency. NCR presents certain financial measures, such as period-over-period revenue growth, on a constant currency basis, which excludes the effects of foreign currency translation by translating prior period results at current period monthly average exchange rates. Due to the overall variability of foreign exchange rates from period to period, NCR's management uses constant currency measures to evaluate period-over-period operating performance on a more consistent and comparable basis. NCR's management believes that presentation of financial measures without this result is more representative of the company's period-over-period operating performance and provides additional insight into historical and/or future performance, which may be helpful for investors.
NCR's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their most directly comparable GAAP measures in the tables below.
Use of Certain Terms
Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, certain professional services arrangements as well as term-based software license arrangements that include customer termination rights.
Reconciliation of Gross Margin (GAAP) to Gross Margin (Non-GAAP)
$ in millions
Q3 2020
Q3 2019
Gross Margin (GAAP)
$
427
$
507
Transformation and restructuring costs
14
1
Acquisition-related amortization of intangibles
5
5
Gross Margin (Non-GAAP)
$
446
$
513
Reconciliation of Gross Margin Rate (GAAP) to Gross Margin Rate (Non-GAAP)
Q3 2020
Q3 2019
Gross Margin Rate (GAAP)
26.9
%
28.4
%
Transformation and restructuring costs
0.9
%
0.1
%
Acquisition-related amortization of intangibles
0.3
%
0.3
%
Gross Margin Rate (Non-GAAP)
28.1
%
28.8
%
Reconciliation of Operating Expenses (GAAP) to Operating Expenses (Non-GAAP)
$ in millions
Q3 2020
Q3 2019
Operating Expenses (GAAP)
$
309
$
335
Transformation and restructuring costs
(5)
(6)
Acquisition-related amortization of intangibles
(16)
(17)
Acquisition-related costs
-
(1)
Operating Expenses (Non-GAAP)
$
288
$
311
Reconciliation of Income from Operations (GAAP) to Operating Income (Non-GAAP)
$ in millions
Q3 2020
Q3 2019
Income (Loss) from Operations (GAAP)
$
118
$
172
Transformation and restructuring costs
19
7
Acquisition-related amortization of intangibles
21
22
Acquisition-related costs
-
1
Operating Income (Non-GAAP)
$
158
$
202
Reconciliation of Other (Expense) (GAAP) to Other (Expense) (non-GAAP)
$ in millions
Q3 2020
Q3 2019
Income (Loss) from Operations (GAAP)
$
(86)
$
(64)
Debt Refinancing
20
6
Operating Income (Non-GAAP)
$
(66)
$
(58)
Reconciliation of Income Tax (Benefit) Expense (GAAP) to Income Tax Expense (Non-GAAP)
$ in millions
Q3 2020
Q3 2019
Income Tax (Benefit) Expense (GAAP)
$
-
$
4
Transformation and restructuring costs
5
2
Acquisition-related amortization of intangibles
4
4
Acquisition-related costs
-
(2)
Debt refinancing
5
1
Valuation allowance release & other tax adjustments
-
25
Income Tax Expense (Non-GAAP)
$
14
$
34
Reconciliation of Net Income from Continuing Operations Attributable to NCR (GAAP) to Earnings Before Interest,
Depreciation, Taxes and Amortization (Adjusted EBITDA)
$ in millions
Q3 2020
Q3 2019
Net Income (Loss) from Continuing Operations Attributable to NCR (GAAP)
$
31
$
105
Transformation and restructuring costs
19
7
Acquisition-related amortization of intangibles
21
22
Acquisition-related costs
-
1
Depreciation and amortization (excluding acquisition-related amortization of intangibles)
70
59
Loss on extinguishment of debt
20
-
Interest expense
60
53
Interest income
(3)
(1)
Income tax expense (benefit)
-
4
Stock-based compensation expense
31
28
Adjusted EBITDA (Non-GAAP)
$
249
$
278
Reconciliation of Diluted Earnings Per Share from Continuing Operations (GAAP) to
Non-GAAP Diluted Earnings Per Share from Continuing Operations (Non-GAAP)
Q3 2020
Q3 2019
Diluted Earnings Per Share (GAAP) (1)
$
0.19
$
0.21
Transformation and restructuring costs
0.10
0.03
Acquisition-related amortization of intangibles
0.12
0.12
Acquisition-related costs
-
0.02
Debt refinancing
0.10
0.03
Valuation allowance release & other tax adjustments
-
(0.17)
Diluted Earnings Per Share (Non-GAAP) (1)
$
0.54
$
0.73
(1)
Non-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company's Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile.
