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Segment and Other Supplemental Information
 6 Months Ended
Jun. 30, 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 it now manages the Company's business under two geographic regions and the marketing applications division (prior to its completed sale on July 1, 2016); 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. 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. Going forward, following the sale of the marketing applications business, Teradata will manage its business in two operating segments: (1) Americas region (North America and Latin America); and (2) International region (Europe, Middle East, Africa, Asia Pacific and Japan).
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
2016
 
2015
 
2016
 
2015
Segment revenue
 
 
 
 
 
 
 
 Americas Data and Analytics
$
325

 
$
348

 
$
620

 
$
684

 International Data and Analytics
239

 
237

 
455

 
445

Total Data and Analytics
564

 
585

 
1,075

 
1,129

Marketing Applications
35

 
38

 
69

 
76

Total revenue
599

 
623

 
1,144

 
1,205

Segment gross margin
 
 
 
 
 
 
 
 Americas Data and Analytics
183

 
204

 
347

 
383

 International Data and Analytics
116

 
118

 
213

 
211

Total Data and Analytics
299

 
322

 
560

 
594

Marketing Applications
16

 
16

 
33

 
31

Total segment gross margin
315

 
338

 
593

 
625

Stock-based compensation costs
(3
)
 
(3
)
 
(7
)
 
(7
)
Amortization of acquisition-related intangible assets costs
—

 
(6
)
 
(2
)
 
(11
)
Acquisition, integration and reorganization-related costs
(2
)
 
(2
)
 
(5
)
 
(3
)
Selling, general and administrative expenses
172

 
190

 
346

 
374

Research and development expenses
51

 
59

 
108

 
122

Impairment of goodwill, acquired intangibles and other assets
—

 
340

 
80

 
340

Income (loss) from operations
$
87

 
$
(262
)
 
$
45

 
$
(232
)


On July 1, 2016, Teradata completed the sale of our Marketing Applications business to exclusively focus on our data and analytics business as part of our business transformation plan. See note 14 for additional details.
The following table presents revenue by product and services for the Company:
 
Three Months Ended
June 30,
 
Six Months Ended 
 June 30,
In millions
2016
 
2015
 
2016
 
2015
Products (software and hardware)(1)
$
228

 
$
256

 
$
422

 
$
497

Consulting services
192

 
194

 
371

 
366

Maintenance services
179

 
173

 
351

 
342

Total services
371

 
367

 
722

 
708

Total revenue
$
599

 
$
623

 
$
1,144

 
$
1,205

 
(1) Our analytic database software and hardware products are often sold and delivered together as an integrated technology solution in the form of a “node” of capacity. Accordingly, it is impracticable to provide the breakdown of revenue from various types of software and hardware products.