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Chapter 11 Cases and Dutch Scheme Proceedings, Ability to Continue as a Going Concern and Other Related Matters (Tables) | 9 Months Ended
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Sep. 30, 2023
Reorganizations [Abstract] |
Reorganization Items, Net | Reorganization items, net consisted of the following:
| Successor |  |  | Predecessor |  | Successor |  |  | Predecessor
| 08/12/2023 through 09/30/2023 |  |  | 07/01/2023 through 08/11/2023 |  | 08/12/2023 through 09/30/2023 |  |  | 01/01/2023 through 08/11/2023
Gain on settlement of liabilities subject to compromise (non-cash) | $ | — |  |  |  | $ | 1,570.5 |  |  | $ | — |  |  |  | $ | 1,570.5 |
Fresh start valuation adjustments (non-cash) | — |  |  |  | 686.7 |  |  | — |  |  |  | 686.7 |
Professional fees (cash) | (8.0) |  |  |  | (35.2) |  |  | (8.0) |  |  |  | (38.7) |
Unamortized debt issuance costs (non-cash) | — |  |  |  | — |  |  | — |  |  |  | (124.6) |
DIP premium (non-cash) | — |  |  |  | 32.6 |  |  | — |  |  |  | (384.4) |
Debt make-whole premium (cash) | — |  |  |  | — |  |  | — |  |  |  | (91.0) |
Lease rejection damage claim (cash) | — |  |  |  | (3.8) |  |  | — |  |  |  | (3.8) |
Other (non-cash) | — |  |  |  | (0.5) |  |  | — |  |  |  | (0.6) |
Total Reorganization items, net | $ | (8.0) |  |  |  | $ | 2,250.3 |  |  | $ | (8.0) |  |  |  | $ | 1,614.1 |
Cash paid for Reorganization items, net was $4.7 and $107.2 for the Successor Period from August 12, 2023 through September 30, 2023 and the Predecessor Period, respectively. The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Fresh Start Reporting Date:
Enterprise value | $ | 2,150.0 |
Plus: Excess cash available for operations | 206.1 |
Less: Fair value of Exit Facility | (1,250.0) |
Less: Net pension, post-retirement and other benefits liability | (39.3) |
Less: Other debt | (13.9) |
Less: Noncontrolling interests | (13.9) |
Fair Value of Successor Equity | $ | 1,039.0 |
The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date:
Enterprise value | $ | 2,150.0 |
Plus: Excess cash available for operations | 206.1 |
Less: Net pension, post-retirement and other benefits liability | (39.3) |
Plus: Fair value of non-debt current liabilities | 1,398.3 |
Plus: Fair value of non-debt, non-current liabilities | 225.0 |
Plus: Deferred income taxes, non-current | 238.5 |
Reorganization Value of Successor's Assets to be Allocated | $ | 4,178.6 |
The adjustments included in the following fresh start condensed consolidated balance sheet reflect the effects of the transactions contemplated by the Plans and executed by the Company on the Fresh Start Reporting Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information and significant assumptions with regard to the adjustments recorded and the methods used to determine the fair values.
| Predecessor |  | Reorganization Adjustments | (1) |  | Fresh Start Accounting Adjustments |  |  | Successor
| August 11, 2023 |  |  |  |  |  |  |  | August 12, 2023
ASSETS |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 404.9 |  |  | $ | (13.5) |  | (2) |  | $ | — |  |  |  | $ | 391.4 |
Restricted cash | 60.8 |  |  | — |  |  |  | — |  |  |  | 60.8 |
Short-term investments | 13.9 |  |  | — |  |  |  | — |  |  |  | 13.9 |
Trade receivables, less allowances for doubtful accounts | 623.9 |  |  | — |  |  |  | — |  |  |  | 623.9 |
Inventories | 712.8 |  |  | — |  |  |  | 32.8 |  | (17) |  | 745.6 |
Prepaid expenses | 49.1 |  |  | (3.5) |  | (3) |  | — |  |  |  | 45.6 |
Current assets held for sale | 9.9 |  |  | — |  |  |  | — |  |  |  | 9.9 |
Other current assets | 247.8 |  |  | — |  |  |  | — |  |  |  | 247.8 |
Total current assets | 2,123.1 |  |  | (17.0) |  |  |  | 32.8 |  |  |  | 2,138.9 |
Securities and other investments | 7.0 |  |  | — |  |  |  | — |  |  |  | 7.0 |
