Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We have two operating segments, Domestic and Global. Revenues are derived primarily from the sale of clinical, financial and administrative information systems and solutions. The cost of revenues includes the cost of third party consulting services, computer hardware, devices and sublicensed software purchased from manufacturers for delivery to clients. It also includes the cost of hardware maintenance and sublicensed software support subcontracted to the manufacturers. Operating expenses incurred by the geographic business segments consist of sales and client service expenses including salaries of sales and client service personnel, communications expenses and unreimbursed travel expenses. Performance of the segments is assessed at the operating earnings level and, therefore, the segment operations have been presented as such. “Other” includes expenses that have not been allocated to the operating segments, such as software development, marketing, general and administrative, share-based compensation expense and depreciation. We manage our operating segments to the operating earnings level. Items such as interest, income taxes, capital expenditures and total assets are managed at the consolidated level and thus are not included in our operating segment disclosures.

Accounting policies for each of the reportable segments are the same as those used on a consolidated basis. The following table presents a summary of our operating segments and other expense for the three and six months ended June 30, 2012 and July 2, 2011:

(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2012
Revenues	$	561,658	$	75,700	$	—		$	637,358
Cost of revenues	137,652		9,848		—			147,500
Operating expenses	120,443		32,071		201,261			353,775
Total costs and expenses	258,095		41,919		201,261			501,275
Operating earnings (loss)	$	303,563	$	33,781	$	(201,261	)	$	136,083
(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2011
Revenues	$	450,254	$	73,969	$	—		$	524,223
Cost of revenues	87,413		11,069		—			98,482
Operating expenses	106,126		31,671		179,971			317,768
Total costs and expenses	193,539		42,740		179,971			416,250
Operating earnings (loss)	$	256,715	$	31,229	$	(179,971	)	$	107,973

(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2012
Revenues	$	1,115,932	$	162,638	$	—		$	1,278,570
Cost of revenues	271,955		33,553		—			305,508
Operating expenses	240,881		64,822		403,837			709,540
Total costs and expenses	512,836		98,375		403,837			1,015,048
Operating earnings (loss)	$	603,096	$	64,263	$	(403,837	)	$	263,522
(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2011
Revenues	$	871,244	$	144,643	$	—		$	1,015,887
Cost of revenues	165,338		23,824		—			189,162
Operating expenses	211,475		60,770		352,808			625,053
Total costs and expenses	376,813		84,594		352,808			814,215
Operating earnings (loss)	$	494,431	$	60,049	$	(352,808	)	$	201,672