Segment Reporting

12 Months Ended

Dec. 28, 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, certain organizational restructuring and other expense, 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 2019, 2018 and 2017:



(In thousands)	Domestic		International		Other			Total

2019
Revenues	$	5,038,127	$	654,471	$	—		$	5,692,598

Costs of revenue	967,035		104,006		—			1,071,041
Operating expenses	2,398,422		276,914		1,345,552			4,020,888
Total costs and expenses	3,365,457		380,920		1,345,552			5,091,929

Operating earnings (loss)	$	1,672,670	$	273,551	$	(1,345,552	)	$	600,669



(In thousands)	Domestic		International		Other			Total

2018
Revenues	$	4,730,266	$	636,059	$	—		$	5,366,325

Costs of revenue	827,904		109,444		—			937,348
Operating expenses	2,164,465		321,116		1,168,611			3,654,192
Total costs and expenses	2,992,369		430,560		1,168,611			4,591,540

Operating earnings (loss)	$	1,737,897	$	205,499	$	(1,168,611	)	$	774,785



(In thousands)	Domestic		International		Other			Total

2017
Revenues	$	4,575,171	$	567,101	$	—		$	5,142,272

Costs of revenue	755,729		98,362		—			854,091
Operating expenses	1,998,544		264,196		1,064,970			3,327,710
Total costs and expenses	2,754,273		362,558		1,064,970			4,181,801

Operating earnings (loss)	$	1,820,898	$	204,543	$	(1,064,970	)	$	960,471