Cover page
Cover page - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33458 | |
Entity Registrant Name | TERADATA CORP /DE/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-3236470 | |
Entity Address, Address Line One | 17095 Via Del Campo | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92127 | |
City Area Code | 866 | |
Local Phone Number | 548-8348 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | TDC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109.3 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000816761 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of (Loss) Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Revenue | $ 454 | $ 459 | $ 1,345 | $ 1,405 |
Cost of revenue | ||||
Cost of revenue | 200 | 212 | 610 | 698 |
Gross profit | 254 | 247 | 735 | 707 |
Operating expenses | ||||
Selling, general and administrative expenses | 163 | 151 | 486 | 447 |
Research and development expenses | 90 | 86 | 246 | 245 |
Total operating expenses | 253 | 237 | 732 | 692 |
Income from operations | 1 | 10 | 3 | 15 |
Other expense, net | ||||
Interest expense | (7) | (8) | (21) | (19) |
Interest income | 1 | 4 | 4 | 10 |
Other expense | (5) | (2) | (13) | (7) |
Total other expense, net | (11) | (6) | (30) | (16) |
(Loss) income before income taxes | (10) | 4 | (27) | (1) |
Income tax benefit | (9) | (6) | (151) | 0 |
Net (loss) income | $ (1) | $ 10 | $ 124 | $ (1) |
Net (loss) income per common share | ||||
Basic (in dollars per share) | $ (0.01) | $ 0.09 | $ 1.13 | $ (0.01) |
Diluted (in dollars per share) | $ (0.01) | $ 0.09 | $ 1.12 | $ (0.01) |
Weighted average common shares outstanding | ||||
Basic (in shares) | 109.1 | 113.2 | 109.3 | 115.2 |
Diluted (in shares) | 109.1 | 114.2 | 110.9 | 115.2 |
Recurring | ||||
Revenue | ||||
Revenue | $ 365 | $ 343 | $ 1,068 | $ 1,012 |
Cost of revenue | ||||
Cost of revenue | 123 | 110 | 359 | 323 |
Perpetual software licenses and hardware | ||||
Revenue | ||||
Revenue | 17 | 16 | 48 | 76 |
Cost of revenue | ||||
Cost of revenue | 7 | 9 | 27 | 60 |
Consulting services | ||||
Revenue | ||||
Revenue | 72 | 100 | 229 | 317 |
Cost of revenue | ||||
Cost of revenue | $ 70 | $ 93 | $ 224 | $ 315 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (1) | $ 10 | $ 124 | $ (1) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 6 | (11) | (11) | (18) |
Derivatives: | ||||
Unrealized gain (loss) on derivatives, before tax | 3 | (2) | (10) | (15) |
Unrealized gain (loss) on derivatives, tax portion | (1) | 1 | 2 | 4 |
Unrealized gain on derivatives, net of tax | 2 | (1) | (8) | (11) |
Defined benefit plans: | ||||
Defined benefit plan adjustment, before tax | 3 | 2 | 7 | 4 |
Defined benefit plan adjustment, tax portion | (1) | (1) | (2) | (1) |
Defined benefit plan adjustment, net of tax | 2 | 1 | 5 | 3 |
Other comprehensive income (loss) | 10 | (11) | (14) | (26) |
Comprehensive income (loss) | $ 9 | $ (1) | $ 110 | $ (27) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 533 | $ 494 |
Accounts receivable, net | 321 | 398 |
Inventories | 14 | 31 |
Other current assets | 97 | 91 |
Total current assets | 965 | 1,014 |
Property and equipment, net | 336 | 350 |
Capitalized software, net | 19 | 36 |
Right of use assets - operating lease, net | 42 | 51 |
Goodwill | 397 | 396 |
Capitalized contract costs, net | 89 | 91 |
Deferred income taxes | 238 | 87 |
Other assets | 31 | 32 |
Total assets | 2,117 | 2,057 |
Current liabilities | ||
Current portion of long-term debt | 38 | 25 |
Current portion of finance lease liability | 75 | 55 |
Current portion of operating lease liability | 17 | 20 |
Accounts payable | 59 | 66 |
Payroll and benefits liabilities | 131 | 157 |
Deferred revenue | 482 | 472 |
Other current liabilities | 93 | 91 |
Total current liabilities | 895 | 886 |
Long-term debt | 423 | 454 |
Finance lease liability | 70 | 75 |
Operating lease liability | 30 | 38 |
Pension and other postemployment plan liabilities | 136 | 137 |
Long-term deferred revenue | 38 | 61 |
Deferred tax liabilities | 6 | 6 |
Other liabilities | 135 | 138 |
Total liabilities | 1,733 | 1,795 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 0 | 0 |
Common stock: par value $0.01 per share, 500.0 shares authorized, 109.2 and 110.9 shares issued at September 30, 2020 and December 31, 2019, respectively | 1 | 1 |
Paid-in capital | 1,632 | 1,545 |
Accumulated deficit | (1,094) | (1,143) |
Accumulated other comprehensive loss | (155) | (141) |
Total stockholders’ equity | 384 | 262 |
Total liabilities and stockholders’ equity | $ 2,117 | $ 2,057 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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) | 109,200,000 | 110,900,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net (loss) income | $ 124 | $ (1) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 126 | 113 |
Stock-based compensation expense | 79 | 59 |
Deferred income taxes | (152) | 1 |
Changes in assets and liabilities: | ||
Receivables | 77 | 260 |
Inventories | 17 | (8) |
Current payables and accrued expenses | (24) | (156) |
Deferred revenue | (13) | (119) |
Other assets and liabilities | (23) | (55) |
Net cash provided by operating activities | 211 | 94 |
Investing activities | ||
Expenditures for property and equipment | (34) | (43) |
Additions to capitalized software | (6) | (3) |
Net cash used in investing activities | (40) | (46) |
Financing activities | ||
Repurchases of common stock | (75) | (239) |
Repayments of long-term borrowings | (19) | (12) |
Payments of finance leases | (43) | (18) |
Other financing activities, net | 7 | 40 |
Net cash used in financing activities | (130) | (229) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | (6) |
Increase (decrease) in cash, cash equivalents and restricted cash | 38 | (187) |
Cash, cash equivalents and restricted cash at beginning of period | 496 | 716 |
Cash, cash equivalents and restricted cash at end of period | 534 | 529 |
Supplemental cash flow disclosure: | ||
Assets acquired under operating lease | 6 | 5 |
Assets acquired under finance lease | 58 | 78 |
Total cash, cash equivalents and restricted cash | $ 534 | $ 529 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Shares issued, beginning balance (in shares) at Dec. 31, 2018 | 117 | ||||
Stockholders’ equity, beginning balance at Dec. 31, 2018 | $ 495 | $ 1 | $ 1,418 | $ (823) | $ (101) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | (10) | (10) | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares) | 1 | ||||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 48 | 48 | |||
Repurchases of common stock, retired (in shares) | (1) | ||||
Repurchases of common stock, retired | (58) | (58) | |||
Pension and postemployment benefit plans, net of tax | 1 | 1 | |||
Unrealized gain on derivatives, net of tax | (3) | (3) | |||
Currency translation adjustment | (6) | (6) | |||
Shares issued, beginning balance (in shares) at Mar. 31, 2019 | 117 | ||||
Stockholders’ equity, ending balance at Mar. 31, 2019 | 467 | $ 1 | 1,466 | (891) | (109) |
