Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Apr. 04, 2015 | 1-May-15 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CERNER CORP /MO/ | |
Entity Central Index Key | 804753 | |
Document Type | 10-Q | |
Document Period End Date | 4-Apr-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -1 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 344,078,316 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $390,335 | $635,203 |
Short-term investments | 293,827 | 785,663 |
Receivables, net | 940,571 | 672,778 |
Inventory | 22,553 | 23,789 |
Prepaid expenses and other | 242,462 | 209,278 |
Deferred income taxes, net | 21,533 | 22,075 |
Total current assets | 1,911,281 | 2,348,786 |
Property and equipment, net | 1,103,400 | 924,260 |
Software development costs, net | 456,473 | 420,199 |
Goodwill | 767,222 | 320,538 |
Intangible assets, net | 741,162 | 126,636 |
Long-term investments | 204,520 | 231,147 |
Other assets | 168,547 | 158,999 |
Total assets | 5,352,605 | 4,530,565 |
Current liabilities: | ||
Accounts payable | 195,711 | 160,285 |
Current installments of long-term debt and capital lease obligations | 61,828 | 67,460 |
Deferred revenue | 301,907 | 209,655 |
Accrued payroll and tax withholdings | 182,222 | 140,230 |
Other accrued expenses | 50,631 | 56,685 |
Total current liabilities | 792,299 | 634,315 |
Long-term Debt and Capital Lease Obligations | 564,339 | 62,868 |
Deferred income taxes and other liabilities | 258,746 | 256,601 |
Deferred revenue | 26,800 | 10,813 |
Total liabilities | 1,642,184 | 964,597 |
Shareholders' Equity: | ||
Common stock, $.01 par value, 500,000,000 shares authorized, 348,590,490 shares issued at April 4, 2015 and 346,985,811 shares issued at January 3, 2015 | 3,486 | 3,470 |
Additional paid-in capital | 985,073 | 933,446 |
Retained earnings | 3,029,415 | 2,918,481 |
Treasury stock, 4,652,515 shares at April 4, 2015 and January 3, 2015 | -245,333 | -245,333 |
Accumulated other comprehensive loss, net | -62,220 | -44,096 |
Total shareholders' equity | 3,710,421 | 3,565,968 |
Total liabilities and shareholders' equity | $5,352,605 | $4,530,565 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 348,590,490 | 346,985,811 |
Treasury Stock, Shares | 4,652,515 | 4,652,515 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Revenues: | ||
System sales | $259,569 | $206,687 |
Support, maintenance and services | 718,370 | 557,429 |
Reimbursed travel | 18,150 | 20,645 |
Total revenues | 996,089 | 784,761 |
Costs and expenses: | ||
Cost of system sales | 91,499 | 65,113 |
Cost of support, maintenance and services | 59,011 | 43,341 |
Cost of reimbursed travel | 18,150 | 20,645 |
Sales and client service | 420,182 | 330,901 |
Software development (Includes amortization of $29,089 and $25,101, respectively) | 127,271 | 91,545 |
General and administrative | 113,064 | 55,213 |
Total costs and expenses | 829,177 | 606,758 |
Operating earnings | 166,912 | 178,003 |
Other income, net | 208 | 2,990 |
Earnings before income taxes | 167,120 | 180,993 |
Income taxes | -56,186 | -61,467 |
Net earnings | $110,934 | $119,526 |
Basic earnings per share | $0.32 | $0.35 |
Diluted earnings per share | $0.32 | $0.34 |
Basic weighted average shares outstanding | 343,216 | 343,701 |
Diluted weighted average shares outstanding | 351,659 | 352,230 |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||
Software development, amortization | $29,089 | $25,101 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | $110,934 | $119,526 |
Foreign currency translation adjustment and other (net of taxes (benefits) of $(1,366) and $367, respectively) | -18,510 | 3,027 |
Unrealized holding gain on available-for-sale investments (net of taxes of $245 and $62, respectively) | 386 | 97 |
Comprehensive income | $92,810 | $122,650 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Foreign currency translation adjustment and other, taxes (benefit) | ($1,366) | $367 |
Change in net unrealized holding gain (loss) on available-for-sale investments, taxes (benefit) | $245 | $62 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $110,934 | $119,526 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 100,445 | 70,094 |
Share-based compensation expense | 15,161 | 13,649 |
Provision for deferred income taxes | 4,498 | 2,490 |
Changes in assets and liabilities (net of businesses acquired): | ||
Receivables, net | -71,575 | 24,844 |
Inventory | 7,676 | 3,903 |
Prepaid expenses and other | -7,346 | -16,823 |
Accounts payable | 6,300 | -29,531 |
Accrued income taxes | -4,641 | -22,197 |
Deferred revenue | 30,138 | 22,279 |
Other accrued liabilities | 22,657 | -32,447 |
Net cash provided by operating activities | 214,247 | 155,787 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital purchases | -82,264 | -69,661 |
