Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jan. 03, 2015 | Feb. 06, 2015 | Jun. 27, 2014 |
Entity Information [Line Items] | |||
Entity Registrant Name | CERNER CORP /MO/ | ||
Entity Central Index Key | 804753 | ||
Document Type | 10-K | ||
Document Period End Date | 3-Jan-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -2 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 342,588,295 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $15.50 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $635,203 | $202,377 |
Short-term investments | 785,663 | 677,004 |
Receivables, net | 672,778 | 582,926 |
Inventory | 23,789 | 32,299 |
Prepaid expenses and other | 209,278 | 175,488 |
Deferred income taxes, net | 22,075 | 91,614 |
Total current assets | 2,348,786 | 1,761,708 |
Property and equipment, net | 924,260 | 792,781 |
Software development costs, net | 420,199 | 347,077 |
Goodwill | 320,538 | 307,422 |
Intangible assets, net | 126,636 | 144,132 |
Long-term investments | 231,147 | 554,873 |
Other assets | 158,999 | 190,371 |
Total assets | 4,530,565 | 4,098,364 |
Current liabilities: | ||
Accounts payable | 160,285 | 145,019 |
Current installments of long-term debt and capital lease obligations | 67,460 | 54,107 |
Deferred revenue | 209,655 | 209,746 |
Accrued payroll and tax withholdings | 140,230 | 147,986 |
Other accrued expenses | 56,685 | 83,574 |
Total current liabilities | 634,315 | 640,432 |
Long-term debt and capital lease obligations | 62,868 | 111,717 |
Deferred income taxes and other liabilities | 256,601 | 170,392 |
Deferred revenue | 10,813 | 8,159 |
Total liabilities | 964,597 | 930,700 |
Shareholders' Equity: | ||
Common stock, $.01 par value, 500,000,000 shares authorized, 346,985,811 shares issued at January 3, 2015 and 344,338,030 shares issued at December 28, 2013 | 3,470 | 3,443 |
Additional paid-in capital | 933,446 | 812,853 |
Retained earnings | 2,918,481 | 2,393,048 |
Treasury stock, 4,652,515 shares at January 3, 2015 and 570,616 shares at December 28, 2013 | -245,333 | -28,251 |
Accumulated other comprehensive loss, net | -44,096 | -13,429 |
Total shareholders' equity | 3,565,968 | 3,167,664 |
Total liabilities and shareholders' equity | $4,530,565 | $4,098,364 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 346,985,811 | 344,338,030 |
Treasury stock, shares | 4,652,515 | 570,616 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Revenues: | |||
System sales | $945,858 | $847,809 | $902,799 |
Support, maintenance and services | 2,366,959 | 1,992,830 | 1,707,329 |
Reimbursed travel | 89,886 | 70,109 | 55,308 |
Total revenues | 3,402,703 | 2,910,748 | 2,665,436 |
Costs and expenses: | |||
Cost of system sales | 314,089 | 302,374 | 427,456 |
Cost of support, maintenance and services | 200,402 | 142,239 | 125,433 |
Cost of reimbursed travel | 89,886 | 70,109 | 55,308 |
Sales and client service | 1,395,568 | 1,173,051 | 1,020,640 |
Software development (Includes amortization of $103,447, $94,688 and $81,731, respectively) | 392,805 | 338,786 | 301,370 |
General and administrative | 246,869 | 308,177 | 163,567 |
Total costs and expenses | 2,639,619 | 2,334,736 | 2,093,774 |
Operating earnings | 763,084 | 576,012 | 571,662 |
Other income, net | 11,090 | 12,042 | 16,046 |
Earnings before income taxes | 774,174 | 588,054 | 587,708 |
Income taxes | -248,741 | -189,700 | -190,476 |
Net earnings | $525,433 | $398,354 | $397,232 |
Basic earnings per share | $1.54 | $1.16 | $1.16 |
Diluted earnings per share | $1.50 | $1.13 | $1.13 |
Basic weighted average shares outstanding | 342,150 | 343,636 | 341,861 |
Diluted weighted average shares outstanding | 350,386 | 352,281 | 351,394 |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Statement [Abstract] | |||
Software development, amortization | $103,447 | $94,688 | $81,731 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net earnings | $525,433 | $398,354 | $397,232 |
Foreign currency translation adjustment and other (net of tax benefits of $1,111, $3,604 and $1,396, respectively) | -30,145 | -8,185 | 6,511 |
Change in net unrealized holding gain (loss) on available-for-sale investments (net of taxes (benefits) of $(331), $10 and $125, respectively) | -522 | 11 | 201 |
Comprehensive income | $494,766 | $390,180 | $403,944 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Foreign currency translation adjustment and other, taxes (benefit) | ($1,111) | ($3,604) | ($1,396) |
Change in net unrealized holding gain (loss) on available-for-sale investments, taxes (benefit) | ($331) | $10 | $125 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $525,433 | $398,354 | $397,232 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 302,353 | 263,538 | 222,580 |
Share-based compensation expense | 59,292 | 46,295 | 36,113 |
Provision for deferred income taxes | 106,905 | -22,647 | 8,342 |
Changes in assets and liabilities (net of businesses acquired): | |||
Receivables, net | -74,786 | -9,599 | -83,705 |
Inventory | 8,117 | -8,111 | -279 |
Prepaid expenses and other | -14,625 | -36,038 | -2,224 |
Accounts payable | 2,974 | 4,130 | 35,265 |
Accrued income taxes | -21,764 | 14,694 | -22,784 |
Deferred revenue | 4,346 | 18,053 | 33,277 |
Other accrued liabilities | -51,218 | 27,196 | 84,497 |
Net cash provided by operating activities | 847,027 | 695,865 | 708,314 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital purchases | -276,584 | -352,877 | -183,429 |
Capitalized software development costs | -177,800 | -174,649 | -100,189 |
Purchases of investments | -1,214,036 | -1,106,819 | -1,286,997 |
Sales and maturities of investments | 1,404,846 | 1,070,598 | 932,394 |
Purchase of other intangibles | -13,517 | -56,805 | -22,870 |
Acquisition of businesses, net of cash acquired | -7,476 | -67,877 | -40,540 |
Net cash used in investing activities | -284,567 | -688,429 | -701,631 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of long-term debt and capital lease obligations | -14,930 | -24,700 | -17,083 |
Proceeds from excess tax benefits from share-based compensation | 39,532 | 39,927 | 48,370 |
Proceeds from exercise of options | 31,879 | 31,403 | 38,147 |
Treasury stock purchases | -217,082 | -170,042 | 0 |
Contingent consideration payments for acquisition of businesses | -10,617 | -800 | -3,400 |
Cash Grants | 48,000 | 0 | 0 |
Other | 2,894 | 4,823 | 0 |
Net cash provided by (used in) financing activities | -120,324 | -119,389 | 66,034 |
Effect of exchange rate changes on cash and cash equivalents | -9,310 | -2,790 | 1,257 |
Net increase (decrease) in cash and cash equivalents | 432,826 | -114,743 | 73,974 |
Cash and cash equivalents at beginning of period | 202,377 | 317,120 | 243,146 |
Cash and cash equivalents at end of period | 635,203 | 202,377 | 317,120 |
Cash paid during the year for: | |||
Interest | 5,682 | 6,973 | 6,448 |
Income taxes, net of refunds | 144,323 | 175,377 | 158,871 |
Summary of acquisition transactions: | |||
Fair value of net tangible assets (liabilities) acquired (assumed) | -1,509 | 2,550 | -6,375 |
Fair value of intangible assets acquired | 3,800 | 25,489 | 18,559 |
Fair value of goodwill | 16,785 | 59,570 | 35,281 |
Less: Fair value of contingent liability payable | -11,600 | -18,982 | -1,916 |
Cash paid for acquisitions | 7,476 | 68,627 | 45,549 |
Cash acquired | 0 | -750 | -5,009 |
Net cash used | $7,476 | $67,877 | $40,540 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $3,392 | $721,794 | $1,597,462 | $0 | ($11,967) | $120 | |
Common stock, shares issued at Dec. 31, 2011 | 339,132,000 | ||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 50 | 32,536 | |||||
Exercise of stock options, shares | 5,047,000 | ||||||
Employee share-based compensation expense | 36,113 | ||||||
Employee share-based compensation net excess tax benefit | 50,326 | ||||||
Other comprehensive income (loss) | 6,712 | ||||||
Net earnings | 397,232 | 397,232 | |||||
Dissolution of underlying entity | -120 | ||||||
Balance at Dec. 29, 2012 | 3,442 | 840,769 | 1,994,694 | 0 | -5,255 | 0 | |
Common stock, shares issued at Dec. 29, 2012 | 344,179,000 | ||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 32 | 27,056 | |||||
Exercise of stock options, shares | 3,204,000 | ||||||
Employee share-based compensation expense | 46,295 | ||||||
Employee share-based compensation net excess tax benefit | 40,493 | ||||||
Other comprehensive income (loss) | -8,174 | ||||||
Treasury stock purchases | -170,042 | ||||||
Share Impact of Using Treasury Shares in Stock Split | -3,045,000 | ||||||
Impact of Using Treasury Shares in Stock Split | -31 | -141,760 | 141,791 | ||||
Net earnings | 398,354 | 398,354 | |||||
Balance at Dec. 28, 2013 | 3,167,664 | 3,443 | 812,853 | 2,393,048 | -28,251 | -13,429 | 0 |
Common stock, shares issued at Dec. 28, 2013 | 344,338,030 | 344,338,000 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 27 | 21,613 | |||||
Exercise of stock options, shares | 2,648,000 | ||||||
Employee share-based compensation expense | 59,292 | ||||||
Employee share-based compensation net excess tax benefit | 39,688 | ||||||
Other comprehensive income (loss) | -30,667 | ||||||
Treasury stock purchases | -217,082 | ||||||
Net earnings | 525,433 | 525,433 | |||||
Balance at Jan. 03, 2015 | $3,565,968 | $3,470 | $933,446 | $2,918,481 | ($245,333) | ($44,096) | $0 |
Common stock, shares issued at Jan. 03, 2015 | 346,985,811 | 346,986,000 |
Basis_of_Presentation_Nature_o
Basis of Presentation, Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | |
Jan. 03, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Basis of Presentation, Nature of Operations and Summary of Significant Accounting Policies | |
Basis of Presentation | ||
The consolidated financial statements include all the accounts of Cerner Corporation (Cerner, the Company, we, us or our) and its subsidiaries. All significant intercompany transactions have been eliminated in consolidation. | ||
The consolidated financial statements were prepared using accounting principles generally accepted in the United States. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. | ||
Our fiscal year ends on the Saturday closest to December 31. Fiscal year 2014 consisted of 53 weeks and ended on January 3, 2015, and fiscal years 2013 and 2012 consisted of 52 weeks each and ended on December 28, 2013 and December 29, 2012, respectively. All references to years in these notes to consolidated financial statements represent fiscal years unless otherwise noted. | ||
Nature of Operations | ||
We design, develop, market, install, host and support health care information technology, health care devices, hardware and content solutions for health care organizations and consumers. We also provide a wide range of value-added services, including implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third party administrator services for employer-based health plans. | ||
Summary of Significant Accounting Policies | ||
(a) Revenue Recognition - We recognize software related revenue in accordance with the provisions of Accounting Standards Codification (ASC) 985-605, Software – Revenue Recognition and non-software related revenue in accordance with ASC 605, Revenue Recognition. In general, revenue is recognized when all of the following criteria have been met: | ||
• | Persuasive evidence of an arrangement exists; | |
• | Delivery has occurred or services have been rendered; | |
• | Our fee is fixed or determinable; and | |
• | Collection of the revenue is reasonably assured. | |
The following are our major components of revenue: | ||
• | System sales – includes the licensing of computer software, software as a service, deployment period upgrades, installation, content subscriptions, transaction processing and the sale of computer hardware and sublicensed software; | |
• | Support, maintenance and service – includes software support and hardware maintenance, remote hosting and managed services, training, consulting and implementation services; and | |
• | Reimbursed travel – includes reimbursable out-of-pocket expenses (primarily travel) incurred in connection with our client service activities. | |
We provide for several models of procurement of our information systems and related services. The predominant model involves multiple deliverables and includes a perpetual software license agreement, project-related installation services, implementation and consulting services, software support and either hosting services or computer hardware and sublicensed software, which requires that we allocate revenue to each of these elements. | ||
Allocation of Revenue to Multiple Element Arrangements | ||
For multiple element arrangements that contain software and non-software elements, we allocate revenue to software and software-related elements as a group and any non-software element separately. After the arrangement consideration has been allocated to the non-software elements, revenue is recognized when the basic revenue recognition criteria are met for each element. For the group of software and software-related elements, revenue is recognized under the guidance applicable to software transactions. | ||
Since we do not have vendor specific objective evidence (VSOE) of fair value on software licenses within our multiple element arrangements, we recognize revenue on our software and software-related elements using the residual method. Under the residual method, license revenue is recognized in a multiple-element arrangement when vendor-specific objective evidence of fair value exists for all of the undelivered elements in the arrangement, when software is delivered, installed and all other conditions to revenue recognition are met. We allocate revenue to each undelivered element in a multiple-element arrangement based on the element’s respective fair value, with the fair value determined by the price charged when that element is sold separately. Specifically, we determine the fair value of the software support, hardware maintenance, sublicensed software support, remote hosting, subscriptions and software as a service portions of the arrangement based on the substantive renewal price for these services charged to clients; professional services (including training and consulting) portion of the arrangement, other than installation services, based on hourly rates which we charge for these services when sold apart from a software license; and sublicensed software based on its price when sold separately from the software. The residual amount of the fee after allocating revenue to the fair value of the undelivered elements is attributed to the licenses for software solutions, including project-related installation services. If evidence of the fair value cannot be established for the undelivered elements of a license agreement using VSOE, the entire amount of revenue under the arrangement is deferred until these elements have been delivered or VSOE of fair value can be established. | ||
We also enter into arrangements that include multiple non-software deliverables. For each element in a multiple element arrangement that does not contain software-related elements to be accounted for as a separate unit of accounting, the following must be met: the delivered products or services have value to the client on a stand-alone basis; and for an arrangement that includes a general right of return relative to the delivered products or services, delivery or performance of the undelivered product or service is considered probable and is substantially controlled by the Company. We allocate the arrangement consideration to each element based on the selling price hierarchy of VSOE of fair value, if it exists, or third-party evidence (TPE) of selling price. If neither VSOE nor TPE are available, we use estimated selling price. After the arrangement consideration has been allocated to the elements, we account for each respective element in the arrangement as described below. | ||
For certain arrangements, revenue for software, implementation services and, in certain cases, support services for which VSOE of fair value cannot be established are accounted for as a single unit of accounting. The revenue recognized from single units of accounting are typically allocated and classified as system sales and support, maintenance and services. If available, the VSOE of fair value of the services provides the basis for support, maintenance and services allocation, and the remaining residual consideration provides the basis for system sales revenue allocations. In cases where VSOE cannot be established, revenue is classified based on the nature of related costs incurred. | ||
Revenue Recognition Policies for Each Element | ||
We provide project-related installation services when licensing our software solutions, which include project-scoping services, conducting pre-installation audits and creating initial environments. We have deemed installation services to be essential to the functionality of the software and, therefore, recognize the software license over the software installation period using the percentage-of-completion method. We measure the percentage-of-completion based on output measures that reflect direct labor hours incurred, beginning at software delivery and culminating at completion of installation. Installation generally occurs in the same period the contracts are executed but in the past has been extended over a longer period of time depending on client specific factors. | ||
We provide implementation and consulting services. These services vary depending on the scope and complexity of the engagement. Examples of such services may include database consulting, system configuration, project management, testing assistance, network consulting, post conversion review and application management services. Except for limited arrangements where our software requires significant modifications or customization, implementation and consulting services generally are not deemed to be essential to the functionality of the software and, thus, do not impact the timing of the software license recognition. However, if software license fees are tied to implementation milestones, then the portion of the software license fee tied to implementation milestones is deferred until the related milestone is accomplished and related fees become due and payable and non-forfeitable. Implementation fees are recognized over the service period, which may extend from nine months to several years for multi-phased projects. | ||
Remote hosting and managed services are marketed under long-term arrangements generally over periods of five to 10 years. These services are typically provided to clients that have acquired a perpetual license for licensed software and have contracted with us to host the software in our data center. Under these arrangements, the client generally has the contractual right to take possession of the licensed software at any time during the hosting period without significant penalty and it is feasible for the client to either run the software on its own equipment or contract with another party unrelated to us to host the software. Additionally, these services are not deemed to be essential to the functionality of the licensed software or other elements of the arrangement and as such, we allocate a portion of the services fee to the software and recognize it once the client has the ability to take possession of the software. The remaining services fee in these arrangements, as well as the services fee for arrangements where the client does not have the contractual right or the ability to take possession of the software at any time, is generally recognized ratably over the hosting service period. | ||
We also offer our solutions on a software as a service model, providing time-based licenses for our software solutions available within an environment that we manage from our data centers. The data centers provide system and administrative support as well as processing services. Revenue on these services is combined and recognized on a monthly basis over the term of the contract. We capitalize related pre-contract direct set-up costs consisting of third party costs and direct software installation and implementation costs associated with the initial set up of a software as a service client. These costs are amortized over the term of the arrangement. | ||
Software support fees are marketed under annual and multi-year arrangements and are recognized as revenue ratably over the contractual support term. Hardware and sublicensed software maintenance revenues are recognized ratably over the contractual maintenance term. | ||
Subscription and content fees are generally marketed under annual and multi-year agreements and are recognized ratably over the contractual terms. | ||
Hardware and sublicensed software sales are generally recognized when title and risk of loss have transferred to the client. | ||
The sale of equipment under sales-type leases is recorded as system sales revenue at the inception of the lease. Sales-type leases also produce financing income, which is included in system sales revenue and is recognized at consistent rates of return over the lease term. | ||
Where we have contractually agreed to develop new or customized software code for a client, we utilize percentage-of-completion accounting, labor-hours method. | ||
Revenue generally is recognized net of any taxes collected from clients and subsequently remitted to governmental authorities. | ||
Payment Arrangements | ||
Our payment arrangements with clients typically include an initial payment due upon contract signing and date-based licensed software payment terms and payments based upon delivery for services, hardware and sublicensed software. Revenue recognition on support payments received in advance of the services being performed are deferred and classified as either current or long term deferred revenue depending on whether the revenue will be earned within one year. | ||
We have periodically provided long-term financing options to creditworthy clients through third party financing institutions and have directly provided extended payment terms to clients from contract date. These extended payment term arrangements typically provide for date based payments over periods ranging from 12 months up to seven years. As a significant portion of the fee is due beyond one year, we have analyzed our history with these types of arrangements and have concluded that we have a standard business practice of using extended payment term arrangements and a long history of successfully collecting under the original payment terms for arrangements with similar clients, product offerings, and economics without granting concessions. Accordingly, we consider the fee to be fixed and determinable in these extended payment term arrangements and, thus, the timing of revenue is not impacted by the existence of extended payments. | ||
