Teradata (TDC) 10-Q5 Aug 222022 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares shares in Millions	6 Months Ended
Cover - shares shares in Millions	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-33458
Entity Registrant Name	TERADATA CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-3236470
Entity Address, Address Line One	17095 Via Del Campo
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92127
City Area Code	866
Local Phone Number	548-8348
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	TDC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		102.8
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000816761
Current Fiscal Year End Date	--12-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue
Revenue	$ 430	$ 491	$ 926	$ 982
Cost of revenue
Cost of revenue	172	181	367	365
Gross profit	258	310	559	617
Operating expenses
Selling, general and administrative expenses	163	161	320	310
Research and development expenses	81	79	157	156
Total operating expenses	244	240	477	466
Income from operations	14	70	82	151
Other expense, net
Interest expense	(5)	(7)	(11)	(14)
Interest income	3	2	5	3
Other expense	(12)	(6)	(21)	(9)
Total other expense, net	(14)	(11)	(27)	(20)
Income before income taxes	0	59	55	131
Income tax expense	4	15	23	34
Net (loss) income	$ (4)	$ 44	$ 32	$ 97
Net (loss) income per common share
Basic (in dollars per share)	$ (0.04)	$ 0.40	$ 0.31	$ 0.89
Diluted (in dollars per share)	$ (0.04)	$ 0.39	$ 0.30	$ 0.86
Weighted average common shares outstanding
Basic (in shares)	103.5	109	104.2	108.9
Diluted (in shares)	103.5	112.7	107.1	112.7
Total recurring
Revenue
Revenue	$ 345	$ 376	$ 731	$ 748
Cost of revenue
Cost of revenue	96	87	201	177
Subscription software licenses
Revenue
Revenue	65	81	158	174
Cost of revenue
Cost of revenue	5	4	12	8
Services and other
Revenue
Revenue	280	295	573	574
Cost of revenue
Cost of revenue	91	83	189	169
Perpetual software licenses, hardware and other
Revenue
Revenue	8	17	34	40
Cost of revenue
Cost of revenue	6	11	24	22
Consulting services
Revenue
Revenue	77	98	161	194
Cost of revenue
Cost of revenue	$ 70	$ 83	$ 142	$ 166

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (4)	$ 44	$ 32	$ 97
Other comprehensive (loss) income:
Foreign currency translation adjustments	(24)	7	(25)	(1)
Unrealized loss on cross-currency net investment hedge, net of tax	(1)	0	(1)	0
Total currency translation adjustments	(25)	7	(26)	(1)
Derivatives:
Unrealized (loss) gain on derivatives, before tax	(3)	3	5	7
Unrealized (loss) gain on derivatives, tax portion	1	(1)	(1)	(2)
Unrealized (loss) gain on derivatives, net of tax	(2)	2	4	5
Defined benefit plans:
Defined benefit plan adjustment, before tax	2	3	5	5
Defined benefit plan adjustment, tax portion	(1)	(1)	(2)	(1)
Defined benefit plan adjustment, net of tax	1	2	3	4
Other comprehensive (loss) income	(26)	11	(19)	8
Comprehensive (loss) income	$ (30)	$ 55	$ 13	$ 105

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 545	$ 592
Accounts receivable, net	266	336
Inventories	17	26
Other current assets	93	152
Total current assets	921	1,106
Property and equipment, net	249	288
Right of use assets - operating lease, net	17	26
Goodwill	390	396
Capitalized contract costs, net	95	111
Deferred income taxes	194	202
Other assets	29	40
Total assets	1,895	2,169
Current liabilities
Current portion of long-term debt	0	88
Current portion of finance lease liability	70	77
Current portion of operating lease liability	8	12
Accounts payable	83	67
Payroll and benefits liabilities	108	148
Deferred revenue	530	552
Other current liabilities	79	89
Total current liabilities	878	1,033
Long-term debt	497	324
Finance lease liability	48	53
Operating lease liability	13	18
Pension and other postemployment plan liabilities	129	138
Long-term deferred revenue	11	27
Deferred tax liabilities	7	7
Other liabilities	90	109
Total liabilities	1,673	1,709
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	0	0
Common stock: par value $0.01 per share, 500.0 shares authorized, 102.8 and 107.2 shares issued at June 30, 2022 and December 31, 2021, respectively	1	1
Paid-in capital	1,874	1,808
Accumulated deficit	(1,496)	(1,211)
Accumulated other comprehensive loss	(157)	(138)
Total stockholders’ equity	222	460
Total liabilities and stockholders’ equity	$ 1,895	$ 2,169

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	102,800,000	107,200,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities
Net (loss) income	$ 32	$ 97
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	73	76
Stock-based compensation expense	63	52
Deferred income taxes	2	9
Changes in assets and liabilities:
Receivables	70	32
Inventories	9	9
Current payables and accrued expenses	(26)	15
Deferred revenue	(38)	48
Other assets and liabilities	71	(3)
Net cash provided by operating activities	256	335
Investing activities
Expenditures for property and equipment	(3)	(9)
Additions to capitalized software	(1)	(2)
Net cash used in investing activities	(4)	(11)
Financing activities
Repurchases of common stock	(317)	(121)
Proceeds from long-term borrowings	500	0
Repayments of long-term borrowings	(413)	(19)
Payments of finance leases	(45)	(44)
Other financing activities, net	1	18
Net cash used in financing activities	(274)	(166)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(25)	(4)
(Decrease) increase in cash, cash equivalents and restricted cash	(47)	154
Cash, cash equivalents and restricted cash at beginning of period	595	533
Cash, cash equivalents and restricted cash at end of period	548	687
Supplemental cash flow disclosure:
Assets acquired under operating lease	1	3
Assets acquired under finance lease	34	58
Annual variable incentive payout settled in equity	0	17
Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets:
Cash and cash equivalents	545
Restricted cash	3
Total cash, cash equivalents and restricted cash	$ 548	$ 687

