XML 40 R26.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 19: Segment Information

During the second quarter of 2022, the Company appointed a new Chief Executive Officer and announced an organizational simplification initiative. In connection with those events, the Company's reportable segments are no longer Americas Banking, Eurasia Banking and Retail, and instead the reportable operating segments are the following: Banking and Retail. Under the simplified organization and related restructuring discussed in Note 8, the Company does not have regionally focused direct reports to the CODM, and the CODM analyzes Banking and Retail on a global basis and not based on regional profitability metrics.

The Company's new reportable segment information below directly aligns with how the recently appointed Chief Executive Officer, who is also the CODM, regularly reviews results to make decisions, allocate resources and assess performance. The new Banking segment's sales and cost of sales are the summation of the legacy Americas Banking and Eurasia Banking's sales and cost of sales. The Company will continually consider its operating structure and the information subject to regular review.

Segment operating profit (loss) as disclosed herein is consistent with the segment profit or loss measure used by the CODM and does not include corporate charges, amortization of acquired intangible assets, asset impairment, restructuring and transformation charges, the results of the held-for-sale European retail business, or other non-routine, unusual or infrequently occurring items, as the CODM does not regularly review and use such financial measures to make decisions, allocate resources and assess performance.

Segment revenue represents revenues from sales to external customers. Segment operating profit is defined as revenues less expenses directly attributable to the segments. The Company does not allocate to its segments certain operating expenses which are managed at the headquarters level; that are not used in the management of the segments, not segment-specific, and impractical to allocate. In some cases the allocation of corporate charges has changed from the legacy structure to the new structure, but prior periods have been recast to conform to the new presentation. Segment operating profit reconciles to consolidated income (loss) before income taxes by deducting items that are not attributed to the segments and which are managed independently of segment results. 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 present information regarding the Company’s segment performance and provide a reconciliation between segment operating profit and the consolidated income (loss) before income taxes:
Three months endedNine months ended
September 30September 30
 2022202120222021
Net sales summary by segment
Banking$580.3 $670.1 $1,733.3 $1,948.1 
Retail225.0 288.1 742.4 897.5 
Held for sale non-core European retail business(7)
5.1 — 16.2 — 
Total revenue$810.4 $958.2 $2,491.9 $2,845.6 
Segment operating profit
Banking$83.1 $109.6 $209.4 $320.3 
Retail31.1 43.6 90.0 124.9 
Total segment operating profit114.2 153.2 299.4 445.2 
Corporate charges not allocated to segments (1)
(54.2)(71.9)(188.0)(221.9)
Impairment of assets (2)
(4.1)(0.3)(64.7)(0.3)
Amortization of Wincor Nixdorf purchase accounting intangible assets(3)
(16.6)(19.5)(52.8)(59.3)
Restructuring and transformation expenses(4)
(20.7)(20.9)(98.9)(74.4)
Refinancing related costs(5)
(13.4)— (13.4)— 
Net non-routine expense(6)
5.3 (1.9)(34.3)(1.5)
Held for sale non-core European retail business(7)
(5.0)— (16.7)— 
(108.7)(114.5)(468.8)(357.4)
Operating profit (loss)5.5 38.7 (169.4)87.8 
Other income (expense)(51.5)(41.3)(142.1)(137.2)
Loss before taxes$(46.0)$(2.6)$(311.5)$(49.4)
(1)    Corporate charges not allocated to segments include headquarter-based costs associated primarily with human resources, finance, IT and legal that are not directly attributable to a particular segment and are separately assessed by the CODM for purposes of making decisions, assessing performance and allocating resources.
(2)    Refer to Notes 20 and 21 for further information on the impairment charges taken in the first and second quarters of 2022. During the third quarter of 2022, and in connection with the organizational simplification, $4.1 of German capitalized software was identified as impaired.
(3)    The amortization of purchase accounting intangible assets is not included in the segment results used by the CODM to make decisions, allocate resources or assess performance.
(4)    Refer to Note 8: Restructuring for further information. Consistent with the historical reportable segment structure, restructuring and transformation costs are not assigned to the segments, and are separately analyzed by the CODM.
(5)    Refinancing related costs are fees earned by our advisors and the advisors of our potential lenders. As these costs were incurred prior to September 30, 2022, at which point an agreement with respect to a debt refinancing remained under negotiation and subject to material changes, these costs are not considered directly attributable to the Transaction Support Agreement and thus are accounted for as period expense.
(6)    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 as they are not included in the measure used by the CODM to make decisions, allocate resources and assess performance. Net non-routine expense for the three months ended September 30, 2022 related primarily to gains made on divestitures of certain assets. Net non-routine expense for the nine months ended September 30, 2022 primarily consisted of inventory charges related to legacy product of $34.4 which management determined would no longer be sold as part of a product portfolio consolidation connected with the organizational simplification. Also included in net non-routine expense are charges related to the wind-down of our operations in Russia and Ukraine as discuss in Note 21 and charges related to mergers, acquisitions and divestitures.
(7)    Held for sale non-core European retail business represents the revenue and operating profit of a business that has been classified as held for sale for all of the periods presented, but which was removed in 2022 from the retail segment's information used by the CODM to make decisions, assess performance and allocate resources, and now is individually analyzed. This change and timing thereof aligns with the build-out of a data center that makes the entity capable of operating autonomously and is consistent with material provided in connection with our refinancing effort which are exclusive of this entity. The presentation in the periods ended September 30, 2022 and 2021 is consistent with management reporting. Total revenue generated by this business was $5.1 and $16.2 in the three and nine month periods ended September 30, 2022, compared to $4.6 and $18.1 for the three and nine month periods ended September 30, 2021. Operating loss generated by this business was $5.0 and $16.7 in the three and nine month periods ended September 30, 2022, compared to $2.8 and $10.3 for the three and nine month periods ended September 30, 2021.
The following table presents information regarding the Company’s segment net sales by service and product solution:
Three months endedNine months ended
September 30September 30
2022202120222021
Segments
Banking
Services$379.9 $414.6 $1,152.9 $1,255.9 
Products200.4 255.5 580.4 692.2 
Total Banking580.3 670.1 1,733.3 1,948.1 
Retail
Services130.4 147.1 405.6 466.1 
Products94.6 141.0 336.8 431.4 
Total Retail225.0 288.1 742.4 897.5 
Held for sale non-core European retail business
Services4.0 — 7.4 — 
Products1.1 — 8.8 — 
Total revenue $810.4 $958.2 $2,491.9 $2,845.6