10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(X)    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2018

OR

( )    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 0-15386

CERNER CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		43-1196944
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
2800 Rockcreek Parkway North Kansas City, MO		64117
(Address of principal executive offices)		(Zip Code)

(816) 221-1024

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]     No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]     No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [X]    Accelerated filer [  ]    Non-accelerated filer [  ] (do not check if smaller reporting company)    Smaller reporting company [  ] Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ]      No [X]

Indicate the number of shares outstanding of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at July 25, 2018
Common Stock, $0.01 par value per share	329,004,371 shares

CERNER CORPORATION

TABLE OF CONTENTS

Part I.	Financial Information:
Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheets as of June 30, 2018 (unaudited) and December 30, 2017	1
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2018 and July 1, 2017 (unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2018 and July 1, 2017 (unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2018 and July 1, 2017 (unaudited)	4
	Notes to Condensed Consolidated Financial Statements (unaudited)	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	30
Part II.	Other Information:
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 6.	Exhibits	32
Signatures

Part I. Financial Information

Item 1. Financial Statements

CERNER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2018 (unaudited) and December 30, 2017

(In thousands, except share data)	2018			2017
Assets
Current assets:
Cash and cash equivalents	$	510,968		$	370,923
Short-term investments	374,596			434,844
Receivables, net	1,151,860			1,042,781
Inventory	15,345			15,749
Prepaid expenses and other	326,623			515,930
Total current assets	2,379,392			2,380,227
Property and equipment, net	1,666,309			1,603,319
Software development costs, net	867,284			822,159
Goodwill	849,455			853,005
Intangible assets, net	439,999			479,753
Long-term investments	118,286			196,837
Other assets	208,274			134,011
Total assets	$	6,528,999		$	6,469,311
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	284,203		$	218,996
Current installments of long-term debt and capital lease obligations	2,155			11,585
Deferred revenue	278,668			311,337
Accrued payroll and tax withholdings	205,337			183,770
Other accrued expenses	65,324			63,907
Total current liabilities	835,687			789,595
Long-term debt and capital lease obligations	438,760			515,130
Deferred income taxes and other liabilities	371,381			365,674
Deferred revenue	4,317			13,564
Total liabilities	1,650,145			1,683,963
Shareholders' Equity:
Common stock, $.01 par value, 500,000,000 shares authorized, 360,501,265 shares issued at June 30, 2018 and 359,204,864 shares issued at December 30, 2017	3,605			3,592
Additional paid-in capital	1,443,803			1,380,371
Retained earnings	5,275,824			4,938,866
Treasury stock, 31,536,972 shares at June 30, 2018 and 26,743,517 shares at December 30, 2017	(1,751,723		)	(1,464,099		)
Accumulated other comprehensive loss, net	(92,655		)	(73,382		)
Total shareholders' equity	4,878,854			4,785,348
Total liabilities and shareholders' equity	$	6,528,999		$	6,469,311

See notes to condensed consolidated financial statements (unaudited).

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CERNER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the three and six months endedJune 30, 2018 and July 1, 2017

(unaudited)

	Three Months Ended						Six Months Ended
(In thousands, except per share data)	2018			2017			2018			2017
Revenues	$	1,367,727		$	1,291,994		$	2,660,588		$	2,552,480
Costs and expenses:
Costs of revenue	238,783			223,063			470,061			422,056
Sales and client service	635,105			563,387			1,225,053			1,123,587
Software development (Includes amortization of $52,141 and $102,142 for the three and six months ended June 30, 2018, respectively; and $41,427 and $81,988 for the three and six months ended July 1, 2017, respectively)	168,278			142,835			329,895			288,736
General and administrative	95,464			90,633			187,758			179,025
Amortization of acquisition-related intangibles	21,810			22,688			44,319			45,562
Total costs and expenses	1,159,440			1,042,606			2,257,086			2,058,966
Operating earnings	208,287			249,388			403,502			493,514
Other income, net	6,597			2,661			11,461			1,545
Earnings before income taxes	214,884			252,049			414,963			495,059
Income taxes	(45,527		)	(72,366		)	(85,605		)	(142,163		)
Net earnings	$	169,357		$	179,683		$	329,358		$	352,896
Basic earnings per share	$	0.51		$	0.54		$	0.99		$	1.07
Diluted earnings per share	$	0.51		$	0.53		$	0.98		$	1.05
Basic weighted average shares outstanding	330,206			331,056			331,479			330,607
Diluted weighted average shares outstanding	333,562			337,898			335,223			337,116

See notes to condensed consolidated financial statements (unaudited).

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CERNER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three and six months endedJune 30, 2018 and July 1, 2017

(unaudited)

	Three Months Ended						Six Months Ended
(In thousands)	2018			2017			2018			2017
Net earnings	$	169,357		$	179,683		$	329,358		$	352,896
Foreign currency translation adjustment and other (net of taxes (benefit) of $(335) and $585 for the three and six months ended June 30, 2018; and $904 and $1,091 for the three and six months ended July 1, 2017)	(21,811		)	16,158			(19,017		)	26,563
Unrealized holding gain (loss) on available-for-sale investments (net of taxes (benefit) of $209 and $(84) for the three and six months ended June 30, 2018; and $(33) and $35 for the three and six months ended July 1, 2017)	642			(54		)	(256		)	57
Comprehensive income	$	148,188		$	195,787		$	310,085		$	379,516

See notes to condensed consolidated financial statements (unaudited).

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CERNER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months endedJune 30, 2018 and July 1, 2017

(unaudited)

	Six Months Ended
(In thousands)	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	329,358		$	352,896
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	312,645			278,889
Share-based compensation expense	49,139			39,359
Provision for deferred income taxes	1,736			25,849
Changes in assets and liabilities:
Receivables, net	(186,039		)	(79,723		)
Inventory	390			211
Prepaid expenses and other	181,035			106
Accounts payable	43,364			33,647
Accrued income taxes	7,919			(3,846		)
Deferred revenue	(40,132		)	12,336
Other accrued liabilities	9,251			(63,896		)
Net cash provided by operating activities	708,666			595,828
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital purchases	(188,994		)	(189,372		)
Capitalized software development costs	(142,951		)	(142,966		)
Purchases of investments	(194,592		)	(182,484		)
Sales and maturities of investments	331,728			187,355
Purchase of other intangibles	(16,373		)	(14,036		)
Net cash used in investing activities	(211,182		)	(341,503		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt	(75,000		)	—
Proceeds from exercise of stock options	21,343			38,293
Payments to taxing authorities in connection with shares directly withheld from associates	(7,308		)	(7,972		)
Treasury stock purchases	(287,624		)	—
Contingent consideration payments for acquisition of businesses	(1,691		)	(2,671		)
Net cash provided by (used in) financing activities	(350,280		)	27,650
Effect of exchange rate changes on cash and cash equivalents	(7,159		)	7,594
Net increase in cash and cash equivalents	140,045			289,569
Cash and cash equivalents at beginning of period	370,923			170,861
Cash and cash equivalents at end of period	$	510,968		$	460,430

See notes to condensed consolidated financial statements (unaudited).

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CERNER CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) Interim Statement Presentation

Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by Cerner Corporation ("Cerner," the "Company," "we," "us" or "our") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our latest annual report on Form 10-K.

In management's opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. Our interim results as presented in this Form 10-Q are not necessarily indicative of the operating results for the entire year.

The condensed consolidated financial statements were prepared using GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

Fiscal Period End

Our second fiscal quarter ends on the Saturday closest to June 30. The 2018 and 2017 second quarters ended on June 30, 2018 and July 1, 2017, respectively. All references to years in these notes to condensed consolidated financial statements represent the respective three or six months ended on such dates, unless otherwise noted.

Supplemental Disclosures of Cash Flow Information

	Six Months Ended
(In thousands)	2018			2017
Cash paid during the period for:
Interest (including amounts capitalized of $5,874 and $5,520, respectively)	$	8,333		$	9,067
Income taxes, net of refunds	(86,825		)	99,104

Accounting Pronouncements Adopted in 2018

Revenue Recognition. In the first quarter of 2018, we adopted new revenue guidance. Refer to Note (2) for further details.

Financial Instruments.In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which was subsequently amended in February 2018 by ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Such guidance impacts how we account for our investments reported under the cost method of accounting as follows:

• Equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are required to be measured at fair value with changes in fair value recognized in net earnings. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

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• The impairment assessment of equity investments without readily determinable fair values will require a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value.

We adopted this new guidance effective for our first quarter of 2018. Provisions within the guidance applicable to the Company were required to be applied prospectively. The adoption of such guidance did not have a material impact on our condensed consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements

Leases.In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which introduces a new model that requires most leases to be reported on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The standard requires the use of the modified retrospective (cumulative effect) transition approach. ASU 2016-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt.

In the second quarter of 2018, we continued our analysis of contractual arrangements that may qualify as leases under the new standard. We currently expect the most significant impact of this new guidance will be the recognition of right-of-use assets and lease liabilities for our operating leases of office space. At December 30, 2017, we disclosed aggregate minimum future payments under these arrangements of $124 million within Note 16, Commitments in our most recent Form 10-K. We do not expect the new standard to have a significant impact on our consolidated statements of operations.

Our analysis and evaluation of the new standard will continue through the effective date in the first quarter of 2019. We must complete our analysis of contractual arrangements, quantify all impacts of this new guidance, and evaluate related disclosures. We must also implement any necessary changes/modifications to processes, accounting systems, and internal controls.

Credit Losses on Financial Instruments.In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides new guidance regarding the measurement and recognition of credit impairment for certain financial assets. Such guidance will impact how we determine our allowance for estimated uncollectible receivables and evaluate our available-for-sale investments for impairment. ASU 2016-13 is effective for the Company in the first quarter of 2020, with early adoption permitted in the first quarter of 2019. We are currently evaluating the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt.

Callable Debt Securities.In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for certain investments in callable debt securities purchased at a premium by requiring the premium be amortized to the earliest call date. Such guidance will impact how premiums are amortized on our available-for-sale investments. ASU 2017-08 is effective for the Company in the first quarter of 2019, with early adoption permitted. The standard requires the use of the modified retrospective (cumulative effect) transition approach. We do not expect ASU 2017-08 to have a material impact on our consolidated financial statements and related disclosures, and we do not expect to early adopt.

Accumulated Other Comprehensive Income.In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for "stranded tax effects" resulting from certain U.S. tax reform enacted in December 2017. Such "stranded tax effects" were created when deferred tax assets and liabilities related to items in AOCI were remeasured at the lower U.S. corporate tax rate in the period of enactment. ASU 2018-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. The guidance in this ASU is to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. corporate tax rate was recognized. We are currently evaluating the effect that ASU 2018-02 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt.

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(2) Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaced most existing revenue recognition guidance in U.S. GAAP. The new standard introduces a five-step process to be followed in determining the amount and timing of revenue recognition. It also provides guidance on accounting for costs incurred to obtain or fulfill contracts with customers, and establishes disclosure requirements which are more extensive than those required under prior U.S. GAAP.

ASU 2014-09, as amended ("Topic 606"), was effective for the Company in the first quarter of 2018. We selected the modified retrospective (cumulative effect) transition method of adoption. Such method provides that the cumulative effect from prior periods upon applying the new guidance to contracts which were not complete as of the adoption date, be recognized in our condensed consolidated balance sheets as of December 31, 2017, including an adjustment to retained earnings. A summary of such cumulative effect adjustment is as follows:

(In thousands)	Increase / (Decrease)
Receivables, net	$	(79,492	)
Prepaid expenses and other	(2,253		)
Other assets	81,157
Accounts payable	(9,361		)
Deferred income taxes and other liabilities	1,173
Retained earnings	7,600

Prior periods were not retrospectively adjusted. The impact of applying Topic 606 (versus prior U.S. GAAP) increased revenues by $21 million and $64 million, and earnings before income taxes by $15 million and $13 million, for the three and six months endedJune 30, 2018, respectively. The impact of applying Topic 606 (versus prior U.S. GAAP) did not have a significant impact on other line items in our condensed consolidated statements of operations, statements of comprehensive income, and statements of cash flows for the three and six month periods ended June 30, 2018. Additionally, the impact of applying Topic 606 did not have a significant impact on our condensed consolidated balance sheet as of June 30, 2018.

Revenue Recognition Policy

We enter into contracts with customers that may include various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The predominant model of customer procurement involves multiple deliverables and includes a software license agreement, project-related implementation and consulting services, software support, hosting services, and computer hardware. We allocate revenues to each performance obligation within an arrangement based on estimated relative stand-alone selling price. Revenue is then recognized for each performance obligation upon transfer of control of the software solution or services to the customer in an amount that reflects the consideration we expect to receive.

Generally, we recognize revenue under Topic 606 for each of our performance obligations as follows:

• Perpetual software licenses - We recognize perpetual software license revenues when control of such licenses are transferred to the client ("point in time"). We determine the amount of consideration allocated to this performance obligation using the residual approach.

• Software as a service - We recognize software as a service ratably over the related hosting period ("over time").

• Time-based software and content license fees - We recognize a license component of time-based software and content license fees upon delivery to the client ("point in time") and a non-license component (i.e. support) ratably over the respective contract term ("over time").

• Hosting - Remote hosting recurring services are recognized ratably over the hosting service period ("over time"). Certain of our hosting arrangements contain fees deemed to be a "material right" under Topic 606. We recognize

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such fees over the term that will likely affect the client's decision about whether to renew the related hosting service ("over time").

• Services - We recognize revenue for fixed fee services arrangements over time, utilizing a labor hours input method. For fee-for-service arrangements, we recognize revenue over time as hours are worked at the rates clients are invoiced, utilizing the "as invoiced" practical expedient available in Topic 606. For stand-ready services arrangements, we recognize revenue ratably over the related service period.

• Support and maintenance - We recognize support and maintenance fees ratably over the related contract period ("over time").

• Hardware - We recognize hardware revenues when control of such hardware/devices is transferred to the client ("point in time").

• Transaction processing - We recognize transaction processing revenues ratably as we provide such services ("over time").

Such revenues are recognized net of any taxes collected from customers and subsequently remitted to governmental authorities.

Disaggregation of Revenue

The following tables present revenues disaggregated by our business models:

	Three Months Ended
	2018						2017(1)
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Licensed software	$	161,220	$	11,168	$	172,388	$	146,895	$	8,991	$	155,886
Technology resale	61,789		13,468		75,257		66,358		6,774		73,132
Subscriptions	76,419		6,532		82,951		112,518		6,272		118,790
Professional services	387,540		59,778		447,318		347,313		48,850		396,163
Managed services	261,787		23,765		285,552		242,673		19,006		261,679
Support and maintenance	229,779		49,177		278,956		214,642		44,932		259,574
Reimbursed travel	23,530		1,775		25,305		25,255		1,515		26,770
Total revenues	$	1,202,064	$	165,663	$	1,367,727	$	1,155,654	$	136,340	$	1,291,994
(1)As noted above, prior period amounts were not adjusted upon our adoption of Topic 606.

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	Six Months Ended
	2018						2017(1)
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Licensed software	$	285,314	$	21,893	$	307,207	$	279,427	$	18,787	$	298,214
Technology resale	120,038		18,595		138,633		126,871		10,368		137,239
Subscriptions	146,271		13,316		159,587		220,770		11,441		232,211
Professional services	767,384		121,202		888,586		696,177		96,301		792,478
Managed services	507,932		45,925		553,857		485,306		36,192		521,498
Support and maintenance	464,015		99,505		563,520		432,386		89,292		521,678
Reimbursed travel	46,206		2,992		49,198		46,521		2,641		49,162
Total revenues	$	2,337,160	$	323,428	$	2,660,588	$	2,287,458	$	265,022	$	2,552,480
(1)As noted above, prior period amounts were not adjusted upon our adoption of Topic 606.

The following table presents our revenues disaggregated by timing of revenue recognition:

	Three Months Ended						Six Months Ended
	2018						2018
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Revenue recognized over time	$	1,062,878	$	144,262	$	1,207,140	$	2,091,373	$	288,397	$	2,379,770
Revenue recognized at a point in time	139,186		21,401		160,587		245,787		35,031		280,818
Total revenues	$	1,202,064	$	165,663	$	1,367,727	$	2,337,160	$	323,428	$	2,660,588

Transaction Price Allocated to Remaining Performance Obligations

As of June 30, 2018, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) for executed contracts approximates $14.79 billion of which we expect to recognize approximately 31% of the revenue over the next 12 months and the remainder thereafter.

Contract Liabilities

Our payment arrangements with clients typically include an initial payment due upon contract signing and date-based licensed software payment terms and payments based upon delivery for services, hardware and sublicensed software. Customer payments received in advance of satisfaction of the related performance obligations are deferred as contract liabilities. Such amounts are classified in our condensed consolidated balance sheets as either current or long-term deferred revenue. During the six months ended June 30, 2018, we recognized $287 million of revenues that were included in our contract liability balance at the beginning of such period.

