Teradata (TDC) 10-Q 5 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares shares in Millions	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-33458
Entity Registrant Name	TERADATA CORPORATION
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		108.5
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000816761
Current Fiscal Year End Date	--12-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue
Revenue	$ 460	$ 454	$ 1,442	$ 1,345
Cost of revenue
Cost of revenue	185	200	550	610
Gross profit	275	254	892	735
Operating expenses
Selling, general and administrative expenses	166	163	476	486
Research and development expenses	79	90	235	246
Total operating expenses	245	253	711	732
Income from operations	30	1	181	3
Other expense, net
Interest expense	(6)	(7)	(20)	(21)
Interest income	1	1	4	4
Other expense	(6)	(5)	(15)	(13)
Total other expense, net	(11)	(11)	(31)	(30)
Income (loss) before income taxes	19	(10)	150	(27)
Income tax expense (benefit)	2	(9)	36	(151)
Net income (loss)	$ 17	$ (1)	$ 114	$ 124
Net income (loss) per common share
Basic (in dollars per share)	$ 0.16	$ (0.01)	$ 1.05	$ 1.13
Diluted (in dollars per share)	$ 0.15	$ (0.01)	$ 1.01	$ 1.12
Weighted average common shares outstanding
Basic (in shares)	108.9	109.1	108.9	109.3
Diluted (in shares)	113.4	109.1	113.1	110.9
Total recurring
Revenue
Revenue	$ 352	$ 329	$ 1,100	$ 963
Cost of revenue
Cost of revenue	95	96	272	278
Subscription software licenses
Revenue
Revenue	64	52	238	155
Cost of revenue
Cost of revenue	2	6	10	21
Services and other
Revenue
Revenue	288	277	862	808
Cost of revenue
Cost of revenue	93	90	262	257
Perpetual software licenses, hardware and other
Revenue
Revenue	18	25	58	73
Cost of revenue
Cost of revenue	12	13	34	46
Consulting services
Revenue
Revenue	90	100	284	309
Cost of revenue
Cost of revenue	$ 78	$ 91	$ 244	$ 286

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 17	$ (1)	$ 114	$ 124
Other comprehensive income (loss):
Foreign currency translation adjustments	(10)	6	(11)	(11)
Derivatives:
Unrealized gain (loss) on derivatives, before tax	3	3	10	(10)
Unrealized gain (loss) on derivatives, tax portion	(1)	(1)	(3)	2
Unrealized gain (loss) on derivatives, net of tax	2	2	7	(8)
Defined benefit plans:
Defined benefit plan adjustment, before tax	3	3	8	7
Defined benefit plan adjustment, tax portion	(1)	(1)	(2)	(2)
Defined benefit plan adjustment, net of tax	2	2	6	5
Other comprehensive (loss) income	(6)	10	2	(14)
Comprehensive income	$ 11	$ 9	$ 116	$ 110

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 613	$ 529
Accounts receivable, net	290	331
Inventories	17	29
Other current assets	144	155
Total current assets	1,064	1,044
Property and equipment, net	300	339
Right of use assets - operating lease, net	29	38
Goodwill	397	401
Capitalized contract costs, net	99	98
Deferred income taxes	205	222
Other assets	40	51
Total assets	2,134	2,193
Current liabilities
Current portion of long-term debt	75	44
Current portion of finance lease liability	81	75
Current portion of operating lease liability	13	15
Accounts payable	104	50
Payroll and benefits liabilities	137	170
Deferred revenue	464	499
Other current liabilities	81	99
Total current liabilities	955	952
Long-term debt	349	411
Finance lease liability	58	70
Operating lease liability	20	28
Pension and other postemployment plan liabilities	141	152
Long-term deferred revenue	28	38
Deferred tax liabilities	8	6
Other liabilities	118	136
Total liabilities	1,677	1,793
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, 2021 and December 31, 2020, respectively	0	0
Common stock: par value $0.01 per share, 500.0 shares authorized, 108.4 and 108.8 shares issued at September 30, 2021 and December 31, 2020, respectively	1	1
Paid-in capital	1,776	1,656
Accumulated deficit	(1,179)	(1,114)
Accumulated other comprehensive loss	(141)	(143)
Total stockholders’ equity	457	400
Total liabilities and stockholders’ equity	$ 2,134	$ 2,193