Shares issued, beginning balance (in shares) at Dec. 31, 2018 | 117 | ||||
Stockholders’ equity, beginning balance at Dec. 31, 2018 | 495 | $ 1 | 1,418 | (823) | (101) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | (1) | ||||
Pension and postemployment benefit plans, net of tax | 3 | ||||
Unrealized gain on derivatives, net of tax | (11) | ||||
Currency translation adjustment | (18) | ||||
Shares issued, beginning balance (in shares) at Sep. 30, 2019 | 112 | ||||
Stockholders’ equity, ending balance at Sep. 30, 2019 | 328 | $ 1 | 1,517 | (1,063) | (127) |
Shares issued, beginning balance (in shares) at Mar. 31, 2019 | 117 | ||||
Stockholders’ equity, beginning balance at Mar. 31, 2019 | 467 | $ 1 | 1,466 | (891) | (109) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | (1) | (1) | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 25 | 25 | |||
Repurchases of common stock, retired (in shares) | (3) | ||||
Repurchases of common stock, retired | (117) | (117) | |||
Pension and postemployment benefit plans, net of tax | 1 | 1 | |||
Unrealized gain on derivatives, net of tax | (7) | (7) | |||
Currency translation adjustment | (1) | (1) | |||
Shares issued, beginning balance (in shares) at Jun. 30, 2019 | 114 | ||||
Stockholders’ equity, ending balance at Jun. 30, 2019 | 367 | $ 1 | 1,491 | (1,009) | (116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | 10 | 10 | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 26 | 26 | |||
Repurchases of common stock, retired (in shares) | (2) | ||||
Repurchases of common stock, retired | (64) | (64) | |||
Pension and postemployment benefit plans, net of tax | 1 | 1 | |||
Unrealized gain on derivatives, net of tax | (1) | (1) | |||
Currency translation adjustment | (11) | (11) | |||
Shares issued, beginning balance (in shares) at Sep. 30, 2019 | 112 | ||||
Stockholders’ equity, ending balance at Sep. 30, 2019 | 328 | $ 1 | 1,517 | (1,063) | (127) |
Shares issued, beginning balance (in shares) at Dec. 31, 2019 | 111 | ||||
Stockholders’ equity, beginning balance at Dec. 31, 2019 | 262 | $ 1 | 1,545 | (1,143) | (141) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | 168 | 168 | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares) | 1 | ||||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 22 | 22 | |||
Repurchases of common stock, retired (in shares) | (4) | ||||
Repurchases of common stock, retired | (75) | (75) | |||
Pension and postemployment benefit plans, net of tax | 2 | 2 | |||
Unrealized gain on derivatives, net of tax | (11) | (11) | |||
Currency translation adjustment | (19) | (19) | |||
Shares issued, beginning balance (in shares) at Mar. 31, 2020 | 108 | ||||
Stockholders’ equity, ending balance at Mar. 31, 2020 | 349 | $ 1 | 1,567 | (1,050) | (169) |
Shares issued, beginning balance (in shares) at Dec. 31, 2019 | 111 | ||||
Stockholders’ equity, beginning balance at Dec. 31, 2019 | 262 | $ 1 | 1,545 | (1,143) | (141) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | 124 | ||||
Pension and postemployment benefit plans, net of tax | 5 | ||||
Unrealized gain on derivatives, net of tax | (8) | ||||
Currency translation adjustment | (11) | ||||
Shares issued, beginning balance (in shares) at Sep. 30, 2020 | 109 | ||||
Stockholders’ equity, ending balance at Sep. 30, 2020 | 384 | $ 1 | 1,632 | (1,094) | (155) |
Shares issued, beginning balance (in shares) at Mar. 31, 2020 | 108 | ||||
Stockholders’ equity, beginning balance at Mar. 31, 2020 | 349 | $ 1 | 1,567 | (1,050) | (169) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | (43) | (43) | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares) | 1 | ||||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 36 | 36 | |||
Pension and postemployment benefit plans, net of tax | 1 | 1 | |||
Unrealized gain on derivatives, net of tax | 1 | 1 | |||
Currency translation adjustment | 2 | 2 | |||
Shares issued, beginning balance (in shares) at Jun. 30, 2020 | 109 | ||||
Stockholders’ equity, ending balance at Jun. 30, 2020 | 346 | $ 1 | 1,603 | (1,093) | (165) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | (1) | (1) | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares) | 0 | ||||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 29 | 29 | |||
Pension and postemployment benefit plans, net of tax | 2 | 2 | |||
Unrealized gain on derivatives, net of tax | 2 | 2 | |||
Currency translation adjustment | 6 | 6 | |||
Shares issued, beginning balance (in shares) at Sep. 30, 2020 | 109 | ||||
Stockholders’ equity, ending balance at Sep. 30, 2020 | $ 384 | $ 1 | $ 1,632 | $ (1,094) | $ (155) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThese 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 2019 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, 2019 (the "2019 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. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Compensation-Retirement Benefits-Defined Benefit Plans-General. In August 2018, the Financial Accounting Standards Board ("FASB") issued new guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact it may have on its disclosures. Accounting for Income Taxes. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes. The new guidance changes various subtopics of accounting for income taxes including, but not limited to, accounting for "hybrid" tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, and year-to-date loss limitation in interim-period tax accounting. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted, including interim periods within those years. The Company is currently evaluating this new guidance to determine the impact it may have on our financial position, results of operations or cash flows. Reference Rate Reform. In March 2020, the FASB issued new guidance to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when participating banks will no longer be required to submit London Interbank Offered Rate ("LIBOR") quotes by the UK Financial Conduct Authority. The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, companies may elect to apply the amendments as of March 12, 2020 through December 31, 2022. The Company is currently evaluating this new guidance to determine the impact it may have on our financial statements and disclosures. Recently Adopted Guidance Fair Value Measurement. In August 2018, the FASB issued new guidance that modifies disclosure requirements related to fair value measurement. The Company adopted this guidance on January 1, 2020, which did not have a material impact on our condensed consolidated financial statements. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. In August 2018, the FASB issued new guidance that reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue from Contracts with Customers The following table presents a disaggregation of revenue: Three Months Ended September 30, Nine months ended September 30, in millions 2020 2019 2020 2019 Americas Recurring $ 221 $ 222 $ 656 $ 652 Perpetual software licenses and hardware 14 — 28 31 Consulting services 26 34 80 111 Total Americas 261 256 764 794 EMEA Recurring 92 75 263 223 Perpetual software licenses and hardware 1 12 14 29 Consulting services 22 31 74 101 Total EMEA 115 118 351 353 APJ Recurring 52 46 149 137 Perpetual software licenses and hardware 2 4 6 16 Consulting services 24 35 75 105 Total APJ 78 85 230 258 Total Revenue $ 454 $ 459 $ 1,345 $ 1,405 Rental revenue, which is included in recurring revenue in the above table, was as follows: Three Months Ended September 30, Nine Months Ended September 30, in millions 2020 2019 2020 2019 Rental revenue* $ 28 $ 22 $ 72 $ 52 *Rental revenue includes hardware maintenance. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the condensed consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in Other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about receivables, contract assets and deferred revenue from contracts with customers: As of in millions September 30, 2020 December 31, 2019 Accounts receivable, net $ 321 $ 398 Contract assets $ 11 $ 8 Current deferred revenue $ 482 $ 472 Long-term deferred revenue $ 38 $ 61 Revenue recognized during the nine months ended September 30, 2020 from amounts included in deferred revenue at the beginning of the period was $370 million. Transaction Price Allocated to Unsatisfied Obligations The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at September 30, 2020: in millions Total at September 30, 2020 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,577 $ 1,393 $ 1,184 The Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in Capitalized contract costs, net on the Company’s balance sheet. The capitalized amounts are calculated based on the annual recurring revenue and total contract value for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically around four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs: in millions December 31, 2019 Capitalized Amortization September 30, 2020 Capitalized contract costs $ 91 $ 23 $ (25) $ 89 in millions December 31, 2018 Capitalized Amortization September 30, 2019 Capitalized contract costs $ 54 $ 37 $ (14) $ 77 |
Contract Costs
Contract Costs | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract Costs | Revenue from Contracts with Customers Disaggregation of Revenue from Contracts with Customers The following table presents a disaggregation of revenue: Three Months Ended September 30, Nine months ended September 30, in millions 2020 2019 2020 2019 Americas Recurring $ 221 $ 222 $ 656 $ 652 Perpetual software licenses and hardware 14 — 28 31 Consulting services 26 34 80 111 Total Americas 261 256 764 794 EMEA Recurring 92 75 263 223 Perpetual software licenses and hardware 1 12 14 29 Consulting services 22 31 74 101 Total EMEA 115 118 351 353 APJ Recurring 52 46 149 137 Perpetual software licenses and hardware 2 4 6 16 Consulting services 24 35 75 105 Total APJ 78 85 230 258 Total Revenue $ 454 $ 459 $ 1,345 $ 1,405 Rental revenue, which is included in recurring revenue in the above table, was as follows: Three Months Ended September 30, Nine Months Ended September 30, in millions 2020 2019 2020 2019 Rental revenue* $ 28 $ 22 $ 72 $ 52 *Rental revenue includes hardware maintenance. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the condensed consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in Other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about receivables, contract assets and deferred revenue from contracts with customers: As of in millions September 30, 2020 December 31, 2019 Accounts receivable, net $ 321 $ 398 Contract assets $ 11 $ 8 Current deferred revenue $ 482 $ 472 Long-term deferred revenue $ 38 $ 61 Revenue recognized during the nine months ended September 30, 2020 from amounts included in deferred revenue at the beginning of the period was $370 million. Transaction Price Allocated to Unsatisfied Obligations The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at September 30, 2020: in millions Total at September 30, 2020 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,577 $ 1,393 $ 1,184 The Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in Capitalized contract costs, net on the Company’s balance sheet. The capitalized amounts are calculated based on the annual recurring revenue and total contract value for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically around four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs: in millions December 31, 2019 Capitalized Amortization September 30, 2020 Capitalized contract costs $ 91 $ 23 $ (25) $ 89 in millions December 31, 2018 Capitalized Amortization September 30, 2019 Capitalized contract costs $ 54 $ 37 $ (14) $ 77 |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2020 | |
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 $ 3 $ 19 Service parts 11 12 Total inventories $ 14 $ 31 Deferred revenue Deferred revenue, current $ 482 $ 472 Long-term deferred revenue 38 61 Total deferred revenue $ 520 $ 533 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
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. As a result of the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"), the Company changed its indefinite reversal assertion related to its undistributed earnings of its foreign subsidiaries and no longer considers a majority of its foreign earnings permanently reinvested 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. The effective tax rate is as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2020 2019 2020 2019 Effective tax rate 90.0 % (150.0) % 559.3 % — % For the three months ended September 30, 2020, the Company recorded $9 million of discrete tax benefit, a majority of which related to the adjustment of the marginal tax rate from the second quarter based on revised full-year forecasted earnings. As a result, the Company recorded income tax benefit of $9 million on a pre-tax net loss of $10 million for the three months ended September 30, 2020, resulting in an effective income tax rate of 90.0%. For the nine months ended September 30, 2020, the Company recorded $122 million of discrete tax benefit. The year to date discrete tax expense of $29 million recorded for marginal tax rate adjustments based on revised full year forecasted earnings was offset by $152 million of discrete tax benefit recorded in the first quarter, a majority of which related to an intra-entity asset transfer of certain of the Company's intellectual property ("IP") to one of its Irish subsidiaries, which occurred on January 1, 2020. As a result, the Company recorded income tax benefit of $151 million on a pre-tax net loss of $27 million for the nine months ended September 30, 2020, resulting in an effective income tax rate of 559.3%. For the three months ended September 30, 2019, the Company recorded a $5 million discrete tax benefit related to the reversal of an uncertain tax position resulting from the expiration of the statute of limitations. For the nine months ended September 30, 2019, the $5 million discrete tax benefit was partially offset by $4 million of discrete tax expense recorded in the second quarter related to the reversal of the United States Tax Court’s decision in the Altera Corp. v. Commissioner case by the Ninth Circuit Court of Appeals on June 7, 2019. The Altera case focused on whether current U.S. Treasury Regulations requiring the inclusion of stock-based compensation expense in a taxpayer's cost-sharing calculations are valid. As a result of these discrete items and incremental tax expense related to equity compensation, the Company recorded insignificant income tax expense on |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
