tdc-20200806
TERADATA CORP /DE/0000816761false00008167612020-08-062020-08-06


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
__________________
 
FORM 8-K
       __________________
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (date of earliest event reported): August 6, 2020
 
 
TERADATA CORPORATION
(Exact name of registrant as specified in its charter)
  
Commission File Number 001-33458  
Delaware75-3236470
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
 
17095 Via Del Campo
San Diego, California 92127

(Address of principal executive offices and zip code)
 
Registrant’s telephone number, including area code: (866) 548-8348
 
N/A
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par valueTDCNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  




Item 2.02 Results of Operations and Financial Condition.
Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 “Results of Operations and Financial Condition” of Form 8-K and Item 7.01 “Regulation FD Disclosure.” Such information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.
On August 6, 2020, the Company issued a press release setting forth its second quarter 2020 operating results as well as current revenue and earnings per share outlook estimates for the third quarter of 2020 (the "Press Release"). A copy of the Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.
Item 9.01  Financial Statements and Exhibits.
(d) Exhibits:
The following exhibits are attached with this current report on Form 8-K:
Exhibit No.Description







SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
TERADATA CORPORATION
Date: August 6, 2020By:/s/ Mark A. Culhane
Mark A. Culhane
Chief Financial Officer


Document


INVESTOR CONTACT
Nabil Elsheshai
858-485-2125 office
nabil.elsheshai@teradata.com

MEDIA CONTACT
Jennifer Donahue
858-485-3029 office
jennifer.donahue@teradata.com

            

Teradata Reports Second Quarter 2020 Financial Results

Second-quarter results exceeded Company expectations on key revenue, profit and cash flow metrics
Annual Recurring Revenue (ARR) increased 8% reported and 9% in constant currency(1) from the same period of the prior year
Second-quarter recurring revenue of $358 million exceeded Company’s guidance range
In the second quarter, operating cash flow improved to $130 million and free cash flow totaled $115 million(2)

SAN DIEGO August 6, 2020 -- Teradata Corp. (NYSE: TDC) today announced its second-quarter 2020 financial results. The Company successfully navigated through an uncertain macro environment to exceed its targets, despite business trends impacted by the ongoing COVID-19 pandemic. ARR increased 8% reported and 9% in constant currency(1), from the prior-year period. Recurring revenue increased 6%, 8% in constant currency(1), from the second quarter of 2019. In the quarter, both perpetual and consulting revenues declined, as expected compared to the second quarter of 2019, as the company shifted to a recurring revenue model and focused its consulting resources on higher-margin engagements that drive increased software consumption within its targeted customer base. Additionally, consulting revenue was impacted by incremental COVID-19-related headwinds in the quarter. Total second-quarter revenue was $457 million, a decrease as expected compared to 2019 second-quarter total revenue of $478 million. Currency translation had a one percentage point negative impact on the second-quarter total revenue comparison(1).

Teradata reported 2020 second-quarter net loss of $(43) million under U.S. Generally Accepted Accounting Principles (GAAP), or $(0.40) per share, which compared to a net loss of $(1) million, or $(0.01) per share, in the second quarter of 2019. On a non-GAAP basis, which excludes stock-based compensation expense and other special items, 2020 second-quarter net income was $26 million, or $0.24 per diluted share, as compared to $34 million, or $0.29 per diluted share in the second quarter of 2019(3).

“Teradata executed well in the quarter, exceeding expectations for our key metrics and delivering robust ARR growth, strong recurring revenue growth, significant free cash flow, and solid earnings per share, despite the uncertainties posed by the COVID-19 pandemic. The Teradata team demonstrated great resiliency and pivoted quickly and smoothly to support our customers and advance our business, regardless of physical constraints,” said Steve McMillan, President and CEO, Teradata. “Our strong relationships with our stable customer base, combined with our deeply rooted dedication to delivering outstanding business value, are serving us well during these unprecedented times. As we accelerate our cloud efforts, we are listening to the market and our customers, responding with speed and agility, and ensuring we are providing value for our customers, supporting our people and delivering on our expectations.”

Gross Margin



2020 second-quarter gross margin reported under GAAP was 56.0% versus 49.4% for the second quarter of 2019. On a non-GAAP basis, excluding stock-based compensation expense and other special items, 2020 second-quarter gross margin was 58.9%, versus 52.7% in the prior-year period(3). The gross margin rate was higher year-over-year due to the continued mix shift towards higher-margin recurring revenues, as well as improved perpetual and consulting margins.