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
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)	108,400,000	108,800,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities
Net income (loss) attributable to common stockholders	$ 114	$ 124
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	113	126
Stock-based compensation expense	79	79
Deferred income taxes	10	(152)
Changes in assets and liabilities:
Receivables	41	77
Inventories	12	17
Current payables and accrued expenses	45	(24)
Deferred revenue	(45)	(13)
Other assets and liabilities	(1)	(23)
Net cash provided by operating activities	368	211
Investing activities
Expenditures for property and equipment	(19)	(34)
Additions to capitalized software	(2)	(6)
Net cash used in investing activities	(21)	(40)
Financing activities
Repurchases of common stock	(176)	(75)
Repayments of long-term borrowings	(32)	(19)
Payments of finance leases	(68)	(43)
Other financing activities, net	24	7
Net cash used in financing activities	(252)	(130)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11)	(3)
Increase in cash, cash equivalents and restricted cash	84	38
Cash, cash equivalents and restricted cash at beginning of period	533	496
Cash, cash equivalents and restricted cash at end of period	617	534
Supplemental cash flow disclosure:
Assets acquired under operating lease	9	6
Assets acquired under finance lease	62	58
Annual variable incentive payout settled in equity	17	0
Cash and cash equivalents	613
Restricted cash	4
Total cash, cash equivalents and restricted cash	$ 617	$ 534

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 Loss
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 income (loss)	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 income (loss)	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 income (loss)	(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 income (loss)	(1)			(1)
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)
Shares issued, beginning balance (in shares) at Dec. 31, 2020		108
Stockholders’ equity, beginning balance at Dec. 31, 2020	400	$ 1	1,656	(1,114)	(143)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	53			53
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares)		4
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	52		52
Repurchases of common stock, retired (in shares)		(3)
Repurchases of common stock, retired	(85)			(85)
Pension and postemployment benefit plans, net of tax	2				2
Unrealized gain on derivatives, net of tax	3				3
Currency translation adjustment	(8)				(8)
Shares issued, beginning balance (in shares) at Mar. 31, 2021		109
Stockholders’ equity, ending balance at Mar. 31, 2021	417	$ 1	1,708	(1,146)	(146)
Shares issued, beginning balance (in shares) at Dec. 31, 2020		108
Stockholders’ equity, beginning balance at Dec. 31, 2020	400	$ 1	1,656	(1,114)	(143)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	114
Pension and postemployment benefit plans, net of tax	6
Unrealized gain on derivatives, net of tax	7
Currency translation adjustment	(11)
Shares issued, beginning balance (in shares) at Sep. 30, 2021		108
Stockholders’ equity, ending balance at Sep. 30, 2021	457	$ 1	1,776	(1,179)	(141)
Shares issued, beginning balance (in shares) at Mar. 31, 2021		109
Stockholders’ equity, beginning balance at Mar. 31, 2021	417	$ 1	1,708	(1,146)	(146)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	44			44
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	35		35
Repurchases of common stock, retired	(36)			(36)
Pension and postemployment benefit plans, net of tax	2				2
Unrealized gain on derivatives, net of tax	2				2
Currency translation adjustment	7				7
Shares issued, beginning balance (in shares) at Jun. 30, 2021		109
Stockholders’ equity, ending balance at Jun. 30, 2021	471	$ 1	1,743	(1,138)	(135)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	17			17
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	33		33
Repurchases of common stock, retired (in shares)		(1)
Repurchases of common stock, retired	(58)			(58)
Pension and postemployment benefit plans, net of tax	2				2
Unrealized gain on derivatives, net of tax	2				2
Currency translation adjustment	(10)				(10)
Shares issued, beginning balance (in shares) at Sep. 30, 2021		108
Stockholders’ equity, ending balance at Sep. 30, 2021	$ 457	$ 1	$ 1,776	$ (1,179)	$ (141)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2021
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 2020 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, 2020 (the "2020 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 revised to conform to the current year presentation. At the beginning of the first quarter of 2021, the Company changed its historical presentation for certain components within its revenue and cost categories. To better reflect the strategy and shift in the business, the Company adopted and revised the presentation beginning in the first quarter of 2021, including reclassifying managed services revenue of $28 million and $80 million for the three and nine months ended September 30, 2020 and costs of $21 million and $62 million for the three and nine months ended September 30, 2020 from Recurring to Consulting services. The Company also reclassified third party revenue of $8 million and $25 million for the three and nine months ended September 30, 2020 and costs of $6 million and $19 million for the three and nine months ended September 30, 2020 from Recurring to Perpetual software licenses, hardware and other. This change in presentation does not affect the Company's total revenues, total costs of revenues or overall total gross profit (defined as total revenue less total cost of revenue).

