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As of | |||||||
In millions | June 30, 2016 | December 31, 2015 | |||||
Inventories | |||||||
Finished goods | $ | 21 | $ | 32 | |||
Service parts | 16 | 17 | |||||
Total inventories | $ | 37 | $ | 49 | |||
Deferred revenue | |||||||
Deferred revenue, current | $ | 430 | $ | 367 | |||
Long-term deferred revenue | 16 | 15 | |||||
Total deferred revenue | $ | 446 | $ | 382 |
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In millions | Balance, December 31, 2015 | Adjustments | Currency Translation Adjustments | Balance, June 30, 2016 | |||||||||||
Goodwill | |||||||||||||||
Americas Data and Analytics | $ | 251 | $ | — | $ | — | $ | 251 | |||||||
International Data and Analytics | 129 | — | 4 | 133 | |||||||||||
Total goodwill | $ | 380 | $ | — | $ | 4 | $ | 384 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||
In millions | Amortization Life (in Years) | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | |||||||||||||
Acquired intangible assets | ||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 71 | $ | (58 | ) | $ | 83 | $ | (63 | ) | |||||||
Customer relationships | 3 to 10 | — | — | 3 | (3 | ) | ||||||||||||
Trademarks/trade names | 5 | 1 | (1 | ) | 1 | (1 | ) | |||||||||||
In-process research and development | 5 | 5 | (3 | ) | 5 | (3 | ) | |||||||||||
Total acquired intangible assets | $ | 77 | $ | (62 | ) | $ | 92 | $ | (70 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Amortization expense | $ | 2 | $ | 11 | $ | 7 | $ | 22 |
Actual | For the years ended (estimated) | |||||||||||||||||||
In millions | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Amortization expense | $ | 40 | $ | 10 | $ | 7 | $ | 3 | $ | 2 |
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | ||||||||
Effective tax rate | 24.7 | % | (6.4 | )% | 55.0 | % | (11.0 | )% |
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As of | |||||||
In millions | June 30, 2016 | December 31, 2015 | |||||
Contract notional amount of foreign exchange forward contracts | $ | 100 | $ | 138 | |||
Net contract notional amount of foreign exchange forward contracts | $ | 7 | $ | 25 |
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In millions | 2016 | 2015 | |||||
Warranty reserve liability | |||||||
Beginning balance at January 1 | $ | 6 | $ | 7 | |||
Provisions for warranties issued | 4 | 4 | |||||
Settlements (in cash or in kind) | (5 | ) | (5 | ) | |||
Balance at June 30 | $ | 5 | $ | 6 |
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Fair Value Measurements at Reporting Date Using | |||||||||||||||
In millions | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market funds, June 30, 2016 | $ | 402 | $ | 402 | $ | — | $ | — | |||||||
Money market funds, December 31, 2015 | $ | 351 | $ | 351 | $ | — | $ | — |
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In millions | Amounts Due | ||
2016 | $ | 15 | |
2017 | 30 | ||
2018 | 60 | ||
2019 | 68 | ||
2020 | 412 | ||
Total | $ | 585 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Segment revenue | |||||||||||||||
Americas Data and Analytics | $ | 325 | $ | 348 | $ | 620 | $ | 684 | |||||||
International Data and Analytics | 239 | 237 | 455 | 445 | |||||||||||
Total Data and Analytics | 564 | 585 | 1,075 | 1,129 | |||||||||||
Marketing Applications | 35 | 38 | 69 | 76 | |||||||||||
Total revenue | 599 | 623 | 1,144 | 1,205 | |||||||||||
Segment gross margin | |||||||||||||||
Americas Data and Analytics | 183 | 204 | 347 | 383 | |||||||||||
International Data and Analytics | 116 | 118 | 213 | 211 | |||||||||||
Total Data and Analytics | 299 | 322 | 560 | 594 | |||||||||||
Marketing Applications | 16 | 16 | 33 | 31 | |||||||||||
Total segment gross margin | 315 | 338 | 593 | 625 | |||||||||||
Stock-based compensation costs | (3 | ) | (3 | ) | (7 | ) | (7 | ) | |||||||