Capitalized software development costs | -63,067 | -44,544 |
Purchases of investments | -87,411 | -256,027 |
Sales and maturities of investments | 602,240 | 235,948 |
Purchase of other intangibles | -3,296 | -3,301 |
Acquisition of businesses, net of cash acquired | -1,372,014 | 0 |
Net cash used in investing activities | -1,005,812 | -137,585 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Long-term debt issuance | 500,000 | 0 |
Repayment of long-term debt and capital lease obligations | 0 | -66 |
Proceeds from excess tax benefits from share-based compensation | 34,939 | 14,308 |
Proceeds from exercise of options | 19,037 | 8,173 |
Treasury stock purchases | 0 | -75,026 |
Cash Grants | 0 | 48,000 |
Other | -792 | 2,894 |
Net cash provided by (used in) financing activities | 553,184 | -1,717 |
Effect of exchange rate changes on cash and cash equivalents | -6,487 | 1,066 |
Net increase (decrease) in cash and cash equivalents | -244,868 | 17,551 |
Cash and cash equivalents at beginning of period | 635,203 | 202,377 |
Cash and cash equivalents at end of period | 390,335 | 219,928 |
Summary of acquisition transactions: | ||
Fair value of tangible assets acquired | 441,993 | 0 |
Fair value of intangible assets acquired | 637,980 | 0 |
Fair value of goodwill | 450,001 | 0 |
Less: Fair value of liabilities assumed | -157,960 | 0 |
Net cash used | $1,372,014 | $0 |
Interim_Statement_Presentation
Interim Statement Presentation (Notes) | 3 Months Ended |
Apr. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Statement Presentation | Interim Statement Presentation |
Basis of Presentation | |
The condensed consolidated financial statements included herein have been prepared by Cerner Corporation (Cerner, the Company, we, us or our) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our latest annual report on Form 10-K. | |
In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. Our interim results as presented in this Form 10-Q are not necessarily indicative of the operating results for the entire year. | |
The condensed consolidated financial statements were prepared using GAAP. 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. | |
Fiscal Period End | |
Our 2015 and 2014 first quarters ended on April 4, 2015 and March 29, 2014, respectively. All references to years in these notes to condensed consolidated financial statements represent the respective three months ended on such dates, unless otherwise noted. | |
Factors Impacting Comparability of Interim Financial Statements | |
On February 2, 2015, we acquired Siemens Health Services, as further described in Note (2). The addition of the Siemens Health Services business has a significant impact on the comparability of our condensed consolidated financial statements as of and for the three months ended April 4, 2015, in relation to the comparative periods presented herein. | |
Voluntary Separation Plan | |
In the first quarter of 2015, the Company adopted a voluntary separation plan ("VSP") for eligible associates. Generally, the VSP is available to U.S. associates who meet a minimum level of combined age and tenure, excluding, among others, our executive officers. Associates who elect to participate in the VSP will receive financial benefits commensurate with their tenure and position, along with vacation payout and medical benefits. | |
We account for voluntary separation benefits in accordance with the provisions of Accounting Standards Codification (ASC) Topic 712, Compensation-Nonretirement Postemployment Benefits. Voluntary separation benefits are recorded to expense when the associates irrevocably accept the offer and the amount of the termination liability is reasonably estimable. The irrevocable acceptance period for most associates electing to participate in the VSP ends in May 2015. We expect the resulting after-tax charge in the second quarter of 2015 to approximate $32 million. | |
Recently Issued Accounting Pronouncements | |
Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 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. In April 2015, the FASB issued an exposure draft to propose a delay of the effective date for one year, which would make the effective date for the Company the first quarter of 2018. 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. | |
Debt Issuance Costs. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. ASU 2015-03 is effective for the Company in the first quarter of 2016, with early adoption permitted, and retrospective application required. The Company has chosen to adopt the standard early, effective in the first quarter of 2015. The adoption of ASU 2015-03 did not have a material impact on our condensed consolidated financial statements. Refer to Note (9) for further information regarding debt issuance costs. |