Operating Income
2020 second-quarter operating income reported under GAAP was $8 million compared to $10 million in the second quarter of 2019. On a non-GAAP basis, excluding stock-based compensation expense and other special items, 2020 second-quarter operating income was $64 million versus $51 million in the second quarter of 2019(3). The increase in non-GAAP operating income was due to the improved gross margins referenced above, as well as expense management measures instituted in response to the uncertainty of the ongoing COVID-19 pandemic.


Income Taxes
Teradata’s 2020 second-quarter tax rate under GAAP was (1,333.3%) compared to 120.0% in the second quarter of 2019. Excluding special items, Teradata’s non-GAAP 2020 second-quarter tax rate was 50.9% versus 26.1% in the second quarter of 2019(3). The increase in the tax rate period-over-period was driven by the impact of discrete tax items recognized in the quarter and the timing of earnings throughout the year.

Cash Flow
During the second quarter of 2020, Teradata generated $130 million of cash from operating activities compared to $55 million in the same period of 2019. The Company’s transition to a subscription-based model changes the timing of billings and cash collections, therefore year-over-year comparisons may be less meaningful than in prior years. During the quarter, Teradata used $15 million for capital expenditures and additions to capitalized software development costs, versus using $13 million in the second quarter of 2019. Teradata’s 2020 second-quarter free cash flow was $115 million, compared to $42 million in the second quarter of 2019(2). Strong cash collections, some of which slipped out of the 2020 first quarter due to late March shelter-in-place orders, contributed to a very strong cash flow quarter.

Balance Sheet
Teradata ended the second quarter of 2020 with $494 million in cash. During the second quarter of 2020, Teradata did not repurchase any shares of its common stock as the Company suspended its buyback program to conserve cash amid the COVID-19 pandemic. Year-to-date, the Company repurchased 3.7 million shares for approximately $75 million. At the end of the second quarter, Teradata had approximately 108.9 million shares outstanding.

As of June 30, 2020, the Company had total debt of $613 million, including $144 million of outstanding finance lease obligations. There were no funds drawn on the company’s $400 million revolving credit facility as of June 30, 2020.

Guidance
For the third quarter of 2020, Teradata expects recurring revenue between $359 million and $361 million.




GAAP loss / earnings per share in the third quarter of 2020 is expected to be in the range of $(0.03) and $0.00. Non-GAAP earnings per share, excluding stock-based compensation expense and other special items, in the third quarter is expected to be in the $0.28 to $0.31 range.

Earnings Conference Call
A conference call is scheduled today at 2:00 p.m. PT to discuss the Company’s 2020 second-quarter results and provide a business and financial update. Access to the conference call, as well as a replay of the conference call, is available on Teradata’s website at investor.teradata.com.

Supplemental Financial Information
Additional information regarding Teradata’s operating results is provided below as well as on Teradata’s website at investor.teradata.com.

1.The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates (except for currency impact on ARR which is calculated using month-end rates). See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com

Revenue
(in millions)
For the Three Months ended June 30
20202019% Change as Reported% Change in Constant Currency
Recurring revenue$358  $338  6%8%
Perpetual software licenses and hardware17  29  (41)%(42)%
Consulting services82  111  (26)%(24)%
  Total revenue$457  $478  (4)%(3)%
Americas $259  $269  (4)%(2)%
EMEA118  122  (3)%(1)%
APJ80  $87  (8)%(7)%
   Total revenue$457  $478  (4)%(3)%

Revenue
(in millions)
For the Six Months ended June 30
20202019% Change as Reported% Change in Constant Currency
Recurring revenue$703  $669  5%7%
Perpetual software licenses and hardware31  60  (48)%(48)%
Consulting services157  217  (28)%(26)%
  Total revenue$891  $946  (6)%(4)%
Americas$503  $538  (7)%(5)%
EMEA236  235  —%3%
APJ152  $173  (12)%(10)%
   Total revenue$891  $946  (6)%(4)%




As of June 30
20202019% Change as Reported% Change in Constant Currency
Annual recurring revenue*$1,454  $1,350  8%9%

* Annual recurring revenue is defined as the annual value at a point in time of all recurring contracts, including subscription, software upgrade rights, maintenance and managed services.

