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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | 10. EMPLOYEE BENEFIT PLANS Pension and Postemployment Plans The Company sponsors defined benefit pension plans. Following the Spin-Off, NCR Atleos assumed the U.S. and certain international pension plan assets and liabilities, along with the associated deferred costs in accumulated other comprehensive loss, which were previously sponsored by the Company. Pursuant to the terms of the Spin-Off transaction documents, the Company is required to contribute 50% of the annual costs of the NCR Atleos U.S. pension plan to the extent NCR Atleos contributes more than $40 million on an annual basis beginning with the plan year ending December 31, 2024. The contribution threshold was not met by NCR Atleos during the year ended December 31, 2024. Internationally, the defined benefit plans are based primarily upon compensation and years of service. Certain international plans also no longer offer additional benefits and are closed to new participants. The Company’s funding policy is to contribute annually no less than the minimum required by applicable laws and regulations. Assets of the Company’s defined benefit plans are primarily invested in common and commingled trusts. The Company recognizes the funded status of each applicable plan on the Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. For pension plans, changes in the fair value of plan assets and net actuarial gains or losses are recognized upon remeasurement, which is at least annually in the fourth quarter of each year. For postemployment plans, changes to the funded status are recognized as a component of other comprehensive loss in stockholders’ equity. Non-U.S. employees are typically covered under government-sponsored programs, and the Company generally does not provide postretirement benefits other than pensions to non-U.S. retirees. The Company generally funds these benefits on a pay-as-you-go basis. The Company offers various postemployment benefits to involuntarily terminated and certain inactive employees after employment but before retirement. These benefits are paid in accordance with the Company’s established postemployment benefit practices and policies. Postemployment benefits include mainly severance as well as continuation of healthcare benefits and life insurance coverage while on disability. The Company provides appropriate accruals for these postemployment benefits. These postemployment benefits are funded on a pay-as-you-go basis. Pension Plans Reconciliation of the beginning and ending balances of the benefit obligations for the Company’s pension plans are as follows:
|  |  |  | International Pension Benefits |  |
In millions |  |  |  |  |  | 2024 |  | 2023 |  |  |  |
Change in benefit obligation |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation as of January 1 |  |  |  |  |  | $ | 192 |  |  | $ | 178 |  |  |  |  |
Net service cost |  |  |  |  |  | 1 |  |  | 2 |  |  |  |  |
Interest cost |  |  |  |  |  | 5 |  |  | 6 |  |  |  |  |
Actuarial (gain) loss |  |  |  |  |  | (10) |  |  | 15 |  |  |  |  |
Benefits paid |  |  |  |  |  | (11) |  |  | (14) |  |  |  |  |
Plan participant contributions |  |  |  |  |  | (3) |  |  | — |  |  |  |  |
Currency translation adjustments |  |  |  |  |  | (12) |  |  | 5 |  |  |  |  |
Benefit obligation as of December 31 |  |  |  |  |  | $ | 162 |  |  | $ | 192 |  |  |  |  |
Accumulated benefit obligation as of December 31 |  |  |  |  |  | $ | 161 |  |  | $ | 191 |  |  |  |  |
A reconciliation of the beginning and ending balances of the fair value of the plan assets of the Company’s pension plans are as follows:
|  |  |  | International Pension Benefits |  |
In millions |  |  |  |  |  | 2024 |  | 2023 |  |  |  |
Change in plan assets |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets as of January 1 |  |  |  |  |  | $ | 56 |  |  | $ | 51 |  |  |  |  |
Actual return on plan assets |  |  |  |  |  | 9 |  |  | 10 |  |  |  |  |
Company contributions |  |  |  |  |  | 12 |  |  | 13 |  |  |  |  |
Benefits paid |  |  |  |  |  | (11) |  |  | (14) |  |  |  |  |
Settlement |  |  |  |  |  | (3) |  |  | — |  |  |  |  |