Acquisitions_Notes
Acquisitions (Notes) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Schedule of Business Acquisitions, by Acquisition [Abstract] | |||||||||||||
Business Combination Disclosure [Text Block] | 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, 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 services including support, hosting, 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 scale for R&D investment, and adds over 5,000 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 and comprise the resulting goodwill recorded. | |||||||||||||
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 dated August 5, 2014, as amended. | |||||||||||||
During the three months ended April 4, 2015, we incurred $17 million of pre-tax costs in connection with our acquisition of Siemens Health Services, which are included in general and administrative expense in our condensed consolidated statements of operations. | |||||||||||||
The acquisition of Siemens Health Services is being treated as a purchase in accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations, which requires allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed in the transaction. Our allocation of purchase price is based on management's judgment after evaluating several factors, including a preliminary valuation assessment. The allocation of purchase price is preliminary and subject to changes, which could be significant, as appraisals of tangible and intangible assets are finalized, working capital and pension obligation adjustments are agreed upon and finalized, and additional information becomes available. | |||||||||||||
The preliminary allocation of purchase price is as follows: | |||||||||||||
(in thousands) | Allocation Amount | Estimated Weighted Average Useful Life | |||||||||||
Receivables, net of allowances of $33,674 | $ | 237,081 | |||||||||||
Other current assets | 51,453 | ||||||||||||
Property and equipment | 153,226 | 20 years | |||||||||||
Goodwill | 450,001 | ||||||||||||
Intangible assets: | |||||||||||||
Customer relationships | 396,000 | 10 years | |||||||||||
Existing technologies | 201,990 | 5 years | |||||||||||
Trade names | 39,990 | 8 years | |||||||||||
Total intangible assets | 637,980 | ||||||||||||
Other non-current assets | 233 | ||||||||||||
Accounts payable | (39,488 | ) | |||||||||||
Deferred revenue (current) | (89,531 | ) | |||||||||||
Other current liabilities | (14,011 | ) | |||||||||||
Deferred revenue (non-current) | (14,930 | ) | |||||||||||
Total purchase price | $ | 1,372,014 | |||||||||||
The intangible assets in the table above are being amortized on a straight-line basis over their estimated useful lives, with such amortization included in general and administrative expense in our condensed consolidated statements of operations. | |||||||||||||
The fair value measurements of tangible and intangible assets and liabilities were based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value measurement hierarchy. Level 3 inputs included discount rates that we estimated would be used by a market participant in valuing these assets and liabilities, projections of revenues and cash flows, client attrition rates, royalty rates, and market comparables, among others. | |||||||||||||
Property and equipment was valued primarily using the sales comparison method, a form of the market approach, in which the value is derived by evaluating the market prices of assets with comparable features such as size, location, condition and age. Our analysis included multiple property categories, including land, buildings, and personal property, and included assumptions for market prices of comparable assets, and physical and economic obsolescence, among others. | |||||||||||||
Customer relationship intangible assets were valued using the excess earnings method, a form of the income approach, in which the value is derived by estimation of the after-tax cash flows specifically attributable to the customer relationships. Our analysis consisted of two customer categories, order backlog and existing customer relationships, and included assumptions for projections of revenues and expenses, contributory asset charges, discount rates, and a tax amortization benefit, among others. | |||||||||||||
Existing technology and trade name intangible assets were valued using the relief from royalty method, a form of the income approach, in which the value is derived by estimation of the after-tax royalty savings attributable to owning the assets. Assumptions in these analyses included projections of revenues, royalty rates representing costs avoided due to ownership of the assets, discount rates, and a tax amortization benefit. | |||||||||||||