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (Non-GAAP)
QTD
QTD
YTD
YTD
$ in millions
Q3 2020
Q3 2019
Q3 2020
Q3 2019
Net cash provided by (used in) operating activities
$
212
$
155
$
495
$
226
Total capital expenditures
(60)
(82)
(200)
(220)
Net cash provided by (used in) discontinued operations
(2)
(16)
4
(27)
Free cash flow
$
150
$
57
$
299
$
(21)
Reconciliation of Revenue Growth % (GAAP) to
Revenue Growth Constant Currency % (Non-GAAP)
Three months ended
Revenue
Growth %
(GAAP)
Favorable
(unfavorable)
FX impact
Revenue
Growth
Constant
Currency %
(Non-GAAP)
Banking
(18)%
(1)%
(17)%
Retail
3%
1%
2%
Hospitality
(20)%
-%
(20)%
Other
(3)%
2%
(5)%
Total Revenue
(11)%
-%
(11)%
Three months ended
Revenue
Growth %
(GAAP)
Favorable
(unfavorable)
FX impact
Revenue
Growth
Adjusted
Constant
Currency %
(Non-GAAP)
Software
(9)%
-%
(9)%
Services
2%
(1)%
3%
Hardware
(26)%
-%
(26)%
ATM
(40)%
-%
(40)%
SCO/POS
(6)%
1%
(7)%
Total Revenue
(11)%
-%
(11)%
Three months ended
Revenue
Growth %
(GAAP)
Favorable
(unfavorable)
FX impact
Revenue
Growth
Adjusted
Constant
Currency %
(Non-GAAP)
Recurring Revenue
5%
(1)%
6%
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions, except per share amounts)
Schedule A
For the Periods Ended
Three Months
Nine Months
2020
2019
2020
2019
Revenue
Product
$
521
$
712
$
1,476
$
1,915
Service
1,068
1,071
3,100
3,114
Total Revenue
1,589
1,783
4,576
5,029
Cost of products
452
555
1,254
1,547
Cost of services
710
721
2,126
2,093
Total gross margin
427
507
1,196
1,389
% of Revenue
26.9
%
28.4
%
26.1
%
27.6
%
Selling, general and administrative expenses
254
271
743
775
Research and development expenses
55
64
169
185
Income (loss) from operations
118
172
284
429
% of Revenue
7.4
%
9.6
%
6.2
%
8.5
%
Loss on extinguishment of debt
(20)
-
(20)
-
Interest expense
(60)
(53)
(167)
(143)
Other expense, net
(6)
(11)
(10)
(28)
Total other expense, net
(86)
(64)
(197)
(171)
Income (loss) from continuing operations before income taxes
32
108
87
258
% of Revenue
2.0
%
6.1
%
1.9
%
5.1
%
Income tax expense (benefit)
-
4
(33)
28
Income (loss) from continuing operations
32
104
120
230
Loss from discontinued operations, net of tax
-
(15)
-
(15)
Net income (loss)
32
89
120
215
Net income (loss) attributable to noncontrolling interests
1
(1)
2
-
Net income (loss) attributable to NCR
$
31
$
90
$
118
$
215
Amounts attributable to NCR common stockholders:
Income (loss) from continuing operations
$
31
$
105
$
118
$
230
Dividends on convertible preferred stock
(6)
(79)
(19)
(104)
Income (loss) from continuing operations attributable to NCR common stockholders
25
26
99
126
Loss from discontinued operations, net of tax
-
(15)
-
(15)
Net income (loss) attributable to NCR common stockholders
$
25
$
11
$
99
$
111
Income (loss) per share attributable to NCR common stockholders:
Income (loss) per common share from continuing operations
Basic
$
0.19
$
0.21
$
0.77
$
1.05
Diluted (1)
$
0.19
$
0.21
$
0.76
$
1.03
Net income (loss) per common share
Basic
$
0.19
$
0.09
$
0.77
$
0.92
Diluted (1)
$
0.19
$
0.09
$
0.76
$
0.90
Weighted average common shares outstanding
Basic
128.5
121.4
128.2
120.3
Diluted (1)
129.7
123.4
129.8
122.7
(1)
Diluted EPS is determined using the most dilutive measure, either including the impact of the dividends and deemed dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss per common share from continuing operations and net income or loss per common share or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding.