Costs to Obtain or Fulfill a Contract

We have determined the only significant incremental costs incurred to obtain contracts with clients within the scope of Topic 606 are sales commissions paid to our associates. We record sales commissions as an asset, and amortize to expense ratably over the remaining performance periods of the related contracts with remaining performance obligations. At June 30, 2018, our condensed consolidated balance sheet includes an $85 million asset related to sales commissions to be expensed in future periods, which is included in other assets.

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During the three and six months endedJune 30, 2018, we recognized $10 million and $18 million, respectively, of amortization related to this sales commissions asset, which is included in costs of revenue in our condensed consolidated statements of operations.

Significant Judgments when Applying Topic 606

Our contracts with clients typically include various combinations of our software solutions and related services. Determining whether such software solutions and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Specifically, judgment is required to determine whether software licenses are distinct from services and hosting included in an arrangement.

Contract transaction price is allocated to performance obligations using estimated stand-alone selling price. Judgment is required in estimating stand-alone selling price for each distinct performance obligation. We determine stand-alone selling price maximizing observable inputs such as stand-alone sales when they exist or substantive renewal prices charged to clients. In instances where stand-alone selling price is not observable, we utilize an estimate of stand-alone selling price. Such estimates are derived from various methods that include: cost plus margin, historical pricing practices, and the residual approach, which requires a considerable amount of judgment.

The labor hours input method used for our fixed fee services performance obligation is dependent on our ability to reliably estimate the direct labor hours to complete a project, which may span several years. We utilize our historical project experience and detailed planning process as a basis for our future estimates to complete current projects.

Certain of our arrangements contain variable consideration. We do not believe our estimates of variable consideration to be significant to our determination of revenue recognition.

Practical Expedients

We have reflected the aggregate effect of all contract modifications occurring prior to the Topic 606 adoption date when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations.

(3) Receivables

Receivables consist of client receivables and the current portion of amounts due under sales-type leases.

Client receivables represent recorded revenues that have either been billed, or for which we have an unconditional right to invoice and receive payment in the future. We periodically provide long-term financing options to creditworthy clients through extended payment terms. Generally, these extended payment terms provide for date-based payments over a fixed period, not to exceed the term of the overall arrangement. Thus, our portfolio of client contracts contains a financing component, which is recognized over time as a component of other income, net in our condensed consolidated statements of operations.

Lease receivables represent our net investment in sales-type leases resulting from the sale of certain health care devices to our clients.

We perform ongoing credit evaluations of our clients and generally do not require collateral from our clients. We provide an allowance for estimated uncollectible accounts based on specific identification, historical experience and our judgment.

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A summary of net receivables is as follows:

(In thousands)	June 30, 2018		December 30, 2017
Client receivables	$	1,204,487	$	1,082,886
Less: Allowance for doubtful accounts	61,639		52,786
Client receivables, net of allowance	1,142,848		1,030,100
Current portion of lease receivables	9,012		12,681
Total receivables, net	$	1,151,860	$	1,042,781

During the second quarter of 2008, Fujitsu Services Limited's ("Fujitsu") contract as the prime contractor in the National Health Service ("NHS") initiative to automate clinical processes and digitize medical records in the Southern region of England was terminated. This gave rise to the termination of our subcontract for the project. We continue to be in dispute with Fujitsu regarding Fujitsu's obligation to pay amounts due upon termination, including our client receivables and damages for pre-termination losses. We are working with Fujitsu to resolve these issues based on processes provided for in the subcontract. Part of that process required final resolution of disputes between Fujitsu and the NHS regarding the prime contract termination, which has now occurred. As of June 30, 2018, it remains unlikely that our matter with Fujitsu will be resolved in the next 12 months. Therefore, these client receivables have been classified as long-term and represent less than the majority of other long-term assets at June 30, 2018 and December 30, 2017. While the ultimate collectability of the client receivables pursuant to this process is uncertain, we believe that we have valid and equitable grounds for recovery of such amounts and that collection of recorded amounts is probable. Nevertheless, it is reasonably possible that our estimates regarding collectability of such amounts might materially change.

During the first six months of 2018 and 2017, we received total client cash collections of $2.59 billion and $2.64 billion, respectively.

(4) Investments

Available-for-sale investments at June 30, 2018 were as follows:

(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash equivalents:
Money market funds	$	42,195	$	—	$	—		$	42,195
Time deposits	78,581		—		—			78,581
Total cash equivalents	120,776		—		—			120,776
Short-term investments:
Time deposits	28,988		—		—			28,988
Commercial paper	77,950		—		(98		)	77,852
Government and corporate bonds	268,884		—		(1,128		)	267,756
Total short-term investments	375,822		—		(1,226		)	374,596
Long-term investments:
Government and corporate bonds	105,251		—		(753		)	104,498
Total available-for-sale investments	$	601,849	$	—	$	(1,979	)	$	599,870

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Available-for-sale investments at December 30, 2017 were as follows:

(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash equivalents:
Money market funds	$	99,472	$	—	$	—		$	99,472
Time deposits	60,226		—		—			60,226
Government and corporate bonds	850		—		—			850
Total cash equivalents	160,548		—		—			160,548
Short-term investments:
Time deposits	40,186		—		—			40,186
Commercial paper	147,646		2		(139		)	147,509
Government and corporate bonds	247,626		—		(477		)	247,149
Total short-term investments	435,458		2		(616		)	434,844
Long-term investments:
Government and corporate bonds	185,478		—		(1,026		)	184,452
Total available-for-sale investments	$	781,484	$	2	$	(1,642	)	$	779,844

We sold available-for-sale investments for proceeds of $45 million and $20 million during the six months endedJune 30, 2018 and July 1, 2017, respectively, resulting in insignificant gains/losses in each period.

Other Investments

On July 27, 2018we acquired a minority interest in Essence Group Holdings Corporation ("Essence Group") for cash consideration of $266 million under a Stock Purchase Agreement ("SPA") dated July 9, 2018. Concurrently with the execution of the SPA, we announced a strategic operating relationship with Lumeris Healthcare Outcomes, LLC ("Lumeris"), a subsidiary of Essence Group, pursuant to which we will collaborate to bring to market an EHR-agnostic offering, Maestro Advantage^TM, designed to help providers who participate in value-based arrangements, including Medicare Advantage and provider-sponsored health plans, control costs and improve outcomes.

(5) Fair Value Measurements

We determine fair value measurements used in our consolidated financial statements based upon the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

• Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

• Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

• Level 3 – Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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The following table details our financial assets measured and recorded at fair value on a recurring basis at June 30, 2018:

(In thousands)
		Fair Value Measurements Using
Description	Balance Sheet Classification	Level 1		Level 2		Level 3
Money market funds	Cash equivalents	$	42,195	$	—	$	—
Time deposits	Cash equivalents	—		78,581		—
Time deposits	Short-term investments	—		28,988		—
Commercial paper	Short-term investments	—		77,852		—
Government and corporate bonds	Short-term investments	—		267,756		—
Government and corporate bonds	Long-term investments	—		104,498		—

The following table details our financial assets measured and recorded at fair value on a recurring basis at December 30, 2017:

(In thousands)
		Fair Value Measurements Using
Description	Balance Sheet Classification	Level 1		Level 2		Level 3
Money market funds	Cash equivalents	$	99,472	$	—	$	—
Time deposits	Cash equivalents	—		60,226		—
Government and corporate bonds	Cash equivalents	—		850		—
Time deposits	Short-term investments	—		40,186		—
Commercial paper	Short-term investments	—		147,509		—
Government and corporate bonds	Short-term investments	—		247,149		—
Government and corporate bonds	Long-term investments	—		184,452		—

We estimate the fair value of our long-term, fixed rate debt using a Level 3 discounted cash flow analysis based on current borrowing rates for debt with similar maturities. We estimate the fair value of our long-term, variable rate debt using a Level 3 discounted cash flow analysis based on LIBOR rate forward curves. The fair value of our long-term debt, including current maturities, at June 30, 2018 and December 30, 2017 was approximately $431 million and $519 million, respectively. The carrying amount of such debt at June 30, 2018 and December 30, 2017 was $425 million and $500 million, respectively.

(6) Long-term Debt and Capital Lease Obligations

The following is a summary of indebtedness outstanding:

(In thousands)	June 30, 2018			December 30, 2017
Senior Notes	$	425,000		$	500,000
Capital lease obligations	2,155			13,068
Other	14,162			14,162
Debt and capital lease obligations	441,317			527,230
Less: debt issuance costs	(402		)	(515		)
Debt and capital lease obligations, net	440,915			526,715
Less: current portion	(2,155		)	(11,585		)
Long-term debt and capital lease obligations	$	438,760		$	515,130

In March 2018, we repaid our $75 million floating rate Series 2015-C Notes due February 15, 2022.

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(7) Income Taxes

We determine the tax provision for interim periods using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.

H.R. 1, An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 ("U.S. Tax Reform"), was enacted on December 22, 2017. U.S. Tax Reform provides for, among other things, the reduction of the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. Relevant accounting guidance provides that the impact of U.S. Tax Reform, as of the date of enactment, may be provisionally recorded and adjusted during a measurement period of up to one year. As of December 30, 2017, we provisionally recorded certain impacts of U.S. Tax Reform including an adjustment to our net deferred tax liability arising from the reduction in the federal tax rate as well as the impact of mandatory deemed repatriation. Additional analysis and computations are being performed with respect to these provisional amounts. The ultimate impact as of the enactment date may differ from the provisional amounts we have recorded, possibly materially, due to among other things, additional regulatory guidance that may be issued and changes to our assumptions and interpretations. No measurement period adjustments were recorded during the six months endedJune 30, 2018.

Our effective tax rate was 20.6% and 28.7% for the first six months of 2018 and 2017, respectively. The decrease in the effective tax rate in 2018 is primarily due to the aforementioned reduction in the U.S. corporate statutory tax rate from 35% to 21%.

(8) Earnings Per Share

A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows:

	Three Months Ended
	2018					2017
	Earnings		Shares	Per-Share		Earnings		Shares	Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic earnings per share:
Income available to common shareholders	$	169,357	330,206	$	0.51	$	179,683	331,056	$	0.54
Effect of dilutive securities:
Stock options and non-vested shares	—		3,356			—		6,842
Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	169,357	333,562	$	0.51	$	179,683	337,898	$	0.53

For the three months ended June 30, 2018 and July 1, 2017, options to purchase 14.0 million and 11.0 million shares of common stock at per share prices ranging from $47.99 to $73.40 and $50.04 to $73.40, respectively, were outstanding but were not included in the computation of diluted earnings per share because they were anti-dilutive.

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	Six Months Ended
	2018					2017
	Earnings		Shares	Per-Share		Earnings		Shares	Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic earnings per share:
Income available to common shareholders	$	329,358	331,479	$	0.99	$	352,896	330,607	$	1.07
Effect of dilutive securities:
Stock options and non-vested shares	—		3,744			—		6,509
Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	329,358	335,223	$	0.98	$	352,896	337,116	$	1.05

For the six months ended June 30, 2018 and July 1, 2017, options to purchase 12.4 million and 11.7 million shares of common stock at per share prices ranging from $50.04 to $73.40 and $47.38 to $73.40, respectively, were outstanding but were not included in the computation of diluted earnings per share because they were anti-dilutive.

(9) Share-Based Compensation and Equity

Stock Options

Stock option activity for the six months endedJune 30, 2018 was as follows:

(In thousands, except per share data)	Number of Shares		Weighted- Average Exercise  Price		Aggregate Intrinsic  Value		Weighted-Average       Remaining       Contractual  Term (Yrs)
Outstanding at beginning of year	21,332		$	49.40
Granted	3,572		58.32
Exercised	(947	)	23.25
Forfeited and expired	(156	)	60.75
Outstanding as of June 30, 2018	23,801		51.71		$	235,909	6.67
Exercisable as of June 30, 2018	12,287		$	43.77	$	210,966	4.84

The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the six months endedJune 30, 2018 were as follows:

Expected volatility (%)	27.0		%
Expected term (yrs)	7
Risk-free rate (%)	2.8		%
Fair value per option	$	20.12

As of June 30, 2018, there was $185 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 3.59 years.

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Non-vested Shares and Share Units

Non-vested share and share unit activity for the six months endedJune 30, 2018 was as follows:

(In thousands, except per share data)	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of year	799		$	66.76
Granted	480		58.72
Vested	(343	)	65.54
Forfeited	(3	)	62.78
Outstanding as of June 30, 2018	933		$	63.08

As of June 30, 2018, there was $44 million of total unrecognized compensation cost related to non-vested share and share unit awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 2.09 years.

Share-Based Compensation Cost

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and share units, and our associate stock purchase plan:

	Three Months Ended					Six Months Ended
(In thousands)	2018		2017			2018		2017
Stock option and non-vested share and share unit compensation expense	$	24,204	$	21,859		$	49,139	$	39,359
Associate stock purchase plan expense	1,916		1,495			3,278		2,970
Amounts capitalized in software development costs, net of amortization	161		(200		)	321		(320		)
Amounts charged against earnings, before income tax benefit	$	26,281	$	23,154		$	52,738	$	42,009
Amount of related income tax benefit recognized in earnings	$	5,568	$	6,647		$	10,868	$	12,063

Treasury Stock

In May 2017, our Board of Directors authorized a share repurchase program that allows the Company to repurchase up to $500 million of shares of our common stock, excluding transaction costs. The repurchases are to be effectuated in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers. No time limit was set for the completion of the program. In May 2018, our Board of Directors approved an amendment to the repurchase program that was authorized in May 2017. Under the amendment, the Company was authorized to repurchase up to an additional $500 million of shares of our common stock, for an aggregate of $1 billion, excluding transaction costs. During the six months endedJune 30, 2018, we repurchased 4.8 million shares for total consideration of $288 million under the program. The shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. At June 30, 2018, $639 million remains available for repurchase under the program.

(10) Contingencies

We accrue estimates for resolution of any legal and other contingencies when losses are probable and reasonably estimable, in accordance with Accounting Standards Codification Topic 450, Contingencies.

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The terms of our software license agreements with our clients generally provide for a limited indemnification of such clients against losses, expenses and liabilities arising from third party claims based on alleged infringement by our solutions of an intellectual property right of such third party. The terms of such indemnification often limit the scope of and remedies for such indemnification obligations and generally include a right to replace or modify an infringing solution. To date, we have not had to reimburse any of our clients for any judgments or settlements to third parties related to these indemnification provisions pertaining to intellectual property infringement claims. For several reasons, including the lack of a sufficient number of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the terms of the corresponding agreements with our clients, we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions.

In addition to commitments and obligations in the ordinary course of business, we are subject to various legal proceedings and claims that arise in the ordinary course of business, including for example, employment and client disputes and litigation alleging solution and implementation defects, personal injury, intellectual property infringement, violations of law and breaches of contract and warranties. Many of these proceedings are at preliminary stages and many seek an indeterminate amount of damages. At this time, we do not believe the range of potential losses under these claims to be material to our condensed consolidated financial statements.

No less than quarterly, we review the status of each significant matter and assess our potential financial exposure. We accrue a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to our management at the time the judgment is made. Furthermore, the outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters. Should any one or a combination of more than one of these proceedings be successful, or should we determine to settle any one or a combination of these matters, we may be required to pay substantial sums, become subject to the entry of an injunction or be forced to change the manner in which we operate our business, which could have a material adverse impact on our business, results of operations, cash flows or financial condition.