Some of these payment streams have been assigned on a non-recourse basis to third party financing institutions. We account for the assignment of these receivables as sales of financial assets. Provided all revenue recognition criteria have been met, we recognize revenue for these arrangements under our normal revenue recognition criteria, and if appropriate, net of any payment discounts from financing transactions. | ||
(b) Cash Equivalents - Cash equivalents consist of short-term marketable securities with original maturities less than 90 days. | ||
(c) Investments – Our short-term investments are primarily invested in time deposits, commercial paper, government and corporate bonds, with maturities of less than one year. Our long-term investments are primarily invested in government and corporate bonds with maturities of less than two years. All of our investments, other than a small portion accounted for under the cost and equity methods, are classified as available-for-sale. | ||
Available-for-sale securities are recorded at fair value with the unrealized gains and losses reflected in accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. | ||
We regularly review investment securities for impairment based on both quantitative and qualitative criteria that include the extent to which cost exceeds fair value, the duration of any market decline, and the financial health of and specific prospects for the issuer. Unrealized losses that are other than temporary are recognized in earnings. | ||
Premiums are amortized and discounts are accreted over the life of the security as adjustments to interest income for our investments. Interest income is recognized when earned. | ||
Refer to Note (3) and Note (4) for further description of these assets and their fair value. | ||
(d) Concentrations - The majority of our cash and cash equivalents are held at three major financial institutions. The majority of our cash equivalents consist of money market funds and commercial paper. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally these deposits may be redeemed upon demand. | ||
As of the end of 2014, we had a significant concentration of receivables owed to us by Fujitsu Services Limited, which are currently in dispute. Refer to Note (5) for additional information. | ||
(e) Inventory - Inventory consists primarily of computer hardware and sublicensed software, held for resale. Inventory is recorded at the lower of cost (first-in, first-out) or market. | ||
(f) Property and Equipment - We account for property and equipment in accordance with ASC 360, Property, Plant, and Equipment. Property, equipment and leasehold improvements are stated at cost. Depreciation of property and equipment is computed using the straight-line method over periods of one to 50 years. Amortization of leasehold improvements is computed using a straight-line method over the shorter of the lease terms or the useful lives, which range from periods of one to 15 years. | ||
(g) Software Development Costs - Software development costs are accounted for in accordance with ASC 985-20, Costs of Software to be Sold, Leased or Marketed. Software development costs incurred internally in creating computer software products are expensed until technological feasibility has been established upon completion of a detailed program design. Thereafter, all software development costs incurred through the software’s general release date are capitalized and subsequently reported at the lower of amortized cost or net realizable value. Capitalized costs are amortized based on current and expected future revenue for each software solution with minimum annual amortization equal to the straight-line amortization over the estimated economic life of the solution. We amortize capitalized software development costs over five years. | ||
(h) Goodwill - We account for goodwill under the provisions of ASC 350, Intangibles – Goodwill and Other. Goodwill is not amortized but is evaluated for impairment annually or whenever there is an impairment indicator. All goodwill is assigned to a reporting unit, where it is subject to an annual impairment assessment. Based on these evaluations, there was no impairment of goodwill in 2014, 2013 or 2012. Refer to Note (7) for more information on goodwill and other intangible assets. | ||
(i) Derivative Instruments and Hedging Activities - We account for our hedging activities in accordance with ASC 815, Derivatives and Hedging. Historically, our use of hedging instruments has primarily been to hedge foreign currency denominated assets and liabilities. We record all hedging instruments on our consolidated balance sheets at fair value. For hedging instruments that are designated and qualify as a net investment hedge, the effective portion of the gain or loss on the hedging instrument is reported in the foreign currency translation component of other comprehensive income (loss). Any ineffective portion of the gain or loss on the hedging instrument is recorded in the results of operations immediately. Refer to Note (10) for more information on our hedging activities. | ||
(j) Income Taxes - Income taxes are accounted for in accordance with ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Refer to Note (13) for additional information regarding income taxes. | ||
(k) Earnings per Common Share - Basic earnings per share (EPS) excludes dilution and is computed, in accordance with ASC 260, Earnings Per Share, by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. Refer to Note (14) for additional details of our earnings per share computations. | ||
(l) Accounting for Share-based Payments - We recognize all share-based payments to associates, directors and consultants, including grants of stock options, restricted stock and performance shares, in the financial statements as compensation cost based on their fair value on the date of grant, in accordance with ASC 718, Compensation-Stock Compensation. This compensation cost is recognized over the vesting period on a straight-line basis for the fair value of awards that actually vest. Refer to Note (15) for a detailed discussion of share-based payments. | ||
(m) Foreign Currency - In accordance with ASC 830, Foreign Currency Matters, assets and liabilities of non-U.S. subsidiaries whose functional currency is the local currency are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Revenues and expenses are translated at average exchange rates during the year. The net exchange differences resulting from these translations are reported in accumulated other comprehensive income. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. | ||
(n) Collaborative Arrangements - In accordance with ASC 808, Collaborative Arrangements, third party costs incurred and revenues generated by arrangements involving joint operating activities of two or more parties that are each actively involved and exposed to risks and rewards of the activities are classified in the consolidated statements of operations on a gross basis only if we are determined to be the principal participant in the arrangement. Otherwise, third party revenues and costs generated by collaborative arrangements are presented on a net basis. Payments between participants are recorded and classified based on the nature of the payments. | ||
(o) Recently Issued Accounting Pronouncements | ||
Revenue Recognition. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. This new guidance is effective for the Company in the first quarter of 2017, with no early adoption permitted. The standard permits the use of either the retrospective or cumulative effect transition method. At this time we have not selected a transition method. We are currently evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 03, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions |
Siemens Health Services | |
On February 2, 2015, we acquired substantially all of the assets, and assumed certain liabilities of Siemens Health Services, the health information technology business unit of Siemens AG ("Siemens"), a stock corporation established under the laws of Germany. Siemens Health Services offers a portfolio of enterprise-level clinical and financial health care information technology solutions, as well as departmental, connectivity, population health, and care coordination solutions globally. Solutions are offered on the Soarian, Invision, and i.s.h.med platforms, among others. Siemens Health Services also offers a range of complementary and support services including hosting and managed services, implementation services, and strategic consulting. | |
We believe the acquisition enhances our organic growth opportunities as it provides us a larger base into which we can sell our combined portfolio of solutions and services. The acquisition also augments our non-U.S. footprint and growth opportunities, increases our ability and scale for R&D investment, and adds approximately 5,500 of highly-skilled associates that will enhance our capabilities. These factors, combined with the synergies and economies of scale expected from combining the operations of Cerner and Siemens Health Services, are the basis for acquisition. | |
Consideration for the acquisition was $1.37 billion of cash, consisting of the $1.3 billion agreed upon price plus working capital adjustments. The purchase price is subject to certain post-closing adjustments for working capital and pension obligations, as specified in the Master Sale and Purchase Agreement ("MSPA") dated August 5, 2014, as amended. | |
In 2014 we incurred $15.8 million of pre-tax costs in connection with our acquisition of Siemens Health Services, which are included in general and administrative expense in our consolidated statements of operations. | |
Our acquisition of Siemens Health Services will be treated as a purchase in accordance with ASC 805, Business Combinations, which requires allocation of the purchase price to the estimated fair values of assets and liabilities acquired in the transaction. Due to the timing of the acquisition subsequent to our 2014 fiscal year-end, certain disclosures, including the preliminary allocation of purchase price, have been omitted from this Annual Report on Form 10-K because the initial accounting for the business combination is incomplete as of the filing date. We will include necessary disclosures in our Quarterly Report on Form 10-Q for our first fiscal quarter of 2015. | |
The operating results of Siemens Health Services will be combined with our operating results subsequent to the purchase date of February 2, 2015. | |
InterMedHx | |
On April 1, 2014, we purchased 100% of the outstanding membership interests of InterMedHx, LLC (InterMedHx). InterMedHx is a provider of health technology solutions in the areas of preventive care, patient administration, and medication history. We believe the addition of InterMedHx solutions provides additional capabilities in the market. | |
Consideration for the acquisition of InterMedHx is expected to total $19.1 million, consisting of up-front cash plus contingent consideration, which is payable at a percentage of the revenue contribution from InterMedHx solutions and services. We valued the contingent consideration at $11.6 million based on projections of revenue over the assessment period. | |
The allocation of purchase price to the estimated fair value of the identified tangible and intangible assets acquired and liabilities assumed resulted in goodwill of $16.8 million and $3.8 million in intangible assets related to the value of existing technologies. The goodwill was allocated to our Domestic operating segment and is expected to be deductible for tax purposes. Identifiable intangible assets are being amortized over a period of five years. | |
The operating results of InterMedHx were combined with our operating results subsequent to the purchase date of April 1, 2014. Pro-forma results of operations have not been presented because the effect of this acquisition was not material to our results. | |
PureWellness | |
On March 4, 2013, we purchased the net assets of Kaufman & Keen, LLC (doing business as PureWellness). PureWellness is a health and wellness company that develops solutions for the administration and management of wellness programs, and to enable plan member engagement strategies. Our acquisition of PureWellness will further expand what we believe to be a robust offering of solutions to manage and improve the health of populations. | |
Consideration for the acquisition of PureWellness is expected to total $69.2 million consisting of up-front cash plus contingent consideration, which is payable if we achieve certain revenue milestones from PureWellness solutions and services during the period commencing on August 1, 2013 and ending April 30, 2015. We valued the contingent consideration at $19.0 million based on a probability-weighted assessment of potential contingent consideration payment scenarios. During 2014, we paid $10.6 million to satisfy a portion of this contingent consideration obligation. | |
The allocation of the purchase price to the estimated fair value of the identified tangible and intangible assets acquired and liabilities assumed resulted in goodwill of $48.6 million and $20.3 million in intangible assets, of which $10.5 million and $9.8 million was related to the value of established customer relationships and existing technologies, respectively. The goodwill was allocated to our Domestic operating segment and is expected to be deductible for tax purposes. Identifiable intangible assets are being amortized over a weighted-average period of seven years. | |
The operating results of PureWellness were combined with our operating results subsequent to the purchase date of March 4, 2013. Pro-forma results of operations, assuming this acquisition was made at the beginning of the earliest period presented, have not been presented because the effect of this acquisition was not material to our results. | |
Labotix | |
On March 18, 2013, we purchased 100% of the outstanding stock of Labotix Corporation (together with its wholly owned subsidiary Labotix Automation, Inc., Labotix). Labotix is a developer of laboratory automation solutions for clinical laboratories. We believe the combination of Cerner Millennium, Cerner Copath, and Labotix will allow us to offer a comprehensive set of capabilities to support high volume laboratory testing. | |
Consideration for the acquisition of Labotix was $18.0 million, which was paid in cash. The allocation of purchase price to the estimated fair value of the identified tangible and intangible assets acquired and liabilities assumed resulted in goodwill of $11.7 million and $5.2 million in intangible assets related to the value of existing technologies. The goodwill was allocated to our Domestic operating segment and is not expected to be deductible for tax purposes. Identifiable intangible assets are being amortized over a period of five years. | |
The operating results of Labotix were combined with our operating results subsequent to the purchase date of March 18, 2013. Pro-forma results of operations have not been presented because the effect of this acquisition was not material to our results. | |
Anasazi Software, Inc. | |
On November 26, 2012, we completed the purchase of 100% of the outstanding stock of Anasazi Software, Inc. (Anasazi). Anasazi is a provider of behavioral health technology solutions. We believe the combination of Cerner Millennium, including in-patient behavioral health, and Anasazi's community behavioral health solutions create a more comprehensive offering in the market. | |
Consideration for the acquisition of Anasazi was $47.7 million consisting of up-front cash plus contingent consideration, which was payable upon the achievement of certain revenue milestones during 2013 from Anasazi solutions and services. During 2013, we paid $0.8 million to satisfy all contingent consideration obligations. | |
The allocation of the purchase price to the estimated fair value of the identified tangible and intangible assets acquired and liabilities assumed resulted in goodwill of $34.6 million and $18.6 million in intangible assets, of which $12.8 million and $5.2 million was related to the value of established customer relationships and existing technologies, respectively. The goodwill was allocated to our Domestic operating segment and is not expected to be deductible for tax purposes. Identifiable intangible assets are being amortized over a weighted-average period of 12 years. | |
The operating results of Anasazi were combined with our operating results subsequent to the purchase date of November 26, 2012. |
Investments
Investments | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Investments [Abstract] | |||||||||||||||||
Investments | Investments | ||||||||||||||||
Available-for-sale investments at the end of 2014 were as follows: | |||||||||||||||||
(In thousands) | Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 189,137 | $ | — | $ | — | $ | 189,137 | |||||||||
Time deposits | 9,989 | — | — | 9,989 | |||||||||||||
Commercial Paper | 115,638 | — | — | 115,638 | |||||||||||||
Total cash equivalents | 314,764 | — | — | 314,764 | |||||||||||||
Short-term investments: | |||||||||||||||||
Time deposits | 52,830 | — | (1 | ) | 52,829 | ||||||||||||
Commercial paper | 435,555 | 1 | (12 | ) | 435,544 | ||||||||||||
Government and corporate bonds | 297,311 | 69 | (90 | ) | 297,290 | ||||||||||||
Total short-term investments | 785,696 | 70 | (103 | ) | 785,663 | ||||||||||||
Long-term investments: | |||||||||||||||||
Government and corporate bonds | 219,439 | 26 | (500 | ) | 218,965 | ||||||||||||
Total available-for-sale investments | $ | 1,319,899 | $ | 96 | $ | (603 | ) | $ | 1,319,392 | ||||||||
Available-for-sale investments at the end of 2013 were as follows: | |||||||||||||||||
(In thousands) | Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 57,254 | $ | — | $ | — | $ | 57,254 | |||||||||
Time deposits | 7,771 | — | — | 7,771 | |||||||||||||
Commercial Paper | 3,000 | — | — | 3,000 | |||||||||||||
Government and corporate bonds | 410 | — | — | 410 | |||||||||||||
Total cash equivalents | 68,435 | — | — | 68,435 | |||||||||||||
Short-term investments: | |||||||||||||||||
Time deposits | 70,303 | 12 | — | 70,315 | |||||||||||||
Commercial paper | 33,750 | 1 | (9 | ) | 33,742 | ||||||||||||
Government and corporate bonds | 572,670 | 356 | (79 | ) | 572,947 | ||||||||||||
Total short-term investments | 676,723 | 369 | (88 | ) | 677,004 | ||||||||||||
Long-term investments: | |||||||||||||||||
Government and corporate bonds | 542,644 | 346 | (279 | ) | 542,711 | ||||||||||||
Total available-for-sale investments | $ | 1,287,802 | $ | 715 | $ | (367 | ) | $ | 1,288,150 | ||||||||
Investments reported under the cost method of accounting as of January 3, 2015 and December 28, 2013 were $8.7 million and $7.2 million, respectively. Investments reported under the equity method of accounting as of January 3, 2015 and December 28, 2013 were $3.5 million and $5.0 million, respectively. | |||||||||||||||||
We sold available-for-sale investments for proceeds of $697.9 million and $125.3 million in 2014 and 2013, respectively, resulting in insignificant gains. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||
Jan. 03, 2015 | |||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||
We determine fair value measurements used in our consolidated financial statements based upon the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | |||||||||||||||
• | Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. | ||||||||||||||
• | Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. | ||||||||||||||
• | Level 3 – Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||
The following table details our financial assets measured and recorded at fair value on a recurring basis at the end of 2014: | |||||||||||||||
(In thousands) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Description | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | Cash equivalents | $ | 189,137 | $ | — | $ | — | ||||||||
Time deposits | Cash equivalents | — | 9,989 | — | |||||||||||
Commercial paper | Cash equivalents | — | 115,638 | — | |||||||||||
Time deposits | Short-term investments | — | 52,829 | — | |||||||||||
Commercial paper | Short-term investments | — | 435,544 | — | |||||||||||
Government and corporate bonds | Short-term investments | — | 297,290 | — | |||||||||||
Government and corporate bonds | Long-term investments | — | 218,965 | — | |||||||||||
The following table details our financial assets measured and recorded at fair value on a recurring basis at the end of 2013: | |||||||||||||||
(In thousands) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Description | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | Cash equivalents | $ | 57,254 | $ | — | $ | — | ||||||||
Time deposits | Cash equivalents | — | 7,771 | — | |||||||||||
Commercial paper | Cash equivalents | — | 3,000 | — | |||||||||||
Government and corporate bonds | Cash equivalents | — | 410 | — | |||||||||||
Time deposits | Short-term investments | — | 70,315 | — | |||||||||||
Commercial paper | Short-term investments | — | 33,742 | — | |||||||||||
Government and corporate bonds | Short-term investments | — | 572,947 | — | |||||||||||
Government and corporate bonds | Long-term investments | — | 542,711 | — | |||||||||||
We estimate the fair value of our long-term, fixed rate debt using a Level 3 discounted cash flow analysis based on current borrowing rates for debt with similar maturities. The fair value of our long-term debt, including current maturities, at the end of 2014 and 2013 was approximately $14.9 million and $32.6 million, respectively. The carrying amount of such fixed-rate debt at the end of 2014 and 2013 was $14.2 million and $30.6 million, respectively. |
Receivables
Receivables | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Receivables | Receivables | |||||||
Receivables consist of accounts receivable and the current portion of amounts due under sales-type leases. Accounts receivable represent recorded revenues that have been billed. Billings and other consideration received on contracts in excess of related revenues recognized are recorded as deferred revenue. Substantially all receivables are derived from sales and related support and maintenance and professional services of our clinical, administrative and financial information systems and solutions to health care providers located throughout the United States and in certain non-U.S. countries. | ||||||||
We perform ongoing credit evaluations of our clients and generally do not require collateral from our clients. We provide an allowance for estimated uncollectible accounts based on specific identification, historical experience and our judgment. Provisions for losses on uncollectible accounts for 2014, 2013, and 2012 totaled $5.3 million, $7.0 million and $13.5 million, respectively. | ||||||||
A summary of net receivables is as follows: | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Gross accounts receivable | $ | 641,160 | $ | 583,312 | ||||