2.As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Teradata defines free cash flow as cash provided by / used in operating activities, less capital expenditures for property and equipment, and additions to capitalized software. Free cash flow does not have a uniform definition under GAAP and therefore, Teradata’s definition may differ from other companies’ definitions of this measure. Teradata’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the Company’s existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of the Company’s stock and repayment of the Company’s debt obligations, if any. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. This non-GAAP measure is not meant to be considered in isolation to, as a substitute for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.


For the Three Months
For the Six Months
ended June 30
ended June 30
2020
2019
2020
2019
Cash provided by operating activities (GAAP)
$130  $55  $140  $104  
Less capital expenditures for:
Expenditures for property and equipment
(13) (12) (23) (27) 
Additions to capitalized software
(2) (1) (4) (2) 
Total capital expenditures
(15) (13) (27) (29) 
Free Cash Flow (non-GAAP measure)
$115  $42  $113  $75  


3.Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, all of which exclude certain items (as well as free cash flow) are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.

The following tables reconcile Teradata’s actual and projected results and EPS under GAAP to the Company’s actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company’s operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.

Teradata’s reconciliation of GAAP to non-GAAP results included in this release.




For the
Three Months
For the
Six Months
(in millions, except per share data)ended June 30ended June 30
Gross Profit:20202019% Chg.20202019% Chg.
 GAAP Gross Profit$256  $236  8%$481  $460  5%
   % of Revenue56.0 %49.4 %54.0 %48.6 %
  Excluding:
   Stock-based compensation expense    
   Acquisition, integration, reorganization related, and other costs    
   Amortization of capitalized software 10  11  21  
 Non-GAAP Gross Profit$269  $252  7%$504  $493  2%
   % of Revenue58.9 %52.7 %56.6 %52.1 %
Operating Income
 GAAP Operating Income$ $10  (20)%$ $ (60)%
   % of Revenue1.8 %2.1 %0.2 %0.5 %
0.005
 Excluding:
   Stock-based compensation expense31  21  52  36  
   Amortization of acquisition-related intangible assets    
   Acquisition, integration, reorganization related, and other costs19   29  26  
   Amortization of capitalized software 10  11  21  
 Non-GAAP Operating Income$64  $51  25%$96  $92  4%
   % of Revenue14.0 %10.7 %10.8 %9.7 %
Net Income
 GAAP Net (Loss)/Income$(43) $(1) —%$125  $(11) —%
   % of Revenue(9.4)%(0.2)%14.0 %(1.2)%
  Excluding:
   Stock-based compensation expense31  21  52  36  
   Amortization of acquisition-related intangible assets    
   Acquisition, integration, reorganization related, and other costs19        29  26  
   Amortization of capitalized software 10  11  21  
 IP restructuring tax expense (benefit)(1)
 —  (156) —  
   Tax contingency adjustment(2)
20  —   —  
   Income tax adjustments (3)
(8) (6) (9) (16) 
 Non-GAAP Net Income$26  $34  (24)%$56  $60  (7)%
   % of Revenue5.7 %7.1 %6.3 %6.3 %




For the Three MonthsFor the Six Months
ended June 30ended June 30
Earnings Per Share:20202019202020192020 Q3
Guidance
GAAP (Loss)/ Earnings Per Share$(0.40) $(0.01) $1.13  $(0.09) $(0.03) - $0.00
 Excluding:
   Stock-based compensation expense0.29  0.18  0.47  0.31  0.23  
   Amortization of acquisition-related intangible assets0.01  0.02  0.02  0.03  0.01  
   Acquisition, integration and reorganization related costs0.18  0.07  0.26  0.22  0.08  
   Amortization of capitalized software0.05  0.09  0.10  0.18  0.05  
IP restructuring tax expense (benefit)(1)
0.01  —  (1.41) —  —  
Tax contingency adjustment(2)
0.18  —  0.02  —  —  
   Income tax adjustments(3)
(0.07) (0.05) (0.08) (0.14) (0.06) 
Impact of dilution(4)
(0.01) (0.01) —  —  —  
 Non-GAAP Diluted Earnings Per Share$0.24  $0.29  $0.51  $0.51  $0.28 - $0.31


1.The Company’s GAAP effective tax rate for the three and six months ended June 30, 2020 includes $156 million of discrete tax benefit related to an intra-entity asset transfer of certain of its intellectual property to one of its Irish subsidiaries, which occurred on January 1, 2020. The one-time tax benefit for this intra-entity asset transfer of $157 million was recorded as a deferred tax asset for GAAP reporting purposes in the first quarter of 2020 but was excluded from non-GAAP results. This was offset by $1 million of tax expense related to withholding taxes associated with the same intra-entity transfer recorded in the second quarter of 2020.