(11) Segment Reporting

We have two operating segments, Domestic and Global. Revenues are derived primarily from the sale of clinical, financial and administrative information solutions and services. 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, expenses associated with our managed services business, marketing expenses, communications expenses and unreimbursed travel expenses. "Other" includes expenses that have not been allocated to the operating segments, such as software development, general and administrative expenses, acquisition costs and related adjustments, share-based compensation expense, and certain amortization and depreciation. Performance of the segments is assessed at the operating earnings level by our chief operating decision maker, who is our Chief Executive Officer. 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 endedJune 30, 2018 and July 1, 2017:

(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2018
Revenues	$	1,202,064	$	165,663	$	—		$	1,367,727
Costs of revenue	208,185		30,598		—			238,783
Operating expenses	551,468		73,407		295,782			920,657
Total costs and expenses	759,653		104,005		295,782			1,159,440
Operating earnings (loss)	$	442,411	$	61,658	$	(295,782	)	$	208,287

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(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2017
Revenues	$	1,155,654	$	136,340	$	—		$	1,291,994
Costs of revenue	197,336		25,727		—			223,063
Operating expenses	488,955		65,581		265,007			819,543
Total costs and expenses	686,291		91,308		265,007			1,042,606
Operating earnings (loss)	$	469,363	$	45,032	$	(265,007	)	$	249,388

(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2018
Revenues	$	2,337,160	$	323,428	$	—		$	2,660,588
Costs of revenue	414,859		55,202		—			470,061
Operating expenses	1,071,339		142,551		573,135			1,787,025
Total costs and expenses	1,486,198		197,753		573,135			2,257,086
Operating earnings (loss)	$	850,962	$	125,675	$	(573,135	)	$	403,502

(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2017
Revenues	$	2,287,458	$	265,022	$	—		$	2,552,480
Costs of revenue	373,697		48,359		—			422,056
Operating expenses	972,335		129,104		535,471			1,636,910
Total costs and expenses	1,346,032		177,463		535,471			2,058,966
Operating earnings (loss)	$	941,426	$	87,559	$	(535,471	)	$	493,514

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management Discussion and Analysis ("MD&A") is intended to help the reader understand the results of operations and financial condition of Cerner Corporation ("Cerner," the "Company," "we," "us" or "our"). This MD&A is provided as a supplement to, and should be read in conjunction with, our condensed consolidated financial statements and the accompanying notes to condensed consolidated financial statements ("Notes") found above.

Our second fiscal quarter ends on the Saturday closest to June 30. The 2018 and 2017second quarters ended on June 30, 2018 and July 1, 2017, respectively. All references to years in this MD&A represent the respective three or six months ended on such dates, unless otherwise noted.

Except for the historical information and discussions contained herein, statements contained in this quarterly report on Form 10-Q may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are based on the current beliefs, expectations and assumptions of Cerner's management with respect to future events and are subject to a number of significant risks and uncertainties. It is important to note that Cerner's performance, and actual results, financial condition or business could differ materially from those expressed in such forward-looking statements. These statements can often be identified by the use of forward-looking terminology, such as "could," "should," "will," "believe," "may," "expect," "positioned," "anticipate," "forecast," "guidance," "opportunity," "outlook" or "estimate" or the negative of these words, variations thereof or similar expressions. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including without limitation: the possibility of significant costs and reputational harm related to product-related liabilities; potential claims for system errors and warranties; the possibility of interruption at our data centers or client support facilities that could expose us to significant costs and reputational harm; the possibility of increased expenses, exposure to legal claims and regulatory actions and reputational harm associated with a cyberattack or other breach in our IT security; our proprietary technology may be subject to claims for infringement or misappropriation of intellectual property rights of others, or may be infringed or misappropriated by others; potential claims or other risks associated with relying on open source software in our proprietary software, solutions or services; material adverse resolution of legal proceedings; risks associated with our global operations, including without limitation, greater difficulty in collecting accounts receivable; risks associated with fluctuations in foreign currency exchange rates; changes in tax laws, regulations or guidance that could adversely affect our tax position and/or challenges to our tax positions in the U.S. and non-U.S. countries; the uncertainty surrounding the impact of the United Kingdom's vote to leave the European Union (commonly referred to as Brexit) on our global business; risks associated with the unexpected loss or recruitment and retention of key personnel or the failure to successfully develop and execute succession planning to assure transitions of key associates and their knowledge, relationships and expertise; risks related to our dependence on strategic relationships and third party suppliers; risks inherent with business acquisitions and combinations and the integration thereof into our business; risks associated with volatility and disruption resulting from global economic or market conditions; significant competition and our ability to quickly respond to market changes and changing technologies and to bring competitive new solutions, devices, features and services to market in a timely fashion; managing growth in the new markets in which we offer solutions, health care devices or services; long sales cycles for our solutions and services; risks inherent in contracting with government clients, including without limitation, complying with strict compliance and disclosure obligations, navigating complex procurement rules and processes and defending against bid protests; risks associated with our outstanding and future indebtedness, such as compliance with restrictive covenants, which may limit our flexibility to operate our business; changes in accounting standards issued by the Financial Accounting Standards Board or other standard-setting bodies may adversely affect our financial statements; the potential for losses resulting from asset impairment charges; changing political, economic, regulatory and judicial influences, which could impact the purchasing practices and operations of our clients and increase costs to deliver compliant solutions and services; non-compliance with laws, government regulation or certain industry initiatives; variations in our quarterly operating results; potential variations in our sales forecasts compared to actual sales; volatility in the trading price of our common stock and the timing and volume of market activity; our directors' authority to issue preferred stock and the anti-takeover provisions in our corporate governance documents; and, other risks, uncertainties and factors discussed elsewhere in this Form 10-Q, in our other filings with the Securities and Exchange Commission, including those under the caption "Risk Factors" in our latest annual report on Form 10-K, or in materials incorporated herein or therein by reference. Forward-looking statements are not guarantees of future performance or results. The reader should not place undue reliance on forward-looking statements since the statements speak only as of the date they are made. Except as required by law, we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in our results of operations, financial condition or business over time.

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Management Overview

Our revenues are primarily derived by selling, implementing and supporting software solutions, clinical content, hardware, devices and services that give health care providers and other stakeholders secure access to clinical, administrative and financial data in real or near-real time, helping them to improve quality, safety and efficiency in the delivery of health care.

Our fundamental strategic focus is the creation of organic growth by investing in research and development ("R&D") to create solutions and services for the health care industry. This strategy has driven strong growth over the long-term, as reflected in five- and ten-year compound annual revenue growth rates of 14% and 13%, respectively. This growth has also created an important strategic footprint in health care, with Cerner^® solutions in more than 27,000 facilities worldwide, including hospitals, physician practices, laboratories, ambulatory centers, behavioral health centers, cardiac facilities, radiology clinics, surgery centers, extended care facilities, retail pharmacies, and employer sites. Selling additional solutions and services back into this client base is an important element of our future revenue growth. We are also focused on driving growth by strategically aligning with health care providers that have not yet selected a supplier and by displacing competitors in health care settings that are looking to replace their current suppliers. We may also supplement organic growth with acquisitions or strategic investments.

We expect to drive growth through solutions and services that reflect our ongoing ability to innovate and expand our reach into health care. Examples of these include our CareAware^® health care device architecture and devices, Cerner ITWorks^SM services, revenue cycle solutions and services, and HealtheIntent^SM population health solutions and services. Finally, we believe there is significant opportunity for growth outside of the United States, with many non-U.S. markets focused on health care information technology as part of their strategy to improve the quality and lower the cost of health care.

Beyond our strategy for driving revenue growth, we are also focused on earnings growth. Similar to our history of growing revenue, our net earnings have increased at compound annual rates of 17% and 21% over the most recent five- and ten-year periods, respectively. We expect to drive earnings growth as we continue to grow our revenue. We also have opportunities to expand our operating margins over time. In the near term, we expect growth in non-cash expenses, such as amortization and depreciation, and a mix of lower margin revenue associated with some of our rapidly growing services businesses will limit our margin expansion. Longer-term, we expect to generate margin expansion as the growth rate of non-cash expenses slows, we achieve economies of scale and efficiencies in our services businesses, control general and administrative expenses, and get more contributions to our growth from solutions on our HealtheIntent platform, which we expect to be accretive to our overall margins.

We are also focused on continuing to deliver strong levels of cash flow, which we expect to accomplish by continuing to grow earnings and prudently managing capital expenditures.

Results Overview

Bookings, which reflects the value of executed contracts for software, hardware, professional services and managed services, was $1.78 billion in the second quarter of 2018, which is an increase of 9% compared to $1.64 billion in the second quarter of 2017.

Revenues for the second quarter of 2018 increased 6% to $1.37 billion, compared to $1.29 billion in the second quarter of 2017. The increase in revenue reflects ongoing demand from new and existing clients for Cerner's solutions and services driven by their needs to keep up with regulatory requirements, adapt to changing reimbursement models, and deliver safer and more efficient care.

Net earnings for the second quarter of 2018 decreased 6% to $169 million, compared to $180 million in the second quarter of 2017. Diluted earnings per share decreased 4% to $0.51, compared to $0.53 in the second quarter of 2017. The overall decrease in net earnings and diluted earnings per share was primarily a result of increased operating expenses, which reflects the hiring of personnel to support revenue growth. The increase in operating expenses was partially offset by a lower effective tax rate, stemming from certain U.S. income tax reform enacted in December 2017.

We had cash collections of receivables of $1.32 billion in both the second quarter of 2018 and 2017. Days sales outstanding was 77 days for the second quarter of 2018 compared to 73 days for both the first quarter of 2018 and the second quarter of 2017. Operating cash flows for the second quarter of 2018 were $300 million compared to $292 million in the second quarter of 2017.

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Results of Operations

Three Months EndedJune 30, 2018 Compared to Three Months EndedJuly 1, 2017

The following table presents a summary of the operating information for the second quarters of 2018 and 2017:

(In thousands)	2018			% of Revenue		2017			% of Revenue		% Change
Revenues	$	1,367,727		100	%	$	1,291,994		100	%	6	%
Costs of revenue	238,783			17	%	223,063			17	%	7	%
Margin	1,128,944			83	%	1,068,931			83	%	6	%
Operating expenses
Sales and client service	635,105			46	%	563,387			44	%	13	%
Software development	168,278			12	%	142,835			11	%	18	%
General and administrative	95,464			7	%	90,633			7	%	5	%
Amortization of acquisition-related intangibles	21,810			2	%	22,688			2	%	(4	)%
Total operating expenses	920,657			67	%	819,543			63	%	12	%
Total costs and expenses	1,159,440			85	%	1,042,606			81	%	11	%
Operating earnings	208,287			15	%	249,388			19	%	(16	)%
Other income, net	6,597					2,661
Income taxes	(45,527		)			(72,366		)
Net earnings	$	169,357				$	179,683				(6	)%

Revenues & Backlog

Revenues increased 6% to $1.37 billion in the second quarter of 2018, as compared to $1.29 billion in the same period of 2017. The growth in revenues includes a $51 million increase in professional services revenue, driven by increased contributions from our Cerner ITWorks^SM and revenue cycle services. Refer to Note (2) of the notes to condensed consolidated financial statements for further information regarding revenues disaggregated by our business models.

Backlog, which reflects contracted revenue that has not yet been recognized as revenue, was $14.79 billion as of June 30, 2018. In the first quarter of 2018, we adopted new revenue recognition guidance as further discussed in Note (2) of the notes to condensed consolidated financial statements. In connection with the adoption of such guidance, we modified our calculation of backlog as previously determined under Regulation S-K to represent the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) to conform to the new revenue recognition guidance. Backlog amounts disclosed in prior periods have not been adjusted, and are not comparable to, the current period presentation.

Costs of Revenue

Costs of revenue as a percent of revenues were 17% in the second quarter of both 2018 and 2017.

Costs of revenue include the cost of reimbursed travel expense, sales commissions, third party consulting services and subscription content and 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. Such costs, as a percent of revenues, typically have varied as the mix of revenue (software, hardware, devices, maintenance, support, and services) carrying different margin rates changes from period to period. Costs of revenue does not include the costs of our client service personnel who are responsible for delivering our service offerings. Such costs are included in sales and client service expense.

21

Operating Expenses

Total operating expenses increased 12% to $921 million in the second quarter of 2018, as compared to $820 million in the same period of 2017.

• Sales and client service expenses as a percent of revenues were 46% in the second quarter of 2018, compared to 44% in the same period of 2017. These expenses increased 13% to $635 million in the second quarter of 2018, from $563 million in the same period of 2017. Sales and client service expenses include salaries and benefits of sales, marketing, support, and services personnel, depreciation and other expenses associated with our managed services business, communications expenses, unreimbursed travel expenses, expense for share-based payments, and trade show and advertising costs. The growth in sales and client service expenses is primarily due to the hiring of services personnel to support growth in services revenue.

• Software development expenses as a percent of revenues were 12% in the second quarter of 2018, compared to 11% in the same period of 2017. Expenditures for software development include ongoing development and enhancement of the Cerner Millennium^® and HealtheIntent platforms, with a focus on supporting key initiatives to enhance physician experience, revenue cycle and population health solutions. A summary of our total software development expense in the second quarters of 2018 and 2017 is as follows:

	Three Months Ended
(In thousands)	2018			2017
Software development costs	$	185,486		$	173,282
Capitalized software costs	(68,786		)	(71,087		)
Capitalized costs related to share-based payments	(563		)	(787		)
Amortization of capitalized software costs	52,141			41,427
Total software development expense	$	168,278		$	142,835

• General and administrative expenses as a percent of revenues were 7% in the second quarter of both 2018 and 2017. These expenses increased 5% to $95 million in the second quarter of 2018, from $91 million in the same period in 2017. General and administrative expenses include salaries and benefits for corporate, financial and administrative staffs, utilities, communications expenses, professional fees, depreciation and amortization, transaction gains or losses on foreign currency, expense for share-based payments, acquisition costs and related adjustments. The increase in general and administrative expenses is primarily due to an increase in personnel expenses.

• Amortization of acquisition-related intangibles as a percent of revenues was 2% in the second quarter of both 2018 and 2017. These expenses remained relatively flat at $22 million in the second quarter of 2018, and $23 million in the same period in2017. Amortization of acquisition-related intangibles includes the amortization of customer relationships, acquired technology, trade names, and non-compete agreements recorded in connection with our business acquisitions.

Non-Operating Items

• Other income, net was $7 million in the second quarter of 2018, compared to $3 million in the same period of 2017. The increase is primarily attributable to increased interest income on our cash and investment balances, due to a combination of increased holdings and rising interest rates.

• Our effective tax rate was 21.2% for the second quarter of 2018, compared to 28.7% in the same period of 2017. The decrease in the effective tax rate in 2018 is primarily due to a reduction in the U.S. corporate statutory tax rate from 35% to 21%, effective January 1, 2018. Refer to Note (7) of the notes to condensed consolidated financial statements for further discussion regarding our effective tax rate.

22

Operations by Segment

We have two operating segments: Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The Global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, the Bahamas, Belgium, Bermuda, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, India, Ireland, Kuwait, Luxembourg, Malaysia, Mexico, Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. Refer to Note (11) of the notes to condensed consolidated financial statements for further information regarding our reportable segments.

The following table presents a summary of our operating segment information for the second quarters of 2018 and 2017:

(In thousands)	2018			% of Revenue	2017			% of Revenue	% Change
Domestic Segment
Revenues	$	1,202,064		100%	$	1,155,654		100%	4%
Costs of revenue	208,185			17%	197,336			17%	5%
Operating expenses	551,468			46%	488,955			42%	13%
Total costs and expenses	759,653			63%	686,291			59%	11%
Domestic operating earnings	442,411			37%	469,363			41%	(6)%
Global Segment
Revenues	165,663			100%	136,340			100%	22%
Costs of revenue	30,598			18%	25,727			19%	19%
Operating expenses	73,407			44%	65,581			48%	12%
Total costs and expenses	104,005			63%	91,308			67%	14%
Global operating earnings	61,658			37%	45,032			33%	37%
Other, net	(295,782		)		(265,007		)		12%
Consolidated operating earnings	$	208,287			$	249,388			(16)%

Domestic Segment

• Revenues increased 4% to $1.20 billion in the second quarter of 2018, from $1.16 billion in the same period of 2017. The growth in revenues includes a $40 million increase in professional services revenue, driven by increased contributions from our Cerner ITWorks^SM and revenue cycle services. Refer to Note (2) of the notes to condensed consolidated financial statements for further information regarding revenues disaggregated by our business models.

• Costs of revenue as a percent of revenues were 17% in the second quarter of both 2018 and 2017.

• Operating expenses as a percent of revenues were 46% in the second quarter of 2018, compared to 42% in the same period of 2017. The higher operating expenses as a percent of revenues reflects the hiring of personnel to support revenue growth.

Global Segment

• Revenues increased 22% to $166 million in the second quarter of 2018, from $136 million in the same period of 2017. This increase was driven by growth across most of our business. Refer to Note (2) of the notes to condensed consolidated financial statements for further information regarding revenues disaggregated by our business models.

• Costs of revenue as a percent of revenues were 18% in the second quarter of 2018, compared to 19% in the same period of 2017. The lower costs of revenue as a percent of revenues was primarily driven by a lower amount of third party resources utilized for support and services.

• Operating expenses as a percent of revenues were 44% in the second quarter of 2018, compared to 48% in the same period of 2017. The decrease as a percent of revenues is primarily a reflection of increased revenue in proportion to the amount of our fixed operating expenses.

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Other, net

Operating results not attributed to an operating segment include expenses such as software development, general and administrative expenses, acquisition costs and related adjustments, share-based compensation expense, and certain amortization and depreciation. These expenses increased 12% to $296 million in the second quarter of 2018, from $265 million in the same period of 2017. The increase is primarily due to increased software development expenses, including increased amortization of capitalized software costs resulting from releases of new and enhanced solutions over the last four quarters.

