Cover
Cover - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.4 | ||
Entity Common Stock, Shares Outstanding (in shares) | 97.4 | ||
Documents Incorporated by Reference | Portions of the registrant’s Notice of Annual Meeting of Stockholders and Proxy Statement, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days after registrant’s fiscal year end of December 31, 2023 are incorporated herein by reference. | ||
Entity Central Index Key | 0000816761 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 238 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Revenue | $ 1,833 | $ 1,795 | $ 1,917 |
Cost of revenue | |||
Cost of revenue | 718 | 714 | 731 |
Gross profit | 1,115 | 1,081 | 1,186 |
Operating expenses | |||
Selling, general and administrative expenses | 635 | 650 | 646 |
Research and development expenses | 294 | 313 | 309 |
Total operating expenses | 929 | 963 | 955 |
Income from operations | 186 | 118 | 231 |
Other expense, net | |||
Interest expense | (30) | (24) | (26) |
Interest income | 25 | 15 | 6 |
Other expense | (64) | (42) | (19) |
Total other expense, net | (69) | (51) | (39) |
Total income before income taxes | 117 | 67 | 192 |
Income tax expense | 55 | 34 | 45 |
Net income | $ 62 | $ 33 | $ 147 |
Net income per weighted average common share | |||
Basic (in usd per share) | $ 0.62 | $ 0.32 | $ 1.35 |
Diluted (in usd per share) | $ 0.61 | $ 0.31 | $ 1.30 |
Weighted average common shares outstanding | |||
Basic (in shares) | 99.8 | 103.2 | 108.6 |
Diluted (in shares) | 102.4 | 105.8 | 112.9 |
Total recurring | |||
Revenue | |||
Revenue | $ 1,492 | $ 1,419 | $ 1,464 |
Cost of revenue | |||
Cost of revenue | 418 | 397 | 365 |
Subscription software licenses | |||
Revenue | |||
Revenue | 310 | 289 | 303 |
Cost of revenue | |||
Cost of revenue | 20 | 22 | 12 |
Services and other | |||
Revenue | |||
Revenue | 1,182 | 1,130 | 1,161 |
Cost of revenue | |||
Cost of revenue | 398 | 375 | 353 |
Perpetual software licenses, hardware and other | |||
Revenue | |||
Revenue | 45 | 65 | 77 |
Cost of revenue | |||
Cost of revenue | 38 | 47 | 43 |
Consulting services | |||
Revenue | |||
Revenue | 296 | 311 | 376 |
Cost of revenue | |||
Cost of revenue | $ 262 | $ 270 | $ 323 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 62 | $ 33 | $ 147 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 6 | (30) | (12) |
Unrealized loss on cross-currency net investment hedge, before tax | (7) | (1) | 0 |
Unrealized loss on cross-currency net investment hedge, tax portion | 2 | 0 | 0 |
Total currency translation adjustments | 1 | (31) | (12) |
Derivatives: | |||
Unrealized (loss) gain on derivatives, before tax | (5) | 25 | 14 |
Unrealized (loss) gain on derivatives, tax portion | 1 | (6) | (3) |
Unrealized (loss) gain on derivatives, net of tax | (4) | 19 | 11 |
Defined benefit plans: | |||
Reclassification of loss to net income | 7 | 9 | 11 |
Defined benefit plan adjustment, before tax | (17) | 33 | (2) |
Defined benefit plan adjustment, tax portion | 3 | (11) | (3) |
Defined benefit plan adjustment, net of tax | (7) | 31 | 6 |
Other comprehensive (loss) income | (10) | 19 | 5 |
Comprehensive income | $ 52 | $ 52 | $ 152 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 486 | $ 569 |
Accounts receivable, net | 286 | 364 |
Inventories | 13 | 8 |
Other current assets | 84 | 87 |
Total current assets | 869 | 1,028 |
Property and equipment, net | 239 | 244 |
Right of use assets - operating lease, net | 9 | 13 |
Goodwill | 398 | 390 |
Capitalized contract costs, net | 68 | 92 |
Deferred income taxes | 221 | 213 |
Other assets | 69 | 42 |
Total assets | 1,873 | 2,022 |
Current liabilities | ||
Current portion of long-term debt | 19 | 0 |
Current portion of finance lease liability | 66 | 67 |
Current portion of operating lease liability | 6 | 8 |
Accounts payable | 100 | 94 |
Payroll and benefits liabilities | 130 | 137 |
Deferred revenue | 570 | 589 |
Other current liabilities | 105 | 112 |
Total current liabilities | 996 | 1,007 |
Long-term debt | 480 | 498 |
Finance lease liability | 63 | 54 |
Operating lease liability | 6 | 10 |
Pension and other postemployment plan liabilities | 102 | 101 |
Long-term deferred revenue | 22 | 8 |
Deferred tax liabilities | 8 | 7 |
Other liabilities | 61 | 79 |
Total liabilities | 1,738 | 1,764 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity | ||
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at December 31, 2023 and 2022, respectively | 0 | 0 |
Common stock: par value $0.01 per share, 500.0 shares authorized, 97.9 and 101.1 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1 | 1 |
Paid-in capital | 2,074 | 1,941 |
Accumulated deficit | (1,811) | (1,565) |
Accumulated other comprehensive loss | (129) | (119) |
Total stockholders’ equity | 135 | 258 |
Total liabilities and stockholders’ equity | $ 1,873 | $ 2,022 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100 | 100 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500 | 500 |
Common stock, shares issued (in shares) | 97.9 | 101.1 |
Common stock, shares outstanding (in shares) | 97.9 | 101.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net income | $ 62 | $ 33 | $ 147 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 116 | 134 | 149 |
Stock-based compensation expense | 126 | 126 | 112 |
Deferred income taxes | (11) | (26) | 14 |
Blue chip swap losses | 13 | 0 | 0 |
Changes in assets and liabilities: | |||
Receivables | 78 | (28) | (5) |
Inventories | (5) | 18 | 3 |
Account payables and accrued expenses | 7 | 35 | 17 |
Deferred revenue | (5) | 18 | 42 |
Other assets and liabilities | (6) | 109 | (16) |
Net cash provided by operating activities | 375 | 419 | 463 |
Investing activities | |||
Expenditures for property and equipment | (19) | (14) | (28) |
Additions to capitalized software | (1) | (2) | (3) |
Business acquisitions, other investing activities and proceeds on Blue Chip Swap, net of purchases | (29) | (2) | 0 |
Net cash used in investing activities | (49) | (18) | (31) |
Financing activities | |||
Repurchases of common stock | (308) | (387) | (244) |
Proceeds from long-term borrowings | 0 | 500 | 0 |
Repayments of long-term borrowings | 0 | (413) | (44) |
Payments of finance leases | (82) | (86) | (92) |
Other financing activities, net | 7 | 5 | 24 |
Net cash used in financing activities | (383) | (381) | (356) |
Effect of exchange rate changes on cash and cash equivalents | (28) | (44) | (14) |
(Decrease) increase in cash, cash equivalents and restricted cash | (85) | (24) | 62 |
Cash, cash equivalents and restricted cash at beginning of year | 571 | 595 | 533 |
Cash, cash equivalents and restricted cash at end of year | 486 | 571 | 595 |
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets | |||
Cash and cash equivalents | 486 | 569 | 592 |
Restricted cash | 0 | 2 | 3 |
Total cash, cash equivalents and restricted cash | 486 | 571 | 595 |
Supplemental cash flow disclosure: | |||
Assets acquired by finance lease | 90 | 78 | 76 |
Assets acquired by operating lease | 6 | 4 | 9 |
Annual variable incentive payout settled in equity | 0 | 0 | 17 |
Cash paid during the year for: | |||
Income taxes, net | 65 | (18) | 44 |
Interest | $ 30 | $ 23 | $ 26 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning balance (in shares) at Dec. 31, 2020 | 108 | ||||
Beginning balance at Dec. 31, 2020 | $ 400 | $ 1 | $ 1,656 | $ (1,114) | $ (143) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 147 | 147 | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares) | 5 | ||||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 152 | 152 | |||
Repurchases of common stock, retired (in shares) | (6) | ||||
Repurchases of common stock, retired | (244) | (244) | |||
Pension and postemployment benefit plans, net of tax | 6 | 6 | |||
Unrealized gain (loss) on derivatives, net of tax | 11 | 11 | |||
Currency translation adjustment | (12) | (12) | |||
Ending balance (in shares) at Dec. 31, 2021 | 107 | ||||
Ending balance at Dec. 31, 2021 | 460 | $ 1 | 1,808 | (1,211) | (138) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 33 | 33 | |||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares) | 3 | ||||
Employee stock compensation, employee stock purchase programs and option exercises, net of tax | 133 | 133 | |||
Repurchases of common stock, retired (in shares) | (9) | ||||
Repurchases of common stock, retired | (387) | (387) | |||
Pension and postemployment benefit plans, net of tax | 31 | 31 | |||
Unrealized gain (loss) on derivatives, net of tax | 19 | 19 | |||
Currency translation adjustment | $ (31) | (31) | |||
Ending balance (in shares) at Dec. 31, 2022 | 101.1 | 101 | |||
Ending balance at Dec. 31, 2022 | $ 258 | $ 1 | 1,941 | (1,565) | (119) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 62 | 62 | |||
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 | 133 | 133 | |||
Repurchases of common stock, retired (in shares) | (7) | ||||
Repurchases of common stock, retired | (308) | (308) | |||
Pension and postemployment benefit plans, net of tax | (7) | (7) | |||
Unrealized gain (loss) on derivatives, net of tax | (4) | (4) | |||
Currency translation adjustment | $ 1 | 1 | |||
Ending balance (in shares) at Dec. 31, 2023 | 97.9 | 98 | |||
Ending balance at Dec. 31, 2023 | $ 135 | $ 1 | $ 2,074 | $ (1,811) | $ (129) |
Description of Business, Basis
Description of Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Significant Accounting Policies | Description of Business, Basis of Presentation and Significant Accounting Policies Description of the Business. Teradata Corporation ("we," "us," "Teradata," or the "Company") is focused on helping organizations improve business performance, enrich customer experiences, and integrate data across the enterprise. As such, we strive to innovate and deliver trusted solutions for complex data and analytics challenges. That's why we built our comprehensive open and connected cloud analytics and data platform for artificial intelligence ("AI"). Our Teradata Vantage platform is designed to help enterprises solve business problems and deliver business breakthroughs with its capabilities to provide harmonized data, trusted AI, and faster innovation. Basis of Presentation. The financial statements are presented on a consolidated basis and include the accounts of the Company and its wholly-owned subsidiaries in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Recurring revenue consists of our on-premises and cloud subscriptions, which have varying term lengths from one month to five years. Recurring revenue is intended to depict the revenue recognition model for these subscription transactions. The recurrence of these revenue streams in future periods depends on several factors, including contractual periods and customers' renewal decisions. Perpetual software licenses, hardware and other revenue consists of hardware and perpetual software licenses recognized upfront and revenue related to third party products. Consulting services revenue consists of consulting, implementation and installation services. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. On an ongoing basis, management evaluates these estimates and judgments, including those related to allowances for doubtful accounts, the valuation of inventory to net realizable value, impairments of goodwill and other intangibles, stock-based compensation, leases, pension and other postemployment benefits, and income taxes and any changes will be accounted for on a prospective basis. Actual results could differ from those estimates. Revenue Recognition The Company adopted Financial Accounting Standards Board ("FASB") Standards Update No. 2014-09, Revenue from Contracts with Customers ("Topic 606") as of January 1, 2018 for all contracts not completed as of the date of adoption. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company performs the following five steps: 1. identify the contract with a customer, 2. identify the performance obligations in the contract, 3. determine the transaction price, 4. allocate the transaction price to the performance obligations in the contract, and 5. recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the above five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for goods or services it transfers to the customer. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience, published credit, and financial information pertaining to the customer. Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales, value add, and other taxes the Company collects concurrent with revenue-producing activities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a good or service to a customer. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur once the uncertainty is resolved. The Company uses the expected value method or the most likely amount method depending on the nature of the variable consideration. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates in the period such variances become known. Typically, the amount of variable consideration is not material. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. The Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct within the context of the contract. If these criteria are not met, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Revenue is then recognized either at a point in time or over time depending on our evaluation of when the customer obtains control of the promised goods or services. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue recorded in a given period. In addition, the Company has developed assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. The Company determines the standalone selling price for a good or service by considering multiple factors including, geographies, market conditions, product life cycles, competitive landscape, internal costs, gross margin objectives, purchase volumes and pricing practices. The Company reviews the standalone selling price for each of its performance obligations on a periodic basis and updates it, when appropriate, to ensure that the practices employed reflect the Company’s recent pricing experience. The Company maintains internal controls over the establishment and updates of these estimates, which includes review and approval by the Company’s management. Teradata delivers its platform and services primarily through direct sales channels, as well as through other independent software vendors and distributors and value-added resellers. Standard payment terms may vary based on the country in which the contract is executed, but are generally between 30 days and 90 days. The following is a description of the principal activities and performance obligations from which the Company generates its revenue: • Subscription software licenses, services and other - The Company sells on-premises and cloud subscriptions to its customers through its subscription licenses, cloud and hardware rental offerings. Teradata’s on-premises subscription licenses include a right-to-use license and revenue is recognized upfront at a point in time unless the customer has a contractual right to cancel, where revenue is recognized period-to-period based on the cancellation terms. Subscription licenses are reported within the subscription software licenses caption on the Consolidated Statements of Income. The subscription software license support and unspecified software license upgrade rights on a when-and-if-available basis that are included in the subscription are reported within the recurring services and other caption and recognized ratably over the contract term. Cloud arrangements include a right-to-access software license on third party hosted hardware such as the public cloud. Revenue is recognized ratably, or as consumed, over the contract term and included within the recurring services and other caption. Cloud arrangements typically include a minimum fixed amount that is recognized ratably over the contract term and may include an elastic amount for usage above the minimum, which is recognized monthly based on actual utilization. For the Company's hardware rental offering, the Company owns the hardware and typically finances the hardware to more closely align the use of cash with the expected cash inflows from contracts with customers. The revenue for these arrangements is generally recognized straight-line over the term of the contract and is included within the recurring services and other caption. Hardware rentals are generally accounted for as operating leases and considered outside the scope of Topic 606. • Perpetual maintenance and software upgrade rights - Revenue for maintenance and unspecified software upgrade rights on a when-and-if-available basis are recognized straight-line over the term of the contract and included within the recurring services and other caption. • Perpetual software licenses, hardware and other - Revenue for software is generally recognized when the customer has the ability to use and benefit from its right to use the license. Hardware is typically recognized upon delivery once title and risk of loss have been transferred (when control has passed). Other revenue includes the sale of all third-party related products. • Consulting services - The Company accounts for individual services as separate performance obligations if a service is separately identifiable from other items in a combined arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. Revenue for consulting, managed services, implementation and installation services is recognized as services are provided by measuring progress toward the complete satisfaction of the Company’s obligation. Progress for services that are contracted for at a fixed price is generally measured based on hours incurred as a portion of total estimated hours. Progress for services that are contracted for on a time and materials basis is generally based on hours expended. These input methods ( e.g. hours incurred or expended) of revenue recognition are considered a faithful depiction of our efforts to satisfy services contracts and therefore reflect the transfer of services to a customer under such contracts. Significant Accounting Policies and Practical Expedients The following are the Company’s significant accounting policies not already disclosed elsewhere and practical expedients relating to revenue from contracts with customers: • Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. • Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment cost and are included in cost of revenues. • The Company does not adjust for the effects of a significant financing component if the period between performance and customer payment is one year or less. • The Company expenses the costs to obtain a contract as incurred when the expected amortization period is one year or less. Shipping and Handling. Product shipping and handling are included in cost in the Consolidated Statements of Income. Cash and Cash Equivalents. All short-term, highly-liquid investments having original maturities of three months or less are considered to be cash equivalents. Allowance for Doubtful Accounts. Teradata establishes provisions for doubtful accounts using expected credit losses methodology and specific provisions for known issues. Inventories. Inventories are stated at the lower of cost or market. Cost of service parts is determined using the average cost method. Finished goods inventory is determined using actual cost. Long-Lived Assets Property and Equipment . Property and equipment, leasehold improvements and rental equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the related assets primarily on a straight-line basis. The Company's estimate of depreciation expense incorporates management assumptions regarding the useful economic lives and residual values of its assets. Equipment is generally depreciated over 3 to 5 years and buildings over 25 to 45 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Customer rental equipment is typically depreciated over the associated customer rental period, which is typically 3 years. Total depreciation expense on the Company’s property and equipment for December 31 was as follows: In millions 2023 2022 2021 Depreciation expense $ 110 $ 127 $ 139 Capitalized Software . Direct development costs associated with internal-use software are capitalized and amortized over the estimated useful lives of the resulting software. The costs are capitalized when both the preliminary project stage is completed and it is probable that computer software being developed will be completed and placed in service. Teradata typically amortizes capitalized internal-use software on a straight-line basis over four years beginning when the asset is substantially ready for use. Costs incurred for the development of analytic database software that will be sold, leased or otherwise marketed are expensed as incurred based on the frequency and agile nature of development. The Company uses agile development methodologies to help respond to new technologies and trends and rapidly changing customer needs. Agile development methodologies are characterized by a more dynamic development process with more frequent and iterative revisions to a product release features and functions as the software is being developed. Due to the shorter development cycle and focus on rapid production associated with agile development, the Company did not capitalize any amounts for external-use software development costs in 2023, 2022 and 2021 due to the relatively short duration between the completion of the working model and the point at which a product is ready for general release. The following table identifies the activity relating to capitalized internal-use software for the following periods: Internal-use Software In millions 2023 2022 2021 Beginning balance at January 1 $ 8 $ 10 $ 13 Capitalized 2 3 3 Amortization (5) (5) (6) Ending balance at December 31 $ 5 $ 8 $ 10 The aggregate amortization expense (actual and estimated) for internal-use software for the following periods is: Actual For the years ended (estimated) In millions 2023 2024 2025 2026 2027 2028 Internal-use software amortization expense $ 5 $ 4 $ 2 $ 2 $ 2 $ 2 Valuation of Long-Lived Assets. Long-lived assets such as property and equipment, acquired intangible assets and internal capitalized software are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment is calculated based on the present value of future cash flows and an impairment loss would be recognized when estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount. No material impairment was recognized during 2023, 2022 and 2021. Goodwill . Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather are tested for impairment annually or upon occurrence of an event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 5 for additional information. Research and Development Costs. Research and development costs are expensed as incurred. Research and development costs primarily include labor-related costs, contractor fees, and overhead expenses directly related to research and development support. Pension and Postemployment Benefits. The Company accounts for its pension benefit and its non-U.S. postemployment benefit obligations using actuarial models. The measurement of plan obligations was made as of December 31, 2023. Liabilities are computed using the projected unit credit method. The objective under this method is to expense each participant’s benefits under the plan as they accrue, taking into consideration salary increases and the plan’s benefit allocation formula. Thus, the total pension or postemployment benefit to which each participant is expected to become entitled is broken down into units, each associated with a year of past or future credited service. The Company recognizes the funded status of its pension and non-U.S. and Japan postemployment plan obligations in its consolidated balance sheet and records, in other comprehensive income, certain gains and losses that arise during the period, but are deferred under pension and postemployment accounting rules. See Note 8 for additional information. Foreign Currency. Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment are translated into U.S. dollars at period-end exchange rates. Income and expense accounts are translated at daily exchange rates prevailing during the period. Adjustments arising from the translation are included in accumulated other comprehensive income, a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in determining net income. Income Taxes. Income tax expense is provided based on income before income taxes in the various jurisdictions in which the Company conducts its business. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. These deferred taxes are determined based on the enacted tax rates expected to apply in the periods in which the deferred assets or liabilities are expected to be settled or realized. The Company made an accounting policy election in 2018 related to the 2017 Tax Act to provide for the tax expense related to global intangible low-taxed income ("GILTI") in the year the tax is incurred. Teradata recognizes tax benefits from uncertain tax positions only if it is more likely than not the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company records valuation allowances related to its deferred income tax assets when it is more likely than not that some portion or all the deferred income tax assets will not be realized. See Note 6 for additional information. Stock-based Compensation. Stock-based payments to employees, including restricted shares and restricted share units, are recognized in the financial statements based on their fair value. See Note 7 for additional information. 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 added from stock options, restricted share awards and other stock awards. Refer to Note 7 for share information on the Company’s stock compensation plans. The components of basic and diluted earnings per share for the years ended December 31 are as follows: In millions, except earnings per share 2023 2022 2021 Net income attributable to common stockholders $ 62 $ 33 $ 147 Weighted average outstanding shares of common stock 99.8 103.2 108.6 Dilutive effect of employee stock options, restricted shares and other stock awards 2.6 2.6 4.3 Common stock and common stock equivalents 102.4 105.8 112.9 Earnings per share: Basic $ 0.62 $ 0.32 $ 1.35 Diluted $ 0.61 $ 0.31 $ 1.30 Options to purchase an immaterial number of shares in 2023, 0.3 million shares in 2022 and 0.2 million shares in 2021 of common stock, were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares and, therefore, the effect would have been anti-dilutive. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This standard requires disclosure of significant segment expenses and other segment items by reportable segment. This ASU becomes effective for annual periods beginning in 2024 and interim periods in 2025. We are assessing the impact of this ASU and upon adoption expect that any impact would be limited to additional segment expense disclosures in the footnotes to our Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. This ASU becomes effective January 1, 2025. We are assessing the impact of this ASU and upon adoption may be required to include certain additional disclosures in the footnotes to our Consolidated Financial Statements. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information At December 31 In millions 2023 2022 Accounts receivable Trade $ 294 $ 360 Other 4 16 Accounts receivable, gross 298 376 Less: allowance for doubtful accounts (12) (12) Total accounts receivable, net $ 286 $ 364 Inventories Finished goods $ 11 $ 5 Service parts 2 3 Total inventories $ 13 $ 8 Other current assets Income tax receivable $ 13 $ 13 Pre-paid expenses and Other 71 74 Total other current assets $ 84 $ 87 Property and equipment Land $ 8 $ 8 Buildings and improvements 84 86 Finance lease assets 267 257 Machinery and other equipment 586 553 Property and equipment, gross 945 904 Less: accumulated depreciation (706) (660) Total property and equipment, net $ 239 $ 244 Other current liabilities Sales and value-added taxes $ 12 $ 26 Pension and other postemployment plan liabilities 18 13 Other 75 73 Total other current liabilities $ 105 $ 112 Deferred revenue Deferred revenue, current $ 570 $ 589 Long-term deferred revenue 22 8 Total deferred revenue $ 592 $ 597 Other long-term liabilities Transition tax $ 29 $ 52 Uncertain tax positions 19 22 Other 13 5 Total other long-term liabilities $ 61 $ 79 Twelve Months Ended December 31, In millions 2023 2022 2021 Other expense Foreign currency losses $ 38 $ 30 $ 8 Blue chip swap losses 13 — — Other 13 12 11 Total Other expense $ 64 $ 42 $ 19 Argentina Blue Chip Swap Transaction The Central Bank of Argentina maintains currency controls that limit Teradata's ability to access U.S. dollars in Argentina and remit cash from its Argentine operations. There is a foreign exchange mechanism known as Blue Chip Swaps, which effectively results in a parallel U.S. dollar exchange rate. This parallel rate, which cannot be used as the basis to remeasure Teradata's net monetary assets in U.S. dollars under U.S. GAAP, was approximately 168% higher than Argentina’s official exchange rate at September 30, 2023. During October of 2023, Teradata entered into Blue Chip Swap transactions in order to remit cash from its Argentine operations that resulted in a pre-tax loss on investment of $13 million during the fourth quarter of 2023. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
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 for the years ended December 31: In millions 2023 2022 2021 Americas Recurring $ 947 $ 889 $ 879 Perpetual software licenses, hardware and other 14 23 24 Consulting services 128 126 141 Total Americas 1,089 1,038 1,044 EMEA Recurring 363 330 371 Perpetual software licenses, hardware and other 20 33 37 Consulting services 92 102 135 Total EMEA 475 465 543 APJ Recurring 182 200 214 Perpetual software licenses, hardware and other 11 9 16 Consulting services 76 83 100 Total APJ 269 292 330 Total Revenue $ 1,833 $ 1,795 $ 1,917 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 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: In millions December 31, 2023 December 31, 2022 Accounts receivable, net $ 286 $ 364 Contract assets $ 9 $ 7 Current deferred revenue $ 570 $ 589 Long-term deferred revenue $ 22 $ 8 Revenue recognized during the year ended December 31, 2023 from amounts included in deferred revenue at the beginning of the period was approximately $490 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 December 31, 2023: In millions December 31, 2023 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,681 $ 1,606 $ 1,075 The amounts above represent the price of firm orders for which work has not been performed or goods have not been delivered and exclude unexercised contract options outside the stated contractual term that do not represent material rights to the customer. Although the Company believes that the contract value in the above table is firm, approximately $1,442 million of the amount includes customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies the Company otherwise. The Company expects to recognize revenue of approximately $646 million in the next year from contracts that are non-cancelable. The Company believes the inclusion of this information is important to understanding the obligations that the Company is contractually required to perform and provides useful information regarding remaining obligations related to these executed contracts. 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 on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions 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 four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs: In millions December 31, 2022 Capitalized Amortization December 31, 2023 Capitalized contract costs $ 92 $ 16 $ (40) $ 68 In millions December 31, 2021 Capitalized Amortization December 31, 2022 Capitalized contract costs $ 111 $ 37 $ (56) $ 92 |
Contract Costs
Contract Costs | 12 Months Ended |
Dec. 31, 2023 | |
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 for the years ended December 31: In millions 2023 2022 2021 Americas Recurring $ 947 $ 889 $ 879 Perpetual software licenses, hardware and other 14 23 24 Consulting services 128 126 141 Total Americas 1,089 1,038 1,044 EMEA Recurring 363 330 371 Perpetual software licenses, hardware and other 20 33 37 Consulting services 92 102 135 Total EMEA 475 465 543 APJ Recurring 182 200 214 Perpetual software licenses, hardware and other 11 9 16 Consulting services 76 83 100 Total APJ 269 292 330 Total Revenue $ 1,833 $ 1,795 $ 1,917 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 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: In millions December 31, 2023 December 31, 2022 Accounts receivable, net $ 286 $ 364 Contract assets $ 9 $ 7 Current deferred revenue $ 570 $ 589 Long-term deferred revenue $ 22 $ 8 Revenue recognized during the year ended December 31, 2023 from amounts included in deferred revenue at the beginning of the period was approximately $490 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 December 31, 2023: In millions December 31, 2023 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,681 $ 1,606 $ 1,075 The amounts above represent the price of firm orders for which work has not been performed or goods have not been delivered and exclude unexercised contract options outside the stated contractual term that do not represent material rights to the customer. Although the Company believes that the contract value in the above table is firm, approximately $1,442 million of the amount includes customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies the Company otherwise. The Company expects to recognize revenue of approximately $646 million in the next year from contracts that are non-cancelable. The Company believes the inclusion of this information is important to understanding the obligations that the Company is contractually required to perform and provides useful information regarding remaining obligations related to these executed contracts. 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 on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions 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 four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs: In millions December 31, 2022 Capitalized Amortization December 31, 2023 Capitalized contract costs $ 92 $ 16 $ (40) $ 68 In millions December 31, 2021 Capitalized Amortization December 31, 2022 Capitalized contract costs $ 111 $ 37 $ (56) $ 92 |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets The following table identifies the activity relating to goodwill by operating segment: In millions Balance December 31, Additions Currency Balance December 31, Goodwill Americas $ 252 $ 5 $ — $ 257 EMEA 87 1 2 90 APJ 51 1 (1) 51 Total goodwill $ 390 $ 7 $ 1 $ 398 During 2023, the Company recorded additional goodwill for the immaterial acquisition of Stemma Technologies that occurred during the period. In the fourth quarter of 2023, the Company performed its annual impairment test, utilizing the quantitative method, and determined that no impairment to the carrying value of goodwill was necessary as each reporting units fair value was above it carrying value. The Company reviewed its three reporting units in its 2023 goodwill impairment assessment, as each of the geographic operating segments were considered separate reporting units for purposes of testing. Acquired intangible assets were specifically identified when acquired and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows: December 31, In millions Amortization Gross Carrying Accumulated Amortization Acquired intangible assets Intellectual property/developed technology 5 $ 14 $ (2) During 2023, the Company recorded intangibles for intellectual property related to the immaterial acquisition of Stemma Technologies that occurred during the period. The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is: Actual For the years ended (estimated) In millions 2023 2024 2025 2026 2027 2028 Amortization expense $ 2 $ 3 $ 3 $ 3 $ 3 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the years ended December 31, income before income taxes consisted of the following: In millions 2023 2022 2021 Income before income taxes United States $ 35 $ 17 $ 67 Foreign 82 50 125 Total income before income taxes $ 117 $ 67 $ 192 For the years ended December 31, income tax expense consisted of the following: In millions 2023 2022 2021 Income tax expense Current Federal $ 25 $ 29 $ (1) State and local 5 6 5 Foreign 36 25 27 Deferred Federal (12) (21) 3 State and local (2) (3) 1 Foreign 3 (2) 10 Total income tax expense $ 55 $ 34 $ 45 Effective income tax rate 47.0 % 50.7 % 23.4 % The following table presents the principal components of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31: 2023 2022 2021 Income tax expense at the U.S. federal tax rate 21.0 % 21.0 % 21.0 % Foreign income tax differential 1.5 % 13.0 % 2.8 % U.S. tax on foreign earnings (1.7) % 2.8 % 0.3 % State and local income taxes (3.2) % (4.2) % (1.3) % U.S. permanent book/tax differences 3.7 % 4.8 % (2.3) % U.S. research and development tax credits (6.1) % (10.4) % (2.6) % Change in valuation allowance 18.6 % 18.7 % 3.2 % Argentina hyperinflationary adjustment 13.1 % — % — % Tax impact of stock compensation 1.7 % 3.6 % 0.8 % Tax Impact of uncertain tax positions (0.8) % 1.5 % 2.0 % Other, net (0.8) % (0.1) % (0.5) % Effective income tax rate 47.0 % 50.7 % 23.4 % The 2023 effective tax rate included a net $18 million of discrete tax expense, of which $15 million of tax expense related to the foreign currency exchange translation impact on deferred tax and tax payable balances for Teradata's Argentina operations due to hyperinflation in Argentina and $10 million of tax expense related to a valuation allowance recorded against deferred tax assets for Argentina and other reorganization and transformation activities. These were partially offset by $4 million tax benefit related to the reversal of a FIN 48 tax reserve due to the expiration of statute of limitations and $3 million of incremental tax benefit related to stock-based compensation. The 2022 effective tax rate included a net $1 million of discrete tax benefit, of which $2 million of tax benefit related to the reversal of a capital FIN 48 tax reserve due to the expiration of statute of limitations and $4 million incremental tax benefit related to stock-based compensation. These tax benefits were partially offset by $5 million of discrete tax expenses related to valuation allowances recorded against deferred tax assets and current receivables in Russia that are not expected to be realized as a result of the discontinuation of the Company's business in Russia. The 2021 effective tax rate included a net $8 million of discrete tax benefit, of which $3 million of tax benefit was related to true-up adjustments to reconcile the Company’s 2020 U.S. tax return versus the preliminary estimate as booked in its tax provision for the year ended December 31, 2020 and $2 million of tax benefit related to a reduction in the Transition Tax based on the Company’s amended 2017 tax return. In addition, the Company recognized $4 million of incremental tax benefit related to stock-based compensation. These tax benefits were partially offset by $1 million of discrete tax expense related to adjustments to the Company’s accrual for unrecognized tax benefits in accordance with FIN 48. Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows: In millions 2023 2022 Deferred income tax assets Employee pensions and other liabilities $ 59 $ 47 Other balance sheet reserves and allowances 15 19 Operating lease liabilities 3 5 Tax loss and credit carryforwards 109 99 Deferred revenue 4 6 Intangibles and capitalized software 178 172 Total deferred income tax assets 368 348 Valuation allowance (90) (69) Net deferred income tax assets 278 279 Deferred income tax liabilities Right of use assets - operating lease 2 3 Property and equipment 32 35 Other 31 35 Total deferred income tax liabilities 65 73 Total net deferred income tax assets $ 213 $ 206 As of December 31, 2023, Teradata has NOL and tax credit carryforwards totaling $112 million (tax effected and before any valuation allowance offset and application of recognition criteria for uncertain tax positions). Of the total tax carryforwards, $14 million are NOLs in the United States and certain foreign jurisdictions, a small portion of which will begin to expire in 2024 ; $15 million are United States foreign tax credit carryforwards which expire in 2029, which have an $15 million valuation allowance offset; and $83 million are California R&D tax credits that have an indefinite carryforward period, which have a $61 million valuation allowance offset and $21 million of FIN 48 reserve recorded. The Company considers a majority of its foreign earnings to not be indefinitely reinvested outside of the United States, and any distributions of profits from non-U.S. subsidiaries are not expected to cause a significant United States tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. The Company has recorded $5 million of deferred foreign withholding tax expense with respect to certain earnings which are not considered permanently reinvested as they would be taxable upon remittance. Deferred taxes have not been provided on earnings considered indefinitely reinvested. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company reflects any interest and penalties recorded in connection with its uncertain tax positions as a component of income tax expense. As of December 31, 2023, the Company’s uncertain tax positions totaled approximately $40 million, of which $19 million is reflected in the other liabilities section of the Company’s balance sheet as a non-current liability and $21 million of uncertain tax positions relates to certain tax attributes generated by the Company, which are netted against the underlying deferred tax assets recorded on the balance sheet. The entire balance of $40 million in uncertain tax positions would cause a decrease in the effective income tax rate upon recognition. Teradata has recorded $3 million of interest accruals related to its uncertain tax liabilities as of December 31, 2023 . Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31: In millions 2023 2022 Balance at January 1 $ 41 $ 43 Gross increases for prior period tax positions 1 1 Gross increases for current period tax positions 3 3 Decreases due to the lapse of applicable statute of limitations (5) (3) Decreases relating to settlements with taxing authorities — (3) Balance at December 31 $ 40 $ 41 The Company and its subsidiaries file income tax returns in the United States and various state jurisdictions, as well as numerous foreign jurisdictions. As of December 31, 2023, the Company has ongoing tax audits related to its 2020 and 2015 U.S. Federal income tax return, as well as in a limited number of state and foreign jurisdictions. However, no material adjustments have been proposed or made in any of these examinations to date, which would result in any incremental income tax expense in future periods to the Company. The Company's tax returns for years 2020-2023 |