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 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. 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. 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 revenues, operating expenses or in other income (expense), depending on the nature of the related hedged item. In June 2018, Teradata executed a five-year interest rate swap with a $500 million initial notional amount to hedge the floating interest rate of its term loan, as more fully described in Note 10. The Company uses interest rate swaps to manage interest rate risks on future interest payments caused by interest rate changes on its variable rate term loan. The notional amount of the hedge steps down according to the amortization schedule of the term loan. The notional amount of the hedge was $463 million as of September 30, 2020. The Company performed an initial effectiveness assessment in the third quarter of 2018 on the interest rate swap, and the hedge was determined to be effective. The hedge is being evaluated qualitatively on a quarterly basis for effectiveness. Changes in fair value are recorded in Accumulated Other Comprehensive Loss and periodic settlements of the swap will be recorded in interest expense along with the interest on amounts outstanding under the term loan. The following table identifies the contract notional amount of the Company’s derivative financial instruments: As of In millions September 30, December 31, Contract notional amount of foreign exchange forward contracts $ 124 $ 150 Net contract notional amount of foreign exchange forward contracts $ 34 $ 41 Contract notional amount of interest rate swap $ 463 $ 482 All derivatives are recognized in the condensed consolidated balance sheets at their fair value. 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. Refer to Note 9 for disclosures related to the fair value of all derivative assets and liabilities. 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 foreign |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time in the ordinary course of business, the Company is subject to legal proceedings, governmental investigations, claims and other matters, including those that relate to the environment, health and safety, employee benefits, export compliance, IP, tax matters and other regulatory compliance and general matters. We are not currently a party to any legal proceeding, nor are we aware of any threatened legal proceeding against us, that we believe would materially adversely affect our business, operating results, financial condition or cash flows. 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 with a third-party leasing company as part of a revenue transaction, whereby the leasing company purchases equipment from Teradata and leases it to the customer. 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, 2020, the maximum future payment obligation of this guaranteed value and the associated liability balance was $1 million. For customers that purchase hardware, the Company provides a standard manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. The estimated liabilities for warranty costs are not material, given that most customers do not purchase hardware under the perpetual model. The Company also offers extended and/or enhanced coverage to its customers in the form of maintenance contracts. Teradata 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. 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 a patent or other IP infringement claim against the customer for its use of the Company’s offerings. The Company has indemnification obligations under its charter and bylaws to its officers and directors, and 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 divestiture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is typically 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. As such, the Company has generally 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, 2020 and December 31, 2019. The Company is also potentially subject to concentrations of supplier risk. Our hardware components are assembled exclusively by Flex Ltd. ("Flex"). Flex 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 Flex and to source certain components from single suppliers, a disruption in production at Flex or at a supplier could impact the timing of customer shipments and/or |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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, interest rate swaps 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. Additionally, in June 2018, Teradata executed a five-year interest rate swap with a $500 million initial notional amount in order to hedge the floating interest rate on its term loan. The fair value of these contracts and swaps 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 of unrealized gains for open contracts are recorded in other assets and the fair value of unrealized losses are recorded in other liabilities in the Company's balance sheet. The fair value of foreign exchange forward contracts recorded in other assets was $1 million at September 30, 2020 and not material at December 31, 2019. The fair value of foreign exchange liabilities at September 30, 2020 and December 31, 2019 was not material. Realized gains and losses from the Company’s fair value hedges net of corresponding gains or losses on the underlying exposures were immaterial for the three and nine months ended September 30, 2020 and 2019. The Company’s other assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at September 30, 2020 and December 31, 2019 were as follows: Fair Value Measurements at Reporting Date Using In millions Total Quoted Prices in Significant Significant Assets Money market funds at September 30, 2020 $ 126 $ 126 $ — $ — Money market funds at December 31, 2019 $ 141 $ 141 $ — $ — Liabilities Interest rate swap at September 30, 2020 $ 30 $ — $ 30 $ — Interest rate swap at December 31, 2019 $ 19 $ — $ 19 $ — |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DebtIn June 2018, Teradata replaced an existing 5 year, $400 million revolving credit facility with a new $400 million revolving credit facility (the "Credit Facility"). The Credit Facility expires in June 2023, at which point any remaining outstanding borrowings would be