Six Months EndedJune 30, 2018 Compared to Six Months EndedJuly 1, 2017

The following table presents a summary of our operating information for the first six months of 2018 and 2017:

(In thousands)	2018			% of Revenue		2017			% of Revenue		% Change
Revenues	$	2,660,588		100	%	$	2,552,480		100	%	4	%
Costs of revenue	470,061			18	%	422,056			17	%	11	%
Margin	2,190,527			82	%	2,130,424			83	%	3	%
Operating expenses
Sales and client service	1,225,053			46	%	1,123,587			44	%	9	%
Software development	329,895			12	%	288,736			11	%	14	%
General and administrative	187,758			7	%	179,025			7	%	5	%
Amortization of acquisition-related intangibles	44,319			2	%	45,562			2	%	(3	)%
Total operating expenses	1,787,025			67	%	1,636,910			64	%	9	%
Total costs and expenses	2,257,086			85	%	2,058,966			81	%	10	%
Operating earnings	403,502			15	%	493,514			19	%	(18	)%
Other income, net	11,461					1,545
Income taxes	(85,605		)			(142,163		)
Net earnings	$	329,358				$	352,896				(7	)%

Revenues

Revenues increased 4% to $2.66 billion in the first six months of 2018, as compared to $2.55 billion in the same period of 2017. The growth in revenues includes a $96 million increase in professional services revenue, driven by increased contributions from our Cerner ITWorks^SM and revenue cycle services. Refer to Note (2) of the notes to condensed consolidated financial statements for further information regarding revenues disaggregated by our business models.

Costs of Revenue

Costs of revenue as a percent of revenues were 18% in the first six months of 2018, compared to 17% in the same period of 2017. The higher costs of revenue as a percent of revenues was primarily driven by higher third-party costs associated with services revenue.

Operating Expenses

Total operating expenses increased 9% to $1.79 billion in the first six months of 2018, as compared to $1.64 billion in the same period of 2017.

• Sales and client service expenses as a percent of revenues were 46% in the first six months of 2018, compared to 44% in the same period of 2017. These expenses increased 9% to $1.23 billion in the first six months of 2018, from $1.12 billion in the same period of 2017. The growth in sales and client service expenses is primarily due to the hiring of services personnel to support growth in services revenue.

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• Software development expenses as a percent of revenues were 12% in the first six months of 2018, compared to 11% in the same period of 2017. Expenditures for software development include ongoing development and enhancement of the Cerner Millennium^® and HealtheIntent platforms, with a focus on supporting key initiatives to enhance physician experience, revenue cycle and population health solutions. A summary of our total software development expense in the first six months of 2018 and 2017 is as follows:

	Six Months Ended
(In thousands)	2018			2017
Software development costs	$	370,704		$	349,714
Capitalized software costs	(141,857		)	(141,506		)
Capitalized costs related to share-based payments	(1,094		)	(1,460		)
Amortization of capitalized software costs	102,142			81,988
Total software development expense	$	329,895		$	288,736

• General and administrative expenses as a percent of revenues were 7% in the first six months of both 2018 and 2017. These expenses increased 5% to $188 million in the first six months of 2018, from $179 million in the same period of 2017. The increase in general and administrative expenses is primarily due to increased expense associated with share-based payment awards.

• Amortization of acquisition-related intangibles as a percent of revenues was 2% in the first six months of both 2018 and 2017. These expenses remained relatively flat at $44 million in the first six months of 2018, and $46 million in the same period of 2017.

Non-Operating Items

• Other income, net was $11 million in the first six months of 2018, compared to $2 million in the same period of 2017. The increase is primarily attributable to increased interest income on our cash and investment balances, due to a combination of increased holdings and rising interest rates.

• Our effective tax rate was 20.6% for the first six months of 2018, compared to 28.7% in the same period of 2017. The decrease in the effective tax rate in 2018 is primarily due to a reduction in the U.S. corporate statutory tax rate from 35% to 21%, effective January 1, 2018. Refer to Note (7) of the notes to condensed consolidated financial statements for further discussion regarding our effective tax rate.

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Operations by Segment

The following table presents a summary of our operating segment information for the first six months of 2018 and 2017:

(In thousands)	2018			% of Revenue	2017			% of Revenue	% Change
Domestic Segment
Revenues	$	2,337,160		100%	$	2,287,458		100%	2%
Costs of revenue	414,859			18%	373,697			16%	11%
Operating expenses	1,071,339			46%	972,335			43%	10%
Total costs and expenses	1,486,198			64%	1,346,032			59%	10%
Domestic operating earnings	850,962			36%	941,426			41%	(10)%
Global Segment
Revenues	323,428			100%	265,022			100%	22%
Costs of revenue	55,202			17%	48,359			18%	14%
Operating expenses	142,551			44%	129,104			49%	10%
Total costs and expenses	197,753			61%	177,463			67%	11%
Global operating earnings	125,675			39%	87,559			33%	44%
Other, net	(573,135		)		(535,471		)		7%
Consolidated operating earnings	$	403,502			$	493,514			(18)%

Domestic Segment

• Revenues increased 2% to $2.34 billion in the first six months of 2018, from $2.29 billion in the same period of 2017. The growth in revenues includes a $71 million increase in professional services revenue, driven by increased contributions from our Cerner ITWorks^SM and revenue cycle services. Refer to Note (2) of the notes to condensed consolidated financial statements for further information regarding revenues disaggregated by our business models.

• Costs of revenue as a percent of revenues were 18% in the first six months of 2018, compared to 16% in the same period of 2017. The higher costs of revenue as a percent of revenues was primarily driven by higher third-party costs associated with services revenue.

• Operating expenses as a percent of revenues were 46% in the first six months of 2018, compared to 43% in the same period of 2017. The higher operating expenses as a percent of revenues reflects the hiring of personnel to support revenue growth.

Global Segment

• Revenues increased 22% to $323 million in the first six months of 2018, from $265 million in the same period of 2017. This increase was driven by growth across most of our business. Refer to Note (2) of the notes to condensed consolidated financial statements for further information regarding revenues disaggregated by our business models.

• Costs of revenue as a percent of revenues were 17% in the first six months of 2018, compared to 18% in the same period of 2017. The lower costs of revenue as a percent of revenues was primarily driven by a lower amount of third party resources utilized for support and services.

• Operating expenses as a percent of revenues were 44% in the first six months of 2018, compared to 49% in the same period in 2017. The decrease as a percent of revenues is primarily a reflection of increased revenue in proportion to the amount of our fixed operating expenses.

Other, net

These expenses increased 7% to $573 million in the first six months of 2018, from $535 million in the same period of 2017. The increase is primarily due to increased software development expenses, including increased amortization of capitalized software costs resulting from releases of new and enhanced solutions over the last four quarters.

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Liquidity and Capital Resources

Our liquidity is influenced by many factors, including the amount and timing of our revenues, our cash collections from our clients and the amount we invest in software development, acquisitions, capital expenditures, and in recent years, our share repurchase programs.

Our principal sources of liquidity are our cash, cash equivalents, which primarily consist of money market funds, commercial paper and time deposits with original maturities of less than 90 days, and short-term investments. At June 30, 2018, we had cash and cash equivalents of $511 million and short-term investments of $375 million, as compared to cash and cash equivalents of $371 million and short-term investments of $435 million at December 30, 2017.

We maintain a $100 million multi-year revolving credit facility, which expires in October 2020. The facility provides an unsecured revolving line of credit for working capital purposes, along with a letter of credit facility. We have the ability to increase the maximum capacity to $200 million at any time during the facility's term, subject to lender participation. As of June 30, 2018, we had no outstanding borrowings under this facility; however, we had $47 million of outstanding letters of credit, which reduced our available borrowing capacity to $53 million.

We believe that our present cash position, together with cash generated from operations, short-term investments and, if necessary, our available line of credit, will be sufficient to meet anticipated cash requirements for the next 12 months.

The following table summarizes our cash flows in the first sixmonths of 2018 and 2017:

	Six Months Ended
(In thousands)	2018			2017
Cash flows from operating activities	$	708,666		$	595,828
Cash flows from investing activities	(211,182		)	(341,503		)
Cash flows from financing activities	(350,280		)	27,650
Effect of exchange rate changes on cash	(7,159		)	7,594
Total change in cash and cash equivalents	140,045			289,569
Cash and cash equivalents at beginning of period	370,923			170,861
Cash and cash equivalents at end of period	$	510,968		$	460,430
Free cash flow (non-GAAP)	$	376,721		$	263,490

Cash from Operating Activities

	Six Months Ended
(In thousands)	2018			2017
Cash collections from clients	$	2,592,826		$	2,644,616
Cash paid to employees and suppliers and other	(1,962,652		)	(1,940,617		)
Cash paid for interest	(8,333		)	(9,067		)
Cash paid for taxes, net of refunds	86,825			(99,104		)
Total cash from operations	$	708,666		$	595,828

Cash flow from operations increased $113 million in the first sixmonths of 2018 when compared to the same period of 2017, due primarily to net refunds of taxes. Days sales outstanding was 77 days in the second quarter of 2018, compared to 73 days for both the first quarter of 2018 and second quarter of 2017. Revenues provided under support and maintenance agreements represent recurring cash flows. We expect these revenues to continue to grow as the base of our installed systems grows.

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Cash from Investing Activities

	Six Months Ended
(In thousands)	2018			2017
Capital purchases	$	(188,994	)	$	(189,372	)
Capitalized software development costs	(142,951		)	(142,966		)
Sales and maturities of investments, net of purchases	137,136			4,871
Purchases of other intangibles	(16,373		)	(14,036		)
Total cash flows from investing activities	$	(211,182	)	$	(341,503	)

Cash flows from investing activities consist primarily of capital spending and short-term investment activities.

Our capital spending in the first sixmonths of 2018 was driven by capitalized equipment purchases primarily to support growth in our managed services business, investments in a cloud infrastructure to support cloud-based solutions, building and improvement purchases to support our facilities requirements and capitalized spending to support our ongoing software development initiatives. Total capital spending for 2018 is expected to exceed 2017 levels, primarily driven by an increase in spending to support our facilities requirements, including commencement of construction on the next two phases of our Innovations Campus (office space development located in Kansas City, Missouri); along with increased capital purchases to support the growth in our managed services business.

Short-term investment activity historically consists of the investment of cash generated by our business in excess of what is necessary to fund operations. The 2017 activity was impacted by a change in investment mix, where we invested more heavily in cash equivalents versus short-term and long-term investments. The 2018 activity is impacted by excess cash being used to repurchase shares of our common stock, as discussed further below.

On July 27, 2018 we acquired a minority interest in Essence Group Holdings Corporation for cash consideration of $266 million. Refer to Note (4) of the notes to condensed consolidated financial statements for further information regarding this investment.

Cash from Financing Activities

	Six Months Ended
(In thousands)	2018			2017
Repayment of long-term debt	$	(75,000	)	$	—
Cash from option exercises (net of taxes paid in connection with shares surrendered by associates)	14,035			30,321
Treasury stock purchases	(287,624		)	—
Contingent consideration payments for acquisition of businesses	(1,691		)	(2,671		)
Total cash flows from financing activities	$	(350,280	)	$	27,650

In March 2018, we repaid our $75 million floating rate Series 2015-C Notes due February 15, 2022.

Cash inflows from stock option exercises are dependent on a number of factors, including the price of our common stock, grant activity under our stock option and equity plans, and overall market volatility. We expect net cash inflows from stock option exercises to continue throughout 2018 based on the number of exercisable options as of June 30, 2018 and our current stock price.

During the six months endedJune 30, 2018, we repurchased 4.8 million shares of our common stock for total consideration of $288 million. At June 30, 2018, $639 million remains available for repurchase under our current program. We may continue to repurchase shares under this program in 2018, which will be dependent on a number of factors, including the price of our common stock. Although we may continue to repurchase shares, there is no assurance that we will repurchase up to the full amount remaining under the program. Refer to Note (9) of the notes to condensed consolidated financial statements for further information regarding our share repurchase program.

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Free Cash Flow (Non-GAAP)

	Three Months Ended							Six Months Ended
(In thousands)	2018			2017				2018			2017
Cash flows from operating activities (GAAP)	$	299,701		$	292,243			$	708,666		$	595,828
Capital purchases	(109,283		)	(101,307		)		(188,994		)	(189,372		)
Capitalized software development costs	(69,349		)	(71,874		)		(142,951		)	(142,966		)
Free cash flow (non-GAAP)	$	121,069		$	119,062		113,231,000	$	376,721		$	263,490

Free cash flow increased $113 million in the first sixmonths of 2018 compared to the same period in 2017, primarily due to an increase in cash from operations. Free cash flow is a non-GAAP financial measure used by management along with GAAP results to analyze our earnings quality and overall cash generation of the business. We define free cash flow as cash flows from operating activities reduced by capital purchases and capitalized software development costs. The table above sets forth a reconciliation of free cash flow to cash flows from operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow. The presentation of free cash flow is not meant to be considered in isolation, nor as a substitute for, or superior to, GAAP results, and investors should be aware that non-GAAP measures have inherent limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Free cash flow may also be different from similar non-GAAP financial measures used by other companies and may not be comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation. We believe free cash flow is important to enable investors to better understand and evaluate our ongoing operating results and allows for greater transparency in the review and understanding of our overall financial, operational and economic performance, because free cash flow takes into account certain capital expenditures necessary to operate our business.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

No material changes.

Item 4. Controls and Procedures

a) Evaluation of Disclosure Controls and Procedures.

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of our disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this quarterly report on Form 10-Q (the "Evaluation Date"). Based upon that evaluation, our CEO and CFO have concluded that, as of the Evaluation Date, our disclosure controls and procedures were designed, and were effective, to provide reasonable assurance that the information required to be disclosed by us in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time period specified in SEC rules and forms and is accumulated and communicated to our management, including our CEO and CFO, to allow timely decisions regarding required disclosure.

b) Changes in Internal Control over Financial Reporting.

During the fiscal quarter ended June 30, 2018, we initiated a plan that calls for modifications and enhancements to our internal controls over financial reporting in relation to our upcoming adoption of the new lease standard effective in the first quarter of 2019. Such plan resulted in changes to certain processes and procedures during the quarter. Specifically, we implemented/modified internal controls to address:

•Monitoring of the adoption process; and

• The gathering of information and evaluation of analysis used in the development of disclosures required prior to the new standard's adoption.

As we continue the implementation process, we expect that there will be additional changes in internal controls over financial reporting.

Except as disclosed above, there were no other changes in our internal controls over financial reporting during the fiscal quarter ended June 30, 2018, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

c) Limitations on Controls.

Our management can provide no assurance that our disclosure controls and procedures or our internal control over financial reporting can prevent all errors and all fraud under all circumstances. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been or will be detected. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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Part II. Other Information

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Issuer Purchases of Equity Securities

The table below provides information with respect to Common Stock purchases by the Company during the second fiscal quarter of 2018.

	Total Number of Shares Purchased (a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (b)
Period
April 1, 2018 - April 28, 2018	—	$	—	—	$	339,023,012
April 29, 2018 - May 26, 2018	3,408,003	58.76		3,402,811	639,091,129
May 27, 2018 - June 30, 2018	41,103	59.73		—	639,091,129
Total	3,449,106	$	58.77	3,402,811

(a) Of the 3,449,106 shares of common stock, par value $0.01 per share, presented in the table above, 46,295 were originally granted to employees as restricted stock pursuant to our 2011 Omnibus Equity Incentive Plan (the "Omnibus Plan"). The Omnibus Plan allows for the withholding of shares to satisfy the minimum tax obligations due upon the vesting of restricted stock. Pursuant to the Omnibus Plan, the 46,295 shares reflected above were relinquished by employees in exchange for our agreement to pay U.S. federal and state withholding obligations resulting from the vesting of the Company’s restricted stock.

(b) As announced on May 25, 2017, our Board of Directors authorized a share repurchase program that allows the Company to repurchase up to $500 million of shares of our common stock, excluding transaction costs. The repurchases are to be effectuated in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers. No time limit was set for the completion of the program. As announced on May 21, 2018, our Board of Directors approved an amendment to the repurchase program that was authorized in May 2017. Under the amendment, the Company was authorized to repurchase up to an additional $500 million of shares of our common stock, for an aggregate of $1 billion, excluding transaction costs. During the six months endedJune 30, 2018, we repurchased 4.8 million shares for total consideration of $288 million under the program pursuant to Rule 10b5-1 plans. At June 30, 2018, $639 million remains available for repurchase under the program. Refer to Note (9) of the notes to condensed consolidated financial statements for further information regarding our share repurchase program.