Deferred revenue was valued using an income approach, in which the value was derived by estimation of the fulfillment cost, plus a normal profit margin (which excludes any selling margin), for performance obligations assumed in the acquisition. Assumptions included estimations of costs incurred to fulfill the obligations, profit margins a market participant would expect to receive, and a discount rate. | |||||||||||||
The goodwill of $450 million was allocated among our Domestic and Global operating segments, as shown below, and is expected to be deductible for tax purposes. | |||||||||||||
The changes in the carrying amounts of goodwill for the three months ended April 4, 2015 were as follows: | |||||||||||||
(In thousands) | Domestic | Global | Total | ||||||||||
Beginning balance | $ | 311,170 | $ | 9,368 | $ | 320,538 | |||||||
Goodwill recorded in connection with the Siemens Health Services acquisition | 397,708 | 52,293 | 450,001 | ||||||||||
Foreign currency translation adjustment and other | — | (3,317 | ) | (3,317 | ) | ||||||||
Ending balance at April 4, 2015 | $ | 708,878 | $ | 58,344 | $ | 767,222 | |||||||
Our condensed consolidated statement of operations for the three months ended April 4, 2015 includes revenues of $176 million attributable to the acquired business (now referred to as "Cerner Health Services") since the February 2, 2015 acquisition date. Disclosure of the earnings contribution from the Cerner Health Services business is not practicable, as we have already integrated operations in many areas. | |||||||||||||
The following table provides unaudited pro forma results of operations for the three months ended April 4, 2015 and March 29, 2014 as if the acquisition had been completed on the first day of our 2014 fiscal year. | |||||||||||||
Three Months Ended | |||||||||||||
(In thousands, except per share data) | 2015 | 2014 | |||||||||||
Pro forma revenues | $ | 1,089,769 | $ | 1,065,800 | |||||||||
Pro forma net earnings | 114,333 | 99,089 | |||||||||||
Pro forma diluted earnings per share | 0.33 | 0.28 | |||||||||||
These pro forma results are based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the periods presented, nor are they indicative of our consolidated results of operations in future periods. The pro forma results for the three months ended April 4, 2015 include pre-tax adjustments for amortization of intangible assets, fair value adjustments for deferred revenue, and the elimination of acquisition costs of $7 million, $6 million, and $17 million, respectively. Pro forma results for the three months ended March 29, 2014 include pre-tax adjustments for amortization of intangible assets and fair value adjustments for deferred revenue of $22 million and $19 million, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||
Apr. 04, 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 April 4, 2015: | |||||||||||||||
(In thousands) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Description | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | Cash equivalents | $ | 29,679 | $ | — | $ | — | ||||||||
Time deposits | Cash equivalents | — | 8,398 | — | |||||||||||
Government and corporate bonds | Cash equivalents | — | 1,035 | — | |||||||||||
Time deposits | Short-term investments | — | 27,246 | — | |||||||||||
Commercial paper | Short-term investments | — | 2,599 | — | |||||||||||
Government and corporate bonds | Short-term investments | — | 263,982 | — | |||||||||||
Government and corporate bonds | Long-term investments | — | 191,969 | — | |||||||||||
The following table details our financial assets measured and recorded at fair value on a recurring basis at January 3, 2015: | |||||||||||||||
(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 | — | |||||||||||
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. We estimate the fair value of our long-term, variable rate debt using a Level 3 discounted cash flow analysis based on LIBOR rate forward curves. The fair value of our long-term debt, including current maturities, at April 4, 2015 and January 3, 2015 was approximately $545 million and $15 million, respectively. The carrying amount of such debt at April 4, 2015 and January 3, 2015 was $514 million and $14 million, respectively. |
Investments
Investments | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Investments [Abstract] | |||||||||||||||||
Investments | Investments | ||||||||||||||||
Available-for-sale investments at April 4, 2015 were as follows: | |||||||||||||||||
(In thousands) | Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 29,679 | $ | — | $ | — | $ | 29,679 | |||||||||
Time deposits | 8,398 | — | — | 8,398 | |||||||||||||
Government and corporate bonds | 1,035 | — | — | 1,035 | |||||||||||||
Total cash equivalents | 39,112 | — | — | 39,112 | |||||||||||||
Short-term investments: | |||||||||||||||||