Employee Stock-based Compensati
Employee Stock-based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Stock-based Compensation Plans | Employee Stock-based Compensation Plans The Company recorded stock-based compensation expense for the years ended December 31 as follows: In millions 2023 2022 2021 Restricted share units 122 122 109 Employee stock purchase program 4 4 3 Total stock-based compensation before income taxes 126 126 112 Tax benefit (23) (23) (19) Total stock-based compensation, net of tax $ 103 $ 103 $ 93 The Teradata Corporation 2012 Stock Incentive Plan (the "2012 SIP"), as amended, and the Teradata 2023 Stock Incentive Plan (the "2023 SIP"), as amended, provide for the grant of several different forms of stock-based compensation. The 2023 SIP was adopted and approved by stockholders in May 2023 and no further awards may be made under the 2012 SIP after that time. Awards granted under the 2012 Plan prior to stockholder approval of the 2023 Plan will remain outstanding in accordance with their terms. A total of 3.75 million shares were authorized to be issued under the 2023 SIP. In May 2020, the Teradata Board of Directors adopted the Teradata New Employee Stock Inducement Plan (the "NESIP"), effective June 1, 2020. Pursuant to the NESIP, the Company may grant equity incentive compensation as a material inducement for certain individuals to commence employment with Teradata within the meaning of Rule 303A.08 of the NYSE Listed Company Manual. A total of 2.2 million shares are reserved for grant under the NESIP, the Teradata Incentive Stock Purchase Plan, and new CEO award, subject to adjustment as provided in the NESIP. The NESIP terminated on June 1, 2023. New shares of the Company’s common stock are issued as a result of the vesting of restricted share units, upon stock option exercises, and at the time of grant for restricted shares, for awards under all plans. As of December 31, 2023, the Company’s primary types of stock-based compensation were restricted share units and the employee stock purchase program (the "ESPP"). Stock Options No stock options were granted in 2023, 2022, or 2021. Restricted Shares and Ristricted Share Units The 2023 SIP provides for the issuance of restricted shares, as well as restricted share units. These grants consist of both service-based and performance-based awards. Service-based awards typically vest over a three-year period beginning on the effective date of grant. These grants are not subject to future performance measures. The cost of these awards, determined to be the fair market value at the date of grant, is expensed ratably over the vesting period. Performance-based grants are subject to future performance measurements over a one performance-based shares that are earned in respect of an award will become vested at the end of the performance and/or service period provided the employee is continuously employed by the Company and applicable performance measures and other vesting conditions are met. The fair value of each performance-based award is determined on the grant date, based on the Company’s stock price, and assumes that performance targets will be achieved. Over the performance period, the number of shares of stock that will be issued is adjusted upward or downward based upon management’s assessment of the probability of achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense will be based on a comparison of the final achievement of performance metrics to the specified targets. For substantially all restricted share grants, at the date of grant, the recipient has all rights of a stockholder, subject to certain restrictions on transferability and risk of forfeiture. A recipient of restricted share units does not have the rights of a stockholder and is subject to restrictions on transferability and risk of forfeiture. For both restricted shares and restricted share units, any potential dividend rights would be subject to the same vesting requirements as the underlying equity award. As a result, such rights are considered a contingent transfer of value and consequently these equity awards are not considered participating securities. We did not issue restricted shares in 2023, 2022, or 2021. The following table reports restricted share unit activity during the year ended December 31, 2023: Shares in thousands Number of Weighted- Unvested shares at January 1, 2023 6,996 $ 39.40 Granted 3,926 $ 39.98 Vested (3,542) $ 32.77 Forfeited/canceled (560) $ 43.38 Unvested shares at December 31, 2023 6,820 $ 42.84 The following table summarizes the weighted-average fair value of restricted share units granted for Teradata equity awards and the total fair value of shares vested. 2023 2022 2021 Weighted-average fair value of restricted share units granted $ 39.98 $ 47.44 $ 41.18 Total fair value of shares vested (in millions) $ 116 $ 106 $ 93 As of December 31, 2023, there was $165 million of unrecognized compensation cost related to unvested restricted share unit grants. The unrecognized compensation cost is expected to be recognized over a remaining weighted-average period of 1.0 years. The following table represents the composition of Teradata restricted share unit grants in 2023 Shares in thousands Number of Weighted- Service-based restricted share units 3,065 $ 40.90 Performance-based restricted share units 861 $ 36.69 Total restricted share unit grants 3,926 $ 39.98 Employee Stock Purchase Program The Company’s ESPP provides eligible employees of Teradata and its designated subsidiaries an opportunity to purchase the Company’s common stock at a discount at the end of a 6-month purchase period. Additionally, the ESPP has a look-back feature whereby the purchase discount is based off the lower of the market prices at the beginning or end of each 6-month purchase period (September to February, and March to August). The ESPP discount is 15% of the relevant market price and is considered compensatory. Employees may authorize payroll deductions of up to 10% of eligible compensation for common stock purchases. A total of 9.3 million shares were authorized to be issued under the ESPP, with approximately 2.6 million shares remaining under that authorization at December 31, 2023. The shares of Teradata common stock purchased by a participant on an exercise date (the last day of each month), for all purposes, are deemed to have been issued and sold at the close of business on such exercise date. Prior to that time, none of the rights or privileges of a stockholder exists with respect to such shares. Employee purchases and aggregate cost were as follows at December 31: In millions 2023 2022 2021 Employee stock purchases 0.4 0.4 0.3 Aggregate cost $ 13 $ 12 $ 10 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension and Postemployment Plans. Teradata currently sponsors defined benefit pension plans for certain of its international employees. For those international pension plans for which the Company holds asset balances, those assets are primarily invested in common/collective trust funds (which include publicly traded common stocks, corporate and government debt securities, real estate indirect investments, cash or cash equivalents) and insurance contracts. Postemployment obligations relate to benefits provided to involuntarily terminated employees and certain inactive employees after employment but before retirement. These benefits are paid in accordance with various foreign statutory laws and regulations, and Teradata’s established postemployment benefit practices and policies. Postemployment benefits may include disability benefits, supplemental unemployment benefits, severance, workers’ compensation benefits, continuation of health care benefits and life insurance coverage, and are funded on a pay-as-you-go basis. Pension and postemployment benefit costs for the years ended December 31 were as follows: 2023 2022 2021 In millions Pension Postemployment Pension Postemployment Pension Postemployment Service cost $ 4 $ 12 $ 6 $ 13 $ 7 $ 11 Interest cost 3 2 2 1 1 1 Expected return on plan assets (2) — (2) — (2) — Curtailment gain — — — — (2) — Amortization of actuarial loss — 6 1 8 3 8 Amortization of prior service cost — 1 — — — — Total costs $ 5 $ 21 $ 7 $ 22 $ 7 $ 20 The underfunded amount of pension and postemployment obligations is recorded as a liability in the Company’s consolidated balance sheet. The following tables present the changes in benefit obligations, plan assets, funded status and the reconciliation of the funded status to amounts recognized in the consolidated balance sheets and in accumulated other comprehensive income at December 31: Pension Postemployment In millions 2023 2022 2023 2022 Change in benefit obligation Benefit obligation at January 1 $ 105 $ 143 $ 58 $ 68 Service cost 4 6 12 13 Interest cost 3 2 2 1 Plan participant contributions 1 1 — — Actuarial loss (gain) 5 (28) 13 (12) Benefits paid (3) (2) (29) (15) Settlement (2) (8) — — Plan Amendment — — — 3 Currency translation adjustments 3 (9) — — Benefit obligation at December 31 $ 116 $ 105 $ 56 $ 58 Change in plan assets Fair value of plan assets at January 1 $ 56 $ 67 $ — $ — Actual return on plan assets 3 (3) — — Company contributions 5 5 — — Benefits paid (4) (1) — — Currency translation adjustments 1 (5) — — Plan participant contribution 1 1 — — Settlements (2) (8) — — Fair value of plan assets at December 31 60 56 — — Funded status (underfunded) $ (56) $ (49) $ (56) $ (58) Amounts Recognized in the Consolidated Balance Sheet Non-current assets $ 8 $ 7 $ — $ — Current liabilities (2) (2) (16) (11) Non-current liabilities (62) (54) (40) (47) Net amounts recognized $ (56) $ (49) $ (56) $ (58) Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Unrecognized Net actuarial (gain) loss $ (4) $ (8) $ 57 $ 50 Unrecognized Prior service cost — — 4 5 Total $ (4) $ (8) $ 61 $ 55 The following table presents the accumulated pension benefit obligation at December 31: In millions 2023 2022 Accumulated pension benefit obligation $ 108 $ 99 The following table presents pension plans with accumulated benefit obligations in excess of plan assets at December 31: In millions 2023 2022 Projected benefit obligation $ 92 $ 81 Accumulated benefit obligation $ 87 $ 76 Fair value of plan assets $ 28 $ 25 The following table presents the pre-tax net changes in projected benefit obligations recognized in other comprehensive income: Pension Postemployment In millions 2023 2022 2023 2022 Actuarial loss (gain) arising during the year $ 4 $ (23) $ 13 $ (12) Amortization of loss included in net periodic benefit cost — (1) (7) (8) Prior service cost arising during the year — — — 2 Foreign currency exchange — (1) — — Total recognized in other comprehensive income (loss) $ 4 $ (25) $ 6 $ (18) The weighted-average rates and assumptions used to determine benefit obligations at December 31, and net periodic benefit cost for the years ended December 31, were as follows: Pension Benefit Obligations Pension Benefit Cost 2023 2022 2023 2022 2021 Discount rate 3.0% 3.3% 3.1% 1.3% 0.9% Rate of compensation increase 3.2% 3.1% 3.1% 3.0% 2.9% Expected return on plan assets N/A N/A 3.9% 3.1% 3.4% Interest crediting rate assumption 1.6% 1.5% 1.5% 0.9% 0.9% Postemployment Postemployment 2023 2022 2023 2022 2021 Discount rate 4.6% 3.8% 3.8% 2.0% 1.6% Rate of compensation increase 3.0% 3.0% 3.0% 3.0% 3.0% Involuntary turnover rate 4.5% 4.0% 4.0% 4.0% 3.5% The Company determines the expected return on assets based on individual plan asset allocations, historical capital market returns, and long-term interest rate assumptions, with input from its actuaries, investment managers, and independent investment advisors. The company emphasizes long-term expectations in its evaluation of return factors, discounting or ignoring short-term market fluctuations. Expected asset returns are reviewed annually, but are generally modified only when asset allocation strategies change or long-term economic trends are identified. International discount rates were determined by examining interest rate levels and trends within each country, particularly yields on high-quality long-term corporate bonds, relative to our future expected cash flows. The discount rate used for countries with individually insignificant benefit obligation at year-end was derived by matching the plans’ expected future cash flows to the corresponding yields from the Citigroup Pension Liability Index. This yield curve has been constructed to represent the available yields on high-quality fixed-income investments across a broad range of future maturities. Gains and losses have resulted from changes in actuarial assumptions and from differences between assumed and actual experience, including, among other items, changes in discount rates and differences between actual and assumed asset returns. These gains and losses (except those differences being amortized to the market-related value) are only amortized to the extent that they exceed 10% of the higher of the market-related value of plan assets or the projected benefit obligation of each respective plan. Amortization of deferred gains and losses are recognized in the Consolidated Statements of Income as a component of Other expense. Plan Assets. The weighted-average asset allocations at December 31, by asset category are as follows: Actual Asset Allocation Target Asset 2023 2022 Allocation Equity securities 33% 31% 32% Debt securities 47% 51% 49% Insurance (annuity) contracts 13% 16% 13% Real estate 6% 2% 4% Other 1% —% 2% Total 100% 100% 100% Investment Strategy. Teradata employs several investment strategies across its various international pension plans. In some countries, particularly where Teradata does not have a large employee base, the Company may use insurance (annuity) contracts to satisfy its future pension payment obligations, whereby the Company makes pension plan contributions to an insurance company in exchange for which the pension plan benefits will be paid when the members reach a specified retirement age or on earlier exit of members from the plan. In other countries, the Company may employ local asset managers to manage investment portfolios according to the investment policies and guidelines established by the Company, and with consideration to individual plan liability structure and local market environment and risk tolerances. The Company’s investment policies and guidelines primarily emphasize diversification across and within asset classes to maximize long-term returns subject to prudent levels of risk, with the overall objective of enabling the plans to meet their future obligations. The investment portfolios contain a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across domestic and international stocks, small and large capitalization stocks, and growth and value stocks. Fixed-income assets are diversified across government and corporate bonds. Where applicable, real estate investments are made through real estate securities, partnership interests or direct investment, and are diversified by property type and location. Fair Value. Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are more fully described in Note 11. The following is a description of the valuation methodologies used for pension assets as of December 31, 2023. Common/collective trust funds (which include money market funds, equity funds, bond funds, real estate indirect investments, etc.) : Valued at the net asset value ("NAV") of shares held by the pension plan at year end, as reported to the pension plan by the trustee, which represents the fair value of shares held by the pension plan. Because the NAV of the shares held in the common/collective trust funds are derived by the value of the underlying investments, the Company has classified these underlying investments as Level 2 fair value measurements. Insurance contracts: Valued by discounting the related future benefit payments using a current year-end market discount rate, which represents the fair value of the insurance contract. The Company has classified these contracts as Level 3 assets for fair value measurement purposes. The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2023: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Significant In millions December 31, 2023 (Level 1) (Level 2) (Level 3) Money market funds $ 1 $ — $ 1 $ — Equity funds 20 — 20 — Bond/fixed-income funds 28 — 28 — Real estate indirect investments 3 — 3 — Insurance contracts 8 — — 8 Total assets at fair value $ 60 $ — $ 52 $ 8 The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2023: In millions Insurance Balance as of January 1, 2023 $ 7 Purchases, sales and settlements, net 1 Balance as of December 31, 2023 $ 8 The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2022: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Significant In millions December 31, 2022 (Level 1) (Level 2) (Level 3) Money market funds $ 2 $ — $ 2 $ — Equity funds 17 — 17 — Bond/fixed-income funds 27 — 27 — Real estate indirect investments 3 — 3 — Insurance contracts 7 — — 7 Total assets at fair value $ 56 $ — $ 49 $ 7 The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2022: In millions Insurance Balance as of January 1, 2022 $ 7 Purchases, sales and settlements, net — Balance as of December 31, 2022 $ 7 Cash Flows Related to Employee Benefit Plans Cash Contributions. In 2024, the Company expects to contribute approximately $2 million to the international pension plans. Estimated Future Benefit Payments. The Company expects to make the following benefit payments, estimated based on the assumptions used to measure the Company's benefit obligation at the end of the year, reflecting past and future service from its pension and postemployment plans: Pension Postemployment In millions Benefits Benefits Year 2024 $ 5 $ 16 2025 $ 6 $ 10 2026 $ 6 $ 10 2027 $ 7 $ 10 2028 $ 7 $ 10 2029 - 2033 $ 40 $ 51 Savings Plans. United States employees and many international employees participate in defined contribution savings plans. These plans generally provide either a specified percent of pay or a matching contribution on participating employees’ voluntary elections. The Company’s matching contributions typically are subject to a maximum percentage or level of compensation. Employee contributions can be made pre-tax, after-tax or a combination thereof. The following table identifies the expense for the United States and International subsidiary savings plans for the years ended December 31: In millions 2023 2022 2021 U.S. savings plan $ 16 $ 16 $ 16 International subsidiary savings plans $ 10 $ 12 $ 14 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
