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Segment Information and Concentrations
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Information and Concentrations
13. SEGMENT INFORMATION AND CONCENTRATIONS

The Company manages and reports the following three segments:

•
Software - Our software portfolio includes industry-based software applications and application suites for the financial services, retail, hospitality and small business industries. We also offer other industry-oriented software applications, including cash management software, video banking software, fraud and loss-prevention applications, check and document imaging, remote-deposit capture and customer-facing digital banking applications for the financial services industry; and secure electronic and mobile payment solutions, sector-specific point of sale software applications, and back-office inventory and store and restaurant management software applications for the retail and hospitality industries. Additionally, we provide ongoing software support and maintenance services, as well as consulting and implementation services for our software solutions.
•
Services - Our global end-to-end services solutions include assessment and preparation, staging, installation, implementation, and maintenance and support for our hardware solutions. We also provide systems management and complete managed services for our product offerings. In addition, we provide servicing for third party networking products and computer hardware from select manufacturers.
•
Hardware - Our hardware solutions include our suite of financial-oriented self-service ATM-related hardware, and our retail- and hospitality-oriented point of sale terminal, self-checkout kiosk and related hardware. We also offer other self-service kiosks, such as self-check in/out kiosks for airlines, and wayfinding solutions for buildings and campuses.

These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker in assessing segment performance and in allocating the Company's resources. Management evaluates the performance of the segments based on revenue and segment operating income. Assets are not allocated to segments, and thus are not included in the assessment of segment performance, and consequently, we do not disclose total assets by reportable segment.
The accounting policies used to determine the results of the operating segments are the same as those utilized for the consolidated financial statements as a whole. Intersegment sales and transfers are not material.
To maintain operating focus on business performance, non-operational items are excluded from the segment operating results utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported income from operations.

The following table presents revenue and operating income by segment:
In millions
Three months ended March 31
2017
 
2016
Revenue by segment
 
 
 
Software
$
452

 
$
419

Services
557

 
543

Hardware (1)
469

 
482

Consolidated revenue
1,478

 
1,444

Operating income by segment
 
 
 
Software
125

 
115

Services
45

 
34

Hardware
(10
)
 
(10
)
Subtotal - segment operating income
160

 
139

Other adjustments (2)
43

 
38

Income from operations
$
117

 
$
101



(1) 
On May 27, 2016, NCR completed the sale of all but the Middle East and Africa (MEA) assets of its Interactive Printer Solutions (IPS) business to Atlas Holdings LLC. For the three months ended March 31, 2016, revenues from the results of IPS operations, other than MEA, were $72 million.

(2) 
The following table presents the other adjustments for NCR:
In millions
Three months ended March 31
2017
 
2016
Transformation / restructuring costs
$
13

 
$
4

Acquisition-related amortization of intangible assets
29

 
32

Acquisition-related costs
1

 
2

Total other adjustments
$
43

 
$
38



The following table presents revenue from products and services for NCR:
In millions
Three months ended March 31
2017
 
2016
Product revenue
$
554

 
$
548

Professional services and installation services revenue
227

 
209

Recurring revenue, including maintenance and cloud revenue
697

 
687

Total revenue
$
1,478

 
$
1,444