Time deposits | 27,246 | — | — | 27,246 | |||||||||||||
Commercial paper | 2,600 | — | (1 | ) | 2,599 | ||||||||||||
Government and corporate bonds | 263,937 | 105 | (60 | ) | 263,982 | ||||||||||||
Total short-term investments | 293,783 | 105 | (61 | ) | 293,827 | ||||||||||||
Long-term investments: | |||||||||||||||||
Government and corporate bonds | 191,890 | 125 | (46 | ) | 191,969 | ||||||||||||
Total available-for-sale investments | $ | 524,785 | $ | 230 | $ | (107 | ) | $ | 524,908 | ||||||||
Available-for-sale investments at January 3, 2015 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 | ||||||||
We sold available-for-sale investments for proceeds of $55 million during the three months ended March 29, 2014, resulting in insignificant gains. |
Receivables
Receivables | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Receivables | Receivables | |||||||
A summary of net receivables is as follows: | ||||||||
(In thousands) | April 4, 2015 | January 3, 2015 | ||||||
Gross accounts receivable | $ | 948,057 | $ | 641,160 | ||||
Less: Allowance for doubtful accounts | 53,934 | 25,531 | ||||||
Accounts receivable, net of allowance | 894,123 | 615,629 | ||||||
Current portion of lease receivables | 46,448 | 57,149 | ||||||
Total receivables, net | $ | 940,571 | $ | 672,778 | ||||
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 April 4, 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 April 4, 2015 and January 3, 2015. 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 the first three months of 2015 and 2014, we received total client cash collections of $981 million and $868 million, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 04, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
We determine the tax provision for interim periods using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. | |
Our effective tax rate was 33.6% and 34.0% for the first three months of 2015 and 2014, respectively. This slight decrease in the effective tax rate in 2015 results from the favorability of net discrete items recorded in the first quarter of 2015 as compared to the first quarter of 2014. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||||||||||||||||
Apr. 04, 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: | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Earnings | Shares | Per-Share | Earnings | Shares | Per-Share | |||||||||||||||||
(In thousands, except per share data) | (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Income available to common shareholders | $ | 110,934 | 343,216 | $ | 0.32 | $ | 119,526 | 343,701 | $ | 0.35 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options and non-vested shares | — | 8,443 | — | 8,529 | ||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Income available to common shareholders including assumed conversions | $ | 110,934 | 351,659 | $ | 0.32 | $ | 119,526 | 352,230 | $ | 0.34 | ||||||||||||
For the three months ended April 4, 2015 and March 29, 2014, options to purchase 1.0 million and 3.7 million shares of common stock at per share prices ranging from $51.97 to $70.98 and $41.08 to $60.37, respectively, were outstanding but were not included in the computation of diluted earnings per share because they were anti-dilutive. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share-Based Compensation and Equity | Share-Based Compensation | ||||||||||||
Stock Options | |||||||||||||
Options activity for the three months ended April 4, 2015 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 | 24,629 | $ | 27 | ||||||||||
Granted | 658 | 70.15 | |||||||||||
Exercised | (1,815 | ) | 13.85 | ||||||||||
Forfeited and expired | (51 | ) | 43.81 | ||||||||||
Outstanding as of April 4, 2015 | 23,421 | 29.2 | $ | 1,020,443 | 6.14 | ||||||||
Exercisable as of April 4, 2015 | 13,117 | $ | 15.37 | $ | 752,922 | 4.64 | |||||||
The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the three months ended April 4, 2015 were as follows: | |||||||||||||
Expected volatility (%) | 26.4 | % | |||||||||||
Expected term (yrs) | 7 | ||||||||||||
Risk-free rate (%) | 1.7 | % | |||||||||||
Fair value per option | $ | 21.72 | |||||||||||
As of April 4, 2015, there was $140 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 3.30 years. | |||||||||||||
Non-vested Shares | |||||||||||||
Non-vested share activity for the three months ended April 4, 2015 was as follows: | |||||||||||||
(In thousands, except per share data) | Number of Shares | Weighted-Average | |||||||||||
Grant Date Fair Value | |||||||||||||
Outstanding at beginning of year | 506 | $ | 46.21 | ||||||||||
Granted | 156 | 70.64 | |||||||||||
Vested | (11 | ) | 42.75 | ||||||||||
Forfeited | (32 | ) | 31.94 | ||||||||||
Outstanding as of April 4, 2015 | 619 | $ | 53.22 | ||||||||||
As of April 4, 2