Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TDC | |
Entity Registrant Name | TERADATA CORP /DE/ | |
Entity Central Index Key | 816,761 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 129.3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | ||
Product and cloud revenue | $ 166 | $ 208 |
Service revenue | 325 | 337 |
Total revenue | 491 | 545 |
Costs and operating expenses | ||
Cost of product and cloud | 76 | 89 |
Cost of services | 191 | 187 |
Selling, general and administrative expenses | 155 | 174 |
Research and development expenses | 70 | 57 |
Impairment of goodwill, acquired intangibles and other assets | 0 | 80 |
Total costs and operating expenses | 492 | 587 |
Loss from operations | (1) | (42) |
Interest expense | (3) | (3) |
Interest income | 2 | 1 |
Other expense | 0 | (1) |
Total other expense, net | (1) | (3) |
Loss before income taxes | (2) | (45) |
Income tax expense | 0 | 1 |
Net loss | $ (2) | $ (46) |
Net loss per weighted average common share | ||
Basic (in dollars per share) | $ (0.02) | $ (0.36) |
Diluted (in dollars per share) | $ (0.02) | $ (0.36) |
Weighted average common shares outstanding | ||
Basic (in shares) | 130.4 | 129.4 |
Diluted (in shares) | 130.4 | 129.4 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (2) | $ (46) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 5 | 8 |
Defined benefit plans: | ||
Defined benefit plan adjustment, before tax | 1 | 0 |
Defined benefit plan adjustment, tax portion | 0 | 0 |
Defined benefit plan adjustment, net of tax | 1 | 0 |
Other comprehensive income | 6 | 8 |
Comprehensive income (loss) | $ 4 | $ (38) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 1,164 | $ 974 |
Accounts receivable, net | 442 | 548 |
Inventories | 40 | 34 |
Other current assets | 58 | 65 |
Total current assets | 1,704 | 1,621 |
Property and equipment, net | 142 | 138 |
Capitalized software, net | 167 | 187 |
Goodwill | 392 | 390 |
Acquired intangible assets, net | 10 | 11 |
Deferred income taxes | 50 | 49 |
Other assets | 18 | 17 |
Total assets | 2,483 | 2,413 |
Current liabilities | ||
Current portion of long-term debt | 38 | 30 |
Accounts payable | 89 | 103 |
Payroll and benefits liabilities | 109 | 139 |
Deferred revenue | 514 | 369 |
Other current liabilities | 85 | 88 |
Total current liabilities | 835 | 729 |
Long-term debt | 523 | 538 |
Pension and other postemployment plan liabilities | 101 | 96 |
Long-term deferred revenue | 14 | 14 |
Deferred tax liabilities | 25 | 33 |
Other liabilities | 31 | 32 |
Total liabilities | 1,529 | 1,442 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 0 | 0 |
Common stock: par value $0.01 per share, 500.0 shares authorized, 129.6 and 130.6 shares issued at March 31, 2017 and December 31, 2016, respectively | 1 | 1 |
Paid-in capital | 1,243 | 1,220 |
Accumulated deficit | (207) | (161) |
Accumulated other comprehensive loss | (83) | (89) |
Total stockholders’ equity | 954 | 971 |
Total liabilities and stockholders’ equity | $ 2,483 | $ 2,413 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 129,600,000 | 130,600,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net loss | $ (2) | $ (46) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 36 | 34 |
Stock-based compensation expense | 16 | 21 |
Deferred income taxes | (8) | (10) |
Impairment of goodwill, acquired intangibles and other assets | 0 | 80 |
Changes in assets and liabilities: | ||
Receivables | 106 | 66 |
Inventories | (6) | (5) |
Current payables and accrued expenses | (44) | (16) |
Deferred revenue | 145 | 140 |
Other assets and liabilities | 5 | (14) |
Net cash provided by operating activities | 248 | 250 |
Investing activities | ||
Expenditures for property and equipment | (16) | (8) |
Additions to capitalized software | $ (2) | $ (18) |
Business acquisitions and other investing activities, net | 0 | (3) |
Net cash used in investing activities | $ (18) | $ (29) |
Financing activities | ||
Repurchases of common stock | (43) | (47) |
Repayments of long-term borrowings | (8) | (7) |
Repayments of credit facility borrowings | 0 | (100) |
Other financing activities, net | 7 | 9 |
Net cash used in financing activities | (44) | (145) |
Effect of exchange rate changes on cash and cash equivalents | 4 | 2 |
Increase in cash and cash equivalents | 190 | 78 |
Cash and cash equivalents at beginning of period | 974 | 839 |
Cash and cash equivalents at end of period | $ 1,164 | $ 917 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the results of operations, financial position and cash flows of Teradata Corporation (“Teradata” or the “Company”) for the interim periods presented herein. The year-end 2016 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Teradata’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “ 2016 Annual Report”). The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. Prior period amounts have been restated to conform to the current year presentation. As a result of the Company's early adoption of Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting , in the fourth quarter of 2016, retroactively to January 1, 2016, the restatement of prior year results resulted in a change in net cash provided by operating activities and net cash used by financing activities of $1 million for the three months ended March 31, 2016. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Revenue Recognition. In May 2014, the Financial Accounting Standards Board ("FASB") issued new guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The new guidance will supersede the revenue recognition requirements in the current revenue recognition guidance, and most industry-specific guidance. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in this update. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the FASB defines a five step process which includes the following: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB issued a one-year delay in the effective date of the new standard. Under this guidance, the new revenue standard will be effective for annual reporting periods beginning after December 15, 2017, with early application permitted. The standard allows entities to apply the standard retrospectively for all periods presented or alternatively an entity is permitted to recognize the cumulative effect of initially applying the guidance as an opening balance sheet adjustment to retained earnings in the period of initial application (modified retrospective method). I n March 2016, the FASB issued an update that amends and clarifies the implementation guidance on principal versus agent considerations for reporting revenue gross rather than net. In April 2016, the FASB issued an update that amends and clarifies the identification of performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued an update which addresses the narrow-scope improvements to the guidance on collectibility, non-cash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. All updates issued in 2016 have the same deferred effective date. The Company plans to adopt the new accounting guidance effective January 1, 2018 by utilizing the modified retrospective method. The Company is currently evaluating the impact on its consolidated financial position, results of operations and cash flows. Although the Company is still evaluating the impact on its consolidated financial statements, the Company believes the most significant impacts may include the following items: • As the Company transitions to the new go-to-market offerings, such as subscription-based licenses rather than perpetual licenses, the Company could potentially see a more significant impact in the amount of revenue recognized over time under the current rules but upfront under the new rules; • The Company currently expenses contract acquisition costs and believes that the requirement to defer incremental contract acquisition costs and recognize them over the term of the contract to which the costs relate could have an impact, especially as the Company transitions to longer-term, over-time revenue contracts; • The amount of revenue allocated to the delivered items and recognized upfront utilizing the relative selling price model is limited to the amount that is not contingent upon the delivery of additional items or meeting other specified performance conditions ( i.e ., the non-contingent amount) under current rules. Under the new rules, the amounts allocated to delivered items and recognized upfront could be higher if it is probable that a significant reversal in the amount of revenue recognized will not occur in future periods upon the delivery of additional items or meeting other specified performance conditions; and • The new standard will impact our internal control environment, including our financial statement disclosure controls, business process controls, new systems and processes, and enhancements to existing systems and processes. The Company does not expect that the new standard will result in substantive changes in our deliverables or the amounts of revenue allocated between multiple deliverables, with the exception of contingent revenue discussed above. The Company is still in the process of evaluating these impacts, and our initial assessment may change as the Company continues with implementing new systems, processes, accounting policies and internal controls. Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued accounting guidance for “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”. The amendment requires the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and other components of the net periodic benefit cost be presented separately from the line item that includes the service cost and outside of any subtotal of operating income. For public entities, the amendments are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. Recently Adopted Guidance Simplifying the measurement for goodwill . In January 2017, the FASB issued guidance to simplify the accounting for the impairment of goodwill. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance is required to be applied prospectively and is effective for periods beginning after December 15, 2019, with early adoption permitted. The Company elected to early adopt this accounting guidance effective January 1, 2017. The Company does not expect any impact from the adoption of the new accounting guidance on its consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information As of In millions March 31, December 31, Inventories Finished goods $ 26 $ 20 Service parts 14 14 Total inventories $ 40 $ 34 Deferred revenue Deferred revenue, current $ 514 $ 369 Long-term deferred revenue 14 14 Total deferred revenue $ 528 $ 383 |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets The following table identifies the activity relating to goodwill by operating segment: In millions Balance, Adjustments Currency Translation Adjustments Balance, Goodwill Americas Data and Analytics $ 251 $ — $ — $ 