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Revenue from Contracts with Customers (Tables)
12 Months Ended
Dec. 31, 2018
Revenue Recognized Related To Various Performance Obligations And Elected Accounting Expedients

The breakdown of revenue recognized related based on the origination of performance obligations and elected accounting expedients is presented in the table below:

 

(In thousands)

 

Three Months

Ended

March 31, 2018

 

 

Three Months

Ended

June 30, 2018

 

 

Three Months

Ended

September 30, 2018

 

 

Three Months

Ended

December 31, 2018

 

Revenue related to deferred revenue balance at

    beginning of period

 

$

181,398

 

 

$

196,163

 

 

$

153,151

 

 

$

141,127

 

Revenue related to new performance obligations

    satisfied during the period

 

 

200,232

 

 

 

180,001

 

 

 

225,641

 

 

 

237,963

 

Revenue recognized under "right-to-invoice"

    expedient

 

 

49,403

 

 

 

62,533

 

 

 

51,288

 

 

 

60,593

 

Reimbursed travel expenses, shipping and

    other revenue

 

 

2,689

 

 

 

2,767

 

 

 

2,350

 

 

 

2,663

 

Total revenue

 

$

433,722

 

 

$

441,464

 

 

$

432,430

 

 

$

442,346

 

Summary of Revenue by Type and Nature of Revenue Stream by Reportable Segments The below tables summarize revenue by type and nature of revenue stream as well as by our reportable segments:

 

 

Year Ended December 31,

 

(In thousands)

 

2018

 

 

2017

 

2016

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

  Software delivery, support and maintenance

 

 

 

 

 

 

 

 

 

 

 

  Recurring revenue

 

$

967,990

 

 

$

802,080

 

$

752,084

 

  Non-recurring revenue

 

 

160,273

 

 

 

156,107

 

 

147,215

 

    Total software delivery, support and maintenance

 

 

1,128,263

 

 

 

958,187

 

 

899,299

 

Client services

 

 

 

 

 

 

 

 

 

 

 

  Recurring revenue

 

$

443,752

 

 

$

374,640

 

$

324,635

 

  Non-recurring revenue

 

 

177,947

 

 

 

164,881

 

 

162,135

 

    Total client services

 

 

621,699

 

 

 

539,521

 

 

486,770

 

        Total revenue

 

$

1,749,962

 

 

$

1,497,708

 

$

1,386,069

 

 

Disaggregation of Revenue by Product Line and Segment

 

 

Twelve Months Ended December 31, 2018

 

(In thousands)

 

Clinical and Financial Solutions

 

 

Population Health

 

 

Unallocated

 

 

Total

 

Software delivery, support and maintenance

 

$

958,144

 

 

$

168,275

 

 

$

1,844

 

 

$

1,128,263

 

Client services

 

 

607,843

 

 

 

22,431

 

 

 

(8,575

)

 

 

621,699

 

Total revenue

 

$

1,565,987

 

 

$

190,706

 

 

$

(6,731

)

 

$

1,749,962

 

 

 

 

Twelve Months Ended December 31, 2017

 

(In thousands)

 

Clinical and Financial Solutions

 

 

Population Health

 

 

Unallocated

 

 

Total

 

Software delivery, support and maintenance

 

$

808,611

 

 

$

160,015

 

 

$

(10,439

)

 

$

958,187

 

Client services

 

 

528,419

 

 

 

13,794

 

 

 

(2,692

)

 

 

539,521

 

Total revenue

 

$

1,337,030

 

 

$

173,809

 

 

$

(13,131

)

 

$

1,497,708

 

 

 

 

Twelve Months Ended December 31, 2016

 

(In thousands)

 

Clinical and Financial Solutions

 

 

Population Health

 

 

Unallocated

 

 

Total

 

Software delivery, support and maintenance

 

$

710,679

 

 

$

165,532

 

 

$

23,088

 

 

$

899,299

 

Client services

 

 

472,517

 

 

 

11,862

 

 

 

2,391

 

 

 

486,770

 

Total revenue

 

$

1,183,196

 

 

$

177,394

 

 

$

25,479

 

 

$

1,386,069

 

ASC 606  
Impact of Adoption of ASC 606 on Financial Statements The table below reflects the cumulative adjustments that were made to balances previously reported in the consolidated balance sheet as of December 31, 2017.

