15. SEGMENT INFORMATION AND CONCENTRATIONS

The Company manages and reports the following three segments:

•

Software - Our software offerings include industry-based software platforms, applications and application suites for the financial services, retail, hospitality and small business industries. We also offer a portfolio of 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 mobile and 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 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 solutions. We also provide systems management and complete managed services for our product offerings. In addition, we provide installation, maintenance and 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 (POS) terminal, self-checkout (SCO) 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
	2018			2017
Revenue by segment
Software License	$	70		$	85
Software Maintenance	91			92
Cloud	155			142
Professional Services	144			133
Software	460			452

Services	601			557

ATM	195			209
SCO	77			101
POS	184			154
IPS	—			5
Hardware	456			469
Consolidated revenue	1,517			1,478
Operating income by segment
Software	109			124
Services	62			44
Hardware	(23		)	(10		)
Subtotal - segment operating income	148			158
Other adjustments ⁽¹⁾	39			43
Income from operations	$	109		$	115


⁽¹⁾	The following table presents the other adjustments for NCR:



In millions	Three months ended March 31
In millions	2018		2017
Transformation costs	$	16	$	13
Acquisition-related amortization of intangible assets	23		29
Acquisition-related costs	—		1
Total other adjustments	$	39	$	43

The following table presents revenue by geography for NCR:



In millions	Three months ended March 31
In millions	2018		2017
Americas	$	889	$	847
Europe, Middle East Africa (EMEA)	408		422
Asia Pacific (APJ)	220		209
Total revenue	$	1,517	$	1,478

The following table presents revenue from products and services for NCR:



In millions	Three months ended March 31
In millions	2018		2017
Product revenue	$	526	$	554
Professional services and installation services revenue	256		227
Recurring revenue, including maintenance and cloud revenue	735		697
Total revenue	$	1,517	$	1,478