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SEGMENT INFORMATION AND CONCENTRATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND CONCENTRATION
5. SEGMENT INFORMATION AND CONCENTRATIONS

Subsequent to the Spin-Off, as described in Note 1, “Basis of Presentation and Significant Accounting Policies”, the Company manages and reports the following segments:

•Retail - We offer software-led solutions to customers in the retail industry, leading with digital to connect retail operations end to end to integrate all aspects of a customer’s operations in indoor and outdoor settings from POS, to payments, inventory management, fraud and loss prevention applications, loyalty and consumer engagement. These solutions include retail-oriented technologies such as comprehensive API-point of sale retail software platforms and applications, hardware terminals, self-service kiosks including self-checkout (“SCO”), payment processing and merchant acquiring solutions, and bar-code scanners.

•Restaurants - We offer technology solutions to customers in the restaurant industry, including table-service, quick-service and fast casual restaurants of all sizes, that are designed to improve operational efficiency, increase customer satisfaction, streamline order and transaction processing and reduce operating costs. Our solutions include POS hardware and software solutions, payment processing and merchant acquiring services, installation, maintenance, as well as managed and professional services.

•Digital Banking - Our Digital Banking segment helps financial institutions implement their digital-first platform strategy by providing solutions for account opening, account management, transaction processing, imaging, and branch services to enable financial institutions to offer a compelling customer experience.
Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to any of our three individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segment(s) and certain countries which are expected to transfer to NCR Atleos during 2024, as well as commercial agreements with NCR Atleos.

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 Adjusted EBITDA. Adjusted EBITDA is defined as GAAP net income (loss) from continuing operations attributable to NCR Voyix plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus stock-based compensation expense; plus other income (expense); plus pension mark-to-market adjustments and other special items, including amortization of acquisition-related intangibles, separation-related costs, cyber ransomware incident recovery costs net of insurance recoveries, fraudulent ACH disbursements costs, transformation and restructuring charges (which includes integration, severance and other exit and disposal costs), among others. The special items are considered non-operational or non-recurring in nature, so are excluded from the Adjusted EBITDA metric utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported GAAP net income (loss) from continuing operations attributable to the Company.

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.
The following table presents revenue and operating income by segment for the years ended December 31:
In millions202320222021
Revenue by Segment
Retail$2,177 $2,182 $2,138 
Restaurants886 857 794 
Digital Banking579 547 521 
Total Segment Revenue$3,642 $3,586 $3,453 
Other188 207 239 
Total Revenue$3,830 $3,793 $3,692 
Adjusted EBITDA by Segment
Retail$411 $384 $427 
Restaurants197 160 150 
Digital Banking219 233 216 
Total Segment Adjusted EBITDA827 777 793 

In millions202320222021
Segment Adjusted EBITDA$827 $777 $793 
Corporate and other income and expenses not allocated to segments211 181 322 
Pension mark-to-market adjustments7 (41)(7)
Transformation and restructuring costs(1)
39 96 53 
Fraudulent ACH disbursements(2)
23 — — 
Acquisition-related amortization of intangibles71 71 76 
Acquisition-related costs(3)
1 2 3 
Interest expense(4)
294 285 238 
Interest income(13)(13)(8)
Depreciation and amortization252 237 220 
Income taxes204 72 70 
Stock-based compensation expense150 90 121 
Separation costs(5)
99 — — 
Loss on disposal of businesses12 — — 
Loss on debt extinguishment46 — 42 
Cyber ransomware incident recovery costs(6)
17 — — 
Net income (loss) from continuing operations attributable to NCR Voyix (GAAP)$(586)$(203)$(337)
(1) Represents integration, severance, and other exit and disposal costs, which are considered non-operational in nature.
(2) Represents company identified fraudulent ACH disbursements from a company bank account. Additional details regarding this item are discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”.
(3) Represents professional fees, retention bonuses, and other costs incurred related to acquisitions, which are considered non-operational in nature.
(4) 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, $18 million of unrealized gains were recognized in Interest expense. Refer to Note 15, “Derivatives and Hedging Instruments”.
(5) Represents costs incurred as a result of the Spin-Off. Professional fees to effect the spin-off of NCR Atleos including separation management, organizational design, and legal fees have been classified within discontinued operations through October 16, 2023, the separation date.
(6) Represents expenses to respond to, remediate and investigate the April 13, 2023 cyber ransomware incident net of insurance recoveries, which is considered a nonrecurring special item. Additional details regarding this cyber ransomware incident are discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”.
The following table presents recurring revenue and all other products and services that is recognized at a point in time for the Company for the years ended December 31:
In millions202320222021
Recurring revenue(1)
$2,195 $2,120 $2,069 
All other products and services1,635 1,673 1,623 
Total revenue$3,830 $3,793 $3,692 
(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.

Revenue is attributed to the geographic area to which the product is delivered or in which the service is provided. The following table presents revenue by geographic area for the Company for the years ended December 31:
In millions2023%2022%2021%
Revenue by Geographic Area
United States$2,540 67 %$2,560 67 %$2,367 65 %
Americas (excluding United States)281 7 %254 7 %226 6 %
Europe, Middle East and Africa653 17 %594 16 %643 17 %
Asia Pacific356 9 %385 10 %456 12 %
Total revenue$3,830 100 %$3,793 100 %$3,692 100 %

The following table presents property, plant and equipment by geographic area as of December 31:
In millions20232022
Property, plant and equipment, net
United States$177 $187 
Americas (excluding United States)2 2 
Europe, Middle East and Africa29 32 
Asia Pacific4 6 
Consolidated property, plant and equipment, net$212 $227 

Concentrations One customer accounted for approximately 13% and 10% of our consolidated operating revenues during the years ended December 31, 2023 and 2022, respectively, and is included in our Retail segment. No customer accounted for more than 10% of our consolidated operating revenues during the year ended December 31, 2021. As of December 31, 2023, 2022, and 2021, the Company is not aware of any other significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on the Company’s operations. NCR Voyix does not have a concentration of available sources of labor, services, licenses or other rights that could, if suddenly eliminated, have a material adverse effect on its operations.

A number of NCR Voyix’s products, systems and solutions rely primarily on specific suppliers for microprocessors and other component products, manufactured assemblies, operating systems, commercial software and other central components. The Company also utilizes contract manufacturers in order to complete manufacturing activities. There can be no assurances that any sudden impact to the availability or cost of these technologies or services would not have a material adverse effect on the Company’s operations.