Teradata (TDC) 10-Q 6 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2017	Oct. 27, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		121

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Product and cloud revenue	$ 172	$ 210	$ 504	$ 661
Service revenue	354	342	1,026	1,035
Total revenue	526	552	1,530	1,696
Costs and operating expenses
Cost of product and cloud	68	75	216	265
Cost of services	208	183	598	558
Selling, general and administrative expenses	161	159	481	505
Research and development expenses	82	46	230	154
Impairment of goodwill, acquired intangibles and other assets	0	0	0	80
Total costs and operating expenses	519	463	1,525	1,562
Income from operations	7	89	5	134
Interest expense	(4)	(3)	(11)	(9)
Interest income	3	2	8	4
Other income (expense)	0	2	(1)	1
Total other (expense) income, net	(1)	1	(4)	(4)
Income before income taxes	6	90	1	130
Income tax (benefit) expense	(7)	41	(6)	63
Net income	$ 13	$ 49	$ 7	$ 67
Net income per weighted average common share
Basic (in dollars per share)	$ 0.11	$ 0.38	$ 0.05	$ 0.52
Diluted (in dollars per share)	$ 0.10	$ 0.37	$ 0.05	$ 0.51
Weighted average common shares outstanding
Basic (in shares)	123.7	129.7	127.3	129.6
Diluted (in shares)	125.8	131.6	129.1	131.3

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 13	$ 49	$ 7	$ 67
Other comprehensive income:
Foreign currency translation adjustments	7	1	17	7
Defined benefit plans:
Defined benefit plan adjustment, before tax	1	2	3	4
Defined benefit plan adjustment, tax portion	0	0	0	(1)
Defined benefit plan adjustment, net of tax	1	2	3	3
Other comprehensive income	8	3	20	10
Comprehensive income	$ 21	$ 52	$ 27	$ 77

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 1,025	$ 974
Accounts receivable, net	366	548
Inventories	45	34
Other current assets	72	65
Total current assets	1,508	1,621
Property and equipment, net	159	138
Capitalized software, net	136	187
Goodwill	398	390
Acquired intangible assets, net	23	11
Deferred income taxes	53	49
Other assets	30	17
Total assets	2,307	2,413
Current liabilities
Current portion of long-term debt	53	30
Short-term borrowings	180	0
Accounts payable	106	103
Payroll and benefits liabilities	139	139
Deferred revenue	364	369
Other current liabilities	94	88
Total current liabilities	936	729
Long-term debt	493	538
Pension and other postemployment plan liabilities	107	96
Long-term deferred revenue	17	14
Deferred tax liabilities	12	33
Other liabilities	23	32
Total liabilities	1,588	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 September 30, 2017 and December 31, 2016, respectively	0	0
Common stock: par value $0.01 per share, 500.0 shares authorized, 120.6 and 130.6 shares issued at September 30, 2017 and December 31, 2016, respectively	1	1
Paid-in capital	1,292	1,220
Accumulated deficit	(505)	(161)
Accumulated other comprehensive loss	(69)	(89)
Total stockholders’ equity	719	971
Total liabilities and stockholders’ equity	$ 2,307	$ 2,413

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 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)	120,600,000	130,600,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net income	$ 7	$ 67
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	103	97
Stock-based compensation expense	51	49
Deferred income taxes	(22)	(9)
Impairment of goodwill, acquired intangibles and other assets	0	80
Changes in assets and liabilities:
Receivables	182	162
Inventories	(11)	4
Current payables and accrued expenses	0	(14)
Deferred revenue	(2)	(7)
Other assets and liabilities	(7)	(35)
Net cash provided by operating activities	301	394
Investing activities
Expenditures for property and equipment	(59)	(32)
Proceeds from sale of property and equipment	0	5
Additions to capitalized software	(7)	(54)
Proceeds from sale of business	$ 0	$ 92
Business acquisitions and other investing activities, net	(18)	(16)
Net cash used in investing activities	$ (84)	$ (5)
Financing activities
Repurchases of common stock	(351)	(69)
Repayments of long-term borrowings	(23)	(22)
Proceeds from credit facility borrowings	180	0
Repayments of credit facility borrowings	0	(180)
Other financing activities, net	20	28
Net cash used in financing activities	(174)	(243)
Effect of exchange rate changes on cash and cash equivalents	8	3
Increase in cash and cash equivalents	51	149
Cash and cash equivalents at beginning of period	974	839
Cash and cash equivalents at end of period	$ 1,025	$ 988