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Reference Rate Reform. In March 2020, the Financial Accounting Standards Board ("FASB") issued new guidance to provide relief to companies that will be impacted by the expected change in benchmark interest rates, as participating banks will no longer be required to submit London Interbank Offered Rate ("LIBOR") quotes by the U.K. 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 condensed consolidated financial statements or related disclosures. Recently Adopted Guidance 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, intra-period 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. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
	Sep. 30, 2021
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 2021 2020 2021 2020 Americas Recurring $ 210 $ 203 $ 661 $ 603 Perpetual software licenses, hardware and other 5 16 16 36 Consulting services 34 42 109 125 Total Americas 249 261 786 764 EMEA Recurring 90 79 277 227 Perpetual software licenses, hardware and other 10 5 30 26 Consulting services 33 31 101 98 Total EMEA 133 115 408 351 APJ Recurring 52 47 162 133 Perpetual software licenses, hardware and other 3 4 12 11 Consulting services 23 27 74 86 Total APJ 78 78 248 230 Total Revenue $ 460 $ 454 $ 1,442 $ 1,345 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 2021 2020 2021 2020 Rental revenue* $ 36 $ 28 $ 123 $ 72 *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, 2021 December 31, 2020 Accounts receivable, net 290 $ 331 Contract assets 12 11 Current deferred revenue 464 499 Long-term deferred revenue 28 38 Revenue recognized during the nine months ended September 30, 2021 from amounts included in deferred revenue at the beginning of the period was $445 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, 2021: in millions Total at September 30, 2021 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,524 $ 1,550 $ 974 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 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, 2020 Capitalized Amortization September 30, 2021 Capitalized contract costs $ 98 $ 35 $ (34) $ 99 in millions December 31, 2019 Capitalized Amortization September 30, 2020 Capitalized contract costs $ 91 $ 23 $ (25) $ 89

Contract Costs

Contract Costs	9 Months Ended
	Sep. 30, 2021
Capitalized Contract Cost [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 2021 2020 2021 2020 Americas Recurring $ 210 $ 203 $ 661 $ 603 Perpetual software licenses, hardware and other 5 16 16 36 Consulting services 34 42 109 125 Total Americas 249 261 786 764 EMEA Recurring 90 79 277 227 Perpetual software licenses, hardware and other 10 5 30 26 Consulting services 33 31 101 98 Total EMEA 133 115 408 351 APJ Recurring 52 47 162 133 Perpetual software licenses, hardware and other 3 4 12 11 Consulting services 23 27 74 86 Total APJ 78 78 248 230 Total Revenue $ 460 $ 454 $ 1,442 $ 1,345 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 2021 2020 2021 2020 Rental revenue* $ 36 $ 28 $ 123 $ 72 *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, 2021 December 31, 2020 Accounts receivable, net 290 $ 331 Contract assets 12 11 Current deferred revenue 464 499 Long-term deferred revenue 28 38 Revenue recognized during the nine months ended September 30, 2021 from amounts included in deferred revenue at the beginning of the period was $445 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, 2021: in millions Total at September 30, 2021 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,524 $ 1,550 $ 974 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 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, 2020 Capitalized Amortization September 30, 2021 Capitalized contract costs $ 98 $ 35 $ (34) $ 99 in millions December 31, 2019 Capitalized Amortization September 30, 2020 Capitalized contract costs $ 91 $ 23 $ (25) $ 89

Supplemental Financial Informat

Supplemental Financial Information	9 Months Ended
	Sep. 30, 2021
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 $ 7 $ 18 Service parts 10 11 Total inventories $ 17 $ 29 Deferred revenue Deferred revenue, current $ 464 $ 499 Long-term deferred revenue 28 38 Total deferred revenue $ 492 $ 537