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 United States 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 or in other income (expense), depending on the nature of the related hedged item. During June 2022, Teradata entered into a cross-currency swap designated as a net investment hedge, to hedge the Euro currency exposure of its net investment in certain foreign subsidiaries. This agreement is a contract to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. Changes in the fair value of this swap are recorded in Accumulated Other Comprehensive Loss in the same manner as foreign currency translation adjustments. In assessing the effectiveness of this hedge, the Company used a method based on changes in spot rates to measure the impact of the foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related swap. The cross-currency swap contract has an expiration date of June 29, 2026. At maturity of the cross-currency swap contract, the Company will deliver the notional amount of €143 million and wil l receive $150 million from the counterparty. The Company will receive monthly interest payments from the counterparty based on a fixed interest rate until maturity of the agreements. In June 2022, Teradata refinanced its long-term debt and its associated interest rate swap ("Prior Interest Rate Swap"), which were due to mature in June 2023. As a result, Teradata terminated its five-year London Interbank Offered Rate ("Libor") interest rate swap that had a $500 million initial notional amount to hedge the floating interest rate of its Libor term loan. On June 28, 2022, Teradata executed a five-year Secured Overnight Financing Rate ("SOFR") interest rate swap, to fix the interest rate on approximately 90% of the principal balance of the $500 million term loan, with an initial notional amount of $450 million, as more fully described in Note 12. 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 $450 million as of December 31, 2023. The Company performed an initial effectiveness assessment on the interest rate swap and the net investment hedge foreign currency swap, and the hedges were determined to be effective. The hedges are 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 interest rate 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 hedging instruments at December 31: In millions 2023 2022 Contract notional amount of foreign exchange forward contracts $ 178 $ 46 Net contract notional amount of foreign exchange forward contracts $ 1 $ 7 Contract notional amount of foreign currency exchange (net investment hedge) $ 150 $ 150 Contract notional amount of interest rate swap $ 450 $ 450 All derivatives are recognized in the 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 11 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 | 12 Months Ended |
Dec. 31, 2023 | |
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, including for Foreign Corrupt Practices Act ("FCPA") and shareholder matters. It is not currently a party to any litigation, nor is it aware of any pending or threatened litigation against it that the Company believes would materially affect its 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 (the "TD-SAP 1" suit) 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 TD-SAP 1 lawsuit, the Company alleged, 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 such trade secrets to help develop, improve, introduce, and sell one or more competing products. The Company further alleged that SAP 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 one or more of SAP's competing products and reduce or eliminate customers' and prospective customers' use of the Company's offerings. The Company sought 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 the Company based on five of SAP’s U.S. patents. On August 31, 2020, the Company filed a second lawsuit against SAP (the "TD-SAP 2" suit) in the U.S. District Court for the Northern District of California, in which the Company alleged infringement by SAP of four of the Company's U.S. patents. On February 16, 2021, SAP filed additional patent infringement counterclaims against the Company in response. On the same day, SAP also filed a lawsuit in Germany (the "TD-SAP 3" suit) for infringement of a single German patent. In November 2021, the district court dismissed the Company’s antitrust claims and most of its trade secret claims in the TD-SAP 1 suit. In December 2021, the Company appealed that decision to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. That Court ruled the appeal should be heard by the Ninth Circuit Court of Appeals; the appeal was transferred to the Ninth Circuit and the court heard oral arguments on February 12, 2024. In the meantime, the Company and SAP have entered into a partial settlement agreement that has resulted in full dismissal of all claims and counterclaims in the TD-SAP 2 suit in California and the TD-SAP 3 suit in Germany as well as a stay of all claims and counterclaims remaining in the TD-SAP 1 suit pending resolution of the Company’s appeal. 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 remaining patent counterclaims in the TD-SAP 1 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 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 December 31, 2023 and December 31, 2022. The Company is also potentially subject to concentrations of supplier risk. Our hardware components are assembled primarily 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 | 12 Months Ended |
Dec. 31, 2023 | |
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 using derivative financial instruments, specifically, foreign exchange forward contracts. Additionally, in June 2022, Teradata executed a five-year interest rate swap with a $450 million initial notional amount to hedge the floating interest rate on its term-loan and a four-year cross-currency swap with initial notional amounts of €143 million/$150 million, as a net investment hedge to hedge the Euro currency exposure of our net investment in certain foreign subsidiaries. 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 and other liabilities at December 31, 2023 and 2022 were 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 years ended December 31, 2023, 2022 and 2021. The Company’s assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at December 31, 2023 and December 31, 2022 were as follows: Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant Unobservable Inputs In millions Total (Level 1) (Level 2) (Level 3) Assets Money Market Funds at December 31, 2023 $ 152 $ 152 $ — $ — Money Market Funds at December 31, 2022 $ 211 $ 211 $ — $ — Interest Rate Swap at December 31, 2023 $ 8 $ — $ 8 $ — Interest Rate Swap at December 31, 2022 $ 13 $ — $ 13 $ — Liabilities Foreign Currency Swap at December 31, 2023 $ 8 $ — $ 8 $ — Foreign Currency Swap at December 31, 2022 $ 1 $ — $ 1 $ — |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt On June 28, 2022, the Company entered into a Credit Agreement that provides for (i) a five-year unsecured term loan in an aggregate principal amount of $500 million (the "Term Loan"), and (ii) a five-year unsecured revolving credit facility in an aggregate principal amount of up to $400 million, including a $50 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swingline loans (the "Revolving Facility" and, collectively with the Term Loan, the "Credit Facility"). The Credit Facility replaces the Company's prior revolving credit agreement in the maximum principal of $400 million and its prior term loan agreement in the initial principal amount of $500 million, both of which were entered into in 2018 and due to mature in June 2023 (the "Prior Agreements"). In connection with the execution of the Credit Facility, the $400 million term loan outstanding under the Prior Agreements was repaid in full. All outstanding borrowings pursuant to the Revolving Facility are due and payable on June 28, 2027, however, the maturity date of the Revolving Facility may be extended by agreement of the parties for up to two additional one-year periods. The Term Loan is payable in quarterly installments, which commence on June 30, 2024, with 1.25% of the initial principal amount due on each of the first twelve payment dates, with all remaining principal due on June 28, 2027. 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 $450 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 an adjusted term SOFR rate, plus in each case, a margin based on the Company's leverage ratio. As disclosed in Note 9, in June 2022, Teradata entered into an interest rate swap to hedge approximately 90% (or $450 million as of December 31, 2022) of the floating interest rate of the total $500 million Term Loan and a cross currency swap to hedge a portion of Euro currency exposure of its net investment in certain foreign subsidiaries. The Credit Facility is unsecured but is guaranteed by certain of Teradata’s material domestic subsidiaries and contains certain customary representations and warranties, default provisions, and affirmative and negative covenants, including, among others, covenants regarding the maintenance of a leverage ratio and covenants relating to financial reporting, compliance with laws, subsidiary indebtedness, liens, sale and leaseback transactions, mergers and other fundamental changes, and entry into certain restrictive agreements. Most of the covenants are subject to materiality, thresholds, and exceptions. On September 21, 2023, the Credit Agreement was amended to establish key performance indicators with respect to certain environmental, social, and governance ("ESG") targets, pursuant to which certain positive or negative adjustments would be made to various fees and applicable margin based on Teradata’s performance against such ESG targets. As of December 31, 2023 and 2022, the Company had no borrowings outstanding under the Credit Facility, leaving $400 million in additional borrowing capacity available under the Credit Facility. The Company was in compliance with all covenants as of December 31, 2023 and 2022. The term loan principal outstanding was $500 million at December 31, 2023 and $500 million at December 31, 2022. As disclosed in Note 9, 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 approximately 90% of the term loan equals 3.25% excluding the applicable leverage-based margin as defined in the term loan agreement. As of December 31, 2023 and 2022, the all-in fixed rates are 4.44% and 4.24%, respectively. Deferred issuance costs are amortized over the five-year term of the Term Loan to interest expense. As of December 31, 2023 the remaining unamortized deferred issuance costs are approximately $1 million . Annual contractual maturities of outstanding principal on the Term Loan at December 31, 2023, are as follows: In millions Principal payments 2024 19 2025 25 2026 25 2027 431 Total $ 500 The Term Loan is recognized on the Company’s balance sheet at its unpaid principal balance 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company leases property and equipment under finance and operating leases. The Company's operating leases primarily consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from 1 to 4 years . The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components ( e.g. , fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components ( e.g. , common-area maintenance costs). For automobile leases we account for lease and non-lease components together. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property. The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31: In millions, except weighted average calculations Classification on the Balance Sheet 2023 2022 Assets Operating lease assets Right of use assets - operating lease, net $ 9 $ 13 Finance lease assets Property and equipment, net 156 149 Total lease assets $ 165 $ 162 Liabilities Current Operating Current portion of operating lease liability $ 6 $ 8 Finance Current portion of finance lease liability 66 67 Non current Operating Operating lease liability 6 10 Finance Finance lease liability 63 54 Total lease liabilities $ 141 $ 139 Weighted-average remaining lease term Operating leases 2.16 years 2.37 years Finance leases 2.06 years 2.03 years Weighted-average discount rate Operating leases (1) 5.00 % 5.00 % Finance leases 6.28 % 4.97 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement. Lessee Costs The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31: In millions 2023 2022 2021 Finance lease cost Depreciation of leased assets $ 68 $ 69 $ 78 Interest of lease liabilities 7 5 6 Operating lease cost 7 12 17 Sub-lease income from real estate properties owned and leased (5) (5) (5) Total lease cost $ 77 $ 81 $ 96 Other Information The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31: In millions 2023 2022 Operating cash flows for operating leases $ 9 $ 15 Operating cash flows for finance leases $ 7 $ 5 Financing cash flows for finance leases $ 82 $ 86 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 8 $ 72 2025 4 50 2026 2 16 2027 — — 2028 — — Thereafter — — Total minimum lease payments 14 138 Less: amount of lease payments representing interest (2) (9) Present value of future minimum lease payments 12 129 Less: current obligations under leases (6) (66) Long-term lease obligations $ 6 $ 63 The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2022: In millions Operating Leases Finance Leases 2023 $ 11 $ 72 2024 8 39 2025 3 17 2026 1 — 2027 — — Thereafter — — Total minimum lease payments 23 128 Less: amount of lease payments representing interest (5) (7) Present value of future minimum lease payments 18 121 Less: current obligations under leases (8) (67) Long-term lease obligations $ 10 $ 54 Lessor The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company owns or leases the hardware and may or may not provide managed services. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue The following table includes rental revenue for the years ended December 31: In millions 2023 2022 2021 Rental revenue* $ 216 $ 191 $ 162 *Rental revenue includes hardware maintenance. The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2023: In millions Rental Revenue 2024 $ 180 2025 110 2026-27 66 Total $ 356 |
Leases | Leases Lessee The Company leases property and equipment under finance and operating leases. The Company's operating leases primarily consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from 1 to 4 years . The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components ( e.g. , fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components ( e.g. , common-area maintenance costs). For automobile leases we account for lease and non-lease components together. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property. The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31: In millions, except weighted average calculations Classification on the Balance Sheet 2023 2022 Assets Operating lease assets Right of use assets - operating lease, net $ 9 $ 13 Finance lease assets Property and equipment, net 156 149 Total lease assets $ 165 $ 162 Liabilities Current Operating Current portion of operating lease liability $ 6 $ 8 Finance Current portion of finance lease liability 66 67 Non current Operating Operating lease liability 6 10 Finance Finance lease liability 63 54 Total lease liabilities $ 141 $ 139 Weighted-average remaining lease term Operating leases 2.16 years 2.37 years Finance leases 2.06 years 2.03 years Weighted-average discount rate Operating leases (1) 5.00 % 5.00 % Finance leases 6.28 % 4.97 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement. Lessee Costs The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31: In millions 2023 2022 2021 Finance lease cost Depreciation of leased assets $ 68 $ 69 $ 78 Interest of lease liabilities 7 5 6 Operating lease cost 7 12 17 Sub-lease income from real estate properties owned and leased (5) (5) (5) Total lease cost $ 77 $ 81 $ 96 Other Information The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31: In millions 2023 2022 Operating cash flows for operating leases $ 9 $ 15 Operating cash flows for finance leases $ 7 $ 5 Financing cash flows for finance leases $ 82 $ 86 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 8 $ 72 2025 4 50 2026 2 16 2027 — — 2028 — — Thereafter — — Total minimum lease payments 14 138 Less: amount of lease payments representing interest (2) (9) Present value of future minimum lease payments 12 129 Less: current obligations under leases (6) (66) Long-term lease obligations $ 6 $ 63 The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2022: In millions Operating Leases Finance Leases 2023 $ 11 $ 72 2024 8 39 2025 3 17 2026 1 — 2027 — — Thereafter — — Total minimum lease payments 23 128 Less: amount of lease payments representing interest (5) (7) Present value of future minimum lease payments 18 121 Less: current obligations under leases (8) (67) Long-term lease obligations $ 10 $ 54 Lessor The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company owns or leases the hardware and may or may not provide managed services. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue The following table includes rental revenue for the years ended December 31: In millions 2023 2022 2021 Rental revenue* $ 216 $ 191 $ 162 *Rental revenue includes hardware maintenance. The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2023: In millions Rental Revenue 2024 $ 180 2025 110 2026-27 66 Total $ 356 |
Leases | Leases Lessee The Company leases property and equipment under finance and operating leases. The Company's operating leases primarily consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from 1 to 4 years . The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components ( e.g. , fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components ( e.g. , common-area maintenance costs). For automobile leases we account for lease and non-lease components together. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property. The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31: In millions, except weighted average calculations Classification on the Balance Sheet 2023 2022 Assets Operating lease assets Right of use assets - operating lease, net $ 9 $ 13 Finance lease assets Property and equipment, net 156 149 Total lease assets $ 165 $ 162 Liabilities Current Operating Current portion of operating lease liability $ 6 $ 8 Finance Current portion of finance lease liability 66 67 Non current Operating Operating lease liability 6 10 Finance Finance lease liability 63 54 Total lease liabilities $ 141 $ 139 Weighted-average remaining lease term Operating leases 2.16 years 2.37 years Finance leases 2.06 years 2.03 years Weighted-average discount rate Operating leases (1) 5.00 % 5.00 % Finance leases 6.28 % 4.97 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement. Lessee Costs The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31: In millions 2023 2022 2021 Finance lease cost Depreciation of leased assets $ 68 $ 69 $ 78 Interest of lease liabilities 7 5 6 Operating lease cost 7 12 17 Sub-lease income from real estate properties owned and leased (5) (5) (5) Total lease cost $ 77 $ 81 $ 96 Other Information The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31: In millions 2023 2022 Operating cash flows for operating leases $ 9 $ 15 Operating cash flows for finance leases $ 7 $ 5 Financing cash flows for finance leases $ 82 $ 86 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 8 $ 72 2025 4 50 2026 2 16 2027 — — 2028 — — Thereafter — — Total minimum lease payments 14 138 Less: amount of lease payments representing interest (2) (9) Present value of future minimum lease payments 12 129 Less: current obligations under leases (6) (66) Long-term lease obligations $ 6 $ 63 The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2022: In millions Operating Leases Finance Leases 2023 $ 11 $ 72 2024 8 39 2025 3 17 2026 1 — 2027 — — Thereafter — — Total minimum lease payments 23 128 Less: amount of lease payments representing interest (5) (7) Present value of future minimum lease payments 18 121 Less: current obligations under leases (8) (67) Long-term lease obligations $ 10 $ 54 Lessor The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company owns or leases the hardware and may or may not provide managed services. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue The following table includes rental revenue for the years ended December 31: In millions 2023 2022 2021 Rental revenue* $ 216 $ 191 $ 162 *Rental revenue includes hardware maintenance. The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2023: In millions Rental Revenue 2024 $ 180 2025 110 2026-27 66 Total $ 356 |
