Segment, Other Supplemental Information and Concentrations

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 how 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 profit for the Company for the years ended December 31:



In millions	2017		2016		2015
Segment revenue
Americas Data and Analytics	$	1,195	$	1,334	$	1,470
International Data and Analytics	961		919		907
Total Data and Analytics	2,156		2,253		2,377
Marketing Applications	—		69		153
Total revenue	2,156		2,322		2,530
Segment gross profit
Americas Data and Analytics	676		796		871
International Data and Analytics	434		445		452
Total Data and Analytics	1,110		1,241		1,323
Marketing Application	—		34		63
Total segment gross profit	1,110		1,275		1,386
Stock-based compensation expense	13		14		13
Amortization of acquisition-related intangible assets	1		2		16
Acquisition, integration and reorganization-related costs	6		9		11
Amortization of capitalized software costs	68		62		70
Selling, general and administrative expenses	652		664		765
Research and development expenses	306		212		228
Impairment of goodwill, acquired intangibles and other assets	—		80		478
Total income (loss) from operations	$	64	$	232	$	(195	)

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 for the years ended December 31:



In millions	2017		2016		2015
Recurring revenue	$	1,047	$	978	$	956
Product - perpetual licenses and hardware	429		600		752
Consulting services	680		675		669
Marketing applications	—		69		153
Total revenue	$	2,156	$	2,322	$	2,530

Recurring revenue is intended to depict the over-time revenue recognition model for these revenue streams. The recurrence of these revenue streams in future periods depends on a number of factors including contractual term periods and customers’ renewal decisions.

The following table presents revenues by geographic area for the years ended December 31:



In millions	2017		2016		2015
United States	$	1,089	$	1,246	$	1,428
Americas (excluding United States)	107		123		125
International	960		953		977
Total revenue	$	2,156	$	2,322	$	2,530

The following table presents property and equipment by geographic area at December 31:



In millions	2017		2016
United States	$	119	$	113
Americas (excluding United States)	11		4
International	32		21
Property and equipment, net	$	162	$	138

Concentrations. No single customer accounts for more than 10% of the Company's revenue. As of December 31, 2017, 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 Flex. 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 Flex or at a supplier would not have a material adverse effect on the Company's operations.