Segment Information and Concentrations (Tables)

6 Months Ended

Jun. 30, 2023

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
	2023		2022		2023		2022
Revenue by segment
Retail	$	576	$	562	$	1,128	$	1,108
Hospitality	235		238		458		449
Digital Banking	140		131		276		267
Payments & Network	333		332		656		631
Self-Service Banking	661		679		1,274		1,290
Total segment revenue	$	1,945	$	1,942	$	3,792	$	3,745
Other (1)	54		61		108		129
Eliminations	(13)		(12)		(23)		(20)
Other adjustment (2)	—		6		—		9
Consolidated revenue	$	1,986	$	1,997	$	3,877	$	3,863

Adjusted EBITDA by segment
Retail	$	123	$	104	$	220	$	171
Hospitality	60		46		113		87
Digital Banking	53		56		102		112
Payments & Network	99		97		182		195
Self-Service Banking	169		142		307		254
Segment Adjusted EBITDA	$	504	$	445	$	924	$	819

(1) Other immaterial business operations that do not represent a reportable segment.

(2) Other adjustment reflects the revenue attributable to the Company's operations in Russia for the three and six months ended June 30, 2022 that were excluded from management's measure of revenue due to our previous announcement to suspend sales to Russia and orderly wind down of our operations in Russia beginning in the first quarter of 2022.

The following table reconciles Segment Adjusted EBITDA to Net income (loss) from continuing operations attributable to NCR:


In millions	Three months ended June 30				Six months ended June 30
	2023		2022		2023		2022
Segment Adjusted EBITDA	$	504	$	445	$	924	$	819
Less unallocated amounts:
Corporate and other income and expenses not allocated to reportable segments	106		98		216		195
Eliminations	9		8		17		14
Transformation and restructuring costs (1)	(1)		49		(1)		76
Acquisition-related amortization of intangibles	43		45		85		86
Acquisition-related costs (2)	1		3		1		8

Interest expense	91		67		174		130
Interest income	(3)		(2)		(6)		(3)
Depreciation and amortization (excluding acquisition-related amortization of intangibles)	109		104		215		207
Income tax expense (benefit)	30		—		44		13
Stock-based compensation expense	36		35		68		69
Separation costs (3)	52		—		71		—
Cyber ransomware incident recovery costs (4)	11		—		11		—
Russia	—		3		—		22
Net income (loss) from continuing operations attributable to NCR	$	20	$	35	$	29	$	2

(1) Represents integration, severance, and other exit and disposal costs, which are considered non-operational in nature.

(2) Represents professional fees, retention bonuses, and other costs incurred related to acquisitions, which are considered non-operational in nature.

(3) Represents professional fees specific to separation preparation including separation management, organizational design, and legal fees.

(4) Represents expenses to respond to, remediate and investigate the April 13, 2023 cyber ransomware incident, which is considered a non-recurring special item. Additional details regarding this cyber ransomware incident are discussed in Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”.

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
	2023		2022		2023		2022
United States	$	1,121	$	1,075	$	2,214	$	2,073
Americas (excluding United States)	199		201		381		384
Europe, Middle East and Africa	446		498		858		964
Asia Pacific	220		223		424		442
Total revenue	$	1,986	$	1,997	$	3,877	$	3,863

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
	2023		2022		2023		2022
Recurring revenue (1)	$	1,262	$	1,217	$	2,491	$	2,396
All other products and services	724		780		1,386		1,467
Total revenue	$	1,986	$	1,997	$	3,877	$	3,863

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