Segment, Other Supplemental Inf
Segment, Other Supplemental Information and Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment, Other Supplemental Information and Concentrations | Segment, Other Supplemental Information and Concentrations 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 for the years ended December 31: In millions 2023 2022 2021 Segment revenue Americas $ 1,089 $ 1,038 $ 1,044 EMEA 475 465 543 APJ 269 292 330 Total revenue 1,833 1,795 1,917 Segment gross profit Americas 689 643 690 EMEA 295 285 337 APJ 149 177 188 Total segment gross profit 1,133 1,105 1,215 Stock-based compensation expense 17 16 18 Acquisition, integration and reorganization-related costs 1 8 11 Total gross profit 1,115 1,081 1,186 Selling, general and administrative expenses 635 650 646 Research and development expenses 294 313 309 Total income from operations $ 186 $ 118 $ 231 Certain items, including reorganization-related costs, were excluded from segment gross profit to conform to the way the Company manages and reviews the results by segment. The following table presents revenues by geographic area for the years ended December 31: In millions 2023 2022 2021 United States $ 973 $ 914 $ 922 Americas (excluding United States) 116 124 122 EMEA 475 465 543 APJ 269 292 330 Total revenue $ 1,833 $ 1,795 $ 1,917 The following table presents property and equipment, net by geographic area at December 31: In millions 2023 2022 United States $ 170 $ 172 Americas (excluding United States) 11 15 EMEA 38 37 APJ 20 20 Property and equipment, net $ 239 $ 244 Concentrations. No single customer accounts for more than 10% of the Company's revenue for any period presented. As of December 31, 2023, the Company is not aware of any significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on the Company’s operations. The Company's hardware components are assembled primarily by Flex. In addition, the Company utilizes preferred supplier relationships to better ensure more consistent quality, cost, and delivery. There can be no assurances that a disruption in production at Flex or at a supplier would not have a material adverse effect on the Company's operations. In addition, a significant change in the forecasts to any of these preferred suppliers could result in purchase obligations or components that may be in excess of demand. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table provides information on changes in accumulated other comprehensive (loss) income, net of tax ("AOCI"), for the years ended December 31: In millions Derivatives Defined Foreign Total Balance as of December 31, 2020 $ (21) $ (68) $ (54) $ (143) Other comprehensive income (loss) before reclassifications 11 (1) (12) (2) Amounts reclassified from AOCI — 7 — 7 Net other comprehensive income (loss) 11 6 (12) 5 Balance as of December 31, 2021 $ (10) $ (62) $ (66) $ (138) Other comprehensive income (loss) before reclassifications 19 25 (31) 13 Amounts reclassified from AOCI — 6 — 6 Net other comprehensive income (loss) 19 31 (31) 19 Balance as of December 31, 2022 $ 9 $ (31) $ (97) $ (119) Other comprehensive (loss) income before reclassifications (4) (12) 1 (15) Amounts reclassified from AOCI — 5 — 5 Net other comprehensive (loss) income (4) (7) 1 (10) Balance as of December 31, 2023 $ 5 $ (38) $ (96) $ (129) The following table presents the impact and respective location of AOCI reclassifications in the Consolidated Statements of Income for the years ended December 31: In millions AOCI Component Location 2023 2022 2021 Other expense Other expense $ (7) $ (9) $ (11) Tax portion Income tax benefit 2 3 4 Total reclassifications Net loss (income) $ (5) $ (6) $ (7) Further information on the Company’s defined benefit plans is included in Note 8. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (In millions) Column A Column B Column C Column D Column E Description Balance at Provision/reversals Charged Deductions Balance Allowance for doubtful accounts Year ended December 31, 2023 $ 12 $ 1 $ — $ (1) $ 12 Year ended December 31, 2022 $ 9 $ 5 $ — $ (2) $ 12 Year ended December 31, 2021 $ 14 $ (1) $ — $ (4) $ 9 Deferred tax valuation allowance Year ended December 31, 2023 $ 69 $ 21 $ — $ — $ 90 Year ended December 31, 2022 $ 58 $ 11 $ — $ — $ 69 Year ended December 31, 2021 $ 51 $ 7 $ — $ — $ 58 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 62 | $ 33 | $ 147 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended December 31, 2023, other than the director shown in the table below, no other director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K. Name (Title) Action Date Trading Arrangement Total Shares to be Sold Expiration Date Rule 10b5-1* Non-Rule 10b5-1** Timothy C. K. Chou (Director) Adopt 11/30/2023 x Up to 6,356 12/31/2024 * Intended to satisfy the affirmative defense of Rule 10b5-1(c). **Not intended to satisfy the affirmative defense of Rule 10b5-1(c). | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Timothy C. K. Chou [Member] | ||
Trading Arrangements, by Individual | ||
Name | Timothy C. K. Chou | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 11/30/2023 | |
Arrangement Duration | 397 days | |
Aggregate Available | 6,356 | 6,356 |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract] | |
Description of the Business | Description of the Business. Teradata Corporation ("we," "us," "Teradata," or the "Company") is focused on helping organizations improve business performance, enrich customer experiences, and integrate data across the enterprise. As such, we strive to innovate and deliver trusted solutions for complex data and analytics challenges. That's why we built our comprehensive open and connected cloud analytics and data platform for artificial intelligence ("AI"). Our Teradata Vantage platform is designed to help enterprises solve business problems and deliver business breakthroughs with its capabilities to provide harmonized data, trusted AI, and faster innovation. |
Basis of Presentation | Basis of Presentation. The financial statements are presented on a consolidated basis and include the accounts of the Company and its wholly-owned subsidiaries in accordance with accounting principles generally accepted in the United States of America ("GAAP"). |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. On an ongoing basis, management evaluates these estimates and judgments, including those related to allowances for doubtful accounts, the valuation of inventory to net realizable value, impairments of goodwill and other intangibles, stock-based compensation, leases, pension and other postemployment benefits, and income taxes and any changes will be accounted for on a prospective basis. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company adopted Financial Accounting Standards Board ("FASB") Standards Update No. 2014-09, Revenue from Contracts with Customers ("Topic 606") as of January 1, 2018 for all contracts not completed as of the date of adoption. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company performs the following five steps: 1. identify the contract with a customer, 2. identify the performance obligations in the contract, 3. determine the transaction price, 4. allocate the transaction price to the performance obligations in the contract, and 5. recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the above five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for goods or services it transfers to the customer. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience, published credit, and financial information pertaining to the customer. Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales, value add, and other taxes the Company collects concurrent with revenue-producing activities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a good or service to a customer. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur once the uncertainty is resolved. The Company uses the expected value method or the most likely amount method depending on the nature of the variable consideration. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates in the period such variances become known. Typically, the amount of variable consideration is not material. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. The Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct within the context of the contract. If these criteria are not met, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Revenue is then recognized either at a point in time or over time depending on our evaluation of when the customer obtains control of the promised goods or services. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue recorded in a given period. In addition, the Company has developed assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. The Company determines the standalone selling price for a good or service by considering multiple factors including, geographies, market conditions, product life cycles, competitive landscape, internal costs, gross margin objectives, purchase volumes and pricing practices. The Company reviews the standalone selling price for each of its performance obligations on a periodic basis and updates it, when appropriate, to ensure that the practices employed reflect the Company’s recent pricing experience. The Company maintains internal controls over the establishment and updates of these estimates, which includes review and approval by the Company’s management. Teradata delivers its platform and services primarily through direct sales channels, as well as through other independent software vendors and distributors and value-added resellers. Standard payment terms may vary based on the country in which the contract is executed, but are generally between 30 days and 90 days. The following is a description of the principal activities and performance obligations from which the Company generates its revenue: • Subscription software licenses, services and other - The Company sells on-premises and cloud subscriptions to its customers through its subscription licenses, cloud and hardware rental offerings. Teradata’s on-premises subscription licenses include a right-to-use license and revenue is recognized upfront at a point in time unless the customer has a contractual right to cancel, where revenue is recognized period-to-period based on the cancellation terms. Subscription licenses are reported within the subscription software licenses caption on the Consolidated Statements of Income. The subscription software license support and unspecified software license upgrade rights on a when-and-if-available basis that are included in the subscription are reported within the recurring services and other caption and recognized ratably over the contract term. Cloud arrangements include a right-to-access software license on third party hosted hardware such as the public cloud. Revenue is recognized ratably, or as consumed, over the contract term and included within the recurring services and other caption. Cloud arrangements typically include a minimum fixed amount that is recognized ratably over the contract term and may include an elastic amount for usage above the minimum, which is recognized monthly based on actual utilization. For the Company's hardware rental offering, the Company owns the hardware and typically finances the hardware to more closely align the use of cash with the expected cash inflows from contracts with customers. The revenue for these arrangements is generally recognized straight-line over the term of the contract and is included within the recurring services and other caption. Hardware rentals are generally accounted for as operating leases and considered outside the scope of Topic 606. • Perpetual maintenance and software upgrade rights - Revenue for maintenance and unspecified software upgrade rights on a when-and-if-available basis are recognized straight-line over the term of the contract and included within the recurring services and other caption. • Perpetual software licenses, hardware and other - Revenue for software is generally recognized when the customer has the ability to use and benefit from its right to use the license. Hardware is typically recognized upon delivery once title and risk of loss have been transferred (when control has passed). Other revenue includes the sale of all third-party related products. • Consulting services - The Company accounts for individual services as separate performance obligations if a service is separately identifiable from other items in a combined arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. Revenue for consulting, managed services, implementation and installation services is recognized as services are provided by measuring progress toward the complete satisfaction of the Company’s obligation. Progress for services that are contracted for at a fixed price is generally measured based on hours incurred as a portion of total estimated hours. Progress for services that are contracted for on a time and materials basis is generally based on hours expended. These input methods ( e.g. hours incurred or expended) of revenue recognition are considered a faithful depiction of our efforts to satisfy services contracts and therefore reflect the transfer of services to a customer under such contracts. Significant Accounting Policies and Practical Expedients The following are the Company’s significant accounting policies not already disclosed elsewhere and practical expedients relating to revenue from contracts with customers: • Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. • Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment cost and are included in cost of revenues. • The Company does not adjust for the effects of a significant financing component if the period between performance and customer payment is one year or less. • The Company expenses the costs to obtain a contract as incurred when the expected amortization period is one year or less. Shipping and Handling. Product shipping and handling are included in cost in the Consolidated Statements of Income. |
Cash and Cash Equivalents | Cash and Cash Equivalents. All short-term, highly-liquid investments having original maturities of three months or less are considered to be cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts. Teradata establishes provisions for doubtful accounts using expected credit losses methodology and specific provisions for known issues. |
Inventories | Inventories. Inventories are stated at the lower of cost or market. Cost of service parts is determined using the average cost method. Finished goods inventory is determined using actual cost. |
Long-Lived Assets | Long-Lived Assets Property and Equipment |
Capitalized Software | Capitalized Software . Direct development costs associated with internal-use software are capitalized and amortized over the estimated useful lives of the resulting software. The costs are capitalized when both the preliminary project stage is completed and it is probable that computer software being developed will be completed and placed in service. Teradata typically amortizes capitalized internal-use software on a straight-line basis over four years beginning when the asset is substantially ready for use. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets. |
Goodwill | Goodwill |
Research and Development Costs | Research and Development Costs. Research and development costs are expensed as incurred. Research and development costs primarily include labor-related costs, contractor fees, and overhead expenses directly related to research and development support. |
Pension and Postemployment Benefits | Pension and Postemployment Benefits. The Company accounts for its pension benefit and its non-U.S. postemployment benefit obligations using actuarial models. The measurement of plan obligations was made as of December 31, 2023. Liabilities are computed using the projected unit credit method. The objective under this method is to expense each participant’s benefits under the plan as they accrue, taking into consideration salary increases and the plan’s benefit allocation formula. Thus, the total pension or postemployment benefit to which each participant is expected to become entitled is broken down into units, each associated with a year of past or future credited service. |
Foreign Currency | Foreign Currency. Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment are translated into U.S. dollars at period-end exchange rates. Income and expense accounts are translated at daily exchange rates prevailing during the period. Adjustments arising from the translation are included in accumulated other comprehensive income, a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in determining net income. |
Income Taxes | Income Taxes. |
Stock-based Compensation | Stock-based Compensation. |
Earnings Per Share | Earnings Per Share. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This standard requires disclosure of significant segment expenses and other segment items by reportable segment. This ASU becomes effective for annual periods beginning in 2024 and interim periods in 2025. We are assessing the impact of this ASU and upon adoption expect that any impact would be limited to additional segment expense disclosures in the footnotes to our Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. This ASU becomes effective January 1, 2025. We are assessing the impact of this ASU and upon adoption may be required to include certain additional disclosures in the footnotes to our Consolidated Financial Statements. |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract] | |
Schedule of Depreciation Expense | Total depreciation expense on the Company’s property and equipment for December 31 was as follows: In millions 2023 2022 2021 Depreciation expense $ 110 $ 127 $ 139 |
Schedule of Activities Relating to Capitalized Internal-use Software | The following table identifies the activity relating to capitalized internal-use software for the following periods: Internal-use Software In millions 2023 2022 2021 Beginning balance at January 1 $ 8 $ 10 $ 13 Capitalized 2 3 3 Amortization (5) (5) (6) Ending balance at December 31 $ 5 $ 8 $ 10 |
Schedule of Aggregate Amortization Expense for Internal-Use Software | The aggregate amortization expense (actual and estimated) for internal-use software for the following periods is: Actual For the years ended (estimated) In millions 2023 2024 2025 2026 2027 2028 Internal-use software amortization expense $ 5 $ 4 $ 2 $ 2 $ 2 $ 2 |
Schedule of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share for the years ended December 31 are as follows: In millions, except earnings per share 2023 2022 2021 Net income attributable to common stockholders $ 62 $ 33 $ 147 Weighted average outstanding shares of common stock 99.8 103.2 108.6 Dilutive effect of employee stock options, restricted shares and other stock awards 2.6 2.6 4.3 Common stock and common stock equivalents 102.4 105.8 112.9 Earnings per share: Basic $ 0.62 $ 0.32 $ 1.35 Diluted $ 0.61 $ 0.31 $ 1.30 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Supplemental Financial Information | At December 31 In millions 2023 2022 Accounts receivable Trade $ 294 $ 360 Other 4 16 Accounts receivable, gross 298 376 Less: allowance for doubtful accounts (12) (12) Total accounts receivable, net $ 286 $ 364 Inventories Finished goods $ 11 $ 5 Service parts 2 3 Total inventories $ 13 $ 8 Other current assets Income tax receivable $ 13 $ 13 Pre-paid expenses and Other 71 74 Total other current assets $ 84 $ 87 Property and equipment Land $ 8 $ 8 Buildings and improvements 84 86 Finance lease assets 267 257 Machinery and other equipment 586 553 Property and equipment, gross 945 904 Less: accumulated depreciation (706) (660) Total property and equipment, net $ 239 $ 244 Other current liabilities Sales and value-added taxes $ 12 $ 26 Pension and other postemployment plan liabilities 18 13 Other 75 73 Total other current liabilities $ 105 $ 112 Deferred revenue Deferred revenue, current $ 570 $ 589 Long-term deferred revenue 22 8 Total deferred revenue $ 592 $ 597 Other long-term liabilities Transition tax $ 29 $ 52 Uncertain tax positions 19 22 Other 13 5 Total other long-term liabilities $ 61 $ 79 Twelve Months Ended December 31, In millions 2023 2022 2021 Other expense Foreign currency losses $ 38 $ 30 $ 8 Blue chip swap losses 13 — — Other 13 12 11 Total Other expense $ 64 $ 42 $ 19 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents a disaggregation of revenue for the years ended December 31: In millions 2023 2022 2021 Americas Recurring $ 947 $ 889 $ 879 Perpetual software licenses, hardware and other 14 23 24 Consulting services 128 126 141 Total Americas 1,089 1,038 1,044 EMEA Recurring 363 330 371 Perpetual software licenses, hardware and other 20 33 37 Consulting services 92 102 135 Total EMEA 475 465 543 APJ Recurring 182 200 214 Perpetual software licenses, hardware and other 11 9 16 Consulting services 76 83 100 Total APJ 269 292 330 Total Revenue $ 1,833 $ 1,795 $ 1,917 |