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Shares issued, beginning balance (in shares) at Dec. 31, 2020		108
Stockholders’ equity, beginning balance at Dec. 31, 2020	$ 400	$ 1	$ 1,656	$ (1,114)	$ (143)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	53			53
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares)		4
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	52		52
Repurchases of common stock, retired (in shares)		(3)
Repurchases of common stock, retired	(85)			(85)
Pension and postemployment benefit plans, net of tax	2				2
Unrealized gain on derivatives, net of tax	3				3
Currency translation adjustment	(8)				(8)
Shares issued, ending balance (in shares) at Mar. 31, 2021		109
Stockholders’ equity, ending balance at Mar. 31, 2021	417	$ 1	1,708	(1,146)	(146)
Shares issued, beginning balance (in shares) at Dec. 31, 2020		108
Stockholders’ equity, beginning balance at Dec. 31, 2020	400	$ 1	1,656	(1,114)	(143)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	97
Pension and postemployment benefit plans, net of tax	4
Unrealized gain on derivatives, net of tax	5
Shares issued, ending balance (in shares) at Jun. 30, 2021		109
Stockholders’ equity, ending balance at Jun. 30, 2021	471	$ 1	1,743	(1,138)	(135)
Shares issued, beginning balance (in shares) at Mar. 31, 2021		109
Stockholders’ equity, beginning balance at Mar. 31, 2021	417	$ 1	1,708	(1,146)	(146)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	44			44
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	35		35
Repurchases of common stock, retired	(36)			(36)
Pension and postemployment benefit plans, net of tax	2				2
Unrealized gain on derivatives, net of tax	2				2
Currency translation adjustment	7				7
Shares issued, ending balance (in shares) at Jun. 30, 2021		109
Stockholders’ equity, ending balance at Jun. 30, 2021	471	$ 1	1,743	(1,138)	(135)
Shares issued, beginning balance (in shares) at Dec. 31, 2021		107
Stockholders’ equity, beginning balance at Dec. 31, 2021	460	$ 1	1,808	(1,211)	(138)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	36			36
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares)		3
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	34		34
Repurchase of common stock, settled (not yet settled)	(50)		(50)
Repurchases of common stock, retired (in shares)		(5)
Repurchases of common stock, retired	(250)			(250)
Pension and postemployment benefit plans, net of tax	2				2
Unrealized gain on derivatives, net of tax	6				6
Currency translation adjustment	(1)				(1)
Shares issued, ending balance (in shares) at Mar. 31, 2022		105
Stockholders’ equity, ending balance at Mar. 31, 2022	237	$ 1	1,792	(1,425)	(131)
Shares issued, beginning balance (in shares) at Dec. 31, 2021		107
Stockholders’ equity, beginning balance at Dec. 31, 2021	460	$ 1	1,808	(1,211)	(138)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	32
Pension and postemployment benefit plans, net of tax	3
Unrealized gain on derivatives, net of tax	4
Shares issued, ending balance (in shares) at Jun. 30, 2022		103
Stockholders’ equity, ending balance at Jun. 30, 2022	222	$ 1	1,874	(1,496)	(157)
Shares issued, beginning balance (in shares) at Mar. 31, 2022		105
Stockholders’ equity, beginning balance at Mar. 31, 2022	237	$ 1	1,792	(1,425)	(131)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(4)			(4)
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	32		32
Repurchase of common stock, settled (not yet settled)	50		50
Repurchases of common stock, retired (in shares)		(2)
Repurchases of common stock, retired	(67)			(67)
Pension and postemployment benefit plans, net of tax	1				1
Unrealized gain on derivatives, net of tax	(2)				(2)
Currency translation adjustment	(25)				(25)
Shares issued, ending balance (in shares) at Jun. 30, 2022		103
Stockholders’ equity, ending balance at Jun. 30, 2022	$ 222	$ 1	$ 1,874	$ (1,496)	$ (157)

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThese statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") and, in accordance with those rules and regulations, do not include all information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the results of operations, financial position and cash flows of Teradata Corporation ("Teradata" or the "Company") for the interim periods presented herein. The year-end 2021 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Teradata’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the "2021 Annual Report"). The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
New Accounting Pronouncements	Jun. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Reference Rate Reform. In March 2020, the Financial Accounting Standards Board ("FASB") issued new guidance to provide relief to companies that will be impacted by the expected change in benchmark interest rates, as participating banks will no longer be required to submit London Interbank Offered Rate ("LIBOR") quotes by the U.K. Financial Conduct Authority. The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, companies may elect to apply the amendments as of March 12, 2020 through December 31, 2022. The Company has evaluated this new guidance and concluded it will not have a material impact on our consolidated financial statements or related disclosures.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
Revenue from Contracts with Customers	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Disaggregation of Revenue from Contracts with Customers The following table presents a disaggregation of revenue: Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Americas Recurring $ 215 $ 233 $ 461 $ 451 Perpetual software licenses, hardware and other 3 4 15 11 Consulting services 31 37 63 75 Total Americas 249 274 539 537 EMEA Recurring 75 86 164 187 Perpetual software licenses, hardware and other 3 7 14 20 Consulting services 25 35 54 68 Total EMEA 103 128 232 275 APJ Recurring 55 57 106 110 Perpetual software licenses, hardware and other 2 6 5 9 Consulting services 21 26 44 51 Total APJ 78 89 155 170 Total Revenue $ 430 $ 491 $ 926 $ 982 Rental revenue, which is included in recurring revenue in the above table, was as follows: Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Rental revenue* $ 45 $ 48 $ 95 $ 87 *Rental revenue includes hardware maintenance. 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 condensed 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: As of in millions June 30, 2022 December 31, 2021 Accounts receivable, net 266 $ 336 Contract assets 15 10 Current deferred revenue 530 552 Long-term deferred revenue 11 27 Revenue recognized during the six months ended June 30, 2022 from amounts included in deferred revenue at the beginning of the period was $346 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 June 30, 2022: in millions Total at June 30, 2022 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,087 $ 1,373 $ 714 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 $1,243 million of the amount is under contracts that are subject to customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies us of cancellation. The Company expects to recognize revenue of approximately $449 million in the next year from contracts that are non-cancelable. 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. 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, net on the Company’s balance sheet. The capitalized amounts are calculated based on the annual recurring revenue and contract value 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 around four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs: in millions December 31, 2021 Capitalized Amortization June 30, 2022 Capitalized contract costs $ 111 $ 15 $ (31) $ 95 in millions December 31, 2020 Capitalized Amortization June 30, 2021 Capitalized contract costs $ 98 $ 20 $ (21) $ 97

