Business Segments

12 Months Ended

Dec. 31, 2011

Business Segments [Abstract]

Business Segments

15. Business Segments

Authoritative accounting guidance establishes standards for reporting information about operating segments in annual financial statements and requires selected information about operating segments in interim financial reports issued to stockholders. Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

We have organized our business around groups of similar customers which resulted in four reportable segments: clinical solutions, hospital solutions, health solutions and prepackaged medications. The clinical solutions segment derives its revenue from the sale of clinical and practice management solutions and related services to physicians. Clinical solutions include electronic medical records software, practice management software, related installation and training services, electronic claims administration services and the resale of related hardware. The hospital solutions segment reflects the operations, subsequent to the completion of the merger, August 24, 2010, of our acute care hospital solutions acquired in the Eclipsys Merger. The hospital solutions segment derives its revenue from the sale of clinical and practice management solutions and related services to hospital providers. Hospital solutions include software, related installation and training services, the resale of related hardware, hosting of our software and outsourced solutions. The health solutions segment derives its revenue from the sale of clinical and practice management solutions and related services to hospital and homecare providers. Health solutions include software, related installation and training services, the resale of related hardware and hosting of our software. The prepackaged medications segment derived its revenue from the prepackaged medications business, including wholesale medication sales and on-site medication dispensing. There was no activity in the prepackaged medications segment prior to the 2008 Transactions, as this was a legacy Allscripts segment. As discussed in Note 2, the prepackaged medications business was disposed in March 2009.

We do not track our assets by segment or allocate interest and income taxes to our operating segments. In addition, we present corporate selling, general, and administrative expenses and amortization of intangibles as unallocated corporate costs since these costs are not included in the evaluation of the financial performance of the operating segments.

(In thousands)	Year Ended December 31, 2011			Seven Months Ended December 31, 2010			Year Ended May 31,
							2010			2009
Revenue
Clinical solutions		$686,600			$369,312			$593,061			$457,402
Hospital solutions		628,314			174,677			0			0
Health solutions		129,163			69,320			111,441			76,616
Prepackaged medications		0			0			0			14,421
Total revenue		$1,444,077			$613,309			$704,502			$548,439
Income from operations
Clinical solutions		$168,377			$87,466			$164,492			$118,552
Hospital solutions		138,440			24,236			0			0
Health solutions		70,975			35,590			58,853			30,713
Prepackaged medications		0			0			0			1,121
Unallocated corporate expenses		(241,248	)		(141,407	)		(118,762	)		(104,452	)
Total income from operations		$136,544			$5,885			$104,583			$45,934