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
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 expects that a majority of its foreign earnings will be repatriated back to 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 2021 2020 2021 2020 Effective tax rate 10.5 % 90.0 % 24.0 % 559.3 % For the three months ended September 30, 2021, the Company recorded a total of $4 million of net discrete tax benefits, of which $5 million of tax benefit was related to true-up adjustments to reconcile the Company’s 2020 U.S. tax return as completed in the third quarter of 2021 versus the preliminary estimate as booked in its tax provision for the year ended December 31, 2020. In addition, the Company recognized $1 million of incremental tax benefit related to stock-based compensation vesting. These tax benefits were partially offset by $2 million of discrete tax expense related to adjustments to the Company’s accrual for unrecognized tax benefits in accordance with FIN 48. As a result of these discrete items the Company recorded income tax expense of $2 million on a pre-tax income of $19 million for the three months ended September 30, 2021, resulting in an effective income tax rate of 10.5%. For the nine months ended September 30, 2021, the Company recorded $7 million of net discrete tax benefits, of which $5 million of tax benefit was related to the true-up adjustments to reconcile the Company’s 2020 U.S. tax return as completed in the third quarter of 2021 versus the preliminary estimate as booked in its tax provision for the year ended December 31, 2020. In addition, the Company recognized $4 million of incremental tax benefit related to stock-based compensation vesting and $1 million incremental tax benefit from true-ups to its forecasted marginal annual rate for 2021 based on revised full-year forecasted earnings. These tax benefits were partially offset by $3 million of discrete tax expense related to adjustments to the Company’s accrual for unrecognized tax benefits in accordance with FIN 48. The Company recorded income tax expense of $36 million on a pre-tax net income of $150 million for the nine months ended September 30, 2021, resulting in an effective income tax rate of 24.0%. 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%.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2021
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 $425 million as of September 30, 2021. 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 $ 80 $ 90 Net contract notional amount of foreign exchange forward contracts $ 46 $ 29 Contract notional amount of interest rate swap $ 425 $ 456 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 exchange and interest 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.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings. In the ordinary 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. We are not currently a party to any litigation, nor are we aware of any pending or threatened litigation against us that we believe would materially affect our business, operating results, financial condition or cash flows, other than the following: On June 19, 2018, the Company and certain of its subsidiaries filed a lawsuit in the U.S. District Court for the Northern District of California against SAP SE, SAP America, Inc., and SAP Labs, LLC (collectively, "SAP"). In the lawsuit, the Company alleges, among other things, that SAP misappropriated certain of the Company’s trade secrets within the Company’s enterprise data analytics and warehousing products and used them to help develop, improve, introduce, and sell one or more competing products. The Company further alleges that SAP has employed anticompetitive practices using its substantial market position in the enterprise resource planning applications market to pressure the Company’s customers and prospective customers to use SAP’s one or more competing products and reduce or eliminate customers' and prospective customers' use of the Company's offerings. The Company may seek an injunction barring SAP’s alleged conduct, monetary damages, and other available legal and equitable relief. In July 2019, SAP filed patent infringement counterclaims against Teradata based on five of SAP’s U.S. patents (one of which has since been dismissed from the suit), and the Company is vigorously defending against these counterclaims. On August 31, 2020, the Company filed a second lawsuit against SAP in the U.S. District Court for the Northern District of California. In this lawsuit as it currently stands, Teradata alleges infringement by SAP of four of Teradata’s U.S. patents and seeks an injunction barring SAP from further infringement, monetary damages, and other available legal and equitable relief. On February 16, 2021, SAP filed additional patent infringement counterclaims against Teradata based on six additional U.S. patents. On the same day, SAP also filed a lawsuit in Germany for infringement of a single German patent. Currently, it is not possible to determine the likelihood of a loss or a reasonably estimated range of loss, if any, pertaining to any of SAP’s patent counterclaims in the United States or its German lawsuit. Other Contingencies. 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 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 divesture 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, 2021 and December 31, 2020. 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 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, 2021
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 contract assets and liabilities at September 30, 2021 and December 31, 2020 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, 2021 and 2020. 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, 2021 and December 31, 2020 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, 2021 $ 207 $ 207 $ — $ — Money market funds at December 31, 2020 $ 16 $ 16 $ — $ — Liabilities Interest rate swap at September 30, 2021 $ 17 $ — $ 17 $ — Interest rate swap at December 31, 2020 $ 27 $ — $ 27 $ —

Debt

Debt	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Debt	Debt In 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, 2021, 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, 2021. 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 June 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, 2021, the term loan principal outstanding was $425 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, 2021, the all-in fixed rate is 4.36%. The Company was in compliance with all covenants under the term loan as of September 30, 2021. 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, 2021
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 September 30, In millions, except per share amounts 2021 2020 2021 2020 Net income (loss) attributable to common stockholders $ 17 $ (1) $ 114 $ 124 Weighted average outstanding shares of common stock 108.9 109.1 108.9 109.3 Dilutive effect of employee stock options, restricted stock and other stock awards 4.5 — 4.2 1.6 Common stock and common stock equivalents 113.4 109.1 113.1 110.9 Net income (loss) per share: Basic $ 0.16 $ (0.01) $ 1.05 $ 1.13 Diluted $ 0.15 $ (0.01) $ 1.01 $ 1.12 For the three months ended September 30, 2020, due to the net loss attributable to Teradata common stockholders, potential shares that would cause dilution, such as shares resulting from 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.

Segment and Other Supplemental

Segment and Other Supplemental Information	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Segment and Other Supplemental Information	Segment and Other Supplemental InformationTeradata 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 the Company's 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 September 30, In millions 2021 2020 2021 2020 Segment revenue Americas $ 249 $ 261 $ 786 $ 764 EMEA 133 115 408 351 APJ 78 78 248 230 Total revenue 460 454 1,442 1,345 Segment gross profit Americas 157 165 524 470 EMEA 81 69 249 197 APJ 44 43 142 114 Total segment gross profit 282 277 915 781 Stock-based compensation costs 4 5 12 13 Acquisition, integration, reorganization and transformation-related costs 3 12 11 16 Amortization of capitalized software costs — 6 — 17 Total gross profit 275 254 892 735 Selling, general and administrative expenses 166 163 476 486 Research and development expenses 79 90 235 246 Income from operations $ 30 $ 1 $ 181 $ 3

