Revenue from Contracts with Customers

Disaggregation of Revenue from Contracts with Customers

The following table presents a disaggregation of revenue for the years ended December 31:



In millions	2019		2018		2017*
Americas
Recurring	$	873	$	801	$	739
Perpetual software licenses and hardware	38		127		234
Consulting services	146		198		222
Total Americas	1,057		1,126		1,195
EMEA
Recurring	305		282		248
Perpetual software licenses and hardware	43		112		133
Consulting services	144		193		186
Total EMEA	492		587		567
APAC
Recurring	185		171		158
Perpetual software licenses and hardware	25		101		62
Consulting services	140		179		174
Total APAC	350		451		394
Total Revenue	$	1,899	$	2,164	$	2,156

*As discussed in Note 1, periods prior to 2018 have not been adjusted under the modified retrospective adoption method of Topic 606

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about receivables, contract assets and deferred revenue from contracts with customers:



In millions	December 31, 2019		December 31, 2018
Accounts receivable, net	$	398	$	588
Contract assets	$	8	$	14
Current deferred revenue	$	472	$	490
Long-term deferred revenue	$	61	$	105

Revenue recognized during the year ended December 31, 2019 from amounts included in deferred revenue at the beginning of the period was approximately $470 million.

Transaction Price Allocated to Unsatisfied Obligations

The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at December 31, 2019:



In millions	Total at December 31, 2019		Year 1		Year 2 and Thereafter
Remaining unsatisfied obligations	$	2,732	$	1,377	$	1,355

The amounts above represent the price of firm orders for which work has not been performed or goods have not been delivered and exclude unexercised contract options outside the stated contractual term that do not represent material rights to the customer. Although the Company believes that the contract value in the above table is firm, approximately $1,923 million of the amount includes customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies us. The Company expects to recognize revenue of approximately $312 million in the next year from contracts that are non-cancelable. Customers typically do not cancel before the end of the contractual term and historically the Company has not seen significant churn in its customer base. The Company believes the inclusion of this information is important to understanding the obligations that the Company is contractually required to perform and provides useful information regarding remaining obligations related to these executed contracts.

Contract Costs

The Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in Capitalized contract costs on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs:



In millions	December 31, 2018		Capitalized		Amortization			December 31, 2019
Capitalized contract costs	$	54	$	57	$	(20	)	$	91
In millions	January 1, 2018		Capitalized		Amortization			December 31, 2018
Capitalized contract costs	$	17	$	44	$	(7	)	$	54

Contract Costs

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Contract Costs

Revenue from Contracts with Customers

Disaggregation of Revenue from Contracts with Customers

The following table presents a disaggregation of revenue for the years ended December 31:



In millions	2019		2018		2017*
Americas
Recurring	$	873	$	801	$	739
Perpetual software licenses and hardware	38		127		234
Consulting services	146		198		222
Total Americas	1,057		1,126		1,195
EMEA
Recurring	305		282		248
Perpetual software licenses and hardware	43		112		133
Consulting services	144		193		186
Total EMEA	492		587		567
APAC
Recurring	185		171		158
Perpetual software licenses and hardware	25		101		62
Consulting services	140		179		174
Total APAC	350		451		394
Total Revenue	$	1,899	$	2,164	$	2,156

*As discussed in Note 1, periods prior to 2018 have not been adjusted under the modified retrospective adoption method of Topic 606

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about receivables, contract assets and deferred revenue from contracts with customers:



In millions	December 31, 2019		December 31, 2018
Accounts receivable, net	$	398	$	588
Contract assets	$	8	$	14
Current deferred revenue	$	472	$	490
Long-term deferred revenue	$	61	$	105

Revenue recognized during the year ended December 31, 2019 from amounts included in deferred revenue at the beginning of the period was approximately $470 million.

Transaction Price Allocated to Unsatisfied Obligations

The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at December 31, 2019:



In millions	Total at December 31, 2019		Year 1		Year 2 and Thereafter
Remaining unsatisfied obligations	$	2,732	$	1,377	$	1,355

The amounts above represent the price of firm orders for which work has not been performed or goods have not been delivered and exclude unexercised contract options outside the stated contractual term that do not represent material rights to the customer. Although the Company believes that the contract value in the above table is firm, approximately $1,923 million of the amount includes customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies us. The Company expects to recognize revenue of approximately $312 million in the next year from contracts that are non-cancelable. Customers typically do not cancel before the end of the contractual term and historically the Company has not seen significant churn in its customer base. The Company believes the inclusion of this information is important to understanding the obligations that the Company is contractually required to perform and provides useful information regarding remaining obligations related to these executed contracts.

Contract Costs

The Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in Capitalized contract costs on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs:



In millions	December 31, 2018		Capitalized		Amortization			December 31, 2019
Capitalized contract costs	$	54	$	57	$	(20	)	$	91
In millions	January 1, 2018		Capitalized		Amortization			December 31, 2018
Capitalized contract costs	$	17	$	44	$	(7	)	$	54

Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill

Effective January 1, 2019, the Company implemented an organizational change to its operating segments and will report future results under the separate segments: Americas, EMEA and APAC. The following table identifies the activity relating to goodwill by operating segment.



In millions	Balance at December 31, 2018		Reassignment of Goodwill			Currency Translation Adjustments		Balance at December 31, 2019
Goodwill
Americas	$	253	$	—		$	—	$	253
International	142		(142		)	—		—
EMEA	—		88			—		88
APAC	—		54			1		55
Total goodwill	$	395	$	—		$	1	$	396

In the fourth quarter of 2019, the Company performed its annual impairment test, utilizing the quantitative method, of goodwill and determined that no impairment to the carrying value of goodwill was necessary as each reporting units fair value was above it carrying value. The Company reviewed three reporting units in its 2019 goodwill impairment assessment, as each of the geographic operating segments were considered separate reporting units for purposes of testing.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

For the years ended December 31, (loss) income before income taxes consisted of the following:



In millions	2019			2018			2017
(Loss) income before income taxes
United States	$	(85	)	$	(79	)	$	(26	)
Foreign	72			106			84
Total (loss) income before income taxes	$	(13	)	$	27		$	58

For the years ended December 31, income tax expense (benefit) consisted of the following:



In millions	2019			2018			2017
Income tax expense (benefit)
Current
Federal	$	(3	)	$	(10	)	$	132
State and local	—			6			2
Foreign	13			19			25
Deferred
Federal	(10		)	(20		)	(22		)
State and local	(1		)	(4		)	(4		)
Foreign	8			6			(8		)
Total income tax expense (benefit)	$	7		$	(3	)	$	125
Effective income tax rate	(53.8		%)	(11.1		%)	215.5		%

The following table presents the principal components of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:



	2019		2018		2017
Income tax expense at the U.S. federal tax rate	21.0	%	21.0	%	35.0	%
Foreign income tax differential	(49.2	)%	2.1	%	(22.6	)%
U.S. tax on foreign earnings	(8.4	)%	2.0	%	4.3	%
State and local income taxes	58.2	%	(25.0	)%	(11.0	)%
U.S. permanent book/tax differences	(17.0	)%	(2.7	)%	(1.5	)%
U.S. research and development tax credits	68.5	%	(29.5	)%	(11.2	)%
Change in valuation allowance	(49.1	)%	27.7	%	10.0	%
U.S. manufacturing deduction permanent difference	—	%	—	%	(8.0	)%
Tax impact of equity compensation	(49.3	)%	(1.4	)%	0.7	%
Deferred tax impact from U.S. rate change from Tax Reform	—	%	—	%	(27.0	)%
Tax impact of U.S. Tax Reform/Transition Tax	—	%	(23.9	)%	250.0	%
Tax Impact of uncertain tax positions	(24.6	)%	20.2	%	(3.6	)%
Other, net	(3.9	)%	(1.6	)%	0.4	%
Effective income tax rate	(53.8	)%	(11.1	)%	215.5	%

The 2019 effective tax rate was impacted by $3 million tax expense related to equity compensation and $3 million of incremental global intangible low-taxed income ("GILTI") tax, which resulted in full-year income tax expense in 2019 of $7 million, on a pre-tax net loss of $13 million, causing a negative tax rate of 53.8%.

The 2018 and 2017 effective tax rates were impacted by the Tax Cuts and Jobs Act of 2017 ("Tax Act"), which was signed into law on December 22, 2017, making significant changes to the United States Internal Revenue Code. Changes include, but are not limited to:


•	A corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017,


•	The transition of United States international taxation from a worldwide tax system to a modified territorial tax system, and


•	A one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.

On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act.

In accordance with SAB 118, the Company completed its analysis of the impact of the Tax Act during the fourth quarter of 2018 in accordance with its understanding of the Tax Act and guidance available as of the date of this filing. For the year ended December 31, 2018, the Company recorded a $6 million tax benefit as an adjustment to the 2017 provisional estimate in accordance with SAB 118 because of additional regulatory guidance and changes in interpretations and assumptions the Company initially made as a result of the Tax Act. Effective in 2018, the Tax Act subjects United States shareholders to a tax on GILTI earned by certain foreign subsidiaries. The Company has elected to provide for the tax expense related to GILTI in the year the tax is incurred. The Company recorded tax expense of $3 million in 2019 and $1 million in 2018 for GILTI.

In the fourth quarter of 2017, the Company recorded $126 million as additional income tax expense as its provisional estimate of the impact of the Tax Act. The amount included $145 million of tax expense for the one-time transition tax on cumulative foreign earnings of $1.3 billion, which the Company will pay over an 8-year period ending in 2025. In addition, a tax benefit of $19 million was recorded, a majority of which related to the re-measurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future.

Subsequent to the year ended December 31, 2019 and effective January 1, 2020, the Company completed an intra-entity asset transfer of certain of its intellectual property to one of its Irish subsidiaries. The intra-entity asset transfer will result in a material deferred tax asset recorded during the first quarter of 2020.

Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:



In millions	2019			2018
Deferred income tax assets
Employee pensions and other liabilities	$	63		$	49
Other balance sheet reserves and allowances	18			18
Operating lease liabilities	14			—
Tax loss and credit carryforwards	80			63
Deferred revenue	12			20
Total deferred income tax assets	187			150
Valuation allowance	(45		)	(39		)
Net deferred income tax assets	142			111
Deferred income tax liabilities
Intangibles and capitalized software	8			17
Right of use assets - operating lease	13			—
Property and equipment	12			11
Other	28			19
Total deferred income tax liabilities	61			47
Total net deferred income tax assets	$	81		$	64

As of December 31, 2019, Teradata has net operating loss ("NOL") and tax credit carryforwards totaling $80 million (tax effected and before any valuation allowance offset and application of recognition criteria for uncertain tax positions). Of the total tax carryforwards, $11 million are NOL's in the United States and certain foreign jurisdictions, a small portion of which will begin to expire in 2021; $3 million are United States foreign tax credit carryforwards which expire in 2028, which have a full valuation allowance offset; $10 million are federal R&D credits, which will begin to expire in 2038; and $56 million are California R&D tax credits that have an indefinite carryforward period, which have a $41 million valuation allowance offset and $15 million of FIN 48 reserve recorded.

Prior to the enactment of the Tax Act, the Company had not provided for taxes on the undistributed earnings of its foreign subsidiaries as the Company either reinvested or intended to reinvest those earnings outside of the United States. Because of the Tax Act, the Company has changed its indefinite reinvestment assertion related to foreign earnings that have been taxed in the United States and now considers a majority of these earnings no longer indefinitely reinvested. Because of United States tax reform legislation, distributions of profits from non-U.S. subsidiaries are not expected to cause a significant United States tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. The Company has recorded $1 million of deferred foreign withholding tax expense with respect to certain earnings which are not considered permanently reinvested as they would be taxable upon remittance. Deferred taxes have not been provided on earnings considered indefinitely reinvested.

The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company reflects any interest and penalties recorded in connection with its uncertain tax positions as a component of income tax expense.

As of December 31, 2019, the Company’s uncertain tax positions totaled approximately $37 million, of which $19 million is reflected in the other liabilities section of the Company’s balance sheet as a non-current liability. The remaining balance of $18 million of uncertain tax positions relates to certain tax attributes both generated by the Company and acquired in various acquisitions, which are netted against the underlying deferred tax assets recorded on the balance sheet. The entire balance of $37 million in uncertain tax positions would cause a decrease in the effective income tax rate upon recognition. Teradata has recorded $2 million of interest accruals related to its uncertain tax liabilities as of December 31, 2019.

Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:



In millions	2019			2018
Balance at January 1	$	34		$	28
Gross increases for prior period tax positions	4			3
Gross increases for current period tax positions	5			8
Decreases due to the lapse of applicable statute of limitations	(6		)	(1		)
Decreases relating to settlements with taxing authorities	—			(4		)
Balance at December 31	$	37		$	34

The Company recorded $4 million of discrete tax expense in the second quarter of 2019 related to the reversal of the United States Tax Court’s decision in the Altera Corp. v. Commissioner case by the Ninth Circuit Court of Appeals on June 7, 2019. The Altera case focused on whether current U.S. Treasury Regulations requiring the inclusion of stock-based compensation expense in a taxpayer's cost-sharing calculations are valid.

The Company and its subsidiaries file income tax returns in the United States and various state jurisdictions, as well as numerous foreign jurisdictions. As of December 31, 2019, the Company has ongoing tax audits in a limited number of state and foreign jurisdictions. However, no material adjustments have been proposed or made in any of these examinations to date, which would result in any incremental income tax expense in future periods to the Company. The Company's tax returns for years 2016-2019 are still open for assessment by tax authorities in its major jurisdictions.

Employee Stock-based Compensation Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Employee Stock-based Compensation Plans

The Company recorded stock-based compensation expense for the years ended December 31 as follows:



In millions	2019			2018			2017
Stock options	$	3		$	6		$	9
Restricted shares	77			56			56
Employee share repurchase program	3			3			3
Total stock-based compensation before income taxes	83			65			68
Tax benefit	(10		)	(11		)	(21		)
Total stock-based compensation, net of tax	$	73		$	54		$	47

The Teradata Corporation 2007 Stock Incentive Plan (the "2007 SIP"), as amended, and the Teradata 2012 Stock Incentive Plan (the "2012 SIP") provide for the grant of several different forms of stock-based compensation. The 2012 SIP was adopted and approved by stockholders in April 2012 and no further awards may be made under the 2007 SIP after that time. A total of approximately 17.5 million shares were authorized to be issued under the 2012 SIP. New shares of the Company’s common stock are issued as a result of the vesting of restricted share units and stock option exercises and at the time of grant for restricted shares, for awards under both plans.

As of December 31, 2019, the Company’s primary types of stock-based compensation were stock options, restricted shares, restricted share units and the employee stock purchase program (the "ESPP").

Stock Options

The Compensation and Human Resource Committee of Teradata’s Board of Directors has discretion to determine the material terms and conditions of option awards under both the 2007 SIP and the 2012 SIP (collectively, the "Teradata SIP"), provided that (i) the exercise price must be no less than the fair market value of Teradata common stock (as defined in both plans) on the date of grant, and (ii) the term must be no longer than ten years. Option grants generally have a four-year vesting period.

No options were granted in 2019 and 2018. The weighted-average fair value of options granted for Teradata equity awards was $11.08 in in 2017. 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
Dividend yield	—	%
Risk-free interest rate	1.99	%
Expected volatility	35.0	%
Expected term (years)	6.3

The following table summarizes the Company’s stock option activity for the year ended December 31, 2019:



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, 2019	4,148		$	40.34	3.8	$	15
Granted	—		$	—
Exercised	(916	)	$	35.50
Canceled	(660	)	$	47.71
Forfeited	(68	)	$	28.78
Outstanding at December 31, 2019	2,504		$	40.49	3.7	$	—
Fully vested and expected to vest at December 31, 2019	2,504		$	40.49	3.7	$	—
Exercisable at December 31, 2019	2,352		$	41.28	3.5	$	—

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	2019		2018		2017
Intrinsic value of options exercised	$	9	$	15	$	6
Cash received from option exercises	$	32	$	21	$	19
Tax benefit realized from option exercises	$	2	$	3	$	2

As of December 31, 2019, there was $2 million of total unrecognized compensation cost related to unvested stock option grants. That cost is expected to be recognized over a weighted-average period of 0.5 years.

Restricted Shares and Restricted Share Units

The Teradata SIP provides for the issuance of restricted shares, as well as restricted share units. These grants consist of both service-based and performance-based awards. Service-based awards typically vest over a three-year period beginning on the effective date of grant. These grants are not subject to future performance measures. The cost of these awards, determined to be the fair market value at the date of grant, is expensed ratably over the vesting period. For substantially all restricted share grants, at the date of grant, the recipient has all rights of a stockholder, subject to certain restrictions on transferability and a risk of forfeiture. A recipient of restricted share units does not have the rights of a stockholder and is subject to restrictions on transferability and risk of forfeiture. For both restricted share grants and restricted share units, any potential dividend rights would be subject to the same vesting requirements as the underlying equity award. As a result, such rights are considered a contingent transfer of value and consequently these equity awards are not considered participating securities. Performance-based grants are subject to future performance measurements over a one-to three-year period. All performance-based shares that are earned in respect of an award will become vested at the end of the performance and/or service period provided the employee is continuously employed by the Company and applicable performance measures and other vesting conditions are met. The fair value of each performance-based award is determined on the grant date, based on the Company’s stock price, and assumes that performance targets will be achieved. Over the performance period, the number of shares of stock that will be issued is adjusted upward or downward based upon management’s assessment of the probability of achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense will be based on a comparison of the final achievement of performance metrics to the specified targets.

The following table reports restricted shares and restricted share unit activity during the year ended December 31, 2019:



Shares in thousands	Number of Shares		Weighted- Average Grant Date Fair Value per Share
Unvested shares at January 1, 2019	3,231		$	34.27
Granted	3,634		$	44.13
Vested	(1,218	)	$	33.52
Forfeited/canceled	(478	)	$	38.57
Unvested shares at December 31, 2019	5,169		$	40.95

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.