Property, plant, and equipment, net of accumulated depreciation and amortization | 120.3 |  |  | — |  |  |  | 46.2 |  | (18) |  | 166.5 |
Deferred income taxes | — |  |  | 70.3 |  | (4) |  | (10.8) |  | (19) |  | 59.5 |
Goodwill | 714.3 |  |  | — |  |  |  | (93.3) |  | (20) |  | 621.0 |
Customer relationships, net | 176.1 |  |  | — |  |  |  | 378.2 |  | (21) |  | 554.3 |
Other intangible assets, net | 45.1 |  |  | — |  |  |  | 320.0 |  | (22) |  | 365.1 |
Other assets | 256.8 |  |  | — |  |  |  | 9.5 |  | (23) |  | 266.3 |
Total assets | $ | 3,442.7 |  |  | $ | 53.3 |  |  |  | $ | 682.6 |  |  |  | $ | 4,178.6 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |
Notes payable | $ | 1,254.9 |  |  | $ | (1,250.0) |  | (5) |  | $ | — |  |  |  | $ | 4.9 |
Accounts payable | 461.0 |  |  | — |  |  |  | — |  |  |  | 461.0 |
Deferred revenue | 421.0 |  |  | — |  |  |  | — |  |  |  | 421.0 |
Payroll and other benefits liabilities | 159.2 |  |  | (0.1) |  | (6) |  | — |  |  |  | 159.1 |
Current liabilities held for sale | 10.2 |  |  | — |  |  |  | 0.7 |  | (24) |  | 10.9 |
DIP facility premium | 384.4 |  |  | (384.4) |  | (7) |  | — |  |  |  | — |
Other current liabilities | 343.3 |  |  | 5.5 |  | (8) |  | 1.5 |  | (25) |  | 350.3 |
Total current liabilities | 3,034.0 |  |  | (1,629.0) |  |  |  | 2.2 |  |  |  | 1,407.2 |
Long-term debt | 4.2 |  |  | 1,248.7 |  | (9) |  | 0.8 |  | (26) |  | 1,253.7 |
Pensions, post-retirement and other benefits | 102.3 |  |  | — |  |  |  | (0.3) |  | (27) |  | 102.0 |
Deferred income taxes | 85.8 |  |  | (26.4) |  | (4) |  | 179.1 |  | (19) |  | 238.5 |
Other liabilities | 120.3 |  |  | — |  |  |  | 4.0 |  | (28) |  | 124.3 |
Liabilities subject to compromise | 2,232.4 |  |  | (2,232.4) |  | (10) |  | — |  |  |  | — |
Total liabilities | $ | 5,579.0 |  |  | (2,639.1) |  |  |  | 185.8 |  |  |  | 3,125.7 |
Equity |  |  |  |  |  |  |  |  |
Diebold Nixdorf, Incorporated shareholders' equity |  |  |  |  |  |  |  |  |
Predecessor common shares | 121.2 |  |  | (121.2) |  | (11) |  | — |  |  |  | — |
Successor common stock | — |  |  | 0.4 |  | (12) |  | — |  |  |  | 0.4 |
Paid-in capital; predecessor | 832.3 |  |  | (442.3) |  | (13) |  | (390.0) |  | (29) |  | — |
Paid-in capital; successor | — |  |  | 1,038.6 |  | (14) |  | — |  |  |  | 1,038.6 |
Retained earnings (accumulated deficit) | (2,204.8) |  |  | 1,659.4 |  | (15) |  | 545.4 |  | (29) |  | — |
Treasury shares, at cost | (586.4) |  |  | 586.4 |  | (13) |  | — |  |  |  | — |
Accumulated other comprehensive income (loss) | (320.0) |  |  | (8.8) |  | (16) |  | 328.8 |  | (29) |  | — |
Equity warrants | 20.1 |  |  | (20.1) |  | (13) |  | — |  |  |  | — |
Total Diebold Nixdorf, Incorporated shareholders' equity (deficit) | (2,137.6) |  |  | 2,692.4 |  |  |  | 484.2 |  |  |  | 1,039.0 |
Noncontrolling interests | 1.3 |  |  | — |  |  |  | 12.6 |  | (30) |  | 13.9 |
Total equity (deficit) | (2,136.3) |  |  | 2,692.4 |  |  |  | 496.8 |  |  |  | 1,052.9 |
Total liabilities and equity (deficit) | $ | 3,442.7 |  |  | $ | 53.3 |  |  |  | $ | 682.6 |  |  |  | $ | 4,178.6 |
Reorganization Adjustments (1) Represent amounts recorded as of the Fresh Start Reporting Date for the implementation of the Plans, including, among other items, settlement of the Predecessor's liabilities subject to compromise, distributions of cash, conversion of the DIP Facility to the Exit Facility, and the issuance of the Successor common stock. (2) Changes in cash and cash equivalents include the following:
Payment of interest on the DIP Facility | $ | (1.8) |
Payment to holders of the 2024 Stub Unsecured Notes Claims | (3.5) |
Payment of lease rejection damages | (3.8) |
Payment of professional fees | (4.4) |
Net change in cash and cash equivalents | $ | (13.5) |