Currency translation adjustments |  |  |  |  |  | (5) |  |  | (4) |  |  |  |  |
Plan participant contributions |  |  |  |  |  | — |  |  | — |  |  |  |  |
Fair value of plan assets as of December 31 |  |  |  |  |  | $ | 58 |  |  | $ | 56 |  |  |  |  |
The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss as of December 31:
|  |  |  | International Pension Benefits |  |
In millions |  |  |  |  |  | 2024 |  | 2023 |  |  |  |
Funded Status |  |  |  |  |  | $ | (104) |  |  | $ | (136) |  |  |  |  |
Amounts recognized in the Consolidated Balance Sheets |  |  |  |  |  |  |  |  |  |  |  |
Noncurrent assets |  |  |  |  |  | $ | 47 |  |  | $ | 43 |  |  |  |  |
Current liabilities |  |  |  |  |  | (11) |  |  | (12) |  |  |  |  |
Noncurrent liabilities |  |  |  |  |  | (140) |  |  | (167) |  |  |  |  |
Net amounts recognized |  |  |  |  |  | $ | (104) |  |  | $ | (136) |  |  |  |  |
Amounts recognized in accumulated other comprehensive loss |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  |  |  |  |  | — |  |  | — |  |  |  |  |
Total |  |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  |
For pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation and accumulated benefit obligation were $142 million and $141 million, respectively, as of December 31, 2024, and $163 million and $162 million, respectively, as of December 31, 2023. The fair value of assets was zero as of both December 31, 2024 and December 31, 2023. The net periodic benefit (income) cost of the pension plans for the years ended December 31 was as follows:
In millions |  |  | International Pension Benefits |  |
|  |  |  |  |  | 2024 |  | 2023 |  | 2022 |  |  |  |  |  |
Net service cost |  |  |  |  |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 2 |  |  |  |  |  |  |
Interest cost |  |  |  |  |  |  | 5 |  |  | 6 |  |  | 2 |  |  |  |  |  |  |
Expected return on plan assets |  |  |  |  |  |  | (2) |  |  | (2) |  |  | (1) |  |  |  |  |  |  |
Amortization of prior service cost |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |
Actuarial (gain) loss |  |  |  |  |  |  | (12) |  |  | 7 |  |  | (41) |  |  |  |  |  |  |
Net periodic benefit (income) cost |  |  |  |  |  |  | $ | (8) |  |  | $ | 13 |  |  | $ | (38) |  |  |  |  |  |  |
The net actuarial gain in 2024 was primarily due to plan experience gains as well as an increase in discount rates and favorable returns on plan assets. The net actuarial loss in 2023 was primarily due to plan experience losses as well as a decrease in discount rates, partially offset by favorable returns on plan assets. Actuarial gains in 2022 were primarily due to an increase in discount rates partially offset by unfavorable returns on the fair value of plan assets. The weighted average rates and assumptions used to determine benefit obligations as of December 31 were as follows:
|  |  |  | International Pension Benefits |  |
|  |  |  |  |  | 2024 |  | 2023 |  |  |  |
Discount rate |  |  |  |  |  | 3.2 | % |  | 3.0 | % |  |  |  |
Rate of compensation increase |  |  |  |  |  | 2.5 | % |  | 2.4 | % |  |  |  |
The weighted average rates and assumptions used to determine net periodic benefit (income) cost for the years ended December 31 were as follows:
|  |  |  | International Pension Benefits |  |
|  |  |  |  |  |  |  | 2024 |  | 2023 |  | 2022 |  |  |  |  |  |
Discount rate - Service Cost |  |  |  |  |  |  |  | 2.0 | % |  | 1.8 | % |  | 0.8 | % |  |  |  |  |  |
Discount rate - Interest Cost |  |  |  |  |  |  |  | 3.0 | % |  | 3.4 | % |  | 0.7 | % |  |  |  |  |  |
Expected return on plan assets |  |  |  |  |  |  |  | 5.0 | % |  | 5.0 | % |  | 2.1 | % |  |  |  |  |  |
Rate of compensation increase |  |  |  |  |  |  |  | 2.5 | % |  | 1.0 | % |  | 0.9 | % |  |  |  |  |  |