	2019		2018		2017
Weighted-average fair value of restricted share units granted	$	44.13	$	37.98	$	34.88
Total fair value of shares vested (in millions)	$	41	$	53	$	50

As of December 31, 2019, there was $137 million of unrecognized compensation cost related to unvested restricted share grants. The unrecognized compensation cost is expected to be recognized over a remaining weighted-average period of 1.1 years.

The following table represents the composition of Teradata restricted share unit grants in 2019:



Shares in thousands	Number of Shares	Weighted- Average Grant Date Fair Value
Service-based shares	3,103	$	44.21
Performance-based shares	531	$	43.65
Total stock grants	3,634	$	44.13

In 2017, performance-based share units granted as part of our long-term incentive program for certain corporate officers and key executives will be earned based on Teradata's total shareholder return ("TSR") over a three-year performance period relative to the other companies in the S&P 1500 Information Technology Index. The number of shares issued, as a percentage of the amount subject to the performance share award, could range from 0% to 200%. The grant date fair value of the non-vested performance-based awards was determined using a Monte Carlo simulation model, which utilized multiple input variables that determined the probability of satisfying the market condition requirements applicable to each award. The compensation expense for the award will be recognized if the requisite service is rendered, regardless of whether the market conditions are achieved.

Employee Stock Purchase Program

The Company’s ESPP, effective on October 1, 2007, and as amended effective as of January 1, 2013, provides eligible employees of Teradata and its designated subsidiaries an opportunity to purchase the Company’s common stock at a discount to the average of the highest and lowest sale prices on the last trading day of each month. The ESPP discount is 15% of the average market price and is considered compensatory.

Employees may authorize payroll deductions of up to 10% of eligible compensation for common stock purchases. A total of 7 million shares were authorized to be issued under the ESPP, with approximately 2.1 million shares remaining under that authorization at December 31, 2019. The shares of Teradata common stock purchased by a participant on an exercise date (the last day of each month), for all purposes, are deemed to have been issued and sold at the close of business on such exercise date. Prior to that time, none of the rights or privileges of a stockholder exists with respect to such shares. Employee purchases and aggregate cost were as follows at December 31:



In millions	2019		2018		2017
Employee share purchases	0.6		0.5		0.6
Aggregate cost	$	20	$	17	$	15

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

Pension and Postemployment Plans. Teradata currently sponsors defined benefit pension plans for certain of its international employees. For those international pension plans for which the Company holds asset balances, those assets are primarily invested in common/collective trust funds (which include publicly traded common stocks, corporate and government debt securities, real estate indirect investments, cash or cash equivalents) and insurance contracts.

Postemployment obligations relate to benefits provided to involuntarily terminated employees and certain inactive employees after employment but before retirement. These benefits are paid in accordance with various foreign statutory laws and regulations, and Teradata’s established postemployment benefit practices and policies. Postemployment benefits may include disability benefits, supplemental unemployment benefits, severance, workers’ compensation benefits, continuation of health care benefits and life insurance coverage, and are funded on a pay-as-you-go basis.

Pension and postemployment benefit costs for the years ended December 31 were as follows:



	2019					2018					2017
In millions	Pension			Postemployment		Pension			Postemployment		Pension			Postemployment
Service cost	$	7		$	11	$	8		$	8	$	9		$	7
Interest cost	3			1		3			1		3			1
Expected return on plan assets	(2		)	—		(2		)	—		(2		)	—
Curtailment charge	—			—		(1		)	—		—			—
Amortization of actuarial loss	1			5		1			4		1			2
Amortization of prior service (credit) cost	—			—		—			—		(1		)	1
Total costs	$	9		$	17	$	9		$	13	$	10		$	11

The underfunded amount of pension and postemployment obligations is recorded as a liability in the Company’s consolidated balance sheet. The following tables present the changes in benefit obligations, plan assets, funded status and the reconciliation of the funded status to amounts recognized in the consolidated balance sheets and in accumulated other comprehensive income at December 31:



	Pension						Postemployment
In millions	2019			2018			2019			2018
Change in benefit obligation
Benefit obligation at January 1	$	132		$	136		$	54		$	47
Service cost	7			8			11			8
Interest cost	3			3			1			1
Plan participant contributions	1			1			—			—
Actuarial loss (gain)	24			(5		)	21			12
Benefits paid	(10		)	(2		)	(26		)	(14		)
Curtailment	(1		)	(1		)	—			—
Settlement	(6		)	(4		)	—			—
Currency translation adjustments	(1		)	(4		)	—			—
Benefit obligation at December 31	$	149		$	132		$	61		$	54
Change in plan assets
Fair value of plan assets at January 1	$	68		$	75		$	—		$	—
Actual return on plan assets	10			(2		)	—			—
Company contributions	6			5			—			—
Benefits paid	(10		)	(2		)	—			—
Currency translation adjustments	—			(1		)	—			—
Plan participant contribution	1			1			—			—
Settlements	(6		)	(4		)	—			—
Other	—			(4		)	—			—
Fair value of plan assets at December 31	69			68			—			—
Funded status (underfunded)	$	(80	)	$	(64	)	$	(61	)	$	(54	)
Amounts Recognized in the Consolidated Balance Sheet
Non-current assets	$	6		$	5		$	—		$	—
Current liabilities	(1		)	(1		)	(10		)	(9		)
Non-current liabilities	(85		)	(68		)	(51		)	(45		)
Net amounts recognized	$	(80	)	$	(64	)	$	(61	)	$	(54	)
Amounts Recognized in Accumulated Other Comprehensive (Loss) Income
Unrecognized Net actuarial loss	$	30		$	16		$	61		$	44
Unrecognized Prior service cost	—			—			2			3
Total	$	30		$	16		$	63		$	47

The following table presents the accumulated pension benefit obligation at December 31:



In millions	2019		2018
Accumulated pension benefit obligation	$	137	$	122

The following table presents pension plans with accumulated benefit obligations in excess of plan assets at December 31:



In millions	2019		2018
Projected benefit obligation	$	119	$	68
Accumulated benefit obligation	$	109	$	61
Fair value of plan assets	$	33	$	—

The following table presents the pre-tax net changes in projected benefit obligations recognized in other comprehensive income:



	Pension						Postemployment
In millions	2019			2018			2019			2018
Actuarial loss (gain) arising during the year	$	15		$	(2	)	$	21		$	12
Amortization of loss included in net periodic benefit cost	(1		)	(1		)	(5		)	(4		)
Recognition of gain due to curtailment	—			1			—			—
Foreign currency exchange	—			(1		)	—			—
Total recognized in other comprehensive (loss) income	$	14		$	(3	)	$	16		$	8

The following table presents the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2020:



In millions	Pension		Postemployment
Net loss to be recognized in other comprehensive income	$	3	$	7

The weighted-average rates and assumptions used to determine benefit obligations at December 31, and net periodic benefit cost for the years ended December 31, were as follows:



	Pension Benefit Obligations		Pension Benefit Cost
	2019	2018	2019	2018	2017
Discount rate	1.2%	2.2%	2.2%	2.1%	2.0%
Rate of compensation increase	3.0%	3.4%	3.4%	3.3%	3.3%
Expected return on plan assets	N/A	N/A	3.0%	2.8%	2.9%
	Postemployment Benefit Obligations		Postemployment Benefit Cost
	2019	2018	2019	2018	2017
Discount rate	1.8%	2.5%	2.5%	2.6%	3.4%
Rate of compensation increase	3.0%	3.0%	3.0%	3.0%	3.0%
Involuntary turnover rate	3.0%	2.5%	2.5%	2.3%	2.0%

The Company determines the expected return on assets based on individual plan asset allocations, historical capital market returns, and long-term interest rate assumptions, with input from its actuaries, investment managers, and independent investment advisors. The company emphasizes long-term expectations in its evaluation of return factors, discounting or ignoring short-term market fluctuations. Expected asset returns are reviewed annually, but are generally modified only when asset allocation strategies change or long-term economic trends are identified.

International discount rates were determined by examining interest rate levels and trends within each country, particularly yields on high-quality long-term corporate bonds, relative to our future expected cash flows. The discount rate used for countries with individually insignificant benefit obligation at year-end was derived by matching the plans’ expected future cash flows to the corresponding yields from the Citigroup Pension Liability Index. This yield curve has been constructed to represent the available yields on high-quality fixed-income investments across a broad range of future maturities.

Gains and losses have resulted from changes in actuarial assumptions and from differences between assumed and actual experience, including, among other items, changes in discount rates and differences between actual and assumed asset returns. These gains and losses (except those differences being amortized to the market-related value) are only amortized to the extent that they exceed 10% of the higher of the market-related value of plan assets or the projected benefit obligation of each respective plan.

Plan Assets. The weighted-average asset allocations at December 31, by asset category are as follows:



	Actual Asset Allocation as of December 31		Target Asset
	2019	2018	Allocation
Equity securities	34%	32%	32%
Debt securities	43%	51%	49%
Insurance (annuity) contracts	12%	12%	12%
Real estate	10%	3%	4%
Other	1%	2%	3%
Total	100%	100%	100%

Investment Strategy. Teradata employs several investment strategies across its various international pension plans. In some countries, particularly where Teradata does not have a large employee base, the Company may use insurance (annuity) contracts to satisfy its future pension payment obligations, whereby the Company makes pension plan contributions to an insurance company in exchange for which the pension plan benefits will be paid when the members reach a specified retirement age or on earlier exit of members from the plan. In other countries, the Company may employ local asset managers to manage investment portfolios according to the investment policies and guidelines established by the Company, and with consideration to individual plan liability structure and local market environment and risk tolerances. The Company’s investment policies and guidelines primarily emphasize diversification across and within asset classes to maximize long-term returns subject to prudent levels of risk, with the overall objective of enabling the plans to meet their future obligations. The investment portfolios contain a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across domestic and international stocks, small and large capitalization stocks, and growth and value stocks. Fixed-income assets are diversified across government and corporate bonds. Where applicable, real estate investments are made through real estate securities, partnership interests or direct investment, and are diversified by property type and location.

Fair Value. Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are more fully described in Note 11.

The following is a description of the valuation methodologies used for pension assets as of December 31, 2019.

Common/collective trust funds (which include money market funds, equity funds, bond funds, real estate indirect investments, etc.): Valued at the net asset value ("NAV") of shares held by the Plan at year end, as reported to the Plan by the trustee, which represents the fair value of shares held by the Plan. Because the NAV of the shares held in the common/collective trust funds are derived by the value of the underlying investments, the Company has classified these underlying investments as Level 2 fair value measurements.

Insurance contracts: Valued by discounting the related future benefit payments using a current year-end market discount rate, which represents the fair value of the insurance contract. The Company has classified these contracts as Level 3 assets for fair value measurement purposes.

The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2019:



			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	1	$	—	$	1	$	—
Equity funds	23		—		23		—
Bond/fixed-income funds	30		—		30		—
Real estate indirect investments	7		—		7		—
Insurance contracts	8		—		—		8
Total assets at fair value	$	69	$	—	$	61	$	8

The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2019:



In millions	Insurance Contracts
Balance as of January 1, 2019	$	8
Purchases, sales and settlements, net	—
Balance as of December 31, 2019	$	8

The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2018:



			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	1	$	—	$	1	$	—
Equity funds	22		—		22		—
Bond/fixed-income funds	35		—		35		—
Real estate indirect investments	2		—		2		—
Insurance contracts	8		—		—		8
Total assets at fair value	$	68	$	—	$	60	$	8

The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2018:



In millions	Insurance Contracts
Balance as of January 1, 2018	$	12
Purchases, sales and settlements, net	(4		)
December 31, 2018	$	8

Cash Flows Related to Employee Benefit Plans

Cash Contributions. In 2020, the Company expects to contribute approximately $3 million to the international pension plans.

Estimated Future Benefit Payments. The Company expects to make the following benefit payments, estimated based on the assumptions used to measure the company's benefit obligation at the end of the year, reflecting past and future service from its pension and postemployment plans:



	Pension		Postemployment
In millions	Benefits		Benefits
Year
2020	$	4	$	10
2021	$	6	$	10
2022	$	6	$	10
2023	$	6	$	10
2024	$	7	$	9
2025 - 2029	$	39	$	49

Savings Plans. United States employees and many international employees participate in defined contribution savings plans. These plans generally provide either a specified percent of pay or a matching contribution on participating employees’ voluntary elections. The Company’s matching contributions typically are subject to a maximum percentage or level of compensation. Employee contributions can be made pre-tax, after-tax or a combination thereof. The following table identifies the expense for the United States and International subsidiary savings plans for the years ended December 31:



In millions	2019		2018		2017
U.S. savings plan	$	21	$	22	$	21
International subsidiary savings plans	$	16	$	17	$	17

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

As a portion of Teradata’s operations is conducted outside the United States and in currencies other than the U.S. dollar, the Company is exposed to potential gains and losses from changes in foreign currency exchange rates. In an attempt to mitigate the impact of currency fluctuations, the Company uses foreign exchange forward contracts to hedge transactional exposures resulting predominantly from foreign currency denominated inter-company receivables and payables. The forward contracts are designated as fair value hedges of specified foreign currency denominated inter-company receivables and payables and generally mature in three months or less. The fair values of foreign exchange contracts are based on market spot and forward exchange rates and represent estimates of possible value that may not be realized in the future. Across its portfolio of contracts, Teradata has both long and short positions relative to the U.S. dollar. As a result, Teradata’s net involvement is less than the total contract notional amount of the Company’s foreign exchange forward contracts.

Gains and losses from foreign exchange forward contracts are fully recognized each period and reported along with the offsetting gain or loss of the related hedged item, either in cost of revenues or in other income (expense), depending on the nature of the related hedged item.

In June 2018, Teradata executed a five-year interest rate swap with a $500 million initial notional amount to hedge the floating interest rate of its Term Loan, as more fully described in Note 12. The Company uses interest rate swaps to manage interest rate risks on future interest payments caused by interest rate changes on its variable rate term loan. The notional amount of the hedge will step-down according to the amortization schedule of the term loan. The notional amount of the hedge was $482 million as of December 31, 2019.

The Company performed an initial effectiveness assessment in the third quarter of 2018 on the interest rate swap, and the hedge was determined to be effective. The hedge is being evaluated qualitatively on a quarterly basis for effectiveness. Changes in fair value are recorded in Accumulated Other Comprehensive Loss and periodic settlements of the swap will be recorded in interest expense along with the interest on amounts outstanding under the term loan.

The following table identifies the contract notional amount of the Company’s hedging instruments at December 31:



In millions	2019		2018
Contract notional amount of foreign exchange forward contracts	$	150	$	256
Net contract notional amount of foreign exchange forward contracts	$	41	$	35
Contract notional amount of interest rate swap	$	482	$	500

All derivatives are recognized in the consolidated balance sheets at their fair value. The notional amounts represent agreed-upon amounts on which calculations of dollars to be exchanged are based and are an indication of the extent of Teradata’s involvement in such instruments. These notional amounts do not represent amounts exchanged by the parties and, therefore, are not a measure of the instruments. Refer to Note 11 for disclosures related to the fair value of all derivative assets and liabilities.

The Company does not hold or issue derivative financial instruments for trading purposes, nor does it hold or issue leveraged derivative instruments. By using derivative financial instruments to hedge exposures to changes in foreign exchange and interest rates, the Company exposes itself to credit risk. The Company manages exposure to counterparty credit risk by entering into derivative financial instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In the ordinary course of business, the Company is subject to proceedings, lawsuits, governmental investigations, claims and other matters, including those that relate to the environment, health and safety, employee benefits, export compliance, intellectual property, tax matters and other regulatory compliance and general matters. We are not currently a party to any litigation, nor are we aware of any pending or threatened litigation against us that we believe would materially affect our business, operating results, financial condition or cash flows. Guarantees and Product Warranties. Guarantees associated with the Company’s business activities are reviewed for appropriateness and impact to the Company’s financial statements. Periodically, the Company’s customers enter into various leasing arrangements coordinated with a leasing company. In some instances, the Company guarantees the leasing company a minimum value at the end of the lease term on the leased equipment. As of December 31, 2019, the maximum future payment obligation of this guaranteed value and the associated liability balance was $3 million. For customers that purchase hardware, the Company provides a standard manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. The estimated liabilities for warranty costs are not material, given that most customers do not purchase hardware under the subscription model. The Company also offers extended and/or enhanced coverage to its customers in the form of maintenance contracts. Teradata accounts for these contracts by deferring the related maintenance revenue over the extended and/or enhanced coverage period. Costs associated with maintenance support are expensed as incurred. In addition, the Company provides its customers with certain indemnification rights. In general, the Company agrees to indemnify the customer if a third party asserts patent or other infringement on the part of the customer for its use of the Company’s offerings. The Company has indemnification obligations under its charter and bylaws to its officers and directors, and has entered into indemnification agreements with the officers and directors of its subsidiaries. From time to time, the Company also enters into agreements in connection with its acquisition and divesture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is typically not readily determinable due to the conditional nature of the Company’s potential obligations and the specific facts and circumstances involved with each particular agreement. As such, the Company has generally not recorded a liability in connection with these indemnification arrangements. Historically, payments made by the Company under these types of agreements have not had a material effect on the Company’s consolidated financial condition, results of operations or cash flows. Concentrations of Risk. The Company is potentially subject to concentrations of credit risk on accounts receivable and financial instruments such as hedging instruments, and cash and cash equivalents. Credit risk includes the risk of nonperformance by counterparties. The maximum potential loss may exceed the amount recognized on the balance sheet. Exposure to credit risk is managed through credit approvals, credit limits, selecting major international financial institutions (as counterparties to hedging transactions) and monitoring procedures. Teradata’s business often involves large transactions with customers, and if one or more of those customers were to default in its obligations under applicable contractual arrangements, the Company could be exposed to potentially significant losses. However, management believes that the reserves for potential losses were adequate at December 31, 2019 and December 31, 2018. The Company is also potentially subject to concentrations of supplier risk. Our hardware components are assembled exclusively by Flex Ltd. ("Flex"). Flex procures a wide variety of components used in the manufacturing process on behalf of the Company. Although many of these components are available from multiple sources, Teradata utilizes preferred supplier relationships to provide more consistent and optimal quality, cost and delivery. Typically, these preferred suppliers maintain alternative processes and/or facilities to ensure continuity of supply. Given the Company’s strategy to outsource its manufacturing activities to Flex and to source certain components from single suppliers, a disruption in production at Flex or at a supplier could impact the timing of customer shipments and/or Teradata’s operating results. In addition, a significant change in the forecasts to any of these preferred suppliers could result in purchase obligations for components that may be in excess of demand.

