Segment Reporting

3 Months Ended

Mar. 30, 2019

We have two operating segments, Domestic and International (formerly referred to as 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 months ended March 30, 2019 and March 31, 2018:



(In thousands)	Domestic		International		Other			Total

Three Months Ended 2019
Revenues	$	1,230,830	$	159,047	$	—		$	1,389,877

Costs of revenue	228,559		24,645		—			253,204
Operating expenses	572,018		68,169		298,542			938,729
Total costs and expenses	800,577		92,814		298,542			1,191,933

Operating earnings (loss)	$	430,253	$	66,233	$	(298,542	)	$	197,944



(In thousands)	Domestic		International		Other			Total

Three Months Ended 2018
Revenues	$	1,135,096	$	157,765	$	—		$	1,292,861

Costs of revenue	206,674		24,604		—			231,278
Operating expenses	519,871		69,144		277,353			866,368
Total costs and expenses	726,545		93,748		277,353			1,097,646

Operating earnings (loss)	$	408,551	$	64,017	$	(277,353	)	$	195,215