(3) Reflects the elimination of prepaid directors and officers insurance policies related to the Predecessor. (4) Change in deferred tax assets and liabilities as a result of release of valuation allowance, partially offset by reduction of estimated tax attributes due to cancellation of debt. (5) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities, based on the maturity of the debt. (6) Reflects the acceleration and cancellation of unvested Predecessor stock compensation awards. (7) Represents the issuance of Successor common stock to the settle the DIP Facility premiums. (8) Changes in other current liabilities includes the following:
Accrual of professional fees | $ | 6.3
Accrual of German transfer tax | 5.0
Accrual of deferred financing fees | 1.3
Cancellation of unvested Predecessor stock compensation awards | (0.9)
Payment of interest on the DIP Facility | (1.8)
Payment of professional fees | (4.4)
Net change in other current liabilities | $ | 5.5
(9) Represents the conversion of the DIP Facility to the Exit Facility and the reclassification of debt from current liabilities to non-current liabilities ($1,250.0) and recording of deferred financing fees ($1.3), based on the maturity of the debt. (10) Liabilities Subject to Compromise were settled in accordance with the Plans and the resulting gain was determined as follows:
Debt subject to compromise | $ | 2,160.5 |
Accrued interest on debt subject to compromise | 68.1 |
Lease liability | 3.8 |
Total liabilities subject to compromise | $ | 2,232.4 |
Less: Distribution of common stock to holders of First Lien Claims and Second Lien Notes Claims | (654.6) |
Less: Payment to holders of the 2024 Stub Unsecured Notes Claims | (3.5) |
Less: Payment of lease rejection damages | (3.8) |
Gain on Settlement of Liabilities Subject to Compromise | $ | 1,570.5 |
(11) Represents the cancellation of Predecessor common shares at par value. (12) Reflects the par value of Successor common stock issued to holders of the First Lien Claims and Second Lien Notes Claims ($0.3) and the DIP Facility premiums ($0.1), pursuant to the Plans. (13) Change in Predecessor paid-in-capital reflect the following:
Cancellation of Predecessor common shares at par value | $ | 121.2 |
Cancellation of Predecessor equity warrants | 20.1 |
Acceleration of the vesting of Predecessor equity awards upon the Effective Date | 2.8 |
Cancellation of Predecessor treasury stock, at cost | (586.4) |
Change in Predecessor paid-in-capital | $ | (442.3) |
(14) Represents paid in capital associated with the issuance of Successor common stock to holders of First Lien Claims and Second Lien Notes Claims ($654.3) and the DIP Facility premiums ($384.3), pursuant to the Plans. (15) Net change in accumulated deficit includes the following:
Gain on Settlement of Liabilities Subject to Compromise | $ | 1,570.5 |
Net deferred tax impacts on the effectiveness of the Plans | 96.7 |
Elimination of unvested Predecessor stock compensation awards (liability classified) | 0.8 |
Accrual of professional fees | (6.3) |
Elimination of prepaid directors and officers insurance policies related to the Predecessor | (3.5) |
Acceleration of the vesting of Predecessor equity awards upon the Effective Date | (2.6) |
Elimination of accumulated other comprehensive income related to interest rate swaps | 8.8 |
Accrual of German transfer tax | (5.0) |
Net change in accumulated deficit | $ | 1,659.4 |
(16) Represents the elimination of accumulated other comprehensive income related to interest rate swaps. Fresh Start Accounting Adjustments Amounts presented for "Predecessor Historical Value" represents the carrying value of the asset/liability prior to the implementation of the Plans. (17) Reflects adjustments to inventory at its estimated fair value due to the adoptions of Fresh Start Accounting.
