3. REVENUE RECOGNIZED UNDER PREVIOUS GUIDANCE

As noted in Note 1. Basis of Presentation and Summary of Significant Accounting Policies, the Company adopted the new revenue recognition guidance effective January 1, 2018, using the modified retrospective approach. As a result, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings as of January 1, 2018. Adopting the new standard primarily impacted the deferral of incremental commission costs of obtaining SaaS contracts with customers. Other changes impact the timing of recognition for term-based software license sales and renewals, and estimating variable consideration at contract inception.

The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. As such, the following table presents the results for the three and six months ended June 30, 2018 under the previous guidance:



	Three months ended June 30, 2018
In millions, except per share amounts	Under Current Guidance			Adjustments			Under Previous Guidance
Condensed Consolidated Statement of Operations
Product revenue	$	525		$	(3	)	$	522
Cost of products	451			—			451
Loss from operations	(106		)	(3		)	(109		)
Loss from continuing operations before income taxes	(156		)	(3		)	(159		)
Income tax benefit	(12		)	(1		)	(13		)
Loss from continuing operations	(144		)	(2		)	(146		)
Net loss	(146		)	(2		)	(148		)
Net loss attributable to NCR	$	(145	)	$	(2	)	$	(147	)
Loss per common share from continuing operations
Basic	$	(1.31	)	$	(0.02	)	$	(1.33	)
Diluted	$	(1.31	)	$	(0.02	)	$	(1.33	)
Net loss per common share
Basic	$	(1.33	)	$	(0.02	)	$	(1.35	)
Diluted	$	(1.33	)	$	(0.02	)	$	(1.35	)



	Six months ended June 30, 2018
In millions, except per share amounts	Under Current Guidance			Adjustments			Under Previous Guidance
Condensed Consolidated Statement of Operations
Product revenue	$	1,051		$	(10	)	$	1,041
Cost of products	871			(2		)	869
Income (loss) from operations	3			(8		)	(5		)
Loss from continuing operations before income taxes	(93		)	(8		)	(101		)
Income tax benefit	(5		)	(2		)	(7		)
Loss from continuing operations	(88		)	(6		)	(94		)
Net loss	(125		)	(6		)	(131		)
Net loss attributable to NCR	$	(125	)	$	(6	)	$	(131	)
Loss per common share from continuing operations
Basic	$	(0.94	)	$	(0.05	)	$	(0.99	)
Diluted	$	(0.94	)	$	(0.05	)	$	(0.99	)
Net loss per common share
Basic	$	(1.26	)	$	(0.05	)	$	(1.31	)
Diluted	$	(1.26	)	$	(0.05	)	$	(1.31	)

The following table presents balances as of June 30, 2018 under the current and previous guidance:



In millions	Under Current Guidance		Adjustments			Under Previous Guidance
Condensed Consolidated Balance Sheet
Assets
Accounts receivable, net	$	1,272	$	22		$	1,294
Other current assets	282		(24		)	258
Total current assets	2,739		(2		)	2,737
Deferred income taxes	472		2			474
Other assets	593		(13		)	580
Total Assets	$	7,364	$	(13	)	$	7,351

Liabilities
Contract liabilities	$	469	$	(3	)	$	466
Other current liabilities	310		(2		)	308
Total current liabilities	1,879		(5		)	1,874
Total liabilities	6,144		(5		)	6,139
Retained earnings	594		(8		)	586
Total NCR stockholders’ equity	371		(8		)	363
Total stockholders’ equity	374		(8		)	366
Total liabilities and stockholders’ equity	$	7,364	$	(13	)	$	7,351