251 International Data and Analytics 139 — 2 141 Total goodwill $ 390 $ — $ 2 $ 392 The only changes in goodwill for the three months ended March 31, 2017 were due to changes in foreign currency exchange rates. Acquired intangible assets were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows: March 31, 2017 December 31, 2016 In millions Amortization Life (in Years) Gross Carrying Amount Accumulated Amortization and Currency Translation Adjustments Gross Carrying Amount Accumulated Amortization and Currency Translation Adjustments Acquired intangible assets Intellectual property/developed technology 2 to 5 $ 23 $ (14 ) $ 71 $ (61 ) Trademarks/trade names 5 — — 1 (1 ) In-process research and development 5 5 (4 ) 5 (4 ) Total acquired intangible assets $ 28 $ (18 ) $ 77 $ (66 ) The gross carrying amount of acquired intangibles was reduced by certain intangible assets previously acquired that became fully amortized and were removed from the balance sheet. The aggregate amortization expense (actual and estimated) for acquired intangible assets is as follows: Three Months Ended March 31, In millions 2017 2016 Amortization expense $ 2 $ 5 Actual For the years ended (estimated) In millions 2016 2017 2018 2019 Amortization expense $ 10 $ 7 $ 3 $ 1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items which are required to be discretely recognized within the current interim period. The Company’s intention is to permanently reinvest its foreign earnings outside of the United States ("U.S."). As a result, the effective tax rates in the periods presented are largely based upon the forecasted pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business that apply a broad range of statutory income tax rates, a large majority of which are less than the U.S. statutory rate. The effective tax rate is as follows: Three Months Ended March 31, In millions 2017 2016 Effective tax rate — % (2.2 )% For the three months ended March 31, 2017 , no discrete tax items were recorded. For the three months ended March 31, 2016, there were discrete tax items resulting from the $76 million impairment recorded in the first quarter of 2016, of which $57 million was related to non-deductible goodwill and $19 million was related to intangible assets for which $6 million of deferred tax benefit had been recorded. In addition, there was a $1 million favorable tax benefit recognized due to the release of a reserve taken for a previously uncertain tax position. These discrete items resulted in income tax expense in Q1 2016 of $1 million , on a pre-tax net loss of $45 million , causing a negative tax rate of (2.2)% . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As a portion of Teradata’s operations is conducted outside the U.S. and in currencies other than the U.S. dollar, the Company is exposed to potential gains and losses from changes in foreign currency exchange rates. In an attempt to mitigate the impact of currency fluctuations, the Company uses foreign exchange forward contracts to hedge transactional exposures resulting predominantly from foreign currency denominated inter-company receivables and payables. The forward contracts are designated as fair value hedges of specified foreign currency denominated inter-company receivables and payables and generally mature in three months or less. The Company does not hold or issue derivative financial instruments for trading purposes, nor does it hold or issue leveraged derivative instruments. By using derivative financial instruments to hedge exposures to changes in exchange rates, the Company exposes itself to credit risk. The Company manages exposure to counterparty credit risk by entering into derivative financial instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts. All derivatives are recognized in the consolidated balance sheets at their fair value. The fair values of foreign exchange contracts are based on market spot and forward exchange rates and represent estimates of possible value that may not be realized in the future. Changes in the fair value of derivative financial instruments, along with the loss or gain on the hedged asset or liability, are recorded in current period earnings. The notional amounts represent agreed-upon amounts on which calculations of dollars to be exchanged are based, and are an indication of the extent of Teradata’s involvement in such instruments. These notional amounts do not represent amounts exchanged by the parties and, therefore, are not a measure of the instruments. Across its portfolio of contracts, Teradata has both long and short positions relative to the U.S. dollar. As a result, Teradata’s net involvement is less than the total contract notional amount of the Company’s foreign exchange forward contracts. The following table identifies the contract notional amount of the Company’s foreign exchange forward contracts: As of In millions March 31, December 31, Contract notional amount of foreign exchange forward contracts $ 141 $ 156 Net contract notional amount of foreign exchange forward contracts $ 7 $ 16 The fair value of derivative assets and liabilities recorded in other current assets and accrued liabilities at March 31, 2017 and December 31, 2016 , were not material. Gains and losses from the Company’s fair value hedges (foreign currency forward contracts and related hedged items) were immaterial for the three months ended March 31, 2017 and March 31, 2016 . Gains and losses from foreign exchange forward contracts are fully recognized each period and reported along with the offsetting gain or loss of the related hedged item, either in cost of products or in other income (expense), depending on the nature of the related hedged item. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to proceedings, lawsuits, governmental investigations, claims and other matters, including those that relate to the environment, health and safety, employee benefits, export compliance, intellectual property, tax matters and other regulatory compliance and general matters. Guarantees and Product Warranties. Guarantees associated with the Company’s business activities are reviewed for appropriateness and impact to the Company’s financial statements. Periodically, the Company’s customers enter into various leasing arrangements coordinated with a leasing company. In some instances, the Company guarantees the leasing company a minimum value at the end of the lease term on the leased equipment. As of March 31, 2017 , the maximum future payment obligation of this guaranteed value and the associated liability balance was $4 million . The Company provides its customers a standard manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. Estimated future obligations due to warranty claims are based upon historical factors such as labor rates, average repair time, travel time, number of service calls and cost of replacement parts. For each consummated sale, the Company recognizes the total customer revenue and records the associated warranty liability under other current liabilities in the balance sheet using pre-established warranty percentages for that product class. The following table identifies the activity relating to the warranty reserve for the three months ended March 31 : In millions 2017 2016 Warranty reserve liability Beginning balance at January 1 $ 5 $ 6 Provisions for warranties issued 1 2 Settlements (in cash or in kind) (2 ) (2 ) Balance at March 31 $ 4 $ 6 The Company also offers extended and/or enhanced coverage to its customers in the form of maintenance contracts. The Company accounts for these contracts by deferring the related maintenance revenue over the extended and/or enhanced coverage period. Costs associated with maintenance support are expensed as incurred. Amounts associated with these maintenance contracts are not included in the table above. In addition, the Company provides its customers with certain indemnification rights. In general, the Company agrees to indemnify the customer if a third party asserts patent or other infringement on the part of the customer for its use of the Company’s products. The Company has entered into indemnification agreements with the officers and directors of its subsidiaries. From time to time, the Company also enters into agreements in connection with its acquisition and divesture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is not readily determinable due to the conditional nature of the Company’s potential obligations and the specific facts and circumstances involved with each particular agreement, and as such the Company has not recorded a liability in connection with these indemnification arrangements. Historically, payments made by the Company under these types of agreements have not had a material effect on the Company’s consolidated financial condition, results of operations or cash flows. Concentrations of Risk . The Company is potentially subject to concentrations of credit risk on accounts receivable and financial instruments such as hedging instruments, and cash and cash equivalents. Credit risk includes the risk of nonperformance by counterparties. The maximum potential loss may exceed the amount recognized on the balance sheet. Exposure to credit risk is managed through credit approvals, credit limits, selecting major international financial institutions (as counterparties to hedging transactions) and monitoring procedures. Teradata’s business often involves large transactions with customers, and if one or more of those customers were to default in its obligations under applicable contractual arrangements, the Company could be exposed to potentially significant losses. However, management believes that the reserves for potential losses were adequate at March 31, 2017 and December 31, 2016. The Company is also potentially subject to concentrations of supplier risk. Our hardware components are assembled exclusively by Flextronics International Ltd. (“Flextronics”). Flextronics procures a wide variety of components used in the manufacturing process on behalf of the Company. Although many of these components are available from multiple sources, Teradata utilizes preferred supplier relationships to provide more consistent and optimal quality, cost and delivery. Typically, these preferred suppliers maintain alternative processes and/or facilities to ensure continuity of supply. Given the Company’s strategy to outsource its manufacturing activities to Flextronics and to source certain components from single suppliers, a disruption in production at Flextronics or at a supplier could impact the timing of customer shipments and/or Teradata’s operating results. In addition, a significant change in the forecasts to any of these preferred suppliers could result in purchase obligations for components that may be in excess of demand. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as significant other observable inputs, such as quoted prices in active markets for similar assets or liabilities, or quoted prices in less-active markets for identical assets; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assets and liabilities measured at fair value on a recurring basis include money market funds and foreign currency exchange contracts. A portion of the Company’s excess cash reserves are held in money market funds which generate interest income based on the prevailing market rates. Money market funds are included in cash and cash equivalents in the Company’s balance sheet. Money market fund holdings are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. When deemed appropriate, the Company minimizes its exposure to changes in foreign currency exchange rates through the use of derivative financial instruments, specifically, foreign exchange forward contracts. The fair value of these contracts are measured at the end of each interim reporting period using observable inputs other than quoted prices, specifically market spot and forward exchange rates. As such, these derivative instruments are classified within Level 2 of the valuation hierarchy. Fair value gains for open contracts are recognized as assets and fair value losses are recognized as liabilities. The fair value derivative assets and liabilities recorded in other current assets and accrued liabilities at March 31, 2017 and December 31, 2016 , were not material. Any realized gains or losses would be mitigated by corresponding gains or losses on the underlying exposures. The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at March 31, 2017 and December 31, 2016 were as follows: Fair Value Measurements at Reporting Date Using In millions Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds, March 31, 2017 $ 617 $ 617 $ — $ — Money market funds, December 31, 2016 $ 473 $ 473 $ — $ — |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted average number of shares outstanding includes the dilution from potential shares resulting from stock options, restricted stock awards and other stock awards. The components of basic and diluted earnings per share are as follows: Three Months Ended In millions, except per share amounts 2017 2016 Net loss attributable to common stockholders $ (2 ) $ (46 ) Weighted average outstanding shares of common stock 130.4 129.4 Dilutive effect of employee stock options, restricted stock and other stock awards — — Common stock and common stock equivalents 130.4 129.4 Loss per share: Basic $ (0.02 ) $ (0.36 ) Diluted $ (0.02 ) $ (0.36 ) For the three months ended March 31, 2017 and March 31, 2016, due to the net loss attributable to Teradata common stockholders, potential common shares that would cause dilution, such as employee stock options, restricted stock and other stock awards, have been excluded from the diluted share count because their effect would have been anti-dilutive. The fully diluted shares would have been 131.9 million for the three months ended March 31, 2017 and 130.9 million for the three months ended March 31, 2016. Options to purchase 4.5 million shares of common stock for the three months ended March 31, 2017 and 5.7 million shares of common stock for the three months ended March 31, 2016 were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the period, and therefore would have been anti-dilutive. |
Segment and Other Supplemental
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 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. Three Months Ended 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 |
Reorganization and Business Tra
Reorganization and Business Transformation | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Business Transformation | Reorganization and Business Transformation In the fourth quarter of 2015, the Company announced a plan to realign Teradata’s business by reducing its cost structure and focusing on the Company’s core data and analytics business. This business transformation included exiting the marketing applications business, rationalizing costs, and modifying the Company’s go-to-market approach. The Company incurred the following costs for the three months ended March 31: Three Months Ended March 31, In millions 2017 2016 Employee severance and other employee related cost $ 2 $ 9 Asset write-downs 6 80 Professional services, legal and other transformation costs 10 8 Total reorganization and business transformation cost $ 18 $ 97 For the three months ended March 31, 2017, costs incurred above includes $8 million for an inventory charge and other associated transformation costs related to the discontinuation of Teradata's prior hardware platforms. In addition to the costs and charges incurred above, the Company made cash payments of $11 million for the three months ended March 31, 2016 for employee severance that did not have a material impact on its Statement of Operations due to Teradata's accounting for its postemployment benefits under Accounting Standards Codification 712, Compensation - Nonretirement Postemployment Benefits (“ASC 712”), which uses actuarial estimates and defers the immediate recognition of gains or losses. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Revenue Recognition | Revenue Recognition. In May 2014, the Financial Accounting Standards Board ("FASB") issued new guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The new guidance will supersede the revenue recognition requirements in the current revenue recognition guidance, and most industry-specific guidance. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in this update. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the FASB defines a five step process which includes the following: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB issued a one-year delay in the effective date of the new standard. Under this guidance, the new revenue standard will be effective for annual reporting periods beginning after December 15, 2017, with early application permitted. The standard allows entities to apply the standard retrospectively for all periods presented or alternatively an entity is permitted to recognize the cumulative effect of initially applying the guidance as an opening balance sheet adjustment to retained earnings in the period of initial application (modified retrospective method). I n March 2016, the FASB issued an update that amends and clarifies the implementation guidance on principal versus agent considerations for reporting revenue gross rather than net. In April 2016, the FASB issued an update that amends and clarifies the identification of performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued an update which addresses the narrow-scope improvements to the guidance on collectibility, non-cash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. All updates issued in 2016 have the same deferred effective date. The Company plans to adopt the new accounting guidance effective January 1, 2018 by utilizing the modified retrospective method. The Company is currently evaluating the impact on its consolidated financial position, results of operations and cash flows. Although the Company is still evaluating the impact on its consolidated financial statements, the Company believes the most significant impacts may include the following items: • As the Company transitions to the new go-to-market offerings, such as subscription-based licenses rather than perpetual licenses, the Company could potentially see a more significant impact in the amount of revenue recognized over time under the current rules but upfront under the new rules; • The Company currently expenses contract acquisition costs and believes that the requirement to defer incremental contract acquisition costs and recognize them over the term of the contract to which the costs relate could have an impact, especially as the Company transitions to longer-term, over-time revenue contracts; • The amount of revenue allocated to the delivered items and recognized upfront utilizing the relative selling price model is limited to the amount that is not contingent upon the delivery of additional items or meeting other specified performance conditions ( i.e ., the non-contingent amount) under current rules. Under the new rules, the amounts allocated to delivered items and recognized upfront could be higher if it is probable that a significant reversal in the amount of revenue recognized will not occur in future periods upon the delivery of additional items or meeting other specified performance conditions; and • The new standard will impact our internal control environment, including our financial statement disclosure controls, business process controls, new systems and processes, and enhancements to existing systems and processes. The Company does not expect that the new standard will result in substantive changes in our deliverables or the amounts of revenue allocated between multiple deliverables, with the exception of contingent revenue discussed above. The Company is still in the process of evaluating these impacts, and our initial assessment may change as the Company continues with implementing new systems, processes, accounting policies and internal controls. |
New Accounting Pronouncements | Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued accounting guidance for “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”. The amendment requires the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and other components of the net periodic benefit cost be presented separately from the line item that includes the service cost and outside of any subtotal of operating income. For public entities, the amendments are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. Recently Adopted Guidance Simplifying the measurement for goodwill . In January 2017, the FASB issued guidance to simplify the accounting for the impairment of goodwill. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance is required to be applied prospectively and is effective for periods beginning after December 15, 2019, with early adoption permitted. The Company elected to early adopt this accounting guidance effective January 1, 2017. The Company does not expect any impact from the adoption of the new accounting guidance on its consolidated financial statements. |
Supplemental Financial Inform19
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | As of In millions March 31, December 31, Inventories Finished goods $ 26 $ 20 Service parts 14 14 Total inventories $ 40 $ 34 Deferred revenue Deferred revenue, current $ 514 $ 369 Long-term deferred revenue 14 14 Total deferred revenue $ 528 $ 383 |
Goodwill and Acquired Intangi20
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Operating Segment | The following table identifies the activity relating to goodwill by operating segment: In millions Balance, Adjustments Currency Translation Adjustments Balance, Goodwill Americas Data and Analytics $ 251 $ — $ — $ 251 International Data and Analytics 139 — 2 141 Total goodwill $ 390 $ — $ 2 $ 392 |