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as significant other observable inputs, such as quoted prices in active markets for similar assets or liabilities, or quoted prices in less-active markets for identical assets; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The Company’s assets and liabilities measured at fair value on a recurring basis include money market funds, interest rate swaps and foreign currency exchange contracts. A portion of the Company’s excess cash reserves are held in money market funds which generate interest income based on the prevailing market rates. Money market funds are included in cash and cash equivalents in the Company’s balance sheet. Money market fund holdings are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy.

When deemed appropriate, the Company minimizes its exposure to changes in foreign currency exchange rates using derivative financial instruments, specifically, foreign exchange forward contracts. Additionally, in June 2018, Teradata executed a five-year interest rate swap with a $500 million initial notional amount to hedge the floating interest rate on its term-loan. The fair value of these contracts and swaps are measured at the end of each interim reporting period using observable inputs other than quoted prices, specifically market spot and forward exchange rates. As such, these derivative instruments are classified within Level 2 of the valuation hierarchy. Fair value of unrealized gains for open contracts are recorded in other assets and the fair value of unrealized losses are recorded in other liabilities in the Company's balance sheet. The fair value of foreign exchange forward contracts recorded in other assets and other liabilities at December 31, 2019 and 2018 were not material. Realized gains and losses from the Company’s fair value hedges net of corresponding gains or losses on the underlying exposures were immaterial for years ended December 31, 2019, 2018 and 2017.

The Company’s assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at December 31, 2019 and December 31, 2018 were as follows:



			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds at December 31, 2019	$	141	$	141	$	—	$	—
Money market funds at December 31, 2018	$	246	$	246	$	—	$	—
Liabilities
Interest rate swap at December 31, 2019	$	19	$	—	$	19	$	—
Interest rate swap at December 31, 2018	$	7	$	—	$	7	$	—

Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

In June 2018, Teradata replaced its existing five-year, $400 million revolving credit facility with a new $400 million revolving credit facility (the "Credit Facility"). The Credit Facility ends in June 2023, at which point any remaining outstanding borrowings would be due for repayment unless extended by agreement of the parties for up to two additional one-year periods. In addition, under the terms of the Credit Facility, Teradata from time to time and subject to certain conditions may increase the lending commitments under the Credit Facility in an aggregate principal amount up to an additional $200 million, to the extent that existing or new lenders agree to provide such additional commitments. The outstanding principal amount of the Credit Facility bears interest at a floating rate based upon, at Teradata’s option, a negotiated base rate or a Eurodollar rate plus, in each case, a margin based on Teradata’s leverage ratio. In the near term, Teradata would anticipate choosing a floating rate based on London Interbank Offered Rate ("LIBOR"). The Credit Facility is unsecured but is guaranteed by certain of Teradata’s material domestic subsidiaries and contains certain representations and warranties, conditions, affirmative, negative and financial covenants, and events of default customary for such facilities. As of December 31, 2019 and 2018, the Company had no borrowings outstanding under the Credit Facility, leaving $400 million in additional borrowing capacity available under the Credit Facility. Unamortized deferred costs on the original credit facility and new lender fees of approximately $1 million were being amortized over the five-year term of the credit facility. The Company was in compliance with all covenants as of December 31, 2019 and 2018.

Also, on June 2018, Teradata closed on a new senior unsecured $500 million five-year term loan, the proceeds of which plus additional cash-on-hand were used to pay off the remaining $525 million of principal on its previous term loan. The term loan is payable in quarterly installments, which commenced on June 30, 2019, with 1.25% of the initial principal amount due on each of the first eight payment dates; 2.50% of the initial principal amount due on each of the next four payment dates; 5.0% of the initial principal amount due on each of the next three payment dates; and all remaining principal due on June 11, 2023. The outstanding principal amount of the term loan bears interest at a floating rate based upon a negotiated base rate or a Eurodollar rate plus, in each case, a margin based on the leverage ratio of the Company. The term loan principal outstanding was $482 million at December 31, 2019 and $500 million at December 31, 2018. As disclosed in Note 9, Teradata entered into an interest rate swap to hedge the floating interest rate of the Term Loan. As a result of the swap, Teradata’s fixed rate on the term loan equals 2.86% plus the applicable leverage-based margin as defined in the term loan agreement. As of December 31, 2019 and 2018, the all-in fixed rate is 4.36%. Unamortized deferred issuance costs of approximately $2 million were being amortized over the five-year term of the loan. The Company was in compliance with all covenants as of December 31, 2019 and 2018.

Annual contractual maturities of outstanding principal on the term loan at December 31, 2019, are as follows:



In millions
2020	$	25
2021	44
2022	88
2023	325
Total	$	482

Teradata’s term loan is recognized on the Company’s balance sheet at its unpaid principal balance and is not subject to fair value measurement. However, given that the loan carries a variable rate, the Company estimates that the unpaid principal balance of the term loan would approximate its fair value. If measured at fair value in the financial statements, the Company’s term loan would be classified as Level 2 in the fair value hierarchy.

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lessee

The Company adopted ASU No. 2016-02, "Leases (Topic 842)," on January 1, 2019, which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach utilizing the optional transition method. Prior year financial statements were not recast using this approach. The Company elected the package of practical expedients available for expired or existing contracts, which allowed us to carryforward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $68 million and $66 million, respectively, as of January 1, 2019. The standard did not materially impact our consolidated net earnings or cash flows.

The Company leases property and equipment under finance and operating leases. The Company's operating leases consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from 2 to 10 years. The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). For automobile leases we account for lease and non-lease components together.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property.

The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:




In millions, except weighted average calculations	Classification on the Balance Sheet	2019
Assets
Operating lease assets	Right of use assets - operating lease, net	$	51
Finance lease assets	Property and equipment, net	141
Total lease assets		$	192

Liabilities
Current
Operating	Current portion of operating lease liability	$	20
Finance	Current portion of finance lease liability	55
Noncurrent
Operating	Operating lease liability	38
Finance	Finance lease liability	75
Total lease liabilities		$	188

Weighted-average remaining lease term
Operating leases		3.49 years
Finance leases		2.44 years
Weighted-average discount rate
Operating leases⁽¹⁾		5.00		%
Finance leases		4.58		%

⁽¹⁾ Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.

Lessee Costs

The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of (loss) income for the year ended December 31, 2019:




In millions	2019
Finance lease cost
Depreciation of leased assets	$	25
Interest of lease liabilities	4
Operating lease cost	31
Sub-lease income from real estate properties owned and leased	(6		)
Total lease cost	$	54

Other Information

The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:




In millions	2019
Operating cash flows for operating leases	$	22
Operating cash flows for finance leases	$	4
Financing cash flows for finance leases	$	33

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2019:



In millions	Operating Leases			Finance Leases
2020	$	24		$	60
2021	16			54
2022	12			23
2023	7			—
2024	4			—
Thereafter	2			—
Total minimum lease payments	65			137
Less: amount of lease payments representing interest	(7		)	(7		)
Present value of future minimum lease payments	58			130
Less: current obligations under leases	(20		)	(55		)
Long-term lease obligations	$	38		$	75

The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2018.



In millions	Operating Leases		Finance Leases
2019	$	24	$	19
2020	20		31
2021	12		—
2022	11		—
2023	6		—
Thereafter	2		—
Total minimum lease payments	$	75	$	50

Lessor

The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company owns or leases the hardware and may or may not provide managed services. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue caption on the consolidated statements of (loss) income. Equipment used for this revenue is reported within Property and equipment, net on the consolidated balance sheet.

The following table includes rental revenue for the years ended December 31:



In millions	2019		2018		2017
Rental revenue*	$	76	$	32	$	17

*Rental revenue includes hardware maintenance.

The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2019:



In millions	Rental Revenue
2020	$	80
2021	75
2022	52
Total	$	207

Lessee

The Company adopted ASU No. 2016-02, "Leases (Topic 842)," on January 1, 2019, which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach utilizing the optional transition method. Prior year financial statements were not recast using this approach. The Company elected the package of practical expedients available for expired or existing contracts, which allowed us to carryforward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $68 million and $66 million, respectively, as of January 1, 2019. The standard did not materially impact our consolidated net earnings or cash flows.

The Company leases property and equipment under finance and operating leases. The Company's operating leases consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from 2 to 10 years. The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). For automobile leases we account for lease and non-lease components together.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property.

The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:




In millions, except weighted average calculations	Classification on the Balance Sheet	2019
Assets
Operating lease assets	Right of use assets - operating lease, net	$	51
Finance lease assets	Property and equipment, net	141
Total lease assets		$	192

Liabilities
Current
Operating	Current portion of operating lease liability	$	20
Finance	Current portion of finance lease liability	55
Noncurrent
Operating	Operating lease liability	38
Finance	Finance lease liability	75
Total lease liabilities		$	188

Weighted-average remaining lease term
Operating leases		3.49 years
Finance leases		2.44 years
Weighted-average discount rate
Operating leases⁽¹⁾		5.00		%
Finance leases		4.58		%

⁽¹⁾ Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.

Lessee Costs

The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of (loss) income for the year ended December 31, 2019:




In millions	2019
Finance lease cost
Depreciation of leased assets	$	25
Interest of lease liabilities	4
Operating lease cost	31
Sub-lease income from real estate properties owned and leased	(6		)
Total lease cost	$	54

Other Information

The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:




In millions	2019
Operating cash flows for operating leases	$	22
Operating cash flows for finance leases	$	4
Financing cash flows for finance leases	$	33

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2019:



In millions	Operating Leases			Finance Leases
2020	$	24		$	60
2021	16			54
2022	12			23
2023	7			—
2024	4			—
Thereafter	2			—
Total minimum lease payments	65			137
Less: amount of lease payments representing interest	(7		)	(7		)
Present value of future minimum lease payments	58			130
Less: current obligations under leases	(20		)	(55		)
Long-term lease obligations	$	38		$	75

The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2018.



In millions	Operating Leases		Finance Leases
2019	$	24	$	19
2020	20		31
2021	12		—
2022	11		—
2023	6		—
Thereafter	2		—
Total minimum lease payments	$	75	$	50

Lessor

The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company owns or leases the hardware and may or may not provide managed services. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue caption on the consolidated statements of (loss) income. Equipment used for this revenue is reported within Property and equipment, net on the consolidated balance sheet.

The following table includes rental revenue for the years ended December 31:



In millions	2019		2018		2017
Rental revenue*	$	76	$	32	$	17

*Rental revenue includes hardware maintenance.

The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2019:



In millions	Rental Revenue
2020	$	80
2021	75
2022	52
Total	$	207

Segment, Other Supplemental Information and Concentrations

Lessee

The Company adopted ASU No. 2016-02, "Leases (Topic 842)," on January 1, 2019, which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach utilizing the optional transition method. Prior year financial statements were not recast using this approach. The Company elected the package of practical expedients available for expired or existing contracts, which allowed us to carryforward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $68 million and $66 million, respectively, as of January 1, 2019. The standard did not materially impact our consolidated net earnings or cash flows.

The Company leases property and equipment under finance and operating leases. The Company's operating leases consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from 2 to 10 years. The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). For automobile leases we account for lease and non-lease components together.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property.

The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:




In millions, except weighted average calculations	Classification on the Balance Sheet	2019
Assets
Operating lease assets	Right of use assets - operating lease, net	$	51
Finance lease assets	Property and equipment, net	141
Total lease assets		$	192

Liabilities
Current
Operating	Current portion of operating lease liability	$	20
Finance	Current portion of finance lease liability	55
Noncurrent
Operating	Operating lease liability	38
Finance	Finance lease liability	75
Total lease liabilities		$	188

Weighted-average remaining lease term
Operating leases		3.49 years
Finance leases		2.44 years
Weighted-average discount rate
Operating leases⁽¹⁾		5.00		%
Finance leases		4.58		%

⁽¹⁾ Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.

Lessee Costs

The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of (loss) income for the year ended December 31, 2019:




In millions	2019
Finance lease cost
Depreciation of leased assets	$	25
Interest of lease liabilities	4
Operating lease cost	31
Sub-lease income from real estate properties owned and leased	(6		)
Total lease cost	$	54

Other Information

The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:




In millions	2019
Operating cash flows for operating leases	$	22
Operating cash flows for finance leases	$	4
Financing cash flows for finance leases	$	33

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2019:



In millions	Operating Leases			Finance Leases
2020	$	24		$	60
2021	16			54
2022	12			23
2023	7			—
2024	4			—
Thereafter	2			—
Total minimum lease payments	65			137
Less: amount of lease payments representing interest	(7		)	(7		)
Present value of future minimum lease payments	58			130
Less: current obligations under leases	(20		)	(55		)
Long-term lease obligations	$	38		$	75

The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2018.



In millions	Operating Leases		Finance Leases
2019	$	24	$	19
2020	20		31
2021	12		—
2022	11		—
2023	6		—
Thereafter	2		—
Total minimum lease payments	$	75	$	50

Lessor

The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company owns or leases the hardware and may or may not provide managed services. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue caption on the consolidated statements of (loss) income. Equipment used for this revenue is reported within Property and equipment, net on the consolidated balance sheet.

The following table includes rental revenue for the years ended December 31:



In millions	2019		2018		2017
Rental revenue*	$	76	$	32	$	17

*Rental revenue includes hardware maintenance.

The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2019:



In millions	Rental Revenue
2020	$	80
2021	75
2022	52
Total	$	207

Segment, Other Supplemental Information and Concentrations

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

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 Interim 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 for the years ended December 31:



In millions	2019		2018		2017
Segment revenue
Americas	$	1,057	$	1,126	$	1,195
EMEA	492		587		567
APAC	350		451		394
Total revenue	1,899		2,164		2,156
Segment gross profit
Americas	626		621		675
EMEA	239		275		276
APAC	148		199		161
Total segment gross profit	1,013		1,095		1,112
Stock-based compensation expense	14		15		13
Acquisition, integration and reorganization-related costs	11		5		4
Amortization of capitalized software costs	33		49		71
Total gross profit	955		1,026		1,024
Selling, general and administrative expenses	618		666		651
Research and development expenses	327		317		305
Total income from operations	$	10	$	43	$	68

Prior period segment information has been reclassified to conform to the current period presentation. Certain items, including amortization of certain capitalized software costs, were excluded from segment gross profit to conform to the way the Company manages and reviews the results by segment.

The following table presents revenues by geographic area for the years ended December 31:



In millions	2019		2018		2017
United States	$	953	$	1,018	$	1,089
Americas (excluding United States)	104		108		106
EMEA	492		587		567
APAC	350		451		394
Total revenue	$	1,899	$	2,164	$	2,156

The following table presents property and equipment, net by geographic area at December 31:



In millions	2019		2018
United States	$	261	$	226
Americas (excluding United States)	19		18
EMEA	36		26
APAC	34		25
Property and equipment, net	$	350	$	295

Concentrations. No single customer accounts for more than 10% of the Company's revenue. As of December 31, 2019, the Company is not aware of any significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on the Company’s operations. The Company's hardware components are assembled exclusively by Flex. In addition, the Company utilizes preferred supplier relationships to better ensure more consistent quality, cost, and delivery. There can be no assurances that a disruption in production at Flex or at a supplier would not have a material adverse effect on the Company's operations. In addition, a significant change in the forecasts to any of these preferred suppliers could result in purchase obligations or components that may be in excess of demand.

Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

The following table provides information on changes in accumulated other comprehensive (loss) income, net of tax ("AOCI"), for the years ended December 31:



In millions	Derivatives			Defined benefit plans			Foreign currency translation adjustments			Total AOCI
Balance as of December 31, 2016	$	—		$	(35	)	$	(54	)	$	(89	)
Other comprehensive (loss) income before reclassifications	—			(5		)	16			11
Amounts reclassified from AOCI	—			4			—			4
Net other comprehensive (loss) income	—			(1		)	16			15
Balance as of December 31, 2017	$	—		$	(36	)	$	(38	)	$	(74	)
Other comprehensive loss before reclassifications	(6		)	(13		)	(13		)	(32		)
Amounts reclassified from AOCI	—			5			—			5
Net other comprehensive loss	(6		)	(8		)	(13		)	(27		)
Balance as of December 31, 2018	$	(6	)	$	(44	)	$	(51	)	$	(101	)
Other comprehensive loss before reclassifications	(9		)	(27		)	(10		)	(46		)
Amounts reclassified from AOCI	—			6			—			6
Net other comprehensive loss	(9		)	(21		)	(10		)	(40		)
Balance as of December 31, 2019	$	(15	)	$	(65	)	$	(61	)	$	(141	)

The following table presents the impact and respective location of AOCI reclassifications in the Consolidated Statements of Income for the years ended December 31:



In millions
AOCI Component	Location	2019			2018			2017
Other Expense	Other Expense	(7		)	(6		)	(5		)
Tax portion	Income tax benefit	1			1			1
Total reclassifications	Net (loss) income	$	(6	)	$	(5	)	$	(4	)

Further information on the Company’s defined benefit plans is included in Note 8.

