Segment and Other Supplemental Information

3 Months Ended

Mar. 31, 2013

Segment and Other Supplemental Information

11. Segment and Other Supplemental Information

Effective January 1, 2013, Teradata combined the management of the Europe, Middle East and Africa, and the Asia Pacific and Japan regions into a new International region. This larger International region will have greater critical mass and leverage of resources for deployment of the Company’s integrated marketing management, big data analytics, and data warehouse solutions, as well as possess more knowledge depth for our numerous consulting and support services offers.

As a result, Teradata now manages its business in two geographic regions, which are also the Company’s operating segments: (1) the North America and Latin America (“Americas”) region; and (2) the International region. Management evaluates the performance of its segments based on revenue and segment margin, and does not include segment assets for management reporting purposes. Corporate-related costs are fully allocated to the segments.

The following table presents regional segment revenue and gross margin for the Company. For comparative purposes, prior-year amounts have been reclassified to conform to the current-year presentation:

	Three Months Ended
	March 31,
In millions	2013			2012
Revenue
Americas	$	355		$	388
International		232			225
Total revenue		587			613
Gross margin
Americas		195			232
International		110			106
Total gross margin		305			338
Selling, general and administrative expenses		179			165
Research and development expenses		50			46
Total income from operations		76			127
Other expense, net		(1	)		(1	)
Income before income taxes	$	75		$	126

The following table presents revenue by product and services for the Company:

	Three Months Ended
	March 31,
In millions	2013		2012
Products (software and hardware)(1)	$	249	$	308
Consulting services		186		165
Maintenance services		152		140
Total services		338		305
Total revenue	$	587	$	613

⁽¹⁾  Our data warehousing software and hardware products are often sold and delivered together in the form of a “node” of capacity as an integrated technology solution. Accordingly, it is impracticable to provide the breakdown of revenue from various types of software and hardware products.