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Segment, Other Supplemental Information and Concentrations
 12 Months Ended
Dec. 31, 2012
Segment, Other Supplemental Information and Concentrations

Note 11 Segment, Other Supplemental Information and Concentrations

Through December 31, 2012, Teradata managed its business in three geographic regions, which are also the Company’s operating segments: (1) the North America and Latin America (“Americas”) region; (2) the Europe, Middle East and Africa (“EMEA”) region; and (3) the Asia Pacific and Japan (“APJ”) region. Management evaluates the performance of its segments based on revenue and segment margin, and does not include segment assets for management reporting purposes. Corporate-related costs are fully-allocated to the segments.

Effective January 1, 2013, Teradata implemented an organizational change whereby the EMEA and APJ regions are being combined into a new International region. This larger International region will have greater critical mass and leverage of resources for deployment of the Company’s integrated marketing management, big data analytics, and data warehouse solutions, as well as possess more knowledge and depth for our numerous consulting and support services offers.

The following table presents regional segment revenue and segment gross margin for the Company for the years ended December 31:

 

In millions    2012     2011      2010  

Segment revenue

        

Americas (1)

    $ 1,619      $ 1,436       $ 1,166   

EMEA

      636        548         442   

APJ

      410        378         328   
  

 

 

    

 

 

     

 

 

  

Total revenue

      2,665        2,362         1,936   
  

 

 

    

 

 

     

 

 

  

Segment gross margin

        

Americas

      967        837         702   

EMEA

      331        281         232   

APJ

      193        175         154   
  

 

 

    

 

 

     

 

 

  

Total gross margin

      1,491        1,293         1,088   
  

 

 

    

 

 

     

 

 

  

Selling, general and administrative expenses

      728        663         526   

Research and development expenses

      183        174         147   
  

 

 

    

 

 

     

 

 

  

Total income from operations

      580        456         415   

Other (expense) income, net

      (2 )      25         (1 ) 
  

 

 

    

 

 

     

 

 

  

Income before income taxes

    $ 578      $ 481       $ 414   
  

 

 

    

 

 

     

 

 

  

 

(1) 

The Americas region includes revenue from the United States of $1,478 million in 2012, $1,315 million in 2011 and $1,059 million in 2010.

The following table presents revenue by product and services revenue for the Company for the years ended December 31:

 

In millions    2012      2011      2010  

Products (software and hardware)(1)

    $ 1,297       $ 1,122       $ 933   
  

 

 

     

 

 

     

 

 

  

Consulting services

      776         695         536   

Maintenance services

      592         545         467   
  

 

 

     

 

 

     

 

 

  

Total services

      1,368         1,240         1,003   
  

 

 

     

 

 

     

 

 

  

Total revenue

    $ 2,665       $ 2,362       $ 1,936   
  

 

 

     

 

 

     

 

 

  

 

(1) 

Our data warehousing software and hardware products are often sold and delivered together in the form of a “node” of capacity as an integrated technology solution. Accordingly, it is impracticable to provide the breakdown of revenue from various types of software and hardware products.

The following table presents property and equipment by geographic area at December 31:

 

In millions    2012      2011  

United States

    $ 121       $ 100   

Americas (excluding United States)

      3         3   

EMEA

      9         4   

APJ

      17         13   
  

 

 

     

 

 

  

Property and equipment, net

    $ 150       $ 120   
  

 

 

     

 

 

  

Concentrations. No single customer accounts for more than 10% of the Company’s revenue. As of December 31, 2012, the Company is not aware of any significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on the Company’s operations. The Company also has no concentration of available sources of labor, services, licenses or other rights that could, if suddenly eliminated, have a material adverse effect on its operations.