Less: Allowance for doubtful accounts | 25,531 | 36,286 | ||||||
Accounts receivable, net of allowance | 615,629 | 547,026 | ||||||
Current portion of lease receivables | 57,149 | 35,900 | ||||||
Total receivables, net | $ | 672,778 | $ | 582,926 | ||||
Lease receivables represent our net investment in sales-type leases resulting from the sale of certain health care devices to our clients. The components of our net investment in sales-type leases are as follows: | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Minimum lease payments receivable | $ | 125,906 | $ | 146,566 | ||||
Less: Unearned income | 6,089 | 7,602 | ||||||
Total lease receivables | 119,817 | 138,964 | ||||||
Less: Long-term receivables included in other assets | 62,668 | 103,064 | ||||||
Current portion of lease receivables | $ | 57,149 | $ | 35,900 | ||||
Future minimum lease payments to be received under existing sales-type leases for the next five years are as follows: | ||||||||
(In thousands) | ||||||||
2015 | $ | 60,198 | ||||||
2016 | 36,259 | |||||||
2017 | 20,293 | |||||||
2018 | 6,986 | |||||||
2019 | 2,170 | |||||||
During the second quarter of 2008, Fujitsu Services Limited’s (Fujitsu) contract as the prime contractor in the National Health Service (NHS) initiative to automate clinical processes and digitize medical records in the Southern region of England was terminated by the NHS. This had the effect of automatically terminating our subcontract for the project. We continue to be in dispute with Fujitsu regarding Fujitsu’s obligation to pay the amounts comprised of accounts receivable and contracts receivable related to that subcontract, and we are working with Fujitsu to resolve these issues based on processes provided for in the contract. Part of that process requires final resolution of disputes between Fujitsu and the NHS regarding the contract termination. As of January 3, 2015, it remains unlikely that our matter with Fujitsu will be resolved in the next 12 months. Therefore, these receivables have been classified as long-term and represent less than the majority of other long-term assets at the end of 2014 and 2013. While the ultimate collectability of the receivables pursuant to this process is uncertain, we believe that we have valid and equitable grounds for recovery of such amounts and that collection of recorded amounts is probable. Nevertheless, it is reasonably possible that our estimates regarding collectability of such amounts might materially change in the near term, considering that we do not have complete knowledge of the status of the proceedings between Fujitsu and NHS and their effect on our claim. | ||||||||
During 2014 and 2013, we received total client cash collections of $3.5 billion and $3.1 billion, respectively, of which $79.9 million and $60.8 million were received from third party arrangements with non-recourse payment assignments. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||
A summary of property, equipment and leasehold improvements stated at cost, less accumulated depreciation and amortization, is as follows: | ||||||||||||
(In thousands) | Depreciable Lives (Yrs) | 2014 | 2013 | |||||||||
Computer and communications equipment | 1 | — | 5 | $ | 1,137,497 | $ | 963,301 | |||||
Land, buildings and improvements | 12 | — | 50 | 439,567 | 411,382 | |||||||
Leasehold improvements | 1 | — | 15 | 187,351 | 160,030 | |||||||
Furniture and fixtures | 5 | — | 12 | 96,244 | 72,601 | |||||||
Capital lease equipment | 3 | — | 5 | 3,196 | 3,207 | |||||||
Other equipment | 3 | — | 20 | 915 | 710 | |||||||
1,864,770 | 1,611,231 | |||||||||||
Less accumulated depreciation and leasehold amortization | 940,510 | 818,450 | ||||||||||
Total property and equipment, net | $ | 924,260 | $ | 792,781 | ||||||||
Depreciation and leasehold amortization expense for 2014, 2013 and 2012 was $163.0 million, $135.7 million and $120.1 million, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets | |||||||||||||||
The changes in the carrying amounts of goodwill were as follows: | ||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||
Beginning Balance | $ | 307,422 | $ | 247,616 | ||||||||||||
Goodwill recorded in connection with business acquisitions | 16,757 | 59,570 | ||||||||||||||
Foreign currency translation adjustment and other | (3,641 | ) | 236 | |||||||||||||
Ending Balance | $ | 320,538 | $ | 307,422 | ||||||||||||
Our intangible assets subject to amortization are amortized on a straight-line basis, and are summarized as follows: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Purchased software | $ | 169,703 | $ | 110,344 | $ | 168,798 | $ | 89,691 | ||||||||
Customer lists | 100,681 | 73,637 | 100,909 | 68,094 | ||||||||||||
Other | 68,859 | 28,626 | 45,915 | 13,705 | ||||||||||||
Total | $ | 339,243 | $ | 212,607 | $ | 315,622 | $ | 171,490 | ||||||||
Intangible assets, net | $ | 126,636 | $ | 144,132 | ||||||||||||
Amortization expense for 2014, 2013 and 2012 was $35.9 million, $32.9 million and $20.3 million, respectively. | ||||||||||||||||
Estimated aggregate amortization expense for each of the next five years is as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
2015 | $ | 34,048 | ||||||||||||||
2016 | 29,359 | |||||||||||||||
2017 | 22,651 | |||||||||||||||
2018 | 8,494 | |||||||||||||||
2019 | 5,208 | |||||||||||||||
Note that the above estimate of future amortization expense does not include any impact of intangible assets that may be recorded in connection with our February 2, 2015 acquisition of Siemens Health Services, as further described in Note (2). |
Software_Development_Costs
Software Development Costs | 12 Months Ended | |||||||||
Jan. 03, 2015 | ||||||||||
Research and Development [Abstract] | ||||||||||
Software Development Costs | Software Development | |||||||||
Information regarding our software development costs is included in the following table: | ||||||||||
For the Years Ended | ||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||
Software development costs | $ | 467,158 | $ | 418,747 | $ | 319,828 | ||||
Capitalized software development costs | (177,800 | ) | (174,649 | ) | (100,189 | ) | ||||
Amortization of capitalized software development costs | 103,447 | 94,688 | 81,731 | |||||||
Total software development expense | $ | 392,805 | $ | 338,786 | $ | 301,370 | ||||
Accumulated amortization as of the end of 2014 and 2013 was $890.7 million and $798.0 million, respectively. |
Indebtedness
Indebtedness | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
Idebtedness | Long-term Debt and Capital Lease Obligations | |||||||||||||||||||
The following is a summary of indebtedness outstanding: | ||||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||||
Note agreement, 5.54% | $ | 14,233 | $ | 30,608 | ||||||||||||||||
Capital lease obligations | 116,095 | 135,216 | ||||||||||||||||||
Total debt and capital lease obligations | 130,328 | 165,824 | ||||||||||||||||||
Less: current portion | (67,460 | ) | (54,107 | ) | ||||||||||||||||
Long-term debt and capital lease obligations | $ | 62,868 | $ | 111,717 | ||||||||||||||||
In November 2005, we completed a £65.0 million unsecured private placement of debt at 5.54% pursuant to a Note Agreement. The Note Agreement is payable in seven equal annual installments, which commenced November 2009. The proceeds were used to repay the outstanding amount under our credit facility and for general corporate purposes. The Note Agreement contains certain net worth and fixed charge coverage covenants and provides certain restrictions on our ability to borrow, incur liens, sell assets and pay dividends. We were in compliance with all covenants at the end of 2014. | ||||||||||||||||||||
In January 2015, we issued $500.0 million aggregate principal amount of unsecured Senior Notes ("Notes"), pursuant to a Master Note Purchase Agreement dated December 4, 2014. The issuance consisted of $225.0 million of 3.18% Series 2015-A Notes due February 15, 2022, $200.0 million of 3.58% Series 2015-B Notes due February 14, 2025, and $75.0 million in floating rate Series 2015-C Notes due February 15, 2022. Interest is payable semiannually on February 15th and August 15th in each year, commencing on August 15, 2015 for the Series 2015-A Notes and Series 2015-B Notes. The Series 2015-C Notes will accrue interest at a floating rate equal to the Adjusted LIBOR Rate (as defined in the Master Note Purchase Agreement), payable quarterly on February 15th, May 15th, August 15th and November 15th in each year, commencing on May 15, 2015. The Master Note Purchase Agreement contains certain leverage and interest coverage ratio covenants and provides certain restrictions on our ability to borrow, incur liens, sell assets, and other customary terms. Proceeds from the Notes are available for general corporate purposes. | ||||||||||||||||||||
Our capital lease obligations are primarily related to the procurement of hardware and health care devices, and generally have a term of five years. | ||||||||||||||||||||
Minimum annual payments under existing capital lease obligations and maturities of indebtedness outstanding at the end of 2014 are as follows: | ||||||||||||||||||||
Capital Lease Obligations | ||||||||||||||||||||
(In thousands) | Minimum Lease Payments | Less: Interest | Principal | Principal Amount of Indebtedness | Total | |||||||||||||||
2015 | $ | 55,968 | $ | 2,741 | $ | 53,227 | $ | 14,233 | $ | 67,460 | ||||||||||
2016 | 35,968 | 1,458 | 34,510 | — | 34,510 | |||||||||||||||
2017 | 20,052 | 530 | 19,522 | — | 19,522 | |||||||||||||||
2018 | 6,877 | 156 | 6,721 | — | 6,721 | |||||||||||||||
2019 | 2,137 | 22 | 2,115 | — | 2,115 | |||||||||||||||
Total | $ | 121,002 | $ | 4,907 | $ | 116,095 | $ | 14,233 | $ | 130,328 | ||||||||||
We also maintain a $100.0 million multi-year revolving credit facility, which expires in February 2017. The facility provides an unsecured revolving line of credit for working capital purposes, along with a letter of credit facility. Interest is payable at a rate based on prime, LIBOR, or the U.S. federal funds rate, plus a spread that varies depending on the leverage ratios maintained. The agreement provides certain restrictions on our ability to borrow, incur liens, sell assets and pay dividends and contains certain cash flow and liquidity covenants. As of the end of 2014, we were in compliance with all debt covenants. As of the end of 2014, we had no outstanding borrowings under this agreement; however, we had $16.6 million of outstanding letters of credit, which reduced our available borrowing capacity to $83.4 million. |
Hedging_Activities
Hedging Activities | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Hedging Activities | Hedging Activities | ||||||||
We designated all of our Great Britain Pound (GBP) denominated long-term debt as a net investment hedge of our U.K. operations. The objective of the hedge is to reduce our foreign currency exposure in our U.K. subsidiary investment. Changes in the exchange rate between the United States Dollar (USD) and GBP, related to the notional amount of the hedge, are recognized as a component of other comprehensive income (loss), to the extent the hedge is effective. The following tables represent the fair value of our net investment hedge included within the consolidated balance sheets and the related unrealized gain or loss, net of related income tax effects, on the net investment hedge recognized in comprehensive income: | |||||||||
(In thousands) | 2014 | ||||||||
Derivatives Designated | Balance Sheet Classification | Fair Value | Net Unrealized Gain | ||||||
Total net investment hedge | Short-term liabilities | $ | 14,233 | $ | 929 | ||||
(In thousands) | 2013 | ||||||||
Derivatives Designated | Balance Sheet Classification | Fair Value | Net Unrealized Loss | ||||||
Net investment hedge | Short-term liabilities | $ | 15,304 | $ | 178 | ||||
Net investment hedge | Long-term liabilities | 15,304 | 178 | ||||||
Total net investment hedge | $ | 30,608 | $ | 356 | |||||
Contingencies_Notes
Contingencies (Notes) | 12 Months Ended |
Jan. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies Disclosure [Text Block] | Contingencies |
We accrue estimates for resolution of any legal and other contingencies when losses are probable and estimable, in accordance with ASC 450, Contingencies. | |
The terms of our software license agreements with our clients generally provide for a limited indemnification of such clients against losses, expenses and liabilities arising from third party claims based on alleged infringement by our solutions of an intellectual property right of such third party. The terms of such indemnification often limit the scope of and remedies for such indemnification obligations and generally include a right to replace or modify an infringing solution. To date, we have not had to reimburse any of our clients for any losses related to these indemnification provisions pertaining to third party intellectual property infringement claims. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the terms of the corresponding agreements with our clients, we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. | |
In addition to commitments and obligations in the ordinary course of business, we are subject to various legal proceedings and claims, including for example, employment disputes and litigation alleging solution defects, personal injury, intellectual property infringement, violations of law and breaches of contract and warranties. Many of these proceedings are at preliminary stages and many seek an indeterminate amount of damages. | |
No less than quarterly, we review the status of each significant matter and assess our potential financial exposure. We accrue a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to our management at the time the judgment is made. Furthermore, the outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters. Should any one or a combination of more than one of these proceedings be successful, or should we determine to settle any or a combination of these matters, we may be required to pay substantial sums, become subject to the entry of an injunction or be forced to change the manner in which we operate our business, which could have a material adverse impact on our financial position or results of operations. | |
RLIS, Inc., a non-practicing entity, filed a complaint in the Southern District of Texas against the Company alleging that certain of the Company’s electronic medical record solutions infringe two patents owned by the plaintiff. At trial, Plaintiff requested damages between $35.3 million and $38.2 million. Plaintiff also sought attorneys’ fees, costs, and an ongoing royalty. A jury trial was conducted from January 5, 2015, to January 16, 2015. The jury rendered a verdict that all remaining patent claims asserted against the Company were invalid and not infringed by the Company. The Company continues to dispute the Plaintiff’s claims and will vigorously defend itself if the Plaintiff appeals after a final judgment is entered. In the opinion of our management, if the Plaintiff were to appeal, there is a reasonable possibility that we could incur losses with respect to this matter but we are unable to estimate a range of any such possible losses at this time, and we do not believe a loss is probable. Our management will continue to evaluate the potential exposure related to this matter in future periods. | |
Settlement Charge | |
On December 10, 2013, the Company received an interim ruling on a pending arbitration matter between Cerner and a client, awarding the client damages and awarding us part of our counterclaim to collect accounts receivable. The client dispute arose from allegations that a certain patient accounting software solution sold to the client in 2008 was defective and did not deliver the promised benefits. This matter was resolved and paid in 2013. We recognized a gross pre-tax charge of $106.2 million in the fourth quarter of 2013, which is included in general and administrative expense in our consolidated statements of operations. |
Other_Income
Other Income | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Nonoperating Income (Expense) [Abstract] | ||||||||||||
Other Income | Other Income | |||||||||||
A summary of other income is as follows: | ||||||||||||
For the Years Ended | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Interest income | $ | 16,342 | $ | 15,314 | $ | 16,543 | ||||||
Interest expense | (3,993 | ) | (4,226 | ) | (5,068 | ) | ||||||
Other | (1,259 | ) | 954 | 4,571 | ||||||||
Other income, net | $ | 11,090 | $ | 12,042 | $ | 16,046 | ||||||
Other income in 2012 includes a $4.5 million gain recognized on the disposition of one of our cost-method investments. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income tax expense (benefit) for 2014, 2013 and 2012 consists of the following: | ||||||||||||
For the Years Ended | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 114,508 | $ | 178,424 | $ | 164,690 | ||||||
State | 13,504 | 25,148 | 13,302 | |||||||||
Foreign | 13,824 | 8,775 | 4,142 | |||||||||
Total current expense | 141,836 | 212,347 | 182,134 | |||||||||
Deferred: | ||||||||||||
Federal | 95,057 | (9,792 | ) | 9,035 | ||||||||
State | 8,873 | (7,116 | ) | 4,453 | ||||||||
Foreign | 2,975 | (5,739 | ) | (5,146 | ) | |||||||
Total deferred expense (benefit) | 106,905 | (22,647 | ) | 8,342 | ||||||||
Total income tax expense | $ | 248,741 | $ | 189,700 | $ | 190,476 | ||||||
Temporary differences between the financial statement carrying amounts and tax basis of assets and liabilities that give rise to significant portions of deferred income taxes at the end of 2014 and 2013 relate to the following: | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses | $ | 25,398 | $ | 22,948 | ||||||||
Tax credits and separate return net operating losses | 28,953 | 25,612 | ||||||||||
Share based compensation | 58,271 | 44,856 | ||||||||||
Contract and service revenues and costs | — | 65,407 | ||||||||||
Other | 10,347 | 12,529 | ||||||||||
Gross deferred tax assets | 122,969 | 171,352 | ||||||||||
Less: Valuation allowance | (776 | ) | (896 | ) | ||||||||
Total deferred tax assets | 122,193 | 170,456 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Software development costs | (163,938 | ) | (130,583 | ) | ||||||||
Depreciation and amortization | (129,684 | ) | (113,492 | ) | ||||||||
Contract and service revenues and costs | (7,511 | ) | — | |||||||||
Other | (3,625 | ) | (2,859 | ) | ||||||||
Total deferred tax liabilities | (304,758 | ) | (246,934 | ) | ||||||||
Net deferred tax liability | $ | (182,565 | ) | $ | (76,478 | ) | ||||||
At the end of 2014, we had net operating loss carry-forwards subject to Section 382 of the Internal Revenue Code for Federal income tax purposes of $5.5 million that are available to offset future Federal taxable income, if any, through 2020. We had net operating loss carry-forwards from foreign jurisdictions of $0.4 million that are available to offset future taxable income, if any, through 2024, $0.7 million that are available to offset future taxable income, if any, through 2033, and $46.8 million that are available to offset future taxable income, if any, with no expiration. We had a deferred tax asset for state net operating loss carry-forwards of $0.8 million which are available to offset future taxable income, if any, through 2034. In addition, we have a state income tax credit carry-forward of $16.0 million available to offset income tax liabilities through 2030. | ||||||||||||
During 2013, we recorded a valuation allowance of $0.9 million against our deferred tax asset for certain foreign net operating losses, generated in prior years, because we concluded that it is not more likely than not that we will generate income of the appropriate character to utilize these losses. We expect to fully utilize all the remaining net operating loss and tax credit carry-forwards in future periods. | ||||||||||||
At the end of 2014, we had not provided tax on the cumulative undistributed earnings of our foreign subsidiaries of approximately $99 million, because it is our intention to reinvest these earnings indefinitely. If these earnings were distributed, we would be subject to U.S. taxes and foreign withholding taxes, net of U.S. foreign tax credits which may be available. The calculation of this unrecognized deferred tax liability is complex and not practicable. | ||||||||||||
The effective income tax rates for 2014, 2013, and 2012 were 32%, 32%, and 32%, respectively. These effective rates differ from the Federal statutory rate of 35% as follows: | ||||||||||||
For the Years Ended | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Tax expense at statutory rates | $ | 270,961 | $ | 205,819 | $ | 205,698 | ||||||
State income tax, net of federal benefit | 15,715 | 17,502 | 13,856 | |||||||||
Tax credits | (20,986 | ) | (18,683 | ) | (1,510 | ) | ||||||
Unrecognized tax benefit (including interest) | 5,538 | (20 | ) | (12,832 | ) | |||||||
Permanent differences | (12,253 | ) | (14,760 | ) | (19,900 | ) | ||||||
Other, net | (10,234 | ) | (158 | ) | 5,164 | |||||||
Total income tax expense | $ | 248,741 | $ | 189,700 | $ | 190,476 | ||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefit is presented below: | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefit - beginning balance | $ | 2,100 | $ | 2,176 | $ | 14,640 | ||||||
Gross decreases - tax positions in prior periods | (804 | ) | (76 | ) | (12,464 | ) | ||||||
Gross increases - tax positions in prior periods | 5,906 | — | — | |||||||||
Unrecognized tax benefit - ending balance | $ | 7,202 | $ | 2,100 | $ | 2,176 | ||||||
If recognized, $5.9 million of the unrecognized tax benefit will favorably impact our effective tax rate. We anticipate that it is reasonably possible that our unrecognized tax benefits will decrease by up to $4 million within the next twelve months due to the potential settlement of examinations and lapse of the statutes of limitations in various taxing jurisdictions. Our federal returns have been examined by the Internal Revenue Service through 2009. Our federal returns for 2010 through 2012 are currently under examination by the Internal Revenue Service. We have various state and foreign returns under examination. | ||||||||||||
The 2014 beginning and ending amounts of accrued interest related to unrecognized tax benefits were $0.2 million and $0.6 million, respectively. We classify interest and penalties as income tax expense in our consolidated statement of operations. No accrual for tax penalties was recorded at the end of the year. | ||||||||||||
The foreign portion of our earnings before income taxes was $68.3 million, $4.5 million, and ($15.4) million in 2014, 2013, and 2012 respectively, and the remaining portion was domestic. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||||||||||||||||||||||