Amortization of acquisition-related intangible assets costs | — | (6 | ) | (2 | ) | (11 | ) | ||||||||
Acquisition, integration and reorganization-related costs | (2 | ) | (2 | ) | (5 | ) | (3 | ) | |||||||
Selling, general and administrative expenses | 172 | 190 | 346 | 374 | |||||||||||
Research and development expenses | 51 | 59 | 108 | 122 | |||||||||||
Impairment of goodwill, acquired intangibles and other assets | — | 340 | 80 | 340 | |||||||||||
Income (loss) from operations | $ | 87 | $ | (262 | ) | $ | 45 | $ | (232 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Products (software and hardware)(1) | $ | 228 | $ | 256 | $ | 422 | $ | 497 | |||||||
Consulting services | 192 | 194 | 371 | 366 | |||||||||||
Maintenance services | 179 | 173 | 351 | 342 | |||||||||||
Total services | 371 | 367 | 722 | 708 | |||||||||||
Total revenue | $ | 599 | $ | 623 | $ | 1,144 | $ | 1,205 |
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• | $10 million for employee severance and other employee-related costs, |
• | $80 million charge for asset write-downs, and |
• | $19 million for professional services, legal and other associated costs. |
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As of | As of | |||||
In millions | June 30, 2016 | December 31, 2015 | ||||
Current assets held for sale | ||||||
Accounts receivable, net | $ | 35 | $ | 41 | ||
Other current assets | 2 | 3 | ||||
Total current assets held for sale | 37 | 44 | ||||
Property and equipment, net | 11 | 12 | ||||
Goodwill | 57 | 113 | ||||
Acquired intangibles, net | 25 | 44 | ||||
Other assets | — | 1 | ||||
Total assets held for sale | $ | 130 | $ | 214 | ||
Current liabilities held for sale | ||||||
Accounts payable | 4 | 10 | ||||
Payroll and benefits liabilities | 4 | 12 | ||||
Deferred Revenue | 28 | 30 | ||||
Other current liabilities | 2 | 5 | ||||
Total current liabilities held for sale | 38 | 57 | ||||
Other liabilities | 5 | 1 | ||||
Total liabilities held for sale | $ | 43 | $ | 58 |
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As of | |||||||
In millions | June 30, 2016 | December 31, 2015 | |||||
Inventories | |||||||
Finished goods | $ | 21 | $ | 32 | |||
Service parts | 16 | 17 | |||||
Total inventories | $ | 37 | $ | 49 | |||
Deferred revenue | |||||||
Deferred revenue, current | $ | 430 | $ | 367 | |||
Long-term deferred revenue | 16 | 15 | |||||
Total deferred revenue | $ | 446 | $ | 382 |
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In millions | Balance, December 31, 2015 | Adjustments | Currency Translation Adjustments | Balance, June 30, 2016 | |||||||||||
Goodwill | |||||||||||||||
Americas Data and Analytics | $ | 251 | $ | — | $ | — | $ | 251 | |||||||
International Data and Analytics | 129 | — | 4 | 133 | |||||||||||
Total goodwill | $ | 380 | $ | — | $ | 4 | $ | 384 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||
In millions | Amortization Life (in Years) | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | |||||||||||||
Acquired intangible assets | ||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 71 | $ | (58 | ) | $ | 83 | $ | (63 | ) | |||||||
Customer relationships | 3 to 10 | — | — | 3 | (3 | ) | ||||||||||||
Trademarks/trade names | 5 | 1 | (1 | ) | 1 | (1 | ) | |||||||||||
In-process research and development | 5 | 5 | (3 | ) | 5 | (3 | ) | |||||||||||
Total acquired intangible assets | $ | 77 | $ | (62 | ) | $ | 92 | $ | (70 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Amortization expense | $ | 2 | $ | 11 | $ | 7 | $ | 22 |
Actual | For the years ended (estimated) | |||||||||||||||||||
In millions | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Amortization expense | $ | 40 | $ | 10 | $ | 7 | $ | 3 | $ | 2 |
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | ||||||||
