SEGMENT AND NET SALES INFORMATION

The Company's accounting policies derive segment results that are the same as those the Chief Operating Decision Maker (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 its Chief Executive Officer, who is 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's previous reportable operating segments included the lines of business (LoB): Services, Systems, and Software. The Company began to reorganize its management team reporting to the CODM and assess its new operating model during the first half of 2018. The results of re-evaluating the LoB operating model highlighted the need to transform the Company’s operating model to Banking and Retail. The renewed focus on the customer experience has led the Company to reorganize its operating model. The LoBs will continue to develop solutions, but will operate as cost centers focused on designing and delivering innovative and customer-driven products. The realignment to Banking and Retail enables quicker decision making, reduces complexity, makes better use of talent and promotes the best possible experience for the Company’s customers. Beginning with the second quarter of 2018, the Company's reportable operating segments are based on the following solutions: Eurasia Banking, Americas Banking and Retail. As a result, the Company reclassified comparative periods for consistency.

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, managed at the corporate level, that are not routinely used in the management of the segments, or information that is impractical to allocate. 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 acquisition and divestiture expenses, along with other income (expenses). Segment operating profit reconciles to consolidated loss before income taxes by deducting corporate costs and other income or expense items that are not attributed to the segments. 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 IT, tax, treasury and legal. 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.

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



	2018			2017			2016
Net sales summary by segment
Eurasia Banking	$	1,800.2		$	1,903.4		$	1,232.6
Americas Banking	1,515.7			1,525.6			1,567.3
Retail	1,262.7			1,180.3			516.4
Total customer revenues	$	4,578.6		$	4,609.3		$	3,316.3

Intersegment revenues
Eurasia Banking	$	161.1		$	105.0		$	63.5
Americas Banking	13.8			25.9			38.5
Retail	—			—			—
Total intersegment revenues	$	174.9		$	130.9		$	102.0

Segment operating profit
Eurasia Banking	$	147.1		$	126.8		$	88.2
Americas Banking	27.6			68.1			101.8
Retail	50.3			87.9			34.0
Total segment operating profit	$	225.0		$	282.8		$	224.0

Corporate charges not allocated to segments ⁽¹⁾	$	(62.7	)	$	(62.6	)	$	(69.3	)
Impairment of assets	(217.5		)	(3.1		)	(9.8		)
Restructuring charges	(65.0		)	(49.4		)	(59.4		)
Net non-routine expense	(242.7		)	(261.2		)	(255.3		)
	(587.9		)	(376.3		)	(393.8		)
Operating loss	(362.9		)	(93.5		)	(169.8		)
Other expense	(152.7		)	(98.4		)	(78.9		)
Loss from continuing operations before taxes	$	(515.6	)	$	(191.9	)	$	(248.7	)


⁽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 IT, 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 reportable operating segments. Net non-routine expense of $242.7 for the year ended December 31, 2018 was primarily due to the inventory provision of $74.5 in cost of sales, acquisition integration expenses of $47.2 primarily within selling and administrative expense and purchase accounting pre-tax charges for amortization of acquired intangibles of $113.4. Net non-routine expense of $261.2 for the year ended December 31, 2017 was primarily due to acquisition integration expenses of $72.1 primarily within selling and administrative expense and purchase accounting pre-tax charges for amortization of acquired intangibles of $160.9. Net non-routine expense of $255.3 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 segment net sales by service and product solution:



	2018		2017		2016
Eurasia Banking
Services	$	1,111.8	$	1,133.1	$	637.3
Products	688.4		770.3		595.3
Total Eurasia Banking	1,800.2		1,903.4		1,232.6
Americas Banking
Services	1,025.8		1,043.9		1,068.1
Products	489.9		481.7		499.2
Total Americas Banking	1,515.7		1,525.6		1,567.3
Retail
Services	651.9		608.3		202.6
Products	610.8		572.0		313.8
Total Retail	1,262.7		1,180.3		516.4
Total	$	4,578.6	$	4,609.3	$	3,316.3

The Company had no customers that accounted for more than 10 percent of total net sales in 2018, 2017 and 2016.

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



	2018		2017		2016
Americas
United States	$	1,047.7	$	1,049.5	$	1,093.6
Other Americas	556.7		556.3		568.7
Total Americas	1,604.4		1,605.8		1,662.3
EMEA
Germany	876.2		843.0		329.4
Other EMEA	1,583.8		1,537.1		853.8
Total EMEA	2,460.0		2,380.1		1,183.2
AP
Total AP	514.2		623.4		470.8
Total net sales	$	4,578.6	$	4,609.3	$	3,316.3

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



	2018		2017		2016
Property, plant and equipment, net
United States	$	77.8	$	91.7	$	111.2
Germany	168.2		205.3		199.7
Other international	58.1		67.5		76.1
Total property, plant and equipment, net	$	304.1	$	364.5	$	387.0

In the following table, revenue is disaggregated by timing of revenue recognition at December 31:



Timing of revenue recognition	2018	2017
Products transferred at a point in time	39%	40%
Products and services transferred over time	61%	60%
Net sales	100%	100%