Contract Costs

Contract Costs	6 Months Ended
Contract Costs	Jun. 30, 2022
Capitalized Contract Cost [Abstract]
Contract Costs	Revenue from Contracts with Customers Disaggregation of Revenue from Contracts with Customers The following table presents a disaggregation of revenue: Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Americas Recurring $ 215 $ 233 $ 461 $ 451 Perpetual software licenses, hardware and other 3 4 15 11 Consulting services 31 37 63 75 Total Americas 249 274 539 537 EMEA Recurring 75 86 164 187 Perpetual software licenses, hardware and other 3 7 14 20 Consulting services 25 35 54 68 Total EMEA 103 128 232 275 APJ Recurring 55 57 106 110 Perpetual software licenses, hardware and other 2 6 5 9 Consulting services 21 26 44 51 Total APJ 78 89 155 170 Total Revenue $ 430 $ 491 $ 926 $ 982 Rental revenue, which is included in recurring revenue in the above table, was as follows: Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Rental revenue* $ 45 $ 48 $ 95 $ 87 *Rental revenue includes hardware maintenance. 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 condensed 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: As of in millions June 30, 2022 December 31, 2021 Accounts receivable, net 266 $ 336 Contract assets 15 10 Current deferred revenue 530 552 Long-term deferred revenue 11 27 Revenue recognized during the six months ended June 30, 2022 from amounts included in deferred revenue at the beginning of the period was $346 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 June 30, 2022: in millions Total at June 30, 2022 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,087 $ 1,373 $ 714 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 $1,243 million of the amount is under contracts that are subject to customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies us of cancellation. The Company expects to recognize revenue of approximately $449 million in the next year from contracts that are non-cancelable. 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. 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, net on the Company’s balance sheet. The capitalized amounts are calculated based on the annual recurring revenue and contract value 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 around four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs: in millions December 31, 2021 Capitalized Amortization June 30, 2022 Capitalized contract costs $ 111 $ 15 $ (31) $ 95 in millions December 31, 2020 Capitalized Amortization June 30, 2021 Capitalized contract costs $ 98 $ 20 $ (21) $ 97

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
Supplemental Financial Information	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Financial Information	Supplemental Financial Information As of In millions June 30, December 31, Inventories Finished goods $ 11 $ 17 Service parts 6 9 Total inventories $ 17 $ 26 Deferred revenue Deferred revenue, current $ 530 $ 552 Long-term deferred revenue 11 27 Total deferred revenue $ 541 $ 579

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items which are required to be discretely recognized within the current interim period. The Company expects that a majority of its foreign earnings will be repatriated back to the United States ("U.S."). As a result, the effective tax rates in the periods presented are largely based upon the forecasted pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business. The effective tax rate is as follows: Three Months Ended June 30, Six Months Ended June 30, In millions 2022 2021 2022 2021 Effective tax rate 972.0 % 25.4 % 41.8 % 26.0 % For the three months ended June 30, 2022, the Company recorded $4 million of net discrete tax expense, a majority of which related to the recording of a valuation allowance against the current tax receivable and deferred tax asset balance that is not expected to be realized as a result of the discontinuation of the Company’s business in Russia in the first quarter of 2022. As a result of this tax expense, the Company’s effective tax rate for the quarter was 972%. For the six months ended June 30, 2022, the Company recorded $1 million of net discrete tax benefits, a majority of which related to the excess tax benefit derived from $6 million of stock compensation vesting, offset by $5 million of discrete tax expense associated with valuation allowances against the current tax receivable and deferred tax asset balance that is not expected to be realized as a result of the discontinuation of the Company’s business in Russia in the first quarter of 2022. For the three months ended June 30, 2021, the Company had no material discrete tax adjustments. For the six months ended June 30, 2021, the Company recorded $4 million of discrete tax benefit, a majority of which related to the excess tax benefit derived from stock compensation vesting. The Company estimates its annual effective tax rate for 2022 to be approximately 40% , which takes into consideration, among other things, the forecasted earnings mix by jurisdiction and the impact of discrete tax items to be recognized in 2022. Under U.S. tax law, U.S. shareholders are subject to a tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The Company has elected to provide for the tax expense related to GILTI in the year in which the tax is incurred. Effective on January 1, 2022, the U.S. tax law changed and now requires R&D expenses to be capitalized and amortized for tax purposes under Internal Revenue Code Section 174; as a result of this law change, the Company is currently forecasting approximately $9 million of tax expense related to GILTI in our marginal effective tax rate for 2022. Should Congress enact proposed legislation to defer the

