XML 39 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Supplemental Guarantor Information
 6 Months Ended
Jun. 30, 2020
Supplemental Guarantor Information [Abstract]  
Condensed Financial Statements [Text Block] Supplemental Guarantor Information
Diebold Nixdorf, Incorporated issued the 2024 Senior Notes in an offering exempt from the registration requirements of the Securities Act of 1933 (the Securities Act). The 2024 Senior Notes are and will be guaranteed by certain of Diebold Nixdorf, Incorporated's existing and future subsidiaries. The following presents the condensed consolidating financial information separately for:

(i)Diebold Nixdorf, Incorporated (the Parent Company), the issuer of the guaranteed obligations;

(ii)Domestic guarantor subsidiaries, on a combined basis, as specified in the indenture governing the Company's obligations under the 2024 Senior Notes;

(iii)Non-guarantor subsidiaries, on a combined basis;

(iv)Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between the Parent Company, the guarantor subsidiaries, and the non-guarantor subsidiaries, (b) eliminate the investments in its subsidiaries, and (c) record consolidating entries; and

(v)Diebold Nixdorf, Incorporated and subsidiaries on a consolidated basis.

Each guarantor subsidiary is 100 percent owned by the Parent Company at the date of each balance sheet presented. The 2024 Senior Notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the condensed consolidated financial statements, except for the use by the Parent Company and the guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of capital stock of various subsidiaries, loans and other capital transactions between members of the consolidated group.