due for repayment unless extended by agreement of the parties for up to two additional one-year periods. In addition, under the terms of the Credit Facility, Teradata from time to time and subject to certain conditions may increase the lending commitments under the Credit Facility in an aggregate principal amount up to an additional $200 million, to the extent that existing or new lenders agree to provide such additional commitments. The outstanding principal amount of the Credit Facility bears interest at a floating rate based upon, at Teradata’s option, a negotiated base rate or a Eurodollar rate plus, in each case, a margin based on Teradata’s leverage ratio. In the near term, Teradata would anticipate choosing a floating rate based on LIBOR. The Credit Facility is unsecured but is guaranteed by certain of Teradata’s material domestic subsidiaries and contains certain representations and warranties, conditions, affirmative, negative and financial covenants, and events of default customary for such facilities. As of September 30, 2020, the Company had no borrowings outstanding under the Credit Facility, leaving $400 million in borrowing capacity available under the Credit Facility. The Company was in compliance with all covenants under the Credit Facility as of September 30, 2020. Also, in June 2018, Teradata closed on a new senior unsecured $500 million five-year term loan, the proceeds of which plus additional cash-on-hand were used to pay off the remaining $525 million of principal on its previous term loan. The term loan is payable in quarterly installments, which commenced on September 30, 2019, with 1.25% of the initial principal amount due on each of the first eight payment dates; 2.50% of the initial principal amount due on each of the next four payment dates; 5.0% of the initial principal amount due on each of the next three payment dates; and all remaining principal due in June 2023. The outstanding principal amount of the term loan bears interest at a floating rate based upon a negotiated base rate or a Eurodollar rate, plus in each case, a margin based on the leverage ratio of the Company. As of September 30, 2020, the term loan principal outstanding was $463 million. As disclosed in Note 7, Teradata entered into an interest rate swap to hedge the floating interest rate of the term loan. As a result of the swap, Teradata’s fixed rate on the term loan equals 2.86% plus the applicable leverage-based margin as defined in the term loan agreement. As of September 30, 2020, the all-in fixed rate is 4.36%. The Company was in compliance with all covenants under the term loan as of September 30, 2020. Teradata’s term loan is recognized on the Company’s balance sheet at its unpaid principal balance, net of deferred issuance costs, and is not subject to fair value measurement. However, given that the loan carries a variable rate, the Company estimates that the unpaid principal balance of the term loan would approximate its fair value. If measured at fair value in the financial statements, the Company’s term loan would be classified as Level 2 in the fair value hierarchy. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
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 2020 2019 2020 2019 Net (loss) income attributable to common stockholders $ (1) $ 10 $ 124 $ (1) Weighted average outstanding shares of common stock 109.1 113.2 109.3 115.2 Dilutive effect of employee stock options, restricted stock and other stock awards — 1.0 1.6 — Common stock and common stock equivalents 109.1 114.2 110.9 115.2 Net (loss) income per share: Basic $ (0.01) $ 0.09 $ 1.13 $ (0.01) Diluted $ (0.01) $ 0.09 $ 1.12 $ (0.01) For the three months ended September 30, 2020 and nine months ended September 30, 2019, due to the net loss attributable to Teradata common stockholders, potential common shares that would cause dilution, such as employee stock options, restricted shares 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 111.1 million for the three months ended September 30, 2020 and 116.6 million for the nine months ended September 30, 2019. |
Segment and Other Supplemental
Segment and Other Supplemental Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment and Other Supplemental Information | Segment and Other Supplemental Information Teradata manages its business under three geographic regions, which are also the Company’s operating segments: (1) Americas region (North America and Latin America); (2) EMEA region (Europe, Middle East and Africa) and (3) APJ region (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, who is our President and Chief Executive Officer, evaluates the performance of the segments based on revenue and multiple profit measures, including segment gross profit. For management reporting purposes assets are not allocated to the segments. The following table presents segment revenue and segment gross profit for the Company: Three Months Ended Nine Months Ended In millions 2020 2019 2020 2019 Segment revenue Americas $ 261 $ 256 $ 764 $ 794 EMEA 115 118 351 353 APJ 78 85 230 258 Total revenue 454 459 1,345 1,405 Segment gross profit Americas 165 158 470 473 EMEA 69 62 197 169 APJ 43 37 114 108 Total segment gross profit 277 257 781 750 Stock-based compensation costs 5 5 13 12 Acquisition, integration, reorganization and transformation-related costs 12 (1) 16 4 Amortization of capitalized software costs 6 6 17 27 Total gross profit 254 247 735 707 Selling, general and administrative expenses 163 151 486 447 Research and development expenses 90 86 246 245 Income from operations $ 1 $ 10 $ 3 $ 15 |
Reorganization and Business Tra
Reorganization and Business Transformation | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Business Transformation | Reorganization and Business Transformation In September 2020, the Company offered a voluntary separation program ("VSP") to certain tenured employees. This global program was generally made available to active employees in good standing who (1) were at least 55 years old as of October 1, 2020 and (2) had at least ten years of service with Teradata. This program was implemented as part of the Company's efforts to improve its cost structure. The Company accrued a liability and recognized costs of $27 million for the nine months ended September 30, 2020 for the VSP. A majority of the benefits will be paid within a nominal period. Certain benefits are being expensed over the time period that the employees have to work to earn them to the extent the required service period extends beyond the nominal period. The Company estimates that it will incur total costs and charges of approximately |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Workforce Reduction and Real Estate Rationalization Plan. The Company is in the process of realigning and streamlining its operations as it pursues its business transformation and strategy to become a cloud-first profitable growth company. As part of these activities, on November 2, 2020, the Company