REVENUE AND OPERATING INCOME SUMMARY
(Unaudited)
(in millions)
Schedule B
For the Periods Ended
Three Months
Nine Months
2020
2019
%
Change
%
Change
Constant
Currency
2020
2019
%
Change
%
Change
Constant
Currency
Revenue by segment
Banking
$
777
$
942
(18)%
(17)%
$
2,303
$
2,568
(10)%
(9)%
Retail
556
539
3%
2%
1,511
1,608
(6)%
(6)%
Hospitality
173
216
(20)%
(20)%
502
611
(18)%
(17)%
Other
83
86
(3)%
(5)%
260
242
7%
8%
Total Revenue
$
1,589
$
1,783
(11)%
(11)%
$
4,576
$
5,029
(9)%
(8)%
Operating income by segment
Banking
$
99
$
146
$
294
$
370
Banking operating income margin %
12.7
%
15.5
%
12.8
%
14.4
Retail
45
36
67
102
Retail operating income margin %
8.1
%
6.7
%
4.4
%
6.3
Hospitality
7
10
(2)
39
Hospitality operating income margin %
4.0
%
4.6
%
(0.4)
%
6.4
Other
7
10
19
30
All Other operating income margin %
8.4
%
11.6
%
7.3
%
12.4
Subtotal-segment operating income
$
158
$
202
$
378
$
541
Total Revenue operating income margin %
9.9
%
11.3
%
8.3
%
10.8
Other adjustments (1)
40
30
94
112
Total income from operations
$
118
$
172
$
284
$
429
(1) The following table presents the other adjustments for NCR:
For the Periods Ended
Three Months
Nine Months
In millions
2020
2019
2020
2019
Transformation and restructuring costs
$
19
$
7
$
32
$
47
Acquisition-related amortization of intangible assets
21
22
62
64
Acquisition-related costs
-
1
-
1
Total other adjustments
$
40
$
30
$
94
$
112
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
Schedule C
Assets
Current assets
Cash and cash equivalents
$
1,605
$
1,681
$
509
Accounts receivable, net of allowances of
1,248
1,249
1,490
Inventories
748
782
784
Other current assets
396
424
361
Total current assets
3,997
4,136
3,144
Property, plant and equipment, net
384
394
413
2,828
2,823
2,832
Intangibles, net
547
562
607
Operating lease assets
347
347
391
Prepaid pension cost
193
182
178
Deferred income taxes
871
849
821
Other assets
661
656
601
Total assets
$
9,828
$
9,949
$
8,987
Liabilities and stockholders' equity
Current liabilities
Short-term borrowings
$
222
$
217
$
282
Accounts payable
676
680
840
Payroll and benefits liabilities
289
249
308
Contract liabilities
512
563
502
Other current liabilities
579
585
606
Total current liabilities
2,278
2,294
2,538
Long-term debt
4,266
4,473
3,277
Pension and indemnity plan liabilities
875
864
858
Postretirement and postemployment benefits liabilities
119
114
111
Income tax accruals
94
91
92
Operating lease liabilities
336
334
369
Other liabilities
253
254
240
Total liabilities
8,221
8,424
7,485
Series A convertible preferred stock: par value
408
402
395
Stockholders' equity
NCR stockholders' equity:
Preferred stock: par value
Common stock: par value
1
1
1
Paid-in capital
332
300
312
Retained earnings
1,159
1,134
1,060
Accumulated other comprehensive loss
(297)
(315)
(269)
Total NCR stockholders' equity
1,195
1,120
1,104
Noncontrolling interests in subsidiaries
4
3
3
Total stockholders' equity
