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Segment and Other Supplemental Information
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment and Other Supplemental Information
Segment and Other Supplemental Information
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 profit. For management reporting purposes assets are not allocated to the segments.
The following table presents segment revenue and segment gross margin for the Company:
 
Three Months Ended
March 31,
In millions
2017
 
2016
Segment revenue
 
 
 
 Americas Data and Analytics
$
267

 
$
295

 International Data and Analytics
224

 
216

Total Data and Analytics
491

 
511

Marketing Applications
—

 
34

Total revenue
491

 
545

Segment gross profit
 
 
 
 Americas Data and Analytics
151

 
175

 International Data and Analytics
100

 
102

Total Data and Analytics
251

 
277

Marketing Applications
—

 
17

Total segment gross profit
251

 
294

Stock-based compensation costs
(4
)
 
(4
)
Amortization of acquisition-related intangible assets costs
—

 
(2
)
Acquisition, integration, reorganization and transformation-related costs
(2
)
 
(3
)
Amortization of capitalized software costs
(21
)
 
(16
)
Selling, general and administrative expenses
155

 
174

Research and development expenses
70

 
57

Impairment of goodwill, acquired intangibles and other assets
—

 
80

Loss from operations
$
(1
)
 
$
(42
)


Prior period segment information has been reclassified to conform to the current period presentation. Certain items, including amortization of certain capitalized software costs, were excluded from segment gross profit to conform to the way the Company manages and reviews the results by segment.


The following table presents a further disaggregation of revenue for the Company:
 
Three Months Ended
March 31,
In millions
2017
 
2016
Maintenance
$
176

 
$
168

Subscription, licenses, cloud and upgrades
76

 
70

Total recurring revenue
252

 
238

Licenses and products
90

 
120

Consulting services
149

 
153

Marketing applications
—

 
34

Total revenue
$
491

 
$
545