Reorganization and Business Transformation

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Reorganization and Business Transformation

In 2015, the Company announced a plan to realign Teradata’s business by reducing its cost structure and focusing on the Company’s core data and analytics business. This business transformation included exiting the marketing applications business, rationalizing costs, and modifying the Company’s go-to-market approach. No costs were incurred related to this business transformation plan in 2019 and 2018. In 2017, the Company incurred $26 million in costs under this plan.

In June 2018, the Company approved a plan to consolidate certain of its operations, including transitioning its corporate headquarters to San Diego, California from its location in Dayton, Ohio. This plan, which is being executed in connection with Teradata’s comprehensive business transformation from a data warehouse company to a data analytics platform company, is intended to better align the Company’s skills and resources to effectively pursue opportunities in the marketplace. The Company recognized costs of $23 million in 2018 and $14 million in 2019 for employee separation benefits, transition support, facilities lease related costs, outside service, legal and other exit-related costs. The employee separation benefit costs are being expensed over the time period that the employees have to work to earn them. As of December 31, 2019, the Company incurred costs and charges of approximately $37 million related to the plan. The majority of the costs were attributable to the Americas reporting unit and recorded as selling, general and administrative expenses with no impact on our segment gross profit. The Company expects the remainder of the actions to be completed by the first half of 2020.

Cash paid in 2018 related to the plan listed above was $11 million. The 2019 activity and the reserves related to the plan are as follows:



In millions	Balance at December 31, 2018		Expense accruals		Cash payments			Balance at December 31, 2019
Employee separation benefits costs related to headquarter transition and business transformation	$	11	$	5	$	(15	)	$	1
Transition support and other exit related costs for the headquarter transition and business transformation	1		3		(4		)	—
Total	$	12	$	8	$	(19	)	$	1

In addition, the Company incurred $6 million of accelerated amortization in 2019 for right-of-use assets associated with the lease on its prior corporate headquarters. The remaining lease liability is included in our operating lease obligations as of December 31, 2019 and is not included in the table above.

Quarterly Information (unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Information (unaudited)

The following tables present certain unaudited quarterly financial information for fiscal 2019 and 2018. This supplemental quarterly financial information reflects all normal recurring adjustments, in the opinion of management, necessary to fairly state our results of operations for the periods presented when read in conjunction with the accompanying Consolidated Financial Statements and related Notes.



In millions, except per share amounts	March 31			June 30			September 30		December 31
2019
Total revenues	$	468		$	478		$	459	$	494
Gross profit	$	224		$	236		$	247	$	248
Operating (loss) income	$	(5	)	$	10		$	10	$	(5	)
Net (loss) income	$	(10	)	$	(1	)	$	10	$	(19	)
Net (loss) income per share:
Basic	$	(0.09	)	$	(0.01	)	$	0.09	$	(0.17	)
Diluted	$	(0.09	)	$	(0.01	)	$	0.09	$	(0.17	)
2018
Total revenues	$	506		$	544		$	526	$	588
Gross profit	$	223		$	250		$	264	$	289
Operating (loss) income	$	(4	)	$	10		$	14	$	23
Net (loss) income	$	(7	)	$	4		$	18	$	15
Net (loss) income per share:
Basic	$	(0.06	)	$	0.03		$	0.15	$	0.13
Diluted	$	(0.06	)	$	0.03		$	0.15	$	0.13

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS

(In millions)



Column A	Column B		Column C					Column D			Column E
Description	Balance at Beginning of Period		Provision/reversals Charged to Costs & Expenses			Charged to Other Accounts		Deductions			Balance at End of Period
Allowance for doubtful accounts
Year ended December 31, 2019	$	14	$	4		$	—	$	—		$	18
Year ended December 31, 2018	$	12	$	2		$	—	$	—		$	14
Year ended December 31, 2017	$	19	$	(6	)	$	—	$	(1	)	$	12
Deferred tax valuation allowance
Year ended December 31, 2019	$	39	$	6		$	—	$	—		$	45
Year ended December 31, 2018	$	32	$	7		$	—	$	—		$	39
Year ended December 31, 2017	$	26	$	6		$	—	$	—		$	32

Description of Business, Basis of Presentation and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract]

Description of the Business

Description of the Business. Teradata Corporation ("we," "us," "Teradata," or the "Company") is a leading hybrid cloud analytics software provider focused on helping customers leverage all of their data across an enterprise to uncover real-time intelligence, at scale. We help customers integrate and simplify their analytics ecosystem, access and manage data, and use analytics to extract answers and derive business value from data. Our solutions are comprised of software, hardware, and related business consulting and support services to deliver analytics across a company’s entire analytical ecosystem.

Basis of Presentation

Basis of Presentation. The financial statements are presented on a consolidated basis and include the accounts of the Company and its wholly-owned subsidiaries in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Recurring revenue consists of our on-premises and off-premises subscriptions, which have varying term lengths from one month to five years. Recurring revenue is intended to depict the revenue recognition model for these subscription transactions. The recurrence of these revenue streams in future periods depends on several factors, including contractual periods and customers' renewal decisions. Perpetual software licenses and hardware revenue consists of hardware, perpetual software licenses, and subscription/term licenses recognized upfront. Consulting services revenue consists of consulting, implementation and installation services.

Certain prior period balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income.

Use of Estimates

Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. On an ongoing basis, management evaluates these estimates and judgments, including those related to allowances for doubtful accounts, the valuation of inventory to net realizable value, impairments of goodwill and other intangibles, stock-based compensation, leases, pension and other postemployment benefits, and income taxes and any changes will be accounted for on a prospective basis. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("Topic 606") that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. Topic 606 supersedes the revenue recognition requirements of the prior revenue recognition guidance used prior to January 1, 2018. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for 2019 and 2018 reflect the application of Topic 606 while the reported results for 2017 were prepared under the guidance of Accounting Standards Codification 605, Revenue Recognition, which is also referred to herein as the "previous guidance." As a result, 2017 has not been restated and continues to be reported under the previous guidance. The cumulative effect of applying Topic 606 was recorded as an adjustment to accumulated deficit as of the adoption date (January 1, 2018). The following adjustments were made to accounts on the consolidated balance sheets as of January 1, 2018:


•	The Company reduced current deferred revenue and accumulated deficit by $19 million for contracts that were not complete as of the date of adoption and would have been recognized in a prior period under Topic 606. The revenue adjustment primarily relates to term licenses that are recognized upfront under Topic 606 but were recognized ratably under the previous guidance.


•	Prior to the adoption of Topic 606, the Company expensed sales commissions on long-term contracts. Under Topic 606, the Company capitalizes these incremental costs of obtaining customer contracts. The impact of this change resulted in an increase of other assets and a reduction in accumulated deficit of $17 million on January 1, 2018.


•	The tax impact of these items was $10 million, which was recorded as a deferred tax liability, resulting in a net $26 million reduction in accumulated deficit on January 1, 2018.


•	In addition, the Company reclassified $20 million of contract assets from accounts receivable to other current assets on January 1, 2018.

See Note 3 for the required disclosures related to this standard. See Note 4 for costs to obtain and fulfill a customer contract.

Revenue Recognition under Topic 606

The Company adopted Topic 606 as of January 1, 2018 for all contracts not completed as of the date of adoption. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company performs the following five steps:


1.	identify the contract with a customer,


2.	identify the performance obligations in the contract,


3.	determine the transaction price,


4.	allocate the transaction price to the performance obligations in the contract, and


5.	recognize revenue when (or as) the Company satisfies a performance obligation.

The Company only applies the above five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for goods or services it transfers to the customer. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience, published credit, and financial information pertaining to the customer.

Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales, value add, and other taxes the Company collects concurrent with revenue-producing activities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a good or service to a customer. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur once the uncertainty is resolved. The Company uses the expected value method or the most likely amount method depending on the nature of the variable consideration. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates in the period such variances become known. Typically, the amount of variable consideration is not material.

For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. The Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct within the context of the contract. If these criteria are not met, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Revenue is then recognized either at a point in time or over time depending on our evaluation of when the customer obtains control of the promised goods or services. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue recorded in a given period. In addition, the Company has developed assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. The Company determines the standalone selling price for a good or service by considering multiple factors including, geographies, market conditions, product life cycles, competitive landscape, internal costs, gross margin objectives, purchase volumes and pricing practices. The Company reviews the standalone selling price for each of its performance obligations on a periodic basis and updates it, when appropriate, to ensure that the practices employed reflect the Company’s recent pricing experience. The Company maintains internal controls over the establishment and updates of these estimates, which includes review and approval by the Company’s management.

Teradata delivers its solutions primarily through direct sales channels, as well as through other independent software vendors and distributors and value-added resellers. Standard payment terms may vary based on the country in which the contract is executed, but are generally between 30 days and 90 days. The following is a description of the principal activities and performance obligations from which the Company generates its revenue:

•

Subscriptions - The Company sells on and off-premises subscriptions to our customers through our subscription licenses, cloud, service model, and hardware rental offerings. Teradata’s subscription licenses include a right-to-use license and revenue is recognized upfront at a point in time unless the customer has a contractual right to cancel, where revenue is recognized on a month-to-month basis and is included within the recurring revenue caption. Subscription licenses recognized upfront are reported within the perpetual software licenses and hardware caption. Cloud and service model arrangements include a right-to-access software license on Teradata owned or third party owned hardware such as the public cloud. Revenue is recognized ratably over the contract term and included within the recurring revenue caption. Service models typically include a minimum fixed amount that is recognized ratably over the contract term and may include an elastic amount for usage above the minimum, which is recognized monthly based on actual utilization. For our hardware rental offering, the Company owns the hardware and may or may not provide managed services. The revenue for these arrangements is generally recognized straight-line over the term of the contract and is included within the recurring revenue caption. Hardware rentals are generally accounted for as operating leases and considered outside the scope of Topic 606.


•	Maintenance and software upgrade rights - Revenue for maintenance and unspecified software upgrade rights on a when-and-if-available basis are recognized straight-line over the term of the contract.


•	Perpetual software licenses and hardware - Revenue for software is generally recognized when the customer has the ability to use and benefit from its right to use the license. Hardware is typically recognized upon delivery once title and risk of loss have been transferred (when control has passed).

•

Consulting services - The Company accounts for individual services as separate performance obligations if a service is separately identifiable from other items in a combined arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. Revenue for consulting, implementation and installation services is recognized as services are provided by measuring progress toward the complete satisfaction of the Company’s obligation. Progress for services that are contracted for at a fixed price is generally measured based on hours incurred as a portion of total estimated hours. Progress for services that are contracted for on a time and materials basis is generally based on hours expended. These input methods (e.g. hours incurred or expended) of revenue recognition are considered a faithful depiction of our efforts to satisfy services contracts and therefore reflect the transfer of services to a customer under such contracts.

Significant Accounting Policies and Practical Expedients under Topic 606

The following are the Company’s significant accounting policies not already disclosed elsewhere and practical expedients relating to revenue from contracts with customers:


•	Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.


•	Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment cost and are included in cost of revenues.


•	The Company does not adjust for the effects of a significant financing component if the period between performance and customer payment is one year or less.


•	The Company expenses the costs to obtain a contract as incurred when the expected amortization period is one year or less.

Revenue Recognition under Topic 605 (periods prior to January 1, 2018)

Teradata records revenue when it is realized, or realizable, and earned. Teradata considers these requirements met when:


•	Persuasive evidence of an arrangement exists


•	The offerings or services have been delivered to the customer


•	The sales price is fixed or determinable and free of contingencies or significant uncertainties


•	Collectibility is reasonably assured

Teradata reports revenue net of any taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. The Company assesses whether fees are fixed or determinable at the time of sale. Standard payment terms may vary based on the country in which the agreement is executed, but are generally between 30 days and 90 days. Payments that are due within six months are generally deemed to be fixed or determinable based on a successful collection history on such arrangements, and thereby satisfy the required criteria for revenue recognition.

The Company’s deliverables often involve delivery or performance at different periods of time. The Company's deliverables include the following:


•	Subscription license - revenue for these arrangements is typically recognized ratably over the contract term.


•	Cloud and service model - revenue for these arrangements are recognized outside the software rules and revenue is recognized ratably over the contract term.


•	Rentals - revenue for these arrangements is generally recognized straight-line over the term of the contract and are generally accounted for as operating leases.


•	Perpetual software and hardware - revenue is generally recognized upon delivery once title and risk of loss have been transferred.


•	Unspecified software upgrades - revenue is recognized straight-line over the term of the arrangement.


•	Maintenance support services - revenue is recognized on a straight-line basis over the term of the contract.


•	Consulting, implementation and installation services - revenue is recognized as services are provided. In certain instances, acceptance of the product or service is specified by the customer. In such cases, revenue is deferred until the acceptance criteria have been met. Delivery and acceptance generally occur in the same reporting period.

Shipping and Handling. Product shipping and handling are included in cost in the Consolidated Statements of (Loss) Income.

Cash and Cash Equivalents

Cash and Cash Equivalents. All short-term, highly-liquid investments having original maturities of three months or less are considered to be cash equivalents.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts. Teradata establishes provisions for doubtful accounts using both percentages of accounts receivable balances to reflect historical average credit losses and specific provisions for known issues.

Inventories

Inventories. Inventories are stated at the lower of cost or market. Cost of service parts is determined using the average cost method. Finished goods inventory is determined using actual cost.

Long-Lived Assets

Property and Equipment. Property and equipment, leasehold improvements and rental equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the related assets primarily on a straight-line basis. Our estimate of depreciation expense incorporates management assumptions regarding the useful economic lives and residual values of our assets. Equipment is depreciated over 3 to 5 years and buildings over 25 to 45 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Total depreciation expense on the Company’s property and equipment for December 31 was as follows:



In millions	2019		2018		2017
Depreciation expense	$	104	$	67	$	55

Capitalized Software

Capitalized Software. Direct development costs associated with internal-use software are capitalized and amortized over the estimated useful lives of the resulting software. The costs are capitalized when both the preliminary project

stage is completed and it is probable that computer software being developed will be completed and placed in service. Teradata typically amortizes capitalized internal-use software on a straight-line basis over three years years beginning when the asset is substantially ready for use.

Costs incurred for the development of analytic database software that will be sold, leased or otherwise marketed are expensed as incurred based on the frequency and agile nature of development. The Company uses agile development methodologies to help respond to new technologies and trends and rapidly changing customer needs. Agile development methodologies are characterized by a more dynamic development process with more frequent and iterative revisions to a product release features and functions as the software is being developed. Due to the shorter development cycle and focus on rapid production associated with agile development, the Company did not capitalize any amounts for external-use software development costs in 2019, 2018 and 2017 due to the relatively short duration between the completion of the working model and the point at which a product is ready for general release. Prior capitalized costs will continue to be amortized under the greater of revenue-based or straight-line method over the estimated useful life.

The following table identifies the activity relating to capitalized software for the following periods:



	Internal-use Software									External-use Software
In millions	2019			2018			2017			2019			2018			2017
Beginning balance at January 1	$	15		$	16		$	13		$	57		$	105		$	174
Capitalized	5			6			9			—			—			—
Amortization	(7		)	(7		)	(6		)	(34		)	(48		)	(69		)
Ending balance at December 31	$	13		$	15		$	16		$	23		$	57		$	105

The aggregate amortization expense (actual and estimated) for internal-use and external-use software for the following periods is:



	Actual		For the years ended (estimated)
In millions	2019		2020		2021		2022		2023		2024
Internal-use software amortization expense	$	7	$	7	$	6	$	6	$	6	$	6
External-use software amortization expense	$	34	$	23	$	—	$	—	$	—	$	—

Estimated expense, which is recorded to cost of sales for external use software, is based on capitalized software at December 31, 2019 and does not include any new capitalization for future periods.

Valuation of Long-Lived Assets

Valuation of Long-Lived Assets. Long-lived assets such as property and equipment, acquired intangible assets and internal capitalized software are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment is calculated based on the present value of future cash flows and an impairment loss would be recognized when estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount.

Goodwill

Goodwill. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather are tested for impairment annually or upon occurrence of an event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

Warranty

Warranty. Provisions for product warranties are recorded in the period in which the related revenue is recognized. The Company accrues warranty reserves using percentages of revenue to reflect the Company’s historical average warranty claims.

Research and Development Costs

Research and Development Costs. Research and development costs are expensed as incurred. Research and development costs primarily include labor-related costs, contractor fees, and overhead expenses directly related to research and development support.

Pension and Postemployment Benefits

Leases. In February 2016, the FASB issued new guidance, which requires a lessee to account for leases as finance or operating leases. Both types of leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement and cash flow recognition. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases.

Entities will classify leases to determine how to recognize lease-related revenue and expense. The Company adopted the new standard as of January 1, 2019 using the modified retrospective adoption approach utilizing the optional transition method with prior periods not recast and have elected certain of the practical expedients allowed under the standard. The Consolidated Financial Statements for the year ended December 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with our historical accounting policy. See Note 13 for more information.

Pension and Postemployment Benefits. The Company accounts for its pension benefit and its non-U.S. postemployment benefit obligations using actuarial models. The measurement of plan obligations was made as of December 31, 2019. Liabilities are computed using the projected unit credit method. The objective under this method is to expense each participant’s benefits under the plan as they accrue, taking into consideration salary increases and the plan’s benefit allocation formula. Thus, the total pension or postemployment benefit to which each participant is expected to become entitled is broken down into units, each associated with a year of past or future credited service.

The Company recognizes the funded status of its pension and non-U.S. postemployment plan obligations in its consolidated balance sheet and records, in other comprehensive income, certain gains and losses that arise during the period, but are deferred under pension and postemployment accounting rules.

Foreign Currency

Foreign Currency. Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment are translated into U.S. dollars at period-end exchange rates. Income and expense accounts are translated at daily exchange rates prevailing during the period. Adjustments arising from the translation are included in accumulated other comprehensive income, a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in determining net income.

