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Segment and Other Supplemental Information
 6 Months Ended
Jun. 30, 2014
Segment and Other Supplemental Information

11. Segment and Other Supplemental Information

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:

 

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
In millions    2014     2013      2014     2013  

Segment revenue

          

Americas

    $ 374      $ 405       $ 758      $ 760   

International

      302        265         546        497   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total revenue

      676        670         1,304        1,257   
  

 

 

    

 

 

     

 

 

    

 

 

  

Segment gross margin

          

Americas

      217        240         440        435   

International

      154        139         264        249   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total gross margin

      371        379         704        684   
  

 

 

    

 

 

     

 

 

    

 

 

  

Selling, general and administrative expenses

      188        185         376        364   

Research and development expenses

      50        47         106        97   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total income from operations

      133        147         222        223   

Other expense, net

      (1 )      0         (8 )      (1 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Income before income taxes

    $ 132      $ 147       $ 214      $ 222   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

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

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
In millions    2014      2013      2014      2013  

Products (software and hardware)(1)

    $ 300       $ 303       $ 573       $ 552   
  

 

 

     

 

 

     

 

 

     

 

 

  

Consulting services

      203         207         392         393   

Maintenance services

      173         160         339         312   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total services

      376         367         731         705   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue

    $ 676       $ 670       $ 1,304       $ 1,257   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(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.