Reorganization and Business Tra

Reorganization and Business Transformation	9 Months Ended
	Sep. 30, 2021
Restructuring and Related Activities [Abstract]
Reorganization and Business Transformation	Reorganization and Business Transformation 2020 Workforce Reduction and Real Estate Rationalization Measures 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. 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. 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 costs relating to these workforce reduction and real estate rationalization measures 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 $54 to $58 million, consisting primarily of the following: • $13 to $14 million for employee severance and other employee-related costs, which is separate from the $28 to $29 million for costs related to the VSP, • $6 to $7 million charge for facilities lease related costs, and • $7 to $8 million for outside service, legal and other associated costs. The Company incurred $13 million of these costs and charges in the first nine months of 2021 and $42 million in 2020 with the remaining costs and charges expected to be incurred in the fourth quarter of 2021 upon completion of these actions. Cash expenditures related to these actions are estimated at approximately $59 to $63 million. Approximately $12 to $13 million of the cash expenditures relate to cash payments to international employees, which are not expected to have a material impact on the Company's Condensed Consolidated Statements of Income 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. The Company recognized costs of $13 million ($10 million cash and $3 million non-cash) in the first nine months of 2021 for the VSP, employee separation benefits, facilities lease related costs, outside service, legal and other associated costs. Certain benefits are being expensed over the time period that the employees are required to work to earn them to the extent the required service period extends beyond the nominal period. $4 million of these costs were recorded to costs of revenue, $6 million were recorded to selling, general and administrative expenses and $3 million were recorded to research and development expenses. There was no impact to the segment gross profit. Cash paid related to the actions described above was $35 million in the first nine months of 2021 and $23 million in 2020. Not included in the table below are approximately $9 million in the first nine months of 2021 and $2 million in 2020 of cash payments for international employees, which did not have a material impact on the Condensed Consolidated Statements of Income. The 2021 activity and the reserves related to these workforce reduction and real estate rationalization measures are as follows: In millions Balance at December 31, 2020 Expense accruals Cash payments Balance at September 30, 2021 VSP $ 16 $ 3 $ (18) $ 1 Employee severance and other employee-related costs 2 4 (5) 1 Facilities lease related costs, outside service, legal and other associated costs — 3 (3) — Total $ 18 $ 10 $ (26) $ 2 In addition, the Company incurred non-cash costs not reflected in the table above of $1 million in the first nine months of 2021 and $2 million in 2020 for stock-based compensation for accelerated vesting tied to the VSP and $2 million in 2021 and 2020 for accelerated amortization of right-of-use assets and fixed assets associated with the termination of leases relating to certain of the Company’s offices globally. The remaining lease liability is included in our operating lease obligations as of September 30, 2021 and is not included in the table above.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Reference Rate Reform. In March 2020, the Financial Accounting Standards Board ("FASB") issued new guidance to provide relief to companies that will be impacted by the expected change in benchmark interest rates, as participating banks will no longer be required to submit London Interbank Offered Rate ("LIBOR") quotes by the U.K. 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 condensed consolidated financial statements or related disclosures. Recently Adopted Guidance 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, intra-period 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. We adopted the guidance in the first quarter of 2021. The adoption did not have a material impact on our condensed consolidated financial statements or related disclosures.
Revenue from Contract with Customer	Contract CostsThe 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 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.
Fair Value Measurement	Fair Value MeasurementsFair 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.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
	Sep. 30, 2021
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 2021 2020 2021 2020 Americas Recurring $ 210 $ 203 $ 661 $ 603 Perpetual software licenses, hardware and other 5 16 16 36 Consulting services 34 42 109 125 Total Americas 249 261 786 764 EMEA Recurring 90 79 277 227 Perpetual software licenses, hardware and other 10 5 30 26 Consulting services 33 31 101 98 Total EMEA 133 115 408 351 APJ Recurring 52 47 162 133 Perpetual software licenses, hardware and other 3 4 12 11 Consulting services 23 27 74 86 Total APJ 78 78 248 230 Total Revenue $ 460 $ 454 $ 1,442 $ 1,345
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 2021 2020 2021 2020 Rental revenue* $ 36 $ 28 $ 123 $ 72 *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, 2021 December 31, 2020 Accounts receivable, net 290 $ 331 Contract assets 12 11 Current deferred revenue 464 499 Long-term deferred revenue 28 38
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, 2021: in millions Total at September 30, 2021 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,524 $ 1,550 $ 974

Contract Costs (Tables)

Contract Costs (Tables)	9 Months Ended
	Sep. 30, 2021
Capitalized Contract Cost [Abstract]
Schedule of Activity Related to Capitalized Contract Cost	The following table identifies the activity relating to capitalized contract costs: in millions December 31, 2020 Capitalized Amortization September 30, 2021 Capitalized contract costs $ 98 $ 35 $ (34) $ 99 in millions December 31, 2019 Capitalized Amortization September 30, 2020 Capitalized contract costs $ 91 $ 23 $ (25) $ 89

