SEGMENT INFORMATION

The Company's accounting policies derive segment results that are the same as those the CODM regularly reviews and uses to make decisions, allocate resources and assess performance. The Company continually considers its operating structure and the information subject to regular review by the Office of the Chief Executive, who are the CODM, to identify reportable operating segments. The Company’s operating structure is based on a number of factors that management uses to evaluate, view and run its business operations, which currently includes, but is not limited to, product, service and solution. The Company measures the performance of each segment based on several metrics, including net sales and segment operating profit. The CODM uses these results to make decisions, allocate resources and assess performance by the LOBs.

Segment revenue represents revenues from sales to external customers. Segment operating profit is defined as revenues less expenses identifiable to those segments. The Company does not allocate to its segments certain operating expenses, which it manages at the corporate level; that are not routinely used in the management of the segments; or information that is impractical to report. These unallocated costs include certain corporate costs, amortization of acquired intangible assets and deferred revenue, restructuring charges, impairment charges, legal, indemnification, and professional fees related to corporate monitor efforts, acquisition and divestiture expenses, along with other income (expenses). Segment operating profit reconciles to consolidated income (loss) from continuing operations before income taxes by deducting corporate costs and other income or expense items that are not attributed to the segments. Assets are not allocated to segments, and thus are not included in the assessment of segment performance, and consequently, the Company does not disclose total assets and depreciation and amortization expense by reportable operating segment.

In August 2016, in connection with the business combination agreement related to the Acquisition, the Company announced the realignment of its lines of business to drive greater efficiency and further improve customer service. During the first quarter of 2017, the Company reorganized the management team reporting to the CODM and evaluated and assessed the LOB reporting structure. The Company's reportable operating segments are based on the following three LOBs: Services, Systems, and Software. As a result, the Company reclassified comparative periods for consistency which were previously reported as four geographical segments of: NA, AP, EMEA and LA. The presentation of comparative periods also reflects the reclassification of certain global manufacturing administration expenses from corporate charges not allocated to segments to segment operating profit.

Services

Product-related services provided by the Company include proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit. First and second line maintenance, preventive maintenance and on-demand services keep the distributed assets of the Company's customers up and running through a standardized incident management process. Managed services and outsourcing consists of the end-to-end business processes, solution management, upgrades and transaction processing. The global service supply chain optimizes the process for obtaining replacement parts, making repairs, and implementing new features and functionality. The Company also provides a full array of cash management services, which optimizes the availability and cost of physical currency across the enterprise through efficient forecasting, inventory and replenishment processes.

Software

The Company provides front end applications for consumer connection points and back end platforms that manage channel transactions, operations and integration. The Company’s hardware-agnostic software applications facilitate millions of transactions via ATMs, POS terminals, kiosks, and a host of other self-service devices. The Company’s platform software facilitates omni-channel transactions, endpoint monitoring, remote asset management, marketing, merchandise management and analytics.

The professional services team provides systems integration, customization, consulting and project management. The Company’s advisory services team collaborates with its customers to help define optimal user experience, improve business processes, refine existing staffing models and deploy technology to meet branch automation objectives.

Systems

The systems portfolio consists of cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, physical security devices, integrated and mobile POS systems. Supplementing the POS system is a broad range of peripherals, including printers, scales and mobile scanners, as well as the cash management portfolio which offers a wide range of banknote and coin processing systems. Also in the portfolio, the Company provides self-checkout terminals and ordering kiosks.

The following tables represent information regarding the Company’s segment information and provides a reconciliation between segment operating profit and the consolidated income (loss) from continuing operations before income taxes for the years ended December 31:



	2017			2016			2015
Net sales summary by segment
Services	$	2,397.3		$	1,726.7		$	1,295.7
Software	476.6			256.3			139.1
Systems	1,735.4			1,333.3			984.5
Total customer revenues	$	4,609.3		$	3,316.3		$	2,419.3

Segment operating profit
Services	$	344.8		$	298.7		$	262.8
Software	33.7			9.6			11.8
Systems	(24.2		)	(24.7		)	(48.8		)
Total segment operating profit	$	354.3		$	283.6		$	225.8

Corporate charges not allocated to segments ⁽¹⁾	(130.1		)	(124.9		)	(90.7		)
Impairment of assets	(3.1		)	(9.8		)	(18.9		)
Restructuring charges	(49.4		)	(59.4		)	(21.2		)
Net non-routine income (expense)	(255.3		)	(249.3		)	(36.4		)
	(437.9		)	(443.4		)	(167.2		)
Operating profit (loss)	(83.6		)	(159.8		)	58.6
Other income (expense)	(92.1		)	(78.5		)	(12.8		)
Income (loss) from continuing operations before taxes	$	(175.7	)	$	(238.3	)	$	45.8


⁽¹⁾	Corporate charges not allocated to segments include headquarter-based costs associated with procurement, human resources, compensation and benefits, finance and accounting, global development/engineering, global strategy/mergers and acquisitions, global information technology, tax, treasury and legal.

Net non-routine expense consists of items that the Company has determined are non-routine in nature and not allocated to the LOBs. Net non-routine expense of $255.3 for the year ended December 31, 2017 was due to legal, acquisition and divestiture expenses of $16.1 inclusive of the mark-to-market impact on Diebold Nixdorf AG stock options and Acquisition integration expenses of $72.1 primarily within selling and administrative expense and purchase accounting pretax charges, which included deferred revenue of $30.4 and amortization of acquired intangibles of $128.4 and an increase in cost of sales of $1.9 related to measurement period adjustments of inventory. Net non-routine expense of $249.3 for the year ended December 31, 2016 was primarily due to the impact of purchase accounting adjustments of $128.6 primarily in cost of sales and legal, acquisition and divestiture related costs of $104.3 primarily within selling and administrative expense.

The following table presents information regarding the Company’s revenue by service and product solution:



	2017		2016		2015
Banking
Services and software	$	2,248.4	$	1,758.2	$	1,426.1
Systems	1,180.6		1,041.7		975.4
Total banking	3,429.0		2,799.9		2,401.5
Retail
Services and software	625.5		224.8		—
Systems	554.8		291.6		17.8
Total retail	1,180.3		516.4		17.8
	$	4,609.3	$	3,316.3	$	2,419.3

The Company had no customers that accounted for more than 10 percent of total net sales in 2017, 2016 and 2015.

Below is a summary of net sales by point of origin for the years ended December 31:



	2017		2016		2015
Americas
United States	$	1,038.6	$	1,020.1	$	1,014.3
Brazil	218.5		263.0		211.5
Other Americas	348.7		379.2		347.6
Total Americas	1,605.8		1,662.3		1,573.4
EMEA
Germany	564.3		244.9		—
Other EMEA	1,815.8		938.3		406.3
Total EMEA	2,380.1		1,183.2		406.3
AP
China	96.3		175.2		279.0
Other AP	527.1		295.6		160.6
Total AP	623.4		470.8		439.6
Total net sales	$	4,609.3	$	3,316.3	$	2,419.3

Below is a summary of property, plant and equipment, net by geographical location as of December 31:



	2017		2016		2015
Property, plant and equipment, net
United States	$	91.7	$	111.2	$	130.4
Germany	205.3		199.7		—
Other international	67.5		76.1		44.9
Total property, plant and equipment, net	$	364.5	$	387.0	$	175.3