Schedule of Receivables, Contract Assets, and Deferred Revenue from Contracts with Customers | The following table provides information about receivables, contract assets and deferred revenue from contracts with customers: In millions December 31, 2023 December 31, 2022 Accounts receivable, net $ 286 $ 364 Contract assets $ 9 $ 7 Current deferred revenue $ 570 $ 589 Long-term deferred revenue $ 22 $ 8 |
Schedule of 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 December 31, 2023: In millions December 31, 2023 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,681 $ 1,606 $ 1,075 |
Contract Costs (Tables)
Contract Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Activity Related to Capitalized Contract Costs | The following table identifies the activity relating to capitalized contract costs: In millions December 31, 2022 Capitalized Amortization December 31, 2023 Capitalized contract costs $ 92 $ 16 $ (40) $ 68 In millions December 31, 2021 Capitalized Amortization December 31, 2022 Capitalized contract costs $ 111 $ 37 $ (56) $ 92 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Operating Segment | The following table identifies the activity relating to goodwill by operating segment: In millions Balance December 31, Additions Currency Balance December 31, Goodwill Americas $ 252 $ 5 $ — $ 257 EMEA 87 1 2 90 APJ 51 1 (1) 51 Total goodwill $ 390 $ 7 $ 1 $ 398 |
Schedule of Gross Carrying Amount and Accumulated Amortization for Acquired Intangible Assets | The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows: December 31, In millions Amortization Gross Carrying Accumulated Amortization Acquired intangible assets Intellectual property/developed technology 5 $ 14 $ (2) |
Schedule of Aggregate Amortization Expense for Acquired Intangible Assets | The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is: Actual For the years ended (estimated) In millions 2023 2024 2025 2026 2027 2028 Amortization expense $ 2 $ 3 $ 3 $ 3 $ 3 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | For the years ended December 31, income before income taxes consisted of the following: In millions 2023 2022 2021 Income before income taxes United States $ 35 $ 17 $ 67 Foreign 82 50 125 Total income before income taxes $ 117 $ 67 $ 192 |
Schedule of Income Tax Expense (Benefit) | For the years ended December 31, income tax expense consisted of the following: In millions 2023 2022 2021 Income tax expense Current Federal $ 25 $ 29 $ (1) State and local 5 6 5 Foreign 36 25 27 Deferred Federal (12) (21) 3 State and local (2) (3) 1 Foreign 3 (2) 10 Total income tax expense $ 55 $ 34 $ 45 Effective income tax rate 47.0 % 50.7 % 23.4 % |
Schedule of Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate | The following table presents the principal components of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31: 2023 2022 2021 Income tax expense at the U.S. federal tax rate 21.0 % 21.0 % 21.0 % Foreign income tax differential 1.5 % 13.0 % 2.8 % U.S. tax on foreign earnings (1.7) % 2.8 % 0.3 % State and local income taxes (3.2) % (4.2) % (1.3) % U.S. permanent book/tax differences 3.7 % 4.8 % (2.3) % U.S. research and development tax credits (6.1) % (10.4) % (2.6) % Change in valuation allowance 18.6 % 18.7 % 3.2 % Argentina hyperinflationary adjustment 13.1 % — % — % Tax impact of stock compensation 1.7 % 3.6 % 0.8 % Tax Impact of uncertain tax positions (0.8) % 1.5 % 2.0 % Other, net (0.8) % (0.1) % (0.5) % Effective income tax rate 47.0 % 50.7 % 23.4 % |
Schedule of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows: In millions 2023 2022 Deferred income tax assets Employee pensions and other liabilities $ 59 $ 47 Other balance sheet reserves and allowances 15 19 Operating lease liabilities 3 5 Tax loss and credit carryforwards 109 99 Deferred revenue 4 6 Intangibles and capitalized software 178 172 Total deferred income tax assets 368 348 Valuation allowance (90) (69) Net deferred income tax assets 278 279 Deferred income tax liabilities Right of use assets - operating lease 2 3 Property and equipment 32 35 Other 31 35 Total deferred income tax liabilities 65 73 Total net deferred income tax assets $ 213 $ 206 |
Schedule of Liability Related to Uncertain Tax Positions | Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31: In millions 2023 2022 Balance at January 1 $ 41 $ 43 Gross increases for prior period tax positions 1 1 Gross increases for current period tax positions 3 3 Decreases due to the lapse of applicable statute of limitations (5) (3) Decreases relating to settlements with taxing authorities — (3) Balance at December 31 $ 40 $ 41 |
Employee Stock-based Compensa_2
Employee Stock-based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The Company recorded stock-based compensation expense for the years ended December 31 as follows: In millions 2023 2022 2021 Restricted share units 122 122 109 Employee stock purchase program 4 4 3 Total stock-based compensation before income taxes 126 126 112 Tax benefit (23) (23) (19) Total stock-based compensation, net of tax $ 103 $ 103 $ 93 |
Schedule of Restricted Shares and Restricted Share Unit Activity | The following table reports restricted share unit activity during the year ended December 31, 2023: Shares in thousands Number of Weighted- Unvested shares at January 1, 2023 6,996 $ 39.40 Granted 3,926 $ 39.98 Vested (3,542) $ 32.77 Forfeited/canceled (560) $ 43.38 Unvested shares at December 31, 2023 6,820 $ 42.84 |
Schedule of Weighted-Average Fair Value and Total Fair Value of Shares Vested | The following table summarizes the weighted-average fair value of restricted share units granted for Teradata equity awards and the total fair value of shares vested. 2023 2022 2021 Weighted-average fair value of restricted share units granted $ 39.98 $ 47.44 $ 41.18 Total fair value of shares vested (in millions) $ 116 $ 106 $ 93 |
Schedule of Composition of Teradata Restricted Stock Grants | The following table represents the composition of Teradata restricted share unit grants in 2023 Shares in thousands Number of Weighted- Service-based restricted share units 3,065 $ 40.90 Performance-based restricted share units 861 $ 36.69 Total restricted share unit grants 3,926 $ 39.98 |
Schedule of Employee Purchases and Aggregate Cost | Employee purchases and aggregate cost were as follows at December 31: In millions 2023 2022 2021 Employee stock purchases 0.4 0.4 0.3 Aggregate cost $ 13 $ 12 $ 10 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Postemployment Benefit Costs | Pension and postemployment benefit costs for the years ended December 31 were as follows: 2023 2022 2021 In millions Pension Postemployment Pension Postemployment Pension Postemployment Service cost $ 4 $ 12 $ 6 $ 13 $ 7 $ 11 Interest cost 3 2 2 1 1 1 Expected return on plan assets (2) — (2) — (2) — Curtailment gain — — — — (2) — Amortization of actuarial loss — 6 1 8 3 8 Amortization of prior service cost — 1 — — — — Total costs $ 5 $ 21 $ 7 $ 22 $ 7 $ 20 |
Schedule of Accumulated Pension Benefit Obligation | The following tables present the changes in benefit obligations, plan assets, funded status and the reconciliation of the funded status to amounts recognized in the consolidated balance sheets and in accumulated other comprehensive income at December 31: Pension Postemployment In millions 2023 2022 2023 2022 Change in benefit obligation Benefit obligation at January 1 $ 105 $ 143 $ 58 $ 68 Service cost 4 6 12 13 Interest cost 3 2 2 1 Plan participant contributions 1 1 — — Actuarial loss (gain) 5 (28) 13 (12) Benefits paid (3) (2) (29) (15) Settlement (2) (8) — — Plan Amendment — — — 3 Currency translation adjustments 3 (9) — — Benefit obligation at December 31 $ 116 $ 105 $ 56 $ 58 Change in plan assets Fair value of plan assets at January 1 $ 56 $ 67 $ — $ — Actual return on plan assets 3 (3) — — Company contributions 5 5 — — Benefits paid (4) (1) — — Currency translation adjustments 1 (5) — — Plan participant contribution 1 1 — — Settlements (2) (8) — — Fair value of plan assets at December 31 60 56 — — Funded status (underfunded) $ (56) $ (49) $ (56) $ (58) Amounts Recognized in the Consolidated Balance Sheet Non-current assets $ 8 $ 7 $ — $ — Current liabilities (2) (2) (16) (11) Non-current liabilities (62) (54) (40) (47) Net amounts recognized $ (56) $ (49) $ (56) $ (58) Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Unrecognized Net actuarial (gain) loss $ (4) $ (8) $ 57 $ 50 Unrecognized Prior service cost — — 4 5 Total $ (4) $ (8) $ 61 $ 55 The following table presents the accumulated pension benefit obligation at December 31: In millions 2023 2022 Accumulated pension benefit obligation $ 108 $ 99 The following table presents pension plans with accumulated benefit obligations in excess of plan assets at December 31: In millions 2023 2022 Projected benefit obligation $ 92 $ 81 Accumulated benefit obligation $ 87 $ 76 Fair value of plan assets $ 28 $ 25 |
Schedule of Pre-Tax Net Changes in Projected Benefit Obligations Recognized in Other Comprehensive Income | The following table presents the pre-tax net changes in projected benefit obligations recognized in other comprehensive income: Pension Postemployment In millions 2023 2022 2023 2022 Actuarial loss (gain) arising during the year $ 4 $ (23) $ 13 $ (12) Amortization of loss included in net periodic benefit cost — (1) (7) (8) Prior service cost arising during the year — — — 2 Foreign currency exchange — (1) — — Total recognized in other comprehensive income (loss) $ 4 $ (25) $ 6 $ (18) |
Schedule of Weighted-Average Rates and Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | The weighted-average rates and assumptions used to determine benefit obligations at December 31, and net periodic benefit cost for the years ended December 31, were as follows: Pension Benefit Obligations Pension Benefit Cost 2023 2022 2023 2022 2021 Discount rate 3.0% 3.3% 3.1% 1.3% 0.9% Rate of compensation increase 3.2% 3.1% 3.1% 3.0% 2.9% Expected return on plan assets N/A N/A 3.9% 3.1% 3.4% Interest crediting rate assumption 1.6% 1.5% 1.5% 0.9% 0.9% Postemployment Postemployment 2023 2022 2023 2022 2021 Discount rate 4.6% 3.8% 3.8% 2.0% 1.6% Rate of compensation increase 3.0% 3.0% 3.0% 3.0% 3.0% Involuntary turnover rate 4.5% 4.0% 4.0% 4.0% 3.5% |
Schedule of Weighted-Average Asset Allocations, by Category | The weighted-average asset allocations at December 31, by asset category are as follows: Actual Asset Allocation Target Asset 2023 2022 Allocation Equity securities 33% 31% 32% Debt securities 47% 51% 49% Insurance (annuity) contracts 13% 16% 13% Real estate 6% 2% 4% Other 1% —% 2% Total 100% 100% 100% |
Schedule of Pension Plan Assets at Fair Value | The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2023: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Significant In millions December 31, 2023 (Level 1) (Level 2) (Level 3) Money market funds $ 1 $ — $ 1 $ — Equity funds 20 — 20 — Bond/fixed-income funds 28 — 28 — Real estate indirect investments 3 — 3 — Insurance contracts 8 — — 8 Total assets at fair value $ 60 $ — $ 52 $ 8 The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2022: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Significant In millions December 31, 2022 (Level 1) (Level 2) (Level 3) Money market funds $ 2 $ — $ 2 $ — Equity funds 17 — 17 — Bond/fixed-income funds 27 — 27 — Real estate indirect investments 3 — 3 — Insurance contracts 7 — — 7 Total assets at fair value $ 56 $ — $ 49 $ 7 |
Schedule of Changes in Fair Value of the Pension Plan Level 3 Assets | The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2023: In millions Insurance Balance as of January 1, 2023 $ 7 Purchases, sales and settlements, net 1 Balance as of December 31, 2023 $ 8 The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2022: In millions Insurance Balance as of January 1, 2022 $ 7 Purchases, sales and settlements, net — Balance as of December 31, 2022 $ 7 |
Schedule of Estimated Future Benefit Payments | The Company expects to make the following benefit payments, estimated based on the assumptions used to measure the Company's benefit obligation at the end of the year, reflecting past and future service from its pension and postemployment plans: Pension Postemployment In millions Benefits Benefits Year 2024 $ 5 $ 16 2025 $ 6 $ 10 2026 $ 6 $ 10 2027 $ 7 $ 10 2028 $ 7 $ 10 2029 - 2033 $ 40 $ 51 |
Schedule of U.S and International Subsidiary Savings Plans | The following table identifies the expense for the United States and International subsidiary savings plans for the years ended December 31: In millions 2023 2022 2021 U.S. savings plan $ 16 $ 16 $ 16 International subsidiary savings plans $ 10 $ 12 $ 14 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following table identifies the contract notional amount of the Company’s hedging instruments at December 31: In millions 2023 2022 Contract notional amount of foreign exchange forward contracts $ 178 $ 46 Net contract notional amount of foreign exchange forward contracts $ 1 $ 7 Contract notional amount of foreign currency exchange (net investment hedge) $ 150 $ 150 Contract notional amount of interest rate swap $ 450 $ 450 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at December 31, 2023 and December 31, 2022 were as follows: Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant Unobservable Inputs In millions Total (Level 1) (Level 2) (Level 3) Assets Money Market Funds at December 31, 2023 $ 152 $ 152 $ — $ — Money Market Funds at December 31, 2022 $ 211 $ 211 $ — $ — Interest Rate Swap at December 31, 2023 $ 8 $ — $ 8 $ — Interest Rate Swap at December 31, 2022 $ 13 $ — $ 13 $ — Liabilities Foreign Currency Swap at December 31, 2023 $ 8 $ — $ 8 $ — Foreign Currency Swap at December 31, 2022 $ 1 $ — $ 1 $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Annual Contractual Maturities of Outstanding Principal on Term Loan | Annual contractual maturities of outstanding principal on the Term Loan at December 31, 2023, are as follows: In millions Principal payments 2024 19 2025 25 2026 25 2027 431 Total $ 500 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease-related Assets And Liabilities Recorded on the Balance Sheet | The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31: In millions, except weighted average calculations Classification on the Balance Sheet 2023 2022 Assets Operating lease assets Right of use assets - operating lease, net $ 9 $ 13 Finance lease assets Property and equipment, net 156 149 Total lease assets $ 165 $ 162 Liabilities Current Operating Current portion of operating lease liability $ 6 $ 8 Finance Current portion of finance lease liability 66 67 Non current Operating Operating lease liability 6 10 Finance Finance lease liability 63 54 Total lease liabilities $ 141 $ 139 Weighted-average remaining lease term Operating leases 2.16 years 2.37 years Finance leases 2.06 years 2.03 years Weighted-average discount rate Operating leases (1) 5.00 % 5.00 % Finance leases 6.28 % 4.97 % (1) |
Schedule of Lease Costs | The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31: In millions 2023 2022 2021 Finance lease cost Depreciation of leased assets $ 68 $ 69 $ 78 Interest of lease liabilities 7 5 6 Operating lease cost 7 12 17 Sub-lease income from real estate properties owned and leased (5) (5) (5) Total lease cost $ 77 $ 81 $ 96 The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31: In millions 2023 2022 Operating cash flows for operating leases $ 9 $ 15 Operating cash flows for finance leases $ 7 $ 5 Financing cash flows for finance leases $ 82 $ 86 |
Schedule of Undiscounted Cash Flows, Finance Lease Liability | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 8 $ 72 2025 4 50 2026 2 16 2027 — — 2028 — — Thereafter — — Total minimum lease payments 14 138 Less: amount of lease payments representing interest (2) (9) Present value of future minimum lease payments 12 129 Less: current obligations under leases (6) (66) Long-term lease obligations $ 6 $ 63 The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2022: In millions Operating Leases Finance Leases 2023 $ 11 $ 72 2024 8 39 2025 3 17 2026 1 — 2027 — — Thereafter — — Total minimum lease payments 23 128 Less: amount of lease payments representing interest (5) (7) Present value of future minimum lease payments 18 121 Less: current obligations under leases (8) (67) Long-term lease obligations $ 10 $ 54 |
Schedule of Undiscounted Cash Flows, Operating Lease Liability | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2023: In millions Operating Leases Finance Leases 2024 $ 8 $ 72 2025 4 50 2026 2 16 2027 — — 2028 — — Thereafter — — Total minimum lease payments 14 138 Less: amount of lease payments representing interest (2) (9) Present value of future minimum lease payments 12 129 Less: current obligations under leases (6) (66) Long-term lease obligations $ 6 $ 63 The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2022: In millions Operating Leases Finance Leases 2023 $ 11 $ 72 2024 8 39 2025 3 17 2026 1 — 2027 — — Thereafter — — Total minimum lease payments 23 128 Less: amount of lease payments representing interest (5) (7) Present value of future minimum lease payments 18 121 Less: current obligations under leases (8) (67) Long-term lease obligations $ 10 $ 54 |
Schedule of Rental Revenue | The following table includes rental revenue for the years ended December 31: In millions 2023 2022 2021 Rental revenue* $ 216 $ 191 $ 162 *Rental revenue includes hardware maintenance. |
Schedule of Estimated Rental Revenue Expected to be Recognized in the Future | The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2023: In millions Rental Revenue 2024 $ 180 2025 110 2026-27 66 Total $ 356 |
Segment, Other Supplemental I_2
Segment, Other Supplemental Information and Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenue and Segment Gross Profit | The following table presents segment revenue and segment gross profit for the Company for the years ended December 31: In millions 2023 2022 2021 Segment revenue Americas $ 1,089 $ 1,038 $ 1,044 EMEA 475 465 543 APJ 269 292 330 Total revenue 1,833 1,795 1,917 Segment gross profit Americas 689 643 690 EMEA 295 285 337 APJ 149 177 188 Total segment gross profit 1,133 1,105 1,215 Stock-based compensation expense 17 16 18 Acquisition, integration and reorganization-related costs 1 8 11 Total gross profit 1,115 1,081 1,186 Selling, general and administrative expenses 635 650 646 Research and development expenses 294 313 309 Total income from operations $ 186 $ 118 $ 231 |
Schedule of Revenue by Geographic Area | The following table presents revenues by geographic area for the years ended December 31: In millions 2023 2022 2021 United States $ 973 $ 914 $ 922 Americas (excluding United States) 116 124 122 EMEA 475 465 543 APJ 269 292 330 Total revenue $ 1,833 $ 1,795 $ 1,917 |
Schedule of Property and Equipment, Net by Geographic Area | The following table presents property and equipment, net by geographic area at December 31: In millions 2023 2022 United States $ 170 $ 172 Americas (excluding United States) 11 15 EMEA 38 37 APJ 20 20 Property and equipment, net $ 239 $ 244 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (AOCI), Net of Tax | The following table provides information on changes in accumulated other comprehensive (loss) income, net of tax ("AOCI"), for the years ended December 31: In millions Derivatives Defined Foreign Total Balance as of December 31, 2020 $ (21) $ (68) $ (54) $ (143) Other comprehensive income (loss) before reclassifications 11 (1) (12) (2) Amounts reclassified from AOCI — 7 — 7 Net other comprehensive income (loss) 11 6 (12) 5 Balance as of December 31, 2021 $ (10) $ (62) $ (66) $ (138) Other comprehensive income (loss) before reclassifications 19 25 (31) 13 Amounts reclassified from AOCI — 6 — 6 Net other comprehensive income (loss) 19 31 (31) 19 Balance as of December 31, 2022 $ 9 $ (31) $ (97) $ (119) Other comprehensive (loss) income before reclassifications (4) (12) 1 (15) Amounts reclassified from AOCI — 5 — 5 Net other comprehensive (loss) income (4) (7) 1 (10) Balance as of December 31, 2023 $ 5 $ (38) $ (96) $ (129) |