A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Earnings | Shares | Per-Share | Earnings | Shares | Per-Share | Earnings | Shares | Per-Share | |||||||||||||||||||||||||
(In thousands, except per share data) | (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||||
Income available to common shareholders | $ | 525,433 | 342,150 | $ | 1.54 | $ | 398,354 | 343,636 | $ | 1.16 | $ | 397,232 | 341,861 | $ | 1.16 | ||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||
Stock options and non-vested shares | — | 8,236 | — | 8,645 | — | 9,533 | |||||||||||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||||
Income available to common shareholders including assumed conversions | $ | 525,433 | 350,386 | $ | 1.5 | $ | 398,354 | 352,281 | $ | 1.13 | $ | 397,232 | 351,394 | $ | 1.13 | ||||||||||||||||||
Options to purchase 5.7 million, 6.1 million and 4.6 million shares of common stock at per share prices ranging from $44.05 to $66.10, $36.92 to $56.39 and $27.62 to $42.98, were outstanding at the end of 2014, 2013 and 2012, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share-Based Compensation and Equity | Share-Based Compensation and Equity | ||||||||||||
Stock Option and Equity Plans | |||||||||||||
As of the end of 2014, we had five fixed stock option and equity plans in effect for associates and directors. This includes one plan from which we could issue grants, the Cerner Corporation 2011 Omnibus Equity Incentive Plan (the Omnibus Plan); and four plans from which no new grants are permitted, but some awards remain outstanding (Plans D, E, F, and G). | |||||||||||||
Awards under the Omnibus Plan may consist of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, performance grants and bonus shares. At the end of 2014, 8.1 million shares remain available for awards. Stock options granted under the Omnibus Plan are exercisable at a price not less than fair market value on the date of grant. Stock options under the Omnibus Plan typically vest over a period of five years and are exercisable for periods of up to 10 years. | |||||||||||||
Stock Options | |||||||||||||
The fair market value of each stock option award is estimated on the date of grant using a lattice option-pricing model. The pricing model requires the use of the following estimates and assumptions: | |||||||||||||
• | Expected volatilities under the lattice model are based on an equal weighting of implied volatilities from traded options on our shares and historical volatility. We use historical data to estimate the stock option exercise and associate departure behavior used in the lattice model; groups of associates (executives and non-executives) that have similar historical behavior are considered separately for valuation purposes. | ||||||||||||
• | The expected term of stock options granted is derived from the output of the lattice model and represents the period of time that stock options granted are expected to be outstanding. | ||||||||||||
• | The risk-free rate is based on the zero-coupon U.S. Treasury bond with a term equal to the contractual term of the awards. | ||||||||||||
The weighted-average assumptions used to estimate the fair market value of stock options are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected volatility (%) | 29.7 | % | 30.5 | % | 34.8 | % | |||||||
Expected term (yrs) | 9.1 | 9.1 | 9.1 | ||||||||||
Risk-free rate (%) | 2.9 | % | 1.9 | % | 2.1 | % | |||||||
Stock option activity for 2014 was as follows: | |||||||||||||
(In thousands, except per share data) | Number of | Weighted- | Aggregate | Weighted-Average | |||||||||
Shares | Average | Intrinsic | Remaining | ||||||||||
Exercise | Value | Contractual | |||||||||||
Price | Term (Yrs) | ||||||||||||
Outstanding at beginning of year | 24,407 | $ | 22.24 | ||||||||||
Granted | 3,271 | 52.19 | |||||||||||
Exercised | (2,719 | ) | 12.7 | ||||||||||
Forfeited and expired | (330 | ) | 42.31 | ||||||||||
Outstanding at end of year | 24,629 | 27 | $ | 936,584 | 6 | ||||||||
Exercisable at end of year | 14,387 | $ | 14.39 | $ | 728,611 | 4.5 | |||||||
For the Years Ended | |||||||||||||
(In thousands, except for grant date fair values) | 2014 | 2013 | 2012 | ||||||||||
Weighted-average grant date fair values | $ | 22.59 | $ | 19.57 | $ | 18.52 | |||||||
Total intrinsic value of options exercised | $ | 124,828 | $ | 118,051 | $ | 152,117 | |||||||
Cash received from exercise of stock options | 31,879 | 31,403 | 38,147 | ||||||||||
Tax benefit realized upon exercise of stock options | 44,029 | 43,523 | 55,952 | ||||||||||
As of the end of 2014, there was $136.1 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 3.10 years. | |||||||||||||
Non-vested Shares | |||||||||||||
Non-vested shares are valued at fair market value on the date of grant and will vest provided the recipient has continuously served on the Board of Directors through such vesting date or, in the case of an associate, provided that performance measures are attained. The expense associated with these grants is recognized over the period from the date of grant to the vesting date, when achievement of the performance condition is deemed probable. | |||||||||||||
Non-vested share activity for 2014 was as follows: | |||||||||||||
(In thousands, except per share data) | Number of Shares | Weighted-Average | |||||||||||
Grant Date Fair Value | |||||||||||||
Outstanding at beginning of year | 552 | $ | 38.54 | ||||||||||
Granted | 167 | 55.27 | |||||||||||
Vested | (208 | ) | 33.38 | ||||||||||
Forfeited | (5 | ) | 34.48 | ||||||||||
Outstanding at end of year | 506 | $ | 46.21 | ||||||||||
For the Years Ended | |||||||||||||
(In thousands, except for grant date fair values) | 2014 | 2013 | 2012 | ||||||||||
Weighted average grant date fair values for shares granted during the year | $ | 55.27 | $ | 46.66 | $ | 38.28 | |||||||
Total fair value of shares vested during the year | $ | 11,294 | $ | 13,649 | $ | 2,612 | |||||||
As of the end of 2014, there was $11.0 million of total unrecognized compensation cost related to non-vested share awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 1.29 years. | |||||||||||||
Associate Stock Purchase Plan | |||||||||||||
We established an Associate Stock Purchase Plan (ASPP) in 2001, which qualifies under Section 423 of the Internal Revenue Code. Each individual employed by us and associates of our United States based subsidiaries, except as provided below, are eligible to participate in the ASPP (Participants). The following individuals are excluded from participation: (a) persons who, as of the beginning of a purchase period under the Plan, have been continuously employed by us or our domestic subsidiaries for less than two weeks; (b) persons who, as of the beginning of a purchase period, own directly or indirectly, or hold options or rights to acquire under any agreement or Company plan, an aggregate of 5% or more of the total combined voting power or value of all outstanding shares of all classes of Company Common Stock; and, (c) persons who are customarily employed by us for less than 20 hours per week or for less than five months in any calendar year. Participants may elect to make contributions from 1% to 20% of compensation to the ASPP, subject to annual limitations determined by the Internal Revenue Service. Participants may purchase Company Common Stock at a 15% discount on the last business day of the option period. The purchase of Company Common Stock is made through the ASPP on the open market and subsequently reissued to Participants. The difference between the open market purchase and the Participant’s purchase price is recognized as compensation expense, as such difference is paid by Cerner, in cash. | |||||||||||||
Share Based Compensation Cost | |||||||||||||
Our stock option and non-vested share awards qualify for equity classification. The costs of our ASPP, along with participant contributions, are recorded as a liability until open market purchases are completed. The amounts recognized in the consolidated statements of operations with respect to stock options, non-vested shares and ASPP are as follows: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Stock option and non-vested share compensation expense | $ | 59,292 | $ | 46,295 | $ | 36,113 | |||||||
Associate stock purchase plan expense | 4,603 | 3,704 | 2,859 | ||||||||||
Amounts capitalized in software development costs, net of amortization | (930 | ) | (1,045 | ) | (860 | ) | |||||||
Amounts charged against earnings, before income tax benefit | $ | 62,965 | $ | 48,954 | $ | 38,112 | |||||||
Amount of related income tax benefit recognized in earnings | $ | 22,101 | $ | 18,607 | $ | 14,578 | |||||||
Preferred Stock | |||||||||||||
As of the end of 2014 and 2013, we had 1.0 million shares of authorized but unissued preferred stock, $0.01 par value. | |||||||||||||
Treasury Stock | |||||||||||||
In May 2014, our Board of Directors approved an amendment to the stock repurchase program that was authorized in December 2013. Under the amendment, the Company may repurchase shares of our common stock up to an additional $100.0 million. This increase authorizes repurchases of up to $317.0 million, in the aggregate, excluding transaction costs. The repurchases are to be effectuated in the open market, by block purchase, or possibly through other transactions managed by broker-dealers. No time limit was set for completion of the program. | |||||||||||||
During 2014, we repurchased 4.1 million shares for consideration of $217.0 million, excluding transaction costs. These shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. At January 3, 2015, $100.0 million remains available for purchases under the program. | |||||||||||||
In December 2012, our Board of Directors authorized a stock repurchase program of up to $170.0 million, excluding transaction costs, of our common stock. During 2013, we repurchased 3.6 million shares for total consideration of $170.0 million. All of the repurchased shares at the time of our June 2013 stock split were utilized to settle a portion of the stock split distribution. This program is now complete. |
Foundations_Retirement_Plan
Foundations Retirement Plan | 12 Months Ended |
Jan. 03, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Foundations Retirement Plan |
The Cerner Corporation Foundations Retirement Plan (the Plan) was established under Section 401(k) of the Internal Revenue Code. All associates age 18 and older and who are not a member of an excluded class are eligible to participate. Participants may elect to make pretax contributions from 1% to 80% of eligible compensation to the Plan, subject to annual limitations determined by the Internal Revenue Service. Participants may direct contributions into mutual funds, a stable value fund, a Company stock fund, or a self-directed brokerage account. The Plan has a first tier discretionary match that is made on behalf of participants in an amount equal to 33% of the first 6% of the participant’s salary contribution. The Plan's first tier discretionary match expenses amounted to $17.9 million, $14.9 million and $12.3 million for 2014, 2013 and 2012, respectively. | |
We added a second tier discretionary match to the Plan in 2000. Contributions are based on attainment of established earnings per share goals for the year or the established financial metric for the Plan. Participants who defer 2% of their paid base salary, are actively employed as of the last day of the Plan year and are employed before October 1st of the Plan year are eligible to receive the second tier discretionary match contribution. For the years ended 2014, 2013 and 2012 we expensed $4.9 million, $13.5 million and $11.9 million for the second tier discretionary distributions, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Jan. 03, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
Continuous Campus | |
During 2009, as part of our long-term space planning analysis, we determined that we would require additional office space for associates to accommodate our anticipated growth. We evaluated various sites in the Kansas City metropolitan area and negotiated with several different governmental entities regarding available incentives. Upon completion of this review, we decided to proceed with an office development (known as our “Continuous Campus”) in Wyandotte County, Kansas. In order to maximize available incentives, we agreed to pursue the office development in conjunction with the development of an 18,000 seat, multi-sport stadium complex and related recreational athletic complex. | |
The stadium complex was developed by Kansas Unified Development, LLC (the “Developer”), an entity controlled by Neal Patterson, Chairman of the Board of Directors and Chief Executive Officer of the Company, and Clifford Illig, Vice Chairman of the Board of Directors of the Company. Sporting Kansas City (“Sporting KC”) is the principal tenant of the stadium complex. OnGoal LLC (“OnGoal”), the owner of the Sporting KC professional soccer club, is also controlled by Messrs. Patterson and Illig. | |
The Company currently estimates it will receive incentives in the aggregate of $82.0 million from the Developer, the Unified Government of Wyandotte County/Kansas City, Kansas (the “Unified Government”) and the Kansas Department of Commerce. Components of the $82.0 million of incentives are described below: | |
Cash Grants - In January 2014 we received $48.0 million of cash grants from the Kansas Department of Commerce for project costs. The State of Kansas has issued bonds in order to fund these incentives and has incurred costs of issuance and debt service obligations. As consideration for the grant, we made certain new job and state payroll tax withholding commitments. Should aggregate state payroll tax withholdings (related to associates at our Continuous Campus) over a 10-year period commencing in January 2014 be less than $51.9 million (the $48.0 million of cash we received plus amounts representing debt service costs incurred by the State of Kansas), we would be required to repay the shortfall. The $51.9 million maximum repayment amount will be adjusted up or down during the 10-year period, based on any future change to Kansas payroll tax withholding rates. | |
Under a separate agreement, the Developer and OnGoal have agreed to be responsible for certain shortfall payments that may become due. If no payment from Developer or OnGoal becomes due at the end of the 10-year period, the Developer or OnGoal will pay us a success fee of $4.0 million. | |
We recorded the cash grants as an obligation/liability at $48.0 million, upon receipt in January 2014. Over time this liability will accrete, utilizing the effective interest method, up to the maximum repayment amount, offset by reductions based on actual state payroll tax withholdings generated by our Continuous Campus associates. This activity is recognized as a component of operating expense as it occurs over a period not to exceed 10 years. At the end of 2014, the obligation/liability balance was $43.0 million, the majority of which is included in deferred income taxes and other liabilities in our consolidated balance sheets. | |
Sales Tax Exemptions - We have received a sales tax exemption on materials and other fixed assets purchased in connection with the construction. As such, we will not be required to remit an aggregate of $11.5 million of sales tax on these capital purchases. | |
State Income Tax Credits - We expect state income tax credits to aggregate $18.5 million. Such credits are available to offset our Kansas state income tax in the future, and will be recognized as a reduction of income tax expense as we are eligible to claim them. | |
Land - We acquired the land for our Continuous Campus from the Unified Government with certain contingencies upon which the office complex was being constructed. The purchase price of the land, equal to the site’s fair market value, is being paid by the Developer. In the second quarter of 2012, we commenced vertical construction on the office development, which resolved contingencies and the land contributed to the Company from the Unified Government was recorded at its $4.0 million appraisal value. | |
In 2012, we contracted with GRAND Construction, LLC (“Grand”), a limited liability company owned in part by an entity controlled by Messrs. Patterson and Illig, to coordinate, supervise, schedule and assist with managing the development, design and construction of our Continuous Campus. Under the agreement, we paid Grand $0.4 million, $1.4 million, and $1.4 million in 2014, 2013, and 2012, respectively. This contract was completed in 2014. | |
We also paid Grand $0.3 million in both 2013 and 2012 for separate projects to make improvements to parking facilities utilized by one of our other office campuses. | |
Trails Campus Development | |
In December 2013, we purchased approximately 237 acres of land located in Kansas City, Missouri, from Trails Properties II, Inc. (“Trails”), for $42.5 million. Trails is an entity controlled by Messrs. Patterson and Illig. The property (currently known as our "Trails Campus") was acquired as a site for future office space development to further accommodate our anticipated growth. Construction on the Trails Campus began in November 2014. | |
In December 2014, we contracted with Grand to coordinate, supervise, schedule and assist with managing the development, design and construction of the first two phases of our Trails Campus. Under the agreement, we expect to pay Grand $3.6 million over a period estimated at two years. |
Commitments
Commitments | 12 Months Ended | |||
Jan. 03, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies Disclosure [Text Block] | Commitments | |||
Leases | ||||
We are committed under operating leases primarily for office and data center space and computer equipment through October 2027. Rent expense for office and warehouse space for our regional and global offices for 2014, 2013 and 2012 was $25.1 million, $20.0 million and $18.1 million, respectively. Aggregate minimum future payments under these non-cancelable operating leases are as follows: | ||||
(In thousands) | Operating Lease Obligations | |||
2015 | $ | 23,525 | ||
2016 | 21,693 | |||
2017 | 21,467 | |||
2018 | 19,294 | |||
2019 | 14,984 | |||
2020 and thereafter | 39,607 | |||
$ | 140,570 | |||
Other Obligations | ||||
We have purchase commitments with various vendors, and minimum funding commitments under collaboration agreements through 2023. Aggregate future payments under these commitments are as follows: | ||||
(In thousands) | Purchase Obligations | |||
2015 | $ | 42,300 | ||
2016 | 23,481 | |||
2017 | 6,762 | |||
2018 | 4,345 | |||
2019 | 4,001 | |||
2020 and thereafter | 8,000 | |||
$ | 88,889 | |||
Siemens Innovation Alliance | ||||
Concurrently with the execution of the MSPA, we entered into an agreement with Siemens to create a strategic alliance to jointly invest in innovative projects that integrate health information technology with medical technologies for the purpose of enhancing workflows and improving clinical outcomes. Each company will contribute up to $50.0 million to fund projects of shared importance to both companies and their clients, over an initial term of three years, commencing on February 2, 2015. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Reporting | Segment Reporting | |||||||||||||||
We have two operating segments, Domestic and Global. Our Chief Executive Officer is our chief operating decision maker ("CODM"). Revenues are derived primarily from the sale of clinical, financial and administrative information systems and solutions. 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, communications expenses and unreimbursed travel expenses. “Other” includes expenses that have not been allocated to the operating segments, such as software development, marketing, general and administrative (including the settlement charge discussed in Note (11)), acquisition costs, share-based compensation expense and depreciation. Performance of the segments is assessed at the operating earnings level and, therefore, the segment operations have been presented as such, as our CODM reviews segment performance exclusive of these charges. 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 2014, 2013 and 2012: | ||||||||||||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 3,021,790 | $ | 380,913 | $ | — | $ | 3,402,703 | ||||||||
Cost of revenues | 542,210 | 62,167 | — | 604,377 | ||||||||||||
Operating expenses | 677,817 | 131,096 | 1,226,329 | 2,035,242 | ||||||||||||
Total costs and expenses | 1,220,027 | 193,263 | 1,226,329 | 2,639,619 | ||||||||||||
Operating earnings (loss) | $ | 1,801,763 | $ | 187,650 | $ | (1,226,329 | ) | $ | 763,084 | |||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 2,550,115 | $ | 360,633 | $ | — | $ | 2,910,748 | ||||||||
Cost of revenues | 458,540 | 56,182 | — | 514,722 | ||||||||||||
Operating expenses | 600,341 | 115,281 | 1,104,392 | 1,820,014 | ||||||||||||
Total costs and expenses | 1,058,881 | 171,463 | 1,104,392 | 2,334,736 | ||||||||||||
Operating earnings (loss) | $ | 1,491,234 | $ | 189,170 | $ | (1,104,392 | ) | $ | 576,012 | |||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
2012 | ||||||||||||||||
Revenues | $ | 2,341,304 | $ | 324,132 | $ | — | $ | 2,665,436 | ||||||||
Cost of revenues | 548,813 | 59,384 | — | 608,197 | ||||||||||||
Operating expenses | 506,249 | 131,580 | 847,748 | 1,485,577 | ||||||||||||
Total costs and expenses | 1,055,062 | 190,964 | 847,748 | 2,093,774 | ||||||||||||
Operating earnings (loss) | $ | 1,286,242 | $ | 133,168 | $ | (847,748 | ) | $ | 571,662 | |||||||
Quarterly_Results
Quarterly Results | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Quarterly Results | Quarterly Results (unaudited) | |||||||||||||||||||
Selected quarterly financial data for 2014 and 2013 is set forth below: | ||||||||||||||||||||
(In thousands, except per share data) | Revenues | Earnings Before Income Taxes | Net Earnings | Basic Earnings Per Share | Diluted Earnings Per Share | |||||||||||||||
2014 quarterly results: | ||||||||||||||||||||
First Quarter | $ | 784,761 | $ | 180,993 | $ | 119,526 | $ | 0.35 | $ | 0.34 | ||||||||||
Second Quarter | 851,762 | 194,370 | 129,033 | 0.38 | 0.37 | |||||||||||||||
Third Quarter (a) | 840,149 | 190,335 | 129,002 | 0.38 | 0.37 | |||||||||||||||
Fourth Quarter (a) | 926,031 | 208,476 | 147,872 | 0.43 | 0.42 | |||||||||||||||
Total | $ | 3,402,703 | $ | 774,174 | $ | 525,433 | ||||||||||||||
(a) Third and Fourth quarter results include pre-tax acquisition costs of $9.4 million and $6.4 million, respectively, as further described in Note (2). | ||||||||||||||||||||
(In thousands, except per share data) | Revenues | Earnings Before Income Taxes | Net Earnings | Basic Earnings Per Share | Diluted Earnings Per Share | |||||||||||||||
2013 quarterly results: | ||||||||||||||||||||
First Quarter | $ | 680,029 | $ | 159,613 | $ | 110,040 | $ | 0.32 | $ | 0.31 | ||||||||||
Second Quarter | 707,561 | 169,189 | 112,907 | 0.33 | 0.32 | |||||||||||||||
