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, who is our President and Chief Executive Officer, 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	2018		2017		2016
Segment revenue
Americas	$	1,126	$	1,195	$	1,334
International	1,038		961		919
Total Data and Analytics	2,164		2,156		2,253
Marketing Applications	—		—		69
Total revenue	2,164		2,156		2,322
Segment gross profit
Americas	621		675		797
International	474		437		445
Total Data and Analytics	1,095		1,112		1,242
Marketing Application	—		—		34
Total segment gross profit	1,095		1,112		1,276
Stock-based compensation expense	15		13		14
Amortization of acquisition-related intangible assets	—		—		2
Acquisition, integration and reorganization-related costs	5		4		9
Amortization of capitalized software costs	49		71		62
Selling, general and administrative expenses	666		651		662
Research and development expenses	317		305		212
Impairment of goodwill, acquired intangibles and other assets	—		—		80
Total income from operations	$	43	$	68	$	235

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 revenues by geographic area for the years ended December 31:



In millions	2018		2017		2016
United States	$	1,018	$	1,089	$	1,246
Americas (excluding United States)	108		107		123
International	1,038		960		953
Total revenue	$	2,164	$	2,156	$	2,322

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



In millions	2018		2017
United States	$	226	$	119
Americas (excluding United States)	18		11
International	51		32
Property and equipment, net	$	295	$	162

Concentrations. No single customer accounts for more than 10% of the Company's revenue. As of December 31, 2018, 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. In addition, a significant change in the forecasts to any of these preferred suppliers could result in purchase obligations or components that may be in excess of demand.

Changes in segment reporting. Subsequent to the year ended December 31, 2018 and effective January 1, 2019, the Company implemented an organizational change to its operating segments and will report future results under three separate segments: (1) the North America and Latin America ("Americas") region, (2) the Europe, Middle East and Africa ("EMEA") region, and (3) the Asia Pacific and Japan ("Asia Pacific") region, to align with the way the Company's management operates and reviews the results of these businesses.