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 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 $3 million for the nine months ended September 30, 2016.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 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. 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). 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. This impact could result in revenue that is adjusted to retained earnings in the period of adoption and therefore not recognized in future periods or restated to prior periods due to the Company applying the modified retrospective method of adoption. This potential impact may affect how transactions are structured in the fourth quarter to minimize the revenue that is adjusted to retained earnings; • 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 performance obligations or the amounts of revenue allocated between multiple performance obligations, with the exception of contingent revenue discussed above. The Company is still in the process of evaluating and quantifying 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. Stock Compensation. In May 2017, the FASB issued accounting guidance for "Compensation—Stock Compensation (Topic 718) - Scope of Modification Accounting". The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this update. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. Derivatives and Hedging. In August 2017, the FASB issued amendments to hedge accounting guidance. These amendments are intended to better align a company’s risk management strategies and financial reporting for hedging relationships. Under the new guidance, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. In addition, the new guidance amends presentation and disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including the interim periods within those years. The guidance requires the use of a modified retrospective approach. The Company is currently evaluating the impact of the guidance on our 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	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Financial Information	Supplemental Financial Information As of In millions September 30, December 31, Inventories Finished goods $ 33 $ 20 Service parts 12 14 Total inventories $ 45 $ 34 Deferred revenue Deferred revenue, current $ 364 $ 369 Long-term deferred revenue 17 14 Total deferred revenue $ 381 $ 383

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangible Assets	9 Months Ended
	Sep. 30, 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 $ 2 $ — $ 253 International Data and Analytics 139 — 6 145 Total goodwill $ 390 $ 2 $ 6 $ 398 During the first nine months of 2017, the Company recorded additional goodwill of $2 million , for an immaterial acquisition that occurred during the period. Acquired intangible assets were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for the Company's acquired intangible assets were as follows: September 30, 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 3 to 5 $ 41 $ (18 ) $ 71 $ (61 ) Trademarks/trade names 5 — — 1 (1 ) In-process research and development 5 5 (5 ) 5 (4 ) Total acquired intangible assets $ 46 $ (23 ) $ 77 $ (66 ) During the first nine months of 2017 2017, the Company recorded additional intangibles of $18 million , for intellectual property related to an immaterial acquisition that occurred during the period. 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 September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Amortization expense $ 3 $ 2 $ 6 $ 9 Actual For the years ended (estimated) In millions 2016 2017 2018 2019 2020 2021 2022 Amortization expense $ 10 $ 8 $ 7 $ 5 $ 4 $ 4 $ 1

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Effective tax rate (116.7 )% 45.6 % (600.0 )% 48.5 % For the three and nine months ended September 30, 2017 , a net $6 million discrete tax benefit was recognized from the reversal of uncertain tax positions on acquired tax attributes from previous acquisitions. This resulted in income tax benefit for the respective periods. For the three months ended September 30, 2016, there was a $22 million discrete tax expense related to the sale of the marketing applications business that occurred on July 1, 2016. For the nine months ended September 30, 2016, there were discrete tax items resulting from the $76 million intangible asset 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, as well as the $22 million discrete tax impact from the sale of the marketing applications business recognized in the third quarter. In addition, there was a $2 million favorable tax benefit recognized due to the release of a reserve taken for a previously uncertain tax position.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 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 September 30, December 31, Contract notional amount of foreign exchange forward contracts $ 110 $ 156 Net contract notional amount of foreign exchange forward contracts $ 16 $ 16 The fair value of derivative assets and liabilities recorded in other current assets and accrued liabilities at September 30, 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 and nine months ended September 30, 2017 and September 30, 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	9 Months Ended
	Sep. 30, 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. As disclosed last quarter, through internal processes, the Company discovered certain questionable expenditures for travel, gifts and other expenses at one of its international subsidiaries doing business in a single foreign country, Turkey. Teradata promptly initiated an internal investigation into the matter, with the assistance of outside counsel and forensic accountants, to determine whether the expenditures may have violated the U.S. Foreign Corrupt Practices Act (“FCPA”) or other potentially applicable anti-corruption laws. In late February 2017, the Company voluntarily contacted the SEC and the U.S. Department of Justice (“DOJ”) to alert them to the relevant events and the Company's internal investigation. Teradata has been updating the government on a regular basis regarding the status of the Company's internal investigation and findings, including remedial actions and terminations, and plans to continue to cooperate fully. The Company continues to believe that the questionable expenditures were limited to a single subsidiary’s business operations in Turkey and involved specific individuals who are no longer with the Company. Teradata’s operations in Turkey have constituted less than one half of one percent of consolidated revenues each year as reported by the Company since 2012. Under the circumstances, Teradata currently does not anticipate a material adverse effect on its business or financial condition as a result of this matter; however, the ultimate resolution of this matter with the DOJ and SEC cannot be predicted. Any determination that the Company’s operations or activities are not in compliance with existing laws or regulations could result in the imposition of fines, civil and criminal penalties, and equitable remedies, including disgorgement or injunctive relief. 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 September 30, 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 nine months ended September 30 : In millions 2017 2016 Warranty reserve liability Beginning balance at January 1 $ 5 $ 6 Provisions for warranties issued 4 6 Settlements (in cash or in kind) (6 ) (7 ) Balance at September 30 $ 3 $ 5 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 September 30, 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	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 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, September 30, 2017 $ 483 $ 483 $ — $ — Money market funds, December 31, 2016 $ 473 $ 473 $ — $ —

