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Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Information | 4. SEGMENT INFORMATION AND CONCENTRATIONS As noted in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, effective January 1, 2019, NCR changed the management of its business to an industry basis from the previous model of management on a solution basis, which resulted in a corresponding change to NCR's reportable segments. We have reclassified prior period segment disclosures to conform to the current period presentation. As a result of the change, the Company manages and reports its business in the following segments:
• | Banking - We offer solutions to enable customers in the financial services industry to reduce costs, generate new revenue streams and enhance customer loyalty. These solutions include a comprehensive line of ATM and payment processing hardware and software; cash management and video banking software and customer-facing digital banking services; and related installation, maintenance, and managed and professional services.
• | Retail - We offer solutions to customers in the retail industry designed to improve selling productivity and checkout processes as well as increase service levels. These solutions primarily include retail-oriented technologies, such as POS terminals and POS software; a retail software platform with a comprehensive suite of retail software applications; innovative self-service kiosks, such as self-checkout; as well as bar-code scanners. We also offer installation, maintenance, managed and professional services as well as payment processing solutions.
• | Hospitality - We offer technology solutions to customers in the hospitality industry, serving businesses that range from a single store or restaurant to global chains and sports and entertainment venues. Our solutions include POS hardware and software solutions, installation, maintenance, managed and professional services as well as payment processing solutions.
• | Other - This category includes telecommunications and technology solutions where we offer maintenance as well as managed and professional services for third-party hardware provided to select manufacturers who value and leverage our global service capability.
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 segment operating income. Assets are not allocated to segments, and thus are not included in the assessment of segment performance, and 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. To maintain operating focus on business performance, non-operational items are excluded from the segment operating results utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported income from operations. The following table presents revenue and operating income by segment for the years ended December 31:
In millions |  | 2019 |  | 2018 |  | 2017
Revenue by segment |  |  |  |  |  |
Banking |  | $ | 3,512 |  |  | $ | 3,183 |  |  | $ | 3,175 |
Retail |  | 2,217 |  |  | 2,097 |  |  | 2,169 |
Hospitality |  | 843 |  |  | 817 |  |  | 878 |
Other |  | 343 |  |  | 308 |  |  | 294 |
Consolidated revenue |  | $ | 6,915 |  |  | $ | 6,405 |  |  | $ | 6,516 |
Operating income by segment |  |  |  |  |  |
Banking |  | $ | 514 |  |  | $ | 412 |  |  | $ | 421 |
Retail |  | 144 |  |  | 142 |  |  | 231 |
Hospitality |  | 56 |  |  | 85 |  |  | 140 |
Other |  | 44 |  |  | 49 |  |  | 48 |
Subtotal - segment operating income |  | 758 |  |  | 688 |  |  | 840 |
Other adjustments(1) |  | 147 |  |  | 497 |  |  | 149 |
Income from operations |  | $ | 611 |  |  | $ | 191 |  |  | $ | 691 |
(1) The following table presents the other adjustments for NCR for the years ended December 31:
In millions |  | 2019 |  | 2018 |  | 2017
Transformation and restructuring costs |  | $ | 58 |  |  | $ | 223 |  |  | $ | 29 |
Acquisition-related amortization of intangibles |  | 86 |  |  | 85 |  |  | 115 |
Acquisition-related costs |  | 3 |  |  | 6 |  |  | 5 |
Asset impairment charges |  | — |  |  | 183 |  |  | — |
Total other adjustments |  | $ | 147 |  |  | $ | 497 |  |  | $ | 149 |
The following table presents revenue from products and services for NCR for the years ended December 31:
In millions |  | 2019 |  | 2018 |  | 2017
Product revenue |  | $ | 2,681 |  |  | $ | 2,341 |  |  | $ | 2,579 |
Professional services and installation services revenue |  | 1,089 |  |  | 1,094 |  |  | 1,055 |
Recurring revenue, including maintenance and cloud revenue |  | 3,145 |  |  | 2,970 |  |  | 2,882 |
Consolidated revenue |  | $ | 6,915 |  |  | $ | 6,405 |  |  | $ | 6,516 |
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 NCR for the years ended December 31:
In millions |  | 2019 |  | % |  | 2018 |  | % |  | 2017 |  | %
Revenue by Geographic Area |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,481 |  |  | 50 | % |  | $ | 3,076 |  |  | 48 | % |  | $ | 3,224 |  |  | 50 | %
Americas (excluding United States) |  | 693 |  |  | 10 | % |  | 631 |  |  | 10 | % |  | 585 |  |  | 9 | %
Europe, Middle East and Africa (EMEA) |  | 1,843 |  |  | 27 | % |  | 1,751 |  |  | 27 | % |  | 1,786 |  |  | 27 | %
Asia Pacific (APJ) |  | 898 |  |  | 13 | % |  | 947 |  |  | 15 | % |  | 921 |  |  | 14 | %
Consolidated revenue |  | $ | 6,915 |  |  | 100 | % |  | $ | 6,405 |  |  | 100 | % |  | $ | 6,516 |  |  | 100 | %
The following table presents property, plant and equipment by geographic area as of December 31:
In millions |  | 2019 |  | 2018
Property, plant and equipment, net |  |  |  |
United States |  | $ | 280 |  |  | $ | 247 |
Americas (excluding United States) |  | 14 |  |  | 13 |
Europe, Middle East and Africa (EMEA) |  | 74 |  |  | 57 |
Asia Pacific (APJ) |  | 45 |  |  | 42 |
Consolidated property, plant and equipment, net |  | $ | 413 |  |  | $ | 359 |
Concentrations No single customer accounts for more than 10% of NCR’s consolidated revenue. As of December 31, 2019, NCR is not aware of any significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on NCR’s operations. NCR also lacks 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’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. NCR 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 NCR’s operations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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