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Segment Information and Concentrations (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of Revenue and Operating Income by Segment
The following table presents revenue and Adjusted EBITDA by segment:
In millionsThree months ended September 30Nine months ended September 30
2023202220232022
Revenue by segment
Retail$568 $575 $1,696 $1,683 
Hospitality238 238 696 687 
Digital Banking147 137 423 404 
Payments & Network357 336 1,013 967 
Self-Service Banking666 640 1,940 1,930 
Total segment revenue$1,976 $1,926 $5,768 $5,671 
Other (1)
53 58 161 187 
Eliminations(12)(12)(35)(32)
Other adjustment (2)
— — — 9 
Consolidated revenue$2,017 $1,972 $5,894 $5,835 
Adjusted EBITDA by segment
Retail$132 $128 $352 $299 
Hospitality59 51 172 138 
Digital Banking58 60 160 172 
Payments & Network120 114 302 309 
Self-Service Banking169 150 476 404 
Segment Adjusted EBITDA$538 $503 $1,462 $1,322 
(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 nine months ended September 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 millionsThree months ended September 30Nine months ended September 30
2023202220232022
Segment Adjusted EBITDA$538 $503 $1,462 $1,322 
Less unallocated amounts:
Pension mark-to-market19 — 19 — 
Corporate and other income and expenses not allocated to reportable segments125 112 341 307 
Eliminations9 11 26 25 
Transformation and restructuring costs (1)
8 17 7 93 
Acquisition-related amortization of intangibles43 44 128 130 
Acquisition-related costs (2)
— 1 1 9 
Gain on terminated interest rate derivative agreements (3)
(85)— (85)— 
Interest expense (3)
85 74 259 204 
Interest income(5)(3)(11)(6)
Depreciation and amortization (excluding acquisition-related amortization of intangibles)109 107 324 314 
Income tax expense (benefit)236 43 280 56 
Stock-based compensation expense30 28 98 97 
Separation costs (4)
76 — 147 — 
Cyber ransomware incident recovery costs (5)
12 — 23 — 
Russia— — — 22 
Net income (loss) from continuing operations attributable to NCR$(124)$69 $(95)$71 
(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) During the three months ended September 30, 2023, it was determined that the transactions underlying the unrealized gains on terminated interest rate swap and cap agreements reported in Accumulated other comprehensive income were probable of not occurring under ASC 815, Derivatives and Hedging. As such, $85 million of unrealized gains were recognized in Cost of services and $18 million of unrealized gains were recognized in Interest expense. Refer to Note 13, “Derivatives and Hedging Instruments”.
(4) Represents primarily professional fees specific to separation preparation including separation management, organizational design, and legal fees.
(5) 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 the Company:
In millionsThree months ended September 30Nine months ended September 30
2023202220232022
United States$1,179 $1,127 $3,393 $3,200 
Americas (excluding United States)194 193 575 577 
Europe, Middle East and Africa444 403 1,302 1,367 
Asia Pacific200 249 624 691 
Total revenue$2,017 $1,972 $5,894 $5,835 
Schedule of Revenues from Products and Services
The following table presents the recurring revenue for the Company:
In millionsThree months ended September 30Nine months ended September 30
2023202220232022
Recurring revenue (1)
$1,305 $1,222 $3,796 $3,618 
All other products and services712 750 2,098 2,217 
Total revenue$2,017 $1,972 $5,894 $5,835 

(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.