Segment Reporting

9 Months Ended

Sep. 29, 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 nine months ended September 29, 2012 and October 1, 2011:

(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2012
Revenues	$	591,327	$	85,155	$	—		$	676,482
Cost of revenues	131,663		17,915		—			149,578
Operating expenses	131,787		32,794		214,627			379,208
Total costs and expenses	263,450		50,709		214,627			528,786
Operating earnings (loss)	$	327,877	$	34,446	$	(214,627	)	$	147,696
(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2011
Revenues	$	499,497	$	72,143	$	—		$	571,640
Cost of revenues	109,656		10,808		—			120,464
Operating expenses	110,775		33,412		186,597			330,784
Total costs and expenses	220,431		44,220		186,597			451,248
Operating earnings (loss)	$	279,066	$	27,923	$	(186,597	)	$	120,392

(In thousands)	Domestic		Global		Other			Total
Nine Months Ended 2012
Revenues	$	1,707,259	$	247,793	$	—		$	1,955,052
Cost of revenues	403,618		51,468		—			455,086
Operating expenses	372,668		97,616		618,464			1,088,748
Total costs and expenses	776,286		149,084		618,464			1,543,834
Operating earnings (loss)	$	930,973	$	98,709	$	(618,464	)	$	411,218
(In thousands)	Domestic		Global		Other			Total
Nine Months Ended 2011
Revenues	$	1,370,741	$	216,786	$	—		$	1,587,527
Cost of revenues	274,994		34,632		—			309,626
Operating expenses	322,250		94,182		539,405			955,837
Total costs and expenses	597,244		128,814		539,405			1,265,463
Operating earnings (loss)	$	773,497	$	87,972	$	(539,405	)	$	322,064