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
Derivative Instruments and Hedging Activities	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities As a portion of Teradata’s operations is conducted outside the U.S. 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 exposure 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, operating expenses or in other income (expense), depending on the nature of the related hedged item. During June 2022, Teradata entered into a cross-currency swap designated as a net investment hedge, to hedge the Euro currency exposure of its net investment in certain foreign subsidiaries. This agreement is a contract to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. Changes in the fair value of this swap are recorded in Accumulated Other Comprehensive Loss in the same manner as foreign currency translation adjustments. In assessing the effectiveness of this hedge, the Company used a method based on changes in spot rates to measure the impact of the foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related swap. The cross-currency swap contract has an expiration date of June 29, 2026. At maturity of the cross-currency swap contract, the Company will deliver the notional amount of €143 million and wil l receive $150 million from the counterparty. The Company will receive monthly interest payments from the counterparty based on a fixed interest rate until maturity of the agreements. In June 2022, Teradata refinanced its long-term debt and its associated interest rate swap, which were due to mature in June 2023. As a result, Teradata terminated its five-year London Interbank Offered Rate ("Libor") interest rate swap that had a $500 million initial notional amount to hedge the floating interest rate of its Libor term loan. On June 28, 2022, Teradata executed a five-year Secured Overnight Financing Rate ("SOFR") interest rate swap with an initial notional amount of $450 million. 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 steps down according to the amortization schedule of the term loan. The notional amount of the hedge was $450 million as of June 30, 2022. The Company performed an initial effectiveness assessment on the interest rate swap and the net investment hedge foreign currency swap, and the hedges were determined to be effective. The hedges are 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 derivative financial instruments: As of In millions June 30, December 31, Contract notional amount of foreign exchange forward contracts $ 112 $ 110 Net contract notional amount of foreign exchange forward contracts $ 56 $ 41 Contract notional amount of foreign currency exchange (net investment hedge) $ 150 $ — Contract notional amount of interest rate swap $ 450 $ 413 All derivatives are recognized in the condensed 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 9 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

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings. 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. It is not currently a party to any litigation, nor is it aware of any pending or threatened litigation against it that the Company believes would materially affect its business, operating results, financial condition or cash flows, other than the following. On June 19, 2018, the Company and certain of its subsidiaries filed a lawsuit (the "TD-SAP 1" suit) in the U.S. District Court for the Northern District of California against SAP SE, SAP America, Inc., and SAP Labs, LLC (collectively, "SAP"). In the TD-SAP 1 lawsuit, the Company alleged, among other things, that SAP misappropriated certain of the Company’s trade secrets within the Company’s enterprise data analytics and warehousing products and used such trade secrets to help develop, improve, introduce, and sell one or more competing products. The Company further alleged that SAP employed anticompetitive practices using its substantial market position in the enterprise resource planning applications market to pressure the Company’s customers and prospective customers to use one or more of SAP's competing products and reduce or eliminate customers' and prospective customers' use of the Company's offerings. The Company sought an injunction barring SAP’s alleged conduct, monetary damages, and other available legal and equitable relief. In July 2019, SAP filed patent infringement counterclaims against the Company based on five of SAP’s U.S. patents. On August 31, 2020, the Company filed a second lawsuit against SAP (the "TD-SAP 2" suit) in the U.S. District Court for the Northern District of California, in which the Company alleged infringement by SAP of four of the Company's U.S. patents. On February 16, 2021, SAP filed additional patent infringement counterclaims against the Company in response. On the same day, SAP also filed a lawsuit in Germany (the "TD-SAP 3" suit) for infringement of a single German patent. In November 2021, the district court dismissed the Company’s antitrust claims and most of its trade secret claims in the TD-SAP 1 suit. In December 2021, the Company appealed that decision to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. In the meantime, the Company and SAP have entered into a partial settlement agreement that has resulted in full dismissal of all claims and counterclaims in the TD-SAP 2 suit in California and the TD-SAP 3 suit in Germany as well as a stay of all claims and counterclaims remaining in the TD-SAP 1 suit pending resolution of the Company’s appeal. Currently, it is not possible to determine the likelihood of a loss or a reasonably estimated range of loss, if any, pertaining to any of SAP’s remaining patent counterclaims in the TD-SAP 1 lawsuit. Other Contingencies. 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 divestiture 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 June 30, 2022 and December 31, 2021. 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

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	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, foreign currency 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 through the use of derivative financial instruments, specifically, foreign exchange forward contracts. Additionally, in June 2022, Teradata executed a five-year interest rate swap with a $450 million initial notional amount in order to hedge the variable interest rate on its term loan and a four-year cross-currency swap with initial notional amounts of €143 million/$150 million, as a net investment hedge to hedge the Euro currency exposure of our net investment in certain foreign subsidiaries. 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 contract assets and liabilities at June 30, 2022 and December 31, 2021 was not material. Realized gains and losses from the Company’s fair value and net investment hedges net of corresponding gains or losses on the underlying exposures were immaterial for the three and six months ended June 30, 2022 and 2021. The Company’s other assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at June 30, 2022 and December 31, 2021 were as follows: Fair Value Measurements at Reporting Date Using In millions Total Quoted Prices in Significant Significant Assets Money market funds at June 30, 2022 $ 230 $ 230 $ — $ — Money market funds at December 31, 2021 $ 148 $ 148 $ — $ — Liabilities Interest rate swap at June 30, 2022 $ 7 $ — $ 7 $ — Interest rate swap at December 31, 2021 $ 12 $ — $ 12 $ — Foreign currency swap at June 30, 2022 $ 1 $ — 1 $ —

