Operating Segment Information

9 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

The Company has four reportable segments that are evaluated regularly by its chief decision making group (consisting of the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance. The chief decision making group evaluates performance based upon stand-alone segment operating income. Since assets by segment are not reported to or used by the Company’s chief decision making group to allocate resources, or to assess performance, total assets by segment are not disclosed.

Operating segment data is as follows:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2014			2013			2014			2013
Revenue:
QSI Dental Division	$	4,480		$	5,082		$	13,379		$	15,137
NextGen Division	92,054			83,881			276,914			250,117
Hospital Solutions Division	4,977			2,483			13,318			12,683
RCM Services Division	21,913			17,408			58,226			51,527
Consolidated revenue	$	123,424		$	108,854		$	361,837		$	329,464
Operating income (loss):
QSI Dental Division	$	1,562		$	1,323		$	3,879		$	4,799
NextGen Division	44,372			36,834			131,983			112,449
Hospital Solutions Division	(838		)	(1,969		)	(3,272		)	(4,661		)
RCM Services Division	4,364			2,722			8,932			8,630
Corporate and unallocated	(41,250		)	(58,242		)	(118,298		)	(105,050		)
Consolidated operating income (loss)	$	8,210		$	(19,332	)	$	23,224		$	16,167

Effective April 1, 2014, the Company refined the measurement of its segment data to better reflect an organizational structure whereby certain expenses managed by functional area leadership are no longer classified within the operating segments but rather as a component of Corporate and unallocated. Such classification is consistent with the disaggregated financial information used by the Company's chief decision making group. The amounts classified as Corporate and unallocated have historically consisted primarily of corporate general and administrative costs and other centrally managed overhead costs, including accounting and finance, human resources, and legal costs, as well as non-recurring acquisition costs and the post-acquisition amortization of certain intangible assets. Currently, as a result of the refinement of its segment data, the Company no longer classifies the costs of the marketing and research and development functional areas and the amortization of capitalized software costs within the operating segments. The Company has retroactively reclassified the prior year operating income in the table above to present all segment information on a comparable basis.

The major components of the Corporate and unallocated amounts are summarized in the table below:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2014		2013		2014		2013
Research and development costs	$	18,468	$	13,175	$	51,602	$	26,404
Amortization of capitalized software costs	3,073		4,050		10,190		9,353
Marketing expense	3,328		2,674		9,439		7,104
Other Corporate and overhead costs (1)	16,381		38,343		47,067		62,189
Total Corporate and unallocated	41,250		58,242		118,298		105,050

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(1) Includes the $26.0 million Hospital impairment charge recorded in the three and nine months endedDecember 31, 2013.