 

 

 

As Reported

 

 

Adjustments

 

 

Adjusted

 

(In thousands)

 

December 31, 2017

 

 

due to ASC 606

 

 

January 1, 2018

 

Accounts receivable, net

 

$

492,560

 

 

$

(19,290

)

 

$

473,270

 

Contract assets

 

 

0

 

 

 

77,791

 

 

 

77,791

 

Prepaid expenses and other current assets

 

 

106,455

 

 

 

7,381

 

 

 

113,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred revenue, current

 

 

478,574

 

 

 

(12,810

)

 

 

465,764

 

Deferred revenue, long-term

 

 

19,208

 

 

 

0

 

 

 

19,208

 

Deferred taxes, net

 

 

23,258

 

 

 

20,034

 

 

 

43,292

 

Accumulated deficit

 

 

(338,150

)

 

 

58,658

 

 

 

(279,492

)

 

The following tables compare the reported consolidated balance sheet and statement of operations for the year ended December 31, 2018 to the pro-forma amounts assuming the previous guidance of ASC 605 had been in effect:

 

 

December 31, 2018

 

(In thousands)

 

As reported

under ASC 606

 

 

Adjustments due to ASC 606

 

 

Pro forma

under ASC 605

 

Accounts receivable, net

 

$

465,264

 

 

$

54,489

 

 

$

519,753

 

Contract assets

 

 

66,451

 

 

 

(66,451

)

 

 

0

 

Prepaid expenses and other current assets

 

 

142,455

 

 

 

(7,719

)

 

 

134,736

 

Contract assets - long-term

 

 

71,879

 

 

 

(71,879

)

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred revenue, current

 

 

466,797

 

 

 

14,691

 

 

 

481,488

 

Deferred taxes, net

 

 

58,470

 

 

 

(27,195

)

 

 

31,275

 

Retained earnings

 

 

132,842

 

 

 

(79,056

)

 

 

53,786

 

 

 

 

Twelve Months Ended December, 31, 2018

 

(In thousands, except per share amounts)

 

As reported

under ASC 606

 

 

Adjustments due to ASC 606

 

 

Pro forma

under ASC 605

 

Software delivery, support and maintenance

 

$

1,128,263

 

 

$

(21,780

)

 

$

1,106,483

 

Client services

 

 

621,699

 

 

 

(6,185

)

 

 

615,514

 

Gross profit

 

 

724,543

 

 

 

(26,906

)

 

 

697,637

 

Selling, general and administrative expenses

 

 

450,967

 

 

 

(176

)

 

 

450,791

 

Loss from operations

 

 

(93,052

)

 

 

(26,730

)

 

 

(119,782

)

Income (loss) from continuing operations

    before income taxes

 

 

13,138

 

 

 

(27,559

)

 

 

(14,421

)

Income tax (provision) benefit

 

 

(469

)

 

 

7,160

 

 

 

6,691

 

Income (loss) from continuing operations, net of tax

 

 

12,669

 

 

 

(20,399

)

 

 

(7,730

)

Net income attributable to Allscripts Healthcare

   Solutions, Inc. stockholders

 

$

363,740

 

 

$

(20,399

)

 

$

343,341

 

Earnings per share - basic attributable to Allscripts

   Healthcare Solutions, Inc. stockholders

 

$

2.07

 

 

$

(0.12

)

 

$

1.95

 

Earnings per share - diluted attributable to Allscripts

   Healthcare Solutions, Inc. stockholders

 

$

2.04

 

 

$

(0.11

)

 

$

1.93