NCR
Corporation (NYSE: NCR) announced today that, in accordance with the
selection made by the fiduciary of its U.S. qualified pension plan (the
“Plan”), the Company has entered into an agreement (the “Agreement”)
with Principal
Life Insurance Company (“The Principal”). Pursuant to the Agreement,
the Plan purchased a single premium group annuity contract from The
Principal in order to secure approximately $160 million of benefits for
approximately 4,500 former employees or their related beneficiaries who
commenced monthly pension benefits under the Plan before January 1,
1994. This group annuity contract does not affect active employees,
former employees who have not commenced monthly benefits under the Plan,
or former employees or their beneficiaries who commenced monthly
benefits under the Plan on or after January 1, 1994.
“This group annuity contract purchase is part of our pension
transformation and is consistent with our overall strategy to address
our legacy issues,” said John Boudreau, NCR Treasurer. “Since this
contract was purchased with existing Plan assets, no additional funding
of the Plan was required for this purchase. The Plan's funded status is
expected to remain materially unchanged as a result of this group
annuity contract purchase.”
This group annuity contract purchase is not expected to have a material
impact on NCR’s financial results. Any impact of this purchase will be
included in the year-end 2014 mark-to-market adjustment. NCR anticipates
that the single premium group annuity contract will be issued by The
Principal in 2015.
In March 2015, additional details will be provided in letters and other
materials that will be sent to affected former employees or their
beneficiaries who commenced monthly benefits under the Plan before
January 1, 1994. The amount of the future monthly benefit payment for
each of these individuals under this group annuity contract will equal
the amount of such individual’s monthly benefit payable under the terms
of the Plan.
Additionally, this group annuity contract provides the same rights to
future payments, such as survivor benefits, that are currently provided
under the terms of the Plan. No action will be required of any former
employee or beneficiary in order to continue to receive such benefits.
More information is available by visiting the NCR website at: http://www.ncr.com/home/pension-transformation.
Participants may also access Plan information through the NCR Benefits
Service Center website at www.netbenefits.com
or by telephone at 1-800-245-9035. General information about The
Principal can be found on its website at http://www.principal.com/about/index.htm.
About NCR Corporation
NCR Corporation (NYSE: NCR) is the global leader in consumer transaction
technologies, turning everyday interactions with businesses into
exceptional experiences. With its software, hardware, and portfolio of
services, NCR enables more than 485 million transactions daily across
retail, financial, travel, hospitality, telecom and technology, and
small business. NCR solutions run the everyday transactions that make
your life easier.
NCR is headquartered in Duluth, Georgia with approximately 29,000
employees and does business in 180 countries. NCR is a trademark of NCR
Corporation in the United States and other countries. The company
encourages investors to visit its web site which is updated regularly
with financial and other important information about NCR.
Web site: www.ncr.com,
www.ncrsilver.com
Twitter: @NCRCorporation
Facebook: NCR
Corp.
LinkedIn: NCR
Corporation
YouTube: www.youtube.com/user/ncrcorporation
Notes to investors
This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements use words such as “expect,” “anticipate,” “intend,”
“believe,” “will,” “should,” “would,” “could” and words of similar
meaning. Statements that describe or relate to NCR’s future plans,
goals, intentions, strategies or financial outlook, and statements that
do not relate to historical or current fact, are examples of
forward-looking statements. The forward-looking statements in this
release include statements about NCR’s pension strategy and the
financial impact of the annuitization of pension benefits of certain
former employees or their beneficiaries. 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:
domestic and global economic and credit conditions; the impact of our
indebtedness and its terms on our financial and operating activities;
our ability to successfully introduce new solutions and compete and in
the information technology industry; the transformation of our business
model and our ability to sell higher-margin software and services;
defects or errors in our products; manufacturing disruptions; the
historical seasonality of our sales; foreign currency fluctuations; the
availability and success of acquisitions, divestitures and alliances;
our pension strategy and underfunded pension obligation; tax rates;
compliance with data privacy and protection requirements; reliance on
third party suppliers; development and protection of intellectual
property; workforce turnover and the ability to attract and retain
skilled employees; environmental exposures from our historical and
ongoing manufacturing activities; and uncertainties with regard to
regulations, lawsuits, claims and other matters across various
jurisdictions. Additional information concerning these and other factors
can be found in NCR’s filings with the U.S. Securities and Exchange
Commission, including NCR’s most recent annual report on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form 8-K. Any
forward-looking statement speaks only as of the date on which it is
made. NCR does not undertake any obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
Copyright Business Wire 2014