XML 83 R18.htm IDEA: XBRL DOCUMENT v2.4.1.9
Segment, Other Supplemental Information and Concentrations
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment, Other Supplemental Information and Concentrations
Segment, Other Supplemental Information and Concentrations
Teradata has historically managed 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
2014
 
2013
 
2012
Segment revenue
 
 
 
 
 
Americas (1)
$
1,619

 
$
1,633

 
$
1,619

International
1,113

 
1,059

 
1,046

Total revenue
2,732

 
2,692

 
2,665

Segment gross margin
 
 
 
 
 
Americas
943

 
947

 
967

International
536

 
526

 
524

Total gross margin
1,479

 
1,473

 
1,491

Selling, general and administrative expenses
770

 
757

 
728

Research and development expenses
206

 
184

 
183

Total income from operations
503

 
532

 
580

Other expense, net
(9
)
 
(24
)
 
(2
)
Income before income taxes
$
494

 
$
508

 
$
578


 
(1)
The Americas region includes revenue generated in the United States of $1,458 million in 2014, $1,511 million in 2013 and $1,478 million in 2012.

The following table presents revenue by product and services revenue for the Company for the years ended December 31:
In millions
2014
 
2013
 
2012
Products (software and hardware)(1)
$
1,227

 
$
1,230

 
$
1,297

Consulting services
817

 
818

 
776

Maintenance services
688

 
644

 
592

Total services
1,505

 
1,462

 
1,368

Total revenue
$
2,732

 
$
2,692

 
$
2,665

 
(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
2014
 
2013
United States
$
130

 
$
131

Americas (excluding United States)
4

 
3

International
25

 
27

Property and equipment, net
$
159

 
$
161


Concentrations. No single customer accounts for more than 10% of the Company's revenue. As of December 31, 2014, 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.
Changes in segment reporting. Beginning January 2015, the Company will change its operating segments and report future results as two new separate segments: (a) data and analytics and (b) marketing applications.