approved a plan to realign and reduce its workforce and rationalize its real estate footprint. The workforce measures involve involuntary headcount reduction actions. These actions are separate from the VSP discussed in Note 13. The rationalization of the Company’s real estate footprint involves terminating leases relating to certain of the Company’s offices globally and transitioning impacted employees to a permanent virtual working environment, co-working space or a smaller facility, depending on business need. The Company is continuing to evaluate and implement additional measures that would be expected to result in further cost savings. The Company expects that the costs relating to these workforce reduction and real estate rationalization measures will include one-time employee separation benefits, transition support, outside services and other exit-related costs. The Company expects that it will incur total costs and charges related to these actions in the range of approximately $70 to $80 million, consisting primarily of the following: • $16 to $18 million for employee severance and other employee-related costs, which is separate from the $32 to $37 million for costs related to the Voluntary Separation Program, • $11 to $12 million charge for facilities lease related costs, and • $11 to $13 million for outside service, legal and other associated costs. The Company expects to incur these costs and charges in 2020 and 2021, with the majority of the expenditures recorded in 2020. The actions related to these current planned workforce reduction and real estate rationalization measures are expected to be completed in 2021. Cash expenditures related to these actions are estimated at approximately $75 to $85 million. Approximately $15 to $18 million of the cash expenditures relate to cash payments to international employees and will not have a material impact on the Condensed Consolidated Statements of Income (Loss) due to the Company accounting for its International 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, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Compensation-Retirement Benefits-Defined Benefit Plans-General. In August 2018, the Financial Accounting Standards Board ("FASB") issued new guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact it may have on its disclosures. Accounting for Income Taxes. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes. The new guidance changes various subtopics of accounting for income taxes including, but not limited to, accounting for "hybrid" tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, and year-to-date loss limitation in interim-period tax accounting. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted, including interim periods within those years. The Company is currently evaluating this new guidance to determine the impact it may have on our financial position, results of operations or cash flows. Reference Rate Reform. In March 2020, the FASB issued new guidance to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when participating banks will no longer be required to submit London Interbank Offered Rate ("LIBOR") quotes by the UK Financial Conduct Authority. The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, companies may elect to apply the amendments as of March 12, 2020 through December 31, 2022. The Company is currently evaluating this new guidance to determine the impact it may have on our financial statements and disclosures. Recently Adopted Guidance Fair Value Measurement. In August 2018, the FASB issued new guidance that modifies disclosure requirements related to fair value measurement. The Company adopted this guidance on January 1, 2020, which did not have a material impact on our condensed consolidated financial statements. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. In August 2018, the FASB issued new guidance that reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents a disaggregation of revenue: Three Months Ended September 30, Nine months ended September 30, in millions 2020 2019 2020 2019 Americas Recurring $ 221 $ 222 $ 656 $ 652 Perpetual software licenses and hardware 14 — 28 31 Consulting services 26 34 80 111 Total Americas 261 256 764 794 EMEA Recurring 92 75 263 223 Perpetual software licenses and hardware 1 12 14 29 Consulting services 22 31 74 101 Total EMEA 115 118 351 353 APJ Recurring 52 46 149 137 Perpetual software licenses and hardware 2 4 6 16 Consulting services 24 35 75 105 Total APJ 78 85 230 258 Total Revenue $ 454 $ 459 $ 1,345 $ 1,405 |
Schedule of Rental Revenue | Rental revenue, which is included in recurring revenue in the above table, was as follows: Three Months Ended September 30, Nine Months Ended September 30, in millions 2020 2019 2020 2019 Rental revenue* $ 28 $ 22 $ 72 $ 52 *Rental revenue includes hardware maintenance. |
Schedule of Assets and Liabilities Related to Contracts with Customers | The following table provides information about receivables, contract assets and deferred revenue from contracts with customers: As of in millions September 30, 2020 December 31, 2019 Accounts receivable, net $ 321 $ 398 Contract assets $ 11 $ 8 Current deferred revenue $ 482 $ 472 Long-term deferred revenue $ 38 $ 61 |
Schedule of Estimated Revenue Expected to be Recognized in the Future | The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at September 30, 2020: in millions Total at September 30, 2020 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,577 $ 1,393 $ 1,184 |
Contract Costs (Tables)
Contract Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Activity Related to Capitalized Contract Cost | The following table identifies the activity relating to capitalized contract costs: in millions December 31, 2019 Capitalized Amortization September 30, 2020 Capitalized contract costs $ 91 $ 23 $ (25) $ 89 in millions December 31, 2018 Capitalized Amortization September 30, 2019 Capitalized contract costs $ 54 $ 37 $ (14) $ 77 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Supplemental Financial Information | As of In millions September 30, December 31, Inventories Finished goods $ 3 $ 19 Service parts 11 12 Total inventories $ 14 $ 31 Deferred revenue Deferred revenue, current $ 482 $ 472 Long-term deferred revenue 38 61 Total deferred revenue $ 520 $ 533 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rate | The effective tax rate is as follows: Three Months Ended September 30, Nine Months Ended September 30, In millions 2020 2019 2020 2019 Effective tax rate 90.0 % (150.0) % 559.3 % — % |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following table identifies the contract notional amount of the Company’s derivative financial instruments: As of In millions September 30, December 31, Contract notional amount of foreign exchange forward contracts $ 124 $ 150 Net contract notional amount of foreign exchange forward contracts $ 34 $ 41 Contract notional amount of interest rate swap $ 463 $ 482 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements | The Company’s other assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at September 30, 2020 and December 31, 2019 were as follows: Fair Value Measurements at Reporting Date Using In millions Total Quoted Prices in Significant Significant Assets Money market funds at September 30, 2020 $ 126 $ 126 $ — $ — Money market funds at December 31, 2019 $ 141 $ 141 $ — $ — Liabilities Interest rate swap at September 30, 2020 $ 30 $ — $ 30 $ — Interest rate swap at December 31, 2019 $ 19 $ — $ 19 $ — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 2020 2019 2020 2019 Net (loss) income attributable to common stockholders $ (1) $ 10 $ 124 $ (1) Weighted average outstanding shares of common stock 109.1 113.2 109.3 115.2 Dilutive effect of employee stock options, restricted stock and other stock awards — 1.0 1.6 — Common stock and common stock equivalents 109.1 114.2 110.9 115.2 Net (loss) income per share: Basic $ (0.01) $ 0.09 $ 1.13 $ (0.01) Diluted $ (0.01) $ 0.09 $ 1.12 $ (0.01) |
