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Employee Stock-based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Expense
The Company recorded stock-based compensation expense for the years ended December 31 as follows: 
In millions
2017
 
2016
 
2015
Stock options
$
9

 
$
9

 
$
12

Restricted shares
56

 
51

 
41

Employee share repurchase program
3

 
2

 
3

Total stock-based compensation before income taxes
68

 
62

 
56

Tax benefit
(21
)
 
(13
)
 
(17
)
Total stock-based compensation, net of tax
$
47

 
$
49

 
$
39
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:
 
2017
 
2016
 
2015
Dividend yield
—
%
 
—
%
 
—
%
Risk-free interest rate
1.99
%
 
2.08
%
 
1.76
%
Expected volatility
35.0
%
 
35.2
%
 
34.4
%
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, 2017: 
Shares in thousands
Shares
Under
Option
 
Weighted-
Average
Exercise
Price per
Share
 
Weighted-
Average
Remaining
Contractual
Term (in
years)
 
Aggregate
Intrinsic
Value (in
millions)
Outstanding at January 1, 2017
6,509

 
$
36.22

 
5.3
 
$
8

Granted
10

 
$
29.04

 
 
 
 
Exercised
(746
)
 
$
25.28

 
 
 
 
Canceled
(153
)
 
$
46.56

 
 
 
 
Forfeited
(247
)
 
$
32.97

 
 
 
 
Outstanding at December 31, 2017
5,373

 
$
37.63

 
4.5
 
$
30

Fully vested and expected to vest at December 31, 2017
5,373

 
$
37.63

 
4.5
 
$
30

Exercisable at December 31, 2017
4,220

 
$
39.60

 
3.4
 
$
21
Total Intrinsic Value of Options Exercised and The Cash Received
The following table summarizes the total intrinsic value of options exercised and the cash received by the Company from option exercises under all share-based payment arrangements at December 31:
In millions
2017
 
2016
 
2015
Intrinsic value of options exercised
$
6

 
$
13

 
$
8

Cash received from option exercises
$
19

 
$
18

 
$
9

Tax benefit realized from option exercises
$
2

 
$
5

 
$
3
Restricted Stock and Restricted Stock Unit Activity
The following table reports restricted shares and restricted share unit activity during the year ended December 31, 2017:
Shares in thousands
Number of
Shares
 
Weighted-
Average 
Grant
Date Fair
 Value
per Share
Unvested shares at January 1, 2017
4,042

 
$
31.57

Granted
2,044

 
$
34.88

Vested
(1,487
)
 
$
33.55

Forfeited/canceled
(373
)
 
$
29.05

Unvested shares at December 31, 2017
4,226

 
$
32.76
Weighted-Average Fair Value and Total Fair Value of Shares Vested
The following table summarizes the weighted-average fair value of restricted share units granted for Teradata equity awards and the total fair value of shares vested.
 
2017
 
2016
 
2015
Weighted-average fair value of restricted share units granted
$
34.88

 
$
26.61

 
$
32.82

Total fair value of shares vested (in millions)
$
50

 
$
61

 
$
45
The Composition of Teradata Restricted Stock Grants
The following table represents the composition of Teradata restricted share unit grants in 2017: 
Shares in thousands
Number of
Shares
 
Weighted-
Average 
Grant
Date Fair 
Value
Service-based shares
1,736

 
$
36.33

Performance-based shares
308

 
$
26.68

Total stock grants
2,044

 
$
34.88
Employee Purchases and Aggregate Cost
Employee purchases and aggregate cost were as follows at December 31:
In millions
2017
 
2016
 
2015
Employee share purchases
0.6

 
0.6

 
0.5

Aggregate cost
$
15

 
$
13

 
$
17