Goodwill and Acquired Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following table identifies the activity relating to goodwill by operating segment:



In millions	Balance, December 31, 2015		Adjustments		Currency Translation Adjustments		Balance, March 31, 2016
Goodwill
Americas Data and Analytics	$	251	$	—	$	—	$	251
International Data and Analytics	129		—		4		133
Total goodwill	$	380	$	—	$	4	$	384

In the fourth quarter of 2015, the Company committed to a plan to exit the marketing applications business, which met the criteria for held for sale and continued to be reported under continuing operations. Not included in the table above is $56 million at March 31, 2016 and $113 million at December 31, 2015 for goodwill that has been classified as held for sale. See Note 13 for additional disclosures related to impairment charges recorded for goodwill that has been classified as held for sale.

Acquired intangible assets were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows:



		March 31, 2016					December 31, 2015
In millions	Amortization Life (in Years)	Gross Carrying Amount		Accumulated Amortization and Currency Translation Adjustments			Gross Carrying Amount		Accumulated Amortization and Currency Translation Adjustments
Acquired intangible assets
Intellectual property/developed technology	1 to 7	$	71	$	(56	)	$	83	$	(63	)
Customer relationships	3 to 10	—		—			3		(3		)
Trademarks/trade names	5	1		(1		)	1		(1		)
In-process research and development	5	5		(3		)	5		(3		)
Total acquired intangible assets		$	77	$	(60	)	$	92	$	(70	)

Not included in the table above is $25 million at March 31, 2016 and $44 million at December 31, 2015 for intangible assets that were classified as held for sale. See Note 13 for additional disclosures related to impairment charges recorded for intangible assets that have been classified as held for sale.

The aggregate amortization expense (actual and estimated) for acquired intangible assets is as follows:



	Three Months Ended March 31,
In millions	2016		2015
Amortization expense	$	5	$	11



	Actual		For the years ended (estimated)
In millions	2015		2016		2017		2018		2019
Amortization expense	$	40	$	10	$	7	$	3	$	2

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details