TERADATA CORP /DE/TDC

TERADATA CORP /DE/ Goodwill & Intangibles Disclosure

10-KFiled Feb 27, 20262 min read
Goodwill and Acquired Intangible Assets
The following table identifies the activity relating to goodwill by our new operating segments:
In millionsBalance December 31,
2024		Currency
Translation
Adjustments		Balance December 31,
2025
Goodwill
Product Sales$387 $5 $392 
Consulting Services7 — 7 
Total goodwill$394 $5 $399 
On August 5, 2024, Teradata announced that it realigned its sales function and initiated global restructuring to optimize operations. Due to these organizational changes, Teradata manages its business under two segments, which are also the Company’s operating segments: (1) Product Sales and (2) Consulting Services. Teradata’s Product Sales segment represents the results for the Recurring Revenue and Perpetual Software Licenses, Hardware and Other line items and the Consulting Services segment represents the Consulting Services line item, each as disclosed in the Company’s financial statements and in the tables in this Form 10-K.
In the fourth quarter of 2025, the Company performed its annual impairment test and determined that no impairment to the carrying value of goodwill was necessary as each reporting unit's fair value was above its carrying value. The Company reviewed its two reporting units in its 2025 goodwill impairment assessment, as each of the operating segments were considered separate reporting units for purposes of testing.
Acquired intangible assets were specifically identified when acquired and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows:
December 31,
2025
In millionsAmortization
Life (in Years)		Gross Carrying
Amount		Accumulated Amortization
Amount
Acquired intangible assets
Intellectual property/developed technology5$14 $(7)
The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is:
ActualFor the years ended (estimated)
In millions202520262027202820292030
Amortization expense$3 $3 $3 $1 $— $— 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 21, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 26, 2019
2017Feb 23, 2018
2016Feb 27, 2017
2015Feb 26, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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