Segment Reporting

9 Months Ended

Sep. 28, 2019

We have two operating segments, Domestic and International (formerly referred to as Global). Revenues are derived primarily from the sale of clinical, financial and administrative information solutions and services. The cost of revenues includes the cost of third-party consulting services, computer hardware, devices and sublicensed software purchased from manufacturers for delivery to clients. It also includes the cost of hardware maintenance and sublicensed software support subcontracted to the manufacturers. Operating expenses incurred by the geographic business segments consist of sales and client service expenses including salaries of sales and client service personnel, expenses associated with our managed services business, marketing expenses, communications expenses and unreimbursed travel expenses. "Other" includes expenses that have not been allocated to the operating segments, such as software development, general and administrative expenses, certain organizational restructuring and other expense, share-based compensation expense, and certain amortization and depreciation. Performance of the segments is assessed at the operating earnings level by our chief operating decision maker, who is our Chief Executive Officer. Items such as interest, income taxes, capital expenditures and total assets are managed at the consolidated level and thus are not included in our operating segment disclosures. Accounting policies for each of the reportable segments are the same as those used on a consolidated basis.

The following table presents a summary of our operating segments and other expense for the three and nine months ended September 28, 2019 and September 29, 2018:



(In thousands)	Domestic		International		Other			Total

Three Months Ended 2019
Revenues	$	1,265,263	$	164,165	$	—		$	1,429,428

Costs of revenue	246,634		25,144		—			271,778
Operating expenses	639,590		68,153		361,130			1,068,873
Total costs and expenses	886,224		93,297		361,130			1,340,651

Operating earnings (loss)	$	379,039	$	70,868	$	(361,130	)	$	88,777



(In thousands)	Domestic		International		Other			Total

Three Months Ended 2018
Revenues	$	1,188,154	$	151,919	$	—		$	1,340,073

Costs of revenue	202,980		27,352		—			230,332
Operating expenses	532,958		67,220		302,407			902,585
Total costs and expenses	735,938		94,572		302,407			1,132,917

Operating earnings (loss)	$	452,216	$	57,347	$	(302,407	)	$	207,156



(In thousands)	Domestic		International		Other			Total

Nine Months Ended 2019
Revenues	$	3,762,205	$	488,161	$	—		$	4,250,366

Costs of revenue	719,119		74,536		—			793,655
Operating expenses	1,817,244		209,580		1,012,049			3,038,873
Total costs and expenses	2,536,363		284,116		1,012,049			3,832,528

Operating earnings (loss)	$	1,225,842	$	204,045	$	(1,012,049	)	$	417,838



(In thousands)	Domestic		International		Other			Total

Nine Months Ended 2018
Revenues	$	3,525,314	$	475,347	$	—		$	4,000,661

Costs of revenue	617,839		82,554		—			700,393
Operating expenses	1,604,297		209,771		875,542			2,689,610
Total costs and expenses	2,222,136		292,325		875,542			3,390,003

Operating earnings (loss)	$	1,303,178	$	183,022	$	(875,542	)	$	610,658