Operating Segment Information

3 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

As of June 30, 2016, we have three reportable segments that are evaluated regularly by our chief operating decision maker (consisting of our Chief Executive Officer) in deciding how to allocate resources and in assessing performance.

Operating segment data is as follows:

	Three Months Ended June 30,
	2016			2015
Revenue:
NextGen Division	$	95,556		$	91,615
RCM Services Division	22,365			22,462
QSI Dental Division	4,284			4,418
Hospital Solutions Division (1)	—			3,669
Consolidated revenue	$	122,205		$	122,164
Operating income:
NextGen Division	$	45,649		$	44,858
RCM Services Division	4,458			4,417
QSI Dental Division	1,877			950
Hospital Solutions Division (1)	—			955
Corporate and unallocated	(51,856		)	(42,146		)
Consolidated operating income	$	128		$	9,034

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⁽¹⁾ The former Hospital Solutions Division was divested in October 2015.

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

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

	Three Months Ended June 30,
	2016		2015
Research and development costs, net	$	18,224	$	17,085
Amortization of capitalized software costs	2,371		2,439
Marketing expense	2,943		3,816
Restructuring costs (see Note 15)	3,753		—
Other corporate and overhead costs (1)	24,565		18,806
Total corporate and unallocated	$	51,856	$	42,146

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⁽¹⁾ The net increase in other corporate and overhead costs in the three months ended June 30, 2016 is primarily related to higher amortization of acquired intangible assets and other general and administrative costs associated with the acquisition of HealthFusion, higher acquisition costs (including fair value adjustments to contingent consideration liabilities), and higher professional services costs.

The amounts classified as corporate and unallocated consist primarily of corporate general and administrative costs, acquisition and transaction-related costs, amortization of acquired intangible assets, amortization of capitalized software costs, and costs of other centrally managed overhead and shared-services functions, including accounting and finance, human resources, information services, 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 operating decision maker evaluates performance based upon stand-alone segment operating income, which excludes these corporate and unallocated amounts.