Segment and Other Supplemental Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment and Other Supplemental Information

Segment and Other Supplemental InformationTeradata 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) APJ 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 the Company's 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.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2023		2022		2023		2022
Segment revenue
Americas	$	264	$	242	$	824	$	781
EMEA	113		105		348		337
APJ	61		70		204		225
Total revenue	438		417		1,376		1,343
Segment gross profit
Americas	164		151		521		493
EMEA	67		66		214		207
APJ	33		44		115		136
Total segment gross profit	264		261		850		836
Stock-based compensation costs	4		3		12		12
Acquisition, integration, reorganization and transformation-related costs	1		(1)		1		6
Total gross profit	259		259		837		818
Selling, general and administrative expenses	156		155		476		475
Research and development expenses	76		79		222		236
Income from operations	$	27	$	25	$	139	$	107