Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Oct. 25, 2013 |
Document Information | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'TDC | ' |
Entity Registrant Name | 'TERADATA CORP /DE/ | ' |
Entity Central Index Key | '0000816761 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 163.4 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenue | ' | ' | ' | ' | ||||
Product revenue | $306 | [1] | $306 | [1] | $858 | [1] | $935 | [1] |
Service revenue | 360 | 341 | 1,065 | 990 | ||||
Total revenue | 666 | 647 | 1,923 | 1,925 | ||||
Costs and operating expenses | ' | ' | ' | ' | ||||
Cost of products | 118 | 95 | 312 | 297 | ||||
Cost of services | 190 | 191 | 569 | 547 | ||||
Selling, general and administrative expenses | 183 | 174 | 547 | 518 | ||||
Research and development expenses | 43 | 44 | 140 | 133 | ||||
Total costs and operating expenses | 534 | 504 | 1,568 | 1,495 | ||||
Income from operations | 132 | 143 | 355 | 430 | ||||
Other expense, net | 0 | 0 | -1 | -1 | ||||
Income before income taxes | 132 | 143 | 354 | 429 | ||||
Income tax expense | 34 | 39 | 89 | 122 | ||||
Net income | $98 | $104 | $265 | $307 | ||||
Net income per weighted average common share | ' | ' | ' | ' | ||||
Basic | $0.60 | $0.62 | $1.62 | $1.82 | ||||
Diluted | $0.59 | $0.60 | $1.59 | $1.78 | ||||
Weighted average common shares outstanding | ' | ' | ' | ' | ||||
Basic | 163.2 | 168.8 | 164 | 168.4 | ||||
Diluted | 166.4 | 172.4 | 167.1 | 172.1 | ||||
[1] | Our data warehousing software and hardware products are often sold and delivered together in the form of a "node" of capacity as an integrated technology solution. Accordingly, it is impracticable to provide the breakdown of revenue from various types of software and hardware products. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $98 | $104 | $265 | $307 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 13 | 13 | -4 | 8 |
Defined benefit plans: | ' | ' | ' | ' |
Defined benefit plan adjustment, before tax | -6 | -2 | -6 | -2 |
Defined benefit plan adjustment, tax portion | 2 | 0 | 2 | 0 |
Defined benefit plan adjustment, net of tax | -4 | -2 | -4 | -2 |
Other comprehensive income (loss) | 9 | 11 | -8 | 6 |
Comprehensive income | $107 | $115 | $257 | $313 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $862 | $729 |
Accounts receivable, net | 546 | 668 |
Inventories | 67 | 47 |
Other current assets | 85 | 90 |
Total current assets | 1,560 | 1,534 |
Property and equipment, net | 157 | 150 |
Capitalized software, net | 189 | 173 |
Goodwill | 945 | 932 |
Acquired intangible assets, net | 159 | 186 |
Deferred income taxes | 25 | 29 |
Other assets | 83 | 62 |
Total assets | 3,118 | 3,066 |
Current liabilities | ' | ' |
Accounts payable | 98 | 141 |
Payroll and benefits liabilities | 124 | 158 |
Deferred revenue | 374 | 375 |
Other current liabilities | 126 | 132 |
Total current liabilities | 722 | 806 |
Long-term debt | 255 | 274 |
Pension and other postemployment plan liabilities | 81 | 73 |
Long-term deferred revenue | 26 | 30 |
Deferred tax liabilities | 87 | 83 |
Other liabilities | 29 | 21 |
Total liabilities | 1,200 | 1,287 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock: par value $0.01 per share, 100.0 shares authorized, 0.0 shares issued and outstanding at September 30, 2013 and December 31, 2012 | 0 | 0 |
Common stock: par value $0.01 per share, 500.0 shares authorized, 190.5 and 189.5 shares issued at September 30, 2013 and December 31, 2012, respectively | 2 | 2 |
Paid-in capital | 963 | 898 |
Treasury stock: 27.1 and 23.8 shares at September 30, 2013 and December 31, 2012, respectively | -989 | -806 |
Retained earnings | 1,921 | 1,656 |
Accumulated other comprehensive income | 21 | 29 |
Total stockholders' equity | 1,918 | 1,779 |
Total liabilities and stockholders' equity | $3,118 | $3,066 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 100 | 100 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500 | 500 |
Common stock, shares issued | 190.5 | 189.5 |
Treasury stock, shares | 27.1 | 23.8 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net income | $265 | $307 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 109 | 93 |
Stock-based compensation expense | 39 | 31 |
Excess tax benefit from stock-based compensation | -7 | -33 |
Deferred income taxes | 7 | 28 |
Changes in assets and liabilities: | ' | ' |
Receivables | 126 | -20 |
Inventories | -19 | 21 |
Current payables and accrued expenses | -86 | 23 |
Deferred revenue | -5 | 19 |
Other assets and liabilities | 18 | -18 |
Net cash provided by operating activities | 447 | 451 |
Investing activities | ' | ' |
Expenditures for property and equipment | -44 | -49 |
Additions to capitalized software | -56 | -60 |
Business acquisitions and other investing activities, net | -39 | -239 |
Net cash used in investing activities | -139 | -348 |
Financing activities | ' | ' |
Repurchases of common stock | -187 | -39 |
Repayments of long-term borrowings | -11 | -8 |
Excess tax benefit from stock-based compensation | 7 | 33 |
Other financing activities, net | 23 | 48 |
Net cash (used in) provided by financing activities | -168 | 34 |
