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Segment, Other Supplemental Information and Concentrations
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment, Other Supplemental Information and Concentrations
Segment, Other Supplemental Information and Concentrations
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 was intended to 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 for the years ended December 31: 
In millions
2015
 
2014
 
2013
Segment revenue
 
 
 
 
 
Data and Analytics
$
2,337

 
$
2,523

 
$
2,478

Marketing Applications
193

 
209

 
214

Total revenue
2,530

 
2,732

 
2,692

Segment gross margin
 
 
 
 
 
Data and Analytics
1,237

 
1,422

 
1,399

Marketing Application
79

 
94

 
109

Total segment gross margin
1,316

 
1,516

 
1,508

Stock-based compensation expense
13

 
11

 
7

Amortization of acquisition-related intangible assets
19

 
21

 
24

Acquisition, integration and reorganization-related costs
8

 
5

 
4

Total gross margin
1,276

 
1,479

 
1,473

Selling, general and administrative expenses
765

 
770

 
757

Research and development expenses
228

 
206

 
184

Impairment of goodwill and acquired intangibles
478

 
—

 
—

Total (loss) income from operations
$
(195
)
 
$
503

 
$
532


 
The following table presents revenue by product and services revenue for the Company for the years ended December 31:
In millions
2015
 
2014
 
2013
Products (software and hardware)(1)
$
1,057

 
$
1,227

 
$
1,230

Consulting services
780

 
817

 
818

Maintenance services
693

 
688

 
644

Total services
1,473

 
1,505

 
1,462

Total revenue
$
2,530

 
$
2,732

 
$
2,692

 
(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 revenues by geographic area at December 31: 
In millions
2015
 
2014
 
2013
United States
$
1,428

 
$
1,458

 
$
1,511

Americas (excluding United States)
125

 
161

 
122

International
977

 
1,113

 
1,059

Total revenue
$
2,530

 
$
2,732

 
$
2,692


The following table presents property and equipment by geographic area at December 31: 
In millions
2015(1)
 
2014
United States
$
129

 
$
130

Americas (excluding United States)
3

 
4

International
23

 
25

Property and equipment, net
$
155

 
$
159


(1) 2015 amounts include property and equipment held for sale for $12 million.
Concentrations. No single customer accounts for more than 10% of the Company's revenue. As of December 31, 2015, 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's hardware components are assembled exclusively by Flextronics. In addition, the Company utilizes preferred supplier relationships to better ensure more consistent quality, cost and delivery. There can be no assurances that a disruption in production at Flextronics or at a supplier would not have a material adverse effect on the Company's operations.
Changes in segment reporting. Beginning January 2016, the Company will change its operating segments and report future results under three separate segments: (a) Americas Data and Analytics (b) International Data and Analytics, and (c) Marketing Applications until such time as the portion of the marketing applications business to be divested is sold. The remainder of the marketing applications business that will be retained will be reported under the data and analytics operating segments.