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 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 Nine Months Ended In millions, except per share amounts 2017 2016 2017 2016 Net income attributable to common stockholders $ 13 $ 49 $ 7 $ 67 Weighted average outstanding shares of common stock 123.7 129.7 127.3 129.6 Dilutive effect of employee stock options, restricted stock and other stock awards 2.1 1.9 1.8 1.7 Common stock and common stock equivalents 125.8 131.6 129.1 131.3 Net income per share: Basic $ 0.11 $ 0.38 $ 0.05 $ 0.52 Diluted $ 0.10 $ 0.37 $ 0.05 $ 0.51 Options to purchase 2.7 million and 3.6 million shares of common stock for the three and nine months ended September 30, 2017 and 4.7 million and 4.9 million shares of common stock for the three and nine months ended September 30, 2016 were not included in the computation of diluted earnings per share. The exercise prices of these options 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	9 Months Ended
	Sep. 30, 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 Nine Months Ended In millions 2017 2016 2017 2016 Segment revenue Americas Data and Analytics $ 292 $ 317 $ 830 $ 937 International Data and Analytics 234 235 700 690 Total Data and Analytics 526 552 1,530 1,627 Marketing Applications — — — 69 Total revenue 526 552 1,530 1,696 Segment gross profit Americas Data and Analytics 173 195 482 564 International Data and Analytics 97 118 304 341 Total Data and Analytics 270 313 786 905 Marketing Applications — — — 34 Total segment gross profit 270 313 786 939 Stock-based compensation costs 3 3 10 11 Amortization of acquisition-related intangible asset costs — — — 2 Acquisition, integration, reorganization and transformation-related costs 2 1 6 6 Amortization of capitalized software costs 15 15 54 47 Selling, general and administrative expenses 161 159 481 505 Research and development expenses 82 46 230 154 Impairment of goodwill, acquired intangibles and other assets — — — 80 Income from operations $ 7 $ 89 $ 5 $ 134 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 Nine Months Ended In millions 2017 2016 2017 2016 Product - rights to upgrades, subscription and cloud $ 82 $ 72 $ 233 $ 211 Maintenance - software and hardware 185 175 543 517 Total recurring revenue 267 247 776 728 Product - perpetual licenses and hardware 90 137 271 411 Consulting services 169 168 483 488 Marketing applications — — — 69 Total revenue $ 526 $ 552 $ 1,530 $ 1,696