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Supplemental Financial Information	As of In millions September 30, December 31, Inventories Finished goods $ 7 $ 18 Service parts 10 11 Total inventories $ 17 $ 29 Deferred revenue Deferred revenue, current $ 464 $ 499 Long-term deferred revenue 28 38 Total deferred revenue $ 492 $ 537

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2021
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 2021 2020 2021 2020 Effective tax rate 10.5 % 90.0 % 24.0 % 559.3 %

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2021
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 $ 80 $ 90 Net contract notional amount of foreign exchange forward contracts $ 46 $ 29 Contract notional amount of interest rate swap $ 425 $ 456

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 and December 31, 2020 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, 2021 $ 207 $ 207 $ — $ — Money market funds at December 31, 2020 $ 16 $ 16 $ — $ — Liabilities Interest rate swap at September 30, 2021 $ 17 $ — $ 17 $ — Interest rate swap at December 31, 2020 $ 27 $ — $ 27 $ —

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2021
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 September 30, In millions, except per share amounts 2021 2020 2021 2020 Net income (loss) attributable to common stockholders $ 17 $ (1) $ 114 $ 124 Weighted average outstanding shares of common stock 108.9 109.1 108.9 109.3 Dilutive effect of employee stock options, restricted stock and other stock awards 4.5 — 4.2 1.6 Common stock and common stock equivalents 113.4 109.1 113.1 110.9 Net income (loss) per share: Basic $ 0.16 $ (0.01) $ 1.05 $ 1.13 Diluted $ 0.15 $ (0.01) $ 1.01 $ 1.12

Segment and Other Supplementa_2

Segment and Other Supplemental Information (Tables)	9 Months Ended
	Sep. 30, 2021
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 September 30, In millions 2021 2020 2021 2020 Segment revenue Americas $ 249 $ 261 $ 786 $ 764 EMEA 133 115 408 351 APJ 78 78 248 230 Total revenue 460 454 1,442 1,345 Segment gross profit Americas 157 165 524 470 EMEA 81 69 249 197 APJ 44 43 142 114 Total segment gross profit 282 277 915 781 Stock-based compensation costs 4 5 12 13 Acquisition, integration, reorganization and transformation-related costs 3 12 11 16 Amortization of capitalized software costs — 6 — 17 Total gross profit 275 254 892 735 Selling, general and administrative expenses 166 163 476 486 Research and development expenses 79 90 235 246 Income from operations $ 30 $ 1 $ 181 $ 3

Reorganization and Business T_2

Reorganization and Business Transformation (Tables)	9 Months Ended
	Sep. 30, 2021
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The 2021 activity and the reserves related to these workforce reduction and real estate rationalization measures are as follows: In millions Balance at December 31, 2020 Expense accruals Cash payments Balance at September 30, 2021 VSP $ 16 $ 3 $ (18) $ 1 Employee severance and other employee-related costs 2 4 (5) 1 Facilities lease related costs, outside service, legal and other associated costs — 3 (3) — Total $ 18 $ 10 $ (26) $ 2

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reclassification [Line Items]
Revenue	$ 460	$ 454	$ 1,442	$ 1,345
Cost of revenue	$ 185	200	$ 550	610
Reclassification Adjustment | Reclassification, from Recurring Services to Consulting Services
Reclassification [Line Items]
Revenue		28		80
Cost of revenue		21		62
Reclassification Adjustment | Reclassification, from Recurring Services to Perpetual Software Hardware and Other
Reclassification [Line Items]
Revenue		8		25
Cost of revenue		$ 6		$ 19

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 460	$ 454	$ 1,442	$ 1,345
Americas
Disaggregation of Revenue [Line Items]
Revenue	249	261	786	764
EMEA
Disaggregation of Revenue [Line Items]
Revenue	133	115	408	351
APJ
Disaggregation of Revenue [Line Items]
Revenue	78	78	248	230
Recurring
Disaggregation of Revenue [Line Items]
Revenue	352	329	1,100	963
Recurring | Americas
Disaggregation of Revenue [Line Items]
Revenue	210	203	661	603
Recurring | EMEA
Disaggregation of Revenue [Line Items]
Revenue	90	79	277	227
Recurring | APJ
Disaggregation of Revenue [Line Items]
Revenue	52	47	162	133
Perpetual software licenses, hardware and other
Disaggregation of Revenue [Line Items]
Revenue	18	25	58	73
Perpetual software licenses, hardware and other | Americas
Disaggregation of Revenue [Line Items]
Revenue	5	16	16	36
Perpetual software licenses, hardware and other | EMEA
Disaggregation of Revenue [Line Items]
Revenue	10	5	30	26
Perpetual software licenses, hardware and other | APJ
Disaggregation of Revenue [Line Items]
Revenue	3	4	12	11
Consulting services
Disaggregation of Revenue [Line Items]
Revenue	90	100	284	309
Consulting services | Americas
Disaggregation of Revenue [Line Items]
Revenue	34	42	109	125
Consulting services | EMEA
Disaggregation of Revenue [Line Items]
Revenue	33	31	101	98
Consulting services | APJ
Disaggregation of Revenue [Line Items]
Revenue	$ 23	$ 27	$ 74	$ 86

