Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We have two operating segments, Domestic and International. 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 six months ended June 30, 2020 and June 29, 2019:

(In thousands)	Domestic		International		Other		Total
Three Months Ended 2020
Revenues	$	1,168,213	$	162,136	$	—	$	1,330,349
Costs of revenue	189,779		22,184		—		211,963
Operating expenses	587,674		57,413		326,401		971,488
Total costs and expenses	777,453		79,597		326,401		1,183,451
Operating earnings (loss)	$	390,760	$	82,539	$	(326,401)	$	146,898

(In thousands)	Domestic		International		Other		Total
Three Months Ended 2019
Revenues	$	1,266,112	$	164,949	$	—	$	1,431,061
Costs of revenue	243,926		24,747		—		268,673
Operating expenses	605,636		73,258		352,377		1,031,271
Total costs and expenses	849,562		98,005		352,377		1,299,944
Operating earnings (loss)	$	416,550	$	66,944	$	(352,377)	$	131,117

(In thousands)	Domestic		International		Other		Total
Six Months Ended 2020
Revenues	$	2,414,628	$	327,462	$	—	$	2,742,090
Costs of revenue	418,346		48,033		—		466,379
Operating expenses	1,157,768		123,968		668,701		1,950,437
Total costs and expenses	1,576,114		172,001		668,701		2,416,816
Operating earnings (loss)	$	838,514	$	155,461	$	(668,701)	$	325,274

(In thousands)	Domestic		International		Other		Total
Six Months Ended 2019
Revenues	$	2,496,942	$	323,996	$	—	$	2,820,938
Costs of revenue	472,485		49,392		—		521,877
Operating expenses	1,177,654		141,427		650,919		1,970,000
Total costs and expenses	1,650,139		190,819		650,919		2,491,877
Operating earnings (loss)	$	846,803	$	133,177	$	(650,919)	$	329,061