Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document Information | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'TDC | ' | ' |
Entity Registrant Name | 'TERADATA CORP /DE/ | ' | ' |
Entity Central Index Key | '0000816761 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 159,200,000 | ' |
Entity Public Float | ' | ' | $8,200,000,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenue | ' | ' | ' | |||
Product revenue | $1,230 | [1] | $1,297 | [1] | $1,122 | [1] |
Service revenue | 1,462 | 1,368 | 1,240 | |||
Total revenue | 2,692 | 2,665 | 2,362 | |||
Costs and operating expenses | ' | ' | ' | |||
Cost of products | 433 | 416 | 381 | |||
Cost of services | 786 | 758 | 688 | |||
Selling, general and administrative expenses | 757 | 728 | 663 | |||
Research and development expenses | 184 | 183 | 174 | |||
Total costs and operating expenses | 2,160 | 2,085 | 1,906 | |||
Income from operations | 532 | 580 | 456 | |||
Other (expense) income, net | -24 | -2 | 25 | |||
Income before income taxes | 508 | 578 | 481 | |||
Income tax expense | 131 | 159 | 128 | |||
Net income | $377 | $419 | $353 | |||
Net income per common share | ' | ' | ' | |||
Basic | $2.31 | $2.49 | $2.10 | |||
Diluted | $2.27 | $2.44 | $2.05 | |||
Weighted average common shares outstanding | ' | ' | ' | |||
Basic | 163.4 | 168.2 | 168.1 | |||
Diluted | 166.4 | 171.7 | 171.9 | |||
[1] | Our analytic database 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. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $377 | $419 | $353 |
Other comprehensive income: | ' | ' | ' |
Foreign currency translation adjustments | 2 | 9 | -6 |
Defined benefit plans: | ' | ' | ' |
Defined benefit plan adjustment, before tax | 2 | 7 | 12 |
Defined benefit plan adjustment, tax portion | 0 | -3 | -2 |
Defined benefit plan adjustment, net of tax | 2 | 4 | 10 |
Other comprehensive income | 4 | 13 | 4 |
Comprehensive income | $381 | $432 | $357 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $695 | $729 |
Accounts receivable, net | 717 | 668 |
Inventories | 56 | 47 |
Other current assets | 95 | 90 |
Total current assets | 1,563 | 1,534 |
Property and equipment, net | 161 | 150 |
Capitalized software, net | 195 | 173 |
Goodwill | 946 | 932 |
Acquired intangible assets, net | 149 | 186 |
Deferred income taxes | 24 | 29 |
Other assets | 58 | 62 |
Total assets | 3,096 | 3,066 |
Current liabilities | ' | ' |
Accounts payable | 114 | 141 |
Payroll and benefits liabilities | 136 | 158 |
Deferred revenue | 390 | 375 |
Other current liabilities | 136 | 132 |
Total current liabilities | 776 | 806 |
Long-term debt | 248 | 274 |
Pension and other post employment plan liabilities | 76 | 73 |
Long-term deferred revenue | 25 | 30 |
Deferred tax liabilities | 87 | 83 |
Other liabilities | 27 | 21 |
Total liabilities | 1,239 | 1,287 |
Commitments and contingencies (Note 8) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at December 31, 2013 and 2012, respectively | 0 | 0 |
Common stock: par value $0.01 per share, 500.0 shares authorized, 190.9 and 189.5 shares issued at December 31, 2013 and 2012, respectively | 2 | 2 |
Paid-in capital | 973 | 898 |
Treasury stock: 31.6 and 23.8 shares at December 31, 2013 and 2012, respectively | -1,184 | -806 |
Retained earnings | 2,033 | 1,656 |
Accumulated other comprehensive income | 33 | 29 |
Total stockholders' equity | 1,857 | 1,779 |
Total liabilities and stockholders' equity | $3,096 | $3,066 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 | 190.9 | 189.5 |
Treasury stock, shares | 31.6 | 23.8 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net income | $377 | $419 | $353 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 147 | 126 | 102 |
Stock-based compensation expense | 49 | 43 | 35 |
Excess tax benefit from stock-based compensation | -7 | -37 | -14 |
Deferred income taxes | 18 | 77 | 71 |
Loss (gain) on investments | 25 | 0 | -28 |
Changes in assets and liabilities: | ' | ' | ' |
Receivables | -46 | -165 | -65 |
Inventories | -9 | 14 | 3 |
Current payables and accrued expenses | -63 | 105 | 28 |
Deferred revenue | 9 | 42 | 45 |
Other assets and liabilities | 10 | -49 | -17 |
Net cash provided by operating activities | 510 | 575 | 513 |
Investing activities | ' | ' | ' |
Expenditures for property and equipment | -60 | -67 | -42 |
Additions to capitalized software | -78 | -81 | -68 |
Business acquisitions and other investing activities, net | -36 | -274 | -722 |
Net cash used in investing activities | -174 | -422 | -832 |
Financing activities | ' | ' | ' |
Proceeds from long-term borrowings | 0 | 0 | 600 |
Repayments of long-term borrowings | -15 | -11 | -300 |
Repurchases of common stock | -382 | -277 | -127 |
Excess tax benefit from stock-based compensation | 7 | 37 | 14 |
Other financing activities, net | 28 | 55 | 25 |
Net cash (used in) provided by financing activities | -362 | -196 | 212 |
Effect of exchange rate changes on cash and cash equivalents | -8 | 0 | -4 |
Decrease in cash and cash equivalents | -34 | -43 | -111 |
Cash and cash equivalents at beginning of year | 729 | 772 | 883 |
Cash and cash equivalents at end of year | 695 | 729 | 772 |
Cash paid during the year for: | ' | ' | ' |
Income taxes | 124 | 54 | 56 |
Interest | $4 | $4 | $3 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Millions | ||||||
Beginning Balance at Dec. 31, 2010 | $1,189 | $2 | ($399) | $690 | $884 | $12 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 185 | -17 | ' | ' | ' |
Net income | 353 | ' | ' | ' | 353 | ' |
Employee stock compensation, employee stock purchase programs and option exercises (in shares) | ' | 2 | ' | ' | ' | ' |
Employee stock compensation, employee stock purchase programs and option exercises | 60 | ' | ' | 60 | ' | ' |
Income tax benefit from stock compensation plans | 15 | ' | ' | 15 | ' | ' |
Purchases of treasury stock, not retired (in shares) | ' | ' | -2 | ' | ' | ' |
Purchases of treasury stock, not retired | -127 | ' | -127 | ' | ' | ' |
Pension and postemployment benefit plans, net of tax | 10 | ' | ' | ' | ' | 10 |
Currency translation adjustment | -6 | ' | ' | ' | ' | -6 |
Ending Balance at Dec. 31, 2011 | 1,494 | 2 | -526 | 765 | 1,237 | 16 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 187 | -19 | ' | ' | ' |
Net income | 419 | ' | ' | ' | 419 | ' |
Employee stock compensation, employee stock purchase programs and option exercises (in shares) | ' | 3 | ' | ' | ' | ' |
Employee stock compensation, employee stock purchase programs and option exercises | 95 | ' | ' | 95 | ' | ' |
Income tax benefit from stock compensation plans | 38 | ' | ' | 38 | ' | ' |
Purchases of treasury stock, not retired (in shares) | ' | ' | -5 | ' | ' | ' |
Purchases of treasury stock, not retired | -280 | ' | -280 | ' | ' | ' |
Pension and postemployment benefit plans, net of tax | 4 | ' | ' | ' | ' | 4 |
Currency translation adjustment | 9 | ' | ' | ' | ' | 9 |
Ending Balance at Dec. 31, 2012 | 1,779 | 2 | -806 | 898 | 1,656 | 29 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 190 | -24 | ' | ' | ' |
Net income | 377 | ' | ' | ' | 377 | ' |
Employee stock compensation, employee stock purchase programs and option exercises (in shares) | ' | 1 | ' | ' | ' | ' |
Employee stock compensation, employee stock purchase programs and option exercises | 68 | ' | ' | 68 | ' | ' |
Income tax benefit from stock compensation plans | 7 | ' | ' | 7 | ' | ' |
Purchases of treasury stock, not retired (in shares) | ' | ' | -8 | ' | ' | ' |
Purchases of treasury stock, not retired | -378 | ' | -378 | ' | ' | ' |
Pension and postemployment benefit plans, net of tax | 2 | ' | ' | ' | ' | 2 |
Currency translation adjustment | 2 | ' | ' | ' | ' | 2 |
Ending Balance at Dec. 31, 2013 | $1,857 | $2 | ($1,184) | $973 | $2,033 | $33 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 191 | -32 | ' | ' | ' |
Description_of_Business_Basis_
Description of Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Description of Business, Basis of Presentation and Significant Accounting Policies | ' | ||||||||||||||||||||||||
Note 1 Description of Business, Basis of Presentation and Significant Accounting Policies | |||||||||||||||||||||||||
Description of the Business. Teradata Corporation (“Teradata” or “the Company”) is a global leader in analytic data platforms, marketing and analytic applications, and consulting services. The Company’s analytic data platforms are comprised of software, hardware, and related business consulting and support services. | |||||||||||||||||||||||||
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. 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, stock-based compensation, 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. Teradata’s solution offerings typically include software, software subscriptions (unspecified when-and-if-available upgrades), hardware, maintenance support services, and other consulting, implementation and installation-related (“consulting”) services. Teradata records revenue when it is realized, or realizable, and earned. Teradata considers these requirements met when: | |||||||||||||||||||||||||
• | Persuasive evidence of an arrangement exists | ||||||||||||||||||||||||
• | The products or services have been delivered to the customer | ||||||||||||||||||||||||
• | The sales price is fixed or determinable and free of contingencies or significant uncertainties | ||||||||||||||||||||||||
• | Collectibility is reasonably assured | ||||||||||||||||||||||||
Teradata reports revenue net of any taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. The Company assesses whether fees are fixed or determinable at the time of sale. Standard payment terms may vary based on the country in which the agreement is executed, but are generally between 30 and 90 days. Payments that are due within six months are generally deemed to be fixed or determinable based on a successful collection history on such arrangements, and thereby satisfy the required criteria for revenue recognition. Teradata delivers its solutions primarily through direct sales channels, as well as through alliances with system integrators, other independent software vendors and distributors, and value-added resellers (collectively referred to as “resellers”). In assessing whether the sales price to a reseller is fixed or determinable, the Company considers, among other things, past business practices with the reseller, the reseller’s operating history, payment terms, return rights and the financial wherewithal of the reseller. When Teradata determines that the contract fee to a reseller is not fixed or determinable, that transaction is deferred and recognized upon sell-through to the end customer. | |||||||||||||||||||||||||
The Company’s deliverables often involve delivery or performance at different periods of time. Revenue for software is generally recognized upon delivery with the hardware once title and risk of loss have been transferred. Revenue for software subscriptions, which provide for unspecified upgrades or enhancements on a when-and-if-available basis, is recognized straight-line over the term of the subscription arrangement. Revenue for maintenance support services is also recognized on a straight-line basis over the term of the contract. Revenue for other consulting, implementation and installation services is recognized as services are provided. In certain instances, acceptance of the product or service is specified by the customer. In such cases, revenue is deferred until the acceptance criteria have been met. Delivery and acceptance generally occur in the same reporting period. The Company’s arrangements generally do not include any customer negotiated provisions for cancellation, termination or refunds that would significantly impact recognized revenue. | |||||||||||||||||||||||||
The Company evaluates all deliverables in an arrangement to determine whether they represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value, and if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered items is considered probable and substantially in the control of Teradata. Most of the Company’s products and services qualify as separate units of accounting and are recognized upon meeting the criteria as described above. | |||||||||||||||||||||||||
For multiple deliverable arrangements that contain non-software related deliverables, the Company allocates revenue to each deliverable based upon the relative selling price hierarchy and if software and software-related deliverables are also included in the arrangement, to those deliverables as a group based on the best estimate of selling price (“BESP”) for the group. The selling price for a deliverable is based on its vendor-specific objective evidence of selling price (“VSOE”) if available, third-party evidence of selling price (“TPE”) if VSOE is not available, or BESP if neither VSOE nor TPE is available. The Company then recognizes revenue when the remaining revenue recognition criteria are met for each deliverable. For the software group or arrangements that contain only software and software-related deliverables, the revenue is allocated utilizing the residual or fair value method. Under the residual method, the VSOE of the undelivered elements is deferred and accounted for under the applicable revenue recognition guidance, and the remaining portion of the software arrangement fee is allocated to the delivered elements and is recognized as revenue. The fair value method is similar to the relative selling price method used for non-software deliverables except that the allocation of each deliverable is based on VSOE. For software groups or arrangements that contain only software and software-related deliverables in which VSOE does not exist for each deliverable (fair value method) or does not exist for each undelivered element (residual method), revenue for the entire software arrangement or group is deferred and not recognized until delivery of all elements without VSOE has occurred, unless the only undelivered element is postcontract customer support (“PCS”) in which case the entire software arrangement or group is recognized ratably over the PCS period. | |||||||||||||||||||||||||
Teradata’s analytic database software and hardware products are sold and delivered together in the form of a “Node” of capacity as an integrated technology solution. Because both the analytic database software and hardware platform are necessary to deliver the analytic data platform’s essential functionality, the database software and hardware (Node) are excluded from the software rules and considered a non-software related deliverable. Teradata software applications and related support are considered software-related deliverables. Additionally, the amount of revenue allocated to the delivered items utilizing the relative selling price or fair value method is limited to the amount that is not contingent upon the delivery of additional items or meeting other specified performance conditions (the non-contingent amount). | |||||||||||||||||||||||||
VSOE is based upon the normal pricing and discounting practices for those products and services when sold separately. Teradata uses the stated renewal rate approach in establishing VSOE for maintenance and subscriptions (collectively referred to as PCS). Under this approach, the Company assesses whether the contractually stated renewal rates are substantive and consistent with the Company’s normal pricing practices. Renewal rates greater than the lower level of our targeted pricing ranges are considered to be substantive and, therefore, meet the requirements to support VSOE. In instances where there is not a substantive renewal rate in the arrangement, the Company allocates revenue based upon BESP, using the minimum established pricing targets as supported by the renewal rates for similar customers utilizing the bell-curve method. Teradata also offers consulting and installation-related services to its customers, which are considered non-software deliverables if they relate to the nodes. These services are rarely considered essential to the functionality of the data warehouse solution deliverable and there is never software customization of the proprietary database software. VSOE for consulting services is based on the hourly rates for standalone consulting services projects by geographic region and are indicative of the Company’s customary pricing practices. Pricing in each market is structured to obtain a reasonable margin based on input costs. | |||||||||||||||||||||||||
In nearly all multiple-deliverable arrangements, the Company is unable to establish VSOE for all deliverables in the arrangement. This is due to infrequently selling each deliverable separately (such is the case with our nodes), not pricing products or services within a narrow range, or only having a limited sales history. When VSOE cannot be established, attempts are made to establish TPE of the selling price for each deliverable. TPE is determined based on competitor prices for similar deliverables when sold separately. However, Teradata’s offerings contain significant differentiation such that the comparable pricing of products with similar functionality cannot typically be obtained. This is because Teradata’s products contain a significant amount of proprietary technology and its solutions offer substantially different features and functionality than other available products. As Teradata’s products are significantly different from those of its competitors, the Company is unable to establish TPE for the vast majority of its products. | |||||||||||||||||||||||||
When the Company is unable to establish selling prices using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a standalone basis. The Company determines BESP for a product or service by considering multiple factors including, but not limited to, geographies, market conditions, product life cycles, competitive landscape, internal costs, gross margin objectives, purchase volumes and pricing practices. | |||||||||||||||||||||||||
The primary consideration in developing BESP for the Company’s nodes is the bell-curve method based on historical transactions. The BESP analysis is at the geography level in order to align it with the way in which the Company goes to market and establishes pricing for its products. The Company has established discount ranges off of published list prices for different geographies based on strategy and maturity of Teradata’s presence in the respective geography. There are distinctions in each geography and product group which support the use of geographies and markets for the determination of BESP. For example, the Company’s U.S. market is relatively mature and most of the large transactions are captured in this market, whereas the International markets are less mature with generally smaller deal size. Additionally, the prices and margins for the Company’s products vary by geography and by product class. BESP is analyzed on a quarterly basis using a rolling previous 4-quarters of data, which the Company believes best reflects most recent pricing practices in a changing marketplace. | |||||||||||||||||||||||||
The Company reviews VSOE, TPE and its determination of BESP 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. For the twelve months ended December 31, 2013 there was no material impact to revenue resulting from changes in VSOE, TPE or BESP, nor does the Company expect a material impact from such changes in the near term. | |||||||||||||||||||||||||
Perpetual licenses, term licenses, hosting arrangements and software as a service. Teradata’s application offerings include perpetual licenses, term licenses, hosting arrangements and software as a service. For software arrangements that include a perpetual license, the residual method is typically used because the Company does not have VSOE for its perpetual licenses. This is because the perpetual license is never sold standalone. If the license is of limited life and does not require the Company to host the software for the customer, the software is considered a term license. Teradata’s term licenses are typically offered for application software and include a right-to-use license, PCS and consulting services. The revenue for these arrangements are typically recognized ratably over the contract term. The term of these arrangements varies between one and five years and may or may not include hosting services. In most arrangements the pricing is bundled to the customer. If the term license is hosted, the customer has the right to take possession of the software at any time during the hosting period. The customer’s rights to the software in these circumstances are not dependent on additional software payments or significant penalties, and the customer can feasibly run the software on its own hardware or contract with another party to host the software. If these criteria are not met, the hosting arrangement is accounted for outside the software rules as a software as a service arrangement. Under a software as a service arrangement, the license, PCS and hosting fee are recognized ratably over the term of the contract. | |||||||||||||||||||||||||
Contract accounting. If an arrangement involves significant production, modification or customization of the application software or the undelivered services are essential to the functionality of the delivered software then the Company uses the percentage-of-completion or completed-contract method of accounting. The percentage-of-completion method is used when estimates of costs to complete and extent of progress toward completion are reasonably dependable. The Company typically uses labor hours or costs incurred to date as a percentage of the total estimated labor hours or costs to fulfill the contract as the most reliable and meaningful measure that is available for determining a project’s progress toward completion. In circumstances when reasonable and reliable cost estimates for a project cannot be made, the completed-contract method is used whereas no revenue is recognized until the project is complete. When total cost estimates exceed revenues, the Company accrues the estimated losses immediately. For purposes of allocation of the arrangement consideration, any products for which the services are not essential are separated utilizing the relative selling price method discussed above. PCS is also separated and allocated based on VSOE and then recognized ratably over the term. The remaining contract value, which typically includes application software and essential services, is then recognized utilizing the percentage-of-completion or completed-contract methods discussed above. | |||||||||||||||||||||||||
Shipping and Handling. Product shipping and handling costs are included in cost of products 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 both percentages of accounts receivable balances to reflect historical average credit losses 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. Equipment is depreciated over three to twenty years and buildings over 25 to 45 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Total depreciation expense on the Company’s property and equipment for the years ended December 31, 2013, 2012 and 2011 was $48 million, $41 million and $33 million, respectively. | |||||||||||||||||||||||||
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 three years beginning when the asset is substantially ready for use. | |||||||||||||||||||||||||
Costs incurred for the development of data warehousing software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. Technological feasibility is established when planning, designing and initial coding activities that are necessary to establish the product can be produced to meet its design specifications. In the absence of a program design, a working model is used to establish technological feasibility. These costs are included within capitalized software and are amortized over the estimated useful lives of four years using the greater of the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the product beginning when the product is available for general release. Costs capitalized include direct labor and related overhead costs. Costs incurred prior to technological feasibility and after general release are expensed as incurred. The following table identifies the activity relating to capitalized software: | |||||||||||||||||||||||||
Internal-use Software | External-use Software | ||||||||||||||||||||||||
In millions | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Beginning balance at January 1 | $ | 12 | $ | 11 | $ | 11 | $ | 161 | $ | 129 | $ | 105 | |||||||||||||
Capitalized | 6 | 6 | 5 | 72 | 75 | 63 | |||||||||||||||||||
Amortization | (6 | ) | (5 | ) | (5 | ) | (50 | ) | (43 | ) | (39 | ) | |||||||||||||
Ending balance at December 31 | $ | 12 | $ | 12 | $ | 11 | $ | 183 | $ | 161 | $ | 129 | |||||||||||||
The aggregate amortization expense (actual and estimated) for internal-use and external-use software for the following periods is: | |||||||||||||||||||||||||
Actual | For the year ended (estimated) | ||||||||||||||||||||||||
In millions | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Internal-use software amortization expense | $ | 6 | $ | 5 | $ | 4 | $ | 2 | $ | 1 | $ | 0 | |||||||||||||
External-use software amortization expense | $ | 50 | $ | 62 | $ | 54 | $ | 41 | $ | 21 | $ | 5 | |||||||||||||
Estimated expense is based on capitalized software at December 31, 2013 and does not include any new capitalization for future periods. | |||||||||||||||||||||||||
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 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. | |||||||||||||||||||||||||
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. The Company did not recognize any goodwill impairment charges in 2013, 2012 or 2011. | |||||||||||||||||||||||||
Warranty. Provisions for product warranties are recorded in the period in which the related revenue is recognized. The Company accrues warranty reserves using percentages of revenue to reflect the Company’s historical average warranty claims. | |||||||||||||||||||||||||
Research and Development Costs. Research and development costs are expensed as incurred (with the exception of the capitalized software development costs discussed above). 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 and postemployment benefit obligations using actuarial models. The measurement of plan obligations was made as of December 31, 2013. 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 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 accounting rules. | |||||||||||||||||||||||||
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. 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 of the deferred income tax assets will not be realized. | |||||||||||||||||||||||||
Stock-based Compensation. Stock-based payments to employees, including grants of stock options, restricted stock and restricted stock units, are recognized in the financial statements based on their fair value. | |||||||||||||||||||||||||
The fair value of each stock option award on the grant date is estimated using the Black-Scholes option-pricing model with the following assumptions: expected dividend yield, expected stock price volatility, weighted-average risk-free interest rate and weighted average expected term of the options. As of October 2011, the Company’s expected volatility assumption used in the Black-Scholes option-pricing model is based on a blend of peer group volatility and Teradata volatility. Prior to that date, because the Company did not have a sufficient trading history as a stand-alone public company, the volatility was purely based on the peer group volatility. The expected term assumption is based on the simplified method under GAAP, which is based on the vesting period and contractual term for each vesting tranche of awards. The mid-point between the vesting date and the expiration date is used as the expected term under this method. The risk-free interest rate used in the Black-Scholes model is based on the implied yield curve available on U.S. Treasury zero-coupon issues at the date of grant with a remaining term equal to the Company’s expected term assumption. The Company has never declared or paid a cash dividend. | |||||||||||||||||||||||||
Treasury Stock. Shares of the Company’s common stock repurchased through the share repurchase programs are held as treasury stock. Treasury stock is accounted for using the cost method. | |||||||||||||||||||||||||
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 stock awards and other stock awards. Refer to Note 5 for share information on the Company’s stock compensation plans. | |||||||||||||||||||||||||
The components of basic and diluted earnings per share are as follows: | |||||||||||||||||||||||||
For the year ended December 31 | |||||||||||||||||||||||||
In millions, except earnings per share | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Net income available for common stockholders | $ | 377 | $ | 419 | $ | 353 | |||||||||||||||||||
Weighted average outstanding shares of common stock | 163.4 | 168.2 | 168.1 | ||||||||||||||||||||||
Dilutive effect of employee stock options and restricted stock | 3 | 3.5 | 3.8 | ||||||||||||||||||||||
Common stock and common stock equivalents | 166.4 | 171.7 | 171.9 | ||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic | $ | 2.31 | $ | 2.49 | $ | 2.1 | |||||||||||||||||||
Diluted | $ | 2.27 | $ | 2.44 | $ | 2.05 | |||||||||||||||||||
Options to purchase 0.9 million shares of common stock for 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 and, therefore, the effect would have been anti-dilutive. No stock options were excluded from the computation of diluted earnings per share for the twelve months ended December 31, 2012 and 2011. | |||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||||||||||
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 to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures 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 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. The Company included enhanced footnote disclosures for the year ended December 31, 2013 in Note 13. | |||||||||||||||||||||||||
In July 2013, the FASB issued new guidance requiring the financial statement presentation of an unrecognized tax benefit in a particular jurisdiction, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward, unless the uncertain tax position is not available to reduce, or would not be used to reduce, the NOL or carryforward under the tax law in the same jurisdiction; otherwise, the unrecognized tax benefit should be presented as a gross liability and should not be combined with a deferred tax asset. This new guidance is effective for interim and annual periods beginning after December 15, 2013. The Company is currently evaluating the impact of this guidance on its consolidated financial position, results of operations and cash flows. | |||||||||||||||||||||||||
Other recently issued accounting pronouncements not effective until after December 31, 2013 are not expected to have a material impact on our financial position or results of operations. |
Supplemental_Financial_Informa
Supplemental Financial Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Financial Information | ' | ||||||||
Note 2 Supplemental Financial Information | |||||||||
At December 31 | |||||||||
In millions | 2013 | 2012 | |||||||
Accounts receivable | |||||||||
Trade | $ | 731 | $ | 683 | |||||
Other | 4 | 3 | |||||||
Accounts receivable, gross | 735 | 686 | |||||||
Less: allowance for doubtful accounts | (18 | ) | (18 | ) | |||||
Total accounts receivable, net | $ | 717 | $ | 668 | |||||
Inventories | |||||||||
Finished goods | $ | 39 | $ | 26 | |||||
Service parts | 17 | 21 | |||||||
Total inventories | $ | 56 | $ | 47 | |||||
Other current assets | |||||||||
Current deferred tax assets | $ | 34 | $ | 36 | |||||
Other | 61 | 54 | |||||||
Total other current assets | $ | 95 | $ | 90 | |||||
Property and equipment | |||||||||
Land | $ | 8 | $ | 8 | |||||
Buildings and improvements | 74 | 67 | |||||||
Machinery and other equipment | 309 | 280 | |||||||
Property and equipment, gross | 391 | 355 | |||||||
Less: accumulated depreciation | (230 | ) | (205 | ) | |||||
Total property and equipment, net | $ | 161 | $ | 150 | |||||
Other current liabilities | |||||||||
Sales and value-added taxes | $ | 34 | $ | 28 | |||||
Current portion of long-term debt | 26 | 15 | |||||||
Other | 76 | 89 | |||||||
Total other current liabilities | $ | 136 | $ | 132 | |||||
Deferred revenue | |||||||||
Deferred revenue, current | $ | 390 | $ | 375 | |||||
Long-term deferred revenue | 25 | 30 | |||||||
Total deferred revenue | $ | 415 | $ | 405 | |||||
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Acquired Intangible Assets | ' | ||||||||||||||||||||||||
Note 3 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 | December 31, | |||||||||||||||||||||||
2012 | Adjustments | 2013 | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Americas | $ | 616 | $ | 12 | ($ | 2 | ) | $ | 626 | ||||||||||||||||
International | 316 | 4 | 0 | 320 | |||||||||||||||||||||
Total goodwill | $ | 932 | $ | 16 | ($ | 2 | ) | $ | 946 | ||||||||||||||||
The change in goodwill for the twelve months ended December 31, 2013 was primarily due to immaterial acquisitions that were completed during the period. In the fourth quarter of 2013, the Company performed its annual impairment test of goodwill and determined that no impairment to the carrying value of goodwill was necessary, as the fair value of each reporting unit exceeded their respective carrying amounts, including goodwill. Teradata reviewed four reporting units in its 2013 goodwill impairment assessment, as both geographic operating segments consisted of separate reporting units for data warehouse and application software activities. | |||||||||||||||||||||||||
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, 2013 | December 31, 2012 | ||||||||||||||||||||||||
In millions | Amortization | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||||||||
Life (in Years) | Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
and Currency | and Currency | ||||||||||||||||||||||||
Translation | Translation | ||||||||||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||||||||
Acquired intangible assets | |||||||||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 153 | $ | (70 | ) | $ | 153 | $ | (48 | ) | ||||||||||||||
Customer relationships | 3 to 10 | 77 | (23 | ) | 77 | (14 | ) | ||||||||||||||||||
Trademarks/trade names | 1 to 5 | 15 | (7 | ) | 15 | (2 | ) | ||||||||||||||||||
In-process research and development | 5 | 5 | (1 | ) | 5 | 0 | |||||||||||||||||||
Non-compete agreements | 1 to 3 | 1 | (1 | ) | 1 | (1 | ) | ||||||||||||||||||
Total | 1 to 10 | $ | 251 | $ | (102 | ) | $ | 251 | $ | (65 | ) | ||||||||||||||
The gross carrying amount of acquired intangible assets was reduced by certain intangible assets previously acquired that became fully amortized and were removed from the balance sheet. This decrease was offset by the addition of newly acquired intangible assets associated with immaterial acquisitions in the current year. | |||||||||||||||||||||||||
The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is: | |||||||||||||||||||||||||
Actual | For the year ended (estimated) | ||||||||||||||||||||||||
In millions | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Amortization expense | $ | 44 | $ | 45 | $ | 37 | $ | 27 | $ | 18 | $ | 7 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Note 4 Income Taxes | |||||||||||||
For the years ended December 31, income before income taxes consisted of the following: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Income before income taxes | |||||||||||||
United States | $ | 362 | $ | 388 | $ | 309 | |||||||
Foreign | 146 | 190 | 172 | ||||||||||
Total income before income taxes | $ | 508 | $ | 578 | $ | 481 | |||||||
For the years ended December 31, income tax expense consisted of the following: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Income tax expense | |||||||||||||
Current | |||||||||||||
Federal | $ | 78 | $ | 50 | $ | 26 | |||||||
State and local | 10 | 9 | 3 | ||||||||||
Foreign | 26 | 23 | 29 | ||||||||||
Deferred | |||||||||||||
Federal | 18 | 72 | 64 | ||||||||||
State and local | 2 | 7 | 8 | ||||||||||
Foreign | (3 | ) | (2 | ) | (2 | ) | |||||||
Total income tax expense | $ | 131 | $ | 159 | $ | 128 | |||||||
The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Income tax expense at the U.S. federal tax rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign income tax differential | (7.3 | %) | (8.1 | %) | (7.4 | %) | |||||||
State and local income taxes | 0.4 | % | 0.7 | % | 1.3 | % | |||||||
U.S. permanent book/tax differences | (1.6 | %) | (0.5 | %) | (1.8 | %) | |||||||
Other, net | (0.7 | %) | 0.4 | % | (0.5 | %) | |||||||
Total income tax expense | 25.8 | % | 27.5 | % | 26.6 | % | |||||||
The tax rate for the twelve months ended December 31, 2013 included a discrete $4 million tax benefit associated with the U.S. Federal Research and Development (“R&D) tax credit for 2012, which was retroactively reinstated with the enactment of the American Taxpayer Relief Act of 2012 in January 2013. There were no material discrete tax items, nor any tax benefits associated with the 2012 U.S. Federal R&D Tax credit due to its expiration, reflected in the tax rate for the twelve months ended December 31, 2012. The tax rate for the twelve months ended December 31, 2011 included a $4 million tax benefit recorded in the second quarter of 2011 related to the book gain recorded on the Company’s previous equity investment in Aster Data, which was reflected as a permanent non-taxable item. The provision for income taxes is based on the pre-tax earnings mix by jurisdiction of Teradata and its subsidiaries under the Company’s current structure. | |||||||||||||
Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows: | |||||||||||||
In millions | 2013 | 2012 | |||||||||||
Deferred income tax assets | |||||||||||||
Employee pensions and other liabilities | $ | 57 | $ | 54 | |||||||||
Other balance sheet reserves and allowances | 22 | 27 | |||||||||||
Deferred revenue | 2 | 4 | |||||||||||
Tax loss and credit carryforwards | 41 | 41 | |||||||||||
Capitalized research and development | 5 | 16 | |||||||||||
Other | 1 | 0 | |||||||||||
Total deferred income tax assets | 128 | 142 | |||||||||||
Valuation allowance | (13 | ) | (9 | ) | |||||||||
Net deferred income tax assets | 115 | 133 | |||||||||||
Deferred income tax liabilities | |||||||||||||
Intangibles and capitalized software | 117 | 123 | |||||||||||
Property and equipment | 29 | 26 | |||||||||||
Other | 0 | 5 | |||||||||||
Total deferred income tax liabilities | 146 | 154 | |||||||||||
Total net deferred income tax liabilities | ($ | 31 | ) | ($ | 21 | ) | |||||||
As of December 31, 2013, Teradata had total net operating loss carryforwards in the United States and certain foreign jurisdictions of approximately $33 million (tax effected), some of which begin to expire in 2014. In addition, Teradata has Research and Development Tax Credit carryforwards of $22 million, some of which begin to expire in 2014. As of December 31, 2013, the Company has recorded $41 million (net of a $11 million valuation allowance related to California Research and Development tax credits) of these tax attributes on its balance sheet as deferred tax assets; the remaining $14 million of deferred tax assets are associated with certain tax attributes which were both generated by the Company and acquired from various acquisitions, which do not meet the recognition criteria for uncertain tax positions and therefore are not recorded for financial reporting purposes. | |||||||||||||
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 pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business; these jurisdictions apply a broad range of statutory income tax rates. At December 31, 2013 the Company had not provided for federal income taxes on earnings of approximately $1 billion from its foreign subsidiaries. Should these earnings be distributed in the form of dividends or otherwise, the Company would be subject to U.S. income taxes and potential withholding taxes in various international jurisdictions. The U.S. taxes would be partially offset by U.S. foreign tax credits. Determination of the amount of unrecognized deferred U.S. tax liability is not practical because of the complexities associated with this hypothetical calculation. | |||||||||||||
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, 2013, the Company’s uncertain tax positions totaled approximately $34 million, of which $20 million is reflected in the “Other liabilities” section of the Company’s balance sheet as a non-current liability. The remaining balance of $14 million of uncertain tax positions relates to certain tax attributes which were both generated by the Company and acquired in various acquisitions, which are netted against the underlying deferred tax assets recorded on the balance sheet. The entire balance of $34 million in uncertain tax positions would cause a decrease in the effective income tax rate upon recognition. Teradata has recorded $1 million of interest accruals related to its uncertain tax liabilities as of December 31, 2013. | |||||||||||||
Below is a rollforward of the Company’s liability related to uncertain tax positions at December 31: | |||||||||||||
In millions | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 31 | $ | 28 | |||||||||
Gross increases for prior period tax positions | 1 | 0 | |||||||||||
Gross decreases for prior period tax positions | (3 | ) | (1 | ) | |||||||||
Gross increases for current period tax positions | 5 | 4 | |||||||||||
Balance at December 31 | $ | 34 | $ | 31 | |||||||||
The Company and its subsidiaries file income tax returns in the U.S. federal and various state jurisdictions, as well as numerous foreign jurisdictions. As of December 31, 2013, the Company has ongoing tax audits for its U.S. Federal tax filing for tax year 2011, 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. |
Employee_Stockbased_Compensati
Employee Stock-based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Employee Stock-based Compensation Plans | ' | ||||||||||||||||
Note 5 Employee Stock-based Compensation Plans | |||||||||||||||||
The Company recorded stock-based compensation expense for the years ended December 31 as follows: | |||||||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||||||
Stock options | $ | 14 | $ | 15 | $ | 14 | |||||||||||
Restricted stock | 32 | 28 | 21 | ||||||||||||||
Employee share repurchase program (compensatory effective 1/1/13) | 3 | 0 | 0 | ||||||||||||||
Total stock-based compensation before income taxes | 49 | 43 | 35 | ||||||||||||||
Tax benefit | (16 | ) | (14 | ) | (13 | ) | |||||||||||
Total stock-based compensation, net of tax | $ | 33 | $ | 29 | $ | 22 | |||||||||||
The Teradata Corporation 2007 Stock Incentive Plan (the “2007 SIP”), as amended, and the Teradata 2012 Stock Incentive Plan (the “2012 SIP”) provide for the grant of several different forms of stock-based compensation. The 2012 SIP was adopted and approved by stockholders in April 2012 and no further awards may be made under the 2007 SIP after that time. A total of approximately 16.4 million shares were authorized to be issued under the 2012 SIP. New shares of the Company’s common stock are issued as a result of the vesting of restricted stock units and stock option exercises, and at the time of grant for restricted stock, for awards under both plans. | |||||||||||||||||
As of December 31, 2013, the Company’s primary types of stock-based compensation were stock options, restricted stock, restricted stock units and the employee stock purchase program (the “ESPP”). | |||||||||||||||||
Stock Options | |||||||||||||||||
The Compensation and Human Resource Committee of Teradata’s Board of Directors had discretion to determine the material terms and conditions of option awards under both the 2007 SIP and the 2012 SIP (collectively, the “Teradata SIP”), provided that (i) the exercise price must be no less than the fair market value of Teradata common stock (as defined in both plans) on the date of grant, and (ii) the term must be no longer than ten years. Option grants generally have a four-year vesting period. | |||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the weighted-average fair value of options granted for Teradata equity awards was $18.02, $22.31 and $18.12, respectively. The fair value of each option award on the grant date was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0 | 0 | 0 | ||||||||||||||
Risk-free interest rate | 1.77 | % | 0.87 | % | 1.63 | % | |||||||||||
Expected volatility | 37.6 | % | 35.7 | % | 39.5 | % | |||||||||||
Expected term (years) | 6.3 | 6.3 | 6.3 | ||||||||||||||
The expected volatility assumption was based on a blend of peer group volatility and Teradata volatility (see Note 1), and the expected term assumption is determined using the simplified method under GAAP, which is based on the vesting period and contractual term for each vesting tranche of awards. The mid-point between the vesting date and the expiration date is used as the expected term under this method. The risk-free interest rate for periods within the contractual life of the option is based on an average of the five-year and seven-year U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||
The following table summarizes the Company’s stock option activity for the year ended December 31, 2013: | |||||||||||||||||
Shares in thousands | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||
Under | Average | Average | Intrinsic | ||||||||||||||
Option | Exercise | Remaining | Value (in | ||||||||||||||
Price per | Contractual | millions) | |||||||||||||||
Share | Term (in | ||||||||||||||||
years) | |||||||||||||||||
Outstanding at January 1, 2013 | 6,638 | $ | 30.69 | 6.7 | $ | 207 | |||||||||||
Granted | 918 | $ | 45.43 | ||||||||||||||
Exercised | (460 | ) | $ | 18.62 | |||||||||||||
Canceled | (18 | ) | $ | 11.48 | |||||||||||||
Forfeited | (66 | ) | $ | 50.5 | |||||||||||||
Outstanding at December 31, 2013 | 7,012 | $ | 33.27 | 6.3 | $ | 100 | |||||||||||
Fully vested and expected to vest at December 31, 2013 | 6,974 | $ | 33.17 | 6.3 | $ | 100 | |||||||||||
Exercisable at December 31, 2013 | 5,019 | $ | 26.68 | 5.3 | $ | 99 | |||||||||||
The total intrinsic value of options exercised was $19 million in 2013, $113 million in 2012 and $38 million in 2011. Cash received by the Company from option exercises under all share-based payment arrangements was $9 million in 2013, $43 million in 2012 and $16 million in 2011. The tax benefit realized from these exercises was $6 million in 2013, $38 million in 2012 and $14 million in 2011. As of December 31, 2013, there was $36 million of total unrecognized compensation cost related to unvested stock option grants. That cost is expected to be recognized over a weighted-average period of 3.1 years. | |||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||
The Teradata SIP provides for the issuance of restricted stock, as well as restricted stock units. These grants consist of both service-based and performance-based awards. Service-based awards typically vest over a three-to four-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. For substantially all restricted stock grants, at the date of grant, the recipient has all rights of a stockholder, subject to certain restrictions on transferability and a risk of forfeiture. A recipient of restricted stock units does not have the rights of a stockholder and is subject to restrictions on transferability and risk of forfeiture. For both restricted stock grants and restricted stock 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. Performance-based grants are subject to future performance measurements over a one- to four-year period. All 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 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. | |||||||||||||||||
The following table reports restricted stock and restricted stock unit activity during the year ended December 31, 2013: | |||||||||||||||||
Shares in thousands | Number of | Weighted- | |||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
per Share | |||||||||||||||||
Unvested shares at January 1, 2013 | 2,373 | $ | 51.37 | ||||||||||||||
Granted | 995 | $ | 48.24 | ||||||||||||||
Vested | (704 | ) | $ | 42.88 | |||||||||||||
Forfeited/canceled | (86 | ) | $ | 53.75 | |||||||||||||
Unvested shares at December 31, 2013 | 2,578 | $ | 50.3 | ||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the weighted-average fair value of restricted stock units granted for Teradata equity awards was $48.24, $60.71 and $45.19, respectively. | |||||||||||||||||
The total fair value of shares vested was $30.0 million in 2013, $15 million in 2012 and $11 million in 2011. As of December 31, 2013, there was $68 million of unrecognized compensation cost related to unvested restricted stock grants. The unrecognized compensation cost is expected to be recognized over a remaining weighted-average period of 2.4 years. | |||||||||||||||||
The following table represents the composition of Teradata restricted stock unit grants in 2013: | |||||||||||||||||
Shares in thousands | Number of | Weighted- | |||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Service-based shares | 911 | $ | 46.9 | ||||||||||||||
Performance-based shares | 84 | $ | 62.77 | ||||||||||||||
Total stock grants | 995 | $ | 48.24 | ||||||||||||||
Approximately 0.3 million shares of the performance awards issued in December of 2012 also included a market-based component for certain key executives in connection with a restructuring of the Company’s management team. On March 1, 2013, these awards were amended to create two separate awards: (i) 70% of the units were allocated to 2016 performance-based restricted share units (“Special 2016 PBRSUs”); and (ii) 30% of the units were allocated to special long-term strategic performance-based restricted share units (“Long-Term Strategic PBRSUs”). This modification resulted in no incremental fair value on the date of modification. Consistent with a Type I modification, the original fair value was used to value the awards since the stock price and fair value was lower on the date of modification. Each recipient’s opportunity to earn the Special 2016 PBRSUs is based on the extent to which Teradata achieves certain challenging or “stretch” financial goals through 2016 based on a GAAP revenue and a non-GAAP earnings per share targets in 2016. Each recipient’s opportunity to earn the Long-Term Strategic PBRSUs generally is based on a subjective assessment of performance over a four-year period ending in 2016 relative to a mix of long-term strategic measures with respect to such matters as data warehousing technology and offerings and integrated marketing management solutions, among other things, provided that a stretch non-GAAP earnings per share threshold is achieved. There was no compensation expense related to the Special 2016 PBRSUs and Long-Term Strategic PBRSUs recorded in 2013 based on management’s determination that at December 31, 2013 it was not probable that performance targets for these awards would be achievable. | |||||||||||||||||
For the Special 2016 PBRSUs, payout in excess of target cannot occur unless the Company achieves certain non-GAAP earnings per share and stock price goals. In evaluating the fair value of the Special 2016 PBRSUs, the Company used a Monte Carlo simulation on the grant date and determined the fair value to be $26.78 per unit for the market component of the award. Compensation expense related to the performance portion of the award is valued based on the grant date stock price and is only recorded in a period when it is probable that the performance metrics will be met. Compensation expense related to the market portion is only recorded when it is probable that the performance metrics will be above target, regardless of the stock price. There was no compensation expense related to the market portion of these awards in 2013. The primary assumptions used in the valuation of the market component of the awards were as follows: | |||||||||||||||||
2012 | |||||||||||||||||
Grant date fair value per share of Company common stock | $ | 58.63 | |||||||||||||||
Expected volatility | 36.44 | % | |||||||||||||||
Risk-free interest rate | 0.47 | % | |||||||||||||||
Dividend yield | 0 | ||||||||||||||||
Performance vesting hurdle - future fair value per share of Company common stock | $ | 85 | |||||||||||||||
Employee Stock Purchase Program | |||||||||||||||||
The Company’s ESPP, effective on October 1, 2007, and as amended effective as of January 1, 2013, provides eligible employees of Teradata and its designated subsidiaries an opportunity to purchase the Company’s common stock at a discount to the average of the highest and lowest sale prices on the last trading day of each month. As of January 1, 2013, the ESPP discount was 15% of the average market price and considered compensatory. Prior to 2013, the ESPP discount was 5% of the average market price and this plan was considered non-compensatory. | |||||||||||||||||
Employees may authorize payroll deductions of up to 10% of eligible compensation for common stock purchases. A total of 4 million shares were authorized to be issued under the ESPP, with approximately 2.4 million shares remaining under that authorization at December 31, 2013. 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. Employees purchased approximately 0.4 million shares in 2013, 0.2 million shares in 2012 and 0.2 million shares in 2011, for approximately $20 million, $12 million and $9 million, respectively. | |||||||||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
Note 6 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: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
In millions | Pension | Postemployment | Pension | Postemployment | Pension | Postemployment | |||||||||||||||||||
Service cost | $ | 10 | $ | 3 | $ | 9 | $ | 4 | $ | 9 | $ | 4 | |||||||||||||
Interest cost | 3 | 1 | 4 | 1 | 4 | 2 | |||||||||||||||||||
Expected return on plan assets | (2 | ) | 0 | (3 | ) | 0 | (3 | ) | 0 | ||||||||||||||||
Settlement charge | 1 | 0 | 1 | 0 | 3 | 0 | |||||||||||||||||||
Employee contributions | (1 | ) | 0 | (1 | ) | 0 | (1 | ) | 0 | ||||||||||||||||
Amortization of actuarial loss (gain) | 2 | (1 | ) | 1 | 0 | 1 | 0 | ||||||||||||||||||
Total costs | $ | 13 | $ | 3 | $ | 11 | $ | 5 | $ | 13 | $ | 6 | |||||||||||||
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 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Benefit obligation at January 1 | $ | 122 | $ | 108 | $ | 25 | $ | 33 | |||||||||||||||||
Service cost | 8 | 8 | 3 | 4 | |||||||||||||||||||||
Interest cost | 4 | 4 | 1 | 1 | |||||||||||||||||||||
Plan participant contributions | 1 | 1 | 0 | 0 | |||||||||||||||||||||
Actuarial loss (gain) | 6 | 9 | 3 | (11 | ) | ||||||||||||||||||||
Benefits paid | (6 | ) | (7 | ) | (4 | ) | (2 | ) | |||||||||||||||||
Currency translation adjustments | (6 | ) | (1 | ) | (1 | ) | 0 | ||||||||||||||||||
Benefit obligation at December 31 | 129 | 122 | 27 | 25 | |||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at January 1 | 69 | 59 | 0 | 0 | |||||||||||||||||||||
Actual return on plan assets | 9 | 5 | 0 | 0 | |||||||||||||||||||||
Company contributions | 10 | 12 | 0 | 0 | |||||||||||||||||||||
Benefits paid | (6 | ) | (7 | ) | 0 | 0 | |||||||||||||||||||
Currency translation adjustments | (7 | ) | (1 | ) | 0 | 0 | |||||||||||||||||||
Plan participant contribution | 1 | 1 | 0 | 0 | |||||||||||||||||||||
Fair value of plan assets at December 31 | 76 | 69 | 0 | 0 | |||||||||||||||||||||
Funded status (underfunded) | $ | (53 | ) | $ | (53 | ) | $ | (27 | ) | $ | (25 | ) | |||||||||||||
Amounts Recognized in the Balance Sheet | |||||||||||||||||||||||||
Noncurrent assets | $ | 1 | $ | — | $ | — | $ | — | |||||||||||||||||
Current liabilities | (1 | ) | (1 | ) | (4 | ) | (4 | ) | |||||||||||||||||
Noncurrent liabilities | (53 | ) | (52 | ) | (23 | ) | (21 | ) | |||||||||||||||||
Net amounts recognized | $ | (53 | ) | $ | (53 | ) | $ | (27 | ) | $ | (25 | ) | |||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 26 | $ | 32 | $ | (12 | ) | $ | (16 | ) | |||||||||||||||
Prior service credit | (2 | ) | (2 | ) | 0 | 0 | |||||||||||||||||||
Total | $ | 24 | $ | 30 | $ | (12 | ) | $ | (16 | ) | |||||||||||||||
The accumulated pension benefit obligation was $120 million at December 31, 2013 and $113 million at December 31, 2012. For pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of assets were $55 million, $49 million and $3 million, respectively, at December 31, 2013, and $98 million, $90 million and $45 million , respectively, at December 31, 2012. | |||||||||||||||||||||||||
The following table presents the pre-tax net changes in projected benefit obligations recognized in other comprehensive income during 2013 and 2012: | |||||||||||||||||||||||||
Pension | Postemployment | ||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Actuarial (gain) loss arising during the year | ($ | 1 | ) | $ | 7 | $ | 2 | ($ | 12 | ) | |||||||||||||||
Amortization of (gain) loss included in net periodic benefit cost | (2 | ) | (1 | ) | 1 | 0 | |||||||||||||||||||
Recognition of loss due to settlement | (1 | ) | (1 | ) | 0 | 0 | |||||||||||||||||||
Foreign currency exchange | (1 | ) | 0 | 0 | 0 | ||||||||||||||||||||
Total recognized in other comprehensive (income) expense | ($ | 5 | ) | $ | 5 | $ | 3 | ($ | 12 | ) | |||||||||||||||
The following table presents the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2014: | |||||||||||||||||||||||||
In millions | Pension | Postemployment | |||||||||||||||||||||||
Net loss (gain) to be recognized in other comprehensive income | $ | 2 | ($ | 1 | ) | ||||||||||||||||||||
The weighted-average rates and assumptions used to determine benefit obligations at December 31, 2013 and 2012, and net periodic benefit cost for the years ended December 31, 2013 and 2012, were as follows: | |||||||||||||||||||||||||
Pension Benefit Obligations | Pension Benefit Cost | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 3.00% | 3.00% | 3.00% | 3.70% | |||||||||||||||||||||
Rate of compensation increase | 3.20% | 3.30% | 3.30% | 3.30% | |||||||||||||||||||||
Expected return on plan assets | N/A | N/A | 3.40% | 4.00% | |||||||||||||||||||||
Postemployment Benefit Obligations | Postemployment Benefit Cost | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 3.80% | 3.40% | 3.40% | 4.10% | |||||||||||||||||||||
Rate of compensation increase | 3.70% | 3.80% | 3.80% | 3.70% | |||||||||||||||||||||
Involuntary turnover rate | 1.00% | 1.00% | 1.00% | 1.50% | |||||||||||||||||||||
The Company determines the expected return on assets based on individual plan asset allocations, historical capital market returns, and long-run 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. | |||||||||||||||||||||||||
The discount rate used to determine year-end 2013 U.S. benefit obligations 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. 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. | |||||||||||||||||||||||||
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 or the projected benefit obligation of each respective plan. | |||||||||||||||||||||||||
Plan Assets. The weighted-average asset allocations at December 31, 2013 and 2012, by asset category are as follows: | |||||||||||||||||||||||||
Actual Asset Allocation | |||||||||||||||||||||||||
As of December 31 | Target Asset | ||||||||||||||||||||||||
2013 | 2012 | Allocation | |||||||||||||||||||||||
Equity securities | 34 | % | 39 | % | 36 | % | |||||||||||||||||||
Debt securities | 37 | % | 36 | % | 41 | % | |||||||||||||||||||
Insurance (annuity) contracts | 13 | % | 11 | % | 13 | % | |||||||||||||||||||
Real estate | 6 | % | 5 | % | 3 | % | |||||||||||||||||||
Other | 10 | % | 9 | % | 7 | % | |||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
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 9. | |||||||||||||||||||||||||
The following is a description of the valuation methodologies used for pension assets as of December 31, 2013. | |||||||||||||||||||||||||
Common/collective trust funds (which include money market funds, equity funds, bond funds, real-estate indirect investment, etc): Valued at the net asset value (“NAV”) of shares held by the Plan at year end, as reported to the Plan by the trustee, which represents the fair value of shares held by the Plan. Because the NAV of the shares held in the common/collective trust funds are derived by the value of the underlying investments, which are detailed in the table below, 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, 2013: | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||
Active Markets | Other | Signficant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
In millions | December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Money market funds | $ | 3 | $ | 0 | $ | 3 | $ | 0 | |||||||||||||||||
Equity funds | 26 | 0 | 26 | 0 | |||||||||||||||||||||
Bond/fixed-income funds | 28 | 0 | 28 | 0 | |||||||||||||||||||||
Real-estate indirect investment | 5 | 0 | 5 | 0 | |||||||||||||||||||||
Commodities/Other | 4 | 0 | 4 | 0 | |||||||||||||||||||||
Insurance contracts | 10 | 0 | 0 | 10 | |||||||||||||||||||||
Total Assets at fair value | $ | 76 | $ | 0 | $ | 66 | $ | 10 | |||||||||||||||||
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, 2013: | |||||||||||||||||||||||||
In millions | Insurance | ||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 8 | |||||||||||||||||||||||
Purchases, sales and settlements, net | 2 | ||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 10 | |||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2012: | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||
Active Markets | Other | Signficant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
In millions | December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Money market funds | $ | 2 | $ | 0 | $ | 2 | $ | 0 | |||||||||||||||||
Equity funds | 27 | 0 | 27 | 0 | |||||||||||||||||||||
Bond/fixed-income funds | 25 | 0 | 25 | 0 | |||||||||||||||||||||
Real-estate indirect investment | 4 | 0 | 4 | 0 | |||||||||||||||||||||
Commodities/Other | 3 | 0 | 3 | 0 | |||||||||||||||||||||
Insurance contracts | 8 | 0 | 0 | 8 | |||||||||||||||||||||
Total Assets at fair value | $ | 69 | $ | 0 | $ | 61 | $ | 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, 2012: | |||||||||||||||||||||||||
In Millions | Insurance | ||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 7 | |||||||||||||||||||||||
Purchases, sales and settlements, net | 1 | ||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 8 | |||||||||||||||||||||||
Investment Strategy. Teradata employs a number of 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. | |||||||||||||||||||||||||
Cash Flows Related to Employee Benefit Plans | |||||||||||||||||||||||||
Cash Contributions. The Company expects to contribute approximately $9 million to the international pension plans and $4 million for postemployment benefit obligations in 2014. | |||||||||||||||||||||||||
Estimated Future Benefit Payments. The Company expects to make the following benefit payments reflecting past and future service from its pension and postemployment plans: | |||||||||||||||||||||||||
Pension | Postemployment | ||||||||||||||||||||||||
In millions | Benefits | Benefits | |||||||||||||||||||||||
Year | |||||||||||||||||||||||||
2014 | $ | 4 | $ | 4 | |||||||||||||||||||||
2015 | $ | 6 | $ | 4 | |||||||||||||||||||||
2016 | $ | 7 | $ | 4 | |||||||||||||||||||||
2017 | $ | 7 | $ | 4 | |||||||||||||||||||||
2018 | $ | 7 | $ | 3 | |||||||||||||||||||||
2019-2023 | $ | 32 | $ | 15 | |||||||||||||||||||||
Savings Plans. U.S. 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 expense for the U.S. savings plan was $23 million in 2013, $21 million in 2012 and $19 million in 2011. The expense for international subsidiary savings plans was $17 million in 2013, $18 million in 2012 and $14 million in 2011. | |||||||||||||||||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Instruments and Hedging Activities | ' |
Note 7 Derivative Instruments and Hedging Activities | |
As a portion of the Company’s operations and revenue occur 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 Sheets at their fair value. The fair values of foreign exchange contracts are based on market spot and forward exchange rates and represent estimates of possible value that may not be realized in the future. Changes in the fair value of derivative financial instruments, along with the loss or gain on the hedged asset or liability, are recorded in current period earnings. The notional amounts represent agreed-upon amounts on which calculations of dollars to be exchanged are based, and are an indication of the extent of Teradata’s involvement in such instruments. These notional amounts do not represent amounts exchanged by the parties and, therefore, are not a measure of the instruments. Across its portfolio of contracts, Teradata has both long and short positions relative to the U.S. dollar. As a result, Teradata’s net involvement is less than the total contract notional amount of the Company’s foreign exchange forward contracts. | |