Third Quarter | 727,830 | 172,747 | 115,344 | 0.34 | 0.33 | |||||||||||||||
Fourth Quarter (b) | 795,328 | 86,505 | 60,063 | 0.17 | 0.17 | |||||||||||||||
Total | $ | 2,910,748 | $ | 588,054 | $ | 398,354 | ||||||||||||||
(b) Fourth quarter results include a pre-tax settlement charge of $106.2 million, as further described in Note (11). |
Schedule_II
Schedule II | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II | ||||||||||||||||
CERNER CORPORATION | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
For the years ended January 3, 2015, December 28, 2013 and December 29, 2012 | |||||||||||||||||
(In thousands) | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Through Acquisitions | Deductions(a) | Balance at End of Period | ||||||||||||
Description | |||||||||||||||||
2012 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 24,270 | 13,483 | 8 | (4,531 | ) | $ | 33,230 | |||||||||
2013 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 33,230 | 6,954 | 489 | (4,387 | ) | $ | 36,286 | |||||||||
2014 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 36,286 | 5,274 | — | (16,029 | ) | $ | 25,531 | |||||||||
(a) Deductions in 2014 include a $13.9 million reclassification to other non-current assets. | |||||||||||||||||
See accompanying report of independent registered public accounting firm. |
Basis_of_Presentation_Nature_o1
Basis of Presentation, Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Jan. 03, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The consolidated financial statements include all the accounts of Cerner Corporation (Cerner, the Company, we, us or our) and its subsidiaries. All significant intercompany transactions have been eliminated in consolidation. | ||
The consolidated financial statements were prepared using accounting principles generally accepted in the United States. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. | ||
Our fiscal year ends on the Saturday closest to December 31. Fiscal year 2014 consisted of 53 weeks and ended on January 3, 2015, and fiscal years 2013 and 2012 consisted of 52 weeks each and ended on December 28, 2013 and December 29, 2012, respectively. All references to years in these notes to consolidated financial statements represent fiscal years unless otherwise noted. | ||
Nature of Operations | Nature of Operations | |
We design, develop, market, install, host and support health care information technology, health care devices, hardware and content solutions for health care organizations and consumers. We also provide a wide range of value-added services, including implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third party administrator services for employer-based health plans. | ||
Revenue Recognition | Revenue Recognition - We recognize software related revenue in accordance with the provisions of Accounting Standards Codification (ASC) 985-605, Software – Revenue Recognition and non-software related revenue in accordance with ASC 605, Revenue Recognition. In general, revenue is recognized when all of the following criteria have been met: | |
• | Persuasive evidence of an arrangement exists; | |
• | Delivery has occurred or services have been rendered; | |
• | Our fee is fixed or determinable; and | |
• | Collection of the revenue is reasonably assured. | |
The following are our major components of revenue: | ||
• | System sales – includes the licensing of computer software, software as a service, deployment period upgrades, installation, content subscriptions, transaction processing and the sale of computer hardware and sublicensed software; | |
• | Support, maintenance and service – includes software support and hardware maintenance, remote hosting and managed services, training, consulting and implementation services; and | |
• | Reimbursed travel – includes reimbursable out-of-pocket expenses (primarily travel) incurred in connection with our client service activities. | |
We provide for several models of procurement of our information systems and related services. The predominant model involves multiple deliverables and includes a perpetual software license agreement, project-related installation services, implementation and consulting services, software support and either hosting services or computer hardware and sublicensed software, which requires that we allocate revenue to each of these elements. | ||
Allocation of Revenue to Multiple Element Arrangements | ||
For multiple element arrangements that contain software and non-software elements, we allocate revenue to software and software-related elements as a group and any non-software element separately. After the arrangement consideration has been allocated to the non-software elements, revenue is recognized when the basic revenue recognition criteria are met for each element. For the group of software and software-related elements, revenue is recognized under the guidance applicable to software transactions. | ||
Since we do not have vendor specific objective evidence (VSOE) of fair value on software licenses within our multiple element arrangements, we recognize revenue on our software and software-related elements using the residual method. Under the residual method, license revenue is recognized in a multiple-element arrangement when vendor-specific objective evidence of fair value exists for all of the undelivered elements in the arrangement, when software is delivered, installed and all other conditions to revenue recognition are met. We allocate revenue to each undelivered element in a multiple-element arrangement based on the element’s respective fair value, with the fair value determined by the price charged when that element is sold separately. Specifically, we determine the fair value of the software support, hardware maintenance, sublicensed software support, remote hosting, subscriptions and software as a service portions of the arrangement based on the substantive renewal price for these services charged to clients; professional services (including training and consulting) portion of the arrangement, other than installation services, based on hourly rates which we charge for these services when sold apart from a software license; and sublicensed software based on its price when sold separately from the software. The residual amount of the fee after allocating revenue to the fair value of the undelivered elements is attributed to the licenses for software solutions, including project-related installation services. If evidence of the fair value cannot be established for the undelivered elements of a license agreement using VSOE, the entire amount of revenue under the arrangement is deferred until these elements have been delivered or VSOE of fair value can be established. | ||
We also enter into arrangements that include multiple non-software deliverables. For each element in a multiple element arrangement that does not contain software-related elements to be accounted for as a separate unit of accounting, the following must be met: the delivered products or services have value to the client on a stand-alone basis; and for an arrangement that includes a general right of return relative to the delivered products or services, delivery or performance of the undelivered product or service is considered probable and is substantially controlled by the Company. We allocate the arrangement consideration to each element based on the selling price hierarchy of VSOE of fair value, if it exists, or third-party evidence (TPE) of selling price. If neither VSOE nor TPE are available, we use estimated selling price. After the arrangement consideration has been allocated to the elements, we account for each respective element in the arrangement as described below. | ||
For certain arrangements, revenue for software, implementation services and, in certain cases, support services for which VSOE of fair value cannot be established are accounted for as a single unit of accounting. The revenue recognized from single units of accounting are typically allocated and classified as system sales and support, maintenance and services. If available, the VSOE of fair value of the services provides the basis for support, maintenance and services allocation, and the remaining residual consideration provides the basis for system sales revenue allocations. In cases where VSOE cannot be established, revenue is classified based on the nature of related costs incurred. | ||
Revenue Recognition Policies for Each Element | ||
We provide project-related installation services when licensing our software solutions, which include project-scoping services, conducting pre-installation audits and creating initial environments. We have deemed installation services to be essential to the functionality of the software and, therefore, recognize the software license over the software installation period using the percentage-of-completion method. We measure the percentage-of-completion based on output measures that reflect direct labor hours incurred, beginning at software delivery and culminating at completion of installation. Installation generally occurs in the same period the contracts are executed but in the past has been extended over a longer period of time depending on client specific factors. | ||
We provide implementation and consulting services. These services vary depending on the scope and complexity of the engagement. Examples of such services may include database consulting, system configuration, project management, testing assistance, network consulting, post conversion review and application management services. Except for limited arrangements where our software requires significant modifications or customization, implementation and consulting services generally are not deemed to be essential to the functionality of the software and, thus, do not impact the timing of the software license recognition. However, if software license fees are tied to implementation milestones, then the portion of the software license fee tied to implementation milestones is deferred until the related milestone is accomplished and related fees become due and payable and non-forfeitable. Implementation fees are recognized over the service period, which may extend from nine months to several years for multi-phased projects. | ||
Remote hosting and managed services are marketed under long-term arrangements generally over periods of five to 10 years. These services are typically provided to clients that have acquired a perpetual license for licensed software and have contracted with us to host the software in our data center. Under these arrangements, the client generally has the contractual right to take possession of the licensed software at any time during the hosting period without significant penalty and it is feasible for the client to either run the software on its own equipment or contract with another party unrelated to us to host the software. Additionally, these services are not deemed to be essential to the functionality of the licensed software or other elements of the arrangement and as such, we allocate a portion of the services fee to the software and recognize it once the client has the ability to take possession of the software. The remaining services fee in these arrangements, as well as the services fee for arrangements where the client does not have the contractual right or the ability to take possession of the software at any time, is generally recognized ratably over the hosting service period. | ||
We also offer our solutions on a software as a service model, providing time-based licenses for our software solutions available within an environment that we manage from our data centers. The data centers provide system and administrative support as well as processing services. Revenue on these services is combined and recognized on a monthly basis over the term of the contract. We capitalize related pre-contract direct set-up costs consisting of third party costs and direct software installation and implementation costs associated with the initial set up of a software as a service client. These costs are amortized over the term of the arrangement. | ||
Software support fees are marketed under annual and multi-year arrangements and are recognized as revenue ratably over the contractual support term. Hardware and sublicensed software maintenance revenues are recognized ratably over the contractual maintenance term. | ||
Subscription and content fees are generally marketed under annual and multi-year agreements and are recognized ratably over the contractual terms. | ||
Hardware and sublicensed software sales are generally recognized when title and risk of loss have transferred to the client. | ||
The sale of equipment under sales-type leases is recorded as system sales revenue at the inception of the lease. Sales-type leases also produce financing income, which is included in system sales revenue and is recognized at consistent rates of return over the lease term. | ||
Where we have contractually agreed to develop new or customized software code for a client, we utilize percentage-of-completion accounting, labor-hours method. | ||
Revenue generally is recognized net of any taxes collected from clients and subsequently remitted to governmental authorities. | ||
Payment Arrangements | ||
Our payment arrangements with clients typically include an initial payment due upon contract signing and date-based licensed software payment terms and payments based upon delivery for services, hardware and sublicensed software. Revenue recognition on support payments received in advance of the services being performed are deferred and classified as either current or long term deferred revenue depending on whether the revenue will be earned within one year. | ||
We have periodically provided long-term financing options to creditworthy clients through third party financing institutions and have directly provided extended payment terms to clients from contract date. These extended payment term arrangements typically provide for date based payments over periods ranging from 12 months up to seven years. As a significant portion of the fee is due beyond one year, we have analyzed our history with these types of arrangements and have concluded that we have a standard business practice of using extended payment term arrangements and a long history of successfully collecting under the original payment terms for arrangements with similar clients, product offerings, and economics without granting concessions. Accordingly, we consider the fee to be fixed and determinable in these extended payment term arrangements and, thus, the timing of revenue is not impacted by the existence of extended payments. | ||
Some of these payment streams have been assigned on a non-recourse basis to third party financing institutions. We account for the assignment of these receivables as sales of financial assets. Provided all revenue recognition criteria have been met, we recognize revenue for these arrangements under our normal revenue recognition criteria, and if appropriate, net of any payment discounts from financing transactions. | ||
Cash Equivalents | Cash Equivalents - Cash equivalents consist of short-term marketable securities with original maturities less than 90 days. | |
Investments | Investments – Our short-term investments are primarily invested in time deposits, commercial paper, government and corporate bonds, with maturities of less than one year. Our long-term investments are primarily invested in government and corporate bonds with maturities of less than two years. All of our investments, other than a small portion accounted for under the cost and equity methods, are classified as available-for-sale. | |
Available-for-sale securities are recorded at fair value with the unrealized gains and losses reflected in accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. | ||
We regularly review investment securities for impairment based on both quantitative and qualitative criteria that include the extent to which cost exceeds fair value, the duration of any market decline, and the financial health of and specific prospects for the issuer. Unrealized losses that are other than temporary are recognized in earnings. | ||
Premiums are amortized and discounts are accreted over the life of the security as adjustments to interest income for our investments. Interest income is recognized when earned. | ||
Refer to Note (3) and Note (4) for further description of these assets and their fair value. | ||
Concentrations | Concentrations - The majority of our cash and cash equivalents are held at three major financial institutions. The majority of our cash equivalents consist of money market funds and commercial paper. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally these deposits may be redeemed upon demand. | |
As of the end of 2014, we had a significant concentration of receivables owed to us by Fujitsu Services Limited, which are currently in dispute. Refer to Note (5) for additional information. | ||
Inventory | Inventory - Inventory consists primarily of computer hardware and sublicensed software, held for resale. Inventory is recorded at the lower of cost (first-in, first-out) or market. | |
Property and Equipment | Property and Equipment - We account for property and equipment in accordance with ASC 360, Property, Plant, and Equipment. Property, equipment and leasehold improvements are stated at cost. Depreciation of property and equipment is computed using the straight-line method over periods of one to 50 years. Amortization of leasehold improvements is computed using a straight-line method over the shorter of the lease terms or the useful lives, which range from periods of one to 15 years. | |
Software Development Costs | Software Development Costs - Software development costs are accounted for in accordance with ASC 985-20, Costs of Software to be Sold, Leased or Marketed. Software development costs incurred internally in creating computer software products are expensed until technological feasibility has been established upon completion of a detailed program design. Thereafter, all software development costs incurred through the software’s general release date are capitalized and subsequently reported at the lower of amortized cost or net realizable value. Capitalized costs are amortized based on current and expected future revenue for each software solution with minimum annual amortization equal to the straight-line amortization over the estimated economic life of the solution. We amortize capitalized software development costs over five years. | |
Goodwill | Goodwill - We account for goodwill under the provisions of ASC 350, Intangibles – Goodwill and Other. Goodwill is not amortized but is evaluated for impairment annually or whenever there is an impairment indicator. All goodwill is assigned to a reporting unit, where it is subject to an annual impairment assessment. Based on these evaluations, there was no impairment of goodwill in 2014, 2013 or 2012. Refer to Note (7) for more information on goodwill and other intangible assets. | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities - We account for our hedging activities in accordance with ASC 815, Derivatives and Hedging. Historically, our use of hedging instruments has primarily been to hedge foreign currency denominated assets and liabilities. We record all hedging instruments on our consolidated balance sheets at fair value. For hedging instruments that are designated and qualify as a net investment hedge, the effective portion of the gain or loss on the hedging instrument is reported in the foreign currency translation component of other comprehensive income (loss). Any ineffective portion of the gain or loss on the hedging instrument is recorded in the results of operations immediately. Refer to Note (10) for more information on our hedging activities. | |
Income Taxes | Income Taxes - Income taxes are accounted for in accordance with ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Refer to Note (13) for additional information regarding income taxes. | |
Earnings per Common Share | Earnings per Common Share - Basic earnings per share (EPS) excludes dilution and is computed, in accordance with ASC 260, Earnings Per Share, by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. Refer to Note (14) for additional details of our earnings per share computations. | |
Accounting for Share-based Payments | Accounting for Share-based Payments - We recognize all share-based payments to associates, directors and consultants, including grants of stock options, restricted stock and performance shares, in the financial statements as compensation cost based on their fair value on the date of grant, in accordance with ASC 718, Compensation-Stock Compensation. This compensation cost is recognized over the vesting period on a straight-line basis for the fair value of awards that actually vest. Refer to Note (15) for a detailed discussion of share-based payments. | |
Foreign Currency | Foreign Currency - In accordance with ASC 830, Foreign Currency Matters, assets and liabilities of non-U.S. subsidiaries whose functional currency is the local currency are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Revenues and expenses are translated at average exchange rates during the year. The net exchange differences resulting from these translations are reported in accumulated other comprehensive income. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. | |
Collaborative Arrangements | Collaborative Arrangements - In accordance with ASC 808, Collaborative Arrangements, third party costs incurred and revenues generated by arrangements involving joint operating activities of two or more parties that are each actively involved and exposed to risks and rewards of the activities are classified in the consolidated statements of operations on a gross basis only if we are determined to be the principal participant in the arrangement. Otherwise, third party revenues and costs generated by collaborative arrangements are presented on a net basis. Payments between participants are recorded and classified based on the nature of the payments. | |
Recently Issued Accounting Pronouncements | ) Recently Issued Accounting Pronouncements | |
Revenue Recognition. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. This new guidance is effective for the Company in the first quarter of 2017, with no early adoption permitted. The standard permits the use of either the retrospective or cumulative effect transition method. At this time we have not selected a transition method. We are currently evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. |
Contingencies_Details_Policies
Contingencies Details (Policies) | 12 Months Ended |
Jan. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy [Policy Text Block] | We accrue estimates for resolution of any legal and other contingencies when losses are probable and estimable, in accordance with ASC 450, Contingencies. |