Debt

Debt	6 Months Ended
Debt	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt On June 28, 2022, the Company entered into a Credit Agreement that provides for (i) a five-year unsecured term loan in an aggregate principal amount of $500 million (the "Term Loan"), and (ii) a five-year unsecured revolving credit facility in an aggregate principal amount of up to $400 million, including a $50 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swingline loans (the "Revolving Facility" and, collectively with the Term Loan, the "Credit Facility"). The Credit Facility replaces the Company's prior revolving credit agreement in the maximum principal of $400 million and its prior term loan agreement in the initial principal amount of $500 million, both of which were entered into in 2018 (the "Prior Agreements"). In connection with the execution of the Credit Facility, the $400 million term loan outstanding under the Prior Agreements was repaid in full. All outstanding borrowings pursuant to the Revolving Facility are due and payable on June 28, 2027, however, the maturity date of the Revolving Facility may be extended by agreement of the parties for up to two additional one-year periods. The Term Loan is payable in quarterly installments, which commence on June 30, 2024, with 1.25% of the initial principal amount due on each of the first twelve payment dates, with all remaining principal due on June 28, 2027. 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 $450 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 an adjusted term SOFR rate, plus in each case, a margin based on the Company's leverage ratio. The Credit Facility is unsecured but is guaranteed by certain of Teradata’s material domestic subsidiaries and contains certain customary representations and warranties, default provisions, and affirmative and negative covenants, including, among others, covenants regarding the maintenance of a leverage ratio and covenants relating to financial reporting, compliance with laws, subsidiary indebtedness, liens, sale and leaseback transactions, mergers and other fundamental changes, and entry into certain restrictive agreements. Most of the covenants are subject to materiality, thresholds, and exceptions. In addition, the Credit Agreement provides that Teradata may request that the Credit Agreement be amended to establish key performance indicators with respect to certain environmental, social, and governance ("ESG") targets, pursuant to which certain positive or negative adjustments would be made to various fees and applicable margin based on Teradata’s performance against such ESG targets. As of June 30, 2022, the Company had no borrowings outstanding under the Revolving Facility, leaving $400 million in borrowing capacity available under the Revolving Facility and the Term Loan principal outstanding was $500 million. The Term Loan is recognized on the Company's balance sheet at the unpaid principal balance, net of deferred issuance costs, and is not subject to fair value measurement. The Company was in compliance with all covenants under the Credit Facility as of June 30, 2022. Teradata’s all-in interest rate, associated with the Company's Prior Agreements, for the three and six months ended June 30, 2022, was approximately 4.23%. As disclosed in Note 7, Teradata entered into an interest rate swap to hedge the portion of the floating interest rate of the Term Loan and a cross currency swap to hedge a portion of Euro currency exposure of its net investment in certain foreign subsidiaries. As of June 30, 2022, the blended all-in interest rate was 3.98%

Earnings per Share

Earnings per Share	6 Months Ended
Earnings per Share	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings per share is calculated by dividing net 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 resulting from stock options, restricted stock awards and other stock awards. The components of basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended June 30, In millions, except per share amounts 2022 2021 2022 2021 Net (loss) income attributable to common stockholders $ (4) $ 44 $ 32 $ 97 Weighted average outstanding shares of common stock 103.5 109.0 104.2 108.9 Dilutive effect of employee stock options, restricted stock and other stock awards — 3.7 2.9 3.8 Common stock and common stock equivalents 103.5 112.7 107.1 112.7 Net (loss) income per share: Basic $ (0.04) $ 0.40 $ 0.31 $ 0.89 Diluted $ (0.04) $ 0.39 $ 0.30 $ 0.86 For the three months ended June 30, 2022, due to the net loss attributable to Teradata common stockholders, common shares that otherwise potentially 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. The fully diluted shares would have been 105.6 million for the three months ended June 30, 2022. Options to purchase 0.4 million shares and 0.4 million shares of common stock for the three and six months ended June 30, 2022 and 0.2 million shares and 0.6 million shares of common stock for the three and six months ended June 30, 2021 were not included in the computation of diluted earnings per share because the exercise prices of these options were greater than the average market price of the common shares for the period, and therefore would have been anti-dilutive. Accelerated Share Repurchase Agreement ("ASR") On February 9, 2022 Teradata entered into an ASR agreement with JPMorgan Chase Bank, National Association ("JPMorgan Chase") to purchase shares of its common stock from JPMorgan Chase for an aggregate purchase price of $250 million. Pursuant to the ASR, the Company received an initial delivery of 3,930,045 shares of common stock based on the $50.89 closing price of the common stock on February 8, 2022. A final delivery of 1,635,863 shares was received on May 6, 2022 to complete the ASR agreement.

Segment and Other Supplemental

Segment and Other Supplemental Information	6 Months Ended
Segment and Other Supplemental Information	Jun. 30, 2022
Segment Reporting [Abstract]
Segment and Other Supplemental Information	Segment and Other Supplemental Information Teradata manages its business under three geographic regions, which are also the Company’s operating segments: (1) Americas region (North America and Latin America); (2) EMEA region (Europe, Middle East and Africa) and (3) APJ region (Asia Pacific and Japan). For purposes of discussing results by segment, management excludes the impact of certain items, consistent with the manner by which management evaluates the performance of each segment. This format is useful to investors because it allows analysis and comparability of operating trends. It also includes the same information that is used by Teradata management to make decisions regarding the segments and to assess financial performance. The chief operating decision maker, who is the Company's President and Chief Executive Officer, evaluates the performance of the segments based on revenue and multiple profit measures, including segment gross profit. For management reporting purposes, assets are not allocated to the segments. The following table presents segment revenue and segment gross profit for the Company: Three Months Ended Six Months Ended June 30, In millions 2022 2021 2022 2021 Segment revenue Americas $ 249 $ 274 $ 539 $ 537 EMEA 103 128 232 275 APJ 78 89 155 170 Total revenue 430 491 926 982 Segment gross profit Americas 153 185 342 367 EMEA 63 80 141 168 APJ 47 53 92 98 Total segment gross profit 263 318 575 633 Stock-based compensation costs 4 5 9 8 Acquisition, integration, reorganization and transformation-related costs 1 3 7 8 Total gross profit 258 310 559 617 Selling, general and administrative expenses 163 161 320 310 Research and development expenses 81 79 157 156 Income from operations $ 14 $ 70 $ 82 $ 151

