Statements that describe or relate to NCRs plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. The decrease in income tax expense (non-GAAP) was primarily driven by lower income before taxes.Borrowings on revolving credit facilitiesNCR Corporation (NYSE: NCR) reported financial results today for the three months ended June 30, 2020. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile.Payments on revolving credit facilitiesWhile it is difficult to project how deep the pandemic will be and how long it will last, we do expect it will negatively impact our business for the remainder of 2020 and into 2021. Income statements, balance sheets, cash flow statements and key ratios. The following table shows revenue for the second quarter:Common stock: par value $0.01 per share, 500.0 shares authorized, 128.2, 127.3 and 127.7 shares issued and outstanding as of June 30, 2020, March 31, 2020 and December 31, 2019, respectivelySecond quarter gross margin of $372 million decreased from $471 million in the prior year period. The COVID-19 pandemic is complex and rapidly evolving. A credit provider must submit its annual financial statements including the auditor or accounting officer's report to the National Credit Regulator, within 6 months after the credit provider's financial year-end; Annual Financial and Operational Return 66. Income statements, balance sheets, cash flow statements and key ratios. They are also available online through the … Selling, general and administrative expensesNet change in funds held for clientsNet cash provided by (used in) discontinued operationsCurrent payables and accrued expensesRecurring revenue means revenue for products and services under contract for which revenue is recognized over time.Loss from discontinued operationsNet income (loss) attributable to NCR common stockholdersNon-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. The second quarter effective income tax rate (non-GAAP) was 33%, compared to 16% in the prior year period. These non-GAAP measures are reconciled to their most directly comparable GAAP measures in the tables below.Series A Preferred Stock DividendsGain on sale of property, plant and equipmentIn this release, we use certain non-GAAP measures, including presenting certain measures on a constant currency basis. The decreases in operating expenses, both GAAP and non-GAAP, were primarily due to a reduction from initiatives implemented in the first quarter to address the business impacts from COVID-19, including among others, salary reductions, elimination of certain contractors and curtailing travel, partially offset by an increase in account receivable reserves.Transformation and restructuring costsIn the second quarter, we further advanced our strategy, including strong recurring revenue growth and free cash flow generation, as we executed at a high level in an operating environment that was negatively impacted by COVID-19, said Michael Hayford, President and Chief Executive Officer. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP.
The decreases in gross margin rate, both GAAP and non-GAAP, were driven by the reduction in revenue impacted by the COVID-19 pandemic as well as the impact from the shift to recurring revenue.Gain on sale of property, plant and equipmentProperty, plant and equipment, netSecond quarter net income from continuing operations attributable to NCR of $64 million decreased from $88 million in the prior year period. There can be no assurance that the measures we have taken will offset the negative impact of COVID-19.In this release, we use certain non-GAAP measures, including presenting certain measures on a constant currency basis. The COVID-19 pandemic had a material impact to revenue and the shift from selling perpetual software licenses to recurring revenue lowered revenue by $22 million. View NCR financial statements in full.
GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company’s Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding.