Teradata (TDC) 10-Q 7 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Oct. 31, 2014
Document Information	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'TDC	'
Entity Registrant Name	'TERADATA CORP /DE/	'
Entity Central Index Key	'0000816761	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	153

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (USD $)	3 Months Ended				9 Months Ended
In Millions, except Per Share data, unless otherwise specified	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Revenue	'		'		'		'
Product revenue	$294	[1]	$306	[1]	$867	[1]	$858	[1]
Service revenue	373		360		1,104		1,065
Total revenue	667		666		1,971		1,923
Costs and operating expenses	'		'		'		'
Cost of products	119		118		316		312
Cost of services	198		190		601		569
Selling, general and administrative expenses	181		183		557		547
Research and development expenses	46		43		152		140
Total costs and operating expenses	544		534		1,626		1,568
Income from operations	123		132		345		355
Other expense, net	0		0		-8		-1
Income before income taxes	123		132		337		354
Income tax expense	29		34		88		89
Net income	$94		$98		$249		$265
Net income per weighted average common share	'		'		'		'
Basic	$0.61		$0.60		$1.59		$1.62
Diluted	$0.60		$0.59		$1.57		$1.59
Weighted average common shares outstanding	'		'		'		'
Basic	154.5		163.2		156.6		164
Diluted	157.1		166.4		159.1		167.1
[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.

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net income	$94	$98	$249	$265
Other comprehensive (loss) income:	'	'	'	'
Foreign currency translation adjustments	-28	13	-28	-4
Defined benefit plans:	'	'	'	'
Defined benefit plan adjustment, before tax	-2	-6	-1	-6
Defined benefit plan adjustment, tax portion	0	2	0	2
Other comprehensive (loss) income	-30	9	-29	-8
Comprehensive income	$64	$107	$220	$257

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Current Assets	'	'
Cash and cash equivalents	$848	$695
Accounts receivable, net	522	717
Inventories	44	56
Other current assets	92	95
Total current assets	1,506	1,563
Property and equipment, net	157	161
Capitalized software, net	198	195
Goodwill	958	946
Acquired intangible assets, net	130	149
Deferred income taxes	23	24
Other assets	46	58
Total assets	3,018	3,096
Current liabilities	'	'
Current portion of long-term debt	45	26
Accounts payable	118	114
Payroll and benefits liabilities	127	136
Deferred revenue	380	390
Other current liabilities	101	110
Total current liabilities	771	776
Long-term debt	210	248
Pension and other postemployment plan liabilities	73	76
Long-term deferred revenue	22	25
Deferred tax liabilities	68	87
Other liabilities	32	27
Total liabilities	1,176	1,239
Commitments and contingencies (Note 7)	'	'
Stockholders' equity	'	'
Preferred stock: par value $0.01 per share, 100.0 shares authorized, 0.0 shares issued and outstanding at September 30, 2014 and December 31, 2013	0	0
Common stock: par value $0.01 per share, 500.0 shares authorized, 191.8 and 190.9 shares issued at September 30, 2014 and December 31, 2013, respectively	2	2
Paid-in capital	1,031	973
Treasury stock: 38.5 and 31.6 shares at September 30, 2014 and December 31, 2013, respectively	-1,477	-1,184
Retained earnings	2,282	2,033
Accumulated other comprehensive income	4	33
Total stockholders' equity	1,842	1,857
Total liabilities and stockholders' equity	$3,018	$3,096

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
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	191.8	190.9
Treasury stock, shares	38.5	31.6

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Operating activities	'	'
Net income	$249	$265
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	128	109
Stock-based compensation expense	36	39
Excess tax benefit from stock-based compensation	-2	-7
Deferred income taxes	-17	7
Loss on investments	9	0
Changes in assets and liabilities:	'	'
Receivables	199	126
Inventories	12	-19
Current payables and accrued expenses	-10	-86
Deferred revenue	-13	-5
Other assets and liabilities	-8	18
Net cash provided by operating activities	583	447
Investing activities	'	'
Expenditures for property and equipment	-37	-44
Additions to capitalized software	-57	-56
Business acquisitions and other investing activities, net	-49	-39
Net cash used in investing activities	-143	-139
Financing activities	'	'
Repurchases of common stock	-282	-187
Repayments of long-term borrowings	-19	-11
Excess tax benefit from stock-based compensation	2	7
Other financing activities, net	20	23
Net cash used in financing activities	-279	-168
Effect of exchange rate changes on cash and cash equivalents	-8	-7
Increase in cash and cash equivalents	153	133
Cash and cash equivalents at beginning of period	695	729
Cash and cash equivalents at end of period	$848	$862

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2014
Basis of Presentation	'
	1. Basis of Presentation
	These statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the results of operations, financial position and cash flows of Teradata Corporation (“Teradata” or the “Company”) for the interim periods presented herein. The year-end 2013 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates.
	These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Teradata’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “2013 Annual Report”). The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.

New_Accounting_Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2014
New Accounting Pronouncements	'
	2. New Accounting Pronouncements
	Revenue Recognition. In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The new guidance will supersede the revenue recognition requirements in the current revenue recognition guidance, and most industry-specific guidance. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in this update. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the FASB defines a five step process which includes the following: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.
	The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application not permitted. The standard allows entities to apply the standard retrospectively for all periods presented or alternatively an entity is permitted to recognize the cumulative effect of initially applying the guidance as an opening balance sheet adjustment to retained earnings in the period of initial application. The Company is currently evaluating the impact on its consolidated financial position, results of operations and cash flows, as well as the method of transition that will be used in adopting the standard.
	Accounting for Share-based Payments with Performance Targets. In June 2014, the FASB issued new guidance that would require that a performance target that affects vesting and that could be achieved after the requisite service period, be treated as a performance condition. A reporting entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The amendments in this update are effective for annual periods, and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company is currently evaluating the impact on its consolidated financial position, results of operations and cash flows.
	Recently Adopted Guidance. 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. On January 1, 2014, the Company adopted the new guidance which did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Supplemental_Financial_Informa

Supplemental Financial Information	9 Months Ended
	Sep. 30, 2014
Supplemental Financial Information	'
	3. Supplemental Financial Information
		As of
	In millions	September 30,		December 31,
		2014		2013
	Inventories
	Finished goods	$	27	$	39
	Service parts		17		17
	Total inventories	$	44	$	56
	Deferred revenue
	Deferred revenue, current	$	380	$	390
	Long-term deferred revenue		22		25
	Total deferred revenue	$	402	$	415

Goodwill_and_Acquired_Intangib

Goodwill and Acquired Intangible Assets	9 Months Ended
	Sep. 30, 2014
Goodwill and Acquired Intangible Assets	'
	4. Goodwill and Acquired Intangible Assets
	The following table identifies the activity relating to goodwill by operating segment:
	In millions	Balance		Additions		Currency			Balance
		December 31,				Translation			September 30,
		2013				Adjustments			2014
	Goodwill
	Americas	$	626	$	28	$	(1	)	$	653
	International		320		0		(15	)		305
	Total goodwill	$	946	$	28	$	(16	)	$	958
	The changes to goodwill for the nine months ended September 30, 2014 were due to immaterial acquisitions executed during the period, as well as changes in foreign currency exchange rates.
	Acquired intangible assets were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows:
				September 30, 2014					December 31, 2013
	In millions	Amortization		Gross		Accumulated			Gross		Accumulated
		Life (in Years)		Carrying		Amortization			Carrying		Amortization
				Amount		and Currency			Amount		and Currency
						Translation					Translation
						Adjustments					Adjustments
	Acquired intangible assets
	Intellectual property/developed technology		1 to 7	$	165	$	(86	)	$	153	$	(70	)
	Customer relationships		3 to 10		77		(32	)		77		(23	)
	Trademarks/trade names		1 to 5		15		(12	)		15		(7	)
	In-process research and development		5		5		(2	)		5		(1	)
	Non-compete agreements		1 to 3		1		(1	)		1		(1	)
	Total		1 to 10	$	263	$	(133	)	$	251	$	(102	)
	For the nine months ended September 30, 2014, the gross carrying amount of acquired intangible assets increased with the addition of newly acquired intangible assets associated with immaterial acquisitions. This was partially offset by certain intangible assets previously acquired that became fully amortized and were removed from the balance sheet.
	Total amortization expense related to acquired intangible assets was $12 million and $35 million for the three and nine months ended September 30, 2014 and $11 million and $33 million for the three and nine months ended September 30, 2013, respectively. The estimated amortization expense for acquired intangible assets for the following periods is as follows:
		Remainder of		For the year ended (estimated)
	In millions	2014		2015		2016			2017		2018			2019
	Amortization expense	$	13	$	39	$	30		$	22	$	10		$	8

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2014
Income Taxes	'
	5. Income Taxes
	Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items which are required to be discretely recognized within the current interim period. The Company’s intention is to permanently reinvest its foreign earnings outside of the United States. As a result, the effective tax rates in the periods presented are largely based upon the forecasted pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business that apply a broad range of statutory income tax rates, a large majority of which are less than the U.S. statutory rate.
	The effective tax rate for the three months ended September 30, 2014 and September 30, 2013 was 23.6% and 25.8%, respectively. The effective tax rate for the nine months ended September 30, 2014 and September 30, 2013 was 26.1% and 25.1%, respectively. The effective tax rate for the three months and nine months ended September 30, 2014 included a discrete tax benefit resulting from an Internal Revenue Service audit settlement of the 2011 tax year, which occurred in the third quarter of 2014. This tax benefit was offset by the impact of the expiration of the U.S. Federal Research and Development Tax Credit (“US R&D Tax Credit”) on December 31, 2013. As a result, there is no tax benefit associated with the US R&D Tax Credit reflected in the marginal effective tax rate for the three months or nine months ended September 30, 2014. The effective tax rate for the three months and nine months ended September 30, 2013 included the marginal effective tax rate benefit of the US R&D Tax Credit for 2013. In addition, the effective tax rate for the nine months ended September 30, 2013 included a one-time discrete $4 million tax benefit associated with the US R&D Tax Credit for 2012, which was retroactively reinstated with the enactment of the American Taxpayer Relief Act of 2012 in January of 2013.

Derivative_Instruments_and_Hed

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2014
Derivative Instruments and Hedging Activities	'
	6. Derivative Instruments and Hedging Activities
	As a portion of the Teradata’s operations is conducted outside the United States and in currencies other than the U.S. dollar, the Company is exposed to potential gains and losses from changes in foreign currency exchange rates. In an attempt to mitigate the impact of currency fluctuations, the Company uses foreign exchange forward contracts to hedge transactional exposures resulting predominantly from foreign currency denominated inter-company receivables and payables. The forward contracts are designated as fair value hedges of specified foreign currency denominated inter-company receivables and payables and generally mature in three months or less. The Company does not hold or issue derivative financial instruments for trading purposes, nor does it hold or issue leveraged derivative instruments. By using derivative financial instruments to hedge exposures to changes in exchange rates, the Company exposes itself to credit risk. The Company manages exposure to counterparty credit risk by entering into derivative financial instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts.
	All derivatives are recognized in the Consolidated Balance Sheet at their fair value. The fair values of foreign exchange contracts are based on market spot and forward exchange rates and represent estimates of possible value that may not be realized in the future. Changes in the fair value of derivative financial instruments, along with the loss or gain on the hedged asset or liability, are recorded in current period earnings. The notional amounts represent agreed-upon amounts on which calculations of dollars to be exchanged are based, and are an indication of the extent of Teradata’s involvement in such instruments. These notional amounts do not represent amounts exchanged by the parties and, therefore, are not a measure of the instruments. Across its portfolio of contracts, Teradata has both long and short positions relative to the U.S. dollar. As a result, Teradata’s net involvement is less than the total contract notional amount of the Company’s foreign exchange forward contracts.
	The contract notional amount of the Company’s foreign exchange forward contracts was $85 million ($5 million on a net basis) at September 30, 2014, and $152 million ($24 million on a net basis) at December 31, 2013. The fair value derivative assets and liabilities recorded in other current assets and accrued liabilities at September 30, 2014 and December 31, 2013, were not material.
	Gains and losses from the Company’s fair value hedges (foreign currency forward contracts and related hedged items) were immaterial for the three and nine months ended September 30, 2014 and September 30, 2013. Gains and losses from foreign exchange forward contracts are fully recognized each period and reported along with the offsetting gain or loss of the related hedged item, either in cost of products or in other income, depending on the nature of the related hedged item.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies	'
	7. 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.
	Guarantees and Product Warranties. Guarantees associated with the Company’s business activities are reviewed for appropriateness and impact to the Company’s financial statements. Periodically, the Company’s customers enter into various leasing arrangements coordinated with a leasing company. In some instances, the Company guarantees the leasing company a minimum value at the end of the lease term on the leased equipment. As of September 30, 2014, 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 nine months ended September 30:
	In millions	2014			2013
	Warranty reserve liability
	Beginning balance at January 1	$	8		$	8
	Provisions for warranties issued		11			10
	Settlements (in cash or in kind)		(13	)		(11	)
	Balance at September 30	$	6		$	7
	The Company also offers extended and/or enhanced coverage to its customers in the form of maintenance contracts. The Company accounts for these contracts by deferring the related maintenance revenue over the extended and/or enhanced coverage period. Costs associated with maintenance support are expensed as incurred. Amounts associated with these maintenance contracts are not included in the table above.
	In addition, the Company provides its customers with certain indemnification rights. In general, the Company agrees to indemnify the customer if a third party asserts patent or other infringement on the part of the customer for its use of the Company’s products. The Company has entered into indemnification agreements with the officers and directors of its subsidiaries. From time to time, the Company also enters into agreements in connection with its acquisition and divesture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is not readily determinable due to the conditional nature of the Company’s potential obligations and the specific facts and circumstances involved with each particular agreement, and as such the Company has not recorded a liability in connection with these indemnification arrangements. Historically, payments made by the Company under these types of agreements have not had a material effect on the Company’s consolidated financial condition, results of operations or cash flows.

Fair_Value_Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2014
Fair Value Measurements	'
	8. 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 September 30, 2014 and December 31, 2013, were not material. Any realized gains or losses would be mitigated by corresponding gains or losses on the underlying exposures.
	The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at September 30, 2014 and December 31, 2013 were as follows:
				Fair Value Measurements at Reporting Date Using
	In millions	Total		Quoted Prices in		Significant		Significant
				Active Markets		Other		Unobservable
				for Identical		Observable		Inputs
				Assets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	Assets
	Money market funds, September 30, 2014	$	395	$	395	$	0	$	0
	Money market funds, December 31, 2013	$	318	$	318	$	0	$	0

Debt

Debt	9 Months Ended
	Sep. 30, 2014
Debt	'
	9. Debt
	Teradata’s five-year revolving credit agreement (the “Credit Facility”), has a borrowing capacity of up to $300 million. The Credit Facility ends on June 15, 2017, at which point any remaining outstanding borrowings would be due for repayment unless extended by agreement of the parties for up to two additional one-year periods. The interest rate charged on borrowings pursuant to the Credit Facility can vary depending on the interest rate option the Company chooses to utilize and the Company’s leverage ratio at the time of the borrowing. In the near term, Teradata would anticipate choosing a floating rate based on the London Interbank Offered Rate (“LIBOR”). The Credit Facility is unsecured and contains certain representations and warranties, conditions, affirmative, negative and financial covenants, and events of default customary for such facilities.
	As of September 30, 2014, the Company had no borrowings outstanding under the Credit Facility, leaving $300 million in additional borrowing capacity available under the Credit Facility. The Company was in compliance with all covenants as of September 30, 2014.
	Teradata’s senior unsecured $300 million five-year term loan is payable in quarterly installments, which commenced on June 30, 2012, with all remaining principal due in April 2016. The outstanding principal amount of the term loan agreement bears interest at a floating rate based upon a negotiated base rate or a Eurodollar rate plus in each case a margin based on the leverage ratio of the Company. As of September 30, 2014, the term loan principal outstanding was $255 million, and carried an interest rate of 1.1875%. The Company was in compliance with all covenants as of September 30, 2014.
	Teradata’s term loan is recognized on the Company’s balance sheet at its unpaid principal balance, and is not subject to fair value measurement. However, given that the loan carries a variable rate, the Company estimates that the unpaid principal balance of the term loan would approximate its fair value. If measured at fair value in the financial statements, the Company’s term loan would be classified as Level 2 in the fair value hierarchy.

Earnings_Per_Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2014
Earnings Per Share	'
	10. Earnings Per Share
	Basic earnings per share is calculated by dividing net income by the weighted average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted average number of shares outstanding includes the dilution from potential shares resulting from stock options, restricted stock awards and other stock awards.
	The components of basic and diluted earnings per share are as follows:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	In millions, except per share amounts	2014		2013		2014		2013
	Net income available for common stockholders	$	94	$	98	$	249	$	265
	Weighted average outstanding shares of common stock		154.5		163.2		156.6		164
	Dilutive effect of employee stock options, restricted stock and other stock awards		2.6		3.2		2.5		3.1
	Common stock and common stock equivalents		157.1		166.4		159.1		167.1
	Earnings per share:
	Basic	$	0.61	$	0.6	$	1.59	$	1.62
	Diluted	$	0.6	$	0.59	$	1.57	$	1.59
	Certain options to purchase shares of common stock were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the period, and therefore would have been anti-dilutive. For the three months ended September 30, 2014 and September 30, 2013 there were 2.2 million and 0.7 million shares of common stock excluded from the computation of diluted earnings per share. For the nine months ended September 30, 2014 and September 30, 2013 there were 2.2 million and 0.5 million shares of common stock excluded from the computation of diluted earnings per share.

Segment_and_Other_Supplemental

Segment and Other Supplemental Information	9 Months Ended
	Sep. 30, 2014
Segment and Other Supplemental Information	'
	11. Segment and Other Supplemental Information
	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:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	In millions	2014		2013		2014			2013
	Segment revenue
	Americas	$	405	$	409	$	1,163		$	1,169
	International		262		257		808			754
	Total revenue		667		666		1,971			1,923
	Segment gross margin
	Americas		231		233		671			668
	International		119		125		383			374
	Total gross margin		350		358		1,054			1,042
	Selling, general and administrative expenses		181		183		557			547
	Research and development expenses		46		43		152			140
	Total income from operations		123		132		345			355
	Other expense, net		0		0		(8	)		(1	)
	Income before income taxes	$	123	$	132	$	337		$	354
	The following table presents revenue by product and services for the Company:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	In millions	2014		2013		2014			2013
	Products (software and hardware)(1)	$	294	$	306	$	867		$	858
	Consulting services		200		200		592			593
	Maintenance services		173		160		512			472
	Total services		373		360		1,104			1,065
	Total revenue	$	667	$	666	$	1,971		$	1,923
	(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.

New_Accounting_Pronouncements_

New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2014
Revenue Recognition	'
	Revenue Recognition. In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The new guidance will supersede the revenue recognition requirements in the current revenue recognition guidance, and most industry-specific guidance. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in this update. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the FASB defines a five step process which includes the following: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.
	The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application not permitted. The standard allows entities to apply the standard retrospectively for all periods presented or alternatively an entity is permitted to recognize the cumulative effect of initially applying the guidance as an opening balance sheet adjustment to retained earnings in the period of initial application. The Company is currently evaluating the impact on its consolidated financial position, results of operations and cash flows, as well as the method of transition that will be used in adopting the standard.
Accounting for Share-based Payments with Performance Targets	'
	Accounting for Share-based Payments with Performance Targets. In June 2014, the FASB issued new guidance that would require that a performance target that affects vesting and that could be achieved after the requisite service period, be treated as a performance condition. A reporting entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The amendments in this update are effective for annual periods, and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company is currently evaluating the impact on its consolidated financial position, results of operations and cash flows.
Recently Adopted Guidance	'
	Recently Adopted Guidance. 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. On January 1, 2014, the Company adopted the new guidance which did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Supplemental_Financial_Informa1

Supplemental Financial Information (Tables)	9 Months Ended
	Sep. 30, 2014
Supplemental Financial Information	'
		As of
	In millions	September 30,		December 31,
		2014		2013
	Inventories
	Finished goods	$	27	$	39
	Service parts		17		17
	Total inventories	$	44	$	56
	Deferred revenue
	Deferred revenue, current	$	380	$	390
	Long-term deferred revenue		22		25
	Total deferred revenue	$	402	$	415

Goodwill_and_Acquired_Intangib1

Goodwill and Acquired Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2014
Goodwill by Operating Segment	'
	The following table identifies the activity relating to goodwill by operating segment:
	In millions	Balance		Additions		Currency			Balance
		December 31,				Translation			September 30,
		2013				Adjustments			2014
	Goodwill
	Americas	$	626	$	28	$	(1	)	$	653
	International		320		0		(15	)		305
	Total goodwill	$	946	$	28	$	(16	)	$	958
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:
				September 30, 2014					December 31, 2013
	In millions	Amortization		Gross		Accumulated			Gross		Accumulated
		Life (in Years)		Carrying		Amortization			Carrying		Amortization
				Amount		and Currency			Amount		and Currency
						Translation					Translation
						Adjustments					Adjustments
	Acquired intangible assets
	Intellectual property/developed technology		1 to 7	$	165	$	(86	)	$	153	$	(70	)
	Customer relationships		3 to 10		77		(32	)		77		(23	)
	Trademarks/trade names		1 to 5		15		(12	)		15		(7	)
	In-process research and development		5		5		(2	)		5		(1	)
	Non-compete agreements		1 to 3		1		(1	)		1		(1	)
	Total		1 to 10	$	263	$	(133	)	$	251	$	(102	)
Aggregate Amortization Expense for Acquired Intangible Assets	'
	The estimated amortization expense for acquired intangible assets for the following periods is as follows:
		Remainder of		For the year ended (estimated)
	In millions	2014		2015		2016			2017		2018			2019
	Amortization expense	$	13	$	39	$	30		$	22	$	10		$	8

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2014
Warranty Reserve Activity	'
	The following table identifies the activity relating to the warranty reserve for the nine months ended September 30:
	In millions	2014			2013
	Warranty reserve liability
	Beginning balance at January 1	$	8		$	8
	Provisions for warranties issued		11			10
	Settlements (in cash or in kind)		(13	)		(11	)
	Balance at September 30	$	6		$	7

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2014
Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements	'
	The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at September 30, 2014 and December 31, 2013 were as follows:
				Fair Value Measurements at Reporting Date Using
	In millions	Total		Quoted Prices in		Significant		Significant
				Active Markets		Other		Unobservable
				for Identical		Observable		Inputs
				Assets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	Assets
	Money market funds, September 30, 2014	$	395	$	395	$	0	$	0
	Money market funds, December 31, 2013	$	318	$	318	$	0	$	0

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2014
Components of Basic and Diluted Earnings Per Share	'
	The components of basic and diluted earnings per share are as follows:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	In millions, except per share amounts	2014		2013		2014		2013
	Net income available for common stockholders	$	94	$	98	$	249	$	265
	Weighted average outstanding shares of common stock		154.5		163.2		156.6		164
	Dilutive effect of employee stock options, restricted stock and other stock awards		2.6		3.2		2.5		3.1
	Common stock and common stock equivalents		157.1		166.4		159.1		167.1
	Earnings per share:
	Basic	$	0.61	$	0.6	$	1.59	$	1.62
	Diluted	$	0.6	$	0.59	$	1.57	$	1.59

Segment_and_Other_Supplemental1

Segment and Other Supplemental Information (Tables)	9 Months Ended
	Sep. 30, 2014
Regional Segment Revenue and Gross Margin	'
	The following table presents regional segment revenue and segment gross margin for the Company:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	In millions	2014		2013		2014			2013
	Segment revenue
	Americas	$	405	$	409	$	1,163		$	1,169
	International		262		257		808			754
	Total revenue		667		666		1,971			1,923
	Segment gross margin
	Americas		231		233		671			668
	International		119		125		383			374
	Total gross margin		350		358		1,054			1,042
	Selling, general and administrative expenses		181		183		557			547
	Research and development expenses		46		43		152			140
	Total income from operations		123		132		345			355
	Other expense, net		0		0		(8	)		(1	)
	Income before income taxes	$	123	$	132	$	337		$	354
Revenue by Product and Services	'
	The following table presents revenue by product and services for the Company:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	In millions	2014		2013		2014			2013
	Products (software and hardware)(1)	$	294	$	306	$	867		$	858
	Consulting services		200		200		592			593
	Maintenance services		173		160		512			472
	Total services		373		360		1,104			1,065
	Total revenue	$	667	$	666	$	1,971		$	1,923
	(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.

Supplemental_Financial_Informa2

Supplemental Financial Information (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Finished goods	$27	$39
Service parts	17	17
Total inventories	44	56
Deferred revenue, current	380	390
Long-term deferred revenue	22	25
Total deferred revenue	$402	$415

Goodwill_by_Operating_Segment_

Goodwill by Operating Segment (Detail) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014
Goodwill	'
Balance December 31, 2013	$946
Additions	28
Currency Translation Adjustments	-16
Balance September 30, 2014	958
Americas	'
Goodwill	'
Balance December 31, 2013	626
Additions	28
Currency Translation Adjustments	-1
Balance September 30, 2014	653
International	'
Goodwill	'
Balance December 31, 2013	320
Additions	0
Currency Translation Adjustments	-15
Balance September 30, 2014	$305

Gross_Carrying_Amount_and_Accu

Gross Carrying Amount and Accumulated Amortization for Teradata Acquired Intangible Assets (Detail) (USD $)	9 Months Ended	12 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets	'	'
Accumulated Amortization and Currency Translation Adjustments	($133)	($102)
Gross Carrying Amount	263	251
Intellectual property/developed technology	'	'
Acquired Finite-Lived Intangible Assets	'	'
Accumulated Amortization and Currency Translation Adjustments	-86	-70
Gross Carrying Amount	165	153
Customer relationships	'	'
Acquired Finite-Lived Intangible Assets	'	'
Accumulated Amortization and Currency Translation Adjustments	-32	-23
Gross Carrying Amount	77	77
Trademarks/trade names	'	'
Acquired Finite-Lived Intangible Assets	'	'
Accumulated Amortization and Currency Translation Adjustments	-12	-7
Gross Carrying Amount	15	15
In-process research and development	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'5 years	'
Accumulated Amortization and Currency Translation Adjustments	-2	-1
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	'	'
Original Amortization Life (in Years)	'1 year	'
Minimum | Intellectual property/developed technology	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'1 year	'
Minimum | Customer relationships	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'3 years	'
Minimum | Trademarks/trade names	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'1 year	'
Minimum | Non-compete agreements	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'1 year	'
Maximum	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'10 years	'
Maximum | Intellectual property/developed technology	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'7 years	'
Maximum | Customer relationships	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'10 years	'
Maximum | Trademarks/trade names	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'5 years	'
Maximum | Non-compete agreements	'	'
Acquired Finite-Lived Intangible Assets	'	'
Original Amortization Life (in Years)	'3 years	'

Recovered_Sheet1

Goodwill And Acquired Intangible Assets - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Acquired Finite-Lived Intangible Assets	'	'	'	'
Amortization of intangible assets	$12	$11	$35	$33

Aggregate_Amortization_Expense

Aggregate Amortization Expense for Acquired Intangible Assets (Detail) (USD $)	Sep. 30, 2014
In Millions, unless otherwise specified
Finite-Lived Intangible Assets [Line Items]	'
Amortization expense - 2014	$13
Amortization expense - 2015	39
Amortization expense - 2016	30
Amortization expense - 2017	22
Amortization expense - 2018	10
Amortization expense - 2019	$8

Income_Taxes_Additional_inform

Income Taxes - Additional information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Taxes	'	'	'	'
Effective income tax rate	23.60%	25.80%	26.10%	25.10%
Tax benefit associated with the U.S. Federal Research and Development Tax Credit	$0	$4	$0	$4

Derivative_Instruments_and_Hed1

Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Derivative	'	'
Notional amount of foreign exchange forward contracts on a net basis	$5	$24
Foreign Exchange Contract	'	'
Derivative	'	'
Notional amount of foreign exchange forward contracts	$85	$152

Commitments_and_Contingencies_1

Commitments and Contingencies - Additional Information (Detail) (USD $)	Sep. 30, 2014
In Millions, unless otherwise specified
Loss Contingencies [Line Items]	'
Maximum future payment obligation of the guaranteed value and associated liabilities	$4

Warranty_Reserve_Activity_Deta

Warranty Reserve Activity (Detail) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Guarantor Obligations [Line Items]	'	'
Beginning balance at January 1	$8	$8
Provisions for warranties issued	11	10
Settlements (in cash or in kind)	-13	-11
Balance at September 30	$6	$7

Assets_and_Liabilities_Measure

Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements (Detail) (Money market funds, USD $)	Sep. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Money market funds	$395	$318
Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Money market funds	395	318
Significant Other Observable Inputs (Level 2)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Money market funds	0	0
Significant Unobservable Inputs (Level 3)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Money market funds	$0	$0

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014
	Extension
Revolving Credit Facility	'
Debt Instrument	'
Revolving credit agreement period (in years)	'5 years
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 year
Credit facility outstanding balance	0
Credit facility borrowing capacity	300
Senior Unsecured Term Loan	'
Debt Instrument	'
Term loan, face amount	300
Term loan, commencement date	30-Jun-12
Term loan, frequency of periodic payment	'Quarterly installments
Term of loan, years	'5 years
Term loan, due date	5-Apr-16
Term loan payable	$255
Interest rate on term loan	1.19%

Components_of_Basic_and_Dilute

Components of Basic and Diluted Earnings Per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Millions, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]	'	'	'	'
Net income available for common stockholders	$94	$98	$249	$265
Weighted average outstanding shares of common stock	154.5	163.2	156.6	164
Dilutive effect of employee stock options, restricted stock and other stock awards	2.6	3.2	2.5	3.1
Common stock and common stock equivalents	157.1	166.4	159.1	167.1
Basic	$0.61	$0.60	$1.59	$1.62
Diluted	$0.60	$0.59	$1.57	$1.59

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'	'	'
Antidilutive options to purchase were excluded from computation of diluted earnings per share	2.2	0.7	2.2	0.5

Segment_and_Other_Supplemental2

Segment and Other Supplemental Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014
	Segment
Segment Reporting Information	'
Number of operating segments	2

Regional_Segment_Revenue_and_G

Regional Segment Revenue and Gross Margin for Company (Detail) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information	'	'	'	'
Revenue	$667	$666	$1,971	$1,923
Gross margin	350	358	1,054	1,042
Selling, general and administrative expenses	181	183	557	547
Research and development expenses	46	43	152	140
Income from operations	123	132	345	355
Other expense, net	0	0	-8	-1
Income before income taxes	123	132	337	354
Americas	'	'	'	'
Segment Reporting Information	'	'	'	'
Revenue	405	409	1,163	1,169
Gross margin	231	233	671	668
International	'	'	'	'
Segment Reporting Information	'	'	'	'
Revenue	262	257	808	754
Gross margin	$119	$125	$383	$374

Revenue_by_Product_and_Service

Revenue by Product and Services (Detail) (USD $)	3 Months Ended				9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Segment Reporting Information	'		'		'		'
Products (software and hardware)	$294	[1]	$306	[1]	$867	[1]	$858	[1]
Consulting services	200		200		592		593
Maintenance services	173		160		512		472
Total services	373		360		1,104		1,065
Total revenue	$667		$666		$1,971		$1,923
[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.