2.The Company’s forecasted full-year 2020 GAAP marginal effective tax rate includes $3 million of tax expense related to tax contingencies pursuant to FIN 48. For GAAP purposes, this is a component of the marginal rate and is recognized as tax benefit or expense based on the Company’s reported GAAP pre-tax income or loss for the quarter. To more accurately reflect the impact of the expense on a quarterly basis for non-GAAP purposes, the $3 million of tax expense is being recognized ratably each quarter instead of being included in the marginal effective rate.

3.Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. As a result of these adjustments, the Company’s non-GAAP effective tax rate for the three months ended June 30 was 50.9% for 2020 and 26.1% for 2019. For the six months ended June 30, the Company’s non-GAAP effective tax rate was 27.3% for 2020 and 26.8% for 2019.

4.Represents the impact to earnings per share as a result of moving from basic to diluted shares.


Note to Investors
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs and projections of expected future financial and operating performance, business trends, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially, including the factors discussed in this release and those relating to: the global economic environment and business conditions in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business; fluctuations in our operating results, including as a result of the pace and extent to which customers shift from perpetual to subscription-based licenses; our ability to realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including foreign currency fluctuations; risks associated with the ongoing and uncertain impact of COVID-19 on our business, financial condition and operating results, including the impact of COVID-19 on our customers and suppliers; risks associated with data privacy, cyberattacks and maintaining secure and effective internal information technology and control systems; the timely and successful development, production or acquisition and market acceptance of new and existing products and services; tax rates; turnover of workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful exploitation of new alliance and acquisition opportunities ; recurring revenue may decline or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2019 and subsequent quarterly reports on Forms 10-Q, as well as the Company’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.









About Teradata
        
Teradata transforms how businesses work and people live through the power of data. Teradata leverages all of the data, all of the time, so you can analyze anything, deploy anywhere, and deliver analytics that matter. And we do it on-premises, in the cloud, or anywhere in between. We call this pervasive data intelligence, powered by the cloud. It’s the answer to the complexity, cost, and inadequacy of today’s approach to analytics. Get the answer at teradata.com.

Teradata and the Teradata logo are trademarks or registered trademarks of Teradata Corporation and/or its affiliates in the U.S. and worldwide.



# # #





SCHEDULE A

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(in millions, except per share amounts - unaudited)
For the Period Ended June 30
Three MonthsSix Months
20202019% Chg20202019% Chg
Revenue
Recurring$358  $338  %$703  $669  %
Perpetual software licenses and hardware17  29  (41)%31  60  (48)%
Consulting services82  111  (26)%157  217  (28)%
Total revenue457  478  (4)%891  946  (6)%
Gross profit
Recurring 242  231  467  456  
% of Revenue67.6 %68.3 %66.4 %68.2 %
Perpetual software licenses and hardware  11   
% of Revenue35.3 %10.3 %35.5 %15.0 %
Consulting services   (5) 
% of Revenue9.8 %1.8 %1.9 %(2.3)%
Total gross profit256  236  481  460  
% of Revenue56.0 %49.4 %54.0 %48.6 %
Selling, general and administrative expenses165  145  323  296  
Research and development expenses83  81  156  159  
Income from operations 10    
% of Revenue1.8 %2.1 %0.2 %0.5 %
Other expense, net(11) (5) (19) (10) 
(Loss) income before income taxes(3)  (17) (5) 
% of Revenue(0.7)%1.0 %(1.9)%(0.5)%
Income tax expense (benefit)40   (142)  
% Tax rate(1,333.3)%120.0 %835.3 %(120.0)%
Net (loss) income$(43) $(1) $125  $(11) 
% of Revenue(9.4)%(0.2)%14.0 %(1.2)%
Net (loss) income per common share
Basic $(0.40) $(0.01) 1.14  (0.09) 
Diluted$(0.40) $(0.01) 1.13  (0.09) 
Weighted average common shares outstanding
Basic108.5  115.5  109.4  116.3  
Diluted108.5  115.5  110.6  116.3  