Effect of exchange rate changes on cash and cash equivalents | -7 | 0 |
Increase in cash and cash equivalents | 133 | 137 |
Cash and cash equivalents at beginning of period | 729 | 772 |
Cash and cash equivalents at end of period | $862 | $909 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
These statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the results of operations, financial position and cash flows of Teradata Corporation (“Teradata” or the “Company”) for the interim periods presented herein. The year-end 2012 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. | |
These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Teradata’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (the “2012 Annual Report”). The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements | ' |
2. New Accounting Pronouncements | |
Comprehensive Income. In February 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding the disclosure of comprehensive income. Under the new guidance, entities are required to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. This new guidance was adopted by the Company as of January 1, 2013 and is not expected to have a significant impact on the Company’s disclosures. |
Supplemental_Financial_Informa
Supplemental Financial Information | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Supplemental Financial Information | ' | ||||||||
3. Supplemental Financial Information | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
In millions | 2013 | 2012 | |||||||
Inventories | |||||||||
Finished goods | $ | 44 | $ | 26 | |||||
Service parts | 23 | 21 | |||||||
Total inventories | $ | 67 | $ | 47 | |||||
Deferred revenue | |||||||||
Deferred revenue, current | $ | 374 | $ | 375 | |||||
Long-term deferred revenue | 26 | 30 | |||||||
Total deferred revenue | $ | 400 | $ | 405 | |||||
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Goodwill and Acquired Intangible Assets | ' | ||||||||||||||||||||||||||
4. Goodwill and Acquired Intangible Assets | |||||||||||||||||||||||||||
The following table identifies the activity relating to goodwill by operating segment: | |||||||||||||||||||||||||||
In millions | Balance | Additions | Currency | Balance | |||||||||||||||||||||||
December 31, | Translation | September 30, | |||||||||||||||||||||||||
2012 | Adjustments | 2013 | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
Americas | $ | 616 | $ | 12 | $ | (1 | ) | $ | 627 | ||||||||||||||||||
International | 316 | 4 | (2 | ) | 318 | ||||||||||||||||||||||
Total goodwill | $ | 932 | $ | 16 | $ | (3 | ) | $ | 945 | ||||||||||||||||||
The changes in goodwill for the nine months ended September 30, 2013 were due to the impact of immaterial acquisitions executed during the period, as well as changes in foreign currency exchange rates. | |||||||||||||||||||||||||||
Acquired intangible assets were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows: | |||||||||||||||||||||||||||
Original | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||
In millions | Life (in Years) | Gross | Accumulated | Currency | Gross | Accumulated | Currency | ||||||||||||||||||||
Carrying | Amortization | Translation | Carrying | Amortization | Translation | ||||||||||||||||||||||
Amount | Adjustment | Amount | Adjustment | ||||||||||||||||||||||||
Acquired intangible assets | |||||||||||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 153 | $ | (66 | ) | $ | 2 | $ | 153 | $ | (50 | ) | $ | 2 | ||||||||||||
Customer relationships | 3 to 10 | 77 | (22 | ) | 2 | 77 | (15 | ) | 1 | ||||||||||||||||||
Trademarks/trade names | 3.5 to 5 | 15 | (6 | ) | 0 | 15 | (2 | ) | 0 | ||||||||||||||||||
In-process research and development | 5 | 5 | (1 | ) | 0 | 5 | 0 | 0 | |||||||||||||||||||
Non-compete agreements | 1 to 3 | 1 | (1 | ) | 0 | 1 | (1 | ) | 0 | ||||||||||||||||||
Total | 1 to 10 | $ | 251 | $ | (96 | ) | $ | 4 | $ | 251 | $ | (68 | ) | $ | 3 | ||||||||||||
In the nine months ended September 30, 2013, certain intangible assets previously acquired became fully amortized and were removed from the balance sheet. This was offset by the addition of newly acquired intangible assets associated with immaterial acquisitions in the current period. | |||||||||||||||||||||||||||
The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is as follows: | |||||||||||||||||||||||||||
In millions | September 30, 2013 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||
Amortization expense | $ | 33 | $ | 44 | $ | 42 | $ | 40 | $ | 27 | $ | 18 |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
5. Income Taxes | |
Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items which are required to be discretely recognized within the current interim period. The Company’s intention is to permanently reinvest its foreign earnings outside of the United States. As a result, the effective tax rates in the periods presented are largely based upon the forecasted pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business that apply a broad range of statutory income tax rates, certain of which are less than the U.S. statutory rate. | |
