Segment Information

12 Months Ended

Dec. 31, 2020

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 reportable operating segments are based on the following solutions: Eurasia Banking, Americas Banking and Retail.

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 income (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, we do 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 income (loss) before income taxes for the years ended December 31:


	2020		2019		2018
Net sales summary by segment
Eurasia Banking	$	1,431.1	$	1,649.8	$	1,800.2
Americas Banking	1,419.4		1,604.1		1,515.7
Retail	1,051.8		1,154.8		1,262.7
Total customer revenues	$	3,902.3	$	4,408.7	$	4,578.6

Intersegment revenues
Eurasia Banking	$	111.8	$	168.3	$	161.1
Americas Banking	11.3		15.5		13.8

Total intersegment revenues	$	123.1	$	183.8	$	174.9

Segment operating profit
Eurasia Banking	$	177.8	$	169.3	$	150.1
Americas Banking	191.0		119.7		17.2
Retail	77.6		58.3		47.1
Total segment operating profit	$	446.4	$	347.3	$	214.4

Corporate charges not allocated to segments (1)	$	(91.0)	$	(79.4)	$	(52.1)
Impairment of assets	(7.5)		(30.2)		(180.2)
Restructuring and DN Now transformation expenses	(181.8)		(114.8)		(79.3)
Net non-routine expense	(142.1)		(149.5)		(228.4)
	(422.4)		(373.9)		(540.0)
Operating profit (loss)	24.0		(26.6)		(325.6)
Other expense	(293.5)		(202.3)		(152.7)
Loss before taxes	$	(269.5)	$	(228.9)	$	(478.3)

(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 $142.1 for the year ended December 31, 2020 was due to purchase accounting pre-tax charges for amortization of acquired intangibles of $82.9, charges from a loss-making contract related to a discontinued offering of $25.5, legal, consulting and deal expenses, including gains/losses on divestitures, of $19.7, and other matters of $14.0. Net non-routine expense of $149.5 for the year ended December 31, 2019 was due to purchase accounting pre-tax changes for amortization of acquired intangibles of $93.3, legal, consulting and deal expenses, including gains/losses on divestitures, of $26.8 and inventory charges of $12.8, and other matters of $16.6. Net non-routine expense of $228.4 for the year ended December 31, 2018 was 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.

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


	2020		2019		2018
Eurasia Banking
Services	$	819.0	$	993.6	$	1,111.8
Products	612.1		656.2		688.4
Total Eurasia Banking	1,431.1		1,649.8		$	1,800.2
Americas Banking
Services	962.9		1,002.5		$	1,025.8
Products	456.5		601.6		489.9
Total Americas Banking	1,419.4		1,604.1		$	1,515.7
Retail
Services	582.6		612.0		$	651.9
Products	469.2		542.8		610.8
Total Retail	1,051.8		1,154.8		$	1,262.7
Total	$	3,902.3	$	4,408.7	$	4,578.6

The Company had no customers that accounted for more than 10 percent of total net sales in 2020, 2019 and 2018.

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


	2020		2019		2018
Americas
United States	$	974.7	$	1,024.7	$	1,047.7
Other Americas	502.9		654.6		556.7
Total Americas	1,477.6		1,679.3		1,604.4
EMEA
Germany	764.3		872.5		876.2
Other EMEA	1,282.0		1,400.4		1,583.8
Total EMEA	2,046.3		2,272.9		2,460.0
AP
Total AP	378.4		456.5		514.2
Total net sales	$	3,902.3	$	4,408.7	$	4,578.6

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


	2020		2019
Property, plant and equipment, net
United States	$	25.5	$	62.4
Germany	118.8		129.3
Other international	33.2		39.8
Total property, plant and equipment, net	$	177.5	$	231.5

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




Timing of revenue recognition	2020	2019
Products transferred at a point in time	39%	41%
Products and services transferred over time	61%	59%
Net sales	100%	100%