Gross Carrying Amount and Accumulated Amortization for Teradata's Acquired Intangible Assets | The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows: March 31, 2017 December 31, 2016 In millions Amortization Life (in Years) Gross Carrying Amount Accumulated Amortization and Currency Translation Adjustments Gross Carrying Amount Accumulated Amortization and Currency Translation Adjustments Acquired intangible assets Intellectual property/developed technology 2 to 5 $ 23 $ (14 ) $ 71 $ (61 ) Trademarks/trade names 5 — — 1 (1 ) In-process research and development 5 5 (4 ) 5 (4 ) Total acquired intangible assets $ 28 $ (18 ) $ 77 $ (66 ) |
Aggregate Amortization Expense for Acquired Intangible Assets | The aggregate amortization expense (actual and estimated) for acquired intangible assets is as follows: Three Months Ended March 31, In millions 2017 2016 Amortization expense $ 2 $ 5 Actual For the years ended (estimated) In millions 2016 2017 2018 2019 Amortization expense $ 10 $ 7 $ 3 $ 1 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rate | The effective tax rate is as follows: Three Months Ended March 31, In millions 2017 2016 Effective tax rate — % (2.2 )% |
Derivative Instruments and He22
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Exchange Contracts | The following table identifies the contract notional amount of the Company’s foreign exchange forward contracts: As of In millions March 31, December 31, Contract notional amount of foreign exchange forward contracts $ 141 $ 156 Net contract notional amount of foreign exchange forward contracts $ 7 $ 16 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty Reserve Activity | The following table identifies the activity relating to the warranty reserve for the three months ended March 31 : In millions 2017 2016 Warranty reserve liability Beginning balance at January 1 $ 5 $ 6 Provisions for warranties issued 1 2 Settlements (in cash or in kind) (2 ) (2 ) Balance at March 31 $ 4 $ 6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements | The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at March 31, 2017 and December 31, 2016 were as follows: Fair Value Measurements at Reporting Date Using In millions Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds, March 31, 2017 $ 617 $ 617 $ — $ — Money market funds, December 31, 2016 $ 473 $ 473 $ — $ — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share are as follows: Three Months Ended In millions, except per share amounts 2017 2016 Net loss attributable to common stockholders $ (2 ) $ (46 ) Weighted average outstanding shares of common stock 130.4 129.4 Dilutive effect of employee stock options, restricted stock and other stock awards — — Common stock and common stock equivalents 130.4 129.4 Loss per share: Basic $ (0.02 ) $ (0.36 ) Diluted $ (0.02 ) $ (0.36 ) |
Segment and Other Supplementa26
Segment and Other Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Regional Segment Revenue and Gross Margin | The following table presents segment revenue and segment gross margin for the Company: Three Months Ended 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 ) |
Revenue by Product and Services | The following table presents a further disaggregation of revenue for the Company: Three Months Ended 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 |
Reorganization and Business T27
Reorganization and Business Transformation - (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The Company incurred the following costs for the three months ended March 31: Three Months Ended March 31, In millions 2017 2016 Employee severance and other employee related cost $ 2 $ 9 Asset write-downs 6 80 Professional services, legal and other transformation costs 10 8 Total reorganization and business transformation cost $ 18 $ 97 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Change in Accounting Estimate [Line Items] | ||
Net cash used in financing activities | $ 44 | $ 145 |
Net cash provided by operating activities | $ 248 | 250 |
Accounting Standards Update, 2016-09 [Member] | ||
Change in Accounting Estimate [Line Items] | ||
Net cash used in financing activities | 1 | |
Net cash provided by operating activities | $ 1 |
Supplemental Financial Inform29
Supplemental Financial Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventories | ||
Finished goods | $ 26 | $ 20 |
Service parts | 14 | 14 |
Total inventories | 40 | 34 |
Deferred revenue | ||
Deferred revenue, current | 514 | 369 |
Long-term deferred revenue | 14 | 14 |
Total deferred revenue | $ 528 | $ 383 |
Goodwill and Acquired Intangi30
Goodwill and Acquired Intangible Assets - Goodwill by Operating Segment (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2016 | $ 390 |
Adjustments | 0 |
Currency Translation Adjustments | 2 |
March 31, 2017 | 392 |
Americas Data and Analytics | |
Goodwill [Roll Forward] | |
December 31, 2016 | 251 |
Adjustments | 0 |
Currency Translation Adjustments | 0 |
March 31, 2017 | 251 |
International Data and Analytics | |
Goodwill [Roll Forward] | |
December 31, 2016 | 139 |
Adjustments | 0 |
Currency Translation Adjustments | 2 |
March 31, 2017 | $ 141 |
Goodwill and Acquired Intangi31
Goodwill and Acquired Intangible Assets - Gross Carrying Amount and Accumulated Amortization for Teradata Acquired Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 28 | $ 77 |
Accumulated Amortization and Currency Translation Adjustments | (18) | (66) |