The effective tax rate for the three months ended September 30, 2013 and September 30, 2012 was 25.8% and 27.3%, respectively. The effective tax rate for the nine months ended September 30, 2013 and September 30, 2012 was 25.1% and 28.4%, respectively. The effective tax rate for the three and nine months ended September 30, 2013 included the marginal rate benefit of the U.S. Federal Research and Development Tax Credit (the “Federal R&D Tax Credit”) for 2013. The effective tax rate for the nine months ended September 30, 2013 also included a one-time discrete $4 million tax benefit associated with the Federal R&D Tax Credit for 2012, which was retroactively reinstated with the enactment of the American Taxpayer Relief Act of 2012 in January of 2013. There were no material discrete tax items, nor any tax benefit associated with the 2012 Federal R&D Tax Credit due to its expiration, reflected in the effective tax rate for the three and nine months ended September 30, 2012. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities | ' |
6. Derivative Instruments and Hedging Activities | |
As a portion of the Company’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 Company does not hold or issue derivative financial instruments for trading purposes, nor does it hold or issue leveraged derivative instruments. By using derivative financial instruments to hedge exposures to changes in exchange rates, the Company exposes itself to credit risk. The Company manages exposure to counterparty credit risk by entering into derivative financial instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts. | |
All derivatives are recognized in the Consolidated Balance Sheet at their fair value. The fair values of foreign exchange contracts are based on market spot and forward exchange rates and represent estimates of possible value that may not be realized in the future. Changes in the fair value of derivative financial instruments, along with the loss or gain on the hedged asset or liability, are recorded in current period earnings. The notional amounts represent agreed-upon amounts on which calculations of dollars to be exchanged are based, and are an indication of the extent of Teradata’s involvement in such instruments. These notional amounts do not represent amounts exchanged by the parties and, therefore, are not a measure of the instruments. Across its portfolio of contracts, Teradata has both long and short positions relative to the U.S. dollar. As a result, Teradata’s net involvement is less than the total contract notional amount of the Company’s foreign exchange forward contracts. | |
The contract notional amount of the Company’s foreign exchange forward contracts was $108 million (immaterial on a net basis) at September 30, 2013, and $140 million ($53 million on a net basis) at December 31, 2012. The fair value derivative assets and liabilities recorded in other current assets and accrued liabilities at September 30, 2013 and December 31, 2012, were not material. | |
Gains and losses from the Company’s fair value hedges (foreign currency forward contracts and related hedged items) were immaterial for the three and nine months ended September 30, 2013 and September 30, 2012. Gains and losses from foreign exchange forward contracts are fully recognized each period and reported along with the offsetting gain or loss of the related hedged item, either in cost of products or in other income, depending on the nature of the related hedged item. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments and Contingencies | ' | ||||||||
7. Commitments and Contingencies | |||||||||
In the normal course of business, from time to time, the Company is involved in claims, lawsuits, investigations and proceedings incidental to its business operations which management expects will be resolved without a material impact on the Company’s results of operations, cash flows or financial condition. No material amount of loss in excess of recorded amounts is believed to be reasonably possible as a result of such claims, lawsuits, investigations or proceedings. | |||||||||
As previously reported in our 2012 Annual Report on Form 10-K, in January 2013, the Company settled a litigation matter in federal district court filed under the qui tam provisions of the civil False Claims Act for the $3 million previously accrued on the balance sheet as of December 31, 2012, and the court dismissed the action. | |||||||||
Guarantees and Product Warranties. Guarantees associated with the Company’s business activities are reviewed for appropriateness and impact to the Company’s financial statements. Periodically, the Company’s customers enter into various leasing arrangements coordinated with a leasing company. In some instances, the Company guarantees the leasing company a minimum value at the end of the lease term on the leased equipment. As of September 30, 2013, the maximum future payment obligation of this guaranteed value and the associated liability balance was $3 million. | |||||||||
