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Segment Reporting

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

Accounting policies for each of the reportable segments are the same as those used on a consolidated basis. The following table presents a summary of the operating information for the three and six months ended July 2, 2011 and July 3, 2010.


	Operating Segments
(In thousands)	Domestic		Global		Other			Total
Three months ended 2011
Revenues	$	450,254	$	73,969	$	—		$	524,223

Cost of revenues		87,413		11,069		—			98,482
Operating expenses		106,126		31,671		179,971			317,768

Total costs and expenses		193,539		42,740		179,971			416,250

Operating earnings (loss)	$	256,715	$	31,229	$	(179,971	)	$	107,973


	Operating Segments
(In thousands)	Domestic		Global		Other			Total
Three months ended 2010
Revenues	$	381,017	$	74,984	$	—		$	456,001

Cost of revenues		64,149		14,062		—			78,211
Operating expenses		104,335		34,382		152,721			291,438

Total costs and expenses		168,484		48,444		152,721			369,649

Operating earnings (loss)	$	212,533	$	26,540	$	(152,721	)	$	86,352


	Operating Segments
(In thousands)	Domestic		Global		Other			Total
Six months ended 2011

Revenues		871,244		144,643		—		$	1,015,887
Cost of revenues		165,338		23,824		—			189,162
Operating expenses		211,475		60,770		352,808			625,053

Total costs and expenses		376,813		84,594		352,808			814,215

Operating earnings (loss)	$	494,431	$	60,049	$	(352,808 )		$	201,672


	Operating Segments
(In thousands)	Domestic		Global		Other			Total
Six months ended 2010
Revenues	$	736,332	$	151,006	$	—		$	887,338

Cost of revenues		125,390		20,905		—			146,295
Operating expenses		209,058		64,095		305,882			579,035

Total costs and expenses		334,448		85,000		305,882			725,330

Operating earnings (loss)	$	401,884	$	66,006	$	(305,882	)	$	162,008