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Segment and Other Supplemental Information
 9 Months Ended
Sep. 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 decided to manage 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. Effective July 1, 2016, following the sale of the marketing applications business, Teradata is managing 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). 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
September 30,
 
Nine Months Ended 
 September 30,
In millions
2016
 
2015
 
2016
 
2015
Segment revenue
 
 
 
 
 
 
 
 Americas Data and Analytics
$
317

 
$
347

 
$
937

 
$
1,031

 International Data and Analytics
235

 
221

 
690

 
666

Total Data and Analytics
552

 
568

 
1,627

 
1,697

Marketing Applications
—

 
38

 
69

 
114

Total revenue
552

 
606

 
1,696

 
1,811

Segment gross margin
 
 
 
 
 
 
 
 Americas Data and Analytics
185

 
197

 
532

 
580

 International Data and Analytics
113

 
104

 
326

 
315

Total Data and Analytics
298

 
301

 
858

 
895

Marketing Applications
—

 
15

 
33

 
46

Total segment gross margin
298

 
316

 
891

 
941

Stock-based compensation costs
(3
)
 
(3
)
 
(11
)
 
(10
)
Amortization of acquisition-related intangible assets costs
—

 
(4
)
 
(2
)
 
(15
)
Acquisition, integration and reorganization-related costs
(1
)
 
(2
)
 
(5
)
 
(5
)
Selling, general and administrative expenses
159

 
179

 
505

 
553

Research and development expenses
46

 
51

 
154

 
173

Impairment of goodwill, acquired intangibles and other assets
—

 
—

 
80

 
340

Income (loss) from operations
$
89

 
$
77

 
$
134

 
$
(155
)


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 13 for additional details.
The following table presents revenue by product and services for the Company:
 
Three Months Ended
September 30,
 
Nine Months Ended 
 September 30,
In millions
2016
 
2015
 
2016
 
2015
Products (software and hardware)(1)
$
208

 
$
240

 
$
630

 
$
737

Consulting services
169

 
194

 
540

 
560

Maintenance services
175

 
172

 
526

 
514

Total services
344

 
366

 
1,066

 
1,074

Total revenue
$
552

 
$
606

 
$
1,696

 
$
1,811

 
(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.