The Company provides its customers a standard manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. Estimated future obligations due to warranty claims are based upon historical factors such as labor rates, average repair time, travel time, number of service calls and cost of replacement parts. For each consummated sale, the Company recognizes the total customer revenue and records the associated warranty liability using pre-established warranty percentages for that product class. | |||||||||
The following table identifies the activity relating to the warranty reserve for the nine months ended September 30: | |||||||||
In millions | 2013 | 2012 | |||||||
Warranty reserve liability | |||||||||
Beginning balance at January 1 | $ | 8 | $ | 6 | |||||
Provisions for warranties issued | 10 | 12 | |||||||
Settlements (in cash or in kind) | (11 | ) | (11 | ) | |||||
Balance at September 30 | $ | 7 | $ | 7 | |||||
The Company also offers extended and/or enhanced coverage to its customers in the form of maintenance contracts. The Company accounts for these contracts by deferring the related maintenance revenue over the extended and/or enhanced coverage period. Costs associated with maintenance support are expensed as incurred. Amounts associated with these maintenance contracts are not included in the table above. | |||||||||
In addition, the Company provides its customers with certain indemnification rights. In general, the Company agrees to indemnify the customer if a third party asserts patent or other infringement on the part of the customer for its use of the Company’s products. The Company has entered into indemnification agreements with the officers and directors of its subsidiaries. From time to time, the Company also enters into agreements in connection with its acquisition and divesture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is not readily determinable due to the conditional nature of the Company’s potential obligations and the specific facts and circumstances involved with each particular agreement, and as such the Company has not recorded a liability in connection with these indemnification arrangements. Historically, payments made by the Company under these types of agreements have not had a material effect on the Company’s consolidated financial condition, results of operations or cash flows. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
8. Fair Value Measurements | |||||||||||||||||
GAAP has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as significant other observable inputs, such as quoted prices in active markets for similar assets or liabilities, or quoted prices in less-active markets for identical assets; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis include money market funds and foreign currency exchange contracts. A portion of the Company’s excess cash reserves are held in money market funds which generate interest income based on the prevailing market rates. Money market funds are included in cash and cash equivalents in the Company’s balance sheet. Money market fund holdings are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. When deemed appropriate, the Company minimizes its exposure to changes in foreign currency exchange rates through the use of derivative financial instruments, specifically, forward foreign exchange contracts. The fair value of these contracts are measured at the end of each interim reporting period using observable inputs other than quoted prices, specifically market spot and forward exchange rates. As such, these derivative instruments are classified within Level 2 of the valuation hierarchy. Fair value gains for open contracts are recognized as assets and fair value losses are recognized as liabilities. The fair value derivative assets and liabilities recorded in other current assets and accrued liabilities at September 30, 2013 and December 31, 2012, were not material. Any realized gains or losses would be mitigated by corresponding gains or losses on the underlying exposures. | |||||||||||||||||
The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
In millions | Total | Fair Value Measurements at Reporting Date Using | |||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
Money market funds, September 30, 2013 | $ | 444 | $ | 444 | $ | 0 | $ | 0 | |||||||||
Money market funds, December 31, 2012 | $ | 260 | $ | 260 | $ | 0 | $ | 0 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt | ' |
9. Debt | |
In June 2012, Teradata entered into a five-year revolving credit agreement (the “Credit Facility”), under which the Company may borrow up to $300 million. The Credit Facility replaced a similar revolving credit agreement in the same maximum principal amount entered into by Teradata in 2007. The Credit Facility ends on June 15, 2017, at which point any remaining outstanding borrowings would be due for repayment unless extended by agreement of the parties for up to two additional one-year periods. The interest rate charged on borrowings pursuant to the Credit Facility can vary depending on the interest rate option the Company chooses to utilize and the Company’s leverage ratio at the time of the borrowing. In the near term, Teradata would anticipate choosing a floating rate based on the London Interbank Offered Rate (“LIBOR”). The Credit Facility is unsecured and contains certain representations and warranties, conditions, affirmative, negative and financial covenants, and events of default customary for such facilities. | |