The terms of our software license agreements with our clients generally provide for a limited indemnification of such clients against losses, expenses and liabilities arising from third party claims based on alleged infringement by our solutions of an intellectual property right of such third party. The terms of such indemnification often limit the scope of and remedies for such indemnification obligations and generally include a right to replace or modify an infringing solution. To date, we have not had to reimburse any of our clients for any losses related to these indemnification provisions pertaining to third party intellectual property infringement claims. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the terms of the corresponding agreements with our clients, we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. | |
In addition to commitments and obligations in the ordinary course of business, we are subject to various legal proceedings and claims, including for example, employment disputes and litigation alleging solution defects, personal injury, intellectual property infringement, violations of law and breaches of contract and warranties. Many of these proceedings are at preliminary stages and many seek an indeterminate amount of damages. | |
No less than quarterly, we review the status of each significant matter and assess our potential financial exposure. We accrue a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to our management at the time the judgment is made. Furthermore, the outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters. Should any one or a combination of more than one of these proceedings be successful, or should we determine to settle any or a combination of these matters, we may be required to pay substantial sums, become subject to the entry of an injunction or be forced to change the manner in which we operate our business, which could have a material adverse impact on our financial position or results of operations. |
Investments_Investments_Tables
Investments Investments (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Investments [Abstract] | |||||||||||||||||
Schedule of available-for-sale investments | Available-for-sale investments at the end of 2014 were as follows: | ||||||||||||||||
(In thousands) | Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 189,137 | $ | — | $ | — | $ | 189,137 | |||||||||
Time deposits | 9,989 | — | — | 9,989 | |||||||||||||
Commercial Paper | 115,638 | — | — | 115,638 | |||||||||||||
Total cash equivalents | 314,764 | — | — | 314,764 | |||||||||||||
Short-term investments: | |||||||||||||||||
Time deposits | 52,830 | — | (1 | ) | 52,829 | ||||||||||||
Commercial paper | 435,555 | 1 | (12 | ) | 435,544 | ||||||||||||
Government and corporate bonds | 297,311 | 69 | (90 | ) | 297,290 | ||||||||||||
Total short-term investments | 785,696 | 70 | (103 | ) | 785,663 | ||||||||||||
Long-term investments: | |||||||||||||||||
Government and corporate bonds | 219,439 | 26 | (500 | ) | 218,965 | ||||||||||||
Total available-for-sale investments | $ | 1,319,899 | $ | 96 | $ | (603 | ) | $ | 1,319,392 | ||||||||
Available-for-sale investments at the end of 2013 were as follows: | |||||||||||||||||
(In thousands) | Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 57,254 | $ | — | $ | — | $ | 57,254 | |||||||||
Time deposits | 7,771 | — | — | 7,771 | |||||||||||||
Commercial Paper | 3,000 | — | — | 3,000 | |||||||||||||
Government and corporate bonds | 410 | — | — | 410 | |||||||||||||
Total cash equivalents | 68,435 | — | — | 68,435 | |||||||||||||
Short-term investments: | |||||||||||||||||
Time deposits | 70,303 | 12 | — | 70,315 | |||||||||||||
Commercial paper | 33,750 | 1 | (9 | ) | 33,742 | ||||||||||||
Government and corporate bonds | 572,670 | 356 | (79 | ) | 572,947 | ||||||||||||
Total short-term investments | 676,723 | 369 | (88 | ) | 677,004 | ||||||||||||
Long-term investments: | |||||||||||||||||
Government and corporate bonds | 542,644 | 346 | (279 | ) | 542,711 | ||||||||||||
Total available-for-sale investments | $ | 1,287,802 | $ | 715 | $ | (367 | ) | $ | 1,288,150 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||
Jan. 03, 2015 | |||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table details our financial assets measured and recorded at fair value on a recurring basis at the end of 2014: | ||||||||||||||
(In thousands) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Description | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | Cash equivalents | $ | 189,137 | $ | — | $ | — | ||||||||
Time deposits | Cash equivalents | — | 9,989 | — | |||||||||||
Commercial paper | Cash equivalents | — | 115,638 | — | |||||||||||
Time deposits | Short-term investments | — | 52,829 | — | |||||||||||
Commercial paper | Short-term investments | — | 435,544 | — | |||||||||||
Government and corporate bonds | Short-term investments | — | 297,290 | — | |||||||||||
Government and corporate bonds | Long-term investments | — | 218,965 | — | |||||||||||
The following table details our financial assets measured and recorded at fair value on a recurring basis at the end of 2013: | |||||||||||||||
(In thousands) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Description | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | Cash equivalents | $ | 57,254 | $ | — | $ | — | ||||||||
Time deposits | Cash equivalents | — | 7,771 | — | |||||||||||
Commercial paper | Cash equivalents | — | 3,000 | — | |||||||||||
Government and corporate bonds | Cash equivalents | — | 410 | — | |||||||||||
Time deposits | Short-term investments | — | 70,315 | — | |||||||||||
Commercial paper | Short-term investments | — | 33,742 | — | |||||||||||
Government and corporate bonds | Short-term investments | — | 572,947 | — | |||||||||||
Government and corporate bonds | Long-term investments | — | 542,711 | — | |||||||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Summary of Net Receivables | A summary of net receivables is as follows: | |||||||
(In thousands) | 2014 | 2013 | ||||||
Gross accounts receivable | $ | 641,160 | $ | 583,312 | ||||
Less: Allowance for doubtful accounts | 25,531 | 36,286 | ||||||
Accounts receivable, net of allowance | 615,629 | 547,026 | ||||||
Current portion of lease receivables | 57,149 | 35,900 | ||||||
Total receivables, net | $ | 672,778 | $ | 582,926 | ||||
Schedule of Sales-Type Leases | The components of our net investment in sales-type leases are as follows: | |||||||
(In thousands) | 2014 | 2013 | ||||||
Minimum lease payments receivable | $ | 125,906 | $ | 146,566 | ||||
Less: Unearned income | 6,089 | 7,602 | ||||||
Total lease receivables | 119,817 | 138,964 | ||||||
Less: Long-term receivables included in other assets | 62,668 | 103,064 | ||||||
Current portion of lease receivables | $ | 57,149 | $ | 35,900 | ||||
Schedule of Future Minimum Lease Payments to be Received Under Existing Sales-Type Leases | Future minimum lease payments to be received under existing sales-type leases for the next five years are as follows: | |||||||
(In thousands) | ||||||||
2015 | $ | 60,198 | ||||||
2016 | 36,259 | |||||||
2017 | 20,293 | |||||||
2018 | 6,986 | |||||||
2019 | 2,170 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Property and Equipment | A summary of property, equipment and leasehold improvements stated at cost, less accumulated depreciation and amortization, is as follows: | |||||||||||
(In thousands) | Depreciable Lives (Yrs) | 2014 | 2013 | |||||||||
Computer and communications equipment | 1 | — | 5 | $ | 1,137,497 | $ | 963,301 | |||||
Land, buildings and improvements | 12 | — | 50 | 439,567 | 411,382 | |||||||
Leasehold improvements | 1 | — | 15 | 187,351 | 160,030 | |||||||
Furniture and fixtures | 5 | — | 12 | 96,244 | 72,601 | |||||||
Capital lease equipment | 3 | — | 5 | 3,196 | 3,207 | |||||||
Other equipment | 3 | — | 20 | 915 | 710 | |||||||
1,864,770 | 1,611,231 | |||||||||||
Less accumulated depreciation and leasehold amortization | 940,510 | 818,450 | ||||||||||
Total property and equipment, net | $ | 924,260 | $ | 792,781 | ||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Changes in Carrying Amounts of Goodwill | The changes in the carrying amounts of goodwill were as follows: | |||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||
Beginning Balance | $ | 307,422 | $ | 247,616 | ||||||||||||
Goodwill recorded in connection with business acquisitions | 16,757 | 59,570 | ||||||||||||||
Foreign currency translation adjustment and other | (3,641 | ) | 236 | |||||||||||||
Ending Balance | $ | 320,538 | $ | 307,422 | ||||||||||||
Schedule of Finite-Lived Intangible Assets | Our intangible assets subject to amortization are amortized on a straight-line basis, and are summarized as follows: | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Purchased software | $ | 169,703 | $ | 110,344 | $ | 168,798 | $ | 89,691 | ||||||||
Customer lists | 100,681 | 73,637 | 100,909 | 68,094 | ||||||||||||
Other | 68,859 | 28,626 | 45,915 | 13,705 | ||||||||||||
Total | $ | 339,243 | $ | 212,607 | $ | 315,622 | $ | 171,490 | ||||||||
Intangible assets, net | $ | 126,636 | $ | 144,132 | ||||||||||||
Schedule of Finite-Lived Intangible Asets, Future Amortization Expense | Estimated aggregate amortization expense for each of the next five years is as follows: | |||||||||||||||
(In thousands) | ||||||||||||||||
2015 | $ | 34,048 | ||||||||||||||
2016 | 29,359 | |||||||||||||||
2017 | 22,651 | |||||||||||||||
2018 | 8,494 | |||||||||||||||
2019 | 5,208 | |||||||||||||||
Software_Development_Costs_Tab
Software Development Costs (Tables) | 12 Months Ended | |||||||||
Jan. 03, 2015 | ||||||||||
Research and Development [Abstract] | ||||||||||
Schedule of Software Development Costs | Information regarding our software development costs is included in the following table: | |||||||||
For the Years Ended | ||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||
Software development costs | $ | 467,158 | $ | 418,747 | $ | 319,828 | ||||
Capitalized software development costs | (177,800 | ) | (174,649 | ) | (100,189 | ) | ||||
Amortization of capitalized software development costs | 103,447 | 94,688 | 81,731 | |||||||
Total software development expense | $ | 392,805 | $ | 338,786 | $ | 301,370 | ||||
Indebtedness_Tables
Indebtedness (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Indebtedness Outstanding | The following is a summary of indebtedness outstanding: | |||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||||
Note agreement, 5.54% | $ | 14,233 | $ | 30,608 | ||||||||||||||||
Capital lease obligations | 116,095 | 135,216 | ||||||||||||||||||
Total debt and capital lease obligations | 130,328 | 165,824 | ||||||||||||||||||
Less: current portion | (67,460 | ) | (54,107 | ) | ||||||||||||||||
Long-term debt and capital lease obligations | $ | 62,868 | $ | 111,717 | ||||||||||||||||
Schedule of Minimum Annual Payments Under Capital Lease Obligation and Maturities of Indebtedness | Minimum annual payments under existing capital lease obligations and maturities of indebtedness outstanding at the end of 2014 are as follows: | |||||||||||||||||||
Capital Lease Obligations | ||||||||||||||||||||
(In thousands) | Minimum Lease Payments | Less: Interest | Principal | Principal Amount of Indebtedness | Total | |||||||||||||||
2015 | $ | 55,968 | $ | 2,741 | $ | 53,227 | $ | 14,233 | $ | 67,460 | ||||||||||
2016 | 35,968 | 1,458 | 34,510 | — | 34,510 | |||||||||||||||
2017 | 20,052 | 530 | 19,522 | — | 19,522 | |||||||||||||||
2018 | 6,877 | 156 | 6,721 | — | 6,721 | |||||||||||||||
2019 | 2,137 | 22 | 2,115 | — | 2,115 | |||||||||||||||
Total | $ | 121,002 | $ | 4,907 | $ | 116,095 | $ | 14,233 | $ | 130,328 | ||||||||||
Hedging_Activities_Tables
Hedging Activities (Tables) | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Fair Value Of Net Investment Hedge Within Condensed Consolidated Balance Sheets And Unrealized Gain Or Loss | The following tables represent the fair value of our net investment hedge included within the consolidated balance sheets and the related unrealized gain or loss, net of related income tax effects, on the net investment hedge recognized in comprehensive income: | ||||||||
(In thousands) | 2014 | ||||||||
Derivatives Designated | Balance Sheet Classification | Fair Value | Net Unrealized Gain | ||||||
Total net investment hedge | Short-term liabilities | $ | 14,233 | $ | 929 | ||||
(In thousands) | 2013 | ||||||||
Derivatives Designated | Balance Sheet Classification | Fair Value | Net Unrealized Loss | ||||||
Net investment hedge | Short-term liabilities | $ | 15,304 | $ | 178 | ||||
Net investment hedge | Long-term liabilities | 15,304 | 178 | ||||||
Total net investment hedge | $ | 30,608 | $ | 356 | |||||
Other_Income_Tables
Other Income (Tables) | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Nonoperating Income (Expense) [Abstract] | ||||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | A summary of other income is as follows: | |||||||||||
For the Years Ended | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Interest income | $ | 16,342 | $ | 15,314 | $ | 16,543 | ||||||
Interest expense | (3,993 | ) | (4,226 | ) | (5,068 | ) | ||||||
Other | (1,259 | ) | 954 | 4,571 | ||||||||
Other income, net | $ | 11,090 | $ | 12,042 | $ | 16,046 | ||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 03, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) for 2014, 2013 and 2012 consists of the following: | |||||||||||
For the Years Ended | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 114,508 | $ | 178,424 | $ | 164,690 | ||||||
State | 13,504 | 25,148 | 13,302 | |||||||||
Foreign | 13,824 | 8,775 | 4,142 | |||||||||
Total current expense | 141,836 | 212,347 | 182,134 | |||||||||
Deferred: | ||||||||||||
Federal | 95,057 | (9,792 | ) | 9,035 | ||||||||
State | 8,873 | (7,116 | ) | 4,453 | ||||||||
Foreign | 2,975 | (5,739 | ) | (5,146 | ) | |||||||
Total deferred expense (benefit) | 106,905 | (22,647 | ) | 8,342 | ||||||||
Total income tax expense | $ | 248,741 | $ | 189,700 | $ | 190,476 | ||||||
Schedule of Deferred Tax Assets and Liabilities | Temporary differences between the financial statement carrying amounts and tax basis of assets and liabilities that give rise to significant portions of deferred income taxes at the end of 2014 and 2013 relate to the following: | |||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses | $ | 25,398 | $ | 22,948 | ||||||||
Tax credits and separate return net operating losses | 28,953 | 25,612 | ||||||||||
Share based compensation | 58,271 | 44,856 | ||||||||||
Contract and service revenues and costs | — | 65,407 | ||||||||||
Other | 10,347 | 12,529 | ||||||||||
Gross deferred tax assets | 122,969 | 171,352 | ||||||||||
Less: Valuation allowance | (776 | ) | (896 | ) | ||||||||
Total deferred tax assets | 122,193 | 170,456 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Software development costs | (163,938 | ) | (130,583 | ) | ||||||||
Depreciation and amortization | (129,684 | ) | (113,492 | ) | ||||||||
Contract and service revenues and costs | (7,511 | ) | — | |||||||||
Other | (3,625 | ) | (2,859 | ) | ||||||||
Total deferred tax liabilities | (304,758 | ) | (246,934 | ) | ||||||||
Net deferred tax liability | $ | (182,565 | ) | $ | (76,478 | ) | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The effective income tax rates for 2014, 2013, and 2012 were 32%, 32%, and 32%, respectively. These effective rates differ from the Federal statutory rate of 35% as follows: | |||||||||||
For the Years Ended | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Tax expense at statutory rates | $ | 270,961 | $ | 205,819 | $ | 205,698 | ||||||
State income tax, net of federal benefit | 15,715 | 17,502 | 13,856 | |||||||||
Tax credits | (20,986 | ) | (18,683 | ) | (1,510 | ) | ||||||
Unrecognized tax benefit (including interest) | 5,538 | (20 | ) | (12,832 | ) | |||||||
Permanent differences | (12,253 | ) | (14,760 | ) | (19,900 | ) | ||||||
Other, net | (10,234 | ) | (158 | ) | 5,164 | |||||||
Total income tax expense | $ | 248,741 | $ | 189,700 | $ | 190,476 | ||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefit is presented below: | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefit - beginning balance | $ | 2,100 | $ | 2,176 | $ | 14,640 | ||||||
Gross decreases - tax positions in prior periods | (804 | ) | (76 | ) | (12,464 | ) | ||||||
Gross increases - tax positions in prior periods | 5,906 | — | — | |||||||||
Unrecognized tax benefit - ending balance | $ | 7,202 | $ | 2,100 | $ | 2,176 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||
Reconciliation Of The Numerators And The Denominators Of The Basic And Diluted Per Share | A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Earnings | Shares | Per-Share | Earnings | Shares | Per-Share | Earnings | Shares | Per-Share | |||||||||||||||||||||||||
(In thousands, except per share data) | (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||||
Income available to common shareholders | $ | 525,433 | 342,150 | $ | 1.54 | $ | 398,354 | 343,636 | $ | 1.16 | $ | 397,232 | 341,861 | $ | 1.16 | ||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||
Stock options and non-vested shares | — | 8,236 | — | 8,645 | — | 9,533 | |||||||||||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||||
Income available to common shareholders including assumed conversions | $ | 525,433 | 350,386 | $ | 1.5 | $ | 398,354 | 352,281 | $ | 1.13 | $ | 397,232 | 351,394 | $ | 1.13 | ||||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted-average assumptions used to estimate the fair market value of stock options are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected volatility (%) | 29.7 | % | 30.5 | % | 34.8 | % | |||||||
Expected term (yrs) | 9.1 | 9.1 | 9.1 | ||||||||||
Risk-free rate (%) | 2.9 | % | 1.9 | % | 2.1 | % | |||||||
Schedule Of Stock Options Activity | Stock option activity for 2014 was as follows: | ||||||||||||
(In thousands, except per share data) | Number of | Weighted- | Aggregate | Weighted-Average | |||||||||
Shares | Average | Intrinsic | Remaining | ||||||||||
Exercise | Value | Contractual | |||||||||||
Price | Term (Yrs) | ||||||||||||
Outstanding at beginning of year | 24,407 | $ | 22.24 | ||||||||||
Granted | 3,271 | 52.19 | |||||||||||
Exercised | (2,719 | ) | 12.7 | ||||||||||
Forfeited and expired | (330 | ) | 42.31 | ||||||||||
Outstanding at end of year | 24,629 | 27 | $ | 936,584 | 6 | ||||||||
Exercisable at end of year | 14,387 | $ | 14.39 | $ | 728,611 | 4.5 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands, except for grant date fair values) | 2014 | 2013 | 2012 | ||||||||||
Weighted-average grant date fair values | $ | 22.59 | $ | 19.57 | $ | 18.52 | |||||||
Total intrinsic value of options exercised | $ | 124,828 | $ | 118,051 | $ | 152,117 | |||||||
Cash received from exercise of stock options | 31,879 | 31,403 | 38,147 | ||||||||||
Tax benefit realized upon exercise of stock options | 44,029 | 43,523 | 55,952 | ||||||||||
Schedule Of Non-Vested Shares Activity | Non-vested share activity for 2014 was as follows: | ||||||||||||
(In thousands, except per share data) | Number of Shares | Weighted-Average | |||||||||||
Grant Date Fair Value | |||||||||||||
Outstanding at beginning of year | 552 | $ | 38.54 | ||||||||||
Granted | 167 | 55.27 | |||||||||||
Vested | (208 | ) | 33.38 | ||||||||||
Forfeited | (5 | ) | 34.48 | ||||||||||
Outstanding at end of year | 506 | $ | 46.21 | ||||||||||
For the Years Ended | |||||||||||||
(In thousands, except for grant date fair values) | 2014 | 2013 | 2012 | ||||||||||
Weighted average grant date fair values for shares granted during the year | $ | 55.27 | $ | 46.66 | $ | 38.28 | |||||||
Total fair value of shares vested during the year | $ | 11,294 | $ | 13,649 | $ | 2,612 | |||||||
Compensation Expense Recognized In The Condensed Consolidated Statements Of Operations | The amounts recognized in the consolidated statements of operations with respect to stock options, non-vested shares and ASPP are as follows: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Stock option and non-vested share compensation expense | $ | 59,292 | $ | 46,295 | $ | 36,113 | |||||||
Associate stock purchase plan expense | 4,603 | 3,704 | 2,859 | ||||||||||
Amounts capitalized in software development costs, net of amortization | (930 | ) | (1,045 | ) | (860 | ) | |||||||
Amounts charged against earnings, before income tax benefit | $ | 62,965 | $ | 48,954 | $ | 38,112 | |||||||
Amount of related income tax benefit recognized in earnings | $ | 22,101 | $ | 18,607 | $ | 14,578 | |||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||
Jan. 03, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Aggregate Future Minimum Payments for Non-Cancelable Operating Leases | Aggregate minimum future payments under these non-cancelable operating leases are as follows: | |||
(In thousands) | Operating Lease Obligations | |||
2015 | $ | 23,525 | ||
2016 | 21,693 | |||
2017 | 21,467 | |||
2018 | 19,294 | |||
2019 | 14,984 | |||
2020 and thereafter | 39,607 | |||
$ | 140,570 | |||
Schedule of Aggregate Future Payments for Purchase Commitments | Aggregate future payments under these commitments are as follows: | |||
(In thousands) | Purchase Obligations | |||
2015 | $ | 42,300 | ||
2016 | 23,481 | |||
2017 | 6,762 | |||
2018 | 4,345 | |||
2019 | 4,001 | |||
2020 and thereafter | 8,000 | |||
$ | 88,889 | |||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summary of the Operating Information | The following table presents a summary of our operating segments and other expense for 2014, 2013 and 2012: | |||||||||||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 3,021,790 | $ | 380,913 | $ | — | $ | 3,402,703 | ||||||||
Cost of revenues | 542,210 | 62,167 | — | 604,377 | ||||||||||||
Operating expenses | 677,817 | 131,096 | 1,226,329 | 2,035,242 | ||||||||||||
Total costs and expenses | 1,220,027 | 193,263 | 1,226,329 | 2,639,619 | ||||||||||||
Operating earnings (loss) | $ | 1,801,763 | $ | 187,650 | $ | (1,226,329 | ) | $ | 763,084 | |||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 2,550,115 | $ | 360,633 | $ | — | $ | 2,910,748 | ||||||||
Cost of revenues | 458,540 | 56,182 | — | 514,722 | ||||||||||||
Operating expenses | 600,341 | 115,281 | 1,104,392 | 1,820,014 | ||||||||||||
Total costs and expenses | 1,058,881 | 171,463 | 1,104,392 | 2,334,736 | ||||||||||||
Operating earnings (loss) | $ | 1,491,234 | $ | 189,170 | $ | (1,104,392 | ) | $ | 576,012 | |||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
2012 | ||||||||||||||||
Revenues | $ | 2,341,304 | $ | 324,132 | $ | — | $ | 2,665,436 | ||||||||
Cost of revenues | 548,813 | 59,384 | — | 608,197 | ||||||||||||
Operating expenses | 506,249 | 131,580 | 847,748 | 1,485,577 | ||||||||||||
Total costs and expenses | 1,055,062 | 190,964 | 847,748 | 2,093,774 | ||||||||||||