1,199
1,123
1,107
Total liabilities and stockholders' equity
$
9,828
$
9,949
$
8,987
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
Schedule D
For the Periods Ended
Three Months
Nine Months
2020
2019
As Revised(1)
2020
2019
As Revised(1)
Operating activities
Net income (loss)
$
32
$
89
$
120
$
215
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations
-
15
15
Loss on debt extinguishment
20
-
20
-
Depreciation and amortization
93
89
269
249
Stock-based compensation expense
31
28
76
76
Deferred income taxes
(16)
(18)
(46)
(35)
Impairment of other assets
-
-
4
-
Gain on sale of property, plant and equipment
-
-
(2)
(6)
Changes in assets and liabilities:
Receivables
13
(83)
266
(154)
Inventories
42
(14)
28
(78)
Current payables and accrued expenses
36
76
(194)
(68)
Contract liabilities
(50)
(39)
6
37
Employee benefit plans
12
(4)
9
(13)
Other assets and liabilities
(1)
16
(61)
(12)
Net cash provided by operating activities
212
155
495
226
Investing activities
Expenditures for property, plant and equipment
(5)
(18)
(23)
(53)
Proceeds from sale of property, plant and equipment
-
-
7
11
Additions to capitalized software
(55)
(64)
(177)
(167)
Business acquisitions, net
-
(74)
(25)
(86)
Purchases of investments
(8)
-
(14)
-
Proceeds from sales of investments
9
-
20
-
Other investing activities, net
(2)
-
(3)
5
Net cash used in investing activities
(61)
(156)
(215)
(290)
Financing activities
Short term borrowings, net
-
-
-
4
Payments on term credit facilities
(3)
(720)
(7)
(759)
Payments on revolving credit facilities
(50)
(1,165)
(716)
(2,079)
Payments of senior unsecured notes
(1,300)
(500)
(1,300)
(500)
Borrowings on term credit facilities
1
350
4
350
Borrowings on revolving credit facilities
56
1,562
1,460
2,459
Proceeds from issuance of senior unsecured notes
1,100
1,000
1,500
1,000
Debt issuance costs
(13)
(28)
(21)
(28)
Call premium paid for debt extinguishment
(15)
-
(15)
-
Series A Preferred Stock Dividends
-
(302)
(6)
(302)
Repurchases of Common Stock
-
(96)
(41)
(96)
Proceeds from employee stock plans
3
2
12
12
Tax withholding payments on behalf of employees
(2)
(13)
(27)
(29)
Net change in client funds obligations
(3)
(2)
(6)
(2)
Principal payments for finance lease obligations
(3)
-
(9)
-
Other financing activities
(1)
(1)
(1)
(1)
Net cash provided by (used in) financing activities
(230)
87
827
29
Cash flows from discontinued operations
Net cash provided by (used in) discontinued operations
(2)
(16)
4
(27)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
-
(8)
(16)
(7)
Increase (decrease) in cash, cash equivalents, and restricted cash
(81)
62
1,095
(69)
Cash, cash equivalents and restricted cash at beginning of period
1,739
401
563
532
Cash, cash equivalents, and restricted cash at end of period
$
1,658
$
463
$
1,658
$
463
(1)
Certain amounts have been revised for the three and nine months ended
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