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 June 30					Six months ended June 30
	2018			2017		2018			2017
Revenue by segment
Software License	$	68		$	77	$	138		$	162
Software Maintenance	93			91		184			183
Cloud	155			145		310			287
Professional Services	154			151		298			284
Software	470			464		930			916

Services	610			588		1,211			1,145

ATM	180			227		375			436
SCO	99			96		176			197
POS	178			213		362			367
IPS	—			5		—			10
Hardware	457			541		913			1,010
Consolidated revenue	1,537			1,593		3,054			3,071
Operating income (loss) by segment
Software	115			127		224			251
Services	77			74		139			118
Hardware	(27		)	11		(50		)	1
Subtotal - segment operating income	165			212		313			370
Other adjustments ⁽¹⁾	271			37		310			80
(Loss) income from operations	$	(106	)	$	175	$	3		$	290


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



In millions	Three months ended June 30				Six months ended June 30
In millions	2018		2017		2018		2017
Transformation and restructuring costs	$	66	$	8	$	82	$	21
Asset impairment charges	183		—		183		—
Acquisition-related amortization of intangible assets	21		28		44		57
Acquisition-related costs	1		1		1		2
Total other adjustments	$	271	$	37	$	310	$	80

The following table presents revenue by geography for NCR:



In millions	Three months ended June 30				Six months ended June 30
In millions	2018		2017		2018		2017
Americas	$	875	$	915	$	1,764	$	1,762
Europe, Middle East Africa (EMEA)	418		454		826		876
Asia Pacific (APJ)	244		224		464		433
Total revenue	$	1,537	$	1,593	$	3,054	$	3,071

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



In millions	Three months ended June 30				Six months ended June 30
In millions	2018		2017		2018		2017
Product revenue	$	525	$	618	$	1,051	$	1,172
Professional services and installation services revenue	271		261		527		488
Recurring revenue, including maintenance and cloud revenue	741		714		1,476		1,411
Total revenue	$	1,537	$	1,593	$	3,054	$	3,071