As of September 30, 2013, the Company had no borrowings outstanding under the Credit Facility, leaving $300 million in additional borrowing capacity available under the Credit Facility. | |
Teradata’s senior unsecured $300 million five-year term loan is payable in quarterly installments, which commenced in June 2012, with all remaining principal due in April 2016. The outstanding principal amount of the term loan agreement bears interest at a floating rate based upon a negotiated base rate or a Eurodollar rate plus in each case a margin based on the leverage ratio of the Company. As of September 30, 2013, the term loan principal outstanding was $278 million, and carried an interest rate of 1.1875%. | |
Teradata’s 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. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
10. Earnings Per Share | |||||||||||||||||
Basic earnings per share is calculated by dividing net income by the weighted average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted average number of shares outstanding includes the dilution from potential shares resulting from stock options and unvested restricted stock awards. | |||||||||||||||||
The components of basic and diluted earnings per share are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions, except per share amounts | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income available for common stockholders | $ | 98 | $ | 104 | $ | 265 | $ | 307 | |||||||||
Weighted average outstanding shares of common stock | 163.2 | 168.8 | 164 | 168.4 | |||||||||||||
Dilutive effect of employee stock options and restricted stock | 3.2 | 3.6 | 3.1 | 3.7 | |||||||||||||
Common stock and common stock equivalents | 166.4 | 172.4 | 167.1 | 172.1 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.62 | $ | 1.62 | $ | 1.82 | |||||||||
Diluted | $ | 0.59 | $ | 0.6 | $ | 1.59 | $ | 1.78 | |||||||||
Options to purchase 0.7 million and 0.5 million shares of common stock for the three and nine months ended September 30, 2013 were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the respective periods and, therefore, the effect would have been anti-dilutive. Because the average market price of common shares was greater than the exercise prices of outstanding awards, no stock options were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2012. |
Segment_and_Other_Supplemental
Segment and Other Supplemental Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment and Other Supplemental Information | ' | ||||||||||||||||
11. Segment and Other Supplemental Information | |||||||||||||||||
Effective January 1, 2013, Teradata combined the management of the Europe, Middle East and Africa, and the Asia Pacific and Japan regions into a new International region. This larger International region has greater critical mass and leverage of resources for deployment of the Company’s integrated marketing management, big data analytics, and data warehouse solutions, and also possesses more knowledge depth for our numerous consulting and support services offers. | |||||||||||||||||
As a result, Teradata now manages its business in two geographic regions, which are also the Company’s operating segments: (1) the North America and Latin America (“Americas”) region; and (2) the International region. Management evaluates the performance of its segments based on revenue and segment margin, and does not include segment assets for management reporting purposes. Corporate-related costs are fully allocated to the segments. | |||||||||||||||||
The following table presents regional segment revenue and gross margin for the Company. For comparative purposes, prior-year amounts have been reclassified to conform to the current-year presentation: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | |||||||||||||||||
Americas | $ | 409 | $ | 384 | $ | 1,169 | $ | 1,170 | |||||||||
International | 257 | 263 | 754 | 755 | |||||||||||||
Total revenue | 666 | 647 | 1,923 | 1,925 | |||||||||||||
Gross margin | |||||||||||||||||
Americas | 233 | 229 | 668 | 703 | |||||||||||||
International | 125 | 132 | 374 | 378 | |||||||||||||
Total gross margin | 358 | 361 | 1,042 | 1,081 | |||||||||||||
Selling, general and administrative expenses | 183 | 174 | 547 | 518 | |||||||||||||
Research and development expenses | 43 | 44 | 140 | 133 | |||||||||||||
Total income from operations | 132 | 143 | 355 | 430 | |||||||||||||
Other expense, net | 0 | 0 | (1 | ) | (1 | ) | |||||||||||
Income before income taxes | $ | 132 | $ | 143 | $ | 354 | $ | 429 | |||||||||
The following table presents revenue by product and services for the Company: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Products (software and hardware)(1) | $ | 306 | $ | 306 | $ | 858 | $ | 935 | |||||||||
Consulting services | 200 | 194 | 593 | 552 | |||||||||||||
Maintenance services | 160 | 147 | 472 | 438 | |||||||||||||
Total services | 360 | 341 | 1,065 | 990 | |||||||||||||
Total revenue | $ | 666 | $ | 647 | $ | 1,923 | $ | 1,925 | |||||||||
