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As of | |||||||
In millions | March 31, 2015 | December 31, 2014 | |||||
Inventories | |||||||
Finished goods | $ | 25 | $ | 21 | |||
Service parts | 17 | 17 | |||||
Total inventories | $ | 42 | $ | 38 | |||
Deferred revenue | |||||||
Deferred revenue, current | $ | 492 | $ | 370 | |||
Long-term deferred revenue | 16 | 18 | |||||
Total deferred revenue | $ | 508 | $ | 388 |
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In millions | Balance, December 31, 2014 | Adjustments | Currency Translation Adjustments | Balance, March 31, 2015 | |||||||||||
Goodwill | |||||||||||||||
Data and Analytics | $ | 351 | $ | (3 | ) | $ | (3 | ) | $ | 345 | |||||
Marketing Applications | 597 | — | (18 | ) | 579 | ||||||||||
Total goodwill | $ | 948 | $ | (3 | ) | $ | (21 | ) | $ | 924 |
March 31, 2015 | December 31, 2014 | |||||||||||||||||
In millions | Amortization Life (in Years) | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | |||||||||||||
Acquired intangible assets | ||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 186 | $ | (105 | ) | $ | 186 | $ | (95 | ) | |||||||
Customer relationships | 3 to 10 | 77 | (39 | ) | 77 | (35 | ) | |||||||||||
Trademarks/trade names | 5 | 1 | (1 | ) | 1 | (1 | ) | |||||||||||
In-process research and development | 5 | 5 | (2 | ) | 5 | (2 | ) | |||||||||||
Total | $ | 269 | $ | (147 | ) | $ | 269 | $ | (133 | ) |
Three Months Ended March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Amortization expense | $ | 11 | $ | 11 |
Actual | For the years ended (estimated) | |||||||||||||||||||||||
In millions | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||
Amortization expense | $ | 47 | $ | 42 | $ | 33 | $ | 25 | $ | 14 | $ | 11 |
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As of | |||||||
In millions | March 31, 2015 | December 31, 2014 | |||||
Contract notional amount of foreign exchange forward contracts | $ | 94 | $ | 116 | |||
Net contract notional amount of foreign exchange forward contracts | $ | 2 | $ | 17 |
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In millions | 2015 | 2014 | |||||
Warranty reserve liability | |||||||
Beginning balance at January 1 | $ | 7 | $ | 8 | |||
Provisions for warranties issued | 2 | 3 | |||||
Settlements (in cash or in kind) | (3 | ) | (4 | ) | |||
Balance at March 31 | $ | 6 | $ | 7 |
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Fair Value Measurements at Reporting Date Using | |||||||||||||||
In millions | March 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market funds | $ | 430 | $ | 430 | $ | — | $ | — | |||||||
Available-for-sale securities | 69 | 69 | — | — | |||||||||||
Total assets at fair value | $ | 499 | $ | 499 | $ | — | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
In millions | December 31, 2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market funds | $ | 393 | $ | 393 | $ | — | $ | — | |||||||
Available-for-sale securities | 78 | 78 | — | — | |||||||||||
Total assets at fair value | $ | 471 | $ | 471 | $ | — | $ | — |
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Three Months Ended March 31, | |||||||
In millions | 2015 | 2014 | |||||
Segment revenue | |||||||
Data and Analytics | $ | 536 | $ | 577 | |||
Marketing Applications | 46 | 51 | |||||
Total revenue | 582 | 628 | |||||
Segment gross margin | |||||||
Data and Analytics | 269 | 322 | |||||
Marketing Applications | 18 | 23 | |||||
Total segment gross margin | 287 | 345 | |||||
Stock-based compensation expense | (4 | ) | (3 | ) | |||
Amortization of acquisition-related intangible assets | (5 | ) | (5 | ) | |||
Acquisition, integration and reorganization-related costs | (1 | ) | (4 | ) | |||
Total gross margin | 277 | 333 | |||||
Selling, general and administrative expenses | 184 | 188 | |||||
Research and development costs | 63 | 56 | |||||
Income from operations | $ | 30 | $ | 89 |
Three Months Ended March 31, | |||||||
In millions | 2015 | 2014 | |||||
Products (software and hardware)(1) | $ | 241 | $ | 273 | |||
Consulting services | 172 | 189 | |||||
Maintenance services | 169 | 166 | |||||
Total services | 341 | 355 | |||||
Total revenue | $ | 582 | $ | 628 |
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As of | |||||||