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Item 6. Exhibits

(a)	Exhibits
31.1	Certification of Brent Shafer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
31.2	Certification of Marc G. Naughton pursuant to Section 302 of Sarbanes-Oxley Act of 2002
32.1	Certification of Brent Shafer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
32.2	Certification of Marc G. Naughton pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CERNER CORPORATION
	Registrant
Date: August 3, 2018	By:	/s/ Marc G. Naughton
		Marc G. Naughton
		Executive Vice President and Chief
		Financial Officer (duly authorized
		officer and principal financial officer)

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Brent Shafer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cerner Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)         designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)         designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)         evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)         disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)         all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)         any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 3, 2018	/s/ Brent Shafer
	Brent Shafer
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Marc G. Naughton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cerner Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)         designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)         designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)         evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)         disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)         all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)         any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 3, 2018	/s/ Marc G. Naughton
	Marc G. Naughton
	Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION FURNISHED PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2018 (the "Report") by Cerner Corporation (the "Company"), the undersigned Chief Executive Officer of the Company hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Brent Shafer                              

Brent Shafer, Chairman of the Board

and Chief Executive Officer

(Principal Executive Officer)

Date: August 3, 2018

EX-32.2

Exhibit 32.2

CERTIFICATION FURNISHED PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2018 (the "Report") by Cerner Corporation (the "Company"), the undersigned Chief Financial Officer of the Company hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Marc G. Naughton                                

Marc G. Naughton, Executive Vice President

and Chief Financial Officer

(Principal Financial Officer)

Date: August 3, 2018

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 25, 2018
Entity Information [Line Items]
Entity Registrant Name	CERNER CORP /MO/
Entity Central Index Key	0000804753
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		329,004,371

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 510,968	$ 370,923
Short-term investments	374,596	434,844
Receivables, net	1,151,860	1,042,781
Inventory	15,345	15,749
Prepaid expenses and other	326,623	515,930
Total current assets	2,379,392	2,380,227
Property and equipment, net	1,666,309	1,603,319
Software development costs, net	867,284	822,159
Goodwill	849,455	853,005
Intangible assets, net	439,999	479,753
Long-term investments	118,286	196,837
Other assets	208,274	134,011
Total assets	6,528,999	6,469,311
Current liabilities:
Accounts payable	284,203	218,996
Current installments of long-term debt and capital lease obligations	2,155	11,585
Deferred revenue	278,668	311,337
Accrued payroll and tax withholdings	205,337	183,770
Other accrued expenses	65,324	63,907
Total current liabilities	835,687	789,595
Long-term debt and capital lease obligations	438,760	515,130
Deferred income taxes and other liabilities	371,381	365,674
Deferred revenue	4,317	13,564
Total liabilities	1,650,145	1,683,963
Shareholders' Equity:
Common stock, $.01 par value, 500,000,000 shares authorized, 360,501,265 shares issued at June 30, 2018 and 359,204,864 shares issued at December 30, 2017	3,605	3,592
Additional paid-in capital	1,443,803	1,380,371
Retained earnings	5,275,824	4,938,866
Treasury stock, 31,536,972 shares at June 30, 2018 and 26,743,517 shares at December 30, 2017	(1,751,723)	(1,464,099)
Accumulated other comprehensive loss, net	(92,655)	(73,382)
Total shareholders' equity	4,878,854	4,785,348
Total liabilities and shareholders' equity	$ 6,528,999	$ 6,469,311

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 30, 2017
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	360,501,265	359,204,864
Treasury Stock, Shares	31,536,972	26,743,517

XML

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Revenues:
Revenues	$ 1,367,727	$ 1,291,994	$ 2,660,588	$ 2,552,480
Costs and expenses:
Costs of revenue	238,783	223,063	470,061	422,056
Sales and client service	635,105	563,387	1,225,053	1,123,587
Software development (Includes amortization of $52,141 and $102,142 for the three and six months ended June 30, 2018, respectively; and $41,427 and $81,988 for the three and six months ended July 1, 2017, respectively)	168,278	142,835	329,895	288,736
General and administrative	95,464	90,633	187,758	179,025
Amortization of acquisition-related intangibles	21,810	22,688	44,319	45,562
Total costs and expenses	1,159,440	1,042,606	2,257,086	2,058,966
Operating earnings	208,287	249,388	403,502	493,514
Other income (expense), net	6,597	2,661	11,461	1,545
Earnings before income taxes	214,884	252,049	414,963	495,059
Income taxes	(45,527)	(72,366)	(85,605)	(142,163)
Net earnings	$ 169,357	$ 179,683	$ 329,358	$ 352,896
Basic earnings per share	$ 0.51	$ 0.54	$ 0.99	$ 1.07
Diluted earnings per share	$ 0.51	$ 0.53	$ 0.98	$ 1.05
Basic weighted average shares outstanding	330,206	331,056	331,479	330,607
Diluted weighted average shares outstanding	333,562	337,898	335,223	337,116

XML

Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income Statement [Abstract]
Software development, amortization	$ 52,141	$ 41,427	$ 102,142	$ 81,988

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net earnings	$ 169,357	$ 179,683	$ 329,358	$ 352,896
Foreign currency translation adjustment and other (net of taxes (benefit) of $(335) and $585 for the three and six months ended June 30, 2018; and $904 and $1,091 for the three and six months ended July 1, 2017)	(21,811)	16,158	(19,017)	26,563
Unrealized holding gain (loss) on available-for-sale investments (net of taxes (benefit) of $209 and $(84) for the three and six months ended June 30, 2018; and $(33) and $35 for the three and six months ended July 1, 2017)	642	(54)	(256)	57
Comprehensive income	$ 148,188	$ 195,787	$ 310,085	$ 379,516

XML

Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Foreign currency translation adjustment and other, taxes (benefit)	$ (335)	$ 904	$ 585	$ 1,091
Change in net unrealized holding gain (loss) on available-for-sale investments, taxes (benefit)	$ 209	$ (33)	$ (84)	$ 35

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 329,358	$ 352,896
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	312,645	278,889
Share-based compensation expense	49,139	39,359
Provision for deferred income taxes	1,736	25,849
Changes in assets and liabilities (net of businesses acquired):
Receivables, net	(186,039)	(79,723)
Inventory	390	211
Prepaid expenses and other	181,035	106
Accounts payable	43,364	33,647
Accrued income taxes	7,919	(3,846)
Deferred revenue	(40,132)	12,336
Other accrued liabilities	9,251	(63,896)
Net cash provided by operating activities	708,666	595,828
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital purchases	(188,994)	(189,372)
Capitalized software development costs	(142,951)	(142,966)
Purchases of investments	(194,592)	(182,484)
Sales and maturities of investments	331,728	187,355
Purchase of other intangibles	(16,373)	(14,036)
Net cash used in investing activities	(211,182)	(341,503)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of Long-term Debt	(75,000)	0
Proceeds from exercise of options	21,343	38,293
Payments to taxing authorities in connection with shares directly withheld from associates	(7,308)	(7,972)
Treasury stock purchases	(287,624)	0
Contingent consideration payments for acquisition of businesses	(1,691)	(2,671)
Net cash provided by (used in) financing activities	(350,280)	27,650
Effect of exchange rate changes on cash and cash equivalents	(7,159)	7,594
Net increase (decrease) in cash and cash equivalents	140,045	289,569
Cash and cash equivalents at beginning of period	370,923	170,861
Cash and cash equivalents at end of period	$ 510,968	$ 460,430

XML

Interim Statement Presentation (Notes)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Interim Statement Presentation

Interim Statement Presentation

Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by Cerner Corporation ("Cerner," the "Company," "we," "us" or "our") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our latest annual report on Form 10-K.

In management's opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. Our interim results as presented in this Form 10-Q are not necessarily indicative of the operating results for the entire year.

The condensed consolidated financial statements were prepared using GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

Fiscal Period End

Our second fiscal quarter ends on the Saturday closest to June 30. The 2018 and 2017 second quarters ended on June 30, 2018 and July 1, 2017, respectively. All references to years in these notes to condensed consolidated financial statements represent the respective three or six months ended on such dates, unless otherwise noted.

Supplemental Disclosures of Cash Flow Information

	Six Months Ended
(In thousands)	2018			2017
Cash paid during the period for:
Interest (including amounts capitalized of $5,874 and $5,520, respectively)	$	8,333		$	9,067
Income taxes, net of refunds	(86,825		)	99,104

Accounting Pronouncements Adopted in 2018

Revenue Recognition. In the first quarter of 2018, we adopted new revenue guidance. Refer to Note (2) for further details.

Financial Instruments.In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which was subsequently amended in February 2018 by ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Such guidance impacts how we account for our investments reported under the cost method of accounting as follows:

• Equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are required to be measured at fair value with changes in fair value recognized in net earnings. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

• The impairment assessment of equity investments without readily determinable fair values will require a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value.

We adopted this new guidance effective for our first quarter of 2018. Provisions within the guidance applicable to the Company were required to be applied prospectively. The adoption of such guidance did not have a material impact on our condensed consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements

Leases.In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which introduces a new model that requires most leases to be reported on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The standard requires the use of the modified retrospective (cumulative effect) transition approach. ASU 2016-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt.

In the second quarter of 2018, we continued our analysis of contractual arrangements that may qualify as leases under the new standard. We currently expect the most significant impact of this new guidance will be the recognition of right-of-use assets and lease liabilities for our operating leases of office space. At December 30, 2017, we disclosed aggregate minimum future payments under these arrangements of $124 million within Note 16, Commitments in our most recent Form 10-K. We do not expect the new standard to have a significant impact on our consolidated statements of operations.

Our analysis and evaluation of the new standard will continue through the effective date in the first quarter of 2019. We must complete our analysis of contractual arrangements, quantify all impacts of this new guidance, and evaluate related disclosures. We must also implement any necessary changes/modifications to processes, accounting systems, and internal controls.

Credit Losses on Financial Instruments.In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides new guidance regarding the measurement and recognition of credit impairment for certain financial assets. Such guidance will impact how we determine our allowance for estimated uncollectible receivables and evaluate our available-for-sale investments for impairment. ASU 2016-13 is effective for the Company in the first quarter of 2020, with early adoption permitted in the first quarter of 2019. We are currently evaluating the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt.

Callable Debt Securities.In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for certain investments in callable debt securities purchased at a premium by requiring the premium be amortized to the earliest call date. Such guidance will impact how premiums are amortized on our available-for-sale investments. ASU 2017-08 is effective for the Company in the first quarter of 2019, with early adoption permitted. The standard requires the use of the modified retrospective (cumulative effect) transition approach. We do not expect ASU 2017-08 to have a material impact on our consolidated financial statements and related disclosures, and we do not expect to early adopt.

Accumulated Other Comprehensive Income.In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for "stranded tax effects" resulting from certain U.S. tax reform enacted in December 2017. Such "stranded tax effects" were created when deferred tax assets and liabilities related to items in AOCI were remeasured at the lower U.S. corporate tax rate in the period of enactment. ASU 2018-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. The guidance in this ASU is to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. corporate tax rate was recognized. We are currently evaluating the effect that ASU 2018-02 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt.

XML

Revenue from Contracts with Customers (Notes)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaced most existing revenue recognition guidance in U.S. GAAP. The new standard introduces a five-step process to be followed in determining the amount and timing of revenue recognition. It also provides guidance on accounting for costs incurred to obtain or fulfill contracts with customers, and establishes disclosure requirements which are more extensive than those required under prior U.S. GAAP.

ASU 2014-09, as amended ("Topic 606"), was effective for the Company in the first quarter of 2018. We selected the modified retrospective (cumulative effect) transition method of adoption. Such method provides that the cumulative effect from prior periods upon applying the new guidance to contracts which were not complete as of the adoption date, be recognized in our condensed consolidated balance sheets as of December 31, 2017, including an adjustment to retained earnings. A summary of such cumulative effect adjustment is as follows:

(In thousands)	Increase / (Decrease)
Receivables, net	$	(79,492	)
Prepaid expenses and other	(2,253		)
Other assets	81,157
Accounts payable	(9,361		)
Deferred income taxes and other liabilities	1,173
Retained earnings	7,600

Prior periods were not retrospectively adjusted. The impact of applying Topic 606 (versus prior U.S. GAAP) increased revenues by $21 million and $64 million, and earnings before income taxes by $15 million and $13 million, for the three and six months endedJune 30, 2018, respectively. The impact of applying Topic 606 (versus prior U.S. GAAP) did not have a significant impact on other line items in our condensed consolidated statements of operations, statements of comprehensive income, and statements of cash flows for the three and six month periods ended June 30, 2018. Additionally, the impact of applying Topic 606 did not have a significant impact on our condensed consolidated balance sheet as of June 30, 2018.

Revenue Recognition Policy

We enter into contracts with customers that may include various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The predominant model of customer procurement involves multiple deliverables and includes a software license agreement, project-related implementation and consulting services, software support, hosting services, and computer hardware. We allocate revenues to each performance obligation within an arrangement based on estimated relative stand-alone selling price. Revenue is then recognized for each performance obligation upon transfer of control of the software solution or services to the customer in an amount that reflects the consideration we expect to receive.

Generally, we recognize revenue under Topic 606 for each of our performance obligations as follows:

• Perpetual software licenses - We recognize perpetual software license revenues when control of such licenses are transferred to the client ("point in time"). We determine the amount of consideration allocated to this performance obligation using the residual approach.

• Software as a service - We recognize software as a service ratably over the related hosting period ("over time").

• Time-based software and content license fees - We recognize a license component of time-based software and content license fees upon delivery to the client ("point in time") and a non-license component (i.e. support) ratably over the respective contract term ("over time").

• Hosting - Remote hosting recurring services are recognized ratably over the hosting service period ("over time"). Certain of our hosting arrangements contain fees deemed to be a "material right" under Topic 606. We recognize such fees over the term that will likely affect the client's decision about whether to renew the related hosting service ("over time").

• Services - We recognize revenue for fixed fee services arrangements over time, utilizing a labor hours input method. For fee-for-service arrangements, we recognize revenue over time as hours are worked at the rates clients are invoiced, utilizing the "as invoiced" practical expedient available in Topic 606. For stand-ready services arrangements, we recognize revenue ratably over the related service period.

• Support and maintenance - We recognize support and maintenance fees ratably over the related contract period ("over time").

• Hardware - We recognize hardware revenues when control of such hardware/devices is transferred to the client ("point in time").

• Transaction processing - We recognize transaction processing revenues ratably as we provide such services ("over time").

Such revenues are recognized net of any taxes collected from customers and subsequently remitted to governmental authorities.

Disaggregation of Revenue

The following tables present revenues disaggregated by our business models:

	Three Months Ended
	2018						2017(1)
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Licensed software	$	161,220	$	11,168	$	172,388	$	146,895	$	8,991	$	155,886
Technology resale	61,789		13,468		75,257		66,358		6,774		73,132
Subscriptions	76,419		6,532		82,951		112,518		6,272		118,790
Professional services	387,540		59,778		447,318		347,313		48,850		396,163
Managed services	261,787		23,765		285,552		242,673		19,006		261,679
Support and maintenance	229,779		49,177		278,956		214,642		44,932		259,574
Reimbursed travel	23,530		1,775		25,305		25,255		1,515		26,770
Total revenues	$	1,202,064	$	165,663	$	1,367,727	$	1,155,654	$	136,340	$	1,291,994
(1)As noted above, prior period amounts were not adjusted upon our adoption of Topic 606.

	Six Months Ended
	2018						2017(1)
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Licensed software	$	285,314	$	21,893	$	307,207	$	279,427	$	18,787	$	298,214
Technology resale	120,038		18,595		138,633		126,871		10,368		137,239
Subscriptions	146,271		13,316		159,587		220,770		11,441		232,211
Professional services	767,384		121,202		888,586		696,177		96,301		792,478
Managed services	507,932		45,925		553,857		485,306		36,192		521,498
Support and maintenance	464,015		99,505		563,520		432,386		89,292		521,678
Reimbursed travel	46,206		2,992		49,198		46,521		2,641		49,162
Total revenues	$	2,337,160	$	323,428	$	2,660,588	$	2,287,458	$	265,022	$	2,552,480
(1)As noted above, prior period amounts were not adjusted upon our adoption of Topic 606.

The following table presents our revenues disaggregated by timing of revenue recognition:

	Three Months Ended						Six Months Ended
	2018						2018
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Revenue recognized over time	$	1,062,878	$	144,262	$	1,207,140	$	2,091,373	$	288,397	$	2,379,770
Revenue recognized at a point in time	139,186		21,401		160,587		245,787		35,031		280,818
Total revenues	$	1,202,064	$	165,663	$	1,367,727	$	2,337,160	$	323,428	$	2,660,588

Transaction Price Allocated to Remaining Performance Obligations

As of June 30, 2018, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) for executed contracts approximates $14.79 billion of which we expect to recognize approximately 31% of the revenue over the next 12 months and the remainder thereafter.