The weighted-average cash balance interest crediting rate for the Company’s cash balance defined benefit plans was 1.5% and 1.4% for the years ended December 31, 2024 and 2023, respectively. The discount rate used to determine the International plans benefit obligations as of December 31, 2024 were derived by examining interest rate levels and trends within each country, particularly yields on high-quality, long-term corporate bonds, relative to our future expected cash flows. The Company employs a building block approach as its primary approach in determining the long-term expected rate of return assumptions for plan assets. Historical market returns are studied and long-term relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatilities generate higher returns over the long run. Current market factors, such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The expected long-term portfolio return is established for each plan via a building block approach with proper rebalancing consideration. The result is then adjusted to reflect additional expected return from active management net of plan expenses. Historical plan returns, the expectations of other capital market participants, and peer data may be used to review and assess the results for reasonableness and appropriateness. Plan Assets The weighted average asset allocations as of December 31, 2024 and 2023 by asset category are as follows:
|  |  |  | International Pension Fund
|  |  |  |  |  | Actual Allocation of Plan Assets as of December 31 |  | Target Asset Allocation
|  |  |  |  |  |  | 2024 |  | 2023 |
Equity and other investments(1) |  |  |  |  |  |  |  | 66 | % |  | 66 | % |  | 62.5%
Debt securities(2) |  |  |  |  |  |  |  | 33 | % |  | 33 | % |  | 37.2%
Other |  |  |  |  |  |  |  | 1 | % |  | 1 | % |  | 0.3%
Total |  |  |  |  |  |  |  | 100 | % |  | 100 | % |  |
(1) Includes equity securities and equities held in comingled trusts. (2) Includes debt securities and debt held in comingled trusts. The fair value of plan assets as of December 31, 2024 and 2023 by asset category is as follows:
|  |  |  | International
In millions | Notes |  |  |  |  |  |  | Fair Value as of December 31, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Not Subject to Leveling
Assets |  |  |  |  |  |  |  |  |  |  |  |
Equity securities and other investments: |  |  |  |  |  |  |  |  |  |  |  |
Common and commingled trusts - Equities | 1 |  |  |  |  |  |  |  | $ | 39 |  | $ | — |  | $ | — |  | $ | — |  | $ | 39 |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |
Common and commingled trusts - Bonds | 1 |  |  |  |  |  |  |  | 19 |  | — |  | — |  | — |  | 19 |
Total |  |  |  |  |  |  |  | $ | 58 |  | $ | — |  | $ | — |  | $ | — |  | $ | 58 |
|  |  |  | International
In millions | Notes |  |  |  |  |  |  | Fair Value as of December 31, 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Not Subject to Leveling
Assets |  |  |  |  |  |  |  |  |  |  |  |
Equity securities and other investments: |  |  |  |  |  |  |  |  |  |  |  |
Common and commingled trusts - Equities | 1 |  |  |  |  |  |  |  | $ | 37 |  | $ | — |  | $ | — |  | $ | — |  | $ | 37 |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |
Common and commingled trusts - Bonds | 1 |  |  |  |  |  |  |  | 19 |  | — |  | — |  | — |  | 19 |
Total |  |  |  |  |  |  |  | $ | 56 |  | $ | — |  | $ | — |  | $ | — |  | $ | 56 |
Notes: 1.Common/collective trusts and registered investment companies (RICs) such as mutual funds are valued using a Net Asset Value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares or units outstanding. The fair value of the underlying securities within the fund, which are generally traded on an active market, are valued at the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches, are employed by the fund manager or independent third party to value investments. Investment Strategy The Company has historically employed a total return investment approach, whereby a mix of fixed-income, equities and real estate investments are used to maximize the long-term return of plan assets subject to a prudent level of risk. The risk tolerance is established for each plan through a careful consideration of plan liabilities, plan funded status and corporate financial condition. When considering assets for investment, the Company considers the expected rate of return and the risk of return, among others, of each potential investment. Investment risk is measured and monitored on an ongoing basis through regular performance reporting, investment manager reviews, actuarial liability measurements and periodic investment strategy reviews. Postemployment Benefits Reconciliation of the beginning and ending balances of the benefit obligation for the Company’s postemployment plan was:
|  | Postemployment Benefits
In millions |  | 2024 |  | 2023
Change in benefit obligation |  |  |  |
Benefit obligation as of January 1 |  | $ | 65 |  |  | $ | 93 |
Service cost |  | 36 |  |  | 15 |
Interest cost |  | 2 |  |  | 2 |
Amendments |  | — |  |  | — |
Benefits paid |  | (55) |  |  | (54) |
Foreign currency exchange |  | — |  |  | — |
Actuarial (gain) loss |  | 7 |  |  | 9 |
Benefit obligation as of December 31 |  | $ | 55 |  |  | $ | 65 |
The following table presents the funded status and the reconciliation of the unfunded status to amounts recognized in the Consolidated Balance Sheets and in Accumulated other comprehensive loss at December 31:
|  | Postemployment Benefits
In millions |  | 2024 |  | 2023
Benefit obligation |  | $ | 55 |  |  | $ | 65 |
Amounts recognized in the Consolidated Balance Sheets |  |  |  |
Current liabilities |  | $ | 14 |  |  | $ | 22 |
Noncurrent liabilities |  | 41 |  |  | 43 |
Net amounts recognized |  | $ | 55 |  |  | $ | 65 |
Amounts recognized in Accumulated other comprehensive loss |  |  |  |
Net actuarial (gain) loss |  | $ | 7 |  |  | $ | 9 |
Amortization of gain (loss) |  | — |  |  | 1 |
Amortization of prior service cost |  | 1 |  |  | 1 |
Total |  | $ | 8 |  |  | $ | 11 |
The net periodic benefit cost of the postemployment plan for the years ended December 31 was:
In millions | Postemployment Benefits
2024 |  | 2023 |  | 2022
Service cost | $ | 36 |  |  | 15 |  |  | 58 |
Interest cost | 2 |  |  | 2 |  |  | 1 |
Amortization of: |  |  |  |  |
Prior service benefit | (1) |  |  | (1) |  |  | (1) |
Actuarial gain | — |  |  | (1) |  |  | — |
Net periodic benefit cost | $ | 37 |  |  | $ | 15 |  |  | $ | 58 |
The weighted average assumptions utilized in accounting for postemployment benefit obligations as of December 31 and for postemployment benefit costs for the years ended December 31 were:
|  | Postemployment Benefit Obligations |  | Postemployment Benefit Costs
|  | 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2022
Discount rate for severance plan |  | 3.9 | % |  | 4.1 | % |  | 4.1 | % |  | 5.1 | % |  | 2.3 | %
Salary increase rate |  | 3.5 | % |  | 3.4 | % |  | 3.4 | % |  | 3.1 | % |  | 2.6 | %
Involuntary turnover rate |  | 3.8 | % |  | 3.8 | % |  | 3.8 | % |  | 3.8 | % |  | 3.8 | %
Cash Flows Related to Employee Benefit Plans Cash Contributions The Company plans to contribute approximately $13 million to the international pension plans in 2025. The Company also plans to make contributions of approximately $13 million to the postemployment plan in 2025. Estimated Future Benefit Payments The Company expects to make the following benefit payments reflecting past and future service from its pension and postemployment plans:
In millions |  |  |  | International Pension Benefits |  |  |  |  |  | Postemployment Benefits
Year |  |  |  |  |  |  |  |  |  |
2025 |  |  |  | $ | 13 |  |  |  |  |  |  | $ | 13 |
2026 |  |  |  | $ | 13 |  |  |  |  |  |  | $ | 7 |
2027 |  |  |  | $ | 13 |  |  |  |  |  |  | $ | 7 |
2028 |  |  |  | $ | 13 |  |  |  |  |  |  | $ | 7 |
2029 |  |  |  | $ | 13 |  |  |  |  |  |  | $ | 7 |
2030-2034 |  |  |  | $ | 52 |  |  |  |  |  |  | $ | 31 |
Savings Plans U.S. employees and many international employees participate in defined contribution savings plans. These plans generally provide either a specified percent of pay or a matching contribution on participating employees’ voluntary elections. The Company’s matching contributions typically are subject to a maximum percentage or level of compensation. Employee contributions can be made pre-tax, after-tax or a combination thereof. The expense under the U.S. plan was approximately $21 million in 2024, $22 million in 2023, and $26 million in 2022. The expense under international and subsidiary savings plans was $14 million in 2024, $11 million in 2023, and $11 million in 2022. Amounts to be Recognized The amounts in Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during 2025 are less than $1 million.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/710/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/712/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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