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	6 Months Ended
New Accounting Pronouncements (Policies)	Jun. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Reference Rate Reform. In March 2020, the Financial Accounting Standards Board ("FASB") issued new guidance to provide relief to companies that will be impacted by the expected change in benchmark interest rates, as participating banks will no longer be required to submit London Interbank Offered Rate ("LIBOR") quotes by the U.K. Financial Conduct Authority. The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, companies may elect to apply the amendments as of March 12, 2020 through December 31, 2022. The Company has evaluated this new guidance and concluded it will not have a material impact on our consolidated financial statements or related disclosures.
Revenue from Contract with Customer	Contract CostsThe 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, net on the Company’s balance sheet. The capitalized amounts are calculated based on the annual recurring revenue and contract value 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 around four years. These costs are periodically reviewed for impairment.
Fair Value Measurement	Fair Value MeasurementsFair 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.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
Revenue from Contracts with Customers (Tables)	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table presents a disaggregation of revenue: Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Americas Recurring $ 215 $ 233 $ 461 $ 451 Perpetual software licenses, hardware and other 3 4 15 11 Consulting services 31 37 63 75 Total Americas 249 274 539 537 EMEA Recurring 75 86 164 187 Perpetual software licenses, hardware and other 3 7 14 20 Consulting services 25 35 54 68 Total EMEA 103 128 232 275 APJ Recurring 55 57 106 110 Perpetual software licenses, hardware and other 2 6 5 9 Consulting services 21 26 44 51 Total APJ 78 89 155 170 Total Revenue $ 430 $ 491 $ 926 $ 982
Schedule of Rental Revenue	Rental revenue, which is included in recurring revenue in the above table, was as follows: Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Rental revenue* $ 45 $ 48 $ 95 $ 87 *Rental revenue includes hardware maintenance.
Schedule of Assets and Liabilities Related to Contracts with Customers	The following table provides information about receivables, contract assets and deferred revenue from contracts with customers: As of in millions June 30, 2022 December 31, 2021 Accounts receivable, net 266 $ 336 Contract assets 15 10 Current deferred revenue 530 552 Long-term deferred revenue 11 27
Schedule of Estimated Revenue Expected to be Recognized in the Future	The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at June 30, 2022: in millions Total at June 30, 2022 Year 1 Year 2 and Thereafter Remaining unsatisfied obligations $ 2,087 $ 1,373 $ 714

Contract Costs (Tables)

Contract Costs (Tables)	6 Months Ended
Contract Costs (Tables)	Jun. 30, 2022
Capitalized Contract Cost [Abstract]
Schedule of Activity Related to Capitalized Contract Cost	The following table identifies the activity relating to capitalized contract costs: in millions December 31, 2021 Capitalized Amortization June 30, 2022 Capitalized contract costs $ 111 $ 15 $ (31) $ 95 in millions December 31, 2020 Capitalized Amortization June 30, 2021 Capitalized contract costs $ 98 $ 20 $ (21) $ 97

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	6 Months Ended
Supplemental Financial Information (Tables)	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Supplemental Financial Information	As of In millions June 30, December 31, Inventories Finished goods $ 11 $ 17 Service parts 6 9 Total inventories $ 17 $ 26 Deferred revenue Deferred revenue, current $ 530 $ 552 Long-term deferred revenue 11 27 Total deferred revenue $ 541 $ 579

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Effective Tax Rate	The effective tax rate is as follows: Three Months Ended June 30, Six Months Ended June 30, In millions 2022 2021 2022 2021 Effective tax rate 972.0 % 25.4 % 41.8 % 26.0 %

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
Derivative Instruments and Hedging Activities (Tables)	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Financial Instruments	The following table identifies the contract notional amount of the Company’s derivative financial instruments: As of In millions June 30, December 31, Contract notional amount of foreign exchange forward contracts $ 112 $ 110 Net contract notional amount of foreign exchange forward contracts $ 56 $ 41 Contract notional amount of foreign currency exchange (net investment hedge) $ 150 $ — Contract notional amount of interest rate swap $ 450 $ 413

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements	The Company’s other assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at June 30, 2022 and December 31, 2021 were as follows: Fair Value Measurements at Reporting Date Using In millions Total Quoted Prices in Significant Significant Assets Money market funds at June 30, 2022 $ 230 $ 230 $ — $ — Money market funds at December 31, 2021 $ 148 $ 148 $ — $ — Liabilities Interest rate swap at June 30, 2022 $ 7 $ — $ 7 $ — Interest rate swap at December 31, 2021 $ 12 $ — $ 12 $ — Foreign currency swap at June 30, 2022 $ 1 $ — 1 $ —

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
Earnings per Share (Tables)	Jun. 30, 2022
Earnings Per Share [Abstract]
Components of Basic and Diluted Earnings Per Share	The components of basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended June 30, In millions, except per share amounts 2022 2021 2022 2021 Net (loss) income attributable to common stockholders $ (4) $ 44 $ 32 $ 97 Weighted average outstanding shares of common stock 103.5 109.0 104.2 108.9 Dilutive effect of employee stock options, restricted stock and other stock awards — 3.7 2.9 3.8 Common stock and common stock equivalents 103.5 112.7 107.1 112.7 Net (loss) income per share: Basic $ (0.04) $ 0.40 $ 0.31 $ 0.89 Diluted $ (0.04) $ 0.39 $ 0.30 $ 0.86