Segment and Other Supplementa_2
Segment and Other Supplemental Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Regional Segment Revenue and Gross Margin | The following table presents segment revenue and segment gross profit for the Company: Three Months Ended Nine Months Ended In millions 2020 2019 2020 2019 Segment revenue Americas $ 261 $ 256 $ 764 $ 794 EMEA 115 118 351 353 APJ 78 85 230 258 Total revenue 454 459 1,345 1,405 Segment gross profit Americas 165 158 470 473 EMEA 69 62 197 169 APJ 43 37 114 108 Total segment gross profit 277 257 781 750 Stock-based compensation costs 5 5 13 12 Acquisition, integration, reorganization and transformation-related costs 12 (1) 16 4 Amortization of capitalized software costs 6 6 17 27 Total gross profit 254 247 735 707 Selling, general and administrative expenses 163 151 486 447 Research and development expenses 90 86 246 245 Income from operations $ 1 $ 10 $ 3 $ 15 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 454 | $ 459 | $ 1,345 | $ 1,405 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 261 | 256 | 764 | 794 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 115 | 118 | 351 | 353 |
APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 78 | 85 | 230 | 258 |
Recurring | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 365 | 343 | 1,068 | 1,012 |
Recurring | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 221 | 222 | 656 | 652 |
Recurring | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 92 | 75 | 263 | 223 |
Recurring | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 52 | 46 | 149 | 137 |
Perpetual software licenses and hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17 | 16 | 48 | 76 |
Perpetual software licenses and hardware | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14 | 0 | 28 | 31 |
Perpetual software licenses and hardware | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1 | 12 | 14 | 29 |
Perpetual software licenses and hardware | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2 | 4 | 6 | 16 |
Consulting services | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26 | 34 | 80 | 111 |
Consulting services | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22 | 31 | 74 | 101 |
Consulting services | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 24 | $ 35 | $ 75 | $ 105 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Operating Lease Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Rental revenue | $ 28 | $ 22 | $ 72 | $ 52 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 321 | $ 398 |
Contract assets | 11 | 8 |
Current deferred revenue | 482 | 472 |
Long-term deferred revenue | $ 38 | $ 61 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue, revenue recognized | $ 370 |
Remaining performance obligation, amount of customer only general cancellation | 1,772 |
Remaining performance obligation, amount of non-cancelable contracts | $ 322 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 2,577 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 1,393 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 1,184 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period |
Contract Costs (Details)
Contract Costs (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Capitalized contract cost, amortization period | 4 years | |
Capitalized Contract Cost, Net [Roll Forward] | ||
Capitalized contract cost, net at period start | $ 91 | $ 54 |
Capitalized | 23 | 37 |
Amortization | (25) | (14) |
Capitalized contract cost, net at period end | $ 89 | $ 77 |
Supplemental Financial Inform_3
Supplemental Financial Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Finished goods | $ 3 | $ 19 |
Service parts | 11 | 12 |
Total inventories | 14 | 31 |
Deferred revenue | ||
Current deferred revenue | 482 | 472 |
Long-term deferred revenue | 38 | 61 |
Total deferred revenue | $ 520 | $ 533 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||||||
Discrete income tax expense (benefit) | $ (9) | $ (152) | $ (5) | $ (122) | |||
Income tax benefit | 9 | 6 | 151 | $ 0 | |||
Pre-tax income (loss) | $ (10) | $ 4 | $ (27) | $ (1) | |||
Effective tax rate (percentage) | 90.00% | (150.00%) | 559.30% | 0.00% | |||
Income tax expense (benefit), marginal tax rate adjustment | $ 29 | ||||||
Discrete tax expense related to an uncertain tax position | $ 4 | ||||||
Discrete tax benefit related to intra-entity asset transfer | $ 157 | ||||||
Scenario, Forecast | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Effective tax rate (percentage) | 279.00% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Detail) - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | |
Interest Rate Swap | |||
Derivative | |||
Derivative, term of contract | 5 years | ||
Derivative, contract notional amount | $ 500 | $ 463 | $ 482 |
Foreign Exchange Contract | |||
Derivative | |||
Derivative, contract notional amount | 124 | 150 | |
Net contract notional amount of foreign exchange forward contracts | $ 34 | $ 41 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum future payment obligation of the guaranteed value and associated liabilities | $ 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | |
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, term of contract | 5 years | ||
Derivative, contract notional amount | $ 500 | $ 463 | $ 482 |
Fair value of foreign exchange forward contracts | 30 | 19 | |
Foreign Exchange Forward Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of foreign exchange forward contracts | $ 1 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 126 | $ 141 |
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 | 126 | 141 |
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 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 30 | 19 |
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 30 | 19 |
Interest Rate Swap | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 1 Months Ended | |
Jun. 30, 2018USD ($)renewal | Sep. 30, 2020USD ($) | |