Operating earnings (loss) | $ | 1,286,242 | $ | 133,168 | $ | (847,748 | ) | $ | 571,662 | |||||||
Quarterly_Results_Tables
Quarterly Results (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Selected quarterly financial data for 2014 and 2013 is set forth below: | |||||||||||||||||||
(In thousands, except per share data) | Revenues | Earnings Before Income Taxes | Net Earnings | Basic Earnings Per Share | Diluted Earnings Per Share | |||||||||||||||
2014 quarterly results: | ||||||||||||||||||||
First Quarter | $ | 784,761 | $ | 180,993 | $ | 119,526 | $ | 0.35 | $ | 0.34 | ||||||||||
Second Quarter | 851,762 | 194,370 | 129,033 | 0.38 | 0.37 | |||||||||||||||
Third Quarter (a) | 840,149 | 190,335 | 129,002 | 0.38 | 0.37 | |||||||||||||||
Fourth Quarter (a) | 926,031 | 208,476 | 147,872 | 0.43 | 0.42 | |||||||||||||||
Total | $ | 3,402,703 | $ | 774,174 | $ | 525,433 | ||||||||||||||
(a) Third and Fourth quarter results include pre-tax acquisition costs of $9.4 million and $6.4 million, respectively, as further described in Note (2). | ||||||||||||||||||||
(In thousands, except per share data) | Revenues | Earnings Before Income Taxes | Net Earnings | Basic Earnings Per Share | Diluted Earnings Per Share | |||||||||||||||
2013 quarterly results: | ||||||||||||||||||||
First Quarter | $ | 680,029 | $ | 159,613 | $ | 110,040 | $ | 0.32 | $ | 0.31 | ||||||||||
Second Quarter | 707,561 | 169,189 | 112,907 | 0.33 | 0.32 | |||||||||||||||
Third Quarter | 727,830 | 172,747 | 115,344 | 0.34 | 0.33 | |||||||||||||||
Fourth Quarter (b) | 795,328 | 86,505 | 60,063 | 0.17 | 0.17 | |||||||||||||||
Total | $ | 2,910,748 | $ | 588,054 | $ | 398,354 | ||||||||||||||
(b) Fourth quarter results include a pre-tax settlement charge of $106.2 million, as further described in Note (11). |
Schedule_II_Schedule_of_Valuat
Schedule II Schedule of Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II | ||||||||||||||||
CERNER CORPORATION | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
For the years ended January 3, 2015, December 28, 2013 and December 29, 2012 | |||||||||||||||||
(In thousands) | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Through Acquisitions | Deductions(a) | Balance at End of Period | ||||||||||||
Description | |||||||||||||||||
2012 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 24,270 | 13,483 | 8 | (4,531 | ) | $ | 33,230 | |||||||||
2013 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 33,230 | 6,954 | 489 | (4,387 | ) | $ | 36,286 | |||||||||
2014 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 36,286 | 5,274 | — | (16,029 | ) | $ | 25,531 | |||||||||
(a) Deductions in 2014 include a $13.9 million reclassification to other non-current assets. | |||||||||||||||||
See accompanying report of independent registered public accounting firm. | |||||||||||||||||
Allowance for Credit Losses [Text Block] | For the years ended January 3, 2015, December 28, 2013 and December 29, 2012 | ||||||||||||||||
(In thousands) | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Through Acquisitions | Deductions(a) | Balance at End of Period | ||||||||||||
Description | |||||||||||||||||
2012 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 24,270 | 13,483 | 8 | (4,531 | ) | $ | 33,230 | |||||||||
2013 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 33,230 | 6,954 | 489 | (4,387 | ) | $ | 36,286 | |||||||||
2014 | |||||||||||||||||
Allowance for Doubtful Accounts | $ | 36,286 | 5,274 | — | (16,029 | ) | $ | 25,531 | |||||||||
(a) Deductions in 2014 include a $13.9 million reclassification to other non-current assets. |
Basis_of_Presentation_Nature_o2
Basis of Presentation, Nature of Operations and Summary of Significant Accounting Policies Investments Policy (Details) | 12 Months Ended |
Jan. 03, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Maximum Time Until Maturity of Short-term Available-for-Sale Investments | 1 year 0 months 0 days |
Maximum Time Until Maturity of Long-term Available-for-Sale Investments | 2 years 0 months 0 days |
Basis_of_Presentation_Nature_o3
Basis of Presentation, Nature of Operations and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Jan. 03, 2015 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 1 year 0 months 0 days |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 50 years 0 months 0 days |
Software Development [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years 0 months 0 days |
Leasehold improvements | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 1 year |
Leasehold improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 15 years |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | ||||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 01, 2014 | Mar. 04, 2013 | Mar. 18, 2013 | Nov. 26, 2012 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $320,538,000 | $307,422,000 | $247,616,000 | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | -10,617,000 | -800,000 | -3,400,000 | ||||
Siemens Health Services [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Transaction Costs | 15,800,000 | ||||||
Business Acquisition, Effective Date of Acquisition | 2-Feb-15 | ||||||
Business Acquisition, Name of Acquired Entity | Siemens Health Services | ||||||
Business Acquisition, Description of Acquired Entity | Siemens Health Services offers a portfolio of enterprise-level clinical and financial health care information technology solutions, as well as departmental, connectivity, population health, and care coordination solutions globally. Solutions are offered on the Soarian, Invision, and i.s.h.med platforms, among others. Siemens Health Services also offers a range of complementary and support services including hosting and managed services, implementation services, and strategic consulting. | ||||||
Business Combination, Reason for Business Combination | We believe the acquisition enhances our organic growth opportunities as it provides us a larger base into which we can sell our combined portfolio of solutions and services. The acquisition also augments our non-U.S. footprint and growth opportunities, increases our ability and scale for R&D investment, and adds approximately 5,500 of highly-skilled associates that will enhance our capabilities. These factors, combined with the synergies and economies of scale expected from combining the operations of Cerner and Siemens Health Services, are the basis for acquisition. | ||||||
Business Combination, Consideration Transferred | 1,370,000,000 | ||||||
Business Combination, Base Purchase Price | 1.3 | ||||||
InterMedHx [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | 1-Apr-14 | ||||||
Business Acquisition, Name of Acquired Entity | InterMedHx, LLC (InterMedHx) | ||||||
Business Acquisition, Description of Acquired Entity | InterMedHx is a provider of health technology solutions in the areas of preventive care, patient administration, and medication history. | ||||||
Business Combination, Reason for Business Combination | We believe the addition of InterMedHx solutions provides additional capabilities in the market. | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Business Combination, Consideration Transferred | 19,100,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Description | which is payable at a percentage of the revenue contribution from InterMedHx solutions and services. | ||||||
Business Acquisition, Contingent Consideration, at Fair Value | 11,600,000 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 16,800,000 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 3,800,000 | ||||||
Pure Wellness [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | 4-Mar-13 | ||||||
Business Acquisition, Name of Acquired Entity | Kaufman & Keen, LLC (doing business as PureWellness) | ||||||
Business Acquisition, Description of Acquired Entity | PureWellness is a health and wellness company that develops solutions for the administration and management of wellness programs, and to enable plan member engagement strategies. | ||||||
Business Combination, Reason for Business Combination | Our acquisition of PureWellness will further expand what we believe to be a robust offering of solutions to manage and improve the health of populations. | ||||||
Business Combination, Consideration Transferred | 69,200,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Description | payable if we achieve certain revenue milestones from PureWellness solutions and services during the period commencing on August 1, 2013 and ending April 30, 2015. | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 10,600,000 | ||||||
Business Acquisition, Contingent Consideration, at Fair Value | 19,000,000 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 48,600,000 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 20,300,000 | ||||||
Pure Wellness [Member] | Existing technologies [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 9,800,000 | ||||||
Pure Wellness [Member] | Customer relationships [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 10,500,000 | ||||||
Labotix [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | 18-Mar-13 | ||||||
Business Acquisition, Name of Acquired Entity | Labotix Corporation (together with its wholly owned subsidiary Labotix Automation, Inc., Labotix) | ||||||
Business Acquisition, Description of Acquired Entity | Labotix is a developer of laboratory automation solutions for clinical laboratories. | ||||||
Business Combination, Reason for Business Combination | We believe the combination of Cerner Millennium, Cerner Copath, and Labotix will allow us to offer a comprehensive set of capabilities to support high volume laboratory testing. | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Business Combination, Consideration Transferred | 18,000,000 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||||
Labotix [Member] | Existing technologies [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 5,200,000 | ||||||
Anasazi Software, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | 26-Nov-12 | ||||||
Business Acquisition, Name of Acquired Entity | Anasazi Software, Inc. (Anasazi) | ||||||
Business Acquisition, Description of Acquired Entity | Anasazi is a provider of behavioral health technology solutions. | ||||||
Business Combination, Reason for Business Combination | We believe the combination of Cerner Millennium, including in-patient behavioral health, and Anasazi's community behavioral health solutions create a more comprehensive offering in the market. | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Business Combination, Consideration Transferred | 47,700,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Description | payable upon the achievement of certain revenue milestones during 2013 from Anasazi solutions and services | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 800,000 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years 0 months 0 days | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 18,600,000 | ||||||
Anasazi Software, Inc. [Member] | Existing technologies [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 5,200,000 | ||||||
Anasazi Software, Inc. [Member] | Customer relationships [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||||||
Intangible assets | 12,800,000 | ||||||
Domestic Segment | InterMedHx [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 16,800,000 | ||||||
Domestic Segment | Pure Wellness [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 48,600,000 | ||||||
Domestic Segment | Labotix [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 11,700,000 | ||||||
Domestic Segment | Anasazi Software, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $34,600,000 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Investments [Abstract] | ||
Cost method investments | $8.70 | $7.20 |
Equity Method Investments | 3.5 | 5 |
Proceeds from sale of available-for-sale securities | $697.90 | $125.30 |
Investments_Details
Investments (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | $1,319,899 | $1,287,802 |
Gross Unrealized Gains | 96 | 715 |
Gross Unrealized Losses | -603 | -367 |
Fair Value | 1,319,392 | 1,288,150 |
Cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 314,764 | 68,435 |
Fair Value | 314,764 | 68,435 |
Cash equivalents [Member] | Money market funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 189,137 | 57,254 |
Fair Value | 189,137 | 57,254 |
Cash equivalents [Member] | Time deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 9,989 | 7,771 |
Fair Value | 9,989 | 7,771 |
Cash equivalents [Member] | Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 115,638 | 3,000 |
Fair Value | 115,638 | 3,000 |
Cash equivalents [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 410 | |
Fair Value | 410 | |
Short-term investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 785,696 | 676,723 |
Gross Unrealized Gains | 70 | 369 |
Gross Unrealized Losses | -103 | -88 |
Fair Value | 785,663 | 677,004 |
Short-term investments [Member] | Time deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 52,830 | 70,303 |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses | -1 | |
Fair Value | 52,829 | 70,315 |
Short-term investments [Member] | Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 435,555 | 33,750 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | -12 | -9 |
Fair Value | 435,544 | 33,742 |
Short-term investments [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 297,311 | 572,670 |
Gross Unrealized Gains | 69 | 356 |
Gross Unrealized Losses | -90 | -79 |
Fair Value | 297,290 | 572,947 |
Long-term investments [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 219,439 | 542,644 |
Gross Unrealized Gains | 26 | 346 |
Gross Unrealized Losses | -500 | -279 |
Fair Value | $218,965 | $542,711 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt, including current maturities | $14,900,000 | $32,600,000 |
Carrying amount of long-term debt | $14,233,000 | $30,600,000 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $1,319,392 | $1,288,150 |
Level 1 [Member] | Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 189,137 | 57,254 |
Level 2 [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 9,989 | 7,771 |
Level 2 [Member] | Commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 115,638 | 3,000 |
Level 2 [Member] | Government and corporate bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 410 | |
Short-term investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 785,663 | 677,004 |
Short-term investments [Member] | Level 2 [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 52,829 | 70,315 |
Short-term investments [Member] | Level 2 [Member] | Commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 435,544 | 33,742 |
Short-term investments [Member] | Level 2 [Member] | Government and corporate bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 297,290 | 572,947 |
Long-term investments [Member] | Level 2 [Member] | Government and corporate bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $218,965 | $542,711 |
Receivables_Narrative_Details
Receivables (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Client cash collections | $3,500,000,000 | $3,100,000,000 | |
Cash collections received from third party arrangements with nonrecourse payment assignments | 79,900,000 | 60,800,000 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowances and reserves, charged to cost and expense | $5,274,000 | $6,954,000 | $13,483,000 |
Receivables_Summary_Of_Net_Rec
Receivables (Summary Of Net Receivables) (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Gross accounts receivable | $641,160 | $583,312 |
Less: Allowance for doubtful accounts | 25,531 | 36,286 |
Accounts receivable, net of allowance | 615,629 | 547,026 |
Current portion of lease receivables | 57,149 | 35,900 |
Total receivables, net | $672,778 | $582,926 |
Receivables_Schedule_of_SalesT
Receivables (Schedule of Sales-Type Leases) (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Minimum lease payments receivable | $125,906 | $146,566 |
Less: Unearned income | 6,089 | 7,602 |
Total lease receivables | 119,817 | 138,964 |
Less: Long-term receivables included in other assets | 62,668 | 103,064 |
Current portion of lease receivables | $57,149 | $35,900 |
Receivables_Future_Minimum_Lea
Receivables (Future Minimum Lease Payments To Be Received Under Existing Sales-Type Leases) (Details) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Receivables [Abstract] | |
Next Year | $60,198 |
2 Years | 36,259 |
3 Years | 20,293 |
4 Years | 6,986 |
5 Years | $2,170 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation and leasehold amortization expense | $163 | $135.70 | $120.10 |
Property_and_Equipment_Schedul
Property and Equipment Schedule of Property and Equipment (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $1,864,770 | $1,611,231 |
Less accumulated depreciation and leasehold amortization | 940,510 | 818,450 |
Total property and equipment, net | 924,260 | 792,781 |
Computer and communications equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,137,497 | 963,301 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 439,567 | 411,382 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 187,351 | 160,030 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 96,244 | 72,601 |
Capital lease equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,196 | 3,207 |
Other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $915 | $710 |
Property_and_Equipment_Schedul1
Property and Equipment Schedule of Useful Lives (Details) | 12 Months Ended |
Jan. 03, 2015 | |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 50 years 0 months 0 days |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 1 year 0 months 0 days |
Computer and communications equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Computer and communications equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 1 year |
Land, buildings and improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 50 years |
Land, buildings and improvements | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 12 years |
Leasehold improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 15 years |
Leasehold improvements | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 1 year |
Furniture and fixtures | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 12 years |
Furniture and fixtures | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Capital lease equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Capital lease equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Other equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 20 years |
Other equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Schedule of Changes in Carrying Amounts of Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Goodwill [Roll Forward] | ||
Beginning Balance | $307,422 | $247,616 |
Goodwill recorded in connection with business acquisitions | 16,757 | 59,570 |
Foreign currency translation adjustment and other | -3,641 | 236 |
Ending Balance | $320,538 | $307,422 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $339,243 | $315,622 |
Accumulated Amortization | 212,607 | 171,490 |
Intangible assets, net | 126,636 | 144,132 |
Software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 169,703 | 168,798 |
Accumulated Amortization | 110,344 | 89,691 |
Customer Lists | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 100,681 | 100,909 |
Accumulated Amortization | 73,637 | 68,094 |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 68,859 | 45,915 |
Accumulated Amortization | $28,626 | $13,705 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $35.90 | $32.90 | $20.30 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Schedule of Estimated Aggregate Amortization Expense) (Details) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $34,048 |
2016 | 29,359 |
2017 | 22,651 |
2018 | 8,494 |
2019 | $5,208 |
Software_Development_Costs_Det
Software Development Costs (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Research and Development [Abstract] | |||
Software development costs | $467,158,000 | $418,747,000 | $319,828,000 |
Capitalized software development costs | -177,800,000 | -174,649,000 | -100,189,000 |
Amortization of capitalized software development costs | 103,447,000 | 94,688,000 | 81,731,000 |
Total software development expense | 392,805,000 | 338,786,000 | 301,370,000 |
Accumulated capitalized computer software amortization | $890,700,000 | $798,000,000 |
Indebtedness_Schedule_of_Indeb
Indebtedness (Schedule of Indebtedness Outstanding) (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt and capital lease obligations | $130,328 | $165,824 |
Less: current portion | -67,460 | -54,107 |
Long-term debt and capital lease obligations | 62,868 | 111,717 |
Note agreement, 5.54% | ||
Debt Instrument [Line Items] | ||
Total debt and capital lease obligations | 14,233 | 30,608 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Total debt and capital lease obligations | $116,095 | $135,216 |
Indebtedness_Details
Indebtedness (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Jan. 03, 2015 | Jan. 03, 2015 | Jan. 03, 2015 | Jan. 29, 2015 | Jan. 03, 2015 | Jan. 29, 2015 | Jan. 03, 2015 | Nov. 30, 2005 | Jan. 03, 2015 | Jan. 03, 2015 | Jan. 29, 2015 | Jan. 29, 2015 | Jan. 29, 2015 | Jan. 29, 2015 |
USD ($) | Senior Notes [Member] | Series 2015-A [Member] | Series 2015-A [Member] | Series 2015-B [Member] | Series 2015-B [Member] | Series 2015-C [Member] | Note Agreement, 5.54% [Member] | Note Agreement, 5.54% [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
GBP (£) | Series 2015-C [Member] | Senior Notes [Member] | Series 2015-A [Member] | Series 2015-B [Member] | Series 2015-C [Member] | |||||||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | £ 65 | $500 | $225 | $200 | $75 | |||||||||
Debt Instrument, Description of Variable Rate Basis | Adjusted LIBOR Rate | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.18% | 3.58% | 5.54% | |||||||||||
Debt Instrument, Maturity Date | 15-Feb-22 | 14-Feb-25 | 15-Feb-22 | |||||||||||
Debt Instrument, Frequency of Periodic Payment | payable semiannually | payable quarterly | seven | |||||||||||
Debt Instrument, Date of First Required Payment | 15-Aug-15 | 15-May-15 | 30-Nov-09 | |||||||||||
Debt Instrument, Restrictive Covenants | The Master Note Purchase Agreement contains certain leverage and interest coverage ratio covenants and provides certain restrictions on our ability to borrow, incur liens, sell assets, and other customary terms | The Note Agreement contains certain net worth and fixed charge coverage covenants and provides certain restrictions on our ability to borrow, incur liens, sell assets and pay dividends. We were in compliance with all covenants at the end of 2014. | ||||||||||||
Line of Credit Facility, Expiration Date | 9-Feb-17 | |||||||||||||
Line of Credit Facility, Interest Rate Description | Interest is payable at a rate based on prime, LIBOR, or the U.S. federal funds rate, plus a spread that varies depending on the leverage ratios maintained | |||||||||||||
