Acquisitions (Notes)

9 Months Ended

Oct. 01, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Business Acquisitions

On February 2, 2015, we acquired substantially all of the assets, and assumed certain liabilities of Siemens Health Services (now referred to as "Cerner Health Services"), the health information technology business unit of Siemens AG, a stock corporation established under the laws of Germany, and its affiliates. In the first quarter of 2016, we finalized our allocation of purchase price as appraisals of tangible and intangible assets were completed:

(in thousands)
Receivables, net of allowances	$	226,207
Other current assets	46,682
Property and equipment	158,324
Goodwill	532,327
Intangible assets:
Customer relationships	371,000
Existing technologies	201,990
Trade names	39,990
Total intangible assets	612,980
Other non-current assets	5,212
Accounts payable	(42,306		)
Deferred revenue (current)	(85,314		)
Other current liabilities	(12,853		)
Deferred revenue (non-current)	(48,130		)
Total purchase price	$	1,393,129

The changes in the carrying amounts of goodwill for the nine months ended October 1, 2016 were as follows:

(In thousands)	Domestic		Global			Total
Beginning balance	$	730,837	$	68,345		$	799,182
Purchase price allocation adjustments for Cerner Health Services	51,827		(4,887		)	46,940
Foreign currency translation adjustments and other	—		2,330			2,330
Ending balance at October 1, 2016	$	782,664	$	65,788		$	848,452

The following table provides unaudited pro forma results of operations for the nine months ended October 3, 2015 as if acquisition of the Cerner Health Services business had been completed on the first day of our 2015 fiscal year.

(In thousands, except per share data)
Pro forma revenues	$	3,343,653
Pro forma net earnings	379,059
Pro forma diluted earnings per share	1.08

These pro forma results are based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the period presented, nor are they indicative of our consolidated results of operations in future periods. The pro forma results for the nine months ended October 3, 2015 include pre-tax adjustments for amortization of intangible assets, fair value adjustments for deferred revenue, and the elimination of acquisition costs of $7 million, $6 million and $20 million, respectively.

During the nine months ended October 3, 2015, we incurred $20 million of pre-tax costs in connection with our acquisition of the Cerner Health Services business, which are included in general and administrative expense in our condensed consolidated statements of operations.