diff --git a/heat/engine/resource.py b/heat/engine/resource.py
index ae213b7a69..ea1f288cad 100644
--- a/heat/engine/resource.py
+++ b/heat/engine/resource.py
@@ -985,13 +985,6 @@ class Resource(object):
                 elif 'state' in details:
                     # this is from watchrule
                     return 'alarm state changed to %(state)s' % details
-                elif 'deploy_status_code' in details:
-                    # this is for SoftwareDeployment
-                    if details['deploy_status_code'] == 0:
-                        return 'deployment succeeded'
-                    else:
-                        return ('deployment failed '
-                                '(%(deploy_status_code)s)' % details)
 
             return 'Unknown'
         if not callable(getattr(self, 'handle_signal', None)):
diff --git a/heat/engine/resources/software_config/software_deployment.py b/heat/engine/resources/software_config/software_deployment.py
index 862c971648..26ddfe27c1 100644
--- a/heat/engine/resources/software_config/software_deployment.py
+++ b/heat/engine/resources/software_config/software_deployment.py
@@ -440,6 +440,9 @@ class SoftwareDeployment(signal_responder.SignalResponder):
             status_reasons[self.STATUS_CODE] = _(
                 'Deployment exited with non-zero status code: %s'
             ) % details.get(self.STATUS_CODE)
+            event_reason = 'deployment failed (%s)' % status_code
+        else:
+            event_reason = 'deployment succeeded'
 
         for output in sc.outputs or []:
             out_key = output['name']
@@ -448,6 +451,7 @@ class SoftwareDeployment(signal_responder.SignalResponder):
                 if output.get('error_output', False):
                     status = self.FAILED
                     status_reasons[out_key] = details[out_key]
+                    event_reason = 'deployment failed'
 
         for out_key in self.ATTRIBUTES:
             ov[out_key] = details.get(out_key)
@@ -461,6 +465,8 @@ class SoftwareDeployment(signal_responder.SignalResponder):
             status = self.COMPLETE
             status_reason = _('Outputs received')
         sd.update(output_values=ov, status=status, status_reason=status_reason)
+        # Return a string describing the outcome of handling the signal data
+        return event_reason
 
     def FnGetAtt(self, key, *path):
         '''
diff --git a/heat/tests/test_signal.py b/heat/tests/test_signal.py
index fcfededa15..cbef011429 100644
--- a/heat/tests/test_signal.py
+++ b/heat/tests/test_signal.py
@@ -263,16 +263,6 @@ class SignalTest(HeatTestCase):
         none_details = None
         none_expected = 'No signal details provided'
 
-        # signal from a successful deployment
-        sds_details = {'deploy_stdout': 'foo', 'deploy_stderr': 'bar',
-                       'deploy_status_code': 0}
-        sds_expected = 'deployment succeeded'
-
-        # signal from a failed deployment
-        sdf_details = {'deploy_stdout': 'foo', 'deploy_stderr': 'bar',
-                       'deploy_status_code': -1}
-        sdf_expected = 'deployment failed (-1)'
-
         # to confirm we get a string reason
         self.m.StubOutWithMock(generic_resource.SignalResource,
                                '_add_event')
@@ -284,15 +274,11 @@ class SignalTest(HeatTestCase):
             'signal', 'COMPLETE', str_expected).AndReturn(None)
         generic_resource.SignalResource._add_event(
             'signal', 'COMPLETE', none_expected).AndReturn(None)
-        generic_resource.SignalResource._add_event(
-            'signal', 'COMPLETE', sds_expected).AndReturn(None)
-        generic_resource.SignalResource._add_event(
-            'signal', 'COMPLETE', sdf_expected).AndReturn(None)
 
         self.m.ReplayAll()
 
         for test_d in (ceilo_details, watch_details, str_details,
-                       none_details, sds_details, sdf_details):
+                       none_details):
             rsrc.signal(details=test_d)
 
         self.m.VerifyAll()
diff --git a/heat/tests/test_software_deployment.py b/heat/tests/test_software_deployment.py
index e9189defdd..dae3cdfeb7 100644
--- a/heat/tests/test_software_deployment.py
+++ b/heat/tests/test_software_deployment.py
@@ -463,7 +463,8 @@ class SoftwareDeploymentTest(HeatTestCase):
             'foo': 'bar',
             'deploy_status_code': 0
         }
-        self.deployment.handle_signal(details)
+        ret = self.deployment.handle_signal(details)
+        self.assertEqual('deployment succeeded', ret)
         args = sd.update.call_args[1]
         self.assertEqual({
             'output_values': {
@@ -493,7 +494,8 @@ class SoftwareDeploymentTest(HeatTestCase):
             'foo': 'bar',
             'deploy_status_code': '0'
         }
-        self.deployment.handle_signal(details)
+        ret = self.deployment.handle_signal(details)
+        self.assertEqual('deployment succeeded', ret)
         args = sd.update.call_args[1]
         self.assertEqual({
             'output_values': {
@@ -520,7 +522,8 @@ class SoftwareDeploymentTest(HeatTestCase):
         self.deployments.get.return_value = sd
         self.software_configs.get.return_value = sc
         details = {'failed': 'no enough memory found.'}
-        self.deployment.handle_signal(details)
+        ret = self.deployment.handle_signal(details)
+        self.assertEqual('deployment failed', ret)
         args = sd.update.call_args[1]
         self.assertEqual({
             'output_values': {