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Rental revenue	$ 36	$ 28	$ 123	$ 72

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 290	$ 331
Contract assets	12	11
Current deferred revenue	464	499
Long-term deferred revenue	$ 28	$ 38

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Deferred revenue, revenue recognized	$ 445
Remaining performance obligation, amount of customer only general cancellation	1,423
Remaining performance obligation, amount of non-cancelable contracts	$ 481

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 2,524
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 1,550
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]: 2022-10-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 974
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period

Contract Costs - Narrative (Det

Contract Costs - Narrative (Details)	Sep. 30, 2021
Capitalized Contract Cost [Abstract]
Capitalized contract cost, amortization period	4 years

Contract Costs - Schedule of Ac

Contract Costs - Schedule of Activity Related to Capitalized Contract Cost (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Capitalized Contract Cost, Net [Roll Forward]
Capitalized contract cost, net at period start	$ 98	$ 91
Capitalized	35	23
Amortization	(34)	(25)
Capitalized contract cost, net at period end	$ 99	$ 89

Supplemental Financial Inform_3

Supplemental Financial Information (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Inventories
Finished goods	$ 7	$ 18
Service parts	10	11
Total inventories	17	29
Deferred revenue
Current deferred revenue	464	499
Long-term deferred revenue	28	38
Total deferred revenue	$ 492	$ 537

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Tax Rate (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate (percentage)	10.50%	90.00%	24.00%	559.30%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Net discrete tax benefits	$ 4			$ (7)
True up adjustment to prior year tax provision	5			5
Tax expense related to equity compensation vesting	1			4
Discrete tax expense related to an uncertain tax position	2			3
Income tax expense (benefit)	2	$ (9)		36	$ (151)
Pre-tax income (loss)	$ 19	$ (10)		$ 150	$ (27)
Effective tax rate (percentage)	10.50%	90.00%		24.00%	559.30%
True-ups of forecasted marginal rate expense (benefit)				$ (1)
Discrete income tax expense (benefit)		$ (9)	$ (152)		$ (122)
Income tax expense (benefit), marginal tax rate adjustment					$ 29
Scenario, Forecast
Operating Loss Carryforwards [Line Items]
Effective tax rate (percentage)						27.00%

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Narrative (Detail) - Interest Rate Swap - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2018	Sep. 30, 2021	Dec. 31, 2020
Derivative
Derivative, term of contract	5 years
Derivative, contract notional amount	$ 500	$ 425	$ 456

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020	Jun. 30, 2018
Foreign Exchange Contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 80	$ 90
Net contract notional amount of foreign exchange forward contracts	46	29
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 425	$ 456	$ 500

Commitment and Contingencies (D

Commitment and Contingencies (Details) - patent	Aug. 31, 2021	Feb. 16, 2021	Jul. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Loss contingency on patents allegedly infringed upon (in patents)		6	5
Patents found not infringed upon (in patents)			1
Gain contingency on patents allegedly infringed upon (in patents)	4

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - Interest Rate Swap - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2018	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, term of contract	5 years
Derivative, contract notional amount	$ 500	$ 425	$ 456

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 207	$ 16
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	207	16
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	17	27
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	17	27
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 ($)renewal	Sep. 30, 2021USD ($)
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
Number of renewals | renewal	2
Renewal term	1 year
Borrowings outstanding under the credit facility		0
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		$ 425,000,000
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 - 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, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income (loss) attributable to common stockholders	$ 17	$ 44	$ 53	$ (1)	$ (43)	$ 168	$ 114	$ 124
Weighted average outstanding shares of common stock (in shares)	108.9			109.1			108.9	109.3
Dilutive effect of employee stock options, restricted stock and other stock awards (in shares)	4.5			0			4.2	1.6
Common stock and common stock equivalents (in shares)	113.4			109.1			113.1	110.9
Net income (loss) per share:
Basic (in dollars per share)	$ 0.16			$ (0.01)			$ 1.05	$ 1.13
Diluted (in dollars per share)	$ 0.15			$ (0.01)			$ 1.01	$ 1.12

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Weighted average number of shares outstanding, diluted and anti-dilutive (in shares)		111.1
Antidilutive options to purchase that were not included in the computation of diluted earnings per share (in shares)	0.2	2.1	0.4	2.1