The contract notional amount of the Company’s foreign exchange forward contracts was $152 million ($24 million on a net basis) at December 31, 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 December 31, 2013 and 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 years ended December 31, 2013, 2012 and 2011. 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 | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||
Note 8 Commitments and Contingencies | |||||||||||||||||||||||||
In the normal course of business, the Company is subject to proceedings, lawsuits, governmental investigations, claims and other matters, including those that relate to the environment, health and safety, employee benefits, export compliance, intellectual property, tax matters, and other regulatory compliance and general matters. | |||||||||||||||||||||||||
As previously reported, in January 2013, the Company settled a civil litigation matter related to certain federal government contracts entered into prior to Teradata’s separation from NCR Corporation for $3 million, the amount previously accrued, and the court dismissed the action at that time. | |||||||||||||||||||||||||
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 December 31, 2013, the maximum future payment obligation of this guaranteed value and the associated liability balance was $4 million. | |||||||||||||||||||||||||
The Company provides its customers a standard manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. Estimated future obligations due to warranty claims are based upon historical factors such as labor rates, average repair time, travel time, number of service calls and cost of replacement parts. For each consummated sale, the Company recognizes the total customer revenue and records the associated warranty liability using pre-established warranty percentages for that product class. | |||||||||||||||||||||||||
The following table identifies the activity relating to the warranty reserve for the years ended December 31: | |||||||||||||||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Warranty reserve liability | |||||||||||||||||||||||||
Beginning balance at January 1 | $ | 8 | $ | 6 | $ | 6 | |||||||||||||||||||
Accruals for warranties issued | 15 | 17 | 13 | ||||||||||||||||||||||
Settlements (in cash or kind) | (15 | ) | (15 | ) | (13 | ) | |||||||||||||||||||
Balance at end of period | $ | 8 | $ | 8 | $ | 6 | |||||||||||||||||||
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 indemnification obligations under its charter and bylaws to its officers and directors, and has entered into indemnification agreements with the officers and directors of its subsidiaries. From time to time, the Company also enters into agreements in connection with its acquisition and divesture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is 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. | |||||||||||||||||||||||||
Leases. Teradata conducts certain of its sales and administrative operations using leased facilities, the initial lease terms of which vary in length. Many of the leases contain renewal options and escalation clauses that are not material to the overall lease portfolio. Future minimum operating lease payments and committed subleases under non-cancelable leases as of December 31, 2013, for the following fiscal years were: | |||||||||||||||||||||||||
Total | |||||||||||||||||||||||||
In millions | Amounts | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Operating lease obligations | $ | 73 | $ | 22 | $ | 20 | $ | 13 | $ | 10 | $ | 8 | |||||||||||||
Sublease rentals | (11 | ) | (3 | ) | (3 | ) | (3 | ) | (2 | ) | 0 | ||||||||||||||
Total committed operating leases less sublease rentals | $ | 62 | $ | 19 | $ | 17 | $ | 10 | $ | 8 | $ | 8 | |||||||||||||
The Company’s actual rental expense was $26 million, $25 million and $23 million for the years ended December 31, 2013, 2012 and 2011, respectively. The Company had no contingent rentals for these periods, but received sublease rental income of $3 million for each of the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
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, 2013 and 2012. | |||||||||||||||||||||||||
The Company is also potentially subject to concentrations of supplier risk. Our hardware components are assembled exclusively by Flextronics International Ltd. (“Flextronics”). Flextronics procures a wide variety of components used in the manufacturing process on our behalf. Although many of these components are available from multiple sources, Teradata utilizes preferred supplier relationships to better ensure more consistent quality, cost and delivery. Typically, these preferred suppliers maintain alternative processes and/or facilities to ensure continuity of supply. Given the Company’s strategy to outsource its manufacturing activities to Flextronics and to source certain components from single suppliers, a disruption in production at Flextronics or at a supplier could impact the timing of customer shipments and/or Teradata’s operating results. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 9 Fair Value Measurements | |||||||||||||||||
Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as significant other observable inputs, such as quoted prices in active markets for similar assets or liabilities, or quoted prices in less-active markets for identical assets; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis include money market funds and foreign currency exchange contracts. A portion of the Company’s excess cash reserves are held in money market funds which generate interest income based on the prevailing market rates. Money market funds are included in cash and cash equivalents in the Company’s balance sheet. Money market fund holdings are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. When deemed appropriate, the Company minimizes its exposure to changes in foreign currency exchange rates through the use of derivative financial instruments, specifically, 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 December 31, 2013 and 2012, were not material. Any realized gains or losses would be mitigated by corresponding gains or losses on the underlying exposures. Further information on the Company’s use of forward foreign exchange contracts is included in Note 7. | |||||||||||||||||
The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Signficant | |||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||
In millions | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets | |||||||||||||||||
Money market funds, December 31, 2013 | $ | 318 | $ | 318 | $ | 0 | $ | 0 | |||||||||
Money market funds, December 31, 2012 | $ | 260 | $ | 260 | $ | 0 | $ | 0 |
Debt
Debt | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt | ' | ||||
Note 10 Debt | |||||
In June 2012, Teradata entered into a new five-year revolving credit agreement (the “Credit Facility”), under which the Company may borrow up to $300 million. The Credit Facility replaces a similar revolving credit agreement in the same maximum principal amount entered into by Teradata in 2007. The new Credit Facility expires 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 December 31, 2013, the Company had no borrowings outstanding under the Credit Facility, leaving $300 million in additional borrowing capacity available. The Company was in compliance with all covenants at December 31, 2013. | |||||
In April 2011, Teradata obtained a senior unsecured $300 million five-year term loan. The term loan is payable in quarterly installments, commencing in June 2012, with all remaining principal due on April 5, 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 December 31, 2013, the term loan principal outstanding was $274 million, and carried an interest rate of 1.1875% and the Company was in compliance with all covenants. 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. | |||||
Annual contractual maturities of principal on debt outstanding at December 31, 2013, are as follows: | |||||
In millions | |||||
2014 | $ | 26 | |||
2015 | 53 | ||||
2016 | 195 | ||||
Total | $ | 274 | |||
Interest expense on borrowings was $4 million for each of the twelve months ended December 31, 2013, 2012 and 2011. |
Segment_Other_Supplemental_Inf
Segment, Other Supplemental Information and Concentrations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment, Other Supplemental Information and Concentrations | ' | ||||||||||||
Note 11 Segment, Other Supplemental Information and Concentrations | |||||||||||||
Teradata manages its business in two geographic regions, which are also the Company’s operating segments: (1) the Americas region (North America and Latin America); and (2) the International region (Europe, Middle East, Africa, Asia Pacific and Japan). Management evaluates the performance of its segments based on revenue and segment margin. Corporate-related costs are fully-allocated to the segments, but for management reporting purposes assets are not allocated to the segments. | |||||||||||||
The following table presents regional segment revenue and segment gross margin for the Company for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Segment revenue | |||||||||||||
Americas (1) | $ | 1,633 | $ | 1,619 | $ | 1,436 | |||||||
International | 1,059 | 1,046 | 926 | ||||||||||
Total revenue | 2,692 | 2,665 | 2,362 | ||||||||||
Segment gross margin | |||||||||||||
Americas | 947 | 967 | 837 | ||||||||||
International | 526 | 524 | 456 | ||||||||||
Total gross margin | 1,473 | 1,491 | 1,293 | ||||||||||
Selling, general and administrative expenses | 757 | 728 | 663 | ||||||||||
Research and development expenses | 184 | 183 | 174 | ||||||||||
Total income from operations | 532 | 580 | 456 | ||||||||||
Other (expense) income, net | (24 | ) | (2 | ) | 25 | ||||||||
Income before income taxes | $ | 508 | $ | 578 | $ | 481 | |||||||
(1) | The Americas region includes revenue from the United States of $1,511 million in 2013, $1,478 million in 2012 and $1,315 million in 2011. | ||||||||||||
The following table presents revenue by product and services revenue for the Company for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Products (software and hardware)(1) | $ | 1,230 | $ | 1,297 | $ | 1,122 | |||||||
Consulting services | 818 | 776 | 695 | ||||||||||
Maintenance services | 644 | 592 | 545 | ||||||||||
Total services | 1,462 | 1,368 | 1,240 | ||||||||||
Total revenue | $ | 2,692 | $ | 2,665 | $ | 2,362 | |||||||
(1) | Our analytic database 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. | ||||||||||||
The following table presents property and equipment by geographic area at December 31: | |||||||||||||
In millions | 2013 | 2012 | |||||||||||
United States | $ | 131 | $ | 121 | |||||||||
Americas (excluding United States) | 3 | 3 | |||||||||||
International | 27 | 26 | |||||||||||
Property and equipment, net | $ | 161 | $ | 150 | |||||||||
Concentrations. No single customer accounts for more than 10% of the Company’s revenue. As of December 31, 2013, 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 also has no concentration of available sources of labor, services, licenses or other rights that could, if suddenly eliminated, have a material adverse effect on its operations. |
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations | ' |
Note 12 Business Combinations | |
During 2013, the Company completed immaterial business acquisitions and other equity investment activities, accounted for under the cost method. | |
During 2012, the Company completed the all-cash acquisition of 100 percent of the equity of eCircle, a leading full service digital marketing provider in Europe, an immaterial business acquisition and other equity investment activities. | |
In January 2011, Teradata completed its acquisition of 100 percent of the stock of Aprimo, Inc. (“Aprimo”). Aprimo was a global provider of cloud-based integrated marketing management software solutions. The Aprimo organization now supports Teradata’s applications strategy, including development, marketing, sales and services. | |
In April 2011, Teradata completed its acquisition of all remaining equity of Aster Data. Prior to the acquisition Teradata held an 11.2% equity interest in Aster Data. Aster Data was a market leader in advanced analytics and the management of diverse, multi-structured data. The combination of Teradata and Aster Data technologies enables businesses to perform better analytics on large sets of multi-structured data, also known as “big data analytics.” | |
Other Activity. In 2013, the Company recognized a net loss of $22 million on equity investments arising from an impairment of carrying value, partially offset by a gain on sale. In 2011, the Company sold an equity investment and recognized a net gain of $17 million on the transaction. In addition, the Company recorded a gain in 2011 for $11 million related to its existing equity interest in Aster Data. The gains and losses for these transactions were recorded in other income and (expense) in the Consolidated Statements of Income. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||
Note 13 Accumulated Other Comprehensive Income | |||||||||||||||
The following table provides information on changes in accumulated other comprehensive income (“AOCI”), net of tax, for the three years ended December 31: | |||||||||||||||
In millions | Defined benefit | Foreign currency | Total AOCI | ||||||||||||
plans | translation | ||||||||||||||
adjustments | |||||||||||||||
Balance as of December 31, 2010 | $ | (19 | ) | $ | 31 | $ | 12 | ||||||||
Other comprehensive income (loss) before reclassifications | 6 | (6 | ) | 0 | |||||||||||
Amounts reclassified from AOCI | 4 | 0 | 4 | ||||||||||||
Net other comprehensive income (loss) | 10 | (6 | ) | 4 | |||||||||||
Balance as of December 31, 2011 | (9 | ) | 25 | 16 | |||||||||||
Other comprehensive income before reclassifications | 2 | 9 | 11 | ||||||||||||
Amounts reclassified from AOCI | 2 | 0 | 2 | ||||||||||||
Net other comprehensive income | 4 | 9 | 13 | ||||||||||||
Balance as of December 31, 2012 | (5 | ) | 34 | 29 | |||||||||||
Other comprehensive income before reclassifications | 0 | 2 | 2 | ||||||||||||
Amounts reclassified from AOCI | 2 | 0 | 2 | ||||||||||||
Net other comprehensive income | 2 | 2 | 4 | ||||||||||||
Balance as of December 31, 2013 | $ | (3 | ) | $ | 36 | $ | 33 | ||||||||
The following table presents the impact and respective location of AOCI reclassifications in the Consolidated Statements of Income: | |||||||||||||||
In millions | For the year ended December 31 | ||||||||||||||
AOCI Component | Location | 2013 | 2012 | 2011 | |||||||||||
Defined benefit plans | Cost of services | $ | 2 | $ | 1 | $ | 2 | ||||||||
Defined benefit plans | Selling, general and administrative expenses | 1 | 0 | 0 | |||||||||||
Defined benefit plans | Research and debelopment expenes | (1 | ) | 1 | 2 | ||||||||||
Defined benefit plans | Net income | $ | 2 | $ | 2 | $ | 4 | ||||||||
Further information on the Company’s defined benefit plans is included in Note 6. | |||||||||||||||
Quarterly_Information_unaudite
Quarterly Information (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Information (unaudited) | ' | ||||||||||||||||
Note 14 Quarterly Information (unaudited) | |||||||||||||||||
In millions, except per share amounts | First | Second | Third | Fourth | |||||||||||||
2013 | |||||||||||||||||
Total revenues | $ | 587 | $ | 670 | $ | 666 | $ | 769 | |||||||||
Gross margin | $ | 305 | $ | 379 | $ | 358 | $ | 431 | |||||||||
Operating income | $ | 76 | $ | 147 | $ | 132 | $ | 177 | |||||||||
Net income | $ | 59 | $ | 108 | $ | 98 | $ | 112 | |||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.36 | $ | 0.66 | $ | 0.6 | $ | 0.69 | |||||||||
Diluted | $ | 0.35 | $ | 0.65 | $ | 0.59 | $ | 0.68 | |||||||||
2012 | |||||||||||||||||
Total revenues | $ | 613 | $ | 665 | $ | 647 | $ | 740 | |||||||||
Gross margin | $ | 338 | $ | 382 | $ | 361 | $ | 410 | |||||||||
Operating income | $ | 127 | $ | 160 | $ | 143 | $ | 150 | |||||||||
Net income | $ | 91 | $ | 112 | $ | 104 | $ | 112 | |||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.54 | $ | 0.66 | $ | 0.62 | $ | 0.67 | |||||||||
Diluted | $ | 0.53 | $ | 0.65 | $ | 0.6 | $ | 0.66 |
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
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 | Additions | Charged | Deductions | Balance | ||||||||||||||||
Beginning | Charged | to Other | at End of | ||||||||||||||||||
of Period | to Costs & | Accounts* | Period | ||||||||||||||||||
Expenses | |||||||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 18 | $ | 1 | $ | 0 | $ | 1 | $ | 18 | |||||||||||
Year ended December 31, 2012 | $ | 13 | $ | 2 | $ | 3 | $ | 0 | $ | 18 | |||||||||||
Year ended December 31, 2011 | $ | 9 | $ | 5 | $ | 0 | $ | 1 | $ | 13 | |||||||||||
Deferred tax valuation allowance | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 9 | $ | 4 | $ | 0 | $ | 0 | $ | 13 | |||||||||||
Year ended December 31, 2012 | $ | 0 | $ | 9 | $ | 0 | $ | 0 | $ | 9 | |||||||||||
Year ended December 31, 2011 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
* | The allowance for doubtful accounts increased by $3 million for the year ended December 31, 2012 due to reserves from acquired entities |
Description_of_Business_Basis_1
Description of Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Description of the Business | ' | ||||||||||||||||||||||||
Description of the Business. Teradata Corporation (“Teradata” or “the Company”) is a global leader in analytic data platforms, marketing and analytic applications, and consulting services. The Company’s analytic data platforms are comprised of software, hardware, and related business consulting and support services. | |||||||||||||||||||||||||
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, stock-based compensation, 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. Teradata’s solution offerings typically include software, software subscriptions (unspecified when-and-if-available upgrades), hardware, maintenance support services, and other consulting, implementation and installation-related (“consulting”) services. Teradata records revenue when it is realized, or realizable, and earned. Teradata considers these requirements met when: | |||||||||||||||||||||||||
• | Persuasive evidence of an arrangement exists | ||||||||||||||||||||||||
• | The products or services have been delivered to the customer | ||||||||||||||||||||||||
• | The sales price is fixed or determinable and free of contingencies or significant uncertainties | ||||||||||||||||||||||||
• | Collectibility is reasonably assured | ||||||||||||||||||||||||
Teradata reports revenue net of any taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. The Company assesses whether fees are fixed or determinable at the time of sale. Standard payment terms may vary based on the country in which the agreement is executed, but are generally between 30 and 90 days. Payments that are due within six months are generally deemed to be fixed or determinable based on a successful collection history on such arrangements, and thereby satisfy the required criteria for revenue recognition. Teradata delivers its solutions primarily through direct sales channels, as well as through alliances with system integrators, other independent software vendors and distributors, and value-added resellers (collectively referred to as “resellers”). In assessing whether the sales price to a reseller is fixed or determinable, the Company considers, among other things, past business practices with the reseller, the reseller’s operating history, payment terms, return rights and the financial wherewithal of the reseller. When Teradata determines that the contract fee to a reseller is not fixed or determinable, that transaction is deferred and recognized upon sell-through to the end customer. | |||||||||||||||||||||||||
The Company’s deliverables often involve delivery or performance at different periods of time. Revenue for software is generally recognized upon delivery with the hardware once title and risk of loss have been transferred. Revenue for software subscriptions, which provide for unspecified upgrades or enhancements on a when-and-if-available basis, is recognized straight-line over the term of the subscription arrangement. Revenue for maintenance support services is also recognized on a straight-line basis over the term of the contract. Revenue for other consulting, implementation and installation services is recognized as services are provided. In certain instances, acceptance of the product or service is specified by the customer. In such cases, revenue is deferred until the acceptance criteria have been met. Delivery and acceptance generally occur in the same reporting period. The Company’s arrangements generally do not include any customer negotiated provisions for cancellation, termination or refunds that would significantly impact recognized revenue. | |||||||||||||||||||||||||
The Company evaluates all deliverables in an arrangement to determine whether they represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value, and if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered items is considered probable and substantially in the control of Teradata. Most of the Company’s products and services qualify as separate units of accounting and are recognized upon meeting the criteria as described above. | |||||||||||||||||||||||||
For multiple deliverable arrangements that contain non-software related deliverables, the Company allocates revenue to each deliverable based upon the relative selling price hierarchy and if software and software-related deliverables are also included in the arrangement, to those deliverables as a group based on the best estimate of selling price (“BESP”) for the group. The selling price for a deliverable is based on its vendor-specific objective evidence of selling price (“VSOE”) if available, third-party evidence of selling price (“TPE”) if VSOE is not available, or BESP if neither VSOE nor TPE is available. The Company then recognizes revenue when the remaining revenue recognition criteria are met for each deliverable. For the software group or arrangements that contain only software and software-related deliverables, the revenue is allocated utilizing the residual or fair value method. Under the residual method, the VSOE of the undelivered elements is deferred and accounted for under the applicable revenue recognition guidance, and the remaining portion of the software arrangement fee is allocated to the delivered elements and is recognized as revenue. The fair value method is similar to the relative selling price method used for non-software deliverables except that the allocation of each deliverable is based on VSOE. For software groups or arrangements that contain only software and software-related deliverables in which VSOE does not exist for each deliverable (fair value method) or does not exist for each undelivered element (residual method), revenue for the entire software arrangement or group is deferred and not recognized until delivery of all elements without VSOE has occurred, unless the only undelivered element is postcontract customer support (“PCS”) in which case the entire software arrangement or group is recognized ratably over the PCS period. | |||||||||||||||||||||||||
Teradata’s analytic database software and hardware products are sold and delivered together in the form of a “Node” of capacity as an integrated technology solution. Because both the analytic database software and hardware platform are necessary to deliver the analytic data platform’s essential functionality, the database software and hardware (Node) are excluded from the software rules and considered a non-software related deliverable. Teradata software applications and related support are considered software-related deliverables. Additionally, the amount of revenue allocated to the delivered items utilizing the relative selling price or fair value method is limited to the amount that is not contingent upon the delivery of additional items or meeting other specified performance conditions (the non-contingent amount). | |||||||||||||||||||||||||
VSOE is based upon the normal pricing and discounting practices for those products and services when sold separately. Teradata uses the stated renewal rate approach in establishing VSOE for maintenance and subscriptions (collectively referred to as PCS). Under this approach, the Company assesses whether the contractually stated renewal rates are substantive and consistent with the Company’s normal pricing practices. Renewal rates greater than the lower level of our targeted pricing ranges are considered to be substantive and, therefore, meet the requirements to support VSOE. In instances where there is not a substantive renewal rate in the arrangement, the Company allocates revenue based upon BESP, using the minimum established pricing targets as supported by the renewal rates for similar customers utilizing the bell-curve method. Teradata also offers consulting and installation-related services to its customers, which are considered non-software deliverables if they relate to the nodes. These services are rarely considered essential to the functionality of the data warehouse solution deliverable and there is never software customization of the proprietary database software. VSOE for consulting services is based on the hourly rates for standalone consulting services projects by geographic region and are indicative of the Company’s customary pricing practices. Pricing in each market is structured to obtain a reasonable margin based on input costs. | |||||||||||||||||||||||||
In nearly all multiple-deliverable arrangements, the Company is unable to establish VSOE for all deliverables in the arrangement. This is due to infrequently selling each deliverable separately (such is the case with our nodes), not pricing products or services within a narrow range, or only having a limited sales history. When VSOE cannot be established, attempts are made to establish TPE of the selling price for each deliverable. TPE is determined based on competitor prices for similar deliverables when sold separately. However, Teradata’s offerings contain significant differentiation such that the comparable pricing of products with similar functionality cannot typically be obtained. This is because Teradata’s products contain a significant amount of proprietary technology and its solutions offer substantially different features and functionality than other available products. As Teradata’s products are significantly different from those of its competitors, the Company is unable to establish TPE for the vast majority of its products. | |||||||||||||||||||||||||
When the Company is unable to establish selling prices using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a standalone basis. The Company determines BESP for a product or service by considering multiple factors including, but not limited to, geographies, market conditions, product life cycles, competitive landscape, internal costs, gross margin objectives, purchase volumes and pricing practices. | |||||||||||||||||||||||||
The primary consideration in developing BESP for the Company’s nodes is the bell-curve method based on historical transactions. The BESP analysis is at the geography level in order to align it with the way in which the Company goes to market and establishes pricing for its products. The Company has established discount ranges off of published list prices for different geographies based on strategy and maturity of Teradata’s presence in the respective geography. There are distinctions in each geography and product group which support the use of geographies and markets for the determination of BESP. For example, the Company’s U.S. market is relatively mature and most of the large transactions are captured in this market, whereas the International markets are less mature with generally smaller deal size. Additionally, the prices and margins for the Company’s products vary by geography and by product class. BESP is analyzed on a quarterly basis using a rolling previous 4-quarters of data, which the Company believes best reflects most recent pricing practices in a changing marketplace. | |||||||||||||||||||||||||
The Company reviews VSOE, TPE and its determination of BESP 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. For the twelve months ended December 31, 2013 there was no material impact to revenue resulting from changes in VSOE, TPE or BESP, nor does the Company expect a material impact from such changes in the near term. | |||||||||||||||||||||||||
Perpetual licenses, term licenses, hosting arrangements and software as a service. Teradata’s application offerings include perpetual licenses, term licenses, hosting arrangements and software as a service. For software arrangements that include a perpetual license, the residual method is typically used because the Company does not have VSOE for its perpetual licenses. This is because the perpetual license is never sold standalone. If the license is of limited life and does not require the Company to host the software for the customer, the software is considered a term license. Teradata’s term licenses are typically offered for application software and include a right-to-use license, PCS and consulting services. The revenue for these arrangements are typically recognized ratably over the contract term. The term of these arrangements varies between one and five years and may or may not include hosting services. In most arrangements the pricing is bundled to the customer. If the term license is hosted, the customer has the right to take possession of the software at any time during the hosting period. The customer’s rights to the software in these circumstances are not dependent on additional software payments or significant penalties, and the customer can feasibly run the software on its own hardware or contract with another party to host the software. If these criteria are not met, the hosting arrangement is accounted for outside the software rules as a software as a service arrangement. Under a software as a service arrangement, the license, PCS and hosting fee are recognized ratably over the term of the contract. | |||||||||||||||||||||||||
Contract accounting. If an arrangement involves significant production, modification or customization of the application software or the undelivered services are essential to the functionality of the delivered software then the Company uses the percentage-of-completion or completed-contract method of accounting. The percentage-of-completion method is used when estimates of costs to complete and extent of progress toward completion are reasonably dependable. The Company typically uses labor hours or costs incurred to date as a percentage of the total estimated labor hours or costs to fulfill the contract as the most reliable and meaningful measure that is available for determining a project’s progress toward completion. In circumstances when reasonable and reliable cost estimates for a project cannot be made, the completed-contract method is used whereas no revenue is recognized until the project is complete. When total cost estimates exceed revenues, the Company accrues the estimated losses immediately. For purposes of allocation of the arrangement consideration, any products for which the services are not essential are separated utilizing the relative selling price method discussed above. PCS is also separated and allocated based on VSOE and then recognized ratably over the term. The remaining contract value, which typically includes application software and essential services, is then recognized utilizing the percentage-of-completion or completed-contract methods discussed above. | |||||||||||||||||||||||||
Shipping and Handling | ' | ||||||||||||||||||||||||
Shipping and Handling. Product shipping and handling costs are included in cost of products 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 both percentages of accounts receivable balances to reflect historical average credit losses 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. | |||||||||||||||||||||||||
Property and Equipment | ' | ||||||||||||||||||||||||
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. Equipment is depreciated over three to twenty years and buildings over 25 to 45 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Total depreciation expense on the Company’s property and equipment for the years ended December 31, 2013, 2012 and 2011 was $48 million, $41 million and $33 million, respectively. | |||||||||||||||||||||||||
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 three years beginning when the asset is substantially ready for use. | |||||||||||||||||||||||||
Costs incurred for the development of data warehousing software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. Technological feasibility is established when planning, designing and initial coding activities that are necessary to establish the product can be produced to meet its design specifications. In the absence of a program design, a working model is used to establish technological feasibility. These costs are included within capitalized software and are amortized over the estimated useful lives of four years using the greater of the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the product beginning when the product is available for general release. Costs capitalized include direct labor and related overhead costs. Costs incurred prior to technological feasibility and after general release are expensed as incurred. The following table identifies the activity relating to capitalized software: | |||||||||||||||||||||||||
Internal-use Software | External-use Software | ||||||||||||||||||||||||
In millions | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Beginning balance at January 1 | $ | 12 | $ | 11 | $ | 11 | $ | 161 | $ | 129 | $ | 105 | |||||||||||||
Capitalized | 6 | 6 | 5 | 72 | 75 | 63 | |||||||||||||||||||
Amortization | (6 | ) | (5 | ) | (5 | ) | (50 | ) | (43 | ) | (39 | ) | |||||||||||||
Ending balance at December 31 | $ | 12 | $ | 12 | $ | 11 | $ | 183 | $ | 161 | $ | 129 | |||||||||||||
The aggregate amortization expense (actual and estimated) for internal-use and external-use software for the following periods is: | |||||||||||||||||||||||||
Actual | For the year ended (estimated) | ||||||||||||||||||||||||
In millions | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Internal-use software amortization expense | $ | 6 | $ | 5 | $ | 4 | $ | 2 | $ | 1 | $ | 0 | |||||||||||||
External-use software amortization expense | $ | 50 | $ | 62 | $ | 54 | $ | 41 | $ | 21 | $ | 5 | |||||||||||||
Estimated expense is based on capitalized software at December 31, 2013 and does not include any new capitalization for future periods. | |||||||||||||||||||||||||
Valuation of Long-Lived Assets | ' | ||||||||||||||||||||||||
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 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. | |||||||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||||||
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. The Company did not recognize any goodwill impairment charges in 2013, 2012 or 2011. | |||||||||||||||||||||||||
Warranty | ' | ||||||||||||||||||||||||
Warranty. Provisions for product warranties are recorded in the period in which the related revenue is recognized. The Company accrues warranty reserves using percentages of revenue to reflect the Company’s historical average warranty claims. | |||||||||||||||||||||||||
Research and Development Costs | ' | ||||||||||||||||||||||||
Research and Development Costs. Research and development costs are expensed as incurred (with the exception of the capitalized software development costs discussed above). 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 and postemployment benefit obligations using actuarial models. The measurement of plan obligations was made as of December 31, 2013. 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 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 accounting rules. | |||||||||||||||||||||||||
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. 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. 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 of the deferred income tax assets will not be realized. | |||||||||||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||||||||||
Stock-based Compensation. Stock-based payments to employees, including grants of stock options, restricted stock and restricted stock units, are recognized in the financial statements based on their fair value. | |||||||||||||||||||||||||
The fair value of each stock option award on the grant date is estimated using the Black-Scholes option-pricing model with the following assumptions: expected dividend yield, expected stock price volatility, weighted-average risk-free interest rate and weighted average expected term of the options. As of October 2011, the Company’s expected volatility assumption used in the Black-Scholes option-pricing model is based on a blend of peer group volatility and Teradata volatility. Prior to that date, because the Company did not have a sufficient trading history as a stand-alone public company, the volatility was purely based on the peer group volatility. The expected term assumption is based on the simplified method under GAAP, which is based on the vesting period and contractual term for each vesting tranche of awards. The mid-point between the vesting date and the expiration date is used as the expected term under this method. The risk-free interest rate used in the Black-Scholes model is based on the implied yield curve available on U.S. Treasury zero-coupon issues at the date of grant with a remaining term equal to the Company’s expected term assumption. The Company has never declared or paid a cash dividend. | |||||||||||||||||||||||||
Treasury Stock | ' | ||||||||||||||||||||||||
Treasury Stock. Shares of the Company’s common stock repurchased through the share repurchase programs are held as treasury stock. Treasury stock is accounted for using the cost method. | |||||||||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||||||||
Earnings Per Share. Basic earnings per share is calculated by dividing net income by the weighted-average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted-average number of shares outstanding includes the dilution from potential shares added from stock options, restricted stock awards and other stock awards. Refer to Note 5 for share information on the Company’s stock compensation plans. | |||||||||||||||||||||||||
The components of basic and diluted earnings per share are as follows: | |||||||||||||||||||||||||
For the year ended December 31 | |||||||||||||||||||||||||
In millions, except earnings per share | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Net income available for common stockholders | $ | 377 | $ | 419 | $ | 353 | |||||||||||||||||||
Weighted average outstanding shares of common stock | 163.4 | 168.2 | 168.1 | ||||||||||||||||||||||
Dilutive effect of employee stock options and restricted stock | 3 | 3.5 | 3.8 | ||||||||||||||||||||||
Common stock and common stock equivalents | 166.4 | 171.7 | 171.9 | ||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic | $ | 2.31 | $ | 2.49 | $ | 2.1 | |||||||||||||||||||
Diluted | $ | 2.27 | $ | 2.44 | $ | 2.05 | |||||||||||||||||||
Options to purchase 0.9 million shares of common stock for 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 and, therefore, the effect would have been anti-dilutive. No stock options were excluded from the computation of diluted earnings per share for the twelve months ended December 31, 2012 and 2011. | |||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||||||||||
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 to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures 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 did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. The Company included enhanced footnote disclosures for the year ended December 31, 2013 in Note 13. | |||||||||||||||||||||||||
In July 2013, the FASB issued new guidance requiring the financial statement presentation of an unrecognized tax benefit in a particular jurisdiction, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward, unless the uncertain tax position is not available to reduce, or would not be used to reduce, the NOL or carryforward under the tax law in the same jurisdiction; otherwise, the unrecognized tax benefit should be presented as a gross liability and should not be combined with a deferred tax asset. This new guidance is effective for interim and annual periods beginning after December 15, 2013. The Company is currently evaluating the impact of this guidance on its consolidated financial position, results of operations and cash flows. | |||||||||||||||||||||||||
Other recently issued accounting pronouncements not effective until after December 31, 2013 are not expected to have a material impact on our financial position or results of operations. |
Description_of_Business_Basis_2
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule Of Activities Relating To Capitalized Software | ' | ||||||||||||||||||||||||
The following table identifies the activity relating to capitalized software: | |||||||||||||||||||||||||
Internal-use Software | External-use Software | ||||||||||||||||||||||||
In millions | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Beginning balance at January 1 | $ | 12 | $ | 11 | $ | 11 | $ | 161 | $ | 129 | $ | 105 | |||||||||||||
Capitalized | 6 | 6 | 5 | 72 | 75 | 63 | |||||||||||||||||||
Amortization | (6 | ) | (5 | ) | (5 | ) | (50 | ) | (43 | ) | (39 | ) | |||||||||||||
Ending balance at December 31 | $ | 12 | $ | 12 | $ | 11 | $ | 183 | $ | 161 | $ | 129 | |||||||||||||
Aggregate Amotization Expense for Internal and External-Use Software | ' | ||||||||||||||||||||||||
The aggregate amortization expense (actual and estimated) for internal-use and external-use software for the following periods is: | |||||||||||||||||||||||||
Actual | For the year ended (estimated) | ||||||||||||||||||||||||
In millions | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Internal-use software amortization expense | $ | 6 | $ | 5 | $ | 4 | $ | 2 | $ | 1 | $ | 0 | |||||||||||||
External-use software amortization expense | $ | 50 | $ | 62 | $ | 54 | $ | 41 | $ | 21 | $ | 5 | |||||||||||||
Schedule Of Basic And Diluted Earnings Per Share | ' | ||||||||||||||||||||||||
The components of basic and diluted earnings per share are as follows: | |||||||||||||||||||||||||
For the year ended December 31 | |||||||||||||||||||||||||
In millions, except earnings per share | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Net income available for common stockholders | $ | 377 | $ | 419 | $ | 353 | |||||||||||||||||||
Weighted average outstanding shares of common stock | 163.4 | 168.2 | 168.1 | ||||||||||||||||||||||
Dilutive effect of employee stock options and restricted stock | 3 | 3.5 | 3.8 | ||||||||||||||||||||||
Common stock and common stock equivalents | 166.4 | 171.7 | 171.9 | ||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic | $ | 2.31 | $ | 2.49 | $ | 2.1 | |||||||||||||||||||
Diluted | $ | 2.27 | $ | 2.44 | $ | 2.05 |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Financial Information | ' | ||||||||
At December 31 | |||||||||
In millions | 2013 | 2012 | |||||||
Accounts receivable | |||||||||
Trade | $ | 731 | $ | 683 | |||||
Other | 4 | 3 | |||||||
Accounts receivable, gross | 735 | 686 | |||||||
Less: allowance for doubtful accounts | (18 | ) | (18 | ) | |||||
Total accounts receivable, net | $ | 717 | $ | 668 | |||||
Inventories | |||||||||
Finished goods | $ | 39 | $ | 26 | |||||
Service parts | 17 | 21 | |||||||
Total inventories | $ | 56 | $ | 47 | |||||
Other current assets | |||||||||
Current deferred tax assets | $ | 34 | $ | 36 | |||||
Other | 61 | 54 | |||||||
Total other current assets | $ | 95 | $ | 90 | |||||
Property and equipment | |||||||||
Land | $ | 8 | $ | 8 | |||||
Buildings and improvements | 74 | 67 | |||||||
Machinery and other equipment | 309 | 280 | |||||||
Property and equipment, gross | 391 | 355 | |||||||
Less: accumulated depreciation | (230 | ) | (205 | ) | |||||
Total property and equipment, net | $ | 161 | $ | 150 | |||||
Other current liabilities | |||||||||
Sales and value-added taxes | $ | 34 | $ | 28 | |||||
Current portion of long-term debt | 26 | 15 | |||||||
Other | 76 | 89 | |||||||
Total other current liabilities | $ | 136 | $ | 132 | |||||
Deferred revenue | |||||||||
Deferred revenue, current | $ | 390 | $ | 375 | |||||
Long-term deferred revenue | 25 | 30 | |||||||
Total deferred revenue | $ | 415 | $ | 405 | |||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 | December 31, | |||||||||||||||||||||||
2012 | Adjustments | 2013 | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Americas | $ | 616 | $ | 12 | ($ | 2 | ) | $ | 626 | ||||||||||||||||
International | 316 | 4 | 0 | 320 | |||||||||||||||||||||
Total goodwill | $ | 932 | $ | 16 | ($ | 2 | ) | $ | 946 | ||||||||||||||||
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: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
In millions | Amortization | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||||||||
Life (in Years) | Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
and Currency | and Currency | ||||||||||||||||||||||||
Translation | Translation | ||||||||||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||||||||
Acquired intangible assets | |||||||||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 153 | $ | (70 | ) | $ | 153 | $ | (48 | ) | ||||||||||||||
Customer relationships | 3 to 10 | 77 | (23 | ) | 77 | (14 | ) | ||||||||||||||||||
Trademarks/trade names | 1 to 5 | 15 | (7 | ) | 15 | (2 | ) | ||||||||||||||||||
In-process research and development | 5 | 5 | (1 | ) | 5 | 0 | |||||||||||||||||||
Non-compete agreements | 1 to 3 | 1 | (1 | ) | 1 | (1 | ) | ||||||||||||||||||
Total | 1 to 10 | $ | 251 | $ | (102 | ) | $ | 251 | $ | (65 | ) | ||||||||||||||
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 year ended (estimated) | ||||||||||||||||||||||||
In millions | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Amortization expense | $ | 44 | $ | 45 | $ | 37 | $ | 27 | $ | 18 | $ | 7 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Before Income Taxes | ' | ||||||||||||
For the years ended December 31, income before income taxes consisted of the following: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Income before income taxes | |||||||||||||
United States | $ | 362 | $ | 388 | $ | 309 | |||||||
Foreign | 146 | 190 | 172 | ||||||||||
Total income before income taxes | $ | 508 | $ | 578 | $ | 481 | |||||||
Income Tax Expense | ' | ||||||||||||
For the years ended December 31, income tax expense consisted of the following: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Income tax expense | |||||||||||||
Current | |||||||||||||
Federal | $ | 78 | $ | 50 | $ | 26 | |||||||
State and local | 10 | 9 | 3 | ||||||||||
Foreign | 26 | 23 | 29 | ||||||||||
Deferred | |||||||||||||
Federal | 18 | 72 | 64 | ||||||||||
State and local | 2 | 7 | 8 | ||||||||||
Foreign | (3 | ) | (2 | ) | (2 | ) | |||||||
Total income tax expense | $ | 131 | $ | 159 | $ | 128 | |||||||
The 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 U.S. federal statutory income tax rate for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Income tax expense at the U.S. federal tax rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign income tax differential | (7.3 | %) | (8.1 | %) | (7.4 | %) | |||||||
State and local income taxes | 0.4 | % | 0.7 | % | 1.3 | % | |||||||
U.S. permanent book/tax differences | (1.6 | %) | (0.5 | %) | (1.8 | %) | |||||||
Other, net | (0.7 | %) | 0.4 | % | (0.5 | %) | |||||||
Total income tax expense | 25.8 | % | 27.5 | % | 26.6 | % | |||||||
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 | 2013 | 2012 | |||||||||||
Deferred income tax assets | |||||||||||||
Employee pensions and other liabilities | $ | 57 | $ | 54 | |||||||||
Other balance sheet reserves and allowances | 22 | 27 | |||||||||||
Deferred revenue | 2 | 4 | |||||||||||
Tax loss and credit carryforwards | 41 | 41 | |||||||||||
Capitalized research and development | 5 | 16 | |||||||||||
Other | 1 | 0 | |||||||||||
Total deferred income tax assets | 128 | 142 | |||||||||||
Valuation allowance | (13 | ) | (9 | ) | |||||||||
Net deferred income tax assets | 115 | 133 | |||||||||||
Deferred income tax liabilities | |||||||||||||
Intangibles and capitalized software | 117 | 123 | |||||||||||
Property and equipment | 29 | 26 | |||||||||||
Other | 0 | 5 | |||||||||||
Total deferred income tax liabilities | 146 | 154 | |||||||||||
Total net deferred income tax liabilities | ($ | 31 | ) | ($ | 21 | ) | |||||||
Liability Related to Uncertain Tax Positions | ' | ||||||||||||
Below is a rollforward of the Company’s liability related to uncertain tax positions at December 31: | |||||||||||||
In millions | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 31 | $ | 28 | |||||||||
Gross increases for prior period tax positions | 1 | 0 | |||||||||||
Gross decreases for prior period tax positions | (3 | ) | (1 | ) | |||||||||
Gross increases for current period tax positions | 5 | 4 | |||||||||||
Balance at December 31 | $ | 34 | $ | 31 | |||||||||
Employee_Stockbased_Compensati1
Employee Stock-based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||
The Company recorded stock-based compensation expense for the years ended December 31 as follows: | |||||||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||||||
Stock options | $ | 14 | $ | 15 | $ | 14 | |||||||||||
Restricted stock | 32 | 28 | 21 | ||||||||||||||
Employee share repurchase program (compensatory effective 1/1/13) | 3 | 0 | 0 | ||||||||||||||
Total stock-based compensation before income taxes | 49 | 43 | 35 | ||||||||||||||
Tax benefit | (16 | ) | (14 | ) | (13 | ) | |||||||||||
Total stock-based compensation, net of tax | $ | 33 | $ | 29 | $ | 22 | |||||||||||
Fair Value of Each Option Award on the Grant Date Using the Black-Scholes Option-Pricing Model | ' | ||||||||||||||||
The fair value of each option award on the grant date was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Dividend yield | 0 | 0 | 0 | ||||||||||||||
Risk-free interest rate | 1.77 | % | 0.87 | % | 1.63 | % | |||||||||||
Expected volatility | 37.6 | % | 35.7 | % | 39.5 | % | |||||||||||
Expected term (years) | 6.3 | 6.3 | 6.3 | ||||||||||||||
The Company's Stock Option Activity | ' | ||||||||||||||||
The following table summarizes the Company’s stock option activity for the year ended December 31, 2013: | |||||||||||||||||
Shares in thousands | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||
Under | Average | Average | Intrinsic | ||||||||||||||
Option | Exercise | Remaining | Value (in | ||||||||||||||
Price per | Contractual | millions) | |||||||||||||||
Share | Term (in | ||||||||||||||||
years) | |||||||||||||||||
Outstanding at January 1, 2013 | 6,638 | $ | 30.69 | 6.7 | $ | 207 | |||||||||||
Granted | 918 | $ | 45.43 | ||||||||||||||
Exercised | (460 | ) | $ | 18.62 | |||||||||||||
Canceled | (18 | ) | $ | 11.48 | |||||||||||||
Forfeited | (66 | ) | $ | 50.5 | |||||||||||||
Outstanding at December 31, 2013 | 7,012 | $ | 33.27 | 6.3 | $ | 100 | |||||||||||
Fully vested and expected to vest at December 31, 2013 | 6,974 | $ | 33.17 | 6.3 | $ | 100 | |||||||||||
Exercisable at December 31, 2013 | 5,019 | $ | 26.68 | 5.3 | $ | 99 | |||||||||||
Restricted Stock and Restricted Stock Unit Activity | ' | ||||||||||||||||
The following table reports restricted stock and restricted stock unit activity during the year ended December 31, 2013: | |||||||||||||||||
Shares in thousands | Number of | Weighted- | |||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
per Share | |||||||||||||||||
Unvested shares at January 1, 2013 | 2,373 | $ | 51.37 | ||||||||||||||
Granted | 995 | $ | 48.24 | ||||||||||||||
Vested | (704 | ) | $ | 42.88 | |||||||||||||
Forfeited/canceled | (86 | ) | $ | 53.75 | |||||||||||||
Unvested shares at December 31, 2013 | 2,578 | $ | 50.3 | ||||||||||||||
The Composition of Teradata Restricted Stock Grants | ' | ||||||||||||||||
The following table represents the composition of Teradata restricted stock unit grants in 2013: | |||||||||||||||||
Shares in thousands | Number of | Weighted- | |||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Service-based shares | 911 | $ | 46.9 | ||||||||||||||
Performance-based shares | 84 | $ | 62.77 | ||||||||||||||
Total stock grants | 995 | $ | 48.24 | ||||||||||||||
Primary Assumptions Used in Valuation of Market Component of Awards | ' | ||||||||||||||||
The primary assumptions used in the valuation of the market component of the awards were as follows: | |||||||||||||||||
2012 | |||||||||||||||||
Grant date fair value per share of Company common stock | $ | 58.63 | |||||||||||||||
Expected volatility | 36.44 | % | |||||||||||||||
Risk-free interest rate | 0.47 | % | |||||||||||||||
Dividend yield | 0 | ||||||||||||||||
Performance vesting hurdle - future fair value per share of Company common stock | $ | 85 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Pension and Postemployment Benefit Costs | ' | ||||||||||||||||||||||||
Pension and postemployment benefit costs for the years ended December 31 were as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
In millions | Pension | Postemployment | Pension | Postemployment | Pension | Postemployment | |||||||||||||||||||
Service cost | $ | 10 | $ | 3 | $ | 9 | $ | 4 | $ | 9 | $ | 4 | |||||||||||||
Interest cost | 3 | 1 | 4 | 1 | 4 | 2 | |||||||||||||||||||
Expected return on plan assets | (2 | ) | 0 | (3 | ) | 0 | (3 | ) | 0 | ||||||||||||||||
Settlement charge | 1 | 0 | 1 | 0 | 3 | 0 | |||||||||||||||||||
Employee contributions | (1 | ) | 0 | (1 | ) | 0 | (1 | ) | 0 | ||||||||||||||||
Amortization of actuarial loss (gain) | 2 | (1 | ) | 1 | 0 | 1 | 0 | ||||||||||||||||||
Total costs | $ | 13 | $ | 3 | $ | 11 | $ | 5 | $ | 13 | $ | 6 | |||||||||||||
Changes in Benefit Obligations, Plan Assets, Funded Status and the Reconciliation of the Fund Status to Amounts Recognized in the Consolidated Balance Sheets and in Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
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 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Benefit obligation at January 1 | $ | 122 | $ | 108 | $ | 25 | $ | 33 | |||||||||||||||||
Service cost | 8 | 8 | 3 | 4 | |||||||||||||||||||||
Interest cost | 4 | 4 | 1 | 1 | |||||||||||||||||||||
Plan participant contributions | 1 | 1 | 0 | 0 | |||||||||||||||||||||
Actuarial loss (gain) | 6 | 9 | 3 | (11 | ) | ||||||||||||||||||||
Benefits paid | (6 | ) | (7 | ) | (4 | ) | (2 | ) | |||||||||||||||||
Currency translation adjustments | (6 | ) | (1 | ) | (1 | ) | 0 | ||||||||||||||||||
Benefit obligation at December 31 | 129 | 122 | 27 | 25 | |||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at January 1 | 69 | 59 | 0 | 0 | |||||||||||||||||||||
Actual return on plan assets | 9 | 5 | 0 | 0 | |||||||||||||||||||||
Company contributions | 10 | 12 | 0 | 0 | |||||||||||||||||||||
Benefits paid | (6 | ) | (7 | ) | 0 | 0 | |||||||||||||||||||
Currency translation adjustments | (7 | ) | (1 | ) | 0 | 0 | |||||||||||||||||||
Plan participant contribution | 1 | 1 | 0 | 0 | |||||||||||||||||||||
Fair value of plan assets at December 31 | 76 | 69 | 0 | 0 | |||||||||||||||||||||
Funded status (underfunded) | $ | (53 | ) | $ | (53 | ) | $ | (27 | ) | $ | (25 | ) | |||||||||||||
Amounts Recognized in the Balance Sheet | |||||||||||||||||||||||||
Noncurrent assets | $ | 1 | $ | — | $ | — | $ | — | |||||||||||||||||
Current liabilities | (1 | ) | (1 | ) | (4 | ) | (4 | ) | |||||||||||||||||
Noncurrent liabilities | (53 | ) | (52 | ) | (23 | ) | (21 | ) | |||||||||||||||||
Net amounts recognized | $ | (53 | ) | $ | (53 | ) | $ | (27 | ) | $ | (25 | ) | |||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 26 | $ | 32 | $ | (12 | ) | $ | (16 | ) | |||||||||||||||
Prior service credit | (2 | ) | (2 | ) | 0 | 0 | |||||||||||||||||||
Total | $ | 24 | $ | 30 | $ | (12 | ) | $ | (16 | ) | |||||||||||||||
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 during 2013 and 2012: | |||||||||||||||||||||||||
Pension | Postemployment | ||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Actuarial (gain) loss arising during the year | ($ | 1 | ) | $ | 7 | $ | 2 | ($ | 12 | ) | |||||||||||||||
Amortization of (gain) loss included in net periodic benefit cost | (2 | ) | (1 | ) | 1 | 0 | |||||||||||||||||||
Recognition of loss due to settlement | (1 | ) | (1 | ) | 0 | 0 | |||||||||||||||||||
Foreign currency exchange | (1 | ) | 0 | 0 | 0 | ||||||||||||||||||||
Total recognized in other comprehensive (income) expense | ($ | 5 | ) | $ | 5 | $ | 3 | ($ | 12 | ) | |||||||||||||||
Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
The following table presents the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2014: | |||||||||||||||||||||||||
In millions | Pension | Postemployment | |||||||||||||||||||||||
Net loss (gain) to be recognized in other comprehensive income | $ | 2 | ($ | 1 | ) | ||||||||||||||||||||
Weighted-Average Rates and Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit | ' | ||||||||||||||||||||||||
The weighted-average rates and assumptions used to determine benefit obligations at December 31, 2013 and 2012, and net periodic benefit cost for the years ended December 31, 2013 and 2012, were as follows: | |||||||||||||||||||||||||
Pension Benefit Obligations | Pension Benefit Cost | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 3.00% | 3.00% | 3.00% | 3.70% | |||||||||||||||||||||
Rate of compensation increase | 3.20% | 3.30% | 3.30% | 3.30% | |||||||||||||||||||||
Expected return on plan assets | N/A | N/A | 3.40% | 4.00% | |||||||||||||||||||||
Postemployment Benefit Obligations | Postemployment Benefit Cost | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 3.80% | 3.40% | 3.40% | 4.10% | |||||||||||||||||||||
Rate of compensation increase | 3.70% | 3.80% | 3.80% | 3.70% | |||||||||||||||||||||
Involuntary turnover rate | 1.00% | 1.00% | 1.00% | 1.50% | |||||||||||||||||||||
Weighted-Average Asset Allocations, by Category | ' | ||||||||||||||||||||||||
The weighted-average asset allocations at December 31, 2013 and 2012, by asset category are as follows: | |||||||||||||||||||||||||
Actual Asset Allocation | |||||||||||||||||||||||||
As of December 31 | Target Asset | ||||||||||||||||||||||||
2013 | 2012 | Allocation | |||||||||||||||||||||||
Equity securities | 34 | % | 39 | % | 36 | % | |||||||||||||||||||
Debt securities | 37 | % | 36 | % | 41 | % | |||||||||||||||||||
Insurance (annuity) contracts | 13 | % | 11 | % | 13 | % | |||||||||||||||||||
Real estate | 6 | % | 5 | % | 3 | % | |||||||||||||||||||
Other | 10 | % | 9 | % | 7 | % | |||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
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, 2013: | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||
Active Markets | Other | Signficant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
In millions | December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Money market funds | $ | 3 | $ | 0 | $ | 3 | $ | 0 | |||||||||||||||||
Equity funds | 26 | 0 | 26 | 0 | |||||||||||||||||||||
Bond/fixed-income funds | 28 | 0 | 28 | 0 | |||||||||||||||||||||
Real-estate indirect investment | 5 | 0 | 5 | 0 | |||||||||||||||||||||
Commodities/Other | 4 | 0 | 4 | 0 | |||||||||||||||||||||
Insurance contracts | 10 | 0 | 0 | 10 | |||||||||||||||||||||
Total Assets at fair value | $ | 76 | $ | 0 | $ | 66 | $ | 10 | |||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2012: | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||
Active Markets | Other | Signficant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
In millions | December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Money market funds | $ | 2 | $ | 0 | $ | 2 | $ | 0 | |||||||||||||||||
Equity funds | 27 | 0 | 27 | 0 | |||||||||||||||||||||
Bond/fixed-income funds | 25 | 0 | 25 | 0 | |||||||||||||||||||||
Real-estate indirect investment | 4 | 0 | 4 | 0 | |||||||||||||||||||||
Commodities/Other | 3 | 0 | 3 | 0 | |||||||||||||||||||||
Insurance contracts | 8 | 0 | 0 | 8 | |||||||||||||||||||||
Total Assets at fair value | $ | 69 | $ | 0 | $ | 61 | $ | 8 | |||||||||||||||||
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, 2013: | |||||||||||||||||||||||||
In millions | Insurance | ||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 8 | |||||||||||||||||||||||
Purchases, sales and settlements, net | 2 | ||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 10 | |||||||||||||||||||||||
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, 2012: | |||||||||||||||||||||||||
In Millions | Insurance | ||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 7 | |||||||||||||||||||||||
Purchases, sales and settlements, net | 1 | ||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 8 | |||||||||||||||||||||||
Estimated Future Benefit Payments | ' | ||||||||||||||||||||||||
The Company expects to make the following benefit payments reflecting past and future service from its pension and postemployment plans: | |||||||||||||||||||||||||
Pension | Postemployment | ||||||||||||||||||||||||
In millions | Benefits | Benefits | |||||||||||||||||||||||
Year | |||||||||||||||||||||||||
2014 | $ | 4 | $ | 4 | |||||||||||||||||||||
2015 | $ | 6 | $ | 4 | |||||||||||||||||||||
2016 | $ | 7 | $ | 4 | |||||||||||||||||||||
2017 | $ | 7 | $ | 4 | |||||||||||||||||||||
2018 | $ | 7 | $ | 3 | |||||||||||||||||||||
2019-2023 | $ | 32 | $ | 15 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Warranty Reserve Activity | ' | ||||||||||||||||||||||||
The following table identifies the activity relating to the warranty reserve for the years ended December 31: | |||||||||||||||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Warranty reserve liability | |||||||||||||||||||||||||
Beginning balance at January 1 | $ | 8 | $ | 6 | $ | 6 | |||||||||||||||||||
Accruals for warranties issued | 15 | 17 | 13 | ||||||||||||||||||||||
Settlements (in cash or kind) | (15 | ) | (15 | ) | (13 | ) | |||||||||||||||||||
Balance at end of period | $ | 8 | $ | 8 | $ | 6 | |||||||||||||||||||
Committed Operating Leases Less Sublease Rentals | ' | ||||||||||||||||||||||||
Future minimum operating lease payments and committed subleases under non-cancelable leases as of December 31, 2013, for the following fiscal years were: | |||||||||||||||||||||||||
Total | |||||||||||||||||||||||||
In millions | Amounts | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Operating lease obligations | $ | 73 | $ | 22 | $ | 20 | $ | 13 | $ | 10 | $ | 8 | |||||||||||||
Sublease rentals | (11 | ) | (3 | ) | (3 | ) | (3 | ) | (2 | ) | 0 | ||||||||||||||
Total committed operating leases less sublease rentals | $ | 62 | $ | 19 | $ | 17 | $ | 10 | $ | 8 | $ | 8 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Signficant | |||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||
In millions | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets | |||||||||||||||||
Money market funds, December 31, 2013 | $ | 318 | $ | 318 | $ | 0 | $ | 0 | |||||||||
Money market funds, December 31, 2012 | $ | 260 | $ | 260 | $ | 0 | $ | 0 |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Annual Contractual Maturities of Principal on Debt Outstanding | ' | ||||
Annual contractual maturities of principal on debt outstanding at December 31, 2013, are as follows: | |||||
In millions | |||||
2014 | $ | 26 | |||
2015 | 53 | ||||
2016 | 195 | ||||
Total | $ | 274 | |||
Segment_Other_Supplemental_Inf1
Segment, Other Supplemental Information and Concentrations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Regional Segment Revenue and Segment Gross Margin | ' | ||||||||||||
The following table presents regional segment revenue and segment gross margin for the Company for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Segment revenue | |||||||||||||
Americas (1) | $ | 1,633 | $ | 1,619 | $ | 1,436 | |||||||
International | 1,059 | 1,046 | 926 | ||||||||||
Total revenue | 2,692 | 2,665 | 2,362 | ||||||||||
Segment gross margin | |||||||||||||
Americas | 947 | 967 | 837 | ||||||||||
International | 526 | 524 | 456 | ||||||||||
Total gross margin | 1,473 | 1,491 | 1,293 | ||||||||||
Selling, general and administrative expenses | 757 | 728 | 663 | ||||||||||
Research and development expenses | 184 | 183 | 174 | ||||||||||
Total income from operations | 532 | 580 | 456 | ||||||||||
Other (expense) income, net | (24 | ) | (2 | ) | 25 | ||||||||
Income before income taxes | $ | 508 | $ | 578 | $ | 481 | |||||||
(1) | The Americas region includes revenue from the United States of $1,511 million in 2013, $1,478 million in 2012 and $1,315 million in 2011. | ||||||||||||
Revenue by Product and Services | ' | ||||||||||||
The following table presents revenue by product and services revenue for the Company for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Products (software and hardware)(1) | $ | 1,230 | $ | 1,297 | $ | 1,122 | |||||||