Reorganization and Business Tra

Reorganization and Business Transformation	9 Months Ended
	Sep. 30, 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 nine months ended September 30: Nine Months Ended September 30, In millions 2017 2016 Employee severance and other employee related cost $ 2 $ 12 Asset write-downs 1 80 Professional services, legal and other transformation costs 24 27 Total reorganization and business transformation cost $ 27 $ 119 For the nine months ended September 30, 2017, costs incurred above includes $3 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 less than $1 million for the nine months ended September 30, 2017 and $18 million for the nine months ended September 30, 2016 for employee severance related to this business transformation 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)	9 Months Ended
	Sep. 30, 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. 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). 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. This impact could result in revenue that is adjusted to retained earnings in the period of adoption and therefore not recognized in future periods or restated to prior periods due to the Company applying the modified retrospective method of adoption. This potential impact may affect how transactions are structured in the fourth quarter to minimize the revenue that is adjusted to retained earnings; • 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 performance obligations or the amounts of revenue allocated between multiple performance obligations, with the exception of contingent revenue discussed above. The Company is still in the process of evaluating and quantifying 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. Stock Compensation. In May 2017, the FASB issued accounting guidance for "Compensation—Stock Compensation (Topic 718) - Scope of Modification Accounting". The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this update. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. Derivatives and Hedging. In August 2017, the FASB issued amendments to hedge accounting guidance. These amendments are intended to better align a company’s risk management strategies and financial reporting for hedging relationships. Under the new guidance, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. In addition, the new guidance amends presentation and disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including the interim periods within those years. The guidance requires the use of a modified retrospective approach. The Company is currently evaluating the impact of the guidance on our 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)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Financial Information	As of In millions September 30, December 31, Inventories Finished goods $ 33 $ 20 Service parts 12 14 Total inventories $ 45 $ 34 Deferred revenue Deferred revenue, current $ 364 $ 369 Long-term deferred revenue 17 14 Total deferred revenue $ 381 $ 383

Goodwill and Acquired Intangi20

Goodwill and Acquired Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 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 $ 2 $ — $ 253 International Data and Analytics 139 — 6 145 Total goodwill $ 390 $ 2 $ 6 $ 398
Gross Carrying Amount and Accumulated Amortization for Teradata's Acquired Intangible Assets	The gross carrying amount and accumulated amortization for the Company's acquired intangible assets were as follows: September 30, 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 3 to 5 $ 41 $ (18 ) $ 71 $ (61 ) Trademarks/trade names 5 — — 1 (1 ) In-process research and development 5 5 (5 ) 5 (4 ) Total acquired intangible assets $ 46 $ (23 ) $ 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 September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Amortization expense $ 3 $ 2 $ 6 $ 9 Actual For the years ended (estimated) In millions 2016 2017 2018 2019 2020 2021 2022 Amortization expense $ 10 $ 8 $ 7 $ 5 $ 4 $ 4 $ 1

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Effective Tax Rate	The effective tax rate is as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2017 2016 2017 2016 Effective tax rate (116.7 )% 45.6 % (600.0 )% 48.5 %

Derivative Instruments and He22

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 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 September 30, December 31, Contract notional amount of foreign exchange forward contracts $ 110 $ 156 Net contract notional amount of foreign exchange forward contracts $ 16 $ 16

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Warranty Reserve Activity	The following table identifies the activity relating to the warranty reserve for the nine months ended September 30 : In millions 2017 2016 Warranty reserve liability Beginning balance at January 1 $ 5 $ 6 Provisions for warranties issued 4 6 Settlements (in cash or in kind) (6 ) (7 ) Balance at September 30 $ 3 $ 5

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 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, September 30, 2017 $ 483 $ 483 $ — $ — Money market funds, December 31, 2016 $ 473 $ 473 $ — $ —

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended In millions, except per share amounts 2017 2016 2017 2016 Net income attributable to common stockholders $ 13 $ 49 $ 7 $ 67 Weighted average outstanding shares of common stock 123.7 129.7 127.3 129.6 Dilutive effect of employee stock options, restricted stock and other stock awards 2.1 1.9 1.8 1.7 Common stock and common stock equivalents 125.8 131.6 129.1 131.3 Net income per share: Basic $ 0.11 $ 0.38 $ 0.05 $ 0.52 Diluted $ 0.10 $ 0.37 $ 0.05 $ 0.51