Effective tax rate | 24.7 | % | (6.4 | )% | 55.0 | % | (11.0 | )% |
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As of | |||||||
In millions | June 30, 2016 | December 31, 2015 | |||||
Contract notional amount of foreign exchange forward contracts | $ | 100 | $ | 138 | |||
Net contract notional amount of foreign exchange forward contracts | $ | 7 | $ | 25 |
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In millions | 2016 | 2015 | |||||
Warranty reserve liability | |||||||
Beginning balance at January 1 | $ | 6 | $ | 7 | |||
Provisions for warranties issued | 4 | 4 | |||||
Settlements (in cash or in kind) | (5 | ) | (5 | ) | |||
Balance at June 30 | $ | 5 | $ | 6 |
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Fair Value Measurements at Reporting Date Using | |||||||||||||||
In millions | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market funds, June 30, 2016 | $ | 402 | $ | 402 | $ | — | $ | — | |||||||
Money market funds, December 31, 2015 | $ | 351 | $ | 351 | $ | — | $ | — |
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In millions | Amounts Due | ||
2016 | $ | 15 | |
2017 | 30 | ||
2018 | 60 | ||
2019 | 68 | ||
2020 | 412 | ||
Total | $ | 585 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Segment revenue | |||||||||||||||
Americas Data and Analytics | $ | 325 | $ | 348 | $ | 620 | $ | 684 | |||||||
International Data and Analytics | 239 | 237 | 455 | 445 | |||||||||||
Total Data and Analytics | 564 | 585 | 1,075 | 1,129 | |||||||||||
Marketing Applications | 35 | 38 | 69 | 76 | |||||||||||
Total revenue | 599 | 623 | 1,144 | 1,205 | |||||||||||
Segment gross margin | |||||||||||||||
Americas Data and Analytics | 183 | 204 | 347 | 383 | |||||||||||
International Data and Analytics | 116 | 118 | 213 | 211 | |||||||||||
Total Data and Analytics | 299 | 322 | 560 | 594 | |||||||||||
Marketing Applications | 16 | 16 | 33 | 31 | |||||||||||
Total segment gross margin | 315 | 338 | 593 | 625 | |||||||||||
Stock-based compensation costs | (3 | ) | (3 | ) | (7 | ) | (7 | ) | |||||||
Amortization of acquisition-related intangible assets costs | — | (6 | ) | (2 | ) | (11 | ) | ||||||||
Acquisition, integration and reorganization-related costs | (2 | ) | (2 | ) | (5 | ) | (3 | ) | |||||||
Selling, general and administrative expenses | 172 | 190 | 346 | 374 | |||||||||||
Research and development expenses | 51 | 59 | 108 | 122 | |||||||||||
Impairment of goodwill, acquired intangibles and other assets | — | 340 | 80 | 340 | |||||||||||
Income (loss) from operations | $ | 87 | $ | (262 | ) | $ | 45 | $ | (232 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Products (software and hardware)(1) | $ | 228 | $ | 256 | $ | 422 | $ | 497 | |||||||
Consulting services | 192 | 194 | 371 | 366 | |||||||||||
Maintenance services | 179 | 173 | 351 | 342 | |||||||||||
Total services | 371 | 367 | 722 | 708 | |||||||||||
Total revenue | $ | 599 | $ | 623 | $ | 1,144 | $ | 1,205 |
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As of | As of | |||||
In millions | June 30, 2016 | December 31, 2015 | ||||
Current assets held for sale | ||||||
Accounts receivable, net | $ | 35 | $ | 41 | ||
Other current assets | 2 | 3 | ||||
Total current assets held for sale | 37 | 44 | ||||
Property and equipment, net | 11 | 12 | ||||
Goodwill | 57 | 113 | ||||
Acquired intangibles, net | 25 | 44 | ||||
Other assets | — | 1 | ||||
Total assets held for sale | $ | 130 | $ | 214 | ||
Current liabilities held for sale | ||||||
Accounts payable | 4 | 10 | ||||
Payroll and benefits liabilities | 4 | 12 | ||||
Deferred Revenue | 28 | 30 | ||||
Other current liabilities | 2 | 5 | ||||
Total current liabilities held for sale | 38 | 57 | ||||
Other liabilities | 5 | 1 | ||||
Total liabilities held for sale | $ | 43 | $ | 58 |
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