Segment Information and Concentrations (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Revenue and Operating Income by Segment

The following table presents revenue and Adjusted EBITDA by segment:


In millions	Three months ended June 30				Six months ended June 30
	2022		2021		2022		2021
Revenue by segment
Payments & Network	$	332	$	54	$	631	$	76
Digital Banking	131		129		267		252
Self-Service Banking	679		645		1,290		1,273
Retail	562		562		1,108		1,082
Hospitality	238		215		449		394
Other	61		77		129		154
Eliminations	(12)		(5)		(20)		(10)
Total segment revenue	$	1,991	$	1,677	$	3,854	$	3,221
Other adjustment (1)	6		—		9		—
Consolidated revenue	$	1,997	$	1,677	$	3,863	$	3,221

Adjusted EBITDA by segment
Payments & Network	$	97	$	19	$	195	$	22
Digital Banking	56		55		112		109
Self-Service Banking	142		140		254		277
Retail	104		121		171		219
Hospitality	46		39		87		75
Corporate and Other	(98)		(89)		(195)		(156)
Eliminations	(8)		(4)		(14)		(7)
Total Adjusted EBITDA	$	339	$	281	$	610	$	539

(1) Other adjustment reflects the revenue attributable to the Company's operations in Russia for the three and six months ending June 30, 2022 that were excluded from management's measure of revenue due to our previous announcement to suspend sales to Russia and anticipated orderly wind down of our operations in Russia. The revenue attributable to the Russian operations for the three and six months ended June 30, 2021 of $11 million and $19 million, respectively, is included in the respective segments.

The following table reconciles net income (loss) from continuing operations to Adjusted EBITDA:


In millions	Three months ended June 30				Six months ended June 30
	2022		2021		2022		2021
Net income (loss) from continuing operations attributable to NCR	$	35	$	(9)	$	2	$	21
Transformation costs	49		7		76		15
Acquisition-related amortization of intangibles	45		23		86		43
Acquisition-related costs	3		56		8		83

Interest expense	67		61		130		106
Interest income	(2)		(1)		(3)		(4)
Depreciation and amortization (excluding acquisition-related amortization of intangibles)	104		76		207		146
Income tax expense (benefit)	—		31		13		48
Stock-based compensation expense	35		37		69		81
Russia	3		—		22		—
Total Adjusted EBITDA	$	339	$	281	$	610	$	539

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

The following table presents revenue by geography for NCR:


In millions	Three months ended June 30				Six months ended June 30
	2022		2021		2022		2021
Americas	$	1,276	$	1,007	$	2,457	$	1,936
Europe, Middle East and Africa (EMEA)	498		447		964		864
Asia Pacific (APJ)	223		223		442		421
Total revenue	$	1,997	$	1,677	$	3,863	$	3,221

Schedule of Revenues from Products and Services

The following table presents the recurring revenue for NCR:


In millions	Three months ended June 30				Six months ended June 30
	2022		2021		2022		2021
Recurring revenue (1)	$	1,217	$	929	$	2,396	$	1,803
All other products and services	780		748		1,467		1,418
Total revenue	$	1,997	$	1,677	$	3,863	$	3,221

(1) Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, interchange and network revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.