Segment and Other Supplementa26

Segment and Other Supplemental Information (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended In millions 2017 2016 2017 2016 Segment revenue Americas Data and Analytics $ 292 $ 317 $ 830 $ 937 International Data and Analytics 234 235 700 690 Total Data and Analytics 526 552 1,530 1,627 Marketing Applications — — — 69 Total revenue 526 552 1,530 1,696 Segment gross profit Americas Data and Analytics 173 195 482 564 International Data and Analytics 97 118 304 341 Total Data and Analytics 270 313 786 905 Marketing Applications — — — 34 Total segment gross profit 270 313 786 939 Stock-based compensation costs 3 3 10 11 Amortization of acquisition-related intangible asset costs — — — 2 Acquisition, integration, reorganization and transformation-related costs 2 1 6 6 Amortization of capitalized software costs 15 15 54 47 Selling, general and administrative expenses 161 159 481 505 Research and development expenses 82 46 230 154 Impairment of goodwill, acquired intangibles and other assets — — — 80 Income from operations $ 7 $ 89 $ 5 $ 134
Revenue by Product and Services	The following table presents a further disaggregation of revenue for the Company: Three Months Ended Nine Months Ended In millions 2017 2016 2017 2016 Product - rights to upgrades, subscription and cloud $ 82 $ 72 $ 233 $ 211 Maintenance - software and hardware 185 175 543 517 Total recurring revenue 267 247 776 728 Product - perpetual licenses and hardware 90 137 271 411 Consulting services 169 168 483 488 Marketing applications — — — 69 Total revenue $ 526 $ 552 $ 1,530 $ 1,696

Reorganization and Business T27

Reorganization and Business Transformation - (Tables)	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The Company incurred the following costs for the nine months ended September 30: Nine Months Ended September 30, In millions 2017 2016 Employee severance and other employee related cost $ 2 $ 12 Asset write-downs 1 80 Professional services, legal and other transformation costs 24 27 Total reorganization and business transformation cost $ 27 $ 119

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Change in Accounting Estimate [Line Items]
Net cash used in financing activities	$ 174	$ 243
Net cash provided by operating activities	$ 301	394
Accounting Standards Update 2016-09 [Member]
Change in Accounting Estimate [Line Items]
Net cash used in financing activities		3
Net cash provided by operating activities		$ 3

Supplemental Financial Inform29

Supplemental Financial Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Inventories
Finished goods	$ 33	$ 20
Service parts	12	14
Total inventories	45	34
Deferred revenue
Deferred revenue, current	364	369
Long-term deferred revenue	17	14
Total deferred revenue	$ 381	$ 383

Goodwill and Acquired Intangi30

Goodwill and Acquired Intangible Assets - Goodwill by Operating Segment (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill [Roll Forward]
December 31, 2016	$ 390
Adjustments	2
Currency Translation Adjustments	6
September 30, 2017	398
Americas Data and Analytics
Goodwill [Roll Forward]
December 31, 2016	251
Adjustments	2
Currency Translation Adjustments	0
September 30, 2017	253
International Data and Analytics
Goodwill [Roll Forward]
December 31, 2016	139
Adjustments	0
Currency Translation Adjustments	6
September 30, 2017	$ 145

Goodwill and Acquired Intangi31

Goodwill and Acquired Intangible Assets - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill [Line Items]
Goodwill, acquired during period	$ 2
Intellectual Property
Goodwill [Line Items]
Finite-lived intangible assets acquired	$ 18

Goodwill and Acquired Intangi32

Goodwill and Acquired Intangible Assets - Gross Carrying Amount and Accumulated Amortization for Teradata Acquired Intangible Assets (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 46	$ 77
Accumulated Amortization and Currency Translation Adjustments	(23)	(66)
Intellectual property/developed technology
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	41	71
Accumulated Amortization and Currency Translation Adjustments	$ (18)	$ (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	$ (5)	$ (4)
Minimum | Intellectual property/developed technology
Acquired Finite-Lived Intangible Assets
Amortization Life (in Years)	3 years	3 years
Maximum | Intellectual property/developed technology
Acquired Finite-Lived Intangible Assets
Amortization Life (in Years)	5 years	5 years

Goodwill and Acquired Intangi33

Goodwill and Acquired Intangible Assets - Aggregate Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 3	$ 6	$ 2	$ 9	$ 10
Amortization expense - Remainder of 2017	8		8
Amortization expense - 2018	7		7
Amortization expense - 2019	5		5
Amortization expense - 2020	4		4
Amortization expense - 2021	4		4
Amortization expense - 2022	$ 1		$ 1