Income Taxes

Income Taxes. Income tax expense is provided based on income before income taxes in the various jurisdictions in which the Company conducts its business. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. These deferred taxes are determined based on the enacted tax rates expected to apply in the periods in which the deferred assets or liabilities are expected to be settled or realized. The Company made an accounting policy election in 2018 related to the Tax Act to provide for the tax expense related to global intangible low-taxed income ("GILTI") in the year the tax is incurred. Teradata recognizes tax benefits from uncertain tax positions only if it is more likely than not the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company records valuation allowances related to its deferred income tax assets when it is more likely than not that some portion or all the deferred income tax assets will not be realized.

Stock-based Compensation

Stock-based Compensation. Stock-based payments to employees, including grants of stock options, restricted shares and restricted share units, are recognized in the financial statements based on their fair value. The fair value of each stock option award on the grant date is estimated using the Black-Scholes option-pricing model with the following assumptions: expected dividend yield, expected stock price volatility, weighted-average risk-free interest rate and weighted average expected term of the options. The Company’s expected volatility assumption used in the Black-Scholes option-pricing model is based on Teradata's historical volatility. The expected term for options granted is based upon historical observation of actual time elapsed between date of grant and exercise of options for all employees. The risk-free interest rate used in the Black-Scholes model is based on the implied yield curve available on U.S. Treasury issues at the date of grant with a remaining term equal to the Company’s expected term assumption. The Company has never declared or paid a cash dividend. See Note 7 for additional information.

(Loss) Earnings Per Share

(Loss) Earnings Per Share. Basic (loss) earnings per share is calculated by dividing net (loss) income by the weighted-average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted-average number of shares outstanding includes the dilution from potential shares added from stock options, restricted share awards and other stock awards. Refer to Note 7 for share information on the Company’s stock compensation plans.

The components of basic and diluted earnings (loss) per share for the years ended December 31 are as follows:



In millions, except earnings (loss) per share	2019			2018		2017
Net (loss) income attributable to common stockholders	$	(20	)	$	30	$	(67	)
Weighted average outstanding shares of common stock	114.2			119.2		125.8
Dilutive effect of employee stock options, restricted shares and other stock awards	—			2.0		—
Common stock and common stock equivalents	114.2			121.2		125.8
(Loss) earnings per share:
Basic	$	(0.18	)	$	0.25	$	(0.53	)
Diluted	$	(0.18	)	$	0.25	$	(0.53	)

For 2019 and 2017, due to the net loss attributable to Teradata common stockholders, potential common shares that would cause dilution, such as employee stock options, restricted shares and other stock awards, have been excluded from the diluted share count because their effect would have been anti-dilutive. For 2019 and 2017, the fully diluted shares would have been 115.5 million in 2019 and 127.8 million in 2017.

Options to purchase 2.0 million shares in 2019, 2.6 million shares in 2018 and 2.7 million shares in 2017 of common stock, were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares and, therefore, the effect would have been anti-dilutive.

Recently Issued Accounting Pronouncements and Recently Adopted Guidance

Recently Issued Accounting Pronouncements

Accounting for Income Taxes. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes. The new guidance changes various subtopics of accounting for income taxes including, but not limited to, accounting for "hybrid" tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, and year-to-date loss limitation in interim-period tax accounting. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted, including interim periods within those years. The company is currently evaluating this new guidance to determine the impact it may have on our financial position, results of operations or cash flows.

Fair Value Measurement. In August 2018, the FASB issued new guidance that modifies disclosure requirements related to fair value measurement. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this update while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating this guidance to determine the impact it may have on its disclosures.

Compensation-Retirement Benefits-Defined Benefit Plans-General. In August 2018, the FASB issued new guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact it may have on its disclosures.

Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. In August 2018, the FASB issued new guidance that reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). For public companies, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Implementation should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The effects of this standard on our financial position, results of operations or cash flows are not expected to be material.

Codification Improvements to Financial Instruments-Credit Losses, Derivatives and Hedging, and Financial Instruments. In June 2016, the FASB issued Accounting Standards, Measurement of Credit Losses on Financial

Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. Since the issuance of this accounting standard, the FASB has identified certain areas that require clarification and improvement. In May 2019, the FASB issued guidance that allows entities to make an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets measured at amortized cost (except held-to-maturity securities) using the fair value option. The election is to be applied on an instrument-by-instrument basis. For public companies, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The company is currently evaluating this new guidance to determine the impact it may have on our financial position, results of operations or cash flows.

Recently Adopted Guidance

Comprehensive Income. In February 2018, the FASB issued new guidance for Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02), which allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") from accumulated other comprehensive income to retained earnings. The Company adopted this guidance on January 1, 2019, which did not have a material impact on our consolidated financial statements.

Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. In June 2018, the FASB issued new guidance to clarify and improve the scope and the accounting guidance for contributions received and contributions made. The amendments are intended to assist entities in evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) or as exchange (reciprocal) transactions and determining whether a contribution is conditional. The Company adopted this guidance on January 1, 2019, which did not have a material impact on our consolidated financial statements.

Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract]

Schedule Of Depreciation Expense

Total depreciation expense on the Company’s property and equipment for December 31 was as follows:



In millions	2019		2018		2017
Depreciation expense	$	104	$	67	$	55

Schedule Of Activities Relating To Capitalized Software

The following table identifies the activity relating to capitalized software for the following periods:



	Internal-use Software									External-use Software
In millions	2019			2018			2017			2019			2018			2017
Beginning balance at January 1	$	15		$	16		$	13		$	57		$	105		$	174
Capitalized	5			6			9			—			—			—
Amortization	(7		)	(7		)	(6		)	(34		)	(48		)	(69		)
Ending balance at December 31	$	13		$	15		$	16		$	23		$	57		$	105

Aggregate Amortization Expense for Internal and External-Use Software

The aggregate amortization expense (actual and estimated) for internal-use and external-use software for the following periods is:



	Actual		For the years ended (estimated)
In millions	2019		2020		2021		2022		2023		2024
Internal-use software amortization expense	$	7	$	7	$	6	$	6	$	6	$	6
External-use software amortization expense	$	34	$	23	$	—	$	—	$	—	$	—

Schedule Of Basic And Diluted Earnings Per Share

The components of basic and diluted earnings (loss) per share for the years ended December 31 are as follows:



In millions, except earnings (loss) per share	2019			2018		2017
Net (loss) income attributable to common stockholders	$	(20	)	$	30	$	(67	)
Weighted average outstanding shares of common stock	114.2			119.2		125.8
Dilutive effect of employee stock options, restricted shares and other stock awards	—			2.0		—
Common stock and common stock equivalents	114.2			121.2		125.8
(Loss) earnings per share:
Basic	$	(0.18	)	$	0.25	$	(0.53	)
Diluted	$	(0.18	)	$	0.25	$	(0.53	)

Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Supplemental Financial Information



	At December 31
In millions	2019			2018
Accounts receivable
Trade	$	407		$	590
Other	8			12
Accounts receivable, gross	415			602
Less: allowance for doubtful accounts	(17		)	(14		)
Total accounts receivable, net	$	398		$	588
Inventories
Finished goods	$	19		$	16
Service parts	12			12
Total inventories	$	31		$	28
Property and equipment
Land	$	8		$	8
Buildings and improvements	100			84
Finance lease assets	167			52
Machinery and other equipment	515			495
Property and equipment, gross	790			639
Less: accumulated depreciation	(440		)	(344		)
Total property and equipment, net	$	350		$	295
Other current liabilities
Sales and value-added taxes	$	31		$	34
Pension and other postemployment plan liabilities	11			10
Other	49			74
Total other current liabilities	$	91		$	118
Deferred revenue
Deferred revenue, current	$	472		$	490
Long-term deferred revenue	61			105
Total deferred revenue	$	533		$	595
Other long-term liabilities
Transition tax	$	92		$	102
Uncertain tax positions	19			17
Other	27			8
Total other long-term liabilities	$	138		$	127

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2019

Disaggregation of Revenue

The following table presents a disaggregation of revenue for the years ended December 31:



In millions	2019		2018		2017*
Americas
Recurring	$	873	$	801	$	739
Perpetual software licenses and hardware	38		127		234
Consulting services	146		198		222
Total Americas	1,057		1,126		1,195
EMEA
Recurring	305		282		248
Perpetual software licenses and hardware	43		112		133
Consulting services	144		193		186
Total EMEA	492		587		567
APAC
Recurring	185		171		158
Perpetual software licenses and hardware	25		101		62
Consulting services	140		179		174
Total APAC	350		451		394
Total Revenue	$	1,899	$	2,164	$	2,156

*As discussed in Note 1, periods prior to 2018 have not been adjusted under the modified retrospective adoption method of Topic 606

Schedule of Receivables, Contract Assets, and Deferred Revenue from Contracts with Customers

The following table provides information about receivables, contract assets and deferred revenue from contracts with customers:



In millions	December 31, 2019		December 31, 2018
Accounts receivable, net	$	398	$	588
Contract assets	$	8	$	14
Current deferred revenue	$	472	$	490
Long-term deferred revenue	$	61	$	105

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at December 31, 2019:



In millions	Total at December 31, 2019		Year 1		Year 2 and Thereafter
Remaining unsatisfied obligations	$	2,732	$	1,377	$	1,355

Contract Costs (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Activity Related to Capitalized Contract Costs

These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs:



In millions	December 31, 2018		Capitalized		Amortization			December 31, 2019
Capitalized contract costs	$	54	$	57	$	(20	)	$	91
In millions	January 1, 2018		Capitalized		Amortization			December 31, 2018
Capitalized contract costs	$	17	$	44	$	(7	)	$	54

Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by Operating Segment

The following table identifies the activity relating to goodwill by operating segment.



In millions	Balance at December 31, 2018		Reassignment of Goodwill			Currency Translation Adjustments		Balance at December 31, 2019
Goodwill
Americas	$	253	$	—		$	—	$	253
International	142		(142		)	—		—
EMEA	—		88			—		88
APAC	—		54			1		55
Total goodwill	$	395	$	—		$	1	$	396

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Before Income Taxes

For the years ended December 31, (loss) income before income taxes consisted of the following:



In millions	2019			2018			2017
(Loss) income before income taxes
United States	$	(85	)	$	(79	)	$	(26	)
Foreign	72			106			84
Total (loss) income before income taxes	$	(13	)	$	27		$	58

Income Tax Expense

For the years ended December 31, income tax expense (benefit) consisted of the following:



In millions	2019			2018			2017
Income tax expense (benefit)
Current
Federal	$	(3	)	$	(10	)	$	132
State and local	—			6			2
Foreign	13			19			25
Deferred
Federal	(10		)	(20		)	(22		)
State and local	(1		)	(4		)	(4		)
Foreign	8			6			(8		)
Total income tax expense (benefit)	$	7		$	(3	)	$	125
Effective income tax rate	(53.8		%)	(11.1		%)	215.5		%

The Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate

The following table presents the principal components of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:



	2019		2018		2017
Income tax expense at the U.S. federal tax rate	21.0	%	21.0	%	35.0	%
Foreign income tax differential	(49.2	)%	2.1	%	(22.6	)%
U.S. tax on foreign earnings	(8.4	)%	2.0	%	4.3	%
State and local income taxes	58.2	%	(25.0	)%	(11.0	)%
U.S. permanent book/tax differences	(17.0	)%	(2.7	)%	(1.5	)%
U.S. research and development tax credits	68.5	%	(29.5	)%	(11.2	)%
Change in valuation allowance	(49.1	)%	27.7	%	10.0	%
U.S. manufacturing deduction permanent difference	—	%	—	%	(8.0	)%
Tax impact of equity compensation	(49.3	)%	(1.4	)%	0.7	%
Deferred tax impact from U.S. rate change from Tax Reform	—	%	—	%	(27.0	)%
Tax impact of U.S. Tax Reform/Transition Tax	—	%	(23.9	)%	250.0	%
Tax Impact of uncertain tax positions	(24.6	)%	20.2	%	(3.6	)%
Other, net	(3.9	)%	(1.6	)%	0.4	%
Effective income tax rate	(53.8	)%	(11.1	)%	215.5	%

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:



In millions	2019			2018
Deferred income tax assets
Employee pensions and other liabilities	$	63		$	49
Other balance sheet reserves and allowances	18			18
Operating lease liabilities	14			—
Tax loss and credit carryforwards	80			63
Deferred revenue	12			20
Total deferred income tax assets	187			150
Valuation allowance	(45		)	(39		)
Net deferred income tax assets	142			111
Deferred income tax liabilities
Intangibles and capitalized software	8			17
Right of use assets - operating lease	13			—
Property and equipment	12			11
Other	28			19
Total deferred income tax liabilities	61			47
Total net deferred income tax assets	$	81		$	64

Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:



In millions	2019			2018
Balance at January 1	$	34		$	28
Gross increases for prior period tax positions	4			3
Gross increases for current period tax positions	5			8
Decreases due to the lapse of applicable statute of limitations	(6		)	(1		)
Decreases relating to settlements with taxing authorities	—			(4		)
Balance at December 31	$	37		$	34

Employee Stock-based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Expense

The Company recorded stock-based compensation expense for the years ended December 31 as follows:



In millions	2019			2018			2017
Stock options	$	3		$	6		$	9
Restricted shares	77			56			56
Employee share repurchase program	3			3			3
Total stock-based compensation before income taxes	83			65			68
Tax benefit	(10		)	(11		)	(21		)
Total stock-based compensation, net of tax	$	73		$	54		$	47

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
Dividend yield	—	%
Risk-free interest rate	1.99	%
Expected volatility	35.0	%
Expected term (years)	6.3

The Company's Stock Option Activity

The following table summarizes the Company’s stock option activity for the year ended December 31, 2019:



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, 2019	4,148		$	40.34	3.8	$	15
Granted	—		$	—
Exercised	(916	)	$	35.50
Canceled	(660	)	$	47.71
Forfeited	(68	)	$	28.78
Outstanding at December 31, 2019	2,504		$	40.49	3.7	$	—
Fully vested and expected to vest at December 31, 2019	2,504		$	40.49	3.7	$	—
Exercisable at December 31, 2019	2,352		$	41.28	3.5	$	—

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	2019		2018		2017
Intrinsic value of options exercised	$	9	$	15	$	6
Cash received from option exercises	$	32	$	21	$	19
Tax benefit realized from option exercises	$	2	$	3	$	2

Restricted Stock and Restricted Stock Unit Activity

The following table reports restricted shares and restricted share unit activity during the year ended December 31, 2019:



Shares in thousands	Number of Shares		Weighted- Average Grant Date Fair Value per Share
Unvested shares at January 1, 2019	3,231		$	34.27
Granted	3,634		$	44.13
Vested	(1,218	)	$	33.52
Forfeited/canceled	(478	)	$	38.57
Unvested shares at December 31, 2019	5,169		$	40.95

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.



	2019		2018		2017
Weighted-average fair value of restricted share units granted	$	44.13	$	37.98	$	34.88
Total fair value of shares vested (in millions)	$	41	$	53	$	50

The Composition of Teradata Restricted Stock Grants

The following table represents the composition of Teradata restricted share unit grants in 2019:



Shares in thousands	Number of Shares	Weighted- Average Grant Date Fair Value
Service-based shares	3,103	$	44.21
Performance-based shares	531	$	43.65
Total stock grants	3,634	$	44.13

Employee Purchases and Aggregate Cost

Employee purchases and aggregate cost were as follows at December 31:



In millions	2019		2018		2017
Employee share purchases	0.6		0.5		0.6
Aggregate cost	$	20	$	17	$	15

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Pension and Postemployment Benefit Costs

Pension and postemployment benefit costs for the years ended December 31 were as follows:



	2019					2018					2017
In millions	Pension			Postemployment		Pension			Postemployment		Pension			Postemployment
Service cost	$	7		$	11	$	8		$	8	$	9		$	7
Interest cost	3			1		3			1		3			1
Expected return on plan assets	(2		)	—		(2		)	—		(2		)	—
Curtailment charge	—			—		(1		)	—		—			—
Amortization of actuarial loss	1			5		1			4		1			2
Amortization of prior service (credit) cost	—			—		—			—		(1		)	1
Total costs	$	9		$	17	$	9		$	13	$	10		$	11

Accumulated Pension Benefit Obligation

The following tables present the changes in benefit obligations, plan assets, funded status and the reconciliation of the funded status to amounts recognized in the consolidated balance sheets and in accumulated other comprehensive income at December 31:



	Pension						Postemployment
In millions	2019			2018			2019			2018
Change in benefit obligation
Benefit obligation at January 1	$	132		$	136		$	54		$	47
Service cost	7			8			11			8
Interest cost	3			3			1			1
Plan participant contributions	1			1			—			—
Actuarial loss (gain)	24			(5		)	21			12
Benefits paid	(10		)	(2		)	(26		)	(14		)
Curtailment	(1		)	(1		)	—			—
Settlement	(6		)	(4		)	—			—
Currency translation adjustments	(1		)	(4		)	—			—
Benefit obligation at December 31	$	149		$	132		$	61		$	54
Change in plan assets
Fair value of plan assets at January 1	$	68		$	75		$	—		$	—
Actual return on plan assets	10			(2		)	—			—
Company contributions	6			5			—			—
Benefits paid	(10		)	(2		)	—			—
Currency translation adjustments	—			(1		)	—			—
Plan participant contribution	1			1			—			—
Settlements	(6		)	(4		)	—			—
Other	—			(4		)	—			—
Fair value of plan assets at December 31	69			68			—			—
Funded status (underfunded)	$	(80	)	$	(64	)	$	(61	)	$	(54	)
Amounts Recognized in the Consolidated Balance Sheet
Non-current assets	$	6		$	5		$	—		$	—
Current liabilities	(1		)	(1		)	(10		)	(9		)
Non-current liabilities	(85		)	(68		)	(51		)	(45		)
Net amounts recognized	$	(80	)	$	(64	)	$	(61	)	$	(54	)
Amounts Recognized in Accumulated Other Comprehensive (Loss) Income
Unrecognized Net actuarial loss	$	30		$	16		$	61		$	44
Unrecognized Prior service cost	—			—			2			3
Total	$	30		$	16		$	63		$	47