Contract Liabilities

Our payment arrangements with clients typically include an initial payment due upon contract signing and date-based licensed software payment terms and payments based upon delivery for services, hardware and sublicensed software. Customer payments received in advance of satisfaction of the related performance obligations are deferred as contract liabilities. Such amounts are classified in our condensed consolidated balance sheets as either current or long-term deferred revenue. During the six months ended June 30, 2018, we recognized $287 million of revenues that were included in our contract liability balance at the beginning of such period.

Costs to Obtain or Fulfill a Contract

We have determined the only significant incremental costs incurred to obtain contracts with clients within the scope of Topic 606 are sales commissions paid to our associates. We record sales commissions as an asset, and amortize to expense ratably over the remaining performance periods of the related contracts with remaining performance obligations. At June 30, 2018, our condensed consolidated balance sheet includes an $85 million asset related to sales commissions to be expensed in future periods, which is included in other assets.

During the three and six months endedJune 30, 2018, we recognized $10 million and $18 million, respectively, of amortization related to this sales commissions asset, which is included in costs of revenue in our condensed consolidated statements of operations.

Significant Judgments when Applying Topic 606

Our contracts with clients typically include various combinations of our software solutions and related services. Determining whether such software solutions and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Specifically, judgment is required to determine whether software licenses are distinct from services and hosting included in an arrangement.

Contract transaction price is allocated to performance obligations using estimated stand-alone selling price. Judgment is required in estimating stand-alone selling price for each distinct performance obligation. We determine stand-alone selling price maximizing observable inputs such as stand-alone sales when they exist or substantive renewal prices charged to clients. In instances where stand-alone selling price is not observable, we utilize an estimate of stand-alone selling price. Such estimates are derived from various methods that include: cost plus margin, historical pricing practices, and the residual approach, which requires a considerable amount of judgment.

The labor hours input method used for our fixed fee services performance obligation is dependent on our ability to reliably estimate the direct labor hours to complete a project, which may span several years. We utilize our historical project experience and detailed planning process as a basis for our future estimates to complete current projects.

Certain of our arrangements contain variable consideration. We do not believe our estimates of variable consideration to be significant to our determination of revenue recognition.

Practical Expedients

We have reflected the aggregate effect of all contract modifications occurring prior to the Topic 606 adoption date when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations.

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Receivables

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Receivables

Receivables

Receivables consist of client receivables and the current portion of amounts due under sales-type leases.

Client receivables represent recorded revenues that have either been billed, or for which we have an unconditional right to invoice and receive payment in the future. We periodically provide long-term financing options to creditworthy clients through extended payment terms. Generally, these extended payment terms provide for date-based payments over a fixed period, not to exceed the term of the overall arrangement. Thus, our portfolio of client contracts contains a financing component, which is recognized over time as a component of other income, net in our condensed consolidated statements of operations.

Lease receivables represent our net investment in sales-type leases resulting from the sale of certain health care devices to our clients.

We perform ongoing credit evaluations of our clients and generally do not require collateral from our clients. We provide an allowance for estimated uncollectible accounts based on specific identification, historical experience and our judgment.

A summary of net receivables is as follows:

(In thousands)	June 30, 2018		December 30, 2017
Client receivables	$	1,204,487	$	1,082,886
Less: Allowance for doubtful accounts	61,639		52,786
Client receivables, net of allowance	1,142,848		1,030,100
Current portion of lease receivables	9,012		12,681
Total receivables, net	$	1,151,860	$	1,042,781

During the second quarter of 2008, Fujitsu Services Limited's ("Fujitsu") contract as the prime contractor in the National Health Service ("NHS") initiative to automate clinical processes and digitize medical records in the Southern region of England was terminated. This gave rise to the termination of our subcontract for the project. We continue to be in dispute with Fujitsu regarding Fujitsu's obligation to pay amounts due upon termination, including our client receivables and damages for pre-termination losses. We are working with Fujitsu to resolve these issues based on processes provided for in the subcontract. Part of that process required final resolution of disputes between Fujitsu and the NHS regarding the prime contract termination, which has now occurred. As of June 30, 2018, it remains unlikely that our matter with Fujitsu will be resolved in the next 12 months. Therefore, these client receivables have been classified as long-term and represent less than the majority of other long-term assets at June 30, 2018 and December 30, 2017. While the ultimate collectability of the client receivables pursuant to this process is uncertain, we believe that we have valid and equitable grounds for recovery of such amounts and that collection of recorded amounts is probable. Nevertheless, it is reasonably possible that our estimates regarding collectability of such amounts might materially change.

During the first six months of 2018 and 2017, we received total client cash collections of $2.59 billion and $2.64 billion, respectively.

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Investments

6 Months Ended

Jun. 30, 2018

Investments [Abstract]

Investments

Investments

Available-for-sale investments at June 30, 2018 were as follows:

(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash equivalents:
Money market funds	$	42,195	$	—	$	—		$	42,195
Time deposits	78,581		—		—			78,581
Total cash equivalents	120,776		—		—			120,776
Short-term investments:
Time deposits	28,988		—		—			28,988
Commercial paper	77,950		—		(98		)	77,852
Government and corporate bonds	268,884		—		(1,128		)	267,756
Total short-term investments	375,822		—		(1,226		)	374,596
Long-term investments:
Government and corporate bonds	105,251		—		(753		)	104,498
Total available-for-sale investments	$	601,849	$	—	$	(1,979	)	$	599,870

Available-for-sale investments at December 30, 2017 were as follows:

(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash equivalents:
Money market funds	$	99,472	$	—	$	—		$	99,472
Time deposits	60,226		—		—			60,226
Government and corporate bonds	850		—		—			850
Total cash equivalents	160,548		—		—			160,548
Short-term investments:
Time deposits	40,186		—		—			40,186
Commercial paper	147,646		2		(139		)	147,509
Government and corporate bonds	247,626		—		(477		)	247,149
Total short-term investments	435,458		2		(616		)	434,844
Long-term investments:
Government and corporate bonds	185,478		—		(1,026		)	184,452
Total available-for-sale investments	$	781,484	$	2	$	(1,642	)	$	779,844

We sold available-for-sale investments for proceeds of $45 million and $20 million during the six months endedJune 30, 2018 and July 1, 2017, respectively, resulting in insignificant gains/losses in each period.

Other Investments

On July 27, 2018we acquired a minority interest in Essence Group Holdings Corporation ("Essence Group") for cash consideration of $266 million under a Stock Purchase Agreement ("SPA") dated July 9, 2018. Concurrently with the execution of the SPA, we announced a strategic operating relationship with Lumeris Healthcare Outcomes, LLC ("Lumeris"), a subsidiary of Essence Group, pursuant to which we will collaborate to bring to market an EHR-agnostic offering, Maestro Advantage^TM, designed to help providers who participate in value-based arrangements, including Medicare Advantage and provider-sponsored health plans, control costs and improve outcomes.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We determine fair value measurements used in our consolidated financial statements based upon the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

• Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

• Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

• Level 3 – Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table details our financial assets measured and recorded at fair value on a recurring basis at June 30, 2018:

(In thousands)
		Fair Value Measurements Using
Description	Balance Sheet Classification	Level 1		Level 2		Level 3
Money market funds	Cash equivalents	$	42,195	$	—	$	—
Time deposits	Cash equivalents	—		78,581		—
Time deposits	Short-term investments	—		28,988		—
Commercial paper	Short-term investments	—		77,852		—
Government and corporate bonds	Short-term investments	—		267,756		—
Government and corporate bonds	Long-term investments	—		104,498		—

The following table details our financial assets measured and recorded at fair value on a recurring basis at December 30, 2017:

(In thousands)
		Fair Value Measurements Using
Description	Balance Sheet Classification	Level 1		Level 2		Level 3
Money market funds	Cash equivalents	$	99,472	$	—	$	—
Time deposits	Cash equivalents	—		60,226		—
Government and corporate bonds	Cash equivalents	—		850		—
Time deposits	Short-term investments	—		40,186		—
Commercial paper	Short-term investments	—		147,509		—
Government and corporate bonds	Short-term investments	—		247,149		—
Government and corporate bonds	Long-term investments	—		184,452		—

We estimate the fair value of our long-term, fixed rate debt using a Level 3 discounted cash flow analysis based on current borrowing rates for debt with similar maturities. We estimate the fair value of our long-term, variable rate debt using a Level 3 discounted cash flow analysis based on LIBOR rate forward curves. The fair value of our long-term debt, including current maturities, at June 30, 2018 and December 30, 2017 was approximately $431 million and $519 million, respectively. The carrying amount of such debt at June 30, 2018 and December 30, 2017 was $425 million and $500 million, respectively.

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Indebtedness (Notes)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Indebtedness

Long-term Debt and Capital Lease Obligations

The following is a summary of indebtedness outstanding:

(In thousands)	June 30, 2018			December 30, 2017
Senior Notes	$	425,000		$	500,000
Capital lease obligations	2,155			13,068
Other	14,162			14,162
Debt and capital lease obligations	441,317			527,230
Less: debt issuance costs	(402		)	(515		)
Debt and capital lease obligations, net	440,915			526,715
Less: current portion	(2,155		)	(11,585		)
Long-term debt and capital lease obligations	$	438,760		$	515,130

In March 2018, we repaid our $75 million floating rate Series 2015-C Notes due February 15, 2022.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We determine the tax provision for interim periods using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.

H.R. 1, An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 ("U.S. Tax Reform"), was enacted on December 22, 2017. U.S. Tax Reform provides for, among other things, the reduction of the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. Relevant accounting guidance provides that the impact of U.S. Tax Reform, as of the date of enactment, may be provisionally recorded and adjusted during a measurement period of up to one year. As of December 30, 2017, we provisionally recorded certain impacts of U.S. Tax Reform including an adjustment to our net deferred tax liability arising from the reduction in the federal tax rate as well as the impact of mandatory deemed repatriation. Additional analysis and computations are being performed with respect to these provisional amounts. The ultimate impact as of the enactment date may differ from the provisional amounts we have recorded, possibly materially, due to among other things, additional regulatory guidance that may be issued and changes to our assumptions and interpretations. No measurement period adjustments were recorded during the six months endedJune 30, 2018.

Our effective tax rate was 20.6% and 28.7% for the first six months of 2018 and 2017, respectively. The decrease in the effective tax rate in 2018 is primarily due to the aforementioned reduction in the U.S. corporate statutory tax rate from 35% to 21%.

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows:

	Three Months Ended
	2018					2017
	Earnings		Shares	Per-Share		Earnings		Shares	Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic earnings per share:
Income available to common shareholders	$	169,357	330,206	$	0.51	$	179,683	331,056	$	0.54
Effect of dilutive securities:
Stock options and non-vested shares	—		3,356			—		6,842
Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	169,357	333,562	$	0.51	$	179,683	337,898	$	0.53

For the three months ended June 30, 2018 and July 1, 2017, options to purchase 14.0 million and 11.0 million shares of common stock at per share prices ranging from $47.99 to $73.40 and $50.04 to $73.40, respectively, were outstanding but were not included in the computation of diluted earnings per share because they were anti-dilutive.

	Six Months Ended
	2018					2017
	Earnings		Shares	Per-Share		Earnings		Shares	Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic earnings per share:
Income available to common shareholders	$	329,358	331,479	$	0.99	$	352,896	330,607	$	1.07
Effect of dilutive securities:
Stock options and non-vested shares	—		3,744			—		6,509
Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	329,358	335,223	$	0.98	$	352,896	337,116	$	1.05

For the six months ended June 30, 2018 and July 1, 2017, options to purchase 12.4 million and 11.7 million shares of common stock at per share prices ranging from $50.04 to $73.40 and $47.38 to $73.40, respectively, were outstanding but were not included in the computation of diluted earnings per share because they were anti-dilutive.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation and Equity

Share-Based Compensation and Equity

Stock Options

Stock option activity for the six months endedJune 30, 2018 was as follows:

(In thousands, except per share data)	Number of Shares		Weighted- Average Exercise  Price		Aggregate Intrinsic  Value		Weighted-Average       Remaining       Contractual  Term (Yrs)
Outstanding at beginning of year	21,332		$	49.40
Granted	3,572		58.32
Exercised	(947	)	23.25
Forfeited and expired	(156	)	60.75
Outstanding as of June 30, 2018	23,801		51.71		$	235,909	6.67
Exercisable as of June 30, 2018	12,287		$	43.77	$	210,966	4.84

The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the six months endedJune 30, 2018 were as follows:

Expected volatility (%)	27.0		%
Expected term (yrs)	7
Risk-free rate (%)	2.8		%
Fair value per option	$	20.12

As of June 30, 2018, there was $185 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 3.59 years.

Non-vested Shares and Share Units

Non-vested share and share unit activity for the six months endedJune 30, 2018 was as follows:

(In thousands, except per share data)	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of year	799		$	66.76
Granted	480		58.72
Vested	(343	)	65.54
Forfeited	(3	)	62.78
Outstanding as of June 30, 2018	933		$	63.08

As of June 30, 2018, there was $44 million of total unrecognized compensation cost related to non-vested share and share unit awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 2.09 years.

Share-Based Compensation Cost

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and share units, and our associate stock purchase plan:

	Three Months Ended					Six Months Ended
(In thousands)	2018		2017			2018		2017
Stock option and non-vested share and share unit compensation expense	$	24,204	$	21,859		$	49,139	$	39,359
Associate stock purchase plan expense	1,916		1,495			3,278		2,970
Amounts capitalized in software development costs, net of amortization	161		(200		)	321		(320		)
Amounts charged against earnings, before income tax benefit	$	26,281	$	23,154		$	52,738	$	42,009
Amount of related income tax benefit recognized in earnings	$	5,568	$	6,647		$	10,868	$	12,063

Treasury Stock

In May 2017, our Board of Directors authorized a share repurchase program that allows the Company to repurchase up to $500 million of shares of our common stock, excluding transaction costs. The repurchases are to be effectuated in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers. No time limit was set for the completion of the program. In May 2018, our Board of Directors approved an amendment to the repurchase program that was authorized in May 2017. Under the amendment, the Company was authorized to repurchase up to an additional $500 million of shares of our common stock, for an aggregate of $1 billion, excluding transaction costs. During the six months endedJune 30, 2018, we repurchased 4.8 million shares for total consideration of $288 million under the program. The shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. At June 30, 2018, $639 million remains available for repurchase under the program.

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Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Contingencies Disclosure

Contingencies

We accrue estimates for resolution of any legal and other contingencies when losses are probable and reasonably estimable, in accordance with Accounting Standards Codification Topic 450, Contingencies.

The terms of our software license agreements with our clients generally provide for a limited indemnification of such clients against losses, expenses and liabilities arising from third party claims based on alleged infringement by our solutions of an intellectual property right of such third party. The terms of such indemnification often limit the scope of and remedies for such indemnification obligations and generally include a right to replace or modify an infringing solution. To date, we have not had to reimburse any of our clients for any judgments or settlements to third parties related to these indemnification provisions pertaining to intellectual property infringement claims. For several reasons, including the lack of a sufficient number of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the terms of the corresponding agreements with our clients, we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions.

In addition to commitments and obligations in the ordinary course of business, we are subject to various legal proceedings and claims that arise in the ordinary course of business, including for example, employment and client disputes and litigation alleging solution and implementation defects, personal injury, intellectual property infringement, violations of law and breaches of contract and warranties. Many of these proceedings are at preliminary stages and many seek an indeterminate amount of damages. At this time, we do not believe the range of potential losses under these claims to be material to our condensed consolidated financial statements.

No less than quarterly, we review the status of each significant matter and assess our potential financial exposure. We accrue a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to our management at the time the judgment is made. Furthermore, the outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters. Should any one or a combination of more than one of these proceedings be successful, or should we determine to settle any one or a combination of these matters, we may be required to pay substantial sums, become subject to the entry of an injunction or be forced to change the manner in which we operate our business, which could have a material adverse impact on our business, results of operations, cash flows or financial condition.