Line of Credit Facility, Covenant Terms | The agreement provides certain restrictions on our ability to borrow, incur liens, sell assets and pay dividends and contains certain cash flow and liquidity covenants. As of the end of 2014, we were in compliance with all debt covenants. | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | |||||||||||||
Letters of Credit Outstanding, Amount | 16.6 | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $83.40 | |||||||||||||
Description of Lessee Leasing Arrangements, Capital Leases | capital lease obligations are primarily related to the procurement of hardware and health care devices, and generally have a term of five years |
Indebtedness_Schedule_of_Minim
Indebtedness (Schedule of Minimum Annual Payments Under Capital Lease Obligations and Maturities of Indebtedness) (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Future Minimum Lease Payments For Capital Leases and Maturities of Indebtedness [Line Items] | ||
Minimum Lease Payments | $121,002 | |
Less: Interest | 4,907 | |
Principal | 116,095 | |
Prinicpal Amount of Indebtedness | 14,233 | 30,600 |
Total debt and capital lease obligations | 130,328 | 165,824 |
2015 | ||
Schedule of Future Minimum Lease Payments For Capital Leases and Maturities of Indebtedness [Line Items] | ||
Minimum Lease Payments | 55,968 | |
Less: Interest | 2,741 | |
Principal | 53,227 | |
Prinicpal Amount of Indebtedness | 14,233 | |
Total debt and capital lease obligations | 67,460 | |
2016 | ||
Schedule of Future Minimum Lease Payments For Capital Leases and Maturities of Indebtedness [Line Items] | ||
Minimum Lease Payments | 35,968 | |
Less: Interest | 1,458 | |
Principal | 34,510 | |
Prinicpal Amount of Indebtedness | 0 | |
Total debt and capital lease obligations | 34,510 | |
2017 | ||
Schedule of Future Minimum Lease Payments For Capital Leases and Maturities of Indebtedness [Line Items] | ||
Minimum Lease Payments | 20,052 | |
Less: Interest | 530 | |
Principal | 19,522 | |
Prinicpal Amount of Indebtedness | 0 | |
Total debt and capital lease obligations | 19,522 | |
2018 | ||
Schedule of Future Minimum Lease Payments For Capital Leases and Maturities of Indebtedness [Line Items] | ||
Minimum Lease Payments | 6,877 | |
Less: Interest | 156 | |
Principal | 6,721 | |
Prinicpal Amount of Indebtedness | 0 | |
Total debt and capital lease obligations | 6,721 | |
2019 | ||
Schedule of Future Minimum Lease Payments For Capital Leases and Maturities of Indebtedness [Line Items] | ||
Minimum Lease Payments | 2,137 | |
Less: Interest | 22 | |
Principal | 2,115 | |
Prinicpal Amount of Indebtedness | 0 | |
Total debt and capital lease obligations | $2,115 |
Hedging_Activities_Fair_Value_
Hedging Activities (Fair Value Of Net Investment Hedge Within Condensed Consolidated Balance Sheets And Unrealized Gain Or Loss) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Derivatives, Fair Value [Line Items] | ||
Fair value | $30,608 | |
Net unrealized amount included in other comprehensive income | 356 | |
Short-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value | 14,233 | 15,304 |
Net unrealized amount included in other comprehensive income | 929 | 178 |
Long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value | 15,304 | |
Net unrealized amount included in other comprehensive income | $178 |
Contingencies_Details
Contingencies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency, Name of Plaintiff | RLIS, Inc., a non-practicing entity | |
Loss Contingency, Allegations | alleging that certain of the Companybs electronic medical record solutions infringe two patents owned by the plaintiff. | |
Loss Contingency, Damages Sought | At trial, Plaintiff requested damages between $35.3 million and $38.2 million. Plaintiff also sought attorneysb fees, costs, and an ongoing royalty. | |
Loss Contingency, Trial or Alternative Dispute Resolution | A jury trial was conducted from January 5, 2015, to January 16, 2015. The jury rendered a verdict that all remaining patent claims asserted against the Company were invalid and not infringed by the Company. The Company continues to dispute the Plaintiffbs claims and will vigorously defend itself if the Plaintiff appeals after a final judgment is entered. | |
Loss Contingency, Management's Assessment and Process | In the opinion of our management, if the Plaintiff were to appeal, there is a reasonable possibility that we could incur losses with respect to this matter but we are unable to estimate a range of any such possible losses at this time, and we do not believe a loss is probable. | |
Settlement charge | $106.20 |
Other_Income_Schedule_of_Inter
Other Income (Schedule of Interest Income and Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Nonoperating Income (Expense) [Abstract] | |||
Interest income | $16,342 | $15,314 | $16,543 |
Interest expense | -3,993 | -4,226 | -5,068 |
Other | -1,259 | 954 | 4,571 |
Other income, net | $11,090 | $12,042 | $16,046 |
Other_Income_Investment_Gains_
Other Income Investment Gains (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2012 |
Other Nonoperating Income (Expense) [Abstract] | |
Cost-method Investments, Realized Gain (Loss) | $4.50 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $776,000 | $896,000 | |
Cumulative undistributed earnings of foreign subsidiaries | 99,000,000 | ||
Effective tax rate | 32.00% | 32.00% | 32.00% |
Federal statutory income tax rate | 35.00% | ||
Change in unrecognized tax benefits in next 12 months | We anticipate that it is reasonably possible that our unrecognized tax benefits will decrease by up to $4 million within the next twelve months due to the potential settlement of examinations and lapse of the statutes of limitations in various taxing jurisdictions. | ||
Last year examined | Our federal returns have been examined by the Internal Revenue Service through 2009. Our federal returns for 2010 through 2012 are currently under examination by the Internal Revenue Service. We have various state and foreign returns under examination. | ||
Accrued interest related to unrecognized tax benefits | 600,000 | 200,000 | |
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 5,500,000 | ||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-20 | ||
Foreign Tax Authority [Member] | Expiration Date 2024 [Member] [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 400,000 | ||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-24 | ||
Foreign Tax Authority [Member] | Expiration Date 2033 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 700,000 | ||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-33 | ||
Foreign Tax Authority [Member] | No Expiration Date [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 46,800,000 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 800,000 | ||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-34 | ||
Tax Credit Carryforward, Amount | $16,000,000 | ||
Tax Credit Carryforward, Expiration Date | 31-Dec-30 |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Current: | |||
Federal | $114,508 | $178,424 | $164,690 |
State | 13,504 | 25,148 | 13,302 |
Foreign | 13,824 | 8,775 | 4,142 |
Total current expense | 141,836 | 212,347 | 182,134 |
Deferred: | |||
Federal | 95,057 | -9,792 | 9,035 |
State | 8,873 | -7,116 | 4,453 |
Foreign | 2,975 | -5,739 | -5,146 |
Total deferred expense (benefit) | 106,905 | -22,647 | 8,342 |
Total income tax expense | $248,741 | $189,700 | $190,476 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Deferred Tax Liabilities) (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Accrued expenses | $25,398 | $22,948 |
Tax credits and separate return net operating losses | 28,953 | 25,612 |
Share based compensation | 58,271 | 44,856 |
Contract and service revenues and costs | 0 | 65,407 |
Other | 10,347 | 12,529 |
Deferred Tax Assets, Gross | 122,969 | 171,352 |
Deferred Tax Assets, Valuation Allowance | -776 | -896 |
Total deferred tax assets | 122,193 | 170,456 |
Deferred tax liabilities: | ||
Software development costs | -163,938 | -130,583 |
Depreciation and amortization | -129,684 | -113,492 |
Contract and service revenues and costs | -7,511 | 0 |
Other | -3,625 | -2,859 |
Total deferred tax liabilities | -304,758 | -246,934 |
Net deferred tax liability | ($182,565) | ($76,478) |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rates | $270,961 | $205,819 | $205,698 |
State income tax, net of federal benefit | 15,715 | 17,502 | 13,856 |
Tax credits | -20,986 | -18,683 | -1,510 |
Unrecognized tax benefit (including interest) | 5,538 | -20 | -12,832 |
Permanent differences | -12,253 | -14,760 | -19,900 |
Other, net | -10,234 | -158 | 5,164 |
Total income tax expense | $248,741 | $189,700 | $190,476 |
Income_Taxes_Schedule_of_Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits Rollforward) (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $5,900,000 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit - beginning balance | 2,100,000 | 2,176,000 | 14,640,000 |
Gross decreases - tax positions in prior periods | -804,000 | -76,000 | -12,464,000 |
Gross increases - tax positions in prior periods | 5,906,000 | 0 | 0 |
Unrecognized tax benefit - ending balance | $7,202,000 | $2,100,000 | $2,176,000 |
Income_Taxes_Foreign_Income_De
Income Taxes Foreign Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax - Foreign Disclosure [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $68.30 | $4.50 | ($15.40) |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation Of The Numerators And The Denominators Of The Basic And Diluted Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Income available to common shareholders, basic | $525,433 | $398,354 | $397,232 | ||||||||
Income available to common shareholders including assumed conversions, diluted | $525,433 | $398,354 | $397,232 | ||||||||
Basic weighted average shares outstanding | 342,150 | 343,636 | 341,861 | ||||||||
Stock options and non-vested shares, incremental shares | 8,236 | 8,645 | 9,533 | ||||||||
Diluted weighted average shares outstanding | 350,386 | 352,281 | 351,394 | ||||||||
Basic earnings per share | $0.43 | $0.38 | $0.38 | $0.35 | $0.17 | $0.34 | $0.33 | $0.32 | $1.54 | $1.16 | $1.16 |
Diluted earnings per share | $0.42 | $0.37 | $0.37 | $0.34 | $0.17 | $0.33 | $0.32 | $0.31 | $1.50 | $1.13 | $1.13 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 5.7 | 6.1 | 4.6 |
Antidilutive securities excluded from computation of earnings per share, exercise price, lower range limit | $44.05 | $36.92 | $27.62 |
Antidilutive securities excluded from computation of earnings per share, exercise price, upper range limit | $66.10 | $56.39 | $42.98 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for awards | 8.1 | |
Typical vesting period for option awards | 5 years | |
Contractual term of options | 10 years | |
Associate stock purchase plan discount | 15.00% | |
Authorized preferred shares | 1 | |
Par value per share of preferred stock | $0.01 | |
Stock Repurchase Program, Authorized Amount | $317 | $170 |
Stock Repurchased During Period, Shares | 4.1 | 3.6 |
Stock Repurchase Program, Increase in Authorized Amount | 100 | |
Payments for Repurchase of Common Stock, Excluding Transaction Costs | 217 | 170 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 100 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost | 136.1 | |
Period of recognition for remaining share-based compensation expense | 3 years 1 month 5 days | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost | $11 | |
Period of recognition for remaining share-based compensation expense | 1 year 3 months 15 days |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected volatility (%) | 29.70% | 30.50% | 34.80% |
Expected term (yrs) | 9 years 1 month 12 days | 9 years 1 month 12 days | 9 years 1 month 12 days |
Risk-free rate (%) | 2.90% | 1.90% | 2.10% |
ShareBased_Compensation_Schedu1
Share-Based Compensation (Schedule Of Stock Options Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at beginning of year, number of shares | 24,407 |
Outstanding at beginning of year, weighted-average exercise price | $22.24 |
Granted, number of shares | 3,271 |
Granted, weighted-average exercise price | $52.19 |
Exercised, number of shares | -2,719 |
Exercised, weighted-average exercise price | $12.70 |
Forfeited and expired, number of shares | -330 |
Forfeited and expired, weighted-average exercise price | $42.31 |
Outstanding end of year, number of shares | 24,629 |
Outstanding at end of year, weighted-average exercise price | $27 |
Outstanding at end of year, aggregate intrinsic value | $936,584 |
Outstanding at end of year, weighted-average remaining contractual term | 5 years 12 months 1 day |
Exercisable at end of year, number of shares | 14,387 |
Exercisable at end of year, weighted-average exercise price | $14.39 |
Exercisable at end of year, aggregate intrinsic value | $728,611 |
Exercisable at end of year, weighted-average remaining contractual term | 4 years 6 months 1 day |
ShareBased_Compensation_Schedu2
Share-Based Compensation (Schedule of Weighted Average Grant Date Fair Values of Options Granted in Period and Other Disclosures) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average grant date fair value | $22.59 | $19.57 | $18.52 |
Total intrinsic value of options exercised | $124,828 | $118,051 | $152,117 |
Cash received from exercise of stock options | 31,879 | 31,403 | 38,147 |
Tax benefit realized upon exercise of stock options | $44,029 | $43,523 | $55,952 |
ShareBased_Compensation_Schedu3
Share-Based Compensation (Schedule Of Non-Vested Shares Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, weighted-average grant date fair value | $55.27 | $46.66 | $38.28 |
Total fair value of shares vested during the year | $11,294 | $13,649 | $2,612 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 3 months 15 days | ||
Outstanding at beginning of year, number of shares | 552 | ||
Outstanding at beginning of year, weighted-average grant date fair value | $38.54 | ||
Granted, number of shares | 167 | ||
Granted, weighted-average grant date fair value | $55.27 | ||
Vested, number of shares | -208 | ||
Vested, weighted-average grant date fair value | $33.38 | ||
Forfeited, number of shares | -5 | ||
Forfeited, weighted-average grant date fair value | $34.48 | ||
Outstanding at end of year, number of shares | 506 | ||
Outstanding at end of year, weighted-average grant date fair value | $46.21 |
ShareBased_Compensation_Compen
Share-Based Compensation (Compensation Expense Recognized In The Condensed Consolidated Statements Of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amounts charged against earnings, before income tax benefit | $62,965 | $48,954 | $38,112 |
Amount of related income tax benefit recognized in earnings | 22,101 | 18,607 | 14,578 |
Stock option and non-vested share compensation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amounts charged against earnings, before income tax benefit | 59,292 | 46,295 | 36,113 |
Associate stock purchase plan expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amounts charged against earnings, before income tax benefit | 4,603 | 3,704 | 2,859 |
Amounts capitalized in software development costs, net of amortization | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amounts charged against earnings, before income tax benefit | ($930) | ($1,045) | ($860) |
Foundations_Retirement_Plan_De
Foundations Retirement Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
First Tier Discretionary Match [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $17.90 | $14.90 | $12.30 |
Second Tier Discretionary Match [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $4.90 | $13.50 | $11.90 |
Related_Party_Transactions_Rel
Related Party Transactions Related Parties (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Related Party Transaction [Line Items] | |||
Estimated Incentives | $82 | ||
Kansas Unified Development and OnGoal [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Description of Transaction | The stadium complex was developed by Kansas Unified Development, LLC (the bDeveloperb), an entity controlled by Neal Patterson, Chairman of the Board of Directors and Chief Executive Officer of the Company, and Clifford Illig, Vice Chairman of the Board of Directors of the Company. Sporting Kansas City (bSporting KCb) is the principal tenant of the stadium complex. OnGoal LLC (bOnGoalb), the owner of the Sporting KC professional soccer club, is also controlled by Messrs. Patterson and Illig | ||
Grand Construction [Member] | Continuous Campus [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Description of Transaction | In 2012, we contracted with GRAND Construction, LLC (bGrandb), a limited liability company owned in part by an entity controlled by Messrs. Patterson and Illig, to coordinate, supervise, schedule and assist with managing the development, design and construction of our Continuous Campus | ||
Related Party Transaction, Amounts of Transaction | 0.4 | 1.4 | 1.4 |
Grand Construction [Member] | Parking Improvements [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Description of Transaction | separate projects to make improvements to parking facilities utilized by one of our other office campuses | ||
Related Party Transaction, Amounts of Transaction | 0.3 | ||
Trails [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Description of Transaction | In December 2014, we contracted with Grand to coordinate, supervise, schedule and assist with managing the development, design and construction of the first two phases of our Trails Campus | In December 2013, we purchased approximately 237 acres of land located in Kansas City, Missouri, from Trails Properties II, Inc. (bTrailsb) | |
Related Party Transaction, Amounts of Transaction | 42.5 | ||
Related Party Transaction, Estimated Future Expense | 3.6 | ||
Cash Grant [Member] | |||
Related Party Transaction [Line Items] | |||
Estimated Incentives | 48 | ||
Remaining Incentive | 43 | ||
Sales Tax Exemptions [Member] | |||
Related Party Transaction [Line Items] | |||
Estimated Incentives | 11.5 | ||
State Income Tax Credits [Member] | |||
Related Party Transaction [Line Items] | |||
Estimated Incentives | 18.5 | ||
Land Received [Member] | |||
Related Party Transaction [Line Items] | |||
Estimated Incentives | $4 | ||
Success Payment [Member] | |||
Related Party Transaction [Line Items] | |||
Gain Contingency, Description | Under a separate agreement, the Developer and OnGoal have agreed to be responsible for certain shortfall payments that may become due. If no payment from Developer or OnGoal becomes due at the end of the 10-year period, the Developer or OnGoal will pay us a success fee of $4.0 million | ||
Cash Grant [Member] | |||
Related Party Transaction [Line Items] | |||
Gain Contingency, Description | Should aggregate state payroll tax withholdings (related to associates at our Continuous Campus) over a 10-year period commencing in January 2014 be less than $51.9 million (the $48.0 million of cash we received plus amounts representing debt service costs incurred by the State of Kansas), we would be required to repay the shortfall. The $51.9 million maximum repayment amount will be adjusted up or down during the 10-year period, based on any future change to Kansas payroll tax withholding rates |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Other Commitments, Description | Concurrently with the execution of the MSPA, we entered into an agreement with Siemens to create a strategic alliance to jointly invest in innovative projects that integrate health information technology with medical technologies for the purpose of enhancing workflows and improving clinical outcomes. | ||
Other Commitment | $50 | ||
Rent expense for office and warehouse space | $25.10 | $20 | $18.10 |
Commitments_Schedule_of_Aggreg
Commitments (Schedule of Aggregate Future Minimum Payments for Non-Cancelable Operating Leases) (Details) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $23,525 |
2016 | 21,693 |
2017 | 21,467 |
2018 | 19,294 |
2019 | 14,984 |
2020 and thereafter | 39,607 |
Total | $140,570 |
Commitments_Schedule_of_Aggreg1
Commitments (Schedule of Aggregate Future Payments for Purchase Commitments) (Details) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2015 | $42,300 |
2016 | 23,481 |
2017 | 6,762 |
2018 | 4,345 |
2019 | 4,001 |
2020 and thereafter | 8,000 |
Total | $88,889 |
Segment_Reporting_Summary_Of_T
Segment Reporting (Summary Of The Operating Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $926,031 | $840,149 | $851,762 | $784,761 | $795,328 | $727,830 | $707,561 | $680,029 | $3,402,703 | $2,910,748 | $2,665,436 |
Cost of revenues | 604,377 | 514,722 | 608,197 | ||||||||
Operating expenses | 2,035,242 | 1,820,014 | 1,485,577 | ||||||||
Total costs and expenses | 2,639,619 | 2,334,736 | 2,093,774 | ||||||||
Operating earnings | 763,084 | 576,012 | 571,662 | ||||||||
Domestic Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 3,021,790 | 2,550,115 | 2,341,304 | ||||||||
Cost of revenues | 542,210 | 458,540 | 548,813 | ||||||||
Operating expenses | 677,817 | 600,341 | 506,249 | ||||||||
Total costs and expenses | 1,220,027 | 1,058,881 | 1,055,062 | ||||||||
Operating earnings | 1,801,763 | 1,491,234 | 1,286,242 | ||||||||
Global Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 380,913 | 360,633 | 324,132 | ||||||||
Cost of revenues | 62,167 | 56,182 | 59,384 | ||||||||
Operating expenses | 131,096 | 115,281 | 131,580 | ||||||||
Total costs and expenses | 193,263 | 171,463 | 190,964 | ||||||||
Operating earnings | 187,650 | 189,170 | 133,168 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating expenses | 1,226,329 | 1,104,392 | 847,748 | ||||||||
Total costs and expenses | 1,226,329 | 1,104,392 | 847,748 | ||||||||
Operating earnings | ($1,226,329) | ($1,104,392) | ($847,748) |
Quarterly_Results_Details
Quarterly Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $926,031 | $840,149 | $851,762 | $784,761 | $795,328 | $727,830 | $707,561 | $680,029 | $3,402,703 | $2,910,748 | $2,665,436 |
Earnings before income taxes | 208,476 | 190,335 | 194,370 | 180,993 | 86,505 | 172,747 | 169,189 | 159,613 | 774,174 | 588,054 | 587,708 |
Net earnings | $147,872 | $129,002 | $129,033 | $119,526 | $60,063 | $115,344 | $112,907 | $110,040 | $525,433 | $398,354 | $397,232 |
Basic earnings per share | $0.43 | $0.38 | $0.38 | $0.35 | $0.17 | $0.34 | $0.33 | $0.32 | $1.54 | $1.16 | $1.16 |
Diluted earnings per share | $0.42 | $0.37 | $0.37 | $0.34 | $0.17 | $0.33 | $0.32 | $0.31 | $1.50 | $1.13 | $1.13 |
Schedule_II_Details
Schedule II (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $36,286 | $33,230 | $24,270 |
Additions charged to costs and expenses | 5,274 | 6,954 | 13,483 |
Additions through acquisitions | 0 | 489 | 8 |
Deductions | -16,029 | -4,387 | -4,531 |
Balance at end of period | $25,531 | $36,286 | $33,230 |