Segment Information and Concentrations

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION AND CONCENTRATIONS

16. SEGMENT INFORMATION AND CONCENTRATIONS

The Company manages and reports the following segments:

•Banking - We offer solutions to enable customers in the financial services industry to reduce costs, generate new revenue streams and enhance customer loyalty. These solutions include a comprehensive line of ATM and payment processing hardware and software; cash management and video banking software and customer-facing digital banking services; and related installation, maintenance, and managed and professional services. 

•Retail - We offer solutions to customers in the retail industry designed to improve selling productivity and checkout processes as well as increase service levels. The solutions offered serve the following customer markets in the retail industry: food, drug and mass merchandisers; department and specialty retailers; convenience and fuel retailers, and small and medium retailers. These solutions primarily include retail-oriented technologies, such as point of sale terminals and point of sale software; a retail software platform with a comprehensive suite of retail software applications; innovative self-service kiosks, such as self-checkout; as well as bar-code scanners. We also offer installation, maintenance, managed and professional services as well as payment processing solutions.

•Hospitality - We offer solutions to customers in the hospitality industry, serving businesses in the following markets: quick service restaurants, table service restaurants, small and medium restaurants and travel and entertainment venues. Our solutions include point of sale hardware and software solutions, installation, maintenance, managed and professional services as well as payment processing solutions.

•Other - This category includes telecommunications and technology solutions where we offer maintenance as well as managed and professional services for third-party hardware provided to select manufacturers who value and leverage our global service capability.

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. 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
	2020		2019		2020		2019
Revenue by segment
Banking	$	763	$	868	$	1,526	$	1,626
Retail	483		558		955		1,069
Hospitality	160		202		329		395
Other	78		82		177		156
Consolidated revenue	$	1,484	$	1,710	$	2,987	$	3,246
Operating income by segment
Banking	$	92	$	129	$	195	$	224
Retail	17		40		22		66
Hospitality	—		13		(9)		29
Other	7		10		12		20
Subtotal - segment operating income	116		192		220		339
Other adjustments (1)	27		35		54		82
Income from operations	$	89	$	157	$	166	$	257

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

In millions	Three months ended June 30				Six months ended June 30
	2020		2019		2020		2019
Transformation and restructuring costs	$	8	$	14	$	13	$	40
Acquisition-related amortization of intangible assets	19		21		41		42
Total other adjustments	$	27	$	35	$	54	$	82

The following table presents revenue by geography for NCR:

In millions	Three months ended June 30				Six months ended June 30
	2020		2019		2020		2019
Americas	$	886	$	1,029	$	1,778	$	1,949
Europe, Middle East and Africa (EMEA)	407		452		810		871
Asia Pacific (APJ)	191		229		399		426
Total revenue	$	1,484	$	1,710	$	2,987	$	3,246

The following tables present revenue from products and services for NCR:

In millions	Three months ended June 30				Six months ended June 30
	2020		2019		2020		2019
Product revenue	$	481	$	664	$	955	$	1,203
Professional services and installation services revenue	189		270		416		508
Recurring revenue, including maintenance, cloud revenue and payments	814		776		1,616		1,535
Total revenue	$	1,484	$	1,710	$	2,987	$	3,246

In millions	Three months ended June 30				Six months ended June 30
	2020		2019		2020		2019
Software	$	460	$	496	$	934	$	963
Services	605		622		1,241		1,207
Hardware	419		592		812		1,076
Total revenue	$	1,484	$	1,710	$	2,987	$	3,246