Segment and Other Supplementa_3

Segment and Other Supplemental Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2021segment
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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information
Segment revenue	$ 460	$ 454	$ 1,442	$ 1,345
Gross profit	275	254	892	735
Selling, general and administrative expenses	166	163	476	486
Research and development expenses	79	90	235	246
Income from operations	30	1	181	3
Americas
Segment Reporting Information
Segment revenue	249	261	786	764
EMEA
Segment Reporting Information
Segment revenue	133	115	408	351
APJ
Segment Reporting Information
Segment revenue	78	78	248	230
Operating segments
Segment Reporting Information
Gross profit	282	277	915	781
Operating segments | Americas
Segment Reporting Information
Gross profit	157	165	524	470
Operating segments | EMEA
Segment Reporting Information
Gross profit	81	69	249	197
Operating segments | APJ
Segment Reporting Information
Gross profit	44	43	142	114
Segment reconciling items
Segment Reporting Information
Stock-based compensation costs	4	5	12	13
Acquisition, integration, reorganization and transformation-related costs	3	12	11	16
Amortization of capitalized software costs	$ 0	$ 6	$ 0	$ 17

Reorganization and Business T_3

Reorganization and Business Transformation - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended	14 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Dec. 31, 2020	Dec. 31, 2021	Nov. 02, 2020
Restructuring Cost and Reserve [Line Items]
Cash payments for restructuring		$ 35	$ 23
Accelerated depreciation		2	2
International | Employee
Restructuring Cost and Reserve [Line Items]
Cash payment for international employees		9	2
Voluntary Separation Program
Restructuring Cost and Reserve [Line Items]
Restructuring and related activities, employee minimum age to qualify	55 years
Restructuring and related activities, employee service term	10 years
Restructuring costs		13
Restructuring costs, cash-settled		10
Restructuring costs, noncash		3
Stock-based compensation costs		1	2
Voluntary Separation Program | Cost of Revenue
Restructuring Cost and Reserve [Line Items]
Restructuring costs		4
Voluntary Separation Program | Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring costs		6
Voluntary Separation Program | Research and Development Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring costs		3
Voluntary Separation Program | Employee severance and other employee-related costs | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					$ 28
Voluntary Separation Program | Employee severance and other employee-related costs | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					29
Workforce Reduction and Real Estate Rationalization Measures
Restructuring Cost and Reserve [Line Items]
Restructuring costs incurred		$ 13	$ 42
Workforce Reduction and Real Estate Rationalization Measures | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					54
Workforce Reduction and Real Estate Rationalization Measures | Minimum | Scenario, Forecast
Restructuring Cost and Reserve [Line Items]
Cash payments for restructuring				$ 59
Workforce Reduction and Real Estate Rationalization Measures | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					58
Workforce Reduction and Real Estate Rationalization Measures | Maximum | Scenario, Forecast
Restructuring Cost and Reserve [Line Items]
Cash payments for restructuring				63
Workforce Reduction and Real Estate Rationalization Measures | Employee severance and other employee-related costs | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					13
Workforce Reduction and Real Estate Rationalization Measures | Employee severance and other employee-related costs | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					14
Workforce Reduction and Real Estate Rationalization Measures | Facilities Lease Related Cost | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					6
Workforce Reduction and Real Estate Rationalization Measures | Facilities Lease Related Cost | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					7
Workforce Reduction and Real Estate Rationalization Measures | Outside Services, Legal and Other Associated Costs | Minimum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					7
Workforce Reduction and Real Estate Rationalization Measures | Outside Services, Legal and Other Associated Costs | Maximum
Restructuring Cost and Reserve [Line Items]
Estimated reorganization costs and charges					$ 8
Workforce Reduction and Real Estate Rationalization Measures | International | Employee | Minimum | Scenario, Forecast
Restructuring Cost and Reserve [Line Items]
Cash payments for restructuring				12
Workforce Reduction and Real Estate Rationalization Measures | International | Employee | Maximum | Scenario, Forecast
Restructuring Cost and Reserve [Line Items]
Cash payments for restructuring				$ 13

Reorganization and Business T_4

Reorganization and Business Transformation - Costs Incurred For Reorganization Plan (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
2020 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Balance at December 31, 2020	$ 18
Expense accruals	10
Cash payments	(26)
Balance at September 30, 2021	2
Voluntary Separation Program
Restructuring Cost and Reserve [Line Items]
Balance at December 31, 2020	16
Expense accruals	3
Cash payments	(18)
Balance at September 30, 2021	1
Workforce Reduction and Real Estate Rationalization Measures | Employee severance and other employee-related costs
Restructuring Cost and Reserve [Line Items]
Balance at December 31, 2020	2
Expense accruals	4
Cash payments	(5)
Balance at September 30, 2021	1
Workforce Reduction and Real Estate Rationalization Measures | Facilities lease related costs, outside service, legal and other associated costs
Restructuring Cost and Reserve [Line Items]
Balance at December 31, 2020	0
Expense accruals	3
Cash payments	(3)
Balance at September 30, 2021	$ 0

Uncategorized Items - tdc-20210

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 4,000,000