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Segment and Other Supplemental Information
 9 Months Ended
Sep. 30, 2013
Segment and Other Supplemental Information

11. Segment and Other Supplemental Information

Effective January 1, 2013, Teradata combined the management of the Europe, Middle East and Africa, and the Asia Pacific and Japan regions into a new International region. This larger International region has greater critical mass and leverage of resources for deployment of the Company’s integrated marketing management, big data analytics, and data warehouse solutions, and also possesses more knowledge depth for our numerous consulting and support services offers.

As a result, Teradata now manages its business in two geographic regions, which are also the Company’s operating segments: (1) the North America and Latin America (“Americas”) region; and (2) the International 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.

The following table presents regional segment revenue and gross margin for the Company. For comparative purposes, prior-year amounts have been reclassified to conform to the current-year presentation:

Three Months Ended
September 30,		 Nine Months Ended
September 30,
In millions 2013 2012 2013 2012

Revenue

Americas

 $ 409 $ 384 $ 1,169 $ 1,170

International

 257 263 754 755

Total revenue

 666 647 1,923 1,925

Gross margin

Americas

 233 229 668 703

International

 125 132 374 378

Total gross margin

 358 361 1,042 1,081

Selling, general and administrative expenses

 183 174 547 518

Research and development expenses

 43 44 140 133

Total income from operations

 132 143 355 430

Other expense, net

 0 0 (1 ) (1 )

Income before income taxes

 $ 132 $ 143 $ 354 $ 429

The following table presents revenue by product and services for the Company:

Three Months Ended
September 30,		 Nine Months Ended
September 30,
In millions 2013 2012 2013 2012

Products (software and hardware)(1)

 $ 306 $ 306 $ 858 $ 935

Consulting services

 200 194 593 552

Maintenance services

 160 147 472 438

Total services

 360 341 1,065 990

Total revenue

 $ 666 $ 647 $ 1,923 $ 1,925

(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.