(1) Our data warehousing software and hardware products are often sold and delivered together in the form of a “node” of capacity as an integrated technology solution. Accordingly, it is impracticable to provide the breakdown of revenue from various types of software and hardware products. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
12. Subsequent Events | |
On October 14, 2013, the Company’s Board of Directors authorized an additional $300 million to be utilized to repurchase Teradata Corporation common stock under the Company’s general open market share repurchase program, which resulted in a total of approximately $509 million authorized for share repurchases under this program as of that date. |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Supplemental Financial Information | ' | ||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
In millions | 2013 | 2012 | |||||||
Inventories | |||||||||
Finished goods | $ | 44 | $ | 26 | |||||
Service parts | 23 | 21 | |||||||
Total inventories | $ | 67 | $ | 47 | |||||
Deferred revenue | |||||||||
Deferred revenue, current | $ | 374 | $ | 375 | |||||
Long-term deferred revenue | 26 | 30 | |||||||
Total deferred revenue | $ | 400 | $ | 405 | |||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Goodwill by Operating Segment | ' | ||||||||||||||||||||||||||
The following table identifies the activity relating to goodwill by operating segment: | |||||||||||||||||||||||||||
In millions | Balance | Additions | Currency | Balance | |||||||||||||||||||||||
December 31, | Translation | September 30, | |||||||||||||||||||||||||
2012 | Adjustments | 2013 | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
Americas | $ | 616 | $ | 12 | $ | (1 | ) | $ | 627 | ||||||||||||||||||
International | 316 | 4 | (2 | ) | 318 | ||||||||||||||||||||||
Total goodwill | $ | 932 | $ | 16 | $ | (3 | ) | $ | 945 | ||||||||||||||||||
Gross Carrying Amount and Accumulated Amortization for Teradata's Acquired Intangible Assets | ' | ||||||||||||||||||||||||||
The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows: | |||||||||||||||||||||||||||
Original | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||
In millions | Life (in Years) | Gross | Accumulated | Currency | Gross | Accumulated | Currency | ||||||||||||||||||||
Carrying | Amortization | Translation | Carrying | Amortization | Translation | ||||||||||||||||||||||
Amount | Adjustment | Amount | Adjustment | ||||||||||||||||||||||||
Acquired intangible assets | |||||||||||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 153 | $ | (66 | ) | $ | 2 | $ | 153 | $ | (50 | ) | $ | 2 | ||||||||||||
Customer relationships | 3 to 10 | 77 | (22 | ) | 2 | 77 | (15 | ) | 1 | ||||||||||||||||||
Trademarks/trade names | 3.5 to 5 | 15 | (6 | ) | 0 | 15 | (2 | ) | 0 | ||||||||||||||||||
In-process research and development | 5 | 5 | (1 | ) | 0 | 5 | 0 | 0 | |||||||||||||||||||
Non-compete agreements | 1 to 3 | 1 | (1 | ) | 0 | 1 | (1 | ) | 0 | ||||||||||||||||||
Total | 1 to 10 | $ | 251 | $ | (96 | ) | $ | 4 | $ | 251 | $ | (68 | ) | $ | 3 | ||||||||||||
Aggregate Amortization Expense for Acquired Intangible Assets | ' | ||||||||||||||||||||||||||
The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is as follows: | |||||||||||||||||||||||||||
In millions | September 30, 2013 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||
Amortization expense | $ | 33 | $ | 44 | $ | 42 | $ | 40 | $ | 27 | $ | 18 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Warranty Reserve Activity | ' | ||||||||
The following table identifies the activity relating to the warranty reserve for the nine months ended September 30: | |||||||||
In millions | 2013 | 2012 | |||||||
Warranty reserve liability | |||||||||
Beginning balance at January 1 | $ | 8 | $ | 6 | |||||
Provisions for warranties issued | 10 | 12 | |||||||
Settlements (in cash or in kind) | (11 | ) | (11 | ) | |||||
Balance at September 30 | $ | 7 | $ | 7 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements | ' | ||||||||||||||||
The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
In millions | Total | Fair Value Measurements at Reporting Date Using | |||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
Money market funds, September 30, 2013 | $ | 444 | $ | 444 | $ | 0 | $ | 0 | |||||||||
Money market funds, December 31, 2012 | $ | 260 | $ | 260 | $ | 0 | $ | 0 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Components of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The components of basic and diluted earnings per share are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions, except per share amounts | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income available for common stockholders | $ | 98 | $ | 104 | $ | 265 | $ | 307 | |||||||||
Weighted average outstanding shares of common stock | 163.2 | 168.8 | 164 | 168.4 | |||||||||||||
Dilutive effect of employee stock options and restricted stock | 3.2 | 3.6 | 3.1 | 3.7 | |||||||||||||
Common stock and common stock equivalents | 166.4 | 172.4 | 167.1 | 172.1 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.62 | $ | 1.62 | $ | 1.82 | |||||||||
Diluted | $ | 0.59 | $ | 0.6 | $ | 1.59 | $ | 1.78 |