Debt Instrument | ||
Number of renewals | renewal | 2 | |
Renewal term | 1 year | |
Borrowings outstanding under the Credit Facility | $ 0 | |
Term Loan | ||
Debt Instrument | ||
Extinguishment of debt, amount | $ 525,000,000 | |
Revolving Credit Facility Ending in March 2020 | Revolving Credit Facility | ||
Debt Instrument | ||
Term of loan (years) | 5 years | |
Credit facility maximum borrowing capacity | $ 400,000,000 | |
Credit facility, additional borrowings capacity | 200,000,000 | |
Revolving Credit Facility Ending In June 2023 | Revolving Credit Facility | ||
Debt Instrument | ||
Credit facility maximum borrowing capacity | $ 400,000,000 | 400,000,000 |
Senior Unsecured term loan Issued June 2018 | Senior Unsecured Term Loan | ||
Debt Instrument | ||
Term of loan (years) | 5 years | |
Debt instrument, face amount | $ 500,000,000 | |
Principal outstanding | $ 463,000,000 | |
Debt Instrument, Redemption, Period One | ||
Debt Instrument | ||
Term loan, payable quarterly installments (percentage) | 1.25% | |
Debt Instrument, Redemption, Period Two | ||
Debt Instrument | ||
Term loan, payable quarterly installments (percentage) | 2.50% | |
Debt Instrument, Redemption, Period Three | ||
Debt Instrument | ||
Term loan, payable quarterly installments (percentage) | 5.00% | |
Interest Rate Swap | ||
Debt Instrument | ||
Fixed rate on term loan (percentage) | 2.86% | |
All-in fixed rate (percentage) | 4.36% |
Earnings per Share (Detail)
Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to common stockholders | $ (1) | $ 10 | $ 124 | $ (1) |
Weighted average outstanding shares of common stock (in shares) | 109.1 | 113.2 | 109.3 | 115.2 |
Dilutive effect of employee stock options, restricted stock and other stock awards (in shares) | 0 | 1 | 1.6 | 0 |
Common stock and common stock equivalents (in shares) | 109.1 | 114.2 | 110.9 | 115.2 |
Net (loss) income per share: | ||||
Basic (in dollars per share) | $ (0.01) | $ 0.09 | $ 1.13 | $ (0.01) |
Diluted (in dollars per share) | $ (0.01) | $ 0.09 | $ 1.12 | $ (0.01) |
Weighted average number of shares outstanding, diluted and anti-dilutive (in shares) | 111.1 | 116.6 | ||
Antidilutive options to purchase that were not included in the computation of diluted earnings per share (in shares) | 2.1 | 1.6 | 2.1 | 1.6 |
Segment and Other Supplementa_3
Segment and Other Supplemental Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment and Other Supplementa_4
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information | ||||
Segment revenue | $ 454 | $ 459 | $ 1,345 | $ 1,405 |
Gross profit | 254 | 247 | 735 | 707 |
Selling, general and administrative expenses | 163 | 151 | 486 | 447 |
Research and development expenses | 90 | 86 | 246 | 245 |
Income from operations | 1 | 10 | 3 | 15 |
Americas | ||||
Segment Reporting Information | ||||
Segment revenue | 261 | 256 | 764 | 794 |
EMEA | ||||
Segment Reporting Information | ||||
Segment revenue | 115 | 118 | 351 | 353 |
APJ | ||||
Segment Reporting Information | ||||
Segment revenue | 78 | 85 | 230 | 258 |
Operating segments | ||||
Segment Reporting Information | ||||
Gross profit | 277 | 257 | 781 | 750 |
Operating segments | Americas | ||||
Segment Reporting Information | ||||
Gross profit | 165 | 158 | 470 | 473 |
Operating segments | EMEA | ||||
Segment Reporting Information | ||||
Gross profit | 69 | 62 | 197 | 169 |
Operating segments | APJ | ||||
Segment Reporting Information | ||||
Gross profit | 43 | 37 | 114 | 108 |
Segment reconciling items | ||||
Segment Reporting Information | ||||
Stock-based compensation costs | 5 | 5 | 13 | 12 |
Acquisition, integration, reorganization and transformation-related costs | 12 | (1) | 16 | 4 |
Amortization of capitalized software costs | $ 6 | $ 6 | $ 17 | $ 27 |
Reorganization and Business T_2
Reorganization and Business Transformation (Details) | 1 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Employee minimum age to qualify | 55 years | |
Voluntary Separation Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of years of service (at least) | 10 years | |
Expense accruals | $ 27,000,000 | |
Estimated reorganization costs and charges | $ 32,000,000 | 32,000,000 |
Cash payments for restructuring | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | 9 Months Ended | 14 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2021 | Nov. 02, 2020 | |
Workforce Reduction Plan | Minimum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | $ 70,000,000 | ||
Workforce Reduction Plan | Minimum | Subsequent Event | Employee Severance and Other Employee-related Costs | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 16,000,000 | ||
Workforce Reduction Plan | Minimum | Subsequent Event | Facilities Lease Related Cost | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 11,000,000 | ||
Workforce Reduction Plan | Minimum | Subsequent Event | Outside Services, Legal and Other Associated Costs | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 11,000,000 | ||
Workforce Reduction Plan | Minimum | Subsequent Event | Scenario, Forecast | |||
Subsequent Event [Line Items] | |||
Cash payments for restructuring | $ 75,000,000 | ||
Workforce Reduction Plan | Minimum | Subsequent Event | Non-us | Scenario, Forecast | Employee | |||
Subsequent Event [Line Items] | |||
Cash payments for restructuring | 15,000,000 | ||
Workforce Reduction Plan | Maximum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 80,000,000 | ||
Workforce Reduction Plan | Maximum | Subsequent Event | Employee Severance and Other Employee-related Costs | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 18,000,000 | ||
Workforce Reduction Plan | Maximum | Subsequent Event | Facilities Lease Related Cost | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 12,000,000 | ||
Workforce Reduction Plan | Maximum | Subsequent Event | Outside Services, Legal and Other Associated Costs | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 13,000,000 | ||
Workforce Reduction Plan | Maximum | Subsequent Event | Scenario, Forecast | |||
Subsequent Event [Line Items] | |||
Cash payments for restructuring | 85,000,000 | ||
Workforce Reduction Plan | Maximum | Subsequent Event | Non-us | Scenario, Forecast | Employee | |||
Subsequent Event [Line Items] | |||
Cash payments for restructuring | $ 18,000,000 | ||
Voluntary Separation Program | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | $ 32,000,000 | ||
Cash payments for restructuring | $ 0 | ||
Voluntary Separation Program | Minimum | Subsequent Event | Employee Severance and Other Employee-related Costs | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | 32,000,000 | ||
Voluntary Separation Program | Maximum | Subsequent Event | Employee Severance and Other Employee-related Costs | |||
Subsequent Event [Line Items] | |||
Estimated reorganization costs and charges | $ 37,000,000 |
Uncategorized Items - tdc-20200
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 1,000,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,000,000 |