Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Reimbursements for Out-of-Pocket Expenses Incurred as Client Services Revenue

We record reimbursements for out-of-pocket expenses incurred as client services revenue in our consolidated statements of operations. These amounts totaled:

	Year Ended December 31,
(In thousands)	2017		2016		2015
Reimbursements for out-of-pocket expenses incurred	$	10,276	$	9,528	$	12,873

Revenue Earned on Contracts in Excess of Billings Included in Accounts Receivable and Other Assets

The following table summarizes revenue earned on contracts in excess of billings, both the current and non-current portions, which are included in the balances of accounts receivable and other assets, respectively, in our consolidated balance sheets. Billings are expected to occur according to the contract terms.

	December 31,
(In thousands)	2017		2016
Revenue earned on contracts in excess of billings
Unbilled revenue (current)	$	133,368	$	98,917
Unbilled revenue (long-term)		0		0
Total revenue earned on contracts in excess of billings	$	133,368	$	98,917

Summary of Financial Assets and Liabilities Measured at Fair value on Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of the respective balance sheet dates:

	Balance Sheet	December 31, 2017										December 31, 2016
(In thousands)	Classifications	Level 1		Level 2		Level 3			Total			Level 1		Level 2		Level 3			Total
NantHealth Common Stock	Available for sale marketable securities	$	0	$	0	$	0		$	0		$	149,100	$	0	$	0		$	149,100
1.25% Call Option	Other assets		0		0		46,578			46,578			0		0		17,080			17,080
1.25% Embedded cash conversion option	Other liabilities		0		0		(47,777	)		(47,777	)		0		0		(17,659	)		(17,659	)
Foreign exchange derivative assets	Prepaid expenses and other current assets		0		1,136		0			1,136			0		1,021		0			1,021
Total		$	0	$	1,136	$	(1,199	)	$	(63	)	$	149,100	$	1,021	$	(579	)	$	149,542

Unamortized Balances of Capitalized Software

The unamortized balances of capitalized software were as follows:

	December 31,
(In thousands)	2017			2016
Software development costs	$	318,824		$	321,265
Less: accumulated amortization		(96,635	)		(157,386	)
Software development costs, net	$	222,189		$	163,879

Capitalized Software Development Costs, Write Offs Included in Asset Impairment Changes and Amortization of Capitalized Software Development Costs Included in Cost of Revenue

Capitalized software development costs, write-offs included in asset impairment changes and amortization of capitalized software development costs included in cost of revenue are shown in the table below. Capitalized software development costs for the year ended December 31, 2016 include $44 million of third-party software purchases to supplement our internal software development efforts, of which $24 million was accrued as of December 31, 2016 and paid during 2017.

	Year Ended December 31,
(In thousands)	2017		2016		2015
Capitalized software development costs	$	115,394	$	126,003	$	46,464
Write-offs of capitalized software development costs	$	0	$	4,625	$	0
Amortization of capitalized software development costs	$	57,084	$	43,274	$	46,842

Balance of Redeemable Convertible Non-Controlling Interest

A rollforward of the balance of redeemable convertible non-controlling interest for the year ended December 31, 2017 follows:

(In thousands)
Balance as of December 31, 2016	$	387,685
Issuance of redeemable convertible non-controlling interest		0
Accretion of redemption preference on redeemable convertible non-controlling interest		43,850
Balance as of December 31, 2017	$	431,535

Calculations of Earnings (Loss) Per Share

The calculations of earnings (loss) per share are as follows:

	Year Ended December 31,
(In thousands, except per share amounts)	2017			2016			2015
Basic Loss per Common Share:
(Loss) income from continuing operations, net of tax	$	(158,851	)	$	3,030		$	(2,056	)
Less: Net income attributable to non-controlling interests	$	1,566		$	(146	)	$	(170	)
Less: Accretion of redemption preference on redeemable convertible non-controlling interest - Netsmart	$	(43,850	)	$	(28,536	)	$	0
Net loss from continuing operations attributable to Allscripts Healthcare Solutions, Inc. stockholders	$	(201,135	)	$	(25,652	)	$	(2,226	)
Net income from discontinued operations attributable to Allscripts Healthcare Solutions, Inc. stockholders	$	4,676		$	0		$	0
Net loss attributable to Allscripts Healthcare Solutions, Inc. stockholders	$	(196,459	)	$	(25,652	)	$	(2,226	)

Weighted-average common shares outstanding		180,830			186,188			185,082

Basic Loss from continuing operations per Common Share	$	(1.12	)	$	(0.14	)	$	(0.01	)
Basic Income from discontinued operations per Common Share	$	0.03		$	0		$	0
Net loss attributable to Allscripts Healthcare Solutions, Inc. stockholders per Common Share	$	(1.09	)	$	(0.14	)	$	(0.01	)

Diluted Loss per Common Share:
(Loss) income from continuing operations, net of tax	$	(158,851	)	$	3,030		$	(2,056	)
Less: Net income attributable to non-controlling interests	$	1,566		$	(146	)	$	(170	)
Less: Accretion of redemption preference on redeemable convertible non-controlling interest - Netsmart	$	(43,850	)	$	(28,536	)	$	0
Net loss from continuing operations attributable to Allscripts Healthcare Solutions, Inc. stockholders	$	(201,135	)	$	(25,652	)	$	(2,226	)
Net income from discontinued operations attributable to Allscripts Healthcare Solutions, Inc. stockholders	$	4,676		$	0		$	0
Net loss attributable to Allscripts Healthcare Solutions, Inc. stockholders	$	(196,459	)	$	(25,652	)	$	(2,226	)

Weighted-average common shares outstanding		180,830			186,188			185,082
Dilutive effect of stock options, restricted stock unit awards and warrants		0			0			0
Weighted-average common shares outstanding assuming dilution		180,830			186,188			185,082

Diluted Loss from continuing operations per Common Share	$	(1.12	)	$	(0.14	)	$	(0.01	)
Diluted Income from discontinued operations per Common Share	$	0.03		$	0		$	0
Net loss attributable to Allscripts Healthcare Solutions, Inc. stockholders per Common Share	$	(1.09	)	$	(0.14	)	$	(0.01	)

Anti-Dilutive Stock Options, Restricted Stock Unit Awards and Warrants Excluded from Computation of Diluted Earnings (Loss) Per Share

The following stock options, restricted stock unit awards and warrants are not included in the computation of diluted earnings (loss) per share as the effect of including such stock options, restricted stock unit awards and warrants in the computation would be anti-dilutive:

Year Ended December 31,

(In thousands)

2017

2016

2015

Shares subject to anti-dilutive stock options, restricted stock unit awards and

warrants excluded from calculation

26,515

25,277

25,063

Company Contributions to Employee Benefit Plan

We provide employees with defined contribution savings plans. We recognize expense for our contributions to the savings plans at the time employees make contributions to the plans and we contributed the following amounts to these plans:

	Year Ended December 31,
(In thousands)	2017		2016		2015
Company contributions to employee benefit plans	$	18,861	$	18,329	$	16,397