Schedule of Impact and Respective Location of AOCI Reclassifications in Consolidated Statements of Income | The following table presents the impact and respective location of AOCI reclassifications in the Consolidated Statements of Income for the years ended December 31: In millions AOCI Component Location 2023 2022 2021 Other expense Other expense $ (7) $ (9) $ (11) Tax portion Income tax benefit 2 3 4 Total reclassifications Net loss (income) $ (5) $ (6) $ (7) |
Description of Business, Basi_4
Description of Business, Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation expense | $ 110,000,000 | $ 127,000,000 | $ 139,000,000 |
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Internal-Use Software | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Period capitalized on a straight-line basis when the asset is substantially ready for use | 4 years | ||
Minimum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Contract term | 1 month | ||
Standard payment term | 30 days | ||
Maximum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Contract term | 5 years | ||
Standard payment term | 90 days | ||
Equipment | Minimum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 3 years | ||
Equipment | Maximum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 5 years | ||
Building | Minimum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 25 years | ||
Building | Maximum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 45 years | ||
Customer Rental Equipment | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 3 years | ||
Employee Stock Option | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Antidilutive options to purchase were excluded from computation of diluted earnings per share (in shares) | 0 | 0.3 | 0.2 |
Description of Business, Basi_5
Description of Business, Basis of Presentation and Significant Accounting Policies - Activities Relating to Capitalized Software (Details) - Internal-Use Software - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Capitalized Computer Software, Net [Roll Forward] | |||
Beginning balance | $ 8 | $ 10 | $ 13 |
Capitalized | 2 | 3 | 3 |
Amortization | (5) | (5) | (6) |
Ending balance | $ 5 | $ 8 | $ 10 |
Description of Business, Basi_6
Description of Business, Basis of Presentation and Significant Accounting Policies - Aggregate Amortization Expense for Internal-Use Software (Details) - Internal-use software amortization expense $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Acquired Intangible Assets Amortization [Line Items] | |
Actual 2023 | $ 5 |
2024 | 4 |
2025 | 2 |
2026 | 2 |
2027 | 2 |
2028 | $ 2 |
Description of Business, Basi_7
Description of Business, Basis of Presentation and Significant Accounting Policies - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract] | |||
Net income attributable to common stockholders | $ 62 | $ 33 | $ 147 |
Weighted average outstanding shares of common stock (in shares) | 99.8 | 103.2 | 108.6 |
Dilutive effect of employee stock options, restricted shares and other stock awards (in shares) | 2.6 | 2.6 | 4.3 |
Common stock and common stock equivalents (in shares) | 102.4 | 105.8 | 112.9 |
Earnings per share: | |||
Basic (in usd per share) | $ 0.62 | $ 0.32 | $ 1.35 |
Diluted (in usd per share) | $ 0.61 | $ 0.31 | $ 1.30 |
Supplemental Financial Inform_3
Supplemental Financial Information - Schedule of Supplemental Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts receivable | ||||
Trade | $ 294 | $ 294 | $ 360 | |
Other | 4 | 4 | 16 | |
Accounts receivable, gross | 298 | 298 | 376 | |
Less: allowance for doubtful accounts | (12) | (12) | (12) | |
Total accounts receivable, net | 286 | 286 | 364 | |
Inventories | ||||
Finished goods | 11 | 11 | 5 | |
Service parts | 2 | 2 | 3 | |
Total inventories | 13 | 13 | 8 | |
Other current assets | ||||
Income tax receivable | 13 | 13 | 13 | |
Pre-paid expenses and Other | 71 | 71 | 74 | |
Other current assets | 84 | 84 | 87 | |
Property and equipment | ||||
Land | 8 | 8 | 8 | |
Buildings and improvements | 84 | 84 | 86 | |
Finance lease assets | 267 | 267 | 257 | |
Machinery and other equipment | 586 | 586 | 553 | |
Property and equipment, gross | 945 | 945 | 904 | |
Less: accumulated depreciation | (706) | (706) | (660) | |
Total property and equipment, net | 239 | 239 | 244 | |
Other current liabilities | ||||
Sales and value-added taxes | 12 | 12 | 26 | |
Pension and other postemployment plan liabilities | 18 | 18 | 13 | |
Other | 75 | 75 | 73 | |
Total other current liabilities | 105 | 105 | 112 | |
Deferred revenue | ||||
Deferred revenue, current | 570 | 570 | 589 | |
Long-term deferred revenue | 22 | 22 | 8 | |
Total deferred revenue | 592 | 592 | 597 | |
Other long-term liabilities | ||||
Transition tax | 29 | 29 | 52 | |
Uncertain tax positions | 19 | 19 | 22 | |
Other | 13 | 13 | 5 | |
Total other long-term liabilities | 61 | 61 | 79 | |
Other expense | ||||
Foreign currency losses | 38 | 30 | $ 8 | |
Blue chip swap losses | $ 13 | 13 | 0 | 0 |
Other | 13 | 12 | 11 | |
Total Other expense | $ 64 | $ 42 | $ 19 |
Supplemental Financial Inform_4
Supplemental Financial Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Parallel rate, percent to official exchange rate | 168% | 168% | ||
Blue chip swap losses | $ 13 | $ 13 | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,833 | $ 1,795 | $ 1,917 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,089 | 1,038 | 1,044 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 475 | 465 | 543 |
APJ | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 269 | 292 | 330 |
Recurring | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 947 | 889 | 879 |
Recurring | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 363 | 330 | 371 |
Recurring | APJ | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 182 | 200 | 214 |
Perpetual software licenses, hardware and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 45 | 65 | 77 |
Perpetual software licenses, hardware and other | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 14 | 23 | 24 |
Perpetual software licenses, hardware and other | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 20 | 33 | 37 |
Perpetual software licenses, hardware and other | APJ | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11 | 9 | 16 |
Consulting services | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 128 | 126 | 141 |
Consulting services | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 92 | 102 | 135 |
Consulting services | APJ | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 76 | $ 83 | $ 100 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Receivables, Assets, and Current Deferred Revenue (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 286 | $ 364 |
Contract assets | 9 | 7 |
Current deferred revenue | 570 | 589 |
Long-term deferred revenue | $ 22 | $ 8 |
Revenue from Contract with Cust
Revenue from Contract with Customer - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized from amounts included in deferred revenue | $ 490 |
Amount of customer only general cancellation | 1,442 |
Amount of non-cancelable contracts | $ 646 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Transaction Price Allocated to Unsatisfied Obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied obligations | $ 2,681 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied obligations | $ 1,606 |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied obligations | $ 1,075 |
Expected timing of satisfaction, period |
Contract Costs (Details)
Contract Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Capitalized contract cost, amortization period | 4 years | |
Capitalized Contract Cost, Net [Roll Forward] | ||
Capitalized contract costs, beginning balance | $ 92 | $ 111 |
Capitalized | 16 | 37 |
Amortization | (40) | (56) |
Capitalized contract costs, ending balance | $ 68 | $ 92 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Goodwill by Operating Segment (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 390 |
Additions | 7 |
Currency Translation Adjustments | 1 |
Goodwill, ending balance | 398 |
Americas | |
Goodwill | |
Goodwill, beginning balance | 252 |
Additions | 5 |
Currency Translation Adjustments | 0 |
Goodwill, ending balance | 257 |
EMEA | |
Goodwill | |
Goodwill, beginning balance | 87 |
Additions | 1 |
Currency Translation Adjustments | 2 |
Goodwill, ending balance | 90 |
APJ | |
Goodwill | |
Goodwill, beginning balance | 51 |
Additions | 1 |
Currency Translation Adjustments | (1) |
Goodwill, ending balance | $ 51 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 USD ($) | Dec. 31, 2023 reporting_unit | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of goodwill and acquired intangibles | $ | $ 0 | |
Number of reporting units | reporting_unit | 3 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Gross Carrying Amount and Accumulated Amortization for Acquired Intangible Assets (Details) - Intellectual property/developed technology $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill [Line Items] | |
Amortization Life (in Years) | 5 years |
Gross Carrying Amount | $ 14 |
Accumulated Amortization Amount | $ (2) |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets - Schedule of Aggregate Amortization Expense for Acquired Intangible Assets (Details) - Acquired Intangible Assets $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Actual 2023 | $ 2 |
2024 | 3 |
2025 | 3 |
2026 | 3 |
2027 | 3 |
2028 | $ 0 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
United States | $ 35 | $ 17 | $ 67 |
Foreign | 82 | 50 | 125 |
Total income before income taxes | $ 117 | $ 67 | $ 192 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 25 | $ 29 | $ (1) |
State and local | 5 | 6 | 5 |
Foreign | 36 | 25 | 27 |
Deferred | |||
Federal | (12) | (21) | 3 |
State and local | (2) | (3) | 1 |
Foreign | 3 | (2) | 10 |
Total income tax expense | $ 55 | $ 34 | $ 45 |
Effective income tax rate | 47% | 50.70% | 23.40% |
Income Taxes - Difference Betwe
Income Taxes - Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at the U.S. federal tax rate | 21% | 21% | 21% |
Foreign income tax differential | 1.50% | 13% | 2.80% |
U.S. tax on foreign earnings | (1.70%) | 2.80% | 0.30% |
State and local income taxes | (3.20%) | (4.20%) | (1.30%) |
U.S. permanent book/tax differences | 3.70% | 4.80% | (2.30%) |
U.S. research and development tax credits | (6.10%) | (10.40%) | (2.60%) |
Change in valuation allowance | 18.60% | 18.70% | 3.20% |
Argentina hyperinflationary adjustment | 13.10% | 0% | 0% |
Tax impact of stock compensation | 1.70% | 3.60% | 0.80% |
Tax Impact of uncertain tax positions | (0.80%) | 1.50% | 2% |
Other, net | (0.80%) | (0.10%) | (0.50%) |
Effective income tax rate | 47% | 50.70% | 23.40% |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Discrete income tax expense (benefit) | $ 18 | $ (1) | $ (8) |
Translation impact on deferred tax and tax payable balances | 15 | ||
Discrete tax expense associated with valuation allowances | 10 | 5 | |
Discrete tax expense (benefit) related to an uncertain tax position | (4) | 1 | |
Tax benefit from equity compensation | 3 | ||
True up adjustment to prior year tax benefit | 2 | 3 | |
Tax benefit related to equity compensation vesting | 4 | 4 | |
Tax expense (benefit) related to the reduction in the Transition Tax | (2) | ||
Net operating loss and tax credit carryforwards | 112 | ||
Tax credit carryforward, FIN 48 reserve | 21 | ||
Deferred foreign withholding tax expense | 5 | ||
Tax liability related to uncertain tax positions | 40 | 41 | $ 43 |
Uncertain tax positions | 19 | $ 22 | |
Uncertain tax positions related to business acquisitions not recognized on balance sheet | 21 | ||
Uncertain tax positions recognized as current liability on balance sheet | 40 | ||
Interest accruals related to uncertain tax liabilities | 3 | ||
United States and Certain Foreign Jurisdictions | |||
Income Taxes | |||
Net operating loss carryforwards in the United States and certain foreign jurisdictions | 14 | ||
Domestic Tax Authority | |||
Income Taxes | |||
Net operating loss carryforwards in the United States and certain foreign jurisdictions | 15 | ||
Valuation allowance | 15 | ||
Research Tax Credit Carryforward | State and Local Jurisdiction | |||
Income Taxes | |||
Valuation allowance | 61 | ||
Research and development tax credit carryforwards | $ 83 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets | ||
Employee pensions and other liabilities | $ 59 | $ 47 |
Other balance sheet reserves and allowances | 15 | 19 |
Operating lease liabilities | 3 | 5 |
Tax loss and credit carryforwards | 109 | 99 |
Deferred revenue | 4 | 6 |
Intangibles and capitalized software | 178 | 172 |
Total deferred income tax assets | 368 | 348 |
Valuation allowance | (90) | (69) |
Net deferred income tax assets | 278 | 279 |
Deferred income tax liabilities | ||
Right of use assets - operating lease | 2 | 3 |
Property and equipment | 32 | 35 |
Other | 31 | 35 |
Total deferred income tax liabilities | 65 | 73 |
Total net deferred income tax assets | $ 213 | $ 206 |
Income Taxes - Liability Relate
Income Taxes - Liability Related to Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 41 | $ 43 |
Gross increases for prior period tax positions | 1 | 1 |
Gross increases for current period tax positions | 3 | 3 |
Decreases due to the lapse of applicable statute of limitations | (5) | (3) |
Decreases relating to settlements with taxing authorities | 0 | (3) |
Ending balance | $ 40 | $ 41 |
Employee Stock-based Compensa_3
Employee Stock-based Compensation Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Restricted share units | $ 122 | $ 122 | $ 109 |
Employee stock purchase program | 4 | 4 | 3 |
Total stock-based compensation before income taxes | 126 | 126 | 112 |
Tax benefit | (23) | (23) | (19) |
Total stock-based compensation, net of tax | $ 103 | $ 103 | $ 93 |
Employee Stock-based Compensa_4
Employee Stock-based Compensation Plans - Additional Information (Details) shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
2023 SIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized to be issued (in shares) | 3,750 |
New Employee Stock Inducement Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized to be issued (in shares) | 2,200 |
Employee Stock Purchase Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee stock purchase program purchase period | 6 months |
Employee stock purchase program discount from average market price (as a percentage) | 15% |
Percentage of authorized payroll deductions for common stock purchases by employees (as a percentage) | 10% |
Shares authorized to be issued under the Employee Stock Purchase Program (in shares) | 9,300 |
Remaining shares authorized to be issued under the Employee Stock Purchase Program (in shares) | 2,600 |
Service-Based Awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Performance Based Awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 1 year |
Performance Based Awards | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost related to unvested stock grants | $ | $ 165 |
Cost expected to be recognized over a weighted-average period (in years) | 1 year |
Employee Stock-based Compensa_5
Employee Stock-based Compensation Plans - Restricted Shares and Restricted Share Unit Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Shares | |
Unvested shares at period start (in shares) | shares | 6,996 |
Granted (in shares) | shares | 3,926 |
Vested (in shares) | shares | (3,542) |
Forfeited/canceled (in shares) | shares | (560) |
Unvested shares at period end (in shares) | shares | 6,820 |
Weighted- Average Grant Date Fair Value per Share | |
Unvested shares at period start (in usd per share) | $ / shares | $ 39.40 |
Granted (in usd per share) | $ / shares | 39.98 |
Vested (in usd per share) | $ / shares | 32.77 |
Forfeited/canceled (in usd per share) | $ / shares | 43.38 |
Unvested shares at period end (in usd per share) | $ / shares | $ 42.84 |
Employee Stock-based Compensa_6
Employee Stock-based Compensation Plans - Weighted-Average Fair Value and Total Fair Value of Shares Vested (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of restricted shares units granted (in usd per share) | $ 39.98 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of restricted shares units granted (in usd per share) | $ 39.98 | $ 47.44 | $ 41.18 |
Total fair value of shares vested (in millions) | $ 116 | $ 106 | $ 93 |
Employee Stock-based Compensa_7
Employee Stock-based Compensation Plans - Composition of Teradata Restricted Stock Grants (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares (in shares) | shares | 3,926 |
Weighted-average fair value of restricted shares units granted (in usd per share) | $ / shares | $ 39.98 |
Service-based restricted share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares (in shares) | shares | 3,065 |
Weighted-average fair value of restricted shares units granted (in usd per share) | $ / shares | $ 40.90 |
Performance-based restricted share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares (in shares) | shares | 861 |
Weighted-average fair value of restricted shares units granted (in usd per share) | $ / shares | $ 36.69 |
Employee Stock-based Compensa_8
Employee Stock-based Compensation Plans - Employee Purchases and Aggregate Cost (Details) - Employee Stock Puchase Program - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||
Employee stock purchases (in shares) | 0.4 | 0.4 | 0.3 |
Aggregate cost | $ 13 | $ 12 | $ 10 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Pension and Postemployment Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4 | $ 6 | $ 7 |
Interest cost | 3 | 2 | 1 |
Expected return on plan assets | (2) | (2) | (2) |
Curtailment gain | 0 | 0 | (2) |
Amortization of actuarial loss | 0 | 1 | 3 |
Amortization of prior service cost | 0 | 0 | 0 |
Total costs | 5 | 7 | 7 |
Postemployment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 12 | 13 | 11 |
Interest cost | 2 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Amortization of actuarial loss | 6 | 8 | 8 |
Amortization of prior service cost | 1 | 0 | 0 |
Total costs | $ 21 | $ 22 | $ 20 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Benefit Obligations Plan Assets Funded Status and Reconciliation of Funded Status to Amounts Recognized in Consolidated Balance Sheets and in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | |||
Change in benefit obligation | |||
Benefit obligation at January 1 | $ 105 | $ 143 | |
Service cost | 4 | 6 | $ 7 |
Interest cost | 3 | 2 | 1 |
Plan participant contributions | 1 | 1 | |
Actuarial loss (gain) | 5 | (28) | |
Benefits paid | (3) | (2) | |
Settlement | (2) | (8) | |
Plan Amendment | 0 | 0 | |
Currency translation adjustments | 3 | (9) | |
Benefit obligation at December 31 | 116 | 105 | 143 |
Change in plan assets | |||
Beginning balance | 56 | 67 | |
Actual return on plan assets | 3 | (3) | |
Company contributions | 5 | 5 | |
Benefits paid | (4) | (1) | |
Currency translation adjustments | 1 | (5) | |
Plan participant contribution | 1 | 1 | |
Settlements | (2) | (8) | |
Ending balance | 60 | 56 | 67 |
Funded status (underfunded) | (56) | (49) | |
Amounts Recognized in the Consolidated Balance Sheet | |||
Non-current assets | 8 | 7 | |
Current liabilities | (2) | (2) | |
Non-current liabilities | (62) | (54) | |
Net amounts recognized | (56) | (49) | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||
Unrecognized Net actuarial (gain) loss | (4) | (8) | |
Unrecognized Prior service cost | 0 | 0 | |
Total | (4) | (8) | |
Postemployment | |||
Change in benefit obligation | |||
Benefit obligation at January 1 | 58 | 68 | |
Service cost | 12 | 13 | 11 |
Interest cost | 2 | 1 | 1 |
Plan participant contributions | 0 | 0 | |
Actuarial loss (gain) | 13 | (12) | |
Benefits paid | (29) | (15) | |
Settlement | 0 | 0 | |
Plan Amendment | 0 | 3 | |
Currency translation adjustments | 0 | 0 | |
Benefit obligation at December 31 | 56 | 58 | 68 |
Change in plan assets | |||
Beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Currency translation adjustments | 0 | 0 | |
Plan participant contribution | 0 | 0 | |
Settlements | 0 | 0 | |
Ending balance | 0 | 0 | $ 0 |
Funded status (underfunded) | (56) | (58) | |