Income Taxes - Additional infor

Income Taxes - Additional information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	(116.70%)	45.60%	(600.00%)	48.50%
Other tax expense (benefit)	$ 6		$ 6
Unrecognized tax benefits, period increase (decrease)		$ 22
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
Unrecognized tax benefits, decrease resulting from prior period tax positions		$ 2

Derivative Instruments and He35

Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivative
Net contract notional amount of foreign exchange forward contracts	$ 16	$ 16
Foreign Exchange Contract
Derivative
Contract notional amount of foreign exchange forward contracts	$ 110	$ 156

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Sep. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Maximum future payment obligation of the guaranteed value and associated liabilities	$ 4,000,000

Commitments and Contingencies37

Commitments and Contingencies - Warranty Reserve Activity (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance at January 1	$ 5	$ 6
Provisions for warranties issued	4	6
Settlements (in cash or in kind)	(6)	(7)
Balance at September 30	$ 3	$ 5

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	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 483	$ 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	483	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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income attributable to common stockholders	$ 13	$ 49	$ 7	$ 67
Weighted average outstanding shares of common stock (in shares)	123.7	129.7	127.3	129.6
Dilutive effect of employee stock options, restricted stock and other stock awards (in shares)	2.1	1.9	1.8	1.7
Common stock and common stock equivalents (in shares)	125.8	131.6	129.1	131.3
Net income per share:
Basic (in dollars per share)	$ 0.11	$ 0.38	$ 0.05	$ 0.52
Diluted (in dollars per share)	$ 0.10	$ 0.37	$ 0.05	$ 0.51

Earnings per Share - Additional

Earnings per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Antidilutive options to purchase were excluded from computation of diluted earnings per share (in shares)	2.7	4.7	3.6	4.9

Segment and Other Supplementa41

Segment and Other Supplemental Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment and Other Supplementa42

Segment and Other Supplemental Information - Regional Segment Revenue and Gross Margin for Company (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information
Revenue	$ 526	$ 552	$ 1,530	$ 1,696
Gross profit	270	313	786	939
Stock-based compensation costs	3	3	10	11
Amortization of acquisition-related intangible asset costs	0	0	0	2
Acquisition, integration, reorganization and transformation-related costs	2	1	6	6
Amortization of capitalized software costs	15	15	54	47
Selling, general and administrative expenses	161	159	481	505
Research and development expenses	82	46	230	154
Impairment of goodwill, acquired intangibles and other assets	0	0	0	80
Income from operations	7	89	5	134
Americas Data and Analytics
Segment Reporting Information
Revenue	292	317	830	937
Gross profit	173	195	482	564
International Data and Analytics
Segment Reporting Information
Revenue	234	235	700	690
Gross profit	97	118	304	341
Data and Analytics
Segment Reporting Information
Revenue	526	552	1,530	1,627
Gross profit	270	313	786	905
Marketing Applications
Segment Reporting Information
Revenue	0	0	0	69
Gross profit	$ 0	$ 0	0	34
Impairment of goodwill, acquired intangibles and other assets			$ 1	$ 80

Segment and Other Supplementa43

Segment and Other Supplemental Information - Revenue by Product and Services (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting [Abstract]
Product - rights to upgrades, subscription and cloud	$ 185	$ 175	$ 543	$ 517
Maintenance - software and hardware	82	72	233	211
Total recurring revenue	267	247	776	728
Product - perpetual licenses and hardware	90	137	271	411
Consulting services	169	168	483	488
Marketing applications	0	0	0	69
Total revenue	$ 526	$ 552	$ 1,530	$ 1,696

Reorganization and Business T44

Reorganization and Business Transformation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Asset write-downs	$ 0	$ 0	$ 0	$ 80
Marketing Applications
Restructuring Cost and Reserve [Line Items]
Employee severance and other employee related cost			2	12
Asset write-downs			1	80
Professional services, legal and other transformation costs			24	27
Total reorganization and business transformation cost			27	119
Other Restructuring | Marketing Applications
Restructuring Cost and Reserve [Line Items]
Total reorganization and business transformation cost			3
Employee Severance | Marketing Applications
Restructuring Cost and Reserve [Line Items]
Payments for restructuring			$ 1	$ 18