SCHEDULE B

TERADATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions - unaudited)
June 30, 2020December 31, 2019June 30, 2019
Assets
Current assets
Cash and cash equivalents$494  $494  $635  
Accounts receivable, net339  398  377  
Inventories26  31  35  
Other current assets89  91  82  
Total current assets948  1,014  1,129  
Property and equipment, net337  350  317  
Capitalized software, net25  36  49  
Right of use assets- operating lease, net46  51  58  
Goodwill395  396  396  
Capitalized contract costs, net88  91  63  
Deferred income taxes236  87  70  
Other assets27  32  41  
Total assets$2,102  $2,057  $2,123  
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt$31  $25  $25  
Current portion of finance lease liability69  55  32  
Current portion of operating lease liability18  20  20  
Accounts payable62  66  102  
Payroll and benefits liabilities119  157  114  
Deferred revenue518  472  498  
Other current liabilities76  91  74  
Total current liabilities893  886  865  
Long-term debt436  454  466  
Finance lease liability75  75  54  
Operating lease liability33  38  44  
Pension and other postemployment plan liabilities135  137  102  
Long-term deferred revenue41  61  82  
Deferred tax liabilities   
Other liabilities137  138  139  
Total liabilities1,756  1,795  1,756  
Stockholders' equity
Common stock   
Paid-in capital1,603  1,545  1,491  
Accumulated deficit(1,093) (1,143) (1,009) 
Accumulated other comprehensive loss(165) (141) (116) 
Total stockholders' equity346  262  367  
Total liabilities and stockholders' equity$2,102  $2,057  $2,123  




SCHEDULE C

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions - unaudited)

For the Period Ended June 30
Three MonthsSix Months
2020201920202019
Operating activities
Net (loss) income $(43) $(1) $125  $(11) 
Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
Depreciation and amortization43  40  85  77  
Stock-based compensation expense31  22  52  37  
Deferred income taxes—  (2) (149) —  
Changes in assets and liabilities:
Receivables109  68  59  211  
Inventories  17   (7) 
Current payables and accrued expenses11  16  (32) (155) 
Deferred revenue(40) (89) 26  (15) 
Other assets and liabilities17  (16) (31) (33) 
Net cash provided by operating activities130  55  140  104  
Investing activities
Expenditures for property and equipment(13) (12) (23) (27) 
Additions to capitalized software(2) (1) (4) (2) 
Net cash used in investing activities(15) (13) (27) (29) 
Financing activities
Repurchases of common stock(2) (119) (75) (175) 
Repayments of long-term borrowings(7) (6) (13) (6) 
Payments of finance leases(16) (6) (25) (9) 
Other financing activities, net   36  
Net cash used in financing activities(19) (128) (107) (154) 
Effect of exchange rate changes on cash and cash equivalents (1) (7) —  
Increase (decrease) in cash, cash equivalents and restricted cash99  (87) (1) (79) 
Cash, cash equivalents and restricted cash at beginning of period396  724  496  716  
Cash, cash equivalents and restricted cash at end of period$495  $637  $495  $637  

Supplemental cash flow disclosure:
Assets acquired by finance leases$24  $33  $39  $48  
Assets acquired by operating leases$ $ $ $ 




SCHEDULE D

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions - unaudited)
For the Three Months Ended June 30For the Six Months Ended June 30
20202019% Change As Reported
%
 Change Constant Currency(2)
20202019% Change As Reported
%
 Change Constant Currency(2)
Segment Revenue
Americas$259  $269  (4)%(2)%$503  $538  (7)%(5)%
EMEA118  122  (3)%(1)%236  235  0%3%
APJ80  87  (8)%(7)%152  173  (12)%(10)%
Total segment revenue457  478  (4)%(3)%891  946  (6)%(4)%
Segment gross profit
Americas 161  158  305  315  
% of Revenue62.2 %58.7 %60.6 %58.6 %
EMEA67  57  128  107  
% of Revenue56.8 %46.7 %54.2 %45.5 %
APJ41  37  71  71  
% of Revenue51.3 %42.5 %46.7 %41.0 %
Total segment gross profit269  252  504  493  
% of Revenue58.9 %52.7 %56.6 %52.1 %
Reconciling items(1)
(13) (16) (23) (33) 
Total gross profit$256  $236  $481  $460  
% of Revenue56.0 %49.4 %54.0 %48.6 %
(1) Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items.
'(2) The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates.

v3.20.2
Document and Entity Information Document
Aug. 06, 2020
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 06, 2020
Entity Registrant Name TERADATA CORP /DE/
Entity File Number 001-33458
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
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol TDC
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000816761
Amendment Flag false