Segment and Other Supplementa_2

Segment and Other Supplemental Information (Tables)	6 Months Ended
Segment and Other Supplemental Information (Tables)	Jun. 30, 2022
Segment Reporting [Abstract]
Regional Segment Revenue and Gross Margin	The following table presents segment revenue and segment gross profit for the Company: Three Months Ended Six Months Ended June 30, In millions 2022 2021 2022 2021 Segment revenue Americas $ 249 $ 274 $ 539 $ 537 EMEA 103 128 232 275 APJ 78 89 155 170 Total revenue 430 491 926 982 Segment gross profit Americas 153 185 342 367 EMEA 63 80 141 168 APJ 47 53 92 98 Total segment gross profit 263 318 575 633 Stock-based compensation costs 4 5 9 8 Acquisition, integration, reorganization and transformation-related costs 1 3 7 8 Total gross profit 258 310 559 617 Selling, general and administrative expenses 163 161 320 310 Research and development expenses 81 79 157 156 Income from operations $ 14 $ 70 $ 82 $ 151

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 430	$ 491	$ 926	$ 982
Americas
Disaggregation of Revenue [Line Items]
Revenue	249	274	539	537
EMEA
Disaggregation of Revenue [Line Items]
Revenue	103	128	232	275
APJ
Disaggregation of Revenue [Line Items]
Revenue	78	89	155	170
Recurring
Disaggregation of Revenue [Line Items]
Revenue	345	376	731	748
Recurring \| Americas
Disaggregation of Revenue [Line Items]
Revenue	215	233	461	451
Recurring \| EMEA
Disaggregation of Revenue [Line Items]
Revenue	75	86	164	187
Recurring \| APJ
Disaggregation of Revenue [Line Items]
Revenue	55	57	106	110
Perpetual software licenses, hardware and other
Disaggregation of Revenue [Line Items]
Revenue	8	17	34	40
Perpetual software licenses, hardware and other \| Americas
Disaggregation of Revenue [Line Items]
Revenue	3	4	15	11
Perpetual software licenses, hardware and other \| EMEA
Disaggregation of Revenue [Line Items]
Revenue	3	7	14	20
Perpetual software licenses, hardware and other \| APJ
Disaggregation of Revenue [Line Items]
Revenue	2	6	5	9
Consulting services
Disaggregation of Revenue [Line Items]
Revenue	77	98	161	194
Consulting services \| Americas
Disaggregation of Revenue [Line Items]
Revenue	31	37	63	75
Consulting services \| EMEA
Disaggregation of Revenue [Line Items]
Revenue	25	35	54	68
Consulting services \| APJ
Disaggregation of Revenue [Line Items]
Revenue	$ 21	$ 26	$ 44	$ 51

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Schedule of Operating Lease Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Rental revenue	$ 45	$ 48	$ 95	$ 87

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 266	$ 336
Contract assets	15	10
Current deferred revenue	530	552
Long-term deferred revenue	$ 11	$ 27

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Deferred revenue, revenue recognized	$ 346
Remaining performance obligation, amount of customer only general cancellation	1,243
Remaining performance obligation, amount of non-cancelable contracts	$ 449

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 2,087
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 1,373
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 714
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period

Contract Costs - Narrative (Det

Contract Costs - Narrative (Details)	Jun. 30, 2022
Capitalized Contract Cost [Abstract]
Capitalized contract cost, amortization period	4 years

Contract Costs - Schedule of Ac

Contract Costs - Schedule of Activity Related to Capitalized Contract Cost (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Capitalized Contract Cost, Net [Roll Forward]
Capitalized contract cost, net at period start	$ 111	$ 98
Capitalized	15	20
Amortization	(31)	(21)
Capitalized contract cost, net at period end	$ 95	$ 97

Supplemental Financial Inform_3

Supplemental Financial Information (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Inventories
Finished goods	$ 11	$ 17
Service parts	6	9
Total inventories	17	26
Deferred revenue
Current deferred revenue	530	552
Long-term deferred revenue	11	27
Total deferred revenue	$ 541	$ 579

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Tax Rate (Detail)	3 Months Ended		6 Months Ended
Income Taxes - Schedule of Effective Tax Rate (Detail)	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rate (percentage)	972%	25.40%	41.80%	26%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2022
Operating Loss Carryforwards [Line Items]
Net discrete tax benefits	$ 4	$ 0	$ (1)	$ (4)
Effective tax rate (percentage)	972%	25.40%	41.80%	26%
Tax benefit from stock compensation vesting			$ 6
Discrete tax expense associated with valuation allowances			$ 5
Scenario, Forecast
Operating Loss Carryforwards [Line Items]
Effective tax rate (percentage)					40%
Effective income tax rate reconciliation, GILTI amount					$ 9

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Narrative (Detail) € in Millions, $ in Millions	1 Months Ended
	Jun. 30, 2022 EUR (€)	Jun. 30, 2018 USD ($)	Jun. 30, 2022 USD ($)	Jun. 28, 2022 USD ($)	Dec. 31, 2021 USD ($)
Interest Rate Swap
Derivative
Contract notional amount of interest rate swap		$ 500	$ 450	$ 450	$ 413
Contract notional amount of cross-currency swap	5 years	5 years
Cross Currency Swap
Derivative
Contract notional amount of interest rate swap	€ 143		150		$ 0
Derivative asset			$ 150

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Schedule of Derivative Financial Instruments (Details) € in Millions, $ in Millions	1 Months Ended
	Jun. 30, 2022 EUR (€)	Jun. 30, 2018 USD ($)	Jun. 30, 2022 USD ($)	Jun. 28, 2022 USD ($)	Dec. 31, 2021 USD ($)
Foreign Exchange Contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contract notional amount of foreign exchange forward contracts			$ 112		$ 110
Net contract notional amount of foreign exchange forward contracts			56		41
Contract notional amount of interest rate swap			112		110
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Term of contract	5 years	5 years
Contract notional amount of foreign exchange forward contracts		$ 500	450	$ 450	413
Contract notional amount of interest rate swap		$ 500	450	$ 450	413
Cross Currency Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Contract notional amount of foreign exchange forward contracts	€ 143		150		0
Contract notional amount of interest rate swap	€ 143		$ 150		$ 0