Certain non-guarantor subsidiaries of the Parent Company are limited in their ability to remit funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or limitations in credit agreements or other debt instruments of those subsidiaries.
Condensed Consolidating Balance Sheet
As of June 30, 2020
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
ASSETS
Current assets
Cash, cash equivalents and restricted cash$194.5  $—  $251.9  $—  $446.4  
Short-term investments—  —  9.0  —  9.0  
Trade receivables, net122.4  0.1  466.3  —  588.8  
Intercompany receivables600.0  549.8  670.2  (1,820.0) —  
Inventories115.3  —  403.0  (4.9) 513.4  
Prepaid, income taxes and other current assets20.1  7.9  317.6  (7.8) 337.8  
Total current assets1,052.3  557.8  2,118.0  (1,832.7) 1,895.4  
Securities and other investments17.4  —  —  —  17.4  
Property, plant and equipment, net52.0  —  153.5  —  205.5  
Goodwill55.5  —  719.6  —  775.1  
Deferred income taxes71.8  6.4  57.1  —  135.3  
Customer relationships, net—  —  409.2  —  409.2  
Investment in subsidiary1,589.6  —  —  (1,589.6) —  
Long-term intercompany receivables615.9  —  —  (615.9) —  
Other assets52.0  3.4  227.8  —  283.2  
Total assets$3,506.5  $567.6  $3,685.2  $(4,038.2) $3,721.1  
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities
Notes payable$93.2  $—  $8.9  $—  $102.1  
Accounts payable81.4  —  398.2  —  479.6  
Intercompany payable1,220.0  45.2  554.8  (1,820.0) —  
Deferred revenue107.5  —  193.1  —  300.6  
Payroll and other benefits liabilities44.6  —  116.4  —  161.0  
Other current liabilities96.7  0.9  394.8  (7.8) 484.6  
Total current liabilities1,643.4  46.1  1,666.2  (1,827.8) 1,527.9  
Long-term debt2,360.7  —  1.7  —  2,362.4  
Long-term intercompany payable—  —  615.9  (615.9) —  
Other long-term liabilities205.4  —  313.8  —  519.2  
Redeemable noncontrolling interests—  —  20.1  —  20.1  
Total Diebold Nixdorf, Incorporated shareholders' equity(703.0) 521.5  1,073.0  (1,594.5) (703.0) 
Noncontrolling interests—  —  (5.5) —  (5.5) 
Total liabilities, redeemable noncontrolling interests and equity$3,506.5  $567.6  $3,685.2  $(4,038.2) $3,721.1  
Condensed Consolidating Balance Sheet
As of December 31, 2019
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
ASSETS
Current assets
Cash, cash equivalents and restricted cash$3.6  $1.8  $275.5  $—  $280.9  
Short-term investments—  —  10.0  —  10.0  
Trade receivables, net109.0  —  510.3  —  619.3  
Intercompany receivables632.6  559.3  747.6  (1,939.5) —  
Inventories122.4  —  346.4  (2.3) 466.5  
Prepaid, income taxes and other current assets42.1  7.8  473.2  (7.8) 515.3  
Total current assets909.7  568.9  2,363.0  (1,949.6) 1,892.0  
Securities and other investments21.4  —  —  —  21.4  
Property, plant and equipment, net61.9  0.5  169.1  —  231.5  
Goodwill55.5  —  708.5  —  764.0  
Deferred income taxes51.1  6.4  63.3  —  120.8  
Customer relationships, net—  —  447.7  —  447.7  
Investment in subsidiary1,676.8  —  —  (1,676.8) —  
Long-term intercompany receivables617.9  —  —  (617.9) —  
Other assets64.3  0.1  248.8  —  313.2  
Total assets$3,458.6  $575.9  $4,000.4  $(4,244.3) $3,790.6  
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities
Notes payable$26.6  $—  $5.9  $—  $32.5  
Accounts payable55.3  —  416.2  —  471.5  
Intercompany payable1,302.3  46.7  590.5  (1,939.5) —  
Deferred revenue133.7  —  186.8  —  320.5  
Payroll and other benefits liabilities49.4  2.1  173.2  —  224.7  
Other current liabilities109.5  1.0  447.7  (7.8) 550.4  
Total current liabilities1,676.8  49.8  1,820.3  (1,947.3) 1,599.6  
Long-term debt2,107.4  —  1.3  —  2,108.7  
Pensions, post-retirement and other benefits160.3  —  77.4  —  237.7  
Long-term intercompany payable—  —  617.9  (617.9) —  
Other long-term liabilities42.7  —  287.3  —  330.0  
Redeemable noncontrolling interests—  —  20.9  —  20.9  
Total Diebold Nixdorf, Incorporated shareholders' equity(528.6) 526.1  1,151.3  (1,679.1) (530.3) 
Noncontrolling interests—  —  24.0  —  24.0  
Total liabilities, redeemable noncontrolling interests and equity$3,458.6  $575.9  $4,000.4  $(4,244.3) $3,790.6  
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Three Months Ended June 30, 2020
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
Net sales$276.1  $0.1  $697.2  $(82.9) $890.5  
Cost of sales190.9  0.1  527.8  (75.9) 642.9  
Gross profit (loss)85.2  —  169.4  (7.0) 247.6  
Selling and administrative expense86.8  0.1  94.7  —  181.6  