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Segment Reporting

6 Months Ended

Jun. 30, 2018

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 solutions and services. 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, expenses associated with our managed services business, marketing expenses, communications expenses and unreimbursed travel expenses. "Other" includes expenses that have not been allocated to the operating segments, such as software development, general and administrative expenses, acquisition costs and related adjustments, share-based compensation expense, and certain amortization and depreciation. Performance of the segments is assessed at the operating earnings level by our chief operating decision maker, who is our Chief Executive Officer. 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 endedJune 30, 2018 and July 1, 2017:

(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2018
Revenues	$	1,202,064	$	165,663	$	—		$	1,367,727
Costs of revenue	208,185		30,598		—			238,783
Operating expenses	551,468		73,407		295,782			920,657
Total costs and expenses	759,653		104,005		295,782			1,159,440
Operating earnings (loss)	$	442,411	$	61,658	$	(295,782	)	$	208,287

(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2017
Revenues	$	1,155,654	$	136,340	$	—		$	1,291,994
Costs of revenue	197,336		25,727		—			223,063
Operating expenses	488,955		65,581		265,007			819,543
Total costs and expenses	686,291		91,308		265,007			1,042,606
Operating earnings (loss)	$	469,363	$	45,032	$	(265,007	)	$	249,388

(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2018
Revenues	$	2,337,160	$	323,428	$	—		$	2,660,588
Costs of revenue	414,859		55,202		—			470,061
Operating expenses	1,071,339		142,551		573,135			1,787,025
Total costs and expenses	1,486,198		197,753		573,135			2,257,086
Operating earnings (loss)	$	850,962	$	125,675	$	(573,135	)	$	403,502

(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2017
Revenues	$	2,287,458	$	265,022	$	—		$	2,552,480
Costs of revenue	373,697		48,359		—			422,056
Operating expenses	972,335		129,104		535,471			1,636,910
Total costs and expenses	1,346,032		177,463		535,471			2,058,966
Operating earnings (loss)	$	941,426	$	87,559	$	(535,471	)	$	493,514

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Interim Statement Presentation Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2018

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

Supplemental Disclosures of Cash Flow Information

	Six Months Ended
(In thousands)	2018			2017
Cash paid during the period for:
Interest (including amounts capitalized of $5,874 and $5,520, respectively)	$	8,333		$	9,067
Income taxes, net of refunds	(86,825		)	99,104

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue, Initial Application Period Cumulative Effect Transition [Table Text Block]

A summary of such cumulative effect adjustment is as follows:

(In thousands)	Increase / (Decrease)
Receivables, net	$	(79,492	)
Prepaid expenses and other	(2,253		)
Other assets	81,157
Accounts payable	(9,361		)
Deferred income taxes and other liabilities	1,173
Retained earnings	7,600

Disaggregation of Revenue [Table Text Block]

The following tables present revenues disaggregated by our business models:

	Three Months Ended
	2018						2017(1)
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Licensed software	$	161,220	$	11,168	$	172,388	$	146,895	$	8,991	$	155,886
Technology resale	61,789		13,468		75,257		66,358		6,774		73,132
Subscriptions	76,419		6,532		82,951		112,518		6,272		118,790
Professional services	387,540		59,778		447,318		347,313		48,850		396,163
Managed services	261,787		23,765		285,552		242,673		19,006		261,679
Support and maintenance	229,779		49,177		278,956		214,642		44,932		259,574
Reimbursed travel	23,530		1,775		25,305		25,255		1,515		26,770
Total revenues	$	1,202,064	$	165,663	$	1,367,727	$	1,155,654	$	136,340	$	1,291,994
(1)As noted above, prior period amounts were not adjusted upon our adoption of Topic 606.

	Six Months Ended
	2018						2017(1)
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Licensed software	$	285,314	$	21,893	$	307,207	$	279,427	$	18,787	$	298,214
Technology resale	120,038		18,595		138,633		126,871		10,368		137,239
Subscriptions	146,271		13,316		159,587		220,770		11,441		232,211
Professional services	767,384		121,202		888,586		696,177		96,301		792,478
Managed services	507,932		45,925		553,857		485,306		36,192		521,498
Support and maintenance	464,015		99,505		563,520		432,386		89,292		521,678
Reimbursed travel	46,206		2,992		49,198		46,521		2,641		49,162
Total revenues	$	2,337,160	$	323,428	$	2,660,588	$	2,287,458	$	265,022	$	2,552,480
(1)As noted above, prior period amounts were not adjusted upon our adoption of Topic 606.

The following table presents our revenues disaggregated by timing of revenue recognition:

	Three Months Ended						Six Months Ended
	2018						2018
(In thousands)	Domestic Segment		Global Segment		Total		Domestic Segment		Global Segment		Total
Revenue recognized over time	$	1,062,878	$	144,262	$	1,207,140	$	2,091,373	$	288,397	$	2,379,770
Revenue recognized at a point in time	139,186		21,401		160,587		245,787		35,031		280,818
Total revenues	$	1,202,064	$	165,663	$	1,367,727	$	2,337,160	$	323,428	$	2,660,588

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Receivables (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Summary of Net Receivables

A summary of net receivables is as follows:

(In thousands)	June 30, 2018		December 30, 2017
Client receivables	$	1,204,487	$	1,082,886
Less: Allowance for doubtful accounts	61,639		52,786
Client receivables, net of allowance	1,142,848		1,030,100
Current portion of lease receivables	9,012		12,681
Total receivables, net	$	1,151,860	$	1,042,781

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Investments Investments (Tables)

6 Months Ended

Jun. 30, 2018

Investments [Abstract]

Schedule of available-for-sale investments

Available-for-sale investments at June 30, 2018 were as follows:

(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash equivalents:
Money market funds	$	42,195	$	—	$	—		$	42,195
Time deposits	78,581		—		—			78,581
Total cash equivalents	120,776		—		—			120,776
Short-term investments:
Time deposits	28,988		—		—			28,988
Commercial paper	77,950		—		(98		)	77,852
Government and corporate bonds	268,884		—		(1,128		)	267,756
Total short-term investments	375,822		—		(1,226		)	374,596
Long-term investments:
Government and corporate bonds	105,251		—		(753		)	104,498
Total available-for-sale investments	$	601,849	$	—	$	(1,979	)	$	599,870

Available-for-sale investments at December 30, 2017 were as follows:

(In thousands)	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash equivalents:
Money market funds	$	99,472	$	—	$	—		$	99,472
Time deposits	60,226		—		—			60,226
Government and corporate bonds	850		—		—			850
Total cash equivalents	160,548		—		—			160,548
Short-term investments:
Time deposits	40,186		—		—			40,186
Commercial paper	147,646		2		(139		)	147,509
Government and corporate bonds	247,626		—		(477		)	247,149
Total short-term investments	435,458		2		(616		)	434,844
Long-term investments:
Government and corporate bonds	185,478		—		(1,026		)	184,452
Total available-for-sale investments	$	781,484	$	2	$	(1,642	)	$	779,844

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table details our financial assets measured and recorded at fair value on a recurring basis at June 30, 2018:

(In thousands)
		Fair Value Measurements Using
Description	Balance Sheet Classification	Level 1		Level 2		Level 3
Money market funds	Cash equivalents	$	42,195	$	—	$	—
Time deposits	Cash equivalents	—		78,581		—
Time deposits	Short-term investments	—		28,988		—
Commercial paper	Short-term investments	—		77,852		—
Government and corporate bonds	Short-term investments	—		267,756		—
Government and corporate bonds	Long-term investments	—		104,498		—

The following table details our financial assets measured and recorded at fair value on a recurring basis at December 30, 2017:

(In thousands)
		Fair Value Measurements Using
Description	Balance Sheet Classification	Level 1		Level 2		Level 3
Money market funds	Cash equivalents	$	99,472	$	—	$	—
Time deposits	Cash equivalents	—		60,226		—
Government and corporate bonds	Cash equivalents	—		850		—
Time deposits	Short-term investments	—		40,186		—
Commercial paper	Short-term investments	—		147,509		—
Government and corporate bonds	Short-term investments	—		247,149		—
Government and corporate bonds	Long-term investments	—		184,452		—

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Indebtedness (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Indebtedness Outstanding

The following is a summary of indebtedness outstanding:

(In thousands)	June 30, 2018			December 30, 2017
Senior Notes	$	425,000		$	500,000
Capital lease obligations	2,155			13,068
Other	14,162			14,162
Debt and capital lease obligations	441,317			527,230
Less: debt issuance costs	(402		)	(515		)
Debt and capital lease obligations, net	440,915			526,715
Less: current portion	(2,155		)	(11,585		)
Long-term debt and capital lease obligations	$	438,760		$	515,130

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Earnings Per Share (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2018

Earnings Per Share [Abstract]

Reconciliation Of The Numerators And The Denominators Of The Basic And Diluted Per Share

A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows:

	Three Months Ended
	2018					2017
	Earnings		Shares	Per-Share		Earnings		Shares	Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic earnings per share:
Income available to common shareholders	$	169,357	330,206	$	0.51	$	179,683	331,056	$	0.54
Effect of dilutive securities:
Stock options and non-vested shares	—		3,356			—		6,842
Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	169,357	333,562	$	0.51	$	179,683	337,898	$	0.53

	Six Months Ended
	2018					2017
	Earnings		Shares	Per-Share		Earnings		Shares	Per-Share
(In thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic earnings per share:
Income available to common shareholders	$	329,358	331,479	$	0.99	$	352,896	330,607	$	1.07
Effect of dilutive securities:
Stock options and non-vested shares	—		3,744			—		6,509
Diluted earnings per share:
Income available to common shareholders including assumed conversions	$	329,358	335,223	$	0.98	$	352,896	337,116	$	1.05

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule Of Stock Options Activity

Stock option activity for the six months endedJune 30, 2018 was as follows:

(In thousands, except per share data)	Number of Shares		Weighted- Average Exercise  Price		Aggregate Intrinsic  Value		Weighted-Average       Remaining       Contractual  Term (Yrs)
Outstanding at beginning of year	21,332		$	49.40
Granted	3,572		58.32
Exercised	(947	)	23.25
Forfeited and expired	(156	)	60.75
Outstanding as of June 30, 2018	23,801		51.71		$	235,909	6.67
Exercisable as of June 30, 2018	12,287		$	43.77	$	210,966	4.84

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the six months endedJune 30, 2018 were as follows:

Expected volatility (%)	27.0		%
Expected term (yrs)	7
Risk-free rate (%)	2.8		%
Fair value per option	$	20.12

Schedule of Share-based Compensation, Restricted Stock Activity

Non-vested share and share unit activity for the six months endedJune 30, 2018 was as follows:

(In thousands, except per share data)	Number of Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of year	799		$	66.76
Granted	480		58.72
Vested	(343	)	65.54
Forfeited	(3	)	62.78
Outstanding as of June 30, 2018	933		$	63.08

Compensation Expense Recognized In The Condensed Consolidated Statements Of Operations

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and share units, and our associate stock purchase plan:

	Three Months Ended					Six Months Ended
(In thousands)	2018		2017			2018		2017
Stock option and non-vested share and share unit compensation expense	$	24,204	$	21,859		$	49,139	$	39,359
Associate stock purchase plan expense	1,916		1,495			3,278		2,970
Amounts capitalized in software development costs, net of amortization	161		(200		)	321		(320		)
Amounts charged against earnings, before income tax benefit	$	26,281	$	23,154		$	52,738	$	42,009
Amount of related income tax benefit recognized in earnings	$	5,568	$	6,647		$	10,868	$	12,063

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Summary of the Operating Information

The following table presents a summary of our operating segments and other expense for the three and six months endedJune 30, 2018 and July 1, 2017:

(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2018
Revenues	$	1,202,064	$	165,663	$	—		$	1,367,727
Costs of revenue	208,185		30,598		—			238,783
Operating expenses	551,468		73,407		295,782			920,657
Total costs and expenses	759,653		104,005		295,782			1,159,440
Operating earnings (loss)	$	442,411	$	61,658	$	(295,782	)	$	208,287

(In thousands)	Domestic		Global		Other			Total
Three Months Ended 2017
Revenues	$	1,155,654	$	136,340	$	—		$	1,291,994
Costs of revenue	197,336		25,727		—			223,063
Operating expenses	488,955		65,581		265,007			819,543
Total costs and expenses	686,291		91,308		265,007			1,042,606
Operating earnings (loss)	$	469,363	$	45,032	$	(265,007	)	$	249,388

(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2018
Revenues	$	2,337,160	$	323,428	$	—		$	2,660,588
Costs of revenue	414,859		55,202		—			470,061
Operating expenses	1,071,339		142,551		573,135			1,787,025
Total costs and expenses	1,486,198		197,753		573,135			2,257,086
Operating earnings (loss)	$	850,962	$	125,675	$	(573,135	)	$	403,502

(In thousands)	Domestic		Global		Other			Total
Six Months Ended 2017
Revenues	$	2,287,458	$	265,022	$	—		$	2,552,480
Costs of revenue	373,697		48,359		—			422,056
Operating expenses	972,335		129,104		535,471			1,636,910
Total costs and expenses	1,346,032		177,463		535,471			2,058,966
Operating earnings (loss)	$	941,426	$	87,559	$	(535,471	)	$	493,514

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Interim Statement Presentation Policies (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Interim Statement Presentation [Line Items]
Basis of Accounting, Policy [Policy Text Block]	The condensed consolidated financial statements were prepared using GAAP
Use of Estimates, Policy [Policy Text Block]	These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses
Fiscal Period, Policy [Policy Text Block]	Our second fiscal quarter ends on the Saturday closest to June 30. The 2018 and 2017 second quarters ended on June 30, 2018 and July 1, 2017, respectively. All references to years in these notes to condensed consolidated financial statements represent the respective three or six months ended on such dates, unless otherwise noted
Accounting Standards Update 2016-01 [Member]
Interim Statement Presentation [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description	In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which was subsequently amended in February 2018 by ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments
New Accounting Pronouncement or Change in Accounting Principle, Description of Transition Method	Provisions within the guidance applicable to the Company were required to be applied prospectively.
Accounting Standards Update 2016-02 [Member]
Interim Statement Presentation [Line Items]
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which introduces a new model that requires most leases to be reported on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The standard requires the use of the modified retrospective (cumulative effect) transition approach. ASU 2016-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt.
Operating Leases, Future Minimum Payments Due		$ 124
Accounting Standards Update 2016-13 [Member]
Interim Statement Presentation [Line Items]
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides new guidance regarding the measurement and recognition of credit impairment for certain financial assets. Such guidance will impact how we determine our allowance for estimated uncollectible receivables and evaluate our available-for-sale investments for impairment. ASU 2016-13 is effective for the Company in the first quarter of 2020, with early adoption permitted in the first quarter of 2019. We are currently evaluating the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt.
Accounting Standards Update 2017-08 [Member]
Interim Statement Presentation [Line Items]
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for certain investments in callable debt securities purchased at a premium by requiring the premium be amortized to the earliest call date. Such guidance will impact how premiums are amortized on our available-for-sale investments. ASU 2017-08 is effective for the Company in the first quarter of 2019, with early adoption permitted. The standard requires the use of the modified retrospective (cumulative effect) transition approach. We do not expect ASU 2017-08 to have a material impact on our consolidated financial statements and related disclosures, and we do not expect to early adopt
Accounting Standards Update 2018-02 [Member]
Interim Statement Presentation [Line Items]
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for "stranded tax effects" resulting from certain U.S. tax reform enacted in December 2017. Such "stranded tax effects" were created when deferred tax assets and liabilities related to items in AOCI were remeasured at the lower U.S. corporate tax rate in the period of enactment. ASU 2018-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. The guidance in this ASU is to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. corporate tax rate was recognized. We are currently evaluating the effect that ASU 2018-02 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt

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Interim Statement Presentation Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Supplemental Cash Flow Elements [Abstract]
Interest Paid, Capitalized	$ 5,874	$ 5,520
Interest Paid	8,333	9,067
Income Taxes Paid, Net	$ (86,825)	$ 99,104

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Revenue from Contracts with Customers Cumulative Effect Transition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 31, 2017	Dec. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Receivables, Net, Current	$ 1,151,860		$ 1,151,860			$ 1,042,781
Prepaid Expense and Other Assets	326,623		326,623			515,930
Other assets	208,274		208,274			134,011
Accounts Payable, Current	284,203		284,203			218,996
Deferred Income Taxes and Other Liabilities, Noncurrent	371,381		371,381			365,674
Retained Earnings	5,275,824		5,275,824			$ 4,938,866
Revenues	1,367,727	$ 1,291,994	2,660,588	$ 2,552,480
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(214,884)	$ (252,049)	$ (414,963)	$ (495,059)
Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Description			In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaced most existing revenue recognition guidance in U.S. GAAP. The new standard introduces a five-step process to be followed in determining the amount and timing of revenue recognition. It also provides guidance on accounting for costs incurred to obtain or fulfill contracts with customers, and establishes disclosure requirements which are more extensive than those required under prior U.S. GAAP
New Accounting Pronouncement or Change in Accounting Principle, Description of Transition Method			We selected the modified retrospective (cumulative effect) transition method of adoption. Such method provides that the cumulative effect from prior periods upon applying the new guidance to contracts which were not complete as of the adoption date, be recognized in our condensed consolidated balance sheets as of December 31, 2017, including an adjustment to retained earnings
Receivables, Net, Current					$ (79,492)
Prepaid Expense and Other Assets					(2,253)
Other assets					81,157
Accounts Payable, Current					(9,361)
Deferred Income Taxes and Other Liabilities, Noncurrent					1,173
Retained Earnings					$ 7,600
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	21,000		$ 64,000
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ 15,000		$ 13,000

