Teradata Corp /De

In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company s balance sheet, repurchase of Company stock and repay the Company s debt obligations and adjusted free cash flow adjusts the impact of the SAP settlement.

SEC original ↗Teradata Corp /De — Earnings release (8-K exhibit)EX-99Aug 4, 2026

Teradata defines free cash flow as cash provided by used in operating activities, less total capital expenditures and adjusted free cash flow as free cash flow less the gross proceeds from the SAP settlement, plus the non-recurring legal and other expenses incurred in connection with the SAP litigation and resulting settlement, and taxes paid specific to the settlement agreement.

SEC original ↗Teradata Corp /De — Earnings release (8-K exhibit)EX-99Aug 4, 2026

On June 24, 2026, the Company repaid the outstanding balance of its term loan and terminated the related five -year Secured Overnight Financing Rate ("SOFR") based interest rate swap (initial notional amount of $ 450 million, stepping down per the term loan amortization schedule) .

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

As a result of the debt extinguishment, the forecasted interest payments previously designated as the hedged transactions were no longer probable of occurring and the Company discontinued hedge accounting.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

During three months ended June 30, 2026, the Company restructured its net investment hedge cross- 15 Table of Contents currency swaps (aggregate notional value of 143 million/$ 150 million) and terminated its interest rate swap in connection with the repayment of its term loan.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

Debt On June 24, 2026, the Company entered into a Credit Agreement with Bank of America, N.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q .

SEC original ↗Teradata Corp /De — Earnings release (8-K exhibit)EX-99Aug 4, 2026

In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company s balance sheet, repurchase of Company stock and repay the Company s debt obligations and adjusted free cash flow adjusts the impact of the SAP settlement.

SEC original ↗Teradata Corp /De — Earnings release (8-K exhibit)EX-99Aug 4, 2026

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.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

In addition, industry-wide capacity allocations and production prioritization by component manufacturers, including manufacturers of NAND Flash Memory ("NAND") and Dynamic Random Access Memory ("DRAM") technologies, driven in part by increasing demand for artificial intelligence infrastructure, may constrain the availability of critical components, increase costs, extend lead times and adversely affect the Company's ability to manufacture and deliver products to customers in a timely manner.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

19 Table of Contents Overview At Teradata Corporation ("we," "us," "Teradata," or the "Company"), we are focused on helping organizations activate the intelligence in their enterprise and turn the insights from across their organization into outcomes.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

Teradata defines free cash flow as cash provided by used in operating activities, less total capital expenditures and adjusted free cash flow as free cash flow less the gross proceeds from the SAP settlement, plus the non-recurring legal and other expenses incurred in connection with the SAP litigation and resulting settlement, and taxes paid specific to the settlement agreement.

SEC original ↗Teradata Corp /De — Earnings release (8-K exhibit)EX-99Aug 4, 2026

Legal Proceedings 30 Item 1A.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

On February 19, 2026, Teradata entered into a Settlement Agreement (the "SAP Settlement Agreement") with SAP, pursuant to which the Parties agreed, among other things, to (i) resolve all past and pending litigation between the Parties, including the SAP Litigation and (ii) mutual releases of all claims and liabilities asserted or that could have been asserted in the SAP Litigation.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

Additionally, the Company recorded $ 121 million in selling, general and administrative expenses for the associated fees and expenses for the SAP Settlement Agreement, including a customary contingent fee arrangement and other outstanding legal fees incurred in connection with the SAP Litigation (the "SAP Legal Settlement Fees").

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

For the six months ended June 30, 2026, the Compa ny recorded $ 67 million of net discrete tax expense, a majority of which related to the tax expense impact resulting from the receipt of the SAP Legal Settlement Amount less $ 121 million of legal fees recognized in the first quarter of 2026 for the SAP Litigation, for a net taxable amount of $ 359 million, as well as the tax benefit related to research and development costs associated with NCTI, referenced above .

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026

Commitments and Contingencies Legal Proceedings.

SEC original ↗Teradata Corp /De — 10-Q Quarterly report10-QAug 5, 2026