Research, development and engineering expense5.4  1.5  28.6  (4.8) 30.7  
Loss on sale of assets, net0.1  —  14.7  —  14.8  
92.3  1.6  138.0  (4.8) 227.1  
Operating (loss) income(7.1) (1.6) 31.4  (2.2) 20.5  
Other income (expense)
Interest income—  —  2.4  —  2.4  
Interest expense(46.6) —  (1.7) —  (48.3) 
Foreign exchange (loss) gain, net0.7  —  (8.3) —  (7.6) 
Miscellaneous, net28.2  (0.2) (14.4) (7.1) 6.5  
(Loss) income before taxes(24.8) (1.8) 9.4  (9.3) (26.5) 
Income tax (benefit) expense(14.7) (2.4) 13.7  —  (3.4) 
Equity in earnings of subsidiaries(13.6) —  —  13.6  —  
Net (loss) income(23.7) 0.6  (4.3) 4.3  (23.1) 
Net income attributable to noncontrolling interests—  —  0.6  —  0.6  
Net (loss) income attributable to Diebold Nixdorf, Incorporated$(23.7) $0.6  $(4.9) $4.3  $(23.7) 
Comprehensive (loss) income$21.4  $0.6  $26.9  $(26.9) $22.0  
Less: comprehensive income attributable to noncontrolling interests—  —  0.6  —  0.6  
Comprehensive (loss) income attributable to Diebold Nixdorf, Incorporated$21.4  $0.6  $26.3  $(26.9) $21.4  
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Three Months Ended June 30, 2019
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
Net sales$301.6  $(0.1) $949.0  $(100.3) $1,150.2  
Cost of sales241.3  0.2  727.5  (98.0) 871.0  
Gross profit (loss)60.3  (0.3) 221.5  (2.3) 279.2  
Selling and administrative expense87.7  1.0  135.4  —  224.1  
Research, development and engineering expense1.5  8.3  31.1  (4.8) 36.1  
Gain on sale of assets, net0.6  —  11.1  —  11.7  
89.8  9.3  177.6  (4.8) 271.9  
Operating loss(29.5) (9.6) 43.9  2.5  7.3  
Other income (expense)
Interest income0.4  —  1.8  —  2.2  
Interest expense(46.9) —  (3.0) —  (49.9) 
Foreign exchange (loss) gain, net2.0  (0.1) (7.0) —  (5.1) 
Miscellaneous, net8.4  0.5  (9.6) 0.3  (0.4) 
Loss before taxes(65.6) (9.2) 26.1  2.8  (45.9) 
Income tax (benefit) expense1.5  (1.5) 9.2  —  9.2  
Equity in earnings of subsidiaries16.8  —  (0.2) (16.8) (0.2) 
Net (loss) income(50.3) (7.7) 16.7  (14.0) (55.3) 
Net (loss) income attributable to noncontrolling interests—  —  (5.0) —  (5.0) 
Net (loss) income attributable to Diebold Nixdorf, Incorporated$(50.3) $(7.7) $21.7  $(14.0) $(50.3) 
Comprehensive (loss) income$(31.7) $(7.7) $14.2  $(14.0) $(39.2) 
Less: comprehensive income (loss) attributable to noncontrolling interests—  —  (7.5) —  (7.5) 
Comprehensive (loss) income attributable to Diebold Nixdorf, Incorporated$(31.7) $(7.7) $21.7  $(14.0) $(31.7) 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Six Months Ended June 30, 2020
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
Net sales$545.5  $0.1  $1,399.0  $(143.4) $1,801.2  
Cost of sales379.3  0.1  1,076.8  (129.4) 1,326.8  
Gross profit (loss)166.2  —  322.2  (14.0) 474.4  
Selling and administrative expense198.3  0.3  205.1  —  403.7  
Research, development and engineering expense10.5  4.3  58.6  (10.2) 63.2  
Loss on sale of assets, net0.1  —  12.9  —  13.0  
208.9  4.6  276.6  (10.2) 479.9  
Operating (loss) income(42.7) (4.6) 45.6  (3.8) (5.5) 
Other income (expense)
Interest income—  —  3.5  —  3.5  
Interest expense(92.2) —  (4.1) —  (96.3) 
Foreign exchange (loss) gain, net(4.1) —  (3.1) —  (7.2) 
Miscellaneous, net49.9  —  (37.8) (6.5) 5.6  
(Loss) income before taxes(89.1) (4.6) 4.1  (10.3) (99.9) 
Income tax (benefit) expense(10.3) (4.4) 31.3  —  16.6  
Equity in earnings of subsidiaries(37.7) —  —  37.7  —  
Net (loss) income(116.5) (0.2) (27.2) 27.4  (116.5) 
Net (loss) income attributable to noncontrolling interests—  —  —  —  —  
Net (loss) income attributable to Diebold Nixdorf, Incorporated$(116.5) $(0.2) $(27.2) $27.4  $(116.5) 
Comprehensive (loss) income$(175.6) $(0.2) $(68.8) $67.7  $(176.9) 
Less: comprehensive income (loss) attributable to noncontrolling interests—  —  (1.3) —  (1.3) 
Comprehensive (loss) income attributable to Diebold Nixdorf, Incorporated$(175.6) $(0.2) $(67.5) $67.7  $(175.6) 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Six Months Ended June 30, 2019
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
Net sales$597.1  $—  $1,800.3  $(219.1) $2,178.3  
Cost of sales484.3  0.4  1,376.4  (208.1) 1,653.0  
Gross profit (loss)112.8  (0.4) 423.9  (11.0) 525.3  
Selling and administrative expense171.7  2.1  280.6  —  454.4  
Research, development and engineering expense2.7  17.1  62.6  (9.4) 73.0  
Loss on sale of assets, net0.6  —  14.5  —  15.1  
175.0  19.2  357.7  (9.4) 542.5  