Consulting services | 818 | 776 | 695 | ||||||||||
Maintenance services | 644 | 592 | 545 | ||||||||||
Total services | 1,462 | 1,368 | 1,240 | ||||||||||
Total revenue | $ | 2,692 | $ | 2,665 | $ | 2,362 | |||||||
(1) | Our analytic database 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. | ||||||||||||
Property and Equipment by Geographic Area | ' | ||||||||||||
The following table presents property and equipment by geographic area at December 31: | |||||||||||||
In millions | 2013 | 2012 | |||||||||||
United States | $ | 131 | $ | 121 | |||||||||
Americas (excluding United States) | 3 | 3 | |||||||||||
International | 27 | 26 | |||||||||||
Property and equipment, net | $ | 161 | $ | 150 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Changes in Accumulated Other Comprehensive Income (AOCI), Net of Tax | ' | ||||||||||||||
The following table provides information on changes in accumulated other comprehensive income (“AOCI”), net of tax, for the three years ended December 31: | |||||||||||||||
In millions | Defined benefit | Foreign currency | Total AOCI | ||||||||||||
plans | translation | ||||||||||||||
adjustments | |||||||||||||||
Balance as of December 31, 2010 | $ | (19 | ) | $ | 31 | $ | 12 | ||||||||
Other comprehensive income (loss) before reclassifications | 6 | (6 | ) | 0 | |||||||||||
Amounts reclassified from AOCI | 4 | 0 | 4 | ||||||||||||
Net other comprehensive income (loss) | 10 | (6 | ) | 4 | |||||||||||
Balance as of December 31, 2011 | (9 | ) | 25 | 16 | |||||||||||
Other comprehensive income before reclassifications | 2 | 9 | 11 | ||||||||||||
Amounts reclassified from AOCI | 2 | 0 | 2 | ||||||||||||
Net other comprehensive income | 4 | 9 | 13 | ||||||||||||
Balance as of December 31, 2012 | (5 | ) | 34 | 29 | |||||||||||
Other comprehensive income before reclassifications | 0 | 2 | 2 | ||||||||||||
Amounts reclassified from AOCI | 2 | 0 | 2 | ||||||||||||
Net other comprehensive income | 2 | 2 | 4 | ||||||||||||
Balance as of December 31, 2013 | $ | (3 | ) | $ | 36 | $ | 33 | ||||||||
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: | |||||||||||||||
In millions | For the year ended December 31 | ||||||||||||||
AOCI Component | Location | 2013 | 2012 | 2011 | |||||||||||
Defined benefit plans | Cost of services | $ | 2 | $ | 1 | $ | 2 | ||||||||
Defined benefit plans | Selling, general and administrative expenses | 1 | 0 | 0 | |||||||||||
Defined benefit plans | Research and debelopment expenes | (1 | ) | 1 | 2 | ||||||||||
Defined benefit plans | Net income | $ | 2 | $ | 2 | $ | 4 | ||||||||
Quarterly_Information_unaudite1
Quarterly Information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Results of Operations | ' | ||||||||||||||||
In millions, except per share amounts | First | Second | Third | Fourth | |||||||||||||
2013 | |||||||||||||||||
Total revenues | $ | 587 | $ | 670 | $ | 666 | $ | 769 | |||||||||
Gross margin | $ | 305 | $ | 379 | $ | 358 | $ | 431 | |||||||||
Operating income | $ | 76 | $ | 147 | $ | 132 | $ | 177 | |||||||||
Net income | $ | 59 | $ | 108 | $ | 98 | $ | 112 | |||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.36 | $ | 0.66 | $ | 0.6 | $ | 0.69 | |||||||||
Diluted | $ | 0.35 | $ | 0.65 | $ | 0.59 | $ | 0.68 | |||||||||
2012 | |||||||||||||||||
Total revenues | $ | 613 | $ | 665 | $ | 647 | $ | 740 | |||||||||
Gross margin | $ | 338 | $ | 382 | $ | 361 | $ | 410 | |||||||||
Operating income | $ | 127 | $ | 160 | $ | 143 | $ | 150 | |||||||||
Net income | $ | 91 | $ | 112 | $ | 104 | $ | 112 | |||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.54 | $ | 0.66 | $ | 0.62 | $ | 0.67 | |||||||||
Diluted | $ | 0.53 | $ | 0.65 | $ | 0.6 | $ | 0.66 |
Description_of_Business_Basis_3
Description of Business Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Depreciation | $48,000,000 | $41,000,000 | $33,000,000 |
Goodwill impairment charges | $0 | $0 | $0 |
Antidilutive options to purchase were excluded from computation of diluted earnings per share | 0.9 | 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 | 3 | ' | ' |
Capitalized Software | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Intangible assets amortizable period | '4 years | ' | ' |
Minimum | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Fees payment term (in days) | 30 | ' | ' |
Intangible assets amortizable period | '1 year | ' | ' |
Maximum | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Fees payment term (in days) | 90 | ' | ' |
Intangible assets amortizable period | '10 years | ' | ' |
Equipment | Minimum | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated Useful Lives | '3 years | ' | ' |
Equipment | Maximum | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated Useful Lives | '20 years | ' | ' |
Building | Minimum | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated Useful Lives | '25 years | ' | ' |
Building | Maximum | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated Useful Lives | '45 years | ' | ' |
Activities_Relating_to_Capital
Activities Relating to Capitalized Software (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Ending balance | $195 | $173 | ' |
Internal-Use Software | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning balance | 12 | 11 | 11 |
Capitalized | 6 | 6 | 5 |
Amortization | -6 | -5 | -5 |
Ending balance | 12 | 12 | 11 |
External-Use Software | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning balance | 161 | 129 | 105 |
Capitalized | 72 | 75 | 63 |
Amortization | -50 | -43 | -39 |
Ending balance | $183 | $161 | $129 |
Aggregate_Amortization_Expense
Aggregate Amortization Expense for Internal and External-Use Software (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Acquired Intangible Assets Amortization [Line Items] | ' |
Amortization expense - Actual 2013 | $44 |
Amortization expense - 2014 | 45 |
Amortization expense - 2015 | 37 |
Amortization expense - 2016 | 27 |
Amortization expense - 2017 | 18 |
Amortization expense - 2018 | 7 |
Internal-Use Software | ' |
Acquired Intangible Assets Amortization [Line Items] | ' |
Amortization expense - Actual 2013 | 6 |
Amortization expense - 2014 | 5 |
Amortization expense - 2015 | 4 |
Amortization expense - 2016 | 2 |
Amortization expense - 2017 | 1 |
Amortization expense - 2018 | 0 |
External-Use Software | ' |
Acquired Intangible Assets Amortization [Line Items] | ' |
Amortization expense - Actual 2013 | 50 |
Amortization expense - 2014 | 62 |
Amortization expense - 2015 | 54 |
Amortization expense - 2016 | 41 |
Amortization expense - 2017 | 21 |
Amortization expense - 2018 | $5 |
Components_of_Basic_and_Dilute
Components of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income available for common stockholders | $112 | $98 | $108 | $59 | $112 | $104 | $112 | $91 | $377 | $419 | $353 |
Weighted average outstanding shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 163.4 | 168.2 | 168.1 |
Dilutive effect of employee stock options and restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 3.5 | 3.8 |
Common stock and common stock equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 166.4 | 171.7 | 171.9 |
Basic | $0.69 | $0.60 | $0.66 | $0.36 | $0.67 | $0.62 | $0.66 | $0.54 | $2.31 | $2.49 | $2.10 |
Diluted | $0.68 | $0.59 | $0.65 | $0.35 | $0.66 | $0.60 | $0.65 | $0.53 | $2.27 | $2.44 | $2.05 |
Supplemental_Financial_Informa2
Supplemental Financial Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Trade | $731 | $683 |
Other | 4 | 3 |
Accounts receivable, gross | 735 | 686 |
Less: allowance for doubtful accounts | -18 | -18 |
Total accounts receivable, net | 717 | 668 |
Finished goods | 39 | 26 |
Service parts | 17 | 21 |
Total inventories | 56 | 47 |
Current deferred tax assets | 34 | 36 |
Other | 61 | 54 |
Total other current assets | 95 | 90 |
Land | 8 | 8 |
Buildings and improvements | 74 | 67 |
Machinery and other equipment | 309 | 280 |
Property and equipment, gross | 391 | 355 |
Less: accumulated depreciation | -230 | -205 |
Total property and equipment, net | 161 | 150 |
Sales and value-added taxes | 34 | 28 |
Current portion of long-term debt | 26 | 15 |
Other | 76 | 89 |
Total other current liabilities | 136 | 132 |
Deferred revenue, current | 390 | 375 |
Long-term deferred revenue | 25 | 30 |
Total deferred revenue | $415 | $405 |
Goodwill_by_Operating_Segment_
Goodwill by Operating Segment (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Goodwill | ' |
Balance December 31, 2012 | $932 |
Additions | 16 |
Currency Translation Adjustments | -2 |
Balance December 31, 2013 | 946 |
Americas | ' |
Goodwill | ' |
Balance December 31, 2012 | 616 |
Additions | 12 |
Currency Translation Adjustments | -2 |
Balance December 31, 2013 | 626 |
International | ' |
Goodwill | ' |
Balance December 31, 2012 | 316 |
Additions | 4 |
Currency Translation Adjustments | 0 |
Balance December 31, 2013 | $320 |
Gross_Carrying_Amount_and_Accu
Gross Carrying Amount and Accumulated Amortization for Teradata Acquired Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets | ' | ' |
Accumulated Amortization and Currency Translation Adjustments | ($102) | ($65) |
Gross Carrying Amount | 251 | 251 |
Intellectual property/developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Accumulated Amortization and Currency Translation Adjustments | -70 | -48 |
Gross Carrying Amount | 153 | 153 |
Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Accumulated Amortization and Currency Translation Adjustments | -23 | -14 |
Gross Carrying Amount | 77 | 77 |
Trademarks/trade names | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Accumulated Amortization and Currency Translation Adjustments | -7 | -2 |
Gross Carrying Amount | 15 | 15 |
In-process research and development | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '5 years | ' |
Accumulated Amortization and Currency Translation Adjustments | -1 | 0 |
Gross Carrying Amount | 5 | 5 |
Non-compete agreements | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Accumulated Amortization and Currency Translation Adjustments | -1 | -1 |
Gross Carrying Amount | $1 | $1 |
Minimum | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '1 year | ' |
Minimum | Intellectual property/developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '1 year | ' |
Minimum | Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '3 years | ' |
Minimum | Trademarks/trade names | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '1 year | ' |
Minimum | Non-compete agreements | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '1 year | ' |
Maximum | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '10 years | ' |
Maximum | Intellectual property/developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '7 years | ' |
Maximum | Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '10 years | ' |
Maximum | Trademarks/trade names | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '5 years | ' |
Maximum | Non-compete agreements | ' | ' |
Acquired Finite-Lived Intangible Assets | ' | ' |
Amortization Life (in Years) | '3 years | ' |
Aggregate_Amortization_Expense1
Aggregate Amortization Expense for Acquired Intangible Assets (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Acquired Intangible Assets Amortization [Line Items] | ' |
Amortization expense - Actual 2013 | $44 |
Amortization expense - 2014 | 45 |
Amortization expense - 2015 | 37 |
Amortization expense - 2016 | 27 |
Amortization expense - 2017 | 18 |
Amortization expense - 2018 | $7 |
Income_Before_Income_Taxes_Det
Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax [Line Items] | ' | ' | ' |
United States | $362 | $388 | $309 |
Foreign | 146 | 190 | 172 |
Income before income taxes | $508 | $578 | $481 |
Income_Tax_Expense_Detail
Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Income Tax [Line Items] | ' | ' | ' |
Federal - Current | $78 | $50 | $26 |
State and local - Current | 10 | 9 | 3 |
Foreign - Current | 26 | 23 | 29 |
Federal - Deferred | 18 | 72 | 64 |
State and local - Deferred | 2 | 7 | 8 |
Foreign - Deferred | -3 | -2 | -2 |
Total income tax expense | $131 | $159 | $128 |
Difference_Between_the_Effecti
Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Income tax expense at the U.S. federal tax rate | 35.00% | 35.00% | 35.00% |
Foreign income tax differential | -7.30% | -8.10% | -7.40% |
State and local income taxes | 0.40% | 0.70% | 1.30% |
U.S. permanent book/tax differences | -1.60% | -0.50% | -1.80% |
Other, net | -0.70% | 0.40% | -0.50% |
Total income tax expense | 25.80% | 27.50% | 26.60% |
Income_Taxes_Additional_inform
Income Taxes - Additional information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes | ' | ' | ' |
Other tax expense/ benefit | $4,000,000 | ' | ' |
Material discrete tax items reflected in the effective tax rate | ' | 0 | ' |
Tax benefit book gain recorded on previous equity investment | ' | ' | 4,000,000 |
Tax credit carryforwards recognized as deferred tax assets on balance sheet | 41,000,000 | ' | ' |
Deferred tax asset valuation allowance | 13,000,000 | 9,000,000 | ' |
Tax credit carryforwards not recognized as deferred tax assets on balance sheet | 14,000,000 | ' | ' |
Deferred tax liability from foreign subsidiaries | 1,000,000,000 | ' | ' |
Tax liability related to uncertain tax positions | 34,000,000 | 31,000,000 | 28,000,000 |
Uncertain tax positions recognized as noncurrent liability on balance sheet | 20,000,000 | ' | ' |
Uncertain tax positions related to business acquisitions not recognized on balance sheet | 14,000,000 | ' | ' |
Interest accruals related to uncertain tax liabilities | 1,000,000 | ' | ' |
United States And Certain Foreign Jurisdictions | ' | ' | ' |
Income Taxes | ' | ' | ' |
Net operating loss carryforwards in the United States and certain foreign jurisdictions | 33,000,000 | ' | ' |
Operating loss carryforwards - Expiration date | '2014 | ' | ' |
Research and Development Tax Credit | ' | ' | ' |
Income Taxes | ' | ' | ' |
Operating loss carryforwards - Expiration date | '2014 | ' | ' |
Research and development tax credit carryforwards | 22,000,000 | ' | ' |
Deferred tax asset valuation allowance | $11,000,000 | ' | ' |
Deferred_Income_Tax_Assets_and
Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' |
Employee pensions and other liabilities | $57 | $54 |
Other balance sheet reserves and allowances | 22 | 27 |
Deferred revenue | 2 | 4 |
Tax loss and credit carryforwards | 41 | 41 |
Capitalized research and development | 5 | 16 |
Other | 1 | 0 |
Total deferred income tax assets | 128 | 142 |
Valuation allowance | -13 | -9 |
Net deferred income tax assets | 115 | 133 |
Intangibles and capitalized software | 117 | 123 |
Property and equipment | 29 | 26 |
Other | 0 | 5 |
Total deferred income tax liabilities | 146 | 154 |
Total net deferred income tax liabilities | ($31) | ($21) |
Liability_Related_to_Uncertain
Liability Related to Uncertain Tax Positions (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Unrecognized Tax Benefits [Line Items] | ' | ' |
Balance at January 1 | $31 | $28 |
Gross increases for prior period tax positions | 1 | 0 |
Gross decreases for prior period tax positions | -3 | -1 |
Gross increases for current period tax positions | 5 | 4 |
Balance at December 31 | $34 | $31 |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock options | $14 | $15 | $14 |
Restricted stock | 32 | 28 | 21 |
Employee share repurchase program (compensatory effective 1/1/13) | 3 | 0 | 0 |
Total stock-based compensation before income taxes | 49 | 43 | 35 |
Tax benefit | -16 | -14 | -13 |
Total stock-based compensation, net of tax | $33 | $29 | $22 |
Employee_Stockbased_Compensati2
Employee Stock-based Compensation Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 01, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Long-Term Strategic PBRSUs | Employee Stock Purchase Program | Employee Stock Purchase Program | Employee Stock Purchase Program | Employee Stock Purchase Program | Stock Option | Stock Option | Stock Option | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock Units With Market Based Performance Criteria | Restricted Stock Units With Market Based Performance Criteria | Service-Based Awards | Service-Based Awards | Performance Based Awards | Performance Based Awards | Employee Stock Option | |||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized to be issued under the Teradata SIP | ' | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Vesting period(in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | '1 year | '4 years | '4 years |
Weighted-average fair value of options granted for Teradata equity awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18.02 | $22.31 | $18.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate within the contractual life of the option | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The risk-free interest rate for periods within the contractual life of the option is based on an average of the five-year and seven-year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19,000,000 | $113,000,000 | $38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received by the Company from option exercises under all share-based payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | 43,000,000 | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit realized from stock options exercises | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 38,000,000 | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to unvested stock grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000,000 | ' | ' | 68,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost expected to be recognized over a weighted-average period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 1 month 6 days | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average fair value of restricted stock unit awards granted | ' | $48.24 | $60.71 | $45.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.78 | ' | ' | ' | ' | ' | ' |
Total fair value of shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | 15,000,000 | 11,000,000 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock unit awards granted | ' | 995,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' |
Number of types of market based performance awards | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance based restricted units percentage of total units allocated | 70.00% | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense for restricted stock awards | ' | 32,000,000 | 28,000,000 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Employee stock purchase program discount from average market price | ' | ' | ' | ' | ' | 15.00% | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of authorized payroll deductions for common stock purchases by employees | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized to be issued under the Employee Stock Purchase Program | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining shares authorized to be issued under the Employee Stock Purchase Program | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee purchased shares | ' | ' | ' | ' | ' | ' | 400,000 | 200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee purchased shares estimated cost | ' | ' | ' | ' | ' | ' | $20,000,000 | $12,000,000 | $9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Each_Option_Awar
Fair Value of Each Option Award on the Grant Date Using the Black-Scholes Option-Pricing Model (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.77% | 0.87% | 1.63% |
Expected volatility | 37.60% | 35.70% | 39.50% |
Expected term (years) | '6 years 3 months 18 days | '6 years 3 months 18 days | '6 years 3 months 18 days |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Shares Under Option | ' | ' |
Shares Under Option, Outstanding at beginning period | 6,638 | ' |
Shares Under Option, Granted | 918 | ' |
Shares Under Option, Exercised | -460 | ' |
Shares Under Option, Canceled | -18 | ' |
Shares Under Option, Forfeited | -66 | ' |
Shares Under Option, Outstanding at ending period | 7,012 | 6,638 |
Shares Under Option, Fully vested and expected to vest at ending period | 6,974 | ' |
Shares Under Option, Exercisable at ending period | 5,019 | ' |
Weighted-Average Exercise Price per Share | ' | ' |
Weighted - Average Exercise Price per Share, Outstanding at beginning period | $30.69 | ' |
Weighted - Average Exercise Price per Share, Granted | $45.43 | ' |
Weighted - Average Exercise Price per Share, Exercised | $18.62 | ' |
Weighted - Average Exercise Price per Share, Canceled | $11.48 | ' |
Weighted - Average Exercise Price per Share, Forfeited | $50.50 | ' |
Weighted - Average Exercise Price per Share, Outstanding at ending period | $33.27 | $30.69 |
Weighted - Average Exercise Price per Share, Fully vested and expected to vest at ending period | $33.17 | ' |
Weighted - Average Exercise Price per Share, Exercisable at ending period | $26.68 | ' |
Weighted-Average Remaining Contractual Term | ' | ' |
Weighted - Average Remaining Contractual Term (in years), Outstanding | '6 years 3 months 18 days | '6 years 8 months 12 days |
Weighted - Average Remaining Contractual Term (in years), Fully vested and expected to vest at ending period | '6 years 3 months 18 days | ' |
Weighted - Average Remaining Contractual Term (in years), Exercisable at ending period | '5 years 3 months 18 days | ' |
Aggregate Intrinsic Value | ' | ' |
Aggregate Intrinsic Value, Outstanding at beginning period | $207 | ' |
Aggregate Intrinsic Value, Outstanding at ending period | 100 | 207 |
Aggregate Intrinsic Value, Fully vested and expected to vest at ending period | 100 | ' |
Aggregate Intrinsic Value, Exercisable at ending period | $99 | ' |
Restricted_Stock_and_Restricte
Restricted Stock and Restricted Stock Unit Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of Shares | ' | ' | ' |
Number of Shares, Unvested shares at beginning period | 2,373 | ' | ' |