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Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 1,367,727	$ 1,291,994	$ 2,660,588	$ 2,552,480
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,207,140		2,379,770
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	160,587		280,818
Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	1,202,064	1,155,654	2,337,160	2,287,458
Domestic Segment | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,062,878		2,091,373
Domestic Segment | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	139,186		245,787
Global Segment
Disaggregation of Revenue [Line Items]
Revenues	165,663	136,340	323,428	265,022
Global Segment | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	144,262		288,397
Global Segment | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	21,401		35,031
Sales Revenue, Licensed Software, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	172,388	155,886	307,207	298,214
Sales Revenue, Licensed Software, Net [Member] | Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	161,220	146,895	285,314	279,427
Sales Revenue, Licensed Software, Net [Member] | Global Segment
Disaggregation of Revenue [Line Items]
Revenues	11,168	8,991	21,893	18,787
Sales Revenue, Technology Resale, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	75,257	73,132	138,633	137,239
Sales Revenue, Technology Resale, Net [Member] | Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	61,789	66,358	120,038	126,871
Sales Revenue, Technology Resale, Net [Member] | Global Segment
Disaggregation of Revenue [Line Items]
Revenues	13,468	6,774	18,595	10,368
Sales Revenue, Subscriptions, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	82,951	118,790	159,587	232,211
Sales Revenue, Subscriptions, Net [Member] | Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	76,419	112,518	146,271	220,770
Sales Revenue, Subscriptions, Net [Member] | Global Segment
Disaggregation of Revenue [Line Items]
Revenues	6,532	6,272	13,316	11,441
Sales Revenue, Professional Services, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	447,318	396,163	888,586	792,478
Sales Revenue, Professional Services, Net [Member] | Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	387,540	347,313	767,384	696,177
Sales Revenue, Professional Services, Net [Member] | Global Segment
Disaggregation of Revenue [Line Items]
Revenues	59,778	48,850	121,202	96,301
Sales Revenue, Managed Services, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	285,552	261,679	553,857	521,498
Sales Revenue, Managed Services, Net [Member] | Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	261,787	242,673	507,932	485,306
Sales Revenue, Managed Services, Net [Member] | Global Segment
Disaggregation of Revenue [Line Items]
Revenues	23,765	19,006	45,925	36,192
Sales Revenue, Support and Maintenance Services, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	278,956	259,574	563,520	521,678
Sales Revenue, Support and Maintenance Services, Net [Member] | Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	229,779	214,642	464,015	432,386
Sales Revenue, Support and Maintenance Services, Net [Member] | Global Segment
Disaggregation of Revenue [Line Items]
Revenues	49,177	44,932	99,505	89,292
Sales Revenue, Reimbursement Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	25,305	26,770	49,198	49,162
Sales Revenue, Reimbursement Revenue [Member] | Domestic Segment
Disaggregation of Revenue [Line Items]
Revenues	23,530	25,255	46,206	46,521
Sales Revenue, Reimbursement Revenue [Member] | Global Segment
Disaggregation of Revenue [Line Items]
Revenues	$ 1,775	$ 1,515	$ 2,992	$ 2,641

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Revenue from Contracts with Customers Performance Obligation (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Revenue Recognition [Line Items]
Revenue Recognition, Policy [Policy Text Block]	We enter into contracts with customers that may include various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The predominant model of customer procurement involves multiple deliverables and includes a software license agreement, project-related implementation and consulting services, software support, hosting services, and computer hardware. We allocate revenues to each performance obligation within an arrangement based on estimated relative stand-alone selling price. Revenue is then recognized for each performance obligation upon transfer of control of the software solution or services to the customer in an amount that reflects the consideration we expect to receive
Revenue, Remaining Performance Obligation	$ 14,790
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation	we expect to recognize approximately 31% of the revenue over the next 12 months and the remainder thereafter
Perpetual Software Licenses [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Perpetual software licenses - We recognize perpetual software license revenues when control of such licenses are transferred to the client ("point in time"). We determine the amount of consideration allocated to this performance obligation using the residual approach
Software as a Service [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Software as a service - We recognize software as a service ratably over the related hosting period ("over time")
Time-based Software and Content License Fees [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Time-based software and content license fees - We recognize a license component of time-based software and content license fees upon delivery to the client ("point in time") and a non-license component (i.e. support) ratably over the respective contract term ("over time")
Remote Hosting Recurring Services [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Hosting - Remote hosting recurring services are recognized ratably over the hosting service period ("over time"). Certain of our hosting arrangements contain fees deemed to be a "material right" under Topic 606. We recognize such fees over the term that will likely affect the client's decision about whether to renew the related hosting service ("over time")
Services [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Services - We recognize revenue for fixed fee services arrangements over time, utilizing a labor hours input method. For fee-for-service arrangements, we recognize revenue over time as hours are worked at the rates clients are invoiced, utilizing the "as invoiced" practical expedient available in Topic 606. For stand-ready services arrangements, we recognize revenue ratably over the related service period
Support and Maintenance [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Support and maintenance - We recognize support and maintenance fees ratably over the related contract period ("over time")
Hardware [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Hardware - We recognize hardware revenues when control of such hardware/devices is transferred to the client ("point in time")
Transaction Processing [Member]
Revenue Recognition [Line Items]
Revenue, Performance Obligation, Description of Timing	Transaction processing - We recognize transaction processing revenues ratably as we provide such services ("over time")

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Revenue from Contracts with Customers (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Contract with Customer, Liability, Revenue Recognized		$ 287
Capitalized Contract Cost, Net	$ 85	85
Capitalized Contract Cost, Amortization	$ 10	$ 18
Revenue, Judgment		Our contracts with clients typically include various combinations of our software solutions and related services. Determining whether such software solutions and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Specifically, judgment is required to determine whether software licenses are distinct from services and hosting included in an arrangement
Revenue, Information Used to Allocate Transaction Price		Contract transaction price is allocated to performance obligations using estimated stand-alone selling price
Revenue, Information Used to Determine Transaction Price		We determine stand-alone selling price maximizing observable inputs such as stand-alone sales when they exist or substantive renewal prices charged to clients. In instances where stand-alone selling price is not observable, we utilize an estimate of stand-alone selling price. Such estimates are derived from various methods that include: cost plus margin, historical pricing practices, and the residual approach, which requires a considerable amount of judgment
Revenue, Practical Expedient, Initial Application and Transition, Nonrestatement of Modified Contract [true/false]		true

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Receivables (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Receivables [Abstract]
Client cash collections	$ 2,590	$ 2,640

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Receivables (Summary Of Net Receivables) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Receivables [Abstract]
Gross accounts receivable	$ 1,204,487	$ 1,082,886
Less: Allowance for doubtful accounts	61,639	52,786
Accounts receivable, net of allowance	1,142,848	1,030,100
Current portion of lease receivables	9,012	12,681
Total receivables, net	$ 1,151,860	$ 1,042,781

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Investments (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Investments [Abstract]
Proceeds from Sale of Available-for-sale Securities	$ 45	$ 20
Subsequent Event, Date	Jul. 27, 2018
Subsequent Event, Description	we acquired a minority interest in Essence Group Holdings Corporation ("Essence Group") for cash consideration of $266 million under a Stock Purchase Agreement ("SPA") dated July 9, 2018.

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Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	$ 601,849	$ 781,484
Gross Unrealized Gains		2
Gross Unrealized Losses	(1,979)	(1,642)
Available-for-sale Securities	599,870	779,844
Cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	120,776	160,548
Available-for-sale Securities	120,776	160,548
Cash equivalents [Member] | Money market funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	42,195	99,472
Available-for-sale Securities	42,195	99,472
Cash equivalents [Member] | Time deposits [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	78,581	60,226
Available-for-sale Securities	78,581	60,226
Cash equivalents [Member] | Government and corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost		850
Available-for-sale Securities		850
Short-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	375,822	435,458
Gross Unrealized Gains		2
Gross Unrealized Losses	(1,226)	(616)
Available-for-sale Securities	374,596	434,844
Short-term investments [Member] | Time deposits [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	28,988	40,186
Available-for-sale Securities	28,988	40,186
Short-term investments [Member] | Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	77,950	147,646
Gross Unrealized Gains		2
Gross Unrealized Losses	(98)	(139)
Available-for-sale Securities	77,852	147,509
Short-term investments [Member] | Government and corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	268,884	247,626
Gross Unrealized Losses	(1,128)	(477)
Available-for-sale Securities	267,756	247,149
Long-term investments [Member] | Government and corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	105,251	185,478
Gross Unrealized Losses	(753)	(1,026)
Available-for-sale Securities	$ 104,498	$ 184,452

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Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 30, 2017
Fair Value Disclosures [Abstract]
Fair value of long-term debt, including current maturities	$ 431	$ 519
Carrying amount of long-term debt	$ 425	$ 500

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Fair Value Measurements Fair Value, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 599,870	$ 779,844
Level 1 [Member] | Money market funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	42,195	99,472
Level 2 [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	78,581	60,226
Level 2 [Member] | Government and corporate bonds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure		850
Short-term investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	374,596	434,844
Short-term investments [Member] | Level 2 [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	28,988	40,186
Short-term investments [Member] | Level 2 [Member] | Commercial paper [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	77,852	147,509
Short-term investments [Member] | Level 2 [Member] | Government and corporate bonds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	267,756	247,149
Long-term investments [Member] | Level 2 [Member] | Government and corporate bonds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 104,498	$ 184,452

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Indebtedness (Schedule of Indebtedness Outstanding) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Debt Instrument [Line Items]
Debt and Capital Lease Obligations	$ 441,317	$ 527,230
Debt Issuance Costs, Noncurrent, Net	(402)	(515)
Long-term Debt and Capital Lease Obligations, Net of Debt Issuance Costs	440,915	526,715
Long-term Debt and Capital Lease Obligations, Current	2,155	11,585
Long-term debt and capital lease obligations	438,760	515,130
Senior Notes [Member]
Debt Instrument [Line Items]
Debt and Capital Lease Obligations	425,000	500,000
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Debt and Capital Lease Obligations	2,155	13,068
Other [Member]
Debt Instrument [Line Items]
Debt and Capital Lease Obligations	$ 14,162	$ 14,162

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Indebtedness (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Debt Instrument [Line Items]
Repayments of Long-term Debt	$ 75,000	$ 0
Series 2015-C [Member]
Debt Instrument [Line Items]
Repayments of Long-term Debt	$ 75,000
Debt Instrument, Maturity Date	Feb. 15, 2022

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Income Taxes (Details)	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Income Tax Disclosure [Abstract]
Statutory Tax Rate	21.00%
Effective tax rate	20.60%	28.70%

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Earnings Per Share (Reconciliation Of The Numerators And The Denominators Of The Basic And Diluted Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Earnings Per Share [Abstract]
Income available to common shareholders, basic	$ 169,357	$ 179,683	$ 329,358	$ 352,896
Income available to common shareholders including assumed conversions, diluted	$ 169,357	$ 179,683	$ 329,358	$ 352,896
Basic weighted average shares outstanding	330,206	331,056	331,479	330,607
Stock options and non-vested shares, incremental shares	3,356	6,842	3,744	6,509
Diluted weighted average shares outstanding	333,562	337,898	335,223	337,116
Basic earnings per share	$ 0.51	$ 0.54	$ 0.99	$ 1.07
Diluted earnings per share	$ 0.51	$ 0.53	$ 0.98	$ 1.05

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Earnings Per Share (Narrative) (Details) - $ / shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	14.0	11.0	12.4	11.7
Antidilutive securities excluded from computation of earnings per share, exercise price, lower range limit	$ 47.99	$ 50.04	$ 50.04	$ 47.38
Antidilutive securities excluded from computation of earnings per share, exercise price, upper range limit	$ 73.40	$ 73.40	$ 73.40	$ 73.40

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Share-Based Compensation (Schedule Of Stock Options Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding at beginning of year, number of shares | shares	21,332
Outstanding at beginning of year, weighted-average exercise price | $ / shares	$ 49.40
Granted, number of shares | shares	3,572
Granted, weighted-average exercise price | $ / shares	$ 58.32
Exercised, number of shares | shares	(947)
Exercised, weighted-average exercise price | $ / shares	$ 23.25
Forfeited and expired, number of shares | shares	(156)
Forfeited and expired, weighted-average exercise price | $ / shares	$ 60.75
Outstanding end of year, number of shares | shares	23,801
Outstanding at end of year, weighted-average exercise price | $ / shares	$ 51.71
Outstanding at end of year, aggregate intrinsic value | $	$ 235,909
Outstanding at end of year, weighted-average remaining contractual term	6 years 8 months 3 days
Exercisable at end of year, number of shares | shares	12,287
Exercisable at end of year, weighted-average exercise price | $ / shares	$ 43.77
Exercisable at end of year, aggregate intrinsic value | $	$ 210,966
Exercisable at end of year, weighted-average remaining contractual term	4 years 10 months 1 day

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Share-Based Compensation (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details)	6 Months Ended
	Jun. 30, 2018 $ / shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility (%)	27.00%
Expected term (yrs)	7 years
Risk-free rate (%)	2.80%
Fair value per option	$ 20.12

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Share-Based Compensation (Schedule Of Non-Vested Shares Activity) (Details) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year, number of shares | shares	799
Outstanding at beginning of year, weighted-average grant date fair value | $ / shares	$ 66.76
Granted, number of shares | shares	480
Granted, weighted-average grant date fair value | $ / shares	$ 58.72
Vested, number of shares | shares	(343)
Vested, weighted-average grant date fair value | $ / shares	$ 65.54
Forfeited, number of shares | shares	(3)
Forfeited, weighted-average grant date fair value | $ / shares	$ 62.78
Outstanding at end of year, number of shares | shares	933
Outstanding at end of year, weighted-average grant date fair value | $ / shares	$ 63.08

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Share-Based Compensation (Compensation Expense Recognized In The Condensed Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts charged against earnings, before income tax benefit	$ 26,281	$ 23,154	$ 52,738	$ 42,009
Amount of related income tax benefit recognized in earnings	5,568	6,647	10,868	12,063
Stock option and non-vested share compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts charged against earnings, before income tax benefit	24,204	21,859	49,139	39,359
Associate stock purchase plan expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts charged against earnings, before income tax benefit	1,916	1,495	3,278	2,970
Amounts capitalized in software development costs, net of amortization
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts charged against earnings, before income tax benefit	$ 161	$ (200)	$ 321	$ (320)

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Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options	$ 44,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options	185,000
Stock Repurchase Program, Authorized Amount	1,000,000	$ 500,000
Stock Repurchase Program, Authorized Amount Increase	$ 500,000
Stock Repurchased During Period, Shares	4.8
Payments for Repurchase of Common Stock	$ 287,624	$ 0
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 639,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of recognition for remaining share-based compensation expense	3 years 7 months 3 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of recognition for remaining share-based compensation expense	2 years 1 month 1 day

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Segment Reporting (Summary Of The Operating Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Segment Reporting Information [Line Items]
Revenues	$ 1,367,727	$ 1,291,994	$ 2,660,588	$ 2,552,480
Cost of revenues	238,783	223,063	470,061	422,056
Operating expenses	920,657	819,543	1,787,025	1,636,910
Total costs and expenses	1,159,440	1,042,606	2,257,086	2,058,966
Operating earnings (loss)	208,287	249,388	403,502	493,514
Domestic Segment
Segment Reporting Information [Line Items]
Revenues	1,202,064	1,155,654	2,337,160	2,287,458
Cost of revenues	208,185	197,336	414,859	373,697
Operating expenses	551,468	488,955	1,071,339	972,335
Total costs and expenses	759,653	686,291	1,486,198	1,346,032
Operating earnings (loss)	442,411	469,363	850,962	941,426
Global Segment
Segment Reporting Information [Line Items]
Revenues	165,663	136,340	323,428	265,022
Cost of revenues	30,598	25,727	55,202	48,359
Operating expenses	73,407	65,581	142,551	129,104
Total costs and expenses	104,005	91,308	197,753	177,463
Operating earnings (loss)	61,658	45,032	125,675	87,559
Other
Segment Reporting Information [Line Items]
Operating expenses	295,782	265,007	573,135	535,471
Total costs and expenses	295,782	265,007	573,135	535,471
Operating earnings (loss)	$ (295,782)	$ (265,007)	$ (573,135)	$ (535,471)