Operating loss(62.2) (19.6) 66.2  (1.6) (17.2) 
Other income (expense)
Interest income1.3  —  3.8  —  5.1  
Interest expense(94.4) —  (6.4) —  (100.8) 
Foreign exchange (loss) gain, net0.6  (0.1) (2.8) —  (2.3) 
Miscellaneous, net21.0  0.8  (21.1) (2.5) (1.8) 
Loss before taxes(133.7) (18.9) 39.7  (4.1) (117.0) 
Income tax (benefit) expense42.5  (7.9) 35.0  —  69.6  
Equity in earnings of subsidiaries(6.8) (1.0) (0.6) 7.8  (0.6) 
Net (loss) income(183.0) (12.0) 4.1  3.7  (187.2) 
Net (loss) income attributable to noncontrolling interests—  —  (4.2) —  (4.2) 
Net (loss) income attributable to Diebold Nixdorf, Incorporated$(183.0) $(12.0) $8.3  $3.7  $(183.0) 
Comprehensive (loss) income$(166.3) $(12.0) $(7.7) $15.7  $(170.3) 
Less: comprehensive income (loss) attributable to noncontrolling interests—  —  (4.0) —  (4.0) 
Comprehensive (loss) income attributable to Diebold Nixdorf, Incorporated$(166.3) $(12.0) $(3.7) $15.7  $(166.3) 
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2020
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
Net cash provided (used) by operating activities$(118.8) $(10.1) $(41.7) $—  $(170.6) 
Cash flow from investing activities
Capital expenditures(2.1) —  (6.7) —  (8.8) 
Proceeds from divestitures, net of cash divested—  —  (47.9) —  (47.9) 
Proceeds from maturities of investments—  —  104.1  —  104.1  
Payments for purchases of investments—  —  (103.0) —  (103.0) 
Increase in certain other assets9.9  —  (8.7) —  1.2  
Capital contributions and loans paid(12.1) —  —  12.1  —  
Proceeds from intercompany loans9.4  —  —  (9.4) —  
Net cash provided (used) by investing activities5.1  —  (62.2) 2.7  (54.4) 
Cash flow from financing activities
Debt issuance costs(3.8) —  —  —  (3.8) 
Revolving credit facility borrowings385.9  —  —  —  385.9  
Other debt borrowings—  —  20.0  —  20.0  
Other debt repayments(72.8) —  (17.7) —  (90.5) 
Other(4.7) —  (0.8) —  (5.5) 
Capital contributions received and loans incurred—  12.1  —  (12.1) —  
Payments on intercompany loans—  (3.8) (5.6) 9.4  —  
Net cash provided (used) by financing activities304.6  8.3  (4.1) (2.7) 306.1  
Effect of exchange rate changes on cash and cash equivalents—  —  (10.8) —  (10.8) 
Increase (decrease) in cash, cash equivalents and restricted cash190.9  (1.8) (118.8) —  70.3  
Add: Cash included in assets held for sale at beginning of period—  —  97.2  —  97.2  
Less: Cash included in assets held for sale at end of period—  —  2.0  —  2.0  
Cash, cash equivalents and restricted cash at the beginning of the period3.6  1.8  275.5  —  280.9  
Cash, cash equivalents and restricted cash at the end of the period$194.5  $—  $251.9  $—  $446.4  
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2019
ParentDomestic
Guarantor
Subsidiaries		Non-
Guarantor
Subsidiaries		Consolidating
Entries and
Eliminations		Consolidated
Net cash used by operating activities$54.7  $(21.0) $(101.3) $—  $(67.6) 
Cash flow from investing activities
Capital expenditures(2.2) —  (18.1) —  (20.3) 
Proceeds from maturities of investments1.2  —  107.0  —  108.2  
Payments for purchases of investments—  —  (85.8) —  (85.8) 
Proceeds from sale of assets0.1  —  8.1  —  8.2  
Increase in certain other assets(3.4) —  (8.4) —  (11.8) 
Capital contributions and loans paid(27.4) —  —  27.4  —  
Proceeds from intercompany loans9.9  —  —  (9.9) —  
Net cash provided (used) by investing activities(21.8) —  2.8  17.5  (1.5) 
Cash flow from financing activities
Revolving credit facility (repayments) borrowings, net(25.0) —  15.0  —  (10.0) 
Other debt borrowings—  —  19.6  —  19.6  
Other debt repayments(13.6) —  (29.3) —  (42.9) 
Distributions and payments to noncontrolling interest holders—  —  (98.0) —  (98.0) 
Other(1.6) —  —  —  (1.6) 
Capital contributions received and loans incurred—  27.0  0.4  (27.4) —  
Payments on intercompany loans—  (6.8) (3.1) 9.9  —  
Net cash provided (used) by financing activities(40.2) 20.2  (95.4) (17.5) (132.9) 
Effect of exchange rate changes on cash and cash equivalents—  —  0.2  —  0.2  
Decrease in cash, cash equivalents and restricted cash(7.3) (0.8) (193.7) —  (201.8) 
Add: Cash included in assets held for sale at beginning of period—  —  7.3  —  7.3  
Less: Cash included in assets held for sale at end of period—  —  4.1  —  4.1  
Cash, cash equivalents and restricted cash at the beginning of the period17.3  2.7  438.4  —  458.4  
Cash, cash equivalents and restricted cash at the end of the period$10.0  $1.9  $247.9  $—  $259.8