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Segment, Other Supplemental Information and Concentrations
 12 Months Ended
Dec. 31, 2013
Segment, Other Supplemental Information and Concentrations

Note 11 Segment, Other Supplemental Information and Concentrations

Teradata manages its business in two geographic regions, which are also the Company’s operating segments: (1) the Americas region (North America and Latin America); and (2) the International region (Europe, Middle East, Africa, Asia Pacific and Japan). Management evaluates the performance of its segments based on revenue and segment margin. Corporate-related costs are fully-allocated to the segments, but for management reporting purposes assets are not allocated to the segments.

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

 

In millions    2013     2012     2011  

Segment revenue

       

Americas (1)

    $ 1,633      $ 1,619      $ 1,436   

International

      1,059        1,046        926   
  

 

 

    

 

 

    

 

 

  

Total revenue

      2,692        2,665        2,362   
  

 

 

    

 

 

    

 

 

  

Segment gross margin

       

Americas

      947        967        837   

International

      526        524        456   
  

 

 

    

 

 

    

 

 

  

Total gross margin

      1,473        1,491        1,293   
  

 

 

    

 

 

    

 

 

  

Selling, general and administrative expenses

      757        728        663   

Research and development expenses

      184        183        174   
  

 

 

    

 

 

    

 

 

  

Total income from operations

      532        580        456   

Other (expense) income, net

      (24 )      (2 )      25   
  

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 508      $ 578      $ 481   
  

 

 

    

 

 

    

 

 

  

 

(1) 

The Americas region includes revenue from the United States of $1,511 million in 2013, $1,478 million in 2012 and $1,315 million in 2011.

 

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

 

In millions    2013      2012      2011  

Products (software and hardware)(1)

    $ 1,230       $ 1,297       $ 1,122   
  

 

 

     

 

 

     

 

 

  

Consulting services

      818         776         695   

Maintenance services

      644         592         545   
  

 

 

     

 

 

     

 

 

  

Total services

      1,462         1,368         1,240   
  

 

 

     

 

 

     

 

 

  

Total revenue

    $ 2,692       $ 2,665       $ 2,362   
  

 

 

     

 

 

     

 

 

  

 

(1) 

Our analytic database 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    2013      2012  

United States

    $ 131       $ 121   

Americas (excluding United States)

      3         3   

International

      27         26   
  

 

 

     

 

 

  

Property and equipment, net

    $ 161       $ 150   
  

 

 

     

 

 

  

Concentrations. No single customer accounts for more than 10% of the Company’s revenue. As of December 31, 2013, 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.