Amounts Recognized in the Consolidated Balance Sheet | |||
Non-current assets | 0 | 0 | |
Current liabilities | (16) | (11) | |
Non-current liabilities | (40) | (47) | |
Net amounts recognized | (56) | (58) | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||
Unrecognized Net actuarial (gain) loss | 57 | 50 | |
Unrecognized Prior service cost | 4 | 5 | |
Total | $ 61 | $ 55 |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated Pension Benefit Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated pension benefit obligation | $ 108 | $ 99 |
Employee Benefit Plans - Accu_2
Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 92 | $ 81 |
Accumulated benefit obligation | 87 | 76 |
Fair value of plan assets | $ 28 | $ 25 |
Employee Benefit Plans - Pre-ta
Employee Benefit Plans - Pre-tax Net Changes in Projected Benefit Obligations Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in other comprehensive income (loss) | $ 17 | $ (33) | $ 2 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss (gain) arising during the year | 4 | (23) | |
Amortization of loss included in net periodic benefit cost | 0 | (1) | |
Prior service cost arising during the year | 0 | 0 | |
Foreign currency exchange | 0 | (1) | |
Total recognized in other comprehensive income (loss) | 4 | (25) | |
Postemployment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss (gain) arising during the year | 13 | (12) | |
Amortization of loss included in net periodic benefit cost | (7) | (8) | |
Prior service cost arising during the year | 0 | 2 | |
Foreign currency exchange | 0 | 0 | |
Total recognized in other comprehensive income (loss) | $ 6 | $ (18) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | |||
Pension Benefit Obligations | |||
Discount rate | 3% | 3.30% | |
Rate of compensation increase | 3.20% | 3.10% | |
Interest crediting rate assumption | 1.60% | 1.50% | |
Pension Benefit Cost | |||
Discount rate | 3.10% | 1.30% | 0.90% |
Rate of compensation increase | 3.10% | 3% | 2.90% |
Expected return on plan assets | 3.90% | 3.10% | 3.40% |
Interest crediting rate assumption | 1.50% | 0.90% | 0.90% |
Postemployment | |||
Pension Benefit Obligations | |||
Discount rate | 4.60% | 3.80% | |
Rate of compensation increase | 3% | 3% | |
Involuntary turnover rate | 4.50% | 4% | |
Pension Benefit Cost | |||
Discount rate | 3.80% | 2% | 1.60% |
Rate of compensation increase | 3% | 3% | 3% |
Expected return on plan assets | 4% | 4% | 3.50% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Retirement Benefits [Abstract] | |
Amount of gains and losses to be amortized to the extent that they exceed 10% of the higher of the market-related value or the projected benefit obligation of each respective plan | 10% |
Estimated benefits in the next fiscal year | $ 2 |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Asset Allocations by Asset Category (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Actual Asset Allocation as of December 31 | 100% | 100% |
Target Asset Allocation | 100% | |
Equity securities | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Actual Asset Allocation as of December 31 | 33% | 31% |
Target Asset Allocation | 32% | |
Debt securities | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Actual Asset Allocation as of December 31 | 47% | 51% |
Target Asset Allocation | 49% | |
Insurance (annuity) contracts | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Actual Asset Allocation as of December 31 | 13% | 16% |
Target Asset Allocation | 13% | |
Real estate | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Actual Asset Allocation as of December 31 | 6% | 2% |
Target Asset Allocation | 4% | |
Other | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Actual Asset Allocation as of December 31 | 1% | 0% |
Target Asset Allocation | 2% |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Pension Plan Assets at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | $ 8 | $ 7 | $ 7 |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 60 | 56 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 52 | 49 | |
Recurring | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 8 | 7 | |
Recurring | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 1 | 2 | |
Recurring | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Money market funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 1 | 2 | |
Recurring | Money market funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 20 | 17 | |
Recurring | Equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Equity funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 20 | 17 | |
Recurring | Equity funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Bond/fixed-income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 28 | 27 | |
Recurring | Bond/fixed-income funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Bond/fixed-income funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 28 | 27 | |
Recurring | Bond/fixed-income funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Real estate indirect investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 3 | 3 | |
Recurring | Real estate indirect investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Real estate indirect investments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 3 | 3 | |
Recurring | Real estate indirect investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 8 | 7 | |
Recurring | Insurance contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Insurance contracts | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Recurring | Insurance contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | $ 8 | $ 7 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Changes in Fair Value of Pension Plan Level 3 Assets (Details) - Insurance contracts - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Beginning balance | $ 7 | $ 7 |
Purchases, sales and settlements, net | 1 | 0 |
Ending balance | $ 8 | $ 7 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 5 |
2025 | 6 |
2026 | 6 |
2027 | 7 |
2028 | 7 |
2029 - 2033 | 40 |
Post Employment Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 16 |
2025 | 10 |
2026 | 10 |
2027 | 10 |
2028 | 10 |
2029 - 2033 | $ 51 |
Employee Benefit Plans - U.S an
Employee Benefit Plans - U.S and International Subsidiary Savings Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
U.S. savings plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense for the U.S. and international subsidiary savings plan | $ 16 | $ 16 | $ 16 |
International subsidiary savings plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expense for the U.S. and international subsidiary savings plan | $ 10 | $ 12 | $ 14 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) € in Millions, $ in Millions | 1 Months Ended | |||||
Jun. 28, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2018 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Medium-term Notes | Credit Agreement Issued In June 2022 | Line of Credit | ||||||
Derivative | ||||||
Principal outstanding | $ 500 | |||||
Cross Currency Interest Rate Contract | ||||||
Derivative | ||||||
Contract notional amount of interest rate swap | € 143 | $ 150 | $ 150 | |||
Interest rate swap, agreement period | 4 years | |||||
Interest Rate Swap | ||||||
Derivative | ||||||
Contract notional amount of interest rate swap | $ 450 | $ 500 | $ 450 | $ 450 | $ 450 | |
Interest rate swap, agreement period | 5 years | 5 years | 5 years | |||
Percentage of principal | 90% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Derivative Financial Instruments (Details) € in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2022 USD ($) | Jun. 28, 2022 USD ($) | Jun. 30, 2018 USD ($) |
Derivative | ||||||
Net contract notional amount of foreign exchange forward contracts | $ 1 | $ 7 | ||||
Foreign Exchange Contract | ||||||
Derivative | ||||||
Contract notional amount of foreign exchange forward contracts | 178 | 46 | ||||
Cross Currency Interest Rate Contract | ||||||
Derivative | ||||||
Contract notional amount of foreign exchange forward contracts | 150 | € 143 | $ 150 | |||
Interest Rate Swap | ||||||
Derivative | ||||||
Contract notional amount of foreign exchange forward contracts | $ 450 | $ 450 | $ 450 | $ 450 | $ 500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - patent | 1 Months Ended | |
Aug. 31, 2020 | Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency on patents allegedly infringed upon (in patents) | 5 | |
Gain contingency on patents allegedly infringed upon (in patents) | 4 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) € in Millions, $ in Millions | 1 Months Ended | |||||
Jun. 28, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2018 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Interest Rate Swap | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Term of contract | 5 years | 5 years | 5 years | |||
Contract notional amount of foreign exchange forward contracts | $ 450 | $ 500 | $ 450 | $ 450 | $ 450 | |
Cross Currency Interest Rate Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Term of contract | 4 years | |||||
Contract notional amount of foreign exchange forward contracts | € 143 | $ 150 | 150 | |||
Derivative asset | $ 150 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | $ 152 | $ 211 |
Quoted Price as in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | 152 | 211 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | 0 | 0 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative asset | 8 | 13 |
Interest Rate Swap | Quoted Price as in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative asset | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative asset | 8 | 13 |
Interest Rate Swap | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative asset | 0 | 0 |
Cross Currency Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | 8 | 1 |
Cross Currency Interest Rate Contract | Quoted Price as in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | 0 | 0 |
Cross Currency Interest Rate Contract | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | 8 | 1 |
Cross Currency Interest Rate Contract | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) | Jun. 28, 2022 USD ($) renewal | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2018 USD ($) | Jun. 30, 2018 USD ($) |
Debt Instrument | ||||||
Borrowings outstanding | $ 0 | $ 0 | ||||
Interest Rate Swap | ||||||
Debt Instrument | ||||||
Percentage of principal | 90% | |||||
Contract notional amount of foreign exchange forward contracts | $ 450,000,000 | 450,000,000 | 450,000,000 | $ 450,000,000 | $ 500,000,000 | |
Revolving Credit Facility | Revolving Credit Facility Ending In June 2023 | ||||||
Debt Instrument | ||||||
Credit facility maximum borrowing capacity | $ 400,000,000 | |||||
Repayments of line of credit | $ 400,000,000 | |||||
Remaining borrowing capacity | 400,000,000 | 400,000,000 | ||||
Line of Credit | Credit Agreement Issued In June 2022 | ||||||
Debt Instrument | ||||||
Number of renewals | renewal | 2 | |||||
Renewal term | 1 year | |||||
Line of Credit | Medium-term Notes | Credit Agreement Issued In June 2022 | ||||||
Debt Instrument | ||||||
Revolving credit agreement period | 5 years | |||||
Debt instrument, face amount | $ 500,000,000 | |||||
Term loan, payable quarterly installments (percentage) | 1.25% | |||||
Principal outstanding | $ 500,000,000 | |||||
Line of Credit | Revolving Credit Facility | Credit Agreement Issued In June 2022 | ||||||
Debt Instrument | ||||||
Revolving credit agreement period | 5 years | |||||
Credit facility maximum borrowing capacity | $ 400,000,000 | |||||
Additional borrowings available | 450,000,000 | |||||
Line of Credit | Letter of Credit | Credit Agreement Issued In June 2022 | ||||||
Debt Instrument | ||||||
Credit facility maximum borrowing capacity | 50,000,000 | |||||
Line of Credit | Bridge Loan | Credit Agreement Issued In June 2022 | ||||||
Debt Instrument | ||||||
Credit facility maximum borrowing capacity | $ 50,000,000 | |||||
Senior Notes | Senior Unsecured term loan Issued June 2018 | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | $ 500,000,000 | |||||
Term Loan | ||||||
Debt Instrument | ||||||
Unamortized debt issuance expense | 1,000,000 | |||||
Term Loan | Senior Unsecured term loan Issued June 2018 | ||||||
Debt Instrument | ||||||
Long-term debt | $ 500,000,000 | $ 500,000,000 | ||||
Percentage with fixed rate | 90% | |||||
Fixed rate on term loan (percentage) | 3.25% | |||||
All-in fixed rate | 4.44% | 4.24% |
Debt - Annual Contractual Matur
Debt - Annual Contractual Maturities of Outstanding Principal on Term Loan (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 19 |
2025 | 25 |
2026 | 25 |
2027 | 431 |
Total | $ 500 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 4 years |
Leases - Lease-related Assets a
Leases - Lease-related Assets and Liabilities recorded on the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease assets | $ 9 | $ 13 |
Finance lease assets | 156 | 149 |
Total lease assets | $ 165 | $ 162 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Liabilities | ||
Current portion of operating lease liability | $ 6 | $ 8 |
Current portion of finance lease liability | 66 | 67 |
Noncurrent portion of operating lease liability | 6 | 10 |
Noncurrent portion of finance lease liability | 63 | 54 |
Total lease liabilities | $ 141 | $ 139 |
Weighted-average remaining lease term | ||
Weighted-average remaining lease term, operating leases | 2 years 1 month 28 days | 2 years 4 months 13 days |
Weighted-average remaining lease term, finance leases | 2 years 21 days | 2 years 10 days |
Weighted-average discount rate | ||
Weighted-average discount rate, operating leases | 5% | 5% |
Weighted-average discount rate, finance leases | 6.28% | 4.97% |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease cost | |||
Depreciation of leased assets | $ 68 | $ 69 | $ 78 |
Interest of lease liabilities | 7 | 5 | 6 |
Operating lease cost | 7 | 12 | 17 |
Sub-lease income from real estate properties owned and leased | (5) | (5) | (5) |
Total lease cost | $ 77 | $ 81 | $ 96 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating cash flows for operating leases | $ 9 | $ 15 | |
Operating cash flows for finance leases | 7 | 5 | |
Financing cash flows for finance leases | $ 82 | $ 86 | $ 92 |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease liability to be paid, year one | $ 8 | $ 11 |
Operating lease liability to be paid, year two | 4 | 8 |
Operating lease liability to be paid, year three | 2 | 3 |
Operating lease liability to be paid, year four | 0 | 1 |
Operating lease liability to be paid, year five | 0 | 0 |
Thereafter | 0 | 0 |
Total minimum lease payments | 14 | 23 |
Less: amount of lease payments representing interest | (2) | (5) |
Present value of future minimum lease payments | 12 | 18 |
Less: current obligations under leases | (6) | (8) |
Long-term lease obligations | 6 | 10 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
Finance lease liability to be paid, year one | 72 | 72 |
Finance lease liability to be paid, year two | 50 | 39 |
Finance lease liability to be paid, year three | 16 | 17 |
Finance lease liability to be paid, year four | 0 | 0 |
Finance lease liability to be paid, year five | 0 | 0 |
Thereafter | 0 | 0 |
Total minimum lease payments | 138 | 128 |
Less: amount of lease payments representing interest | (9) | (7) |
Present value of future minimum lease payments | 129 | 121 |
Less: current obligations under leases | (66) | (67) |
Long-term lease obligations | $ 63 | $ 54 |
Leases - Lessor Rental Revenue
Leases - Lessor Rental Revenue for Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Rental revenue | $ 216 | $ 191 | $ 162 |
Leases - Estimated Rental Reven
Leases - Estimated Rental Revenue Expected to be Recognized in the Future (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 180 |
2025 | 110 |
2026-27 | 66 |
Total | $ 356 |
Segment, Other Supplemental I_3
Segment, Other Supplemental Information and Concentrations - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment, Other Supplemental I_4
Segment, Other Supplemental Information and Concentrations - Segment Revenue and Gross Margin for Company (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 1,833 | $ 1,795 | $ 1,917 |
Total gross profit | 1,115 | 1,081 | 1,186 |
Total segment gross profit | 1,133 | 1,105 | 1,215 |
Stock-based compensation expense | 17 | 16 | 18 |
Acquisition, integration and reorganization-related costs | 1 | 8 | 11 |
Selling, general and administrative expenses | 635 | 650 | 646 |
Research and development expenses | 294 | 313 | 309 |
Income from operations | 186 | 118 | 231 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,089 | 1,038 | 1,044 |
Total gross profit | 689 | 643 | 690 |
Operating Segments | EMEA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 475 | 465 | 543 |
Total gross profit | 295 | 285 | 337 |
Operating Segments | APJ | |||
Segment Reporting Information [Line Items] | |||
Revenue | 269 | 292 | 330 |
Total gross profit | $ 149 | $ 177 | $ 188 |
Segment, Other Supplemental I_5
Segment, Other Supplemental Information and Concentrations - Schedule of Revenue by Geographical Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 1,833 | $ 1,795 | $ 1,917 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 973 | 914 | 922 |
Americas (excluding United States) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 116 | 124 | 122 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 475 | 465 | 543 |
APJ | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 269 | $ 292 | $ 330 |
Segment, Other Supplemental I_6
Segment, Other Supplemental Information and Concentrations - Schedule of Property and Equipment by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Identifiable Assets By Segment [Line Items] | ||
Property and equipment, net | $ 239 | $ 244 |
United States | ||
Schedule Of Identifiable Assets By Segment [Line Items] | ||
Property and equipment, net | 170 | 172 |
Americas (excluding United States) | ||
Schedule Of Identifiable Assets By Segment [Line Items] | ||
Property and equipment, net | 11 | 15 |
EMEA | ||
Schedule Of Identifiable Assets By Segment [Line Items] | ||
Property and equipment, net | 38 | 37 |
APJ | ||
Schedule Of Identifiable Assets By Segment [Line Items] | ||
Property and equipment, net | $ 20 | $ 20 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 258 | $ 460 | $ 400 |
Other comprehensive (loss) income before reclassifications | (15) | 13 | (2) |
Amounts reclassified from AOCI | 5 | 6 | 7 |
Other comprehensive (loss) income | (10) | 19 | 5 |
Ending balance | 135 | 258 | 460 |
Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 9 | (10) | (21) |
Other comprehensive (loss) income before reclassifications | (4) | 19 | 11 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Other comprehensive (loss) income | (4) | 19 | 11 |
Ending balance | 5 | 9 | (10) |
Defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (31) | (62) | (68) |
Other comprehensive (loss) income before reclassifications | (12) | 25 | (1) |
Amounts reclassified from AOCI | 5 | 6 | 7 |
Other comprehensive (loss) income | (7) | 31 | 6 |
Ending balance | (38) | (31) | (62) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (97) | (66) | (54) |
Other comprehensive (loss) income before reclassifications | 1 | (31) | (12) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Other comprehensive (loss) income | 1 | (31) | (12) |
Ending balance | (96) | (97) | (66) |
Total AOCI | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (119) | (138) | (143) |
Ending balance | $ (129) | $ (119) | $ (138) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Impact and Location of AOCI Reclassifications in Consolidated Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other expense | $ (64) | $ (42) | $ (19) |
Income tax benefit | (55) | (34) | (45) |
Net loss (income) | 62 | 33 | 147 |
Amount Reclassified from of Accumulated Other Comprehensive Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other expense | (7) | (9) | (11) |
Income tax benefit | 2 | 3 | 4 |
Net loss (income) | $ (5) | $ (6) | $ (7) |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 12 | $ 9 | $ 14 |
Provision/reversals Charged to Costs & Expenses | 1 | 5 | (1) |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (1) | (2) | (4) |
Balance at End of Period | 12 | 12 | 9 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 69 | 58 | 51 |
Provision/reversals Charged to Costs & Expenses | 21 | 11 | 7 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 90 | $ 69 | $ 58 |