Number of Shares, Granted | 995 | ' | ' |
Number of Shares, Vested | -704 | ' | ' |
Number of Shares, Forfeited/canceled | -86 | ' | ' |
Number of Shares, Unvested shares at ending period | 2,578 | 2,373 | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Weighted - Average Grant Date Fair Value per Share, Unvested shares at beginning period | $51.37 | ' | ' |
Weighted - Average Grant Date Fair Value per Share, Granted | $48.24 | $60.71 | $45.19 |
Weighted - Average Grant Date Fair Value per Share, Vested | $42.88 | ' | ' |
Weighted - Average Grant Date Fair Value per Share, Forfeited/canceled | $53.75 | ' | ' |
Weighted - Average Grant Date Fair Value per Share, Unvested Shares at ending period | $50.30 | $51.37 | ' |
Composition_of_Teradata_Restri
Composition of Teradata Restricted Stock Grants (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares | 995 | ' | ' |
Weighted-Average Grant Date Fair Value | $48.24 | $60.71 | $45.19 |
Service-Based Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares | 911 | ' | ' |
Weighted-Average Grant Date Fair Value | $46.90 | ' | ' |
Performance-Based Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Shares | 84 | ' | ' |
Weighted-Average Grant Date Fair Value | $62.77 | ' | ' |
Primary_Assumptions_Valuation_
Primary Assumptions Valuation Market Component Awards (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Grant date fair value per share of Company common stock | $50.30 | $51.37 | ' |
Expected volatility | 37.60% | 35.70% | 39.50% |
Risk-free interest rate | 1.77% | 0.87% | 1.63% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Restricted Stock Units With Market Based Performance Criteria | ' | ' | ' |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Grant date fair value per share of Company common stock | ' | $58.63 | ' |
Expected volatility | ' | 36.44% | ' |
Risk-free interest rate | ' | 0.47% | ' |
Dividend yield | ' | 0.00% | ' |
Performance vesting hurdle - future fair value per share of Company common stock | ' | $85 | ' |
Schedule_of_Pension_and_Postem
Schedule of Pension and Postemployment Benefit Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefit Costs | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $10 | $9 | $9 |
Interest cost | 3 | 4 | 4 |
Expected return on plan assets | -2 | -3 | -3 |
Settlement charge | 1 | 1 | 3 |
Employee contributions | -1 | -1 | -1 |
Amortization of actuarial loss (gain) | 2 | 1 | 1 |
Total costs | 13 | 11 | 13 |
Postemployment Benefit Costs | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 3 | 4 | 4 |
Interest cost | 1 | 1 | 2 |
Expected return on plan assets | 0 | 0 | 0 |
Settlement charge | 0 | 0 | 0 |
Employee contributions | 0 | 0 | 0 |
Amortization of actuarial loss (gain) | -1 | 0 | 0 |
Total costs | $3 | $5 | $6 |
Changes_in_Benefit_Obligations
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 (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | $76 | $69 |
Pension Benefit Obligations | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Amounts Recognized in the Balance Sheet - Noncurrent assets | 1 | ' |
Amounts Recognized in the Balance Sheet - Current liabilities | -1 | -1 |
Amounts Recognized in the Balance Sheet - Noncurrent liabilities | -53 | -52 |
Amounts Recognized in the Balance Sheet - Net amounts recognized | -53 | -53 |
Amounts Recognized in Accumulated Other Comprehensive Income - Net actuarial loss (gain) | 26 | 32 |
Amounts Recognized in Accumulated Other Comprehensive Income - Prior service credit | -2 | -2 |
Amounts Recognized in Accumulated Other Comprehensive Income - Total | 24 | 30 |
Pension Benefit Obligations | Change In Benefit Obligation | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Benefit obligation at January 1 | 122 | 108 |
Service cost | 8 | 8 |
Interest cost | 4 | 4 |
Plan participant contribution | 1 | 1 |
Actuarial loss (gain) | 6 | 9 |
Benefits paid | -6 | -7 |
Currency translation adjustments | -6 | -1 |
Benefit obligation at December 31 | 129 | 122 |
Pension Benefit Obligations | Change in Plan Assets | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 69 | 59 |
Actual return on plan assets | 9 | 5 |
Company contributions | 10 | 12 |
Plan participant contribution | 1 | 1 |
Benefits paid | -6 | -7 |
Currency translation adjustments | -7 | -1 |
Fair value of plan assets at December 31 | 76 | 69 |
Funded status (underfunded) | -53 | -53 |
Postemployment Benefit Obligations | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Amounts Recognized in the Balance Sheet - Current liabilities | -4 | -4 |
Amounts Recognized in the Balance Sheet - Noncurrent liabilities | -23 | -21 |
Amounts Recognized in the Balance Sheet - Net amounts recognized | -27 | -25 |
Amounts Recognized in Accumulated Other Comprehensive Income - Net actuarial loss (gain) | -12 | -16 |
Amounts Recognized in Accumulated Other Comprehensive Income - Prior service credit | 0 | 0 |
Amounts Recognized in Accumulated Other Comprehensive Income - Total | -12 | -16 |
Postemployment Benefit Obligations | Change In Benefit Obligation | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Benefit obligation at January 1 | 25 | 33 |
Service cost | 3 | 4 |
Interest cost | 1 | 1 |
Plan participant contribution | 0 | 0 |
Actuarial loss (gain) | 3 | -11 |
Benefits paid | -4 | -2 |
Currency translation adjustments | -1 | 0 |
Benefit obligation at December 31 | 27 | 25 |
Postemployment Benefit Obligations | Change in Plan Assets | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Company contributions | 0 | 0 |
Plan participant contribution | 0 | 0 |
Benefits paid | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Fair value of plan assets at December 31 | 0 | 0 |
Funded status (underfunded) | ($27) | ($25) |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Accumulated pension benefit obligation | $120 | $113 | ' |
Pension plans with accumulated benefit obligation in excess of plan assets, projected benefit obligation | 55 | 98 | ' |
Pension plans with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 49 | 90 | ' |
Pension plans with accumulated benefit obligations in excess of plan assets fair value of plan assets | 3 | 45 | ' |
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 | 10.00% | ' | ' |
Amount Company plans to contribute to the international pension plans | 9 | ' | ' |
Amount Company plans to contribute for postemployment benefit obligations plan | 4 | ' | ' |
U. S. Savings Plan Cost | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined contribution plan, cost recognized | 23 | 21 | 19 |
International Subsidiary Savings Plan Cost | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined contribution plan, cost recognized | $17 | $18 | $14 |
Pretax_Net_Changes_in_Projecte
Pre-tax Net Changes in Projected Benefit Obligations Recognized in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total recognized in other comprehensive (income) expense | ($2) | ($7) | ($12) |
Pension Benefit Obligations | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Actuarial (gain) loss arising during the year | -1 | 7 | ' |
Amortization of (gain) loss included in net periodic benefit cost | -2 | -1 | ' |
Recognition of loss due to settlement | -1 | -1 | ' |
Foreign currency exchange | -1 | 0 | ' |
Total recognized in other comprehensive (income) expense | -5 | 5 | ' |
Postemployment Benefit Obligations | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Actuarial (gain) loss arising during the year | 2 | -12 | ' |
Amortization of (gain) loss included in net periodic benefit cost | 1 | 0 | ' |
Recognition of loss due to settlement | 0 | 0 | ' |
Foreign currency exchange | 0 | 0 | ' |
Total recognized in other comprehensive (income) expense | $3 | ($12) | ' |
Amounts_in_Accumulated_Other_C
Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Pension Benefit Costs | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net loss (gain) to be recognized in other comprehensive income | $2 |
Postemployment Benefit Costs | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net loss (gain) to be recognized in other comprehensive income | ($1) |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefit Obligations | ' | ' |
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | ' | ' |
Discount rate | 3.00% | 3.00% |
Rate of compensation increase | 3.20% | 3.30% |
Postemployment Benefit Obligations | ' | ' |
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | ' | ' |
Discount rate | 3.80% | 3.40% |
Rate of compensation increase | 3.70% | 3.80% |
Involuntary turnover rate | 1.00% | 1.00% |
Pension Benefit Costs | ' | ' |
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | ' | ' |
Discount rate | 3.00% | 3.70% |
Rate of compensation increase | 3.30% | 3.30% |
Expected return on plan assets | 3.40% | 4.00% |
Postemployment Benefit Costs | ' | ' |
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | ' | ' |
Discount rate | 3.40% | 4.10% |
Rate of compensation increase | 3.80% | 3.70% |
Involuntary turnover rate | 1.00% | 1.50% |
Weighted_Average_Asset_Allocat
Weighted Average Asset Allocations by Asset Category (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ' | ' |
Actual Asset Allocation | 100.00% | 100.00% |
Target Asset Allocation | 100.00% | ' |
Equity Securities | ' | ' |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ' | ' |
Actual Asset Allocation | 34.00% | 39.00% |
Target Asset Allocation | 36.00% | ' |
Debt Securities | ' | ' |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ' | ' |
Actual Asset Allocation | 37.00% | 36.00% |
Target Asset Allocation | 41.00% | ' |
Insurance (annuity) contracts | ' | ' |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ' | ' |
Actual Asset Allocation | 13.00% | 11.00% |
Target Asset Allocation | 13.00% | ' |
Real Estate | ' | ' |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ' | ' |
Actual Asset Allocation | 6.00% | 5.00% |
Target Asset Allocation | 3.00% | ' |
Other | ' | ' |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ' | ' |
Actual Asset Allocation | 10.00% | 9.00% |
Target Asset Allocation | 7.00% | ' |
Schedule_of_Pension_Plan_Asset
Schedule of Pension Plan Assets at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Money market funds | $3 | $2 | ' |
Equity funds | 26 | 27 | ' |
Bond/fixed-income funds | 28 | 25 | ' |
Real-estate indirect investment | 5 | 4 | ' |
Commodities/Other | 4 | 3 | ' |
Insurance contracts | 10 | 8 | 7 |
Total Assets at fair value | 76 | 69 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Money market funds | 0 | 0 | ' |
Equity funds | 0 | 0 | ' |
Bond/fixed-income funds | 0 | 0 | ' |
Real-estate indirect investment | 0 | 0 | ' |
Commodities/Other | 0 | 0 | ' |
Insurance contracts | 0 | 0 | ' |
Total Assets at fair value | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Money market funds | 3 | 2 | ' |
Equity funds | 26 | 27 | ' |
Bond/fixed-income funds | 28 | 25 | ' |
Real-estate indirect investment | 5 | 4 | ' |
Commodities/Other | 4 | 3 | ' |
Insurance contracts | 0 | 0 | ' |
Total Assets at fair value | 66 | 61 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Money market funds | 0 | 0 | ' |
Equity funds | 0 | 0 | ' |
Bond/fixed-income funds | 0 | 0 | ' |
Real-estate indirect investment | 0 | 0 | ' |
Commodities/Other | 0 | 0 | ' |
Insurance contracts | 10 | 8 | ' |
Total Assets at fair value | $10 | $8 | ' |
Summary_of_Changes_in_Fair_Val
Summary of Changes in Fair Value of Pension Plan Level 3 Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Balance as of January 1 | $8 | $7 |
Purchases, sales and settlements, net | 2 | 1 |
Balance as of December 31 | $10 | $8 |
Estimated_Future_Benefit_Payme
Estimated Future Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefit Obligations | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $4 |
2015 | 6 |
2016 | 7 |
2017 | 7 |
2018 | 7 |
2019-2023 | 32 |
Postemployment Benefit Obligations | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 4 |
2015 | 4 |
2016 | 4 |
2017 | 4 |
2018 | 3 |
2019-2023 | $15 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative | ' | ' |
Notional amount of foreign exchange forward contracts on a net basis | $24 | $53 |
Foreign Exchange Contract | ' | ' |
Derivative | ' | ' |
Notional amount of foreign exchange forward contracts | $152 | $140 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2013 |
Loss 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 | 4 | ' | ' | ' |
Rental expense | 26 | 25 | 23 | ' |
Sublease rental income | $3 | $3 | $3 | ' |
Warranty_Reserve_Activity_Deta
Warranty Reserve Activity (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Guarantor Obligations [Line Items] | ' | ' | ' |
Beginning balance at January 1 | $8 | $6 | $6 |
Accruals for warranties issued | 15 | 17 | 13 |
Settlements (in cash or kind) | -15 | -15 | -13 |
Balance at end of period | $8 | $8 | $6 |
Future_Minimum_Operating_Lease
Future Minimum Operating Lease Payments and Committed Subleases Under Non-cancelable Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
Operating lease obligations - Total Amounts | $73 |
Operating lease obligations - 2014 | 22 |
Operating lease obligations - 2015 | 20 |
Operating lease obligations - 2016 | 13 |
Operating lease obligations - 2017 | 10 |
Operating lease obligations - 2018 | 8 |
Sublease rentals - Total Amounts | -11 |
Sublease rentals - 2014 | -3 |
Sublease rentals - 2015 | -3 |
Sublease rentals - 2016 | -3 |
Sublease rentals - 2017 | -2 |
Sublease rentals - 2018 | 0 |
Total committed operating leases less sublease rentals - Total Amounts | 62 |
Total committed operating leases less sublease rentals - 2014 | 19 |
Total committed operating leases less sublease rentals - 2015 | 17 |
Total committed operating leases less sublease rentals - 2016 | 10 |
Total committed operating leases less sublease rentals - 2017 | 8 |
Total committed operating leases less sublease rentals - 2018 | $8 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Money market funds | $318 | $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 | 318 | 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 $) | 1 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2012 | Apr. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
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 | ' | ' | 'The term loan is payable in quarterly installments, commencing in June 2012, with all remaining principal due on April 5, 2016. | ' | ' |
Term loan, due date | ' | 5-Apr-16 | ' | ' | ' |
Term loan payable | ' | ' | 274 | ' | ' |
Interest rate on term loan | ' | ' | 1.19% | ' | ' |
Interest expenses on borrowing | ' | ' | $4 | $4 | $4 |
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 | ' | ' |
Annual_Contractual_Maturities_
Annual Contractual Maturities of Principal on Debt Outstanding (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' |
2014 | $26 |
2015 | 53 |
2016 | 195 |
Total | $274 |
Segment_and_Other_Supplemental
Segment and Other Supplemental Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting Information | ' |
Number of operating segments | 2 |
Concentrations | 'No single customer accounts for more than 10% of the Company's revenue. |
Regional_Segment_Revenue_and_G
Regional Segment Revenue and Gross Margin for Company (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue | $769 | $666 | $670 | $587 | $740 | $647 | $665 | $613 | $2,692 | $2,665 | $2,362 | |||
Gross margin | 431 | 358 | 379 | 305 | 410 | 361 | 382 | 338 | 1,473 | 1,491 | 1,293 | |||
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 757 | 728 | 663 | |||
Research and development expenses | ' | ' | ' | ' | ' | ' | ' | ' | 184 | 183 | 174 | |||
Income from operations | 177 | 132 | 147 | 76 | 150 | 143 | 160 | 127 | 532 | 580 | 456 | |||
Other (expense) income, net | ' | ' | ' | ' | ' | ' | ' | ' | -24 | -2 | 25 | |||
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 508 | 578 | 481 | |||
Americas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,633 | [1] | 1,619 | [1] | 1,436 | [1] |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 947 | 967 | 837 | |||
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,059 | 1,046 | 926 | |||
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | $526 | $524 | $456 | |||
[1] | The Americas region includes revenue from the United States of $1,511 million in 2013, $1,478 million in 2012 and $1,315 million in 2011. |
Regional_Segment_Revenue_and_G1
Regional Segment Revenue and Gross Margin for Company (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | $769 | $666 | $670 | $587 | $740 | $647 | $665 | $613 | $2,692 | $2,665 | $2,362 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | $1,511 | $1,478 | $1,315 |
Revenue_by_Product_and_Service
Revenue by Product and Services (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Products (software and hardware) | ' | ' | ' | ' | ' | ' | ' | ' | $1,230 | [1] | $1,297 | [1] | $1,122 | [1] |
Consulting services | ' | ' | ' | ' | ' | ' | ' | ' | 818 | 776 | 695 | |||
Maintenance services | ' | ' | ' | ' | ' | ' | ' | ' | 644 | 592 | 545 | |||
Total services | ' | ' | ' | ' | ' | ' | ' | ' | 1,462 | 1,368 | 1,240 | |||
Total revenue | $769 | $666 | $670 | $587 | $740 | $647 | $665 | $613 | $2,692 | $2,665 | $2,362 | |||
[1] | Our analytic database 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. |
Schedule_of_Property_and_Equip
Schedule of Property and Equipment by Geographic Area (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Identifiable Assets By Segment [Line Items] | ' | ' |
Property and equipment, net | $161 | $150 |
United States | ' | ' |
Schedule Of Identifiable Assets By Segment [Line Items] | ' | ' |
Property and equipment, net | 131 | 121 |
Americas (Excluding United States) | ' | ' |
Schedule Of Identifiable Assets By Segment [Line Items] | ' | ' |
Property and equipment, net | 3 | 3 |
International | ' | ' |
Schedule Of Identifiable Assets By Segment [Line Items] | ' | ' |
Property and equipment, net | $27 | $26 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Jan. 31, 2011 | Apr. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2012 |
Aprimo Inc | Aster Data Systems, Inc. | Aster Data Systems, Inc. | ecircle Beteiligungs Gmbh | |||
Series of Individually Immaterial Business Acquisitions | ||||||
Business Acquisition | ' | ' | ' | ' | ' | ' |
Percentage of stock acquired | ' | ' | 100.00% | ' | ' | 100.00% |
Acquisition date of business | ' | ' | '2011-01 | '2011-04 | ' | ' |
Pre-existing equity investment | ' | ' | ' | 11.20% | ' | ' |
Gain (loss) on sale of equity investment | ($22) | $17 | ' | ' | ' | ' |
Gain on equity investment | ' | ' | ' | ' | $11 | ' |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (AOCI) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | $29 | $16 | $12 |
Other comprehensive (loss) income before reclassifications | 2 | 11 | 0 |
Amounts reclassified from AOCI | 2 | 2 | 4 |
Net other comprehensive (loss) income | 4 | 13 | 4 |
Ending Balance | 33 | 29 | 16 |
Defined Benefit Plans | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -5 | -9 | -19 |
Other comprehensive (loss) income before reclassifications | 0 | 2 | 6 |
Amounts reclassified from AOCI | 2 | 2 | 4 |
Net other comprehensive (loss) income | 2 | 4 | 10 |
Ending Balance | -3 | -5 | -9 |
Foreign Currency Translation Adjustments | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 34 | 25 | 31 |
Other comprehensive (loss) income before reclassifications | 2 | 9 | -6 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net other comprehensive (loss) income | 2 | 9 | -6 |
Ending Balance | $36 | $34 | $25 |
Impact_and_Location_of_AOCI_Re
Impact and Location of AOCI Reclassifications in Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of services | ' | ' | ' | ' | ' | ' | ' | ' | ($786) | ($758) | ($688) |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -757 | -728 | -663 |
Research and development expenses | ' | ' | ' | ' | ' | ' | ' | ' | -184 | -183 | -174 |
Net income | 112 | 98 | 108 | 59 | 112 | 104 | 112 | 91 | 377 | 419 | 353 |
Amount Reclassified from of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 4 |
Amount Reclassified from of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of services | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 1 | 2 |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0 | 0 |
Research and development expenses | ' | ' | ' | ' | ' | ' | ' | ' | ($1) | $1 | $2 |
Quarterly_Information_Detail
Quarterly Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $769 | $666 | $670 | $587 | $740 | $647 | $665 | $613 | $2,692 | $2,665 | $2,362 |
Gross margin | 431 | 358 | 379 | 305 | 410 | 361 | 382 | 338 | 1,473 | 1,491 | 1,293 |
Operating income | 177 | 132 | 147 | 76 | 150 | 143 | 160 | 127 | 532 | 580 | 456 |
Net income | $112 | $98 | $108 | $59 | $112 | $104 | $112 | $91 | $377 | $419 | $353 |
Basic | $0.69 | $0.60 | $0.66 | $0.36 | $0.67 | $0.62 | $0.66 | $0.54 | $2.31 | $2.49 | $2.10 |
Diluted | $0.68 | $0.59 | $0.65 | $0.35 | $0.66 | $0.60 | $0.65 | $0.53 | $2.27 | $2.44 | $2.05 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | $18 | $13 | $9 | |||
Additions Charged to Costs & Expenses | 1 | 2 | 5 | |||
Allowance for doubtful accounts, Charged to Other Accounts | 0 | [1] | 3 | [1] | 0 | [1] |
Deductions | 1 | 0 | 1 | |||
Balance at End of Period | 18 | 18 | 13 | |||
Deferred tax valuation Allowance | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | 9 | 0 | 0 | |||
Additions Charged to Costs & Expenses | 4 | 9 | 0 | |||
Allowance for doubtful accounts, Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | 0 | 0 | 0 | |||
Balance at End of Period | $13 | $9 | $0 | |||
[1] | The allowance for doubtful accounts increased by $3 million for the year ended December 31, 2012 due to reserves from acquired entities |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' |
Increase in allowance for doubtful accounts | $3 |