Segment Information and Concentrations (Tables)

9 Months Ended

Sep. 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 September 30				Nine months ended September 30
	2022		2021		2022		2021
Revenue by segment
Retail	$	575	$	541	$	1,683	$	1,623
Hospitality	238		224		687		618
Digital Banking	137		128		404		380
Payments & Network	336		304		967		380
Self-Service Banking	640		637		1,930		1,910
Other	58		75		187		229
Eliminations	(12)		(8)		(32)		(18)
Total segment revenue	$	1,972	$	1,901	$	5,826	$	5,122
Other adjustment (1)	—		—		9		—
Consolidated revenue	$	1,972	$	1,901	$	5,835	$	5,122

Adjusted EBITDA by segment
Retail	$	128	$	104	$	299	$	323
Hospitality	51		44		138		119
Digital Banking	60		52		172		161
Payments & Network	114		111		309		133
Self-Service Banking	150		155		404		432
Corporate and Other	(112)		(109)		(307)		(265)
Eliminations	(11)		(5)		(25)		(12)
Total Adjusted EBITDA	$	380	$	352	$	990	$	891

(1) Other adjustment reflects the revenue attributable to the Company's operations in Russia for the three and nine months ending September 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 nine months ended September 30, 2021 of $14 million and $33 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 September 30				Nine months ended September 30
	2022		2021		2022		2021
Net income (loss) from continuing operations attributable to NCR	$	69	$	12	$	71	$	33
Transformation and restructuring costs	17		5		93		20
Acquisition-related amortization of intangibles	44		45		130		88
Acquisition-related costs	1		9		9		92
Loss on debt extinguishment	—		42		—		42
Interest expense	74		68		204		174
Interest income	(3)		—		(6)		(4)
Depreciation and amortization (excluding acquisition-related amortization of intangibles)	107		104		314		250
Income tax expense (benefit)	43		29		56		77
Stock-based compensation expense	28		38		97		119

Russia	—		—		22		—
Total Adjusted EBITDA	$	380	$	352	$	990	$	891

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 September 30				Nine months ended September 30
	2022		2021		2022		2021
Americas	$	1,320	$	1,185	$	3,777	$	3,121
Europe, Middle East and Africa (EMEA)	403		494		1,367		1,358
Asia Pacific (APJ)	249		222		691		643
Total revenue	$	1,972	$	1,901	$	5,835	$	5,122

Schedule of Revenues from Products and Services

The following table presents the recurring revenue for NCR:


In millions	Three months ended September 30				Nine months ended September 30
	2022		2021		2022		2021
Recurring revenue (1)	$	1,222	$	1,181	$	3,618	$	2,984
All other products and services	750		720		2,217		2,138
Total revenue	$	1,972	$	1,901	$	5,835	$	5,122

(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, cryptocurrency-related revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.