Intellectual property/developed technology | ||
Acquired Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 23 | 71 |
Accumulated Amortization and Currency Translation Adjustments | $ (14) | $ (61) |
Trademarks/trade names | ||
Acquired Finite-Lived Intangible Assets | ||
Amortization Life (in Years) | 5 years | 5 years |
Gross Carrying Amount | $ 0 | $ 1 |
Accumulated Amortization and Currency Translation Adjustments | $ 0 | $ (1) |
In-process research and development | ||
Acquired Finite-Lived Intangible Assets | ||
Amortization Life (in Years) | 5 years | 5 years |
Gross Carrying Amount | $ 5 | $ 5 |
Accumulated Amortization and Currency Translation Adjustments | $ (4) | $ (4) |
Minimum | Intellectual property/developed technology | ||
Acquired Finite-Lived Intangible Assets | ||
Amortization Life (in Years) | 2 years | 2 years |
Maximum | Intellectual property/developed technology | ||
Acquired Finite-Lived Intangible Assets | ||
Amortization Life (in Years) | 5 years | 5 years |
Goodwill and Acquired Intangi32
Goodwill and Acquired Intangible Assets - Aggregate Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 2 | $ 5 | $ 10 |
Amortization expense - Remainder of 2017 | 7 | ||
Amortization expense - 2018 | 3 | ||
Amortization expense - 2019 | $ 1 |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 0.00% | (2.20%) |
Impairment of goodwill, acquired intangibles and other assets | $ 76 | |
Non-deductible goodwill | 57 | |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 19 | |
Deferred income taxes benefit | 6 | |
Income tax expense | $ 0 | 1 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 2 | $ 45 |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative | ||
Net contract notional amount of foreign exchange forward contracts | $ 7 | $ 16 |
Foreign Exchange Contract | ||
Derivative | ||
Contract notional amount of foreign exchange forward contracts | $ 141 | $ 156 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Mar. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum future payment obligation of the guaranteed value and associated liabilities | $ 4,000,000 |
Commitments and Contingencies36
Commitments and Contingencies - Warranty Reserve Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance at January 1 | $ 5 | $ 6 |
Provisions for warranties issued | 1 | 2 |
Settlements (in cash or in kind) | (2) | (2) |
Balance at March 31 | $ 4 | $ 6 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 617 | $ 473 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 617 | 473 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Earnings per Share - Components
Earnings per Share - Components of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders | $ (2) | $ (46) |
Weighted average outstanding shares of common stock (in shares) | 130.4 | 129.4 |
Dilutive effect of employee stock options, restricted stock and other stock awards (in shares) | 0 | 0 |
Common stock and common stock equivalents (in shares) | 130.4 | 129.4 |
Loss per share: | ||
Basic (in dollars per share) | $ (0.02) | $ (0.36) |
Diluted (in dollars per share) | $ (0.02) | $ (0.36) |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Fully diluted shares (in shares) | 131.9 | 130.9 |
Antidilutive options to purchase were excluded from computation of diluted earnings per share (in shares) | 4.5 | 5.7 |
Segment and Other Supplementa40
Segment and Other Supplemental Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment and Other Supplementa41
Segment and Other Supplemental Information - Regional Segment Revenue and Gross Margin for Company (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information | ||
Revenue | $ 491 | $ 545 |
Gross profit | 251 | 294 |
Stock-based compensation costs | (4) | (4) |
Amortization of acquisition-related intangible assets costs | 0 | (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 | 0 | 80 |
Loss from operations | (1) | (42) |
Americas Data and Analytics | ||
Segment Reporting Information | ||
Revenue | 267 | 295 |
Gross profit | 151 | 175 |
International Data and Analytics | ||
Segment Reporting Information | ||
Revenue | 224 | 216 |
Gross profit | 100 | 102 |
Data and Analytics | ||
Segment Reporting Information | ||
Revenue | 491 | 511 |
Gross profit | 251 | 277 |
Marketing Applications | ||
Segment Reporting Information | ||
Revenue | 0 | 34 |
Gross profit | 0 | 17 |
Impairment of goodwill, acquired intangibles and other assets | $ 6 | $ 80 |
Segment and Other Supplementa42
Segment and Other Supplemental Information - Revenue by Product and Services (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting [Abstract] | ||
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 | 0 | 34 |
Total revenue | $ 491 | $ 545 |
Reorganization and Business T43
Reorganization and Business Transformation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Asset write-downs | $ 0 | $ 80 |
Marketing Applications | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and other employee related cost | 2 | 9 |
Asset write-downs | 6 | 80 |
Professional services, legal and other transformation costs | 10 | 8 |
Total reorganization and business transformation cost | $ 18 | 97 |
Other Restructuring | Marketing Applications | ||
Restructuring Cost and Reserve [Line Items] | ||
Total reorganization and business transformation cost | 8 | |
Employee Severance | Marketing Applications | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments for restructuring | $ 11 |