Segment_and_Other_Supplemental1
Segment and Other Supplemental Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Regional Segment Revenue and Gross Margin | ' | ||||||||||||||||
The following table presents regional segment revenue and gross margin for the Company. For comparative purposes, prior-year amounts have been reclassified to conform to the current-year presentation: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | |||||||||||||||||
Americas | $ | 409 | $ | 384 | $ | 1,169 | $ | 1,170 | |||||||||
International | 257 | 263 | 754 | 755 | |||||||||||||
Total revenue | 666 | 647 | 1,923 | 1,925 | |||||||||||||
Gross margin | |||||||||||||||||
Americas | 233 | 229 | 668 | 703 | |||||||||||||
International | 125 | 132 | 374 | 378 | |||||||||||||
Total gross margin | 358 | 361 | 1,042 | 1,081 | |||||||||||||
Selling, general and administrative expenses | 183 | 174 | 547 | 518 | |||||||||||||
Research and development expenses | 43 | 44 | 140 | 133 | |||||||||||||
Total income from operations | 132 | 143 | 355 | 430 | |||||||||||||
Other expense, net | 0 | 0 | (1 | ) | (1 | ) | |||||||||||
Income before income taxes | $ | 132 | $ | 143 | $ | 354 | $ | 429 | |||||||||
Revenue by Product and Services | ' | ||||||||||||||||
The following table presents revenue by product and services for the Company: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Products (software and hardware)(1) | $ | 306 | $ | 306 | $ | 858 | $ | 935 | |||||||||
Consulting services | 200 | 194 | 593 | 552 | |||||||||||||
Maintenance services | 160 | 147 | 472 | 438 | |||||||||||||
Total services | 360 | 341 | 1,065 | 990 | |||||||||||||
Total revenue | $ | 666 | $ | 647 | $ | 1,923 | $ | 1,925 | |||||||||
(1) Our data warehousing software and hardware products are often sold and delivered together in the form of a “node” of capacity as an integrated technology solution. Accordingly, it is impracticable to provide the breakdown of revenue from various types of software and hardware products. |
Supplemental_Financial_Informa2
Supplemental Financial Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finished goods | $44 | $26 |
Service parts | 23 | 21 |
Total inventories | 67 | 47 |
Deferred revenue, current | 374 | 375 |
Long-term deferred revenue | 26 | 30 |
Total deferred revenue | $400 | $405 |
Goodwill_by_Operating_Segment_
Goodwill by Operating Segment (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Goodwill | ' |
Balance December 31, 2012 | $932 |
Additions | 16 |
Currency Translation Adjustments | -3 |
Balance September 30, 2013 | 945 |
Americas | ' |
Goodwill | ' |
Balance December 31, 2012 | 616 |
Additions | 12 |
Currency Translation Adjustments | -1 |
Balance September 30, 2013 | 627 |
International | ' |
Goodwill | ' |
Balance December 31, 2012 | 316 |
Additions | 4 |
Currency Translation Adjustments | -2 |
Balance September 30, 2013 | $318 |
Gross_Carrying_Amount_and_Accu
Gross Carrying Amount and Accumulated Amortization for Teradata Acquired Intangible Assets (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | $251 | $251 |
Accumulated Amortization | -96 | -68 |
Currency Translation Adjustment | 4 | 3 |
Intellectual property/developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 153 | 153 |
Accumulated Amortization | -66 | -50 |
Currency Translation Adjustment | 2 | 2 |
Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 77 | 77 |
Accumulated Amortization | -22 | -15 |
Currency Translation Adjustment | 2 | 1 |
Trademarks/trade names | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 15 | 15 |
Accumulated Amortization | -6 | -2 |
Currency Translation Adjustment | 0 | 0 |
In-process research and development | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '5 years | ' |
Gross Carrying Amount | 5 | 5 |
Accumulated Amortization | -1 | 0 |
Currency Translation Adjustment | 0 | 0 |
Non-compete agreements | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 1 | 1 |
Accumulated Amortization | -1 | -1 |
Currency Translation Adjustment | $0 | $0 |
Minimum | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '1 year | ' |
Minimum | Intellectual property/developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '1 year | ' |
Minimum | Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '3 years | ' |
Minimum | Trademarks/trade names | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '3 years 6 months | ' |
Minimum | Non-compete agreements | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '1 year | ' |
Maximum | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '10 years | ' |
Maximum | Intellectual property/developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '7 years | ' |
Maximum | Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '10 years | ' |
Maximum | Trademarks/trade names | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '5 years | ' |
Maximum | Non-compete agreements | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Original Amortization Life (in Years) | '3 years | ' |
Aggregate_Amortization_Expense
Aggregate Amortization Expense for Acquired Intangible Assets (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Acquired Intangible Assets Amortization [Line Items] | ' |
