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Segment Information and Concentrations
6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND CONCENTRATIONS
4. SEGMENT INFORMATION AND CONCENTRATIONS

Subsequent to the Spin-Off, as described in Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”, the Company manages and reports the following segments:

Retail - Our Retail segment is focused on serving retailers of all sizes, from local businesses to some of the most recognized brands in the world. Our software and solutions connect to a modern technology platform that allows retailers to run their stores like they run their digital channels, improving the experience for their customers. These solutions are designed to improve operational efficiency, sales productivity, customer satisfaction and purchasing decisions; provide secure checkout processes and payment systems; and increase service levels.

Restaurants - Our Restaurants segment is focused on serving restaurants and food service establishments of all sizes, ranging from small and medium-sized businesses to some of the world’s top global food service enterprises. Our solution portfolio spans across table-service, quick-service and fast casual industries, providing competitive end-to-end solutions to “run-the-restaurant.” Our solution portfolio offers cloud-based, platform-enabled technology that is designed to improve operational efficiency, increase customer satisfaction, streamline order and transaction processing and reduce operating costs. In addition, we deliver service support, allowing our customers to focus on their core competencies. Our end-to-end services are a strong differentiating factor within the market.

Digital Banking - Our Digital Banking segment serves financial institutions by delivering software solutions which enable a fully integrated digital experience for consumer and business customers across all channels. We serve banks and credit unions in the United States with our cloud-based software solutions including account opening, account management, transaction processing, imaging, and branch services, among others. We are unique in our ability to offer unified banking solutions across digital (application and browser), in-branch and via interactive teller machines (“ITMs”).

Corporate and Other includes income and expenses related to corporate functions that are not specifically attributable to any of our three individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segment(s) and certain countries which are expected to transfer to NCR Atleos during the remainder of 2024, as well as commercial agreements with NCR Atleos.

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 Adjusted EBITDA. Adjusted EBITDA is defined as GAAP net income (loss) from continuing operations attributable to NCR Voyix plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus stock-based compensation expense; plus other income (expense); plus pension mark-to-market adjustments and other special items, including amortization of acquisition-related intangibles, acquisition-related costs, separation-related costs, cyber ransomware incident recovery costs net of insurance recoveries, fraudulent ACH disbursements costs, net of recoveries, transformation and restructuring charges (which includes integration, severance and other exit and disposal costs), and strategic initiative costs, among others. The special items are considered non-operational or non-recurring in nature, so are excluded from the Adjusted EBITDA metric utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported GAAP net income (loss) from continuing operations attributable to the Company.

Assets are not allocated to segments, and thus are not included in the assessment of segment performance. 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 condensed consolidated financial statements as a whole. Intersegment sales and transfers are not material.
The following table presents revenue and Adjusted EBITDA by segment:
In millionsThree months ended June 30Six months ended June 30
2024202320242023
Revenue by segment
Retail$517 $553 $1,008 $1,081 
Restaurants201 223 403 434 
Digital Banking154 141 301 278 
Total segment revenue$872 $917 $1,712 $1,793 
Other4 29 22 59 
Total revenue$876 $946 $1,734 $1,852 
Adjusted EBITDA by segment
Retail$87 $115 $173 $198 
Restaurants62 51 117 95 
Digital Banking63 54 117 103 
Segment Adjusted EBITDA$212 $220 $407 $396 

The following table reconciles Segment Adjusted EBITDA to Net income (loss) from continuing operations attributable to NCR Voyix:
In millionsThree months ended June 30Six months ended June 30
2024202320242023
Segment Adjusted EBITDA$212 $220 $407 $396 
Corporate and other income and expenses not allocated to reportable segments68 52 142 110 
Depreciation and amortization70 61 136 120 
Acquisition-related amortization of intangibles15 18 29 35 
Interest expense41 91 80 174 
Interest income(1)(3)(3)(6)
Acquisition-related costs  
Income tax expense (benefit)24 10 12 
Stock-based compensation expense14 25 27 50 
Transformation and restructuring costs(1)
51 79 
Separation costs(2)
3 8 
Loss (gain) on disposal of businesses(7)(4)(14)(7)
Foreign currency devaluation(3)
 — 15 — 
Fraudulent ACH disbursements(4)
(1)(2)
Cyber ransomware incident recovery costs(5)
(4)11 (4)11 
Strategic initiatives(6)
13 — 17 — 
Net income (loss) from continuing operations attributable to NCR Voyix$(74)$(51)$(113)$(123)
(1)Represents integration, severance, and other exit and disposal costs which are considered non-operational in nature.
(2)Represents costs incurred as a result of the Spin-Off. Professional fees to effect the spin-off of NCR Atleos including separation management, organizational design, and legal fees have been classified within discontinued operations during the three and six months ended June 30, 2023.
(3)Represents gains and losses recognized during the period due to changes in valuation of the Lebanese pound and the Egyptian pound.
(4)Represents Company identified fraudulent ACH disbursements from a Company bank account. Additional details regarding this item are discussed in Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”.
(5)Represents expenses to respond to, remediate and investigate the April 13, 2023 cyber ransomware incident, net of insurance recoveries. Additional details regarding this cyber ransomware incident are discussed in Note 1, “Basis of Presentation and Summary of Significant Accounting Policies”.
(6)Represents professional fees related to strategic initiatives which are considered non-operational in nature.
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 the Company:
In millionsThree months ended June 30Six months ended June 30
2024202320242023
United States$589 $662 $1,194 $1,293 
Americas (excluding United States)71 63 130 125 
Europe, Middle East and Africa132 127 253 256 
Asia Pacific84 94 157 178 
Total revenue$876 $946 $1,734 $1,852 

The following table presents the recurring revenue and all other products and services revenue that is recognized at a point in time for the Company:
In millionsThree months ended June 30Six months ended June 30
2024202320242023
Recurring revenue(1)
$544 $535 $1,076 $1,059 
All other products and services332 411 658 793 
Total revenue$876 $946 $1,734 $1,852 
(1) Recurring revenue includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.