Commitment and Contingencies (D

Commitment and Contingencies (Details) - patent		1 Months Ended
Commitment and Contingencies (Details) - patent	Aug. 31, 2021	Jul. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Loss contingency on patents allegedly infringed upon (in patents)		5
Gain contingency on patents allegedly infringed upon (in patents)	4

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - Interest Rate Swap - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2022	Jun. 30, 2018	Jun. 28, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Term of contract	5 years	5 years
Contract notional amount of interest rate swap	$ 450	$ 500	$ 450	$ 413

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 230	$ 148
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	230	148
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	7	12
Interest Rate Swap \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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 [Line Items]
Interest rate swap	7	12
Interest Rate Swap \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	0	$ 0
Cross Currency Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	1
Cross Currency Swap \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	0
Cross Currency Swap \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	1
Cross Currency Swap \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	$ 0

Debt - Additional Information (

Debt - Additional Information (Detail)		3 Months Ended	6 Months Ended
Debt - Additional Information (Detail)	Jun. 28, 2022 USD ($) renewal	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2018 USD ($)
Debt Instrument
All-in-interest rate during period		4.23%	4.23%
All-in-interest rate at period end		3.98%	3.98%
Credit Agreement Issued In June 2022 \| Line of Credit
Debt Instrument
Number of renewals \| renewal	2
Renewal term	1 year
Credit Agreement Issued In June 2022 \| Line of Credit \| Revolving Credit Facility
Debt Instrument
Term of loan (years)	5 years
Credit facility maximum borrowing capacity	$ 400,000,000
Additional borrowings available			$ 450,000,000
Remaining borrowing capacity		$ 400,000,000	400,000,000
Principal outstanding		0	0
Credit Agreement Issued In June 2022 \| Line of Credit \| Medium-term Notes
Debt Instrument
Term of loan (years)	5 years
Debt instrument, face amount	$ 500,000,000
Term loan, payable quarterly installments (percentage)	1.25%
Principal outstanding		500,000,000	$ 500,000,000
Credit Agreement Issued In June 2022 \| Line of Credit \| Letter of Credit
Debt Instrument
Credit facility maximum borrowing capacity	$ 50,000,000
Credit Agreement Issued In June 2022 \| Line of Credit \| Bridge Loan
Debt Instrument
Credit facility maximum borrowing capacity	$ 50,000,000
Revolving Credit Facility Ending In June 2023 \| Revolving Credit Facility
Debt Instrument
Credit facility maximum borrowing capacity				$ 400,000,000
Repayment of line of credit		$ 400,000,000
Senior Unsecured Term Loan Issued June 2018 \| Senior Unsecured Term Loan
Debt Instrument
Debt instrument, face amount				$ 500,000,000

Earnings per Share - Components

Earnings per Share - Components of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net (loss) income attributable to common stockholders	$ (4)	$ 36	$ 44	$ 53	$ 32	$ 97
Weighted average outstanding shares of common stock (in shares)	103.5		109		104.2	108.9
Dilutive effect of employee stock options, restricted stock and other stock awards (in shares)	0		3.7		2.9	3.8
Common stock and common stock equivalents (in shares)	103.5		112.7		107.1	112.7
Net (loss) income per share:
Basic (in dollars per share)	$ (0.04)		$ 0.40		$ 0.31	$ 0.89
Diluted (in dollars per share)	$ (0.04)		$ 0.39		$ 0.30	$ 0.86
Earnings Per Share, Diluted [Abstract]
Antidilutive securities excluded from computation of EPS, value	$ 105.6
Antidilutive options to purchase that were not included in the computation of diluted earnings per share (in shares)	0.4		0.2		0.4	0.6

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended		6 Months Ended
	May 06, 2022	Feb. 08, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Feb. 09, 2022
Earnings Per Share [Abstract]
Antidilutive options to purchase that were not included in the computation of diluted earnings per share (in shares)			400,000	200,000	400,000	600,000
JPMorgan Chase Accelerated Shares Repurchase Agreement
Accelerated Share Repurchases [Line Items]
Stock repurchase program, authorized amount							$ 250
Amount of shares purchased (in shares)	1,635,863	3,930,045
Common stock closing price (in dollars per share)		$ 50.89

Segment and Other Supplementa_3

Segment and Other Supplemental Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment and Other Supplementa_4

Segment and Other Supplemental Information - Regional Segment Revenue and Gross Margin for Company (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information
Segment revenue	$ 430	$ 491	$ 926	$ 982
Gross profit	258	310	559	617
Selling, general and administrative expenses	163	161	320	310
Research and development expenses	81	79	157	156
Income from operations	14	70	82	151
Americas
Segment Reporting Information
Segment revenue	249	274	539	537
EMEA
Segment Reporting Information
Segment revenue	103	128	232	275
APJ
Segment Reporting Information
Segment revenue	78	89	155	170
Operating segments
Segment Reporting Information
Gross profit	263	318	575	633
Operating segments \| Americas
Segment Reporting Information
Gross profit	153	185	342	367
Operating segments \| EMEA
Segment Reporting Information
Gross profit	63	80	141	168
Operating segments \| APJ
Segment Reporting Information
Gross profit	47	53	92	98
Segment reconciling items
Segment Reporting Information
Stock-based compensation costs	4	5	9	8
Acquisition, integration, reorganization and transformation-related costs	$ 1	$ 3	$ 7	$ 8

Uncategorized Items - tdc-20220

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 3,000,000