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Segment and Other Supplemental Information
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment and Other Supplemental Information
Segment and Other Supplemental Information
Effective January 1, 2015, Teradata implemented an organizational change in which Teradata now manages its business in two divisions, which are also the Company’s operating segments: (1) data and analytics, and (2) marketing applications. This change will enable each division to be more sharply focused in rapidly addressing the dynamics of each market, and in bringing the best solutions to our customers. For purposes of discussing results by segment, management excludes the impact of certain items, consistent with the manner by which management evaluates the performance of each segment. This format is useful to investors because it allows analysis and comparability of operating trends. It also includes the same information that is used by Teradata management to make decisions regarding the segments and to assess financial performance. The chief operating decision maker evaluates the performance of the segments based on revenue and multiple profit measures, including segment gross margin. For management reporting purposes assets are not allocated to the segments. Prior period segment information has been reclassified to conform to the current period presentation.
The following table presents segment revenue and segment gross margin for the Company:
 
Three Months Ended
June 30,
 
Six months ended June 30,
In millions
2015
 
2014
 
2015
 
2014
Segment revenue
 
 
 
 
 
 
 
Data and Analytics
$
575

 
$
623

 
$
1,111

 
$
1,200

Marketing Applications
48

 
53

 
94

 
104

Total revenue
623

 
676

 
1,205

 
1,304

Segment gross margin
 
 
 
 
 
 
 
Data and Analytics
318

 
355

 
587

 
677

Marketing Applications
20

 
24

 
38

 
47

Total segment gross margin
338

 
379

 
625

 
724

Stock-based compensation expense
(3
)
 
(3
)
 
(7
)
 
(6
)
Amortization of acquisition-related intangible assets
(6
)
 
(5
)
 
(11
)
 
(10
)
Acquisition, integration and reorganization-related costs
(2
)
 
—

 
(3
)
 
(4
)
Total gross margin
327

 
371

 
604

 
704

Selling, general and administrative expenses
190

 
188

 
374

 
376

Research and development costs
59

 
50

 
122

 
106

Impairment of goodwill
340

 
—

 
340

 
—

(Loss) income from operations
$
(262
)
 
$
133

 
$
(232
)
 
$
222



The following table presents revenue by product and services for the Company:
 
Three Months Ended
June 30,
 
Six Months Ended June 30,
In millions
2015
 
2014
 
2015
 
2014
Products (software and hardware)(1)
$
256

 
$
300

 
$
497

 
$
573

Consulting services
194

 
203

 
366

 
392

Maintenance services
173

 
173

 
342

 
339

Total services
367

 
376

 
708

 
731

Total revenue
$
623

 
$
676

 
$
1,205

 
$
1,304

 
(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.