| Successor Fair Value |  | Predecessor Historical Value
Raw materials and work in process, net | $ | 226.4 |  |  | $ | 232.7 |
Finished goods, net | 347.3 |  |  | 308.2 |
Total product inventories | 573.7 |  |  | 540.9 |
Service parts | 171.9 |  |  | 171.9 |
Total inventories | $ | 745.6 |  |  | $ | 712.8 |
(18) Changes in property, plant and equipment reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of property, plant, and equipment:
| Successor Fair Value |  | Predecessor Historical Value
Land and land improvements | $ | 21.5 |  |  | $ | 10.4 |
Buildings and building improvements | 42.3 |  |  | 70.5 |
Leasehold improvements | 6.1 |  |  | 17.4 |
Computer equipment | 16.1 |  |  | 105.1 |
Computer software | 5.9 |  |  | 128.7 |
Furniture and fixtures | 17.3 |  |  | 55.9 |
Tooling | 11.1 |  |  | 137.5 |
Machinery, tools and equipment | 32.4 |  |  | 83.4 |
Construction in progress | 13.8 |  |  | 12.2 |
Total property, plant and equipment, at cost | 166.5 |  |  | 621.1 |
Less accumulated depreciation and amortization | — |  |  | (500.8) |
Total property, plant, and equipment, net | $ | 166.5 |  |  | $ | 120.3 |
(19) Adjustments to deferred income taxes for changes in financial reporting basis of assets and liabilities as a result of the adoption of fresh start accounting. (20) Reflects adjustment to goodwill for the excess of the reorganization value of assets over the fair value of identifiable tangible and intangible assets. (21) Changes in customer relationships reflects the fair value adjustment due to the adoption of Fresh Start Accounting. (22) Changes in other intangible assets reflects the fair value adjustment due to the adoption of Fresh Start Accounting. The following table summarizes the components of other intangible assets:
| Successor Fair Value |  | Predecessor Historical Value
Capitalized software development | 13.8 |  |  | 260.4 |
Development costs non-software | 32.2 |  |  | 50.4 |
Tradenames and trademarks | 118.6 |  |  | — |
Technology know-how | 160.8 |  |  | — |
Other intangibles | 39.7 |  |  | 51.8 |
Other intangible assets, at cost | 365.1 |  |  | 362.6 |
Less accumulated amortization | — |  |  | (317.5) |
Total intangibles, net | $ | 365.1 |  |  | $ | 45.1 |
(23) Changes in other assets reflects fair value adjustments from implementation of Fresh Start Accounting. The following table summarizes the components of other assets:
| Successor Fair Value |  | Predecessor Historical Value
Cloud projects, at cost | 19.9 |  |  | 25.6 |
Less accumulated depreciation and amortization | — |  |  | (5.3) |
Cloud projects, net | 19.9 |  |  | 20.3 |
Right-of-use operating lease assets | 102.2 |  |  | 89.6 |
Right-of-use finance lease assets | 8.7 |  |  | 7.9 |
Joint ventures | 30.3 |  |  | 33.7 |
Pensions, post-retirement and other benefits | 71.3 |  |  | 71.4 |
Other assets | 33.9 |  |  | 33.9 |
Total other assets | $ | 266.3 |  |  | $ | 256.8 |
(24) Reflects changes in the fair value of current liabilities held for sale due to the adoption of Fresh Start Accounting. (25) Reflects changes in the fair value of operating lease liabilities ($0.8 increase) and finance lease liability ($0.7 increase) due to the adoption of Fresh Start Accounting. (26) Reflects changes in the finance lease liabilities ($0.8 increase) due to the adoption of Fresh Start Accounting. (27) Reflects the remeasurement adjustment to pensions, post-retirement benefits, and other benefits driven by changes in actuarial assumptions. (28) Reflects changes in the fair value of operating lease liabilities ($6.2 increase) and other liabilities ($2.2 decrease) due to the adoption of Fresh Start Accounting. (29) Reflects the cumulative impact of Fresh Start Accounting adjustments discussed above and below and the elimination of Predecessor capital in excess of par value and Predecessor accumulated deficit.
Customer relationships, net | 378.2
Other intangible assets | 320.0 |
Other assets fair value adjustments | 9.5 |
Property, plant and equipment | 46.2 |
Inventories | 32.8 |
Current Liabilities | (2.2) |
Long-term debt | (0.8) |
Pensions, post-retirement and other benefits | 0.3 |
Other long-term liabilities | (4.0) |
Goodwill | (93.3) |
Fresh start valuation gain | $ | 686.7 |
Deferred income taxes | (189.9) |
Fresh start valuation adjustment for noncontrolling interest | (12.6) |
Elimination of Predecessor paid-in-capital | 390.0 |
Elimination of Predecessor other comprehensive loss | (328.8) |
Net Change in Accumulated Deficit | $ | 545.4 |
(30) Reflects the fair value adjustment to noncontrolling interests in certain consolidated subsidiaries.

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- Definition Tabular disclosure of reorganization under Chapter 11 of Bankruptcy Code. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481372/852-10-55-10 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481404/852-10-50-7 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481404/852-10-50-7 + Details
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