Amortization expense - Actual 2013 | $33 |
Amortization expense - 2013 | 44 |
Amortization expense - 2014 | 42 |
Amortization expense - 2015 | 40 |
Amortization expense - 2016 | 27 |
Amortization expense - 2017 | $18 |
Income_Taxes_Additional_inform
Income Taxes - Additional information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes | ' | ' | ' | ' |
Effective income tax rate | 25.80% | 27.30% | 25.10% | 28.40% |
Tax benefit associated with the U.S. Federal Research and Development Tax Credit | ' | ' | $4 | ' |
Material discrete tax items reflected in the effective tax rate | ' | 0 | ' | 0 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative | ' | ' |
Notional amount of foreign exchange forward contracts on a net basis | ' | $53 |
Foreign Exchange Contract | ' | ' |
Derivative | ' | ' |
Notional amount of foreign exchange forward contracts | $108 | $140 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Jan. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies [Line Items] | ' | ' |
Accrual relating to the current best estimate of probable liabilities | ' | $3 |
Maximum future payment obligation of the guaranteed value and associated liabilities | $3 | ' |
Warranty_Reserve_Activity_Deta
Warranty Reserve Activity (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance at January 1 | $8 | $6 |
Provisions for warranties issued | 10 | 12 |
Settlements (in cash or in kind) | -11 | -11 |
Balance at September 30 | $7 | $7 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Money market funds | $444 | $260 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Money market funds | 444 | 260 |
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 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Y | ||
Debt Instrument | ' | ' |
Credit facility maximum borrowing capacity | $300 | ' |
Credit facility agreement expiration date | 15-Jun-17 | ' |
Credit facility, number of one-year extensions | 2 | ' |
Credit facility, duration of extension term (in years) | 1 | ' |
Credit facility outstanding balance | 0 | ' |
Credit facility borrowing capacity | 300 | ' |
Term loan, face amount | ' | 300 |
Repayment terms | ' | 'Term loan is payable in quarterly installments, which commenced in June 2012, with all remaining principal due in April 2016. |
Term loan payable | $278 | ' |
Interest rate on term loan | 1.19% | ' |
Revolving Credit Facility | ' | ' |
Debt Instrument | ' | ' |
Revolving credit agreement period (in years) | '5 years | ' |
Term Loan | ' | ' |
Debt Instrument | ' | ' |
Revolving credit agreement period (in years) | ' | '5 years |
Components_of_Basic_and_Dilute
Components of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class | ' | ' | ' | ' |
Net income available for common stockholders | $98 | $104 | $265 | $307 |
Weighted average outstanding shares of common stock | 163.2 | 168.8 | 164 | 168.4 |
Dilutive effect of employee stock options and restricted stock | 3.2 | 3.6 | 3.1 | 3.7 |
Common stock and common stock equivalents | 166.4 | 172.4 | 167.1 | 172.1 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.60 | $0.62 | $1.62 | $1.82 |
Diluted | $0.59 | $0.60 | $1.59 | $1.78 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' |
Antidilutive equity awards excluded from computation of diluted earnings per share | 0.7 | 0.5 |
Segment_and_Other_Supplemental2
Segment and Other Supplemental Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting Information | ' |
Number of operating segments | 2 |
Regional_Segment_Revenue_and_G
Regional Segment Revenue and Gross Margin for Company (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | $666 | $647 | $1,923 | $1,925 |
Gross margin | 358 | 361 | 1,042 | 1,081 |
Selling, general and administrative expenses | 183 | 174 | 547 | 518 |
Research and development expenses | 43 | 44 | 140 | 133 |
Income from operations | 132 | 143 | 355 | 430 |
Other expense, net | 0 | 0 | -1 | -1 |
Income before income taxes | 132 | 143 | 354 | 429 |
Americas | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 409 | 384 | 1,169 | 1,170 |
Gross margin | 233 | 229 | 668 | 703 |
International | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 257 | 263 | 754 | 755 |
Gross margin | $125 | $132 | $374 | $378 |
Revenue_by_Product_and_Service
Revenue by Product and Services (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information | ' | ' | ' | ' | ||||
Products (software and hardware) | $306 | [1] | $306 | [1] | $858 | [1] | $935 | [1] |
Consulting services | 200 | 194 | 593 | 552 | ||||
Maintenance services | 160 | 147 | 472 | 438 | ||||
Total services | 360 | 341 | 1,065 | 990 | ||||
Total revenue | $666 | $647 | $1,923 | $1,925 | ||||
[1] | Our data warehousing software and hardware products are often sold and delivered together in the form of a "node" of capacity as an integrated technology solution. Accordingly, it is impracticable to provide the breakdown of revenue from various types of software and hardware products. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Oct. 14, 2013 |
Subsequent Event | ' |
Subsequent Event [Line Items] | ' |
Amount authorized | $300 |
Total amount authorized | $509 |