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Segment, Other Supplemental Information and Concentrations
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment, Other Supplemental Information and Concentrations
Segment, Other Supplemental Information and Concentrations
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 for the years ended December 31: 
In millions
2016
 
2015
 
2014
Segment revenue
 
 
 
 
 
Americas Data and Analytics
$
1,334

 
$
1,470

 
$
1,534

International Data and Analytics
919

 
907

 
1,034

Total Data and Analytics
2,253

 
2,377

 
2,568

Marketing Applications
69

 
153

 
164

Total revenue
2,322

 
2,530

 
2,732

Segment gross margin
 
 
 
 
 
Americas Data and Analytics
754

 
824

 
917

International Data and Analytics
425

 
429

 
523

Total Data and Analytics
1,179

 
1,253

 
1,440

Marketing Application
33

 
63

 
76

Total segment gross margin
1,212

 
1,316

 
1,516

Stock-based compensation expense
14

 
13

 
11

Amortization of acquisition-related intangible assets
2

 
19

 
21

Acquisition, integration and reorganization-related costs
8

 
8

 
5

Total gross margin
1,188

 
1,276

 
1,479

Selling, general and administrative expenses
664

 
765

 
770

Research and development expenses
212

 
228

 
206

Impairment of goodwill, acquired intangibles and other assets
80

 
478

 
—

Total income (loss) from operations
$
232

 
$
(195
)
 
$
503


 
The following table presents revenue by product and services revenue for the Company for the years ended December 31:
In millions
2016
 
2015
 
2014
Products (software and hardware)(1)
$
889

 
$
1,057

 
$
1,227

Consulting services
730

 
780

 
817

Maintenance services
703

 
693

 
688

Total services
1,433

 
1,473

 
1,505

Total revenue
$
2,322

 
$
2,530

 
$
2,732

 
(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.
The following table presents revenues by geographic area for the years ended December 31: 
In millions
2016
 
2015
 
2014
United States
$
1,246

 
$
1,428

 
$
1,458

Americas (excluding United States)
123

 
125

 
161

International
953

 
977

 
1,113

Total revenue
$
2,322

 
$
2,530

 
$
2,732


The following table presents property and equipment by geographic area at December 31: 
In millions
2016
 
2015(1)
United States
$
113

 
$
129

Americas (excluding United States)
4

 
3

International
21

 
23

Property and equipment, net
$
138

 
$
155


(1) 2015 amounts include property and equipment held for sale for $12 million.
Concentrations. No single customer accounts for more than 10% of the Company's revenue. As of December 31, 2016, the Company is not aware of any significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on the Company’s operations. The Company's hardware components are assembled exclusively by Flextronics. In addition, the Company utilizes preferred supplier relationships to better ensure more consistent quality, cost and delivery. There can be no assurances that a disruption in production at Flextronics or at a supplier would not have a material adverse effect on the Company's operations.