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Segment and Other Supplemental Information
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment and Other Supplemental Information
Segment and Other Supplemental Information
Effective January 1, 2016, Teradata implemented an organizational change in which Teradata now manages its business under two geographic regions and the marketing applications division prior to its expected sale, which are also the Company’s operating segments: (1) Americas Data and Analytics (North America and Latin America); (2) International Data and Analytics (Europe, Middle East, Africa, Asia Pacific and Japan); and (3) Marketing Applications. This change reflects the dynamics of each market, and how we bring 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
March 31,
In millions
2016
 
2015
Segment revenue
 
 
 
 Americas Data and Analytics
$
295

 
$
336

 International Data and Analytics
216

 
208

Total Data and Analytics
511

 
544

Marketing Applications
34

 
38

Total revenue
545

 
582

Segment gross margin
 
 
 
 Americas Data and Analytics
164

 
179

 International Data and Analytics
97

 
93

Total Data and Analytics
261

 
272

Marketing Applications
17

 
15

Total segment gross margin
278

 
287

Stock-based compensation costs
(4
)
 
(4
)
Amortization of acquisition-related intangible assets costs
(2
)
 
(5
)
Acquisition, integration and reorganization-related costs
(3
)
 
(1
)
Selling, general and administrative expenses
174

 
184

Research and development expenses
57

 
63

Impairment of goodwill, acquired intangibles and other assets
80

 
—

(Loss) income from operations
$
(42
)
 
$
30



The following table presents revenue by product and services for the Company:
 
Three Months Ended
March 31,
In millions
2016
 
2015
Products (software and hardware)(1)
$
194

 
$
241

Consulting services
179

 
172

Maintenance services
172

 
169

Total services
351

 
341

Total revenue
$
545

 
$
582

 
(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.