In millions | March 31, 2015 | December 31, 2014 | |||||
Inventories | |||||||
Finished goods | $ | 25 | $ | 21 | |||
Service parts | 17 | 17 | |||||
Total inventories | $ | 42 | $ | 38 | |||
Deferred revenue | |||||||
Deferred revenue, current | $ | 492 | $ | 370 | |||
Long-term deferred revenue | 16 | 18 | |||||
Total deferred revenue | $ | 508 | $ | 388 |
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In millions | Balance, December 31, 2014 | Adjustments | Currency Translation Adjustments | Balance, March 31, 2015 | |||||||||||
Goodwill | |||||||||||||||
Data and Analytics | $ | 351 | $ | (3 | ) | $ | (3 | ) | $ | 345 | |||||
Marketing Applications | 597 | — | (18 | ) | 579 | ||||||||||
Total goodwill | $ | 948 | $ | (3 | ) | $ | (21 | ) | $ | 924 |
March 31, 2015 | December 31, 2014 | |||||||||||||||||
In millions | Amortization Life (in Years) | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | Gross Carrying Amount | Accumulated Amortization and Currency Translation Adjustments | |||||||||||||
Acquired intangible assets | ||||||||||||||||||
Intellectual property/developed technology | 1 to 7 | $ | 186 | $ | (105 | ) | $ | 186 | $ | (95 | ) | |||||||
Customer relationships | 3 to 10 | 77 | (39 | ) | 77 | (35 | ) | |||||||||||
Trademarks/trade names | 5 | 1 | (1 | ) | 1 | (1 | ) | |||||||||||
In-process research and development | 5 | 5 | (2 | ) | 5 | (2 | ) | |||||||||||
Total | $ | 269 | $ | (147 | ) | $ | 269 | $ | (133 | ) |
Three Months Ended March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Amortization expense | $ | 11 | $ | 11 |
Actual | For the years ended (estimated) | |||||||||||||||||||||||
In millions | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||
Amortization expense | $ | 47 | $ | 42 | $ | 33 | $ | 25 | $ | 14 | $ | 11 |
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As of | |||||||
In millions | March 31, 2015 | December 31, 2014 | |||||
Contract notional amount of foreign exchange forward contracts | $ | 94 | $ | 116 | |||
Net contract notional amount of foreign exchange forward contracts | $ | 2 | $ | 17 |
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In millions | 2015 | 2014 | |||||
Warranty reserve liability | |||||||
Beginning balance at January 1 | $ | 7 | $ | 8 | |||
Provisions for warranties issued | 2 | 3 | |||||
Settlements (in cash or in kind) | (3 | ) | (4 | ) | |||
Balance at March 31 | $ | 6 | $ | 7 |
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Fair Value Measurements at Reporting Date Using | |||||||||||||||
In millions | March 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market funds | $ | 430 | $ | 430 | $ | — | $ | — | |||||||
Available-for-sale securities | 69 | 69 | — | — | |||||||||||
Total assets at fair value | $ | 499 | $ | 499 | $ | — | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
In millions | December 31, 2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Money market funds | $ | 393 | $ | 393 | $ | — | $ | — | |||||||
Available-for-sale securities | 78 | 78 | — | — | |||||||||||
Total assets at fair value | $ | 471 | $ | 471 | $ | — | $ | — |
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Three Months Ended March 31, | |||||||
In millions | 2015 | 2014 | |||||
Segment revenue | |||||||
Data and Analytics | $ | 536 | $ | 577 | |||
Marketing Applications | 46 | 51 | |||||
Total revenue | 582 | 628 | |||||
Segment gross margin | |||||||
Data and Analytics | 269 | 322 | |||||
Marketing Applications | 18 | 23 | |||||
Total segment gross margin | 287 | 345 | |||||
Stock-based compensation expense | (4 | ) | (3 | ) | |||
Amortization of acquisition-related intangible assets | (5 | ) | (5 | ) | |||
Acquisition, integration and reorganization-related costs | (1 | ) | (4 | ) | |||
Total gross margin | 277 | 333 | |||||
Selling, general and administrative expenses | 184 | 188 | |||||
Research and development costs | 63 | 56 | |||||
Income from operations | $ | 30 | $ | 89 |
Three Months Ended March 31, | |||||||
In millions | 2015 | 2014 | |||||
Products (software and hardware)(1) | $ | 241 | $ | 273 | |||
Consulting services | 172 | 189 | |||||
Maintenance services | 169 | 166 | |||||
Total services | 341 | 355 | |||||
Total revenue | $ | 582 | $ | 628 |
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