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Assets and Liabilities Held for Sale
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Assets and Liabilities Held for Sale
Assets and Liabilities Held for Sale
In the fourth quarter of 2015, the Company committed to a plan to exit the marketing applications business. The Company determined that it was in the long-term best interests of the Company and its shareholders to realign Teradata’s business by focusing on the Company’s core data and analytics business. The assets and liabilities for this business, which are included within our marketing applications segment, were classified as held for sale in the fourth quarter of 2015 and, therefore, the corresponding depreciation and amortization expense was ceased at that time. The anticipated divestiture is not presented as discontinued operations in our consolidated financial statements, because it does not have a major effect on the Company's operations and financial results.
For the six months ended June 30, 2016, we generated revenue from these assets of $69 million. Additionally, for the six months ended June 30, 2016 we recognized operating loss from these assets of $112 million (includes loss from impairment of goodwill and acquired intangibles of $76 million).
When an asset is classified as held for sale, the asset’s carrying amount is evaluated and adjusted to the lower of its carrying amount or fair value less costs to sell. On April 22, 2016, the Company entered into a definitive Asset Purchase Agreement (the “Purchase Agreement”) with TMA Solutions, L.P., a Cayman Islands exempted limited partnership and affiliate of Marlin Equity Partners (“Marlin Equity”) to sell the marketing applications business for $90 million in cash, subject to a post-closing adjustment for working capital, debt and other metrics, which is currently estimated at $92 million. The Company performed a goodwill impairment analysis on the business to be disposed of based on the fair value as determined using the Purchase Agreement. As a result of this analysis, the Company recognized an impairment of goodwill of $57 million in the first quarter of 2016. The remaining goodwill of $57 million is disclosed in the assets held for sale in the Consolidated Balance Sheets. In addition, in the first quarter of 2016, acquired intangible assets were reduced by $19 million to adjust the carrying amount of the disposal group's net assets and liabilities down to its fair value less cost to sell. No further adjustment was required in the second quarter of 2016 to either goodwill or acquired intangible assets.
A summary of the carrying amounts of assets and liabilities held for sale on our consolidated balance sheets as of June 30, 2016 related to the anticipated divestiture discussed above is detailed below:
 
As of
As of
In millions
June 30, 2016
December 31, 2015
Current assets held for sale
 
 
Accounts receivable, net
$
35

$
41

Other current assets
2

3

Total current assets held for sale
37

44

Property and equipment, net
11

12

Goodwill
57

113

Acquired intangibles, net
25

44

Other assets
—

1

Total assets held for sale
$
130

$
214

 
 
 
Current liabilities held for sale
 
 
Accounts payable
4

10

Payroll and benefits liabilities
4

12

Deferred Revenue
28

30

Other current liabilities
2

5

Total current liabilities held for sale
38

57

Other liabilities
5

1

Total liabilities held for sale
$
43

$
58