The following table presents pension plans with accumulated benefit obligations in excess of plan assets at December 31:



In millions	2019		2018
Projected benefit obligation	$	119	$	68
Accumulated benefit obligation	$	109	$	61
Fair value of plan assets	$	33	$	—

The following table presents the accumulated pension benefit obligation at December 31:



In millions	2019		2018
Accumulated pension benefit obligation	$	137	$	122

Pre-Tax Net Changes in Projected Benefit Obligations Recognized in Other Comprehensive Income

The following table presents the pre-tax net changes in projected benefit obligations recognized in other comprehensive income:



	Pension						Postemployment
In millions	2019			2018			2019			2018
Actuarial loss (gain) arising during the year	$	15		$	(2	)	$	21		$	12
Amortization of loss included in net periodic benefit cost	(1		)	(1		)	(5		)	(4		)
Recognition of gain due to curtailment	—			1			—			—
Foreign currency exchange	—			(1		)	—			—
Total recognized in other comprehensive (loss) income	$	14		$	(3	)	$	16		$	8

Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost

The following table presents the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2020:



In millions	Pension		Postemployment
Net loss to be recognized in other comprehensive income	$	3	$	7

Weighted-Average Rates and Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit

The weighted-average rates and assumptions used to determine benefit obligations at December 31, and net periodic benefit cost for the years ended December 31, were as follows:



	Pension Benefit Obligations		Pension Benefit Cost
	2019	2018	2019	2018	2017
Discount rate	1.2%	2.2%	2.2%	2.1%	2.0%
Rate of compensation increase	3.0%	3.4%	3.4%	3.3%	3.3%
Expected return on plan assets	N/A	N/A	3.0%	2.8%	2.9%
	Postemployment Benefit Obligations		Postemployment Benefit Cost
	2019	2018	2019	2018	2017
Discount rate	1.8%	2.5%	2.5%	2.6%	3.4%
Rate of compensation increase	3.0%	3.0%	3.0%	3.0%	3.0%
Involuntary turnover rate	3.0%	2.5%	2.5%	2.3%	2.0%

Weighted-Average Asset Allocations, by Category

The weighted-average asset allocations at December 31, by asset category are as follows:



	Actual Asset Allocation as of December 31		Target Asset
	2019	2018	Allocation
Equity securities	34%	32%	32%
Debt securities	43%	51%	49%
Insurance (annuity) contracts	12%	12%	12%
Real estate	10%	3%	4%
Other	1%	2%	3%
Total	100%	100%	100%

Pension Plan Assets at Fair Value

The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2018:



			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	1	$	—	$	1	$	—
Equity funds	22		—		22		—
Bond/fixed-income funds	35		—		35		—
Real estate indirect investments	2		—		2		—
Insurance contracts	8		—		—		8
Total assets at fair value	$	68	$	—	$	60	$	8

The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2019:



			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	1	$	—	$	1	$	—
Equity funds	23		—		23		—
Bond/fixed-income funds	30		—		30		—
Real estate indirect investments	7		—		7		—
Insurance contracts	8		—		—		8
Total assets at fair value	$	69	$	—	$	61	$	8

Changes in Fair Value of the Pension Plan Level 3 Assets

The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2019:



In millions	Insurance Contracts
Balance as of January 1, 2019	$	8
Purchases, sales and settlements, net	—
Balance as of December 31, 2019	$	8

The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2018:



In millions	Insurance Contracts
Balance as of January 1, 2018	$	12
Purchases, sales and settlements, net	(4		)
December 31, 2018	$	8

Estimated Future Benefit Payments

The Company expects to make the following benefit payments, estimated based on the assumptions used to measure the company's benefit obligation at the end of the year, reflecting past and future service from its pension and postemployment plans:



	Pension		Postemployment
In millions	Benefits		Benefits
Year
2020	$	4	$	10
2021	$	6	$	10
2022	$	6	$	10
2023	$	6	$	10
2024	$	7	$	9
2025 - 2029	$	39	$	49

U.S and International Subsidiary Savings Plans

The following table identifies the expense for the United States and International subsidiary savings plans for the years ended December 31:



In millions	2019		2018		2017
U.S. savings plan	$	21	$	22	$	21
International subsidiary savings plans	$	16	$	17	$	17

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Foreign Exchange Contracts

The following table identifies the contract notional amount of the Company’s hedging instruments at December 31:



In millions	2019		2018
Contract notional amount of foreign exchange forward contracts	$	150	$	256
Net contract notional amount of foreign exchange forward contracts	$	41	$	35
Contract notional amount of interest rate swap	$	482	$	500

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements

The Company’s assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at December 31, 2019 and December 31, 2018 were as follows:



			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds at December 31, 2019	$	141	$	141	$	—	$	—
Money market funds at December 31, 2018	$	246	$	246	$	—	$	—
Liabilities
Interest rate swap at December 31, 2019	$	19	$	—	$	19	$	—
Interest rate swap at December 31, 2018	$	7	$	—	$	7	$	—

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Annual Contractual Maturities of Principal on Debt Outstanding

Annual contractual maturities of outstanding principal on the term loan at December 31, 2019, are as follows:



In millions
2020	$	25
2021	44
2022	88
2023	325
Total	$	482

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:




In millions, except weighted average calculations	Classification on the Balance Sheet	2019
Assets
Operating lease assets	Right of use assets - operating lease, net	$	51
Finance lease assets	Property and equipment, net	141
Total lease assets		$	192

Liabilities
Current
Operating	Current portion of operating lease liability	$	20
Finance	Current portion of finance lease liability	55
Noncurrent
Operating	Operating lease liability	38
Finance	Finance lease liability	75
Total lease liabilities		$	188

Weighted-average remaining lease term
Operating leases		3.49 years
Finance leases		2.44 years
Weighted-average discount rate
Operating leases⁽¹⁾		5.00		%
Finance leases		4.58		%

⁽¹⁾ Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.

Schedule of Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of (loss) income for the year ended December 31, 2019:




In millions	2019
Finance lease cost
Depreciation of leased assets	$	25
Interest of lease liabilities	4
Operating lease cost	31
Sub-lease income from real estate properties owned and leased	(6		)
Total lease cost	$	54

The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:




In millions	2019
Operating cash flows for operating leases	$	22
Operating cash flows for finance leases	$	4
Financing cash flows for finance leases	$	33

Schedule of Finance Lease Liability Maturities

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2019:



In millions	Operating Leases			Finance Leases
2020	$	24		$	60
2021	16			54
2022	12			23
2023	7			—
2024	4			—
Thereafter	2			—
Total minimum lease payments	65			137
Less: amount of lease payments representing interest	(7		)	(7		)
Present value of future minimum lease payments	58			130
Less: current obligations under leases	(20		)	(55		)
Long-term lease obligations	$	38		$	75

Schedule of Operating Lease Liability Maturities

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2019:



In millions	Operating Leases			Finance Leases
2020	$	24		$	60
2021	16			54
2022	12			23
2023	7			—
2024	4			—
Thereafter	2			—
Total minimum lease payments	65			137
Less: amount of lease payments representing interest	(7		)	(7		)
Present value of future minimum lease payments	58			130
Less: current obligations under leases	(20		)	(55		)
Long-term lease obligations	$	38		$	75

Schedule of Future Minimum Lease Payments for Capital Leases

The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2018.



In millions	Operating Leases		Finance Leases
2019	$	24	$	19
2020	20		31
2021	12		—
2022	11		—
2023	6		—
Thereafter	2		—
Total minimum lease payments	$	75	$	50

Schedule of Future Minimum Rental Payments for Operating Leases

The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2018.



In millions	Operating Leases		Finance Leases
2019	$	24	$	19
2020	20		31
2021	12		—
2022	11		—
2023	6		—
Thereafter	2		—
Total minimum lease payments	$	75	$	50

Schedule of Operating Lease Income

The following table includes rental revenue for the years ended December 31:



In millions	2019		2018		2017
Rental revenue*	$	76	$	32	$	17

*Rental revenue includes hardware maintenance.

Estimated Rental Revenue Expected to be Recognized in the Future

The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2019:



In millions	Rental Revenue
2020	$	80
2021	75
2022	52
Total	$	207

Segment, Other Supplemental Information and Concentrations (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Regional Segment Revenue and Segment Gross Profit

The following table presents segment revenue and segment gross profit for the Company for the years ended December 31:



In millions	2019		2018		2017
Segment revenue
Americas	$	1,057	$	1,126	$	1,195
EMEA	492		587		567
APAC	350		451		394
Total revenue	1,899		2,164		2,156
Segment gross profit
Americas	626		621		675
EMEA	239		275		276
APAC	148		199		161
Total segment gross profit	1,013		1,095		1,112
Stock-based compensation expense	14		15		13
Acquisition, integration and reorganization-related costs	11		5		4
Amortization of capitalized software costs	33		49		71
Total gross profit	955		1,026		1,024
Selling, general and administrative expenses	618		666		651
Research and development expenses	327		317		305
Total income from operations	$	10	$	43	$	68

Revenue from External Customers by Geographic Areas

The following table presents revenues by geographic area for the years ended December 31:



In millions	2019		2018		2017
United States	$	953	$	1,018	$	1,089
Americas (excluding United States)	104		108		106
EMEA	492		587		567
APAC	350		451		394
Total revenue	$	1,899	$	2,164	$	2,156

Property and Equipment by Geographic Area

The following table presents property and equipment, net by geographic area at December 31:



In millions	2019		2018
United States	$	261	$	226
Americas (excluding United States)	19		18
EMEA	36		26
APAC	34		25
Property and equipment, net	$	350	$	295

Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (AOCI), Net of Tax

The following table provides information on changes in accumulated other comprehensive (loss) income, net of tax ("AOCI"), for the years ended December 31:



In millions	Derivatives			Defined benefit plans			Foreign currency translation adjustments			Total AOCI
Balance as of December 31, 2016	$	—		$	(35	)	$	(54	)	$	(89	)
Other comprehensive (loss) income before reclassifications	—			(5		)	16			11
Amounts reclassified from AOCI	—			4			—			4
Net other comprehensive (loss) income	—			(1		)	16			15
Balance as of December 31, 2017	$	—		$	(36	)	$	(38	)	$	(74	)
Other comprehensive loss before reclassifications	(6		)	(13		)	(13		)	(32		)
Amounts reclassified from AOCI	—			5			—			5
Net other comprehensive loss	(6		)	(8		)	(13		)	(27		)
Balance as of December 31, 2018	$	(6	)	$	(44	)	$	(51	)	$	(101	)
Other comprehensive loss before reclassifications	(9		)	(27		)	(10		)	(46		)
Amounts reclassified from AOCI	—			6			—			6
Net other comprehensive loss	(9		)	(21		)	(10		)	(40		)
Balance as of December 31, 2019	$	(15	)	$	(65	)	$	(61	)	$	(141	)

Impact and Respective Location of AOCI Reclassifications in Consolidated Statements of Income

The following table presents the impact and respective location of AOCI reclassifications in the Consolidated Statements of Income for the years ended December 31:



In millions
AOCI Component	Location	2019			2018			2017
Other Expense	Other Expense	(7		)	(6		)	(5		)
Tax portion	Income tax benefit	1			1			1
Total reclassifications	Net (loss) income	$	(6	)	$	(5	)	$	(4	)

Reorganization and Business Transformation (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

Cash paid in 2018 related to the plan listed above was $11 million. The 2019 activity and the reserves related to the plan are as follows:



In millions	Balance at December 31, 2018		Expense accruals		Cash payments			Balance at December 31, 2019
Employee separation benefits costs related to headquarter transition and business transformation	$	11	$	5	$	(15	)	$	1
Transition support and other exit related costs for the headquarter transition and business transformation	1		3		(4		)	—
Total	$	12	$	8	$	(19	)	$	1

Quarterly Information (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations

The following tables present certain unaudited quarterly financial information for fiscal 2019 and 2018. This supplemental quarterly financial information reflects all normal recurring adjustments, in the opinion of management, necessary to fairly state our results of operations for the periods presented when read in conjunction with the accompanying Consolidated Financial Statements and related Notes.



In millions, except per share amounts	March 31			June 30			September 30		December 31
2019
Total revenues	$	468		$	478		$	459	$	494
Gross profit	$	224		$	236		$	247	$	248
Operating (loss) income	$	(5	)	$	10		$	10	$	(5	)
Net (loss) income	$	(10	)	$	(1	)	$	10	$	(19	)
Net (loss) income per share:
Basic	$	(0.09	)	$	(0.01	)	$	0.09	$	(0.17	)
Diluted	$	(0.09	)	$	(0.01	)	$	0.09	$	(0.17	)
2018
Total revenues	$	506		$	544		$	526	$	588
Gross profit	$	223		$	250		$	264	$	289
Operating (loss) income	$	(4	)	$	10		$	14	$	23
Net (loss) income	$	(7	)	$	4		$	18	$	15
Net (loss) income per share:
Basic	$	(0.06	)	$	0.03		$	0.15	$	0.13
Diluted	$	(0.06	)	$	0.03		$	0.15	$	0.13

Description of Business, Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions		3 Months Ended								12 Months Ended
	Jan. 01, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit		$ (1,143,000,000)				$ (823,000,000)				$ (1,143,000,000)	$ (823,000,000)
Increase in other assets		91,000,000				54,000,000				91,000,000	54,000,000	$ 17,000,000
Income tax expense (benefit)										7,000,000	(3,000,000)	125,000,000
Depreciation expense										104,000,000	67,000,000	$ 55,000,000
Impairment of long-lived assets										$ 0
Antidilutive options to purchase were excluded from computation of diluted earnings per share (in shares)										115.5		127.8
Operating (loss) income		$ (5,000,000)	$ 10,000,000	$ 10,000,000	$ (5,000,000)	$ 23,000,000	$ 14,000,000	$ 10,000,000	$ (4,000,000)	$ 10,000,000	43,000,000	$ 68,000,000
Other expenses										$ 9,000,000	$ 8,000,000	$ 6,000,000
Internal-Use Software
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Period capitalized on a straight-line basis when the asset is substantially ready for use										3 years
Minimum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Contract term										1 month
Fees payment term (in days)										30 days
Maximum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Contract term										5 years
Fees payment term (in days)										90 days
Equipment \| Minimum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)										3 years
Equipment \| Maximum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)										5 years
Building \| Minimum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)										25 years
Building \| Maximum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)										45 years
Employee Stock Option
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Antidilutive options to purchase were excluded from computation of diluted earnings per share (in shares)										2.0	2.6	2.7
Accounting Standards Update 2014-09
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit	$ 19,000,000
Increase in other assets	17,000,000
Income tax expense (benefit)	10,000,000
Deferred Tax Liability \| Accounting Standards Update 2014-09
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit	26,000,000
Unbilled contract receivables	$ 20,000,000

Description of Business, Basis of Presentation and Significant Accounting Policies - Activities Relating to Capitalized Software (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Movement in Capitalized Computer Software, Net [Roll Forward]
Beginning balance at January 1	$ 72
Amortization	(33)	$ (49)	$ (71)
Ending balance at December 31	36	72
Internal-Use Software
Movement in Capitalized Computer Software, Net [Roll Forward]
Beginning balance at January 1	15	16	13
Capitalized	5	6	9
Amortization	(7)	(7)	(6)
Ending balance at December 31	13	15	16
External-Use Software
Movement in Capitalized Computer Software, Net [Roll Forward]
Beginning balance at January 1	57	105	174
Capitalized	0	0	0
Amortization	(34)	(48)	(69)
Ending balance at December 31	$ 23	$ 57	$ 105

Description of Business, Basis of Presentation and Significant Accounting Policies - Aggregate Amortization Expense for Internal and External-Use Software (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Internal-use software amortization expense
Acquired Intangible Assets Amortization [Line Items]
Actual 2019	$ 7
2020	7
2021	6
2022	6
2023	6
2024	6
External-use software amortization expense
Acquired Intangible Assets Amortization [Line Items]
Actual 2019	34
2020	23
2021	0
2022	0
2023	0
2024	$ 0

Description of Business, Basis of Presentation and Significant Accounting Policies - Components of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract]
Net (loss) income attributable to common stockholders	$ (19)	$ 10	$ (1)	$ (10)	$ 15	$ 18	$ 4	$ (7)	$ (20)	$ 30	$ (67)
Weighted average outstanding shares of common stock (in shares)									114.2	119.2	125.8
Dilutive effect of employee stock options, restricted shares and other stock awards (in shares)									0.0	2.0	0.0
Common stock and common stock equivalents (in shares)									114.2	121.2	125.8
(Loss) earnings per share:
Basic (in usd per share)	$ (0.17)	$ 0.09	$ (0.01)	$ (0.09)	$ 0.13	$ 0.15	$ 0.03	$ (0.06)	$ (0.18)	$ 0.25	$ (0.53)
Diluted (in usd per share)	$ (0.17)	$ 0.09	$ (0.01)	$ (0.09)	$ 0.13	$ 0.15	$ 0.03	$ (0.06)	$ (0.18)	$ 0.25	$ (0.53)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Supplemental Financial Information (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Accounts receivable
Trade	$ 407	$ 590
Other	8	12
Accounts receivable, gross	415	602
Less: allowance for doubtful accounts	(17)	(14)
Total accounts receivable, net	398	588
Inventories
Finished goods	19	16
Service parts	12	12
Total inventories	31	28
Property and equipment
Land	8	8
Buildings and improvements	100	84
Finance lease assets	167
Finance lease assets		52
Machinery and other equipment	515	495
Property and equipment, gross	790
Property and equipment, gross		639
Less: accumulated depreciation	(440)
Less: accumulated depreciation		(344)
Total property and equipment, net	350
Total property and equipment, net		295
Other current liabilities
Sales and value-added taxes	31	34
Pension and other postemployment plan liabilities	11	10
Other	49	74
Total other current liabilities	91	118
Deferred revenue
Deferred revenue, current	472	490
Long-term deferred revenue	61	105
Total deferred revenue	533	595
Other long-term liabilities
Transition tax	92	102
Uncertain tax positions	19	17
Other	27	8
Total other long-term liabilities	$ 138	$ 127

Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 494	$ 459	$ 478	$ 468	$ 588	$ 526	$ 544	$ 506	$ 1,899	$ 2,164	$ 2,156
Americas
Disaggregation of Revenue [Line Items]
Revenue									1,057
EMEA
Disaggregation of Revenue [Line Items]
Revenue									492	587	567
APAC
Disaggregation of Revenue [Line Items]
Revenue									350
Recurring \| Americas
Disaggregation of Revenue [Line Items]
Revenue									873
Recurring \| EMEA
Disaggregation of Revenue [Line Items]
Revenue									305
Recurring \| APAC
Disaggregation of Revenue [Line Items]
Revenue									185
Perpetual software licenses and hardware \| Americas
Disaggregation of Revenue [Line Items]
Revenue									38
Perpetual software licenses and hardware \| EMEA
Disaggregation of Revenue [Line Items]
Revenue									43
Perpetual software licenses and hardware \| APAC
Disaggregation of Revenue [Line Items]
Revenue									25
Consulting services \| Americas
Disaggregation of Revenue [Line Items]
Revenue									146
Consulting services \| EMEA
Disaggregation of Revenue [Line Items]
Revenue									144
Consulting services \| APAC
Disaggregation of Revenue [Line Items]
Revenue									$ 140
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenue										2,164	2,156
Calculated under Revenue Guidance in Effect before Topic 606 \| Americas
Disaggregation of Revenue [Line Items]
Revenue										1,126	1,195
Calculated under Revenue Guidance in Effect before Topic 606 \| EMEA
Disaggregation of Revenue [Line Items]
Revenue										587	567
Calculated under Revenue Guidance in Effect before Topic 606 \| APAC
Disaggregation of Revenue [Line Items]
Revenue										451	394
Calculated under Revenue Guidance in Effect before Topic 606 \| Recurring \| Americas
Disaggregation of Revenue [Line Items]
Revenue										801	739
Calculated under Revenue Guidance in Effect before Topic 606 \| Recurring \| EMEA
Disaggregation of Revenue [Line Items]
Revenue										282	248
Calculated under Revenue Guidance in Effect before Topic 606 \| Recurring \| APAC
Disaggregation of Revenue [Line Items]
Revenue										171	158
Calculated under Revenue Guidance in Effect before Topic 606 \| Perpetual software licenses and hardware \| Americas
Disaggregation of Revenue [Line Items]
Revenue										127	234
Calculated under Revenue Guidance in Effect before Topic 606 \| Perpetual software licenses and hardware \| EMEA
Disaggregation of Revenue [Line Items]
Revenue										112	133
Calculated under Revenue Guidance in Effect before Topic 606 \| Perpetual software licenses and hardware \| APAC
Disaggregation of Revenue [Line Items]
Revenue										101	62
Calculated under Revenue Guidance in Effect before Topic 606 \| Consulting services \| Americas
Disaggregation of Revenue [Line Items]
Revenue										198	222
Calculated under Revenue Guidance in Effect before Topic 606 \| Consulting services \| EMEA
Disaggregation of Revenue [Line Items]
Revenue										193	186
Calculated under Revenue Guidance in Effect before Topic 606 \| Consulting services \| APAC
Disaggregation of Revenue [Line Items]
Revenue										$ 179	$ 174

Revenue from Contracts with Customers - Contract Receivables, Assets, and Current Deferred Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 398	$ 588
Contract assets	8	14
Deferred revenue, current	472	490
Long-term deferred revenue	61	$ 105
Revenue recognized from amounts included in deferred revenue	$ 470

Revenue from Contracts with Customers - Transaction Price Allocated to Unsatisfied Obligations (Details) $ in Millions	Dec. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining unsatisfied obligations	$ 2,732
Amount of of customer only general cancellation	1,923
Amount of non-cancelable contracts	312
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Remaining unsatisfied obligations	$ 1,377
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining unsatisfied obligations	$ 1,355
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period

Contract Costs (Details) - USD ($) $ in Millions	12 Months Ended
Contract Costs (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Capitalized contract cost, amortization period	4 years
Capitalized Contract Cost, Net [Roll Forward]
Capitalized contract costs, beginning balance	$ 54	$ 17
Capitalized	57	44
Amortization	(20)	(7)
Capitalized contract costs, ending balance	$ 91	$ 54

Goodwill - Goodwill by Operating Segment (Detail)	3 Months Ended	12 Months Ended
Goodwill - Goodwill by Operating Segment (Detail)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($) reporting_unit
Goodwill
Balance at December 31, 2018		$ 395,000,000
Reassignment of Goodwill		0
Currency Translation Adjustments		1,000,000
Balance at December 31, 2019	$ 396,000,000	$ 396,000,000
Impairment of goodwill and acquired intangibles	0
Number of reporting units \| reporting_unit		3
Americas
Goodwill
Balance at December 31, 2018		$ 253,000,000
Reassignment of Goodwill		0
Currency Translation Adjustments		0
Balance at December 31, 2019	253,000,000	253,000,000
International
Goodwill
Balance at December 31, 2018		142,000,000
Reassignment of Goodwill		(142,000,000)
Currency Translation Adjustments		0
Balance at December 31, 2019	0	0
EMEA
Goodwill
Balance at December 31, 2018		0
Reassignment of Goodwill		88,000,000
Currency Translation Adjustments		0
Balance at December 31, 2019	88,000,000	88,000,000
APAC
Goodwill
Balance at December 31, 2018		0
Reassignment of Goodwill		54,000,000
Currency Translation Adjustments		1,000,000
Balance at December 31, 2019	$ 55,000,000	$ 55,000,000

Income Taxes - Income Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
United States	$ (85)	$ (79)	$ (26)
Foreign	72	106	84
Total (loss) income before income taxes	$ (13)	$ 27	$ 58

Income Taxes - Income Tax Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current
Federal	$ (3)	$ (10)	$ 132
State and local	0	6	2
Foreign	13	19	25
Deferred
Federal	(10)	(20)	(22)
State and local	(1)	(4)	(4)
Foreign	8	6	(8)
Total income tax expense (benefit)	$ 7	$ (3)	$ 125
Effective income tax rate	(53.80%)	(11.10%)	215.50%

Income Taxes - Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense at the U.S. federal tax rate	21.00%	21.00%	35.00%
Foreign income tax differential	(49.20%)	2.10%	(22.60%)
U.S. tax on foreign earnings	(8.40%)	2.00%	4.30%
State and local income taxes	58.20%	(25.00%)	(11.00%)
U.S. permanent book/tax differences	(17.00%)	(2.70%)	(1.50%)
U.S. research and development tax credits	68.50%	(29.50%)	(11.20%)
Change in valuation allowance	(49.10%)	27.70%	10.00%
U.S. manufacturing deduction permanent difference	0.00%	0.00%	(8.00%)
Tax impact of equity compensation	(49.30%)	(1.40%)	0.70%
Deferred tax impact from U.S. rate change from Tax Reform	0.00%	0.00%	(27.00%)
Tax impact of U.S. Tax Reform/Transition Tax	0	(0.239)	2.500
Tax Impact of uncertain tax positions	(24.60%)	20.20%	(3.60%)
Other, net	(3.90%)	(1.60%)	0.40%
Effective income tax rate	(53.80%)	(11.10%)	215.50%

Income Taxes - Additional information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2019	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Discrete income tax expense	$ 4
Tax from equity compensation			$ 3
Income tax expense from GILTI			3
Income tax expense (benefit)			7	$ (3)	$ 125
Loss before income taxes			$ 13	$ (27)	$ (58)
Effective income tax rate			53.80%	11.10%	(215.50%)
Tax Cuts and Jobs Act, change in tax rate, income tax expense (benefit)		$ 126		$ (6)
Tax expense, issuance of new US Treasury regulations			$ 3	1
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, provisional liability		145	1		$ 145
Cumulative foreign earnings		1,300
Tax Cuts and Jobs Act of 2017, deferred tax asset, existing income tax expense (benefit)		19
Net operating loss and tax credit carryforwards			80
Valuation allowance			41
Tax credit carryforward, FIN 48 reserve			15
Tax liability related to uncertain tax positions		$ 28	37	34	$ 28
Uncertain tax positions			19	$ 17
Uncertain tax positions related to business acquisitions not recognized on balance sheet			18
Uncertain tax positions recognized as current liability on balance sheet			37
Interest accruals related to uncertain tax liabilities			2
United States And Certain Foreign Jurisdictions
Income Taxes
Net operating loss carryforwards in the United States and certain foreign jurisdictions			11
Domestic Tax Authority
Income Taxes
Net operating loss carryforwards in the United States and certain foreign jurisdictions			3
Research Tax Credit Carryforward \| Domestic Tax Authority
Income Taxes
Research and development tax credit carryforwards			10
Research Tax Credit Carryforward \| State and Local Jurisdiction
Income Taxes
Research and development tax credit carryforwards			$ 56

Income Taxes - Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred income tax assets
Employee pensions and other liabilities	$ 63	$ 49
Other balance sheet reserves and allowances	18	18
Operating lease liabilities	14	0
Tax loss and credit carryforwards	80	63
Deferred revenue	12	20
Total deferred income tax assets	187	150
Valuation allowance	(45)	(39)
Net deferred income tax assets	142	111
Deferred income tax liabilities
Intangibles and capitalized software	8	17
Right of use assets - operating lease	13	0
Property and equipment	12	11
Other	28	19
Total deferred income tax liabilities	61	47
Total net deferred income tax assets	$ 81	$ 64

Income Taxes - Liability Related to Uncertain Tax Positions (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at January 1	$ 34	$ 28
Gross increases for prior period tax positions	4	3
Gross increases for current period tax positions	5	8
Decreases due to the lapse of applicable statute of limitations	(6)	(1)
Decreases relating to settlements with taxing authorities	0	(4)
Balance at December 31	$ 37	$ 34

Employee Stock-based Compensation Plans - Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Stock options	$ 3	$ 6	$ 9
Restricted shares	77	56	56
Employee share repurchase program	3	3	3
Total stock-based compensation before income taxes	83	65	68
Tax benefit	(10)	(11)	(21)
Total stock-based compensation, net of tax	$ 73	$ 54	$ 47

Employee Stock-based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized to be issued under the Teradata SIP (in shares)	17,500,000
Weighted-average fair value of options granted for Teradata equity awards (in usd per share)	$ 0	$ 0	$ 11.08
Employee Stock Purchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase program discount from average market price (as a percentage)	15.00%
Percentage of authorized payroll deductions for common stock purchases by employees (as a percentage)	10.00%
Shares authorized to be issued under the Employee Stock Purchase Program (in shares)	7,000,000
Remaining shares authorized to be issued under the Employee Stock Purchase Program (in shares)	2,100,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option, term (in years)	10 years
Vesting period (in years)	4 years
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to unvested stock grants	$ 2
Cost expected to be recognized over a weighted-average period (in years)	6 months
Service-Based Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Performance Based Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Performance Based Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to unvested stock grants	$ 137
Cost expected to be recognized over a weighted-average period (in years)	1 year 1 month 6 days
Special 2016 PSRSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period	3 years
Special 2016 PSRSU \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance share percentage	0.00%
Special 2016 PSRSU \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance share percentage	200.00%

Employee Stock-based Compensation Plans - Fair Value of Each Option Award on the Grant Date Using the Black-Scholes Option-Pricing Model (Detail)	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Dividend yield (percentage)	0.00%
Risk-free interest rate (percentage)	1.99%
Expected volatility (percentage)	35.00%
Expected term (years)	6 years 3 months 18 days

Employee Stock-based Compensation Plans - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Shares Under Option
Outstanding at beginning of period (in shares)	4,148
Granted (in shares)	0
Exercised (in shares)	(916)
Canceled (in shares)	(660)
Forfeited (in shares)	(68)
Outstanding at end of period (in shares)	2,504	4,148
Fully vested and expected to vest at period end (in shares)	2,504
Exercisable at period end (in shares)	2,352
Weighted- Average Exercise Price per Share
Outstanding at beginning of period (in usd per share)	$ 40.34
Granted (in usd per share)	0
Exercised (in usd per share)	35.50
Canceled (in usd per share)	47.71
Forfeited (in usd per share)	28.78
Outstanding at end of period (in usd per share)	40.49	$ 40.34
Fully vested and expected to vest at period end (in usd per share)	40.49
Exercisable at period end (in usd per share)	$ 41.28
Weighted- Average Remaining Contractual Term (in years)
Weighted-average remaining contractual term (in years)	3 years 8 months 12 days	3 years 9 months 18 days
Fully vested and expected to vest at period end (in years)	3 years 8 months 12 days
Exercisable at period end (in years)	3 years 6 months
Aggregate Intrinsic Value (in millions)
Aggregate Intrinsic Value	$ 0	$ 15
Fully vested and expected to vest at period end	0
Exercisable at period end	$ 0

Employee Stock-based Compensation Plans - Total Intrinsic Value of Options Exercised and The Cash Received (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Intrinsic value of options exercised	$ 9	$ 15	$ 6
Cash received from option exercises	32	21	19
Tax benefit realized from option exercises	$ 2	$ 3	$ 2

Employee Stock-based Compensation Plans - Restricted Stock and Restricted Stock Unit Activity (Detail) shares in Thousands	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Number of Shares
Unvested shares at period start (in shares) \| shares	3,231
Granted (in shares) \| shares	3,634
Vested (in shares) \| shares	(1,218)
Forfeited/canceled (in shares) \| shares	(478)
Unvested shares at period end (in shares) \| shares	5,169
Weighted- Average Grant Date Fair Value per Share
Unvested shares at period start (in usd per share) \| $ / shares	$ 34.27
Granted (in usd per share) \| $ / shares	44.13
Vested (in usd per share) \| $ / shares	33.52
Forfeited/canceled (in usd per share) \| $ / shares	38.57
Unvested shares at period end (in usd per share) \| $ / shares	$ 40.95

Employee Stock-based Compensation Plans - Weighted-Average Fair Value and Total Fair Value of Shares Vested (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of restricted shares units granted (in usd per share)	$ 44.13
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of restricted shares units granted (in usd per share)	$ 44.13	$ 37.98	$ 34.88
Total fair value of shares vested (in millions)	$ 41	$ 53	$ 50

Employee Stock-based Compensation Plans - Composition of Teradata Restricted Stock Grants (Detail) shares in Thousands	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares \| shares	3,634
Weighted-average fair value of restricted shares units granted (in usd per share) \| $ / shares	$ 44.13
Service-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares \| shares	3,103
Weighted-average fair value of restricted shares units granted (in usd per share) \| $ / shares	$ 44.21
Performance-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares \| shares	531
Weighted-average fair value of restricted shares units granted (in usd per share) \| $ / shares	$ 43.65

Employee Stock-based Compensation Plans - Employee Purchases and Aggregate Cost (Details) - Employee Stock Puchase Program - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Equity, Class of Treasury Stock [Line Items]
Employee share purchases (in shares)	0.6	0.5	0.6
Aggregate cost	$ 20	$ 17	$ 15

Employee Benefit Plans - Schedule of Pension and Postemployment Benefit Costs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 7	$ 8	$ 9
Interest cost	3	3	3
Expected return on plan assets	(2)	(2)	(2)
Curtailment charge	0	(1)	0
Amortization of actuarial loss	1	1	1
Amortization of prior service (credit) cost	0	0	(1)
Total costs	9	9	10
Postemployment
Defined Benefit Plan Disclosure [Line Items]
Service cost	11	8	7
Interest cost	1	1	1
Expected return on plan assets	0	0	0
Curtailment charge	0	0	0
Amortization of actuarial loss	5	4	2
Amortization of prior service (credit) cost	0	0	1
Total costs	$ 17	$ 13	$ 11

Employee Benefit Plans - Changes in Benefit Obligations Plan Assets Funded Status and Reconciliation of Funded Status to Amounts Recognized in Consolidated Balance Sheets and in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension
Change in benefit obligation
Benefit obligation at January 1	$ 132	$ 136
Service cost	7	8	$ 9
Interest cost	3	3	3
Plan participant contributions	1	1
Actuarial loss (gain)	24	(5)
Benefits paid	(10)	(2)
Curtailment	(1)	(1)
Settlement	(6)	(4)
Currency translation adjustments	(1)	(4)
Benefit obligation at December 31	149	132	136
Change in plan assets
Fair value of plan assets at January 1	68	75
Actual return on plan assets	10	(2)
Company contributions	6	5
Benefits paid	(10)	(2)
Currency translation adjustments	0	(1)
Plan participant contribution	1	1
Settlements	(6)	(4)
Other	0	(4)
Fair value of plan assets at December 31	69	68	75
Funded status (underfunded)	(80)	(64)
Amounts Recognized in the Consolidated Balance Sheet
Non-current assets	6	5
Current liabilities	(1)	(1)
Non-current liabilities	(85)	(68)
Net amounts recognized	(80)	(64)
Amounts Recognized in Accumulated Other Comprehensive (Loss) Income
Unrecognized Net actuarial loss	30	16
Unrecognized Prior service cost	0	0
Total	30	16
Postemployment
Change in benefit obligation
Benefit obligation at January 1	54	47
Service cost	11	8	7
Interest cost	1	1	1
Plan participant contributions	0	0
Actuarial loss (gain)	21	12
Benefits paid	(26)	(14)
Curtailment	0	0
Settlement	0	0
Currency translation adjustments	0	0
Benefit obligation at December 31	61	54	$ 47
Change in plan assets
Fair value of plan assets at January 1	0
Actual return on plan assets	0	0
Company contributions	0	0
Benefits paid	0	0
Currency translation adjustments	0	0
Plan participant contribution	0	0
Settlements	0	0
Other	0	0
Fair value of plan assets at December 31	0	0
Funded status (underfunded)	(61)	(54)
Amounts Recognized in the Consolidated Balance Sheet
Non-current assets	0	0
Amounts Recognized in the Consolidated Balance Sheet
Current liabilities	(10)	(9)
Non-current liabilities	(51)	(45)
Net amounts recognized	(61)	(54)
Amounts Recognized in Accumulated Other Comprehensive (Loss) Income
Unrecognized Net actuarial loss	61	44
Unrecognized Prior service cost	2	3
Total	$ 63	$ 47

Employee Benefit Plans - Accumulated Pension Benefit Obligation (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accumulated pension benefit obligation	$ 137	$ 122

Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 119	$ 68
Accumulated benefit obligation	109	61
Fair value of plan assets	$ 33	$ 0

Employee Benefit Plans - Pre-tax Net Changes in Projected Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension
Defined Benefit Plan Disclosure [Line Items]
Actuarial loss (gain) arising during the year	$ 15	$ (2)
Amortization of loss included in net periodic benefit cost	(1)	(1)	$ (1)
Recognition of gain due to curtailment	0	1
Foreign currency exchange	0	(1)
Total recognized in other comprehensive (loss) income	14	(3)
Postemployment
Defined Benefit Plan Disclosure [Line Items]
Actuarial loss (gain) arising during the year	21	12
Amortization of loss included in net periodic benefit cost	(5)	(4)	$ (2)
Recognition of gain due to curtailment	0	0
Foreign currency exchange	0	0
Total recognized in other comprehensive (loss) income	$ 16	$ 8

Employee Benefit Plans - Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Pension
Defined Benefit Plan Disclosure [Line Items]
Net loss to be recognized in other comprehensive income	$ 3
Postemployment
Defined Benefit Plan Disclosure [Line Items]
Net loss to be recognized in other comprehensive income	$ 7

Employee Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension
Pension Benefit Obligations
Discount rate (percentage)	1.20%	2.20%
Rate of compensation increase (percentage)	3.00%	3.40%
Pension Benefit Cost
Discount rate (percentage)	2.20%	2.10%	2.00%
Rate of compensation increase (percentage)	3.40%	3.30%	3.30%
Expected return on plan assets (percentage)	3.00%	2.80%	2.90%
Postemployment
Pension Benefit Obligations
Discount rate (percentage)	1.80%	2.50%
Rate of compensation increase (percentage)	3.00%	3.00%
Involuntary turnover rate (percentage)	3.00%	2.50%
Pension Benefit Cost
Discount rate (percentage)	2.50%	2.60%	3.40%
Rate of compensation increase (percentage)	3.00%	3.00%	3.00%
Expected return on plan assets (percentage)	2.50%	2.30%	2.00%

Employee Benefit Plans - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Retirement Benefits [Abstract]
Amount of gains and losses to be amortized to the extent that they exceed 10% of the higher of the market-related value or the projected benefit obligation of each respective plan	10.00%
Estimated benefits in the next fiscal year	$ 3

Employee Benefit Plans - Weighted Average Asset Allocations by Asset Category (Detail)	Dec. 31, 2019	Dec. 31, 2018
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]
Actual Asset Allocation as of December 31 (percentage)	100.00%	100.00%
Target Asset (percentage)	100.00%
Equity securities
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]
Actual Asset Allocation as of December 31 (percentage)	34.00%	32.00%
Target Asset (percentage)	32.00%
Debt securities
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]
Actual Asset Allocation as of December 31 (percentage)	43.00%	51.00%
Target Asset (percentage)	49.00%
Insurance (annuity) contracts
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]
Actual Asset Allocation as of December 31 (percentage)	12.00%	12.00%
Target Asset (percentage)	12.00%
Real estate
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]
Actual Asset Allocation as of December 31 (percentage)	10.00%	3.00%
Target Asset (percentage)	4.00%
Other
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]
Actual Asset Allocation as of December 31 (percentage)	1.00%	2.00%
Target Asset (percentage)	3.00%

Employee Benefit Plans - Schedule of Pension Plan Assets at Fair Value (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	$ 8	$ 8	$ 12
Recurring
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	69	68
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	61	60
Recurring \| Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	8	8
Recurring \| Money market funds
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	1	1
Recurring \| Money market funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Money market funds \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	1	1
Recurring \| Money market funds \| Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Equity funds
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	23	22
Recurring \| Equity funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Equity funds \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	23	22
Recurring \| Equity funds \| Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Bond/fixed-income funds
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	30	35
Recurring \| Bond/fixed-income funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Bond/fixed-income funds \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	30	35
Recurring \| Bond/fixed-income funds \| Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Real estate indirect investments
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	7	2
Recurring \| Real estate indirect investments \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Real estate indirect investments \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	7	2
Recurring \| Real estate indirect investments \| Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	8	8
Recurring \| Insurance contracts \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Insurance contracts \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Recurring \| Insurance contracts \| Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	$ 8	$ 8

Employee Benefit Plans - Summary of Changes in Fair Value of Pension Plan Level 3 Assets (Detail) - Insurance contracts - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Fair value of plan assets at January 1	$ 8	$ 12
Purchases, sales and settlements, net	0	(4)
Fair value of plan assets at December 31	$ 8	$ 8

Employee Benefit Plans - Estimated Future Benefit Payments (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Pension
Defined Benefit Plan Disclosure [Line Items]
2020	$ 4
2021	6
2022	6
2023	6
2024	7
2025 - 2029	39
Post Employment Benefit
Defined Benefit Plan Disclosure [Line Items]
2020	10
2021	10
2022	10
2023	10
2024	9
2025 - 2029	$ 49

Employee Benefit Plans - U.S and International Subsidiary Savings Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
U.S. savings plan
Defined Benefit Plan Disclosure [Line Items]
Expense for the U.S. and International subsidiary savings plan	$ 21	$ 22	$ 21
International subsidiary savings plans
Defined Benefit Plan Disclosure [Line Items]
Expense for the U.S. and International subsidiary savings plan	$ 16	$ 17	$ 17

Derivative Instruments and Hedging Activities - Schedule of Foreign Exchange Contracts (Detail) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
Derivative
Net contract notional amount of foreign exchange forward contracts		$ 41	$ 35
Interest Rate Swap
Derivative
Interest rate swap, agreement period	5 years
Notional amount of contracts	$ 500	482	500
Foreign Exchange Contract
Derivative
Notional amount of contracts		$ 150	$ 256

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Maximum future payment obligation of the guaranteed value and associated liabilities	$ 3

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements (Detail) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds		$ 141	$ 246
Quoted Price as in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds		141	246
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds		0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Money market funds		0	0
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest rate swap, agreement period	5 years
Notional amount of contracts	$ 500	482	500
Interest rate swap		19	7
Interest Rate Swap \| Quoted Price as in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest rate swap		0	0
Interest Rate Swap \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest rate swap		19	7
Interest Rate Swap \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Interest rate swap		$ 0	$ 0

Debt - Additional Information (Detail)	1 Months Ended	12 Months Ended
Debt - Additional Information (Detail)	Jun. 30, 2018 USD ($) extension payment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument
Number of extensions \| extension	2
Extension period	1 year
Borrowings outstanding		$ 0
Revolving Credit Facility \| Revolving Credit Facility Ending In June 2023
Debt Instrument
Debt term	5 years
Credit facility maximum borrowing capacity	$ 400,000,000		$ 400,000,000
Additional borrowings capacity under Revolving Credit Agreement	200,000,000
Line of Credit \| Revolving Credit Facility \| Revolving Credit Facility Ending In June 2023
Debt Instrument
Unamortized debt issuance expense		$ 1,000,000
Revolving credit agreement period (in years)		5 years
Borrowings outstanding			0
Term Loan
Debt Instrument
Debt term		5 years
Unamortized debt issuance expense		$ 2,000,000
Amount of debt extinguished	$ 525,000,000
Term Loan \| Senior Unsecured term loan Issued June 2018
Debt Instrument
Revolving credit agreement period (in years)	5 years
Debt instrument, face amount	$ 500,000,000
Long-term debt		$ 482,000,000	$ 500,000,000
Fixed rate on term loan (percentage)		2.86%
All-in fixed rate (percentage)		4.36%	4.36%
First eight payments \| Term Loan \| Senior Unsecured term loan Issued June 2018
Debt Instrument
Interest rate (percentage)	1.25%
Number of payments \| payment	8
Next four payments \| Term Loan \| Senior Unsecured term loan Issued June 2018
Debt Instrument
Interest rate (percentage)	2.50%
Number of payments \| payment	4
Next three payments \| Term Loan \| Senior Unsecured term loan Issued June 2018
Debt Instrument
Interest rate (percentage)	5.00%
Number of payments \| payment	3

Debt - Annual Contractual Maturities of Principal on Debt Outstanding (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 25
2021	44
2022	88
2023	325
Total	$ 482

Leases - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Lease assets	$ 192
Lease liabilities	$ 188
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	2 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	10 years
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Lease assets		$ 68
Lease liabilities		$ 66

Leases - Lease-related Assets and Liabilities recorded on the Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Assets
Operating lease assets	$ 51
Finance lease assets	141
Total lease assets	192
Liabilities
Current portion of operating lease liability	20
Current portion of finance lease liability	55	$ 17
Noncurrent portion of operating lease liability	38
Noncurrent portion of finance lease liability	75	$ 30
Long-term finance lease obligations	$ 188
Weighted-average remaining lease term
Weighted-average remaining lease term, finance leases	3 years 5 months 26 days
Weighted-average remaining lease term, operating leases	2 years 5 months 8 days
Weighted-average discount rate
Weighted-average discount rate, operating leases (percentage)	5.00%
Weighted-average discount rate, finance leases (percentage)	4.58%

Leases - Lease Cost (Details) $ in Millions	12 Months Ended
Leases - Lease Cost (Details) $ in Millions	Dec. 31, 2019 USD ($)
Leases [Abstract]
Finance lease cost, depreciation of leased assets	$ 25
Finance lease cost, interest of lease liabilities	4
Operating lease cost	31
Sub-lease income from real estate properties owned and leased	(6)
Total lease cost	$ 54

Leases - Other Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Operating cash flows for operating leases	$ 22
Operating cash flows for operating leases	4
Financing cash flows for finance leases	$ 33	$ 5	$ 0

Leases - Undiscounted Cash Flows under ASC 842 (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Operating Leases
2020	$ 24
2020	16
2021	12
2022	7
2023	4
Thereafter	2
Total minimum lease payments	65
Less: amount of lease payments representing interest	(7)
Present value of future minimum lease payments	58
Less: current obligations under leases	(20)
Long-term lease obligations	38
Finance Lease, Liability, Payment, Due [Abstract]
2020	60
2020	54
2021	23
2022	0
2023	0
Thereafter	0
Total minimum lease payments	137
Less: amount of lease payments representing interest	(7)
Present value of future minimum lease payments	130
Less: current obligations under leases	(55)	$ (17)
Long-term lease obligations	$ 75	$ 30

Leases - Undiscounted Cash Flows under ASC 840 (Details) $ in Millions	Dec. 31, 2018 USD ($)
Operating Leases
2019	$ 24
2021	20
2022	12
2023	11
2024	6
Thereafter	2
Total minimum lease payments	75
Finance Leases
2019	19
2020	31
2021	0
2022	0
2023	0
Thereafter	0
Total	$ 50

Leases - Lessor Rental Revenue for Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Rental revenue	$ 76	$ 32	$ 17

Leases - Estimated Rental Revenue Expected to be Recognized in the Future (Details) $ in Millions	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 80
2021	75
2022	52
Total	$ 207

Segment, Other Supplemental Information and Concentrations - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment, Other Supplemental Information and Concentrations - Regional Segment Revenue and Gross Margin for Company (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenue	$ 494	$ 459	$ 478	$ 468	$ 588	$ 526	$ 544	$ 506	$ 1,899	$ 2,164	$ 2,156
Gross profit	248	247	236	224	289	264	250	223	955	1,026	1,024
Total segment gross profit									1,013	1,095	1,112
Stock-based compensation expense									14	15	13
Acquisition, integration and reorganization-related costs									11	5	4
Amortization of capitalized software costs									33	49	71
Selling, general and administrative expenses									618	666	651
Research and development expenses									327	317	305
Income from operations	$ (5)	$ 10	$ 10	$ (5)	$ 23	$ 14	$ 10	$ (4)	10	43	68
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Revenue									1,057	1,126	1,195
Gross profit									626	621	675
Operating Segments \| EMEA
Segment Reporting Information [Line Items]
Revenue									492	587	567
Gross profit									239	275	276
Operating Segments \| APAC
Segment Reporting Information [Line Items]
Revenue									350	451	394
Gross profit									$ 148	$ 199	$ 161

Segment, Other Supplemental Information and Concentrations - Schedule of Revenue by Geographical Area (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 494	$ 459	$ 478	$ 468	$ 588	$ 526	$ 544	$ 506	$ 1,899	$ 2,164	$ 2,156
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									953	1,018	1,089
Americas (excluding United States)
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									104	108	106
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 492	$ 587	$ 567

Segment, Other Supplemental Information and Concentrations - Schedule of Property and Equipment by Geographic Area (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Schedule Of Identifiable Assets By Segment [Line Items]
Property and equipment, net	$ 350	$ 295
United States
Schedule Of Identifiable Assets By Segment [Line Items]
Property and equipment, net	261	226
Americas (excluding United States)
Schedule Of Identifiable Assets By Segment [Line Items]
Property and equipment, net	19	18
EMEA
Schedule Of Identifiable Assets By Segment [Line Items]
Property and equipment, net	$ 36	$ 26

Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive Income (AOCI) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 495	$ 668	$ 971
Other comprehensive (loss) income	(40)	(27)	15
Ending balance	262	495	668
Derivatives
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(6)	0	0
Other comprehensive loss before reclassifications	(9)	(6)	0
Amounts reclassified from AOCI	0	0	0
Other comprehensive (loss) income	(9)	(6)	0
Ending balance	(15)	(6)	0
Defined benefit plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(44)	(36)	(35)
Other comprehensive loss before reclassifications	(27)	(13)	(5)
Amounts reclassified from AOCI	6	5	4
Other comprehensive (loss) income	(21)	(8)	(1)
Ending balance	(65)	(44)	(36)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(51)	(38)	(54)
Other comprehensive loss before reclassifications	(10)	(13)	16
Amounts reclassified from AOCI	0	0	0
Other comprehensive (loss) income	(10)	(13)	16
Ending balance	(61)	(51)	(38)
Total AOCI
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(101)	(74)	(89)
Other comprehensive loss before reclassifications	(46)	(32)	11
Amounts reclassified from AOCI	6	5	4
Other comprehensive (loss) income	(40)	(27)	15
Ending balance	$ (141)	$ (101)	$ (74)

Accumulated Other Comprehensive (Loss) Income - Impact and Location of AOCI Reclassifications in Consolidated Statements of Income (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Other Expense									$ (9)	$ (8)	$ (6)
Income tax benefit									(7)	3	(125)
Net (loss) income	$ (19)	$ 10	$ (1)	$ (10)	$ 15	$ 18	$ 4	$ (7)	(20)	30	(67)
Amount Reclassified from of Accumulated Other Comprehensive Income
Defined Benefit Plan Disclosure [Line Items]
Other Expense									(7)	(6)	(5)
Income tax benefit									1	1	1
Net (loss) income									$ (6)	$ (5)	$ (4)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Reorganization and Business Transformation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Expense accruals	$ 8,000,000
Restructuring costs	14,000,000	$ 23,000,000
Restructuring costs incurred	37,000,000
Payments for restructuring	19,000,000	11,000,000
Accelerated depreciation	6,000,000
Employee separation benefits costs related to headquarter transition and business transformation
Restructuring Cost and Reserve [Line Items]
Expense accruals	5,000,000
Payments for restructuring	15,000,000
2015 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expense accruals	$ 0	$ 0	$ 26,000,000

Reorganization and Business Transformation - Costs Incurred For Reorganization Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring reserve. beginning balance	$ 12
Expense accruals	8
Cash payments	(19)	$ (11)
Restructuring reserve. ending balance	1	12
Employee separation benefits costs related to headquarter transition and business transformation
Restructuring Cost and Reserve [Line Items]
Restructuring reserve. beginning balance	11
Expense accruals	5
Cash payments	(15)
Restructuring reserve. ending balance	1	11
Transition support and other exit related costs for the headquarter transition and business transformation
Restructuring Cost and Reserve [Line Items]
Restructuring reserve. beginning balance	1
Expense accruals	3
Cash payments	(4)
Restructuring reserve. ending balance	$ 0	$ 1

Quarterly Information (unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 494	$ 459	$ 478	$ 468	$ 588	$ 526	$ 544	$ 506	$ 1,899	$ 2,164	$ 2,156
Gross profit	248	247	236	224	289	264	250	223	955	1,026	1,024
Operating (loss) income	(5)	10	10	(5)	23	14	10	(4)	10	43	68
Net (loss) income	$ (19)	$ 10	$ (1)	$ (10)	$ 15	$ 18	$ 4	$ (7)	$ (20)	$ 30	$ (67)
Net (loss) income per share:
Basic (in usd per share)	$ (0.17)	$ 0.09	$ (0.01)	$ (0.09)	$ 0.13	$ 0.15	$ 0.03	$ (0.06)	$ (0.18)	$ 0.25	$ (0.53)
Diluted (in usd per share)	$ (0.17)	$ 0.09	$ (0.01)	$ (0.09)	$ 0.13	$ 0.15	$ 0.03	$ (0.06)	$ (0.18)	$ 0.25	$ (0.53)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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