Segment and Other Supplemental Information

6 Months Ended

Jun. 30, 2019

Segment and Other Supplemental Information

Effective January 1, 2019, Teradata implemented an organizational change in which Teradata now manages its business under three geographic regions, which are also the Company’s operating segments: (1) Americas region (North America and Latin America); (2) EMEA region (Europe, Middle East and Africa) and (3) APAC region (Asia Pacific and Japan). For purposes of discussing results by segment, management excludes the impact of certain items, consistent with the manner by which management evaluates the performance of each segment. This format is useful to investors because it allows analysis and comparability of operating trends. It also includes the same information that is used by Teradata management to make decisions regarding the segments and to assess financial performance. The chief operating decision maker, who is our President and Chief Executive Officer, evaluates the performance of the segments based on revenue and multiple profit measures, including segment gross profit. For management reporting purposes assets are not allocated to the segments. Prior periods have been restated to conform to the current year presentation.

The following table presents segment revenue and segment gross profit for the Company:



	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2019		2018		2019		2018
Segment revenue
Americas	$	269	$	287	$	538	$	551
EMEA	122		127		235		276
APAC	87		130		173		223
Total revenue	478		544		946		1,050
Segment gross profit
Americas	158		154		315		301
EMEA	57		54		107		117
APAC	37		58		71		93
Total segment gross profit	252		266		493		511
Stock-based compensation costs	4		4		7		8
Acquisition, integration, reorganization and transformation-related costs	2		—		5		3
Amortization of capitalized software costs	10		12		21		27
Total gross profit	236		250		460		473
Selling, general and administrative expenses	145		163		296		315
Research and development expenses	81		77		159		152
Income from operations	$	10	$	10	$	5	$	6