Operating Segment Information

3 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

Our Company has four reportable segments that are evaluated regularly by our chief decision making group (consisting of our Chief Executive Officer, Interim Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance.

Operating segment data is as follows:

	Three Months Ended June 30,
	2015			2014
Revenues:
NextGen Division	$	91,615		$	91,714
RCM Services Division	22,462			17,761
QSI Dental Division	4,418			4,243
Hospital Solutions Division	3,669			4,176
Consolidated revenue	$	122,164		$	117,894
Income (loss) from operations:
NextGen Division	$	44,858		$	44,345
RCM Services Division	4,417			2,245
QSI Dental Division	950			920
Hospital Solutions Division	955			(1,691		)
Corporate and unallocated	(42,146		)	(38,064		)
Consolidated operating income	$	9,034		$	7,755

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

	Three Months Ended June 30,
	2015		2014
Research and development costs	$	17,085	$	16,236
Amortization of capitalized software costs	2,439		3,602
Marketing expense	3,816		3,229
Other Corporate and overhead costs	18,806		14,997
Total Corporate and unallocated	42,146		38,064

Assets by segment are not tracked or used by our chief decision making group to allocate resources or to assess performance, and thus not included in the table above.

The amounts classified as Corporate and unallocated consist primarily of corporate general and administrative costs, non-recurring acquisition and transaction-related costs, recurring post-acquisition amortization of certain acquired intangible assets and amortization of capitalized software costs, as well as costs of other centrally managed overhead and shared-services functions, including accounting and finance, human resources, marketing, legal, and research and development, that are not controlled by segment level leadership. Although the segments may derive direct benefits as a result of such costs, our chief decision making group evaluates performance based upon stand-alone segment operating income, which excludes these Corporate and unallocated amounts.

Effective April 1, 2015, as part of our ongoing efforts to refine the measurement of our 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, we no longer classify certain costs within the information services and credit granting and collections functional areas, such as bad debt expense and other information services related general and administrative costs, within the operating segments. Such classification is consistent with the disaggregated financial information used by our chief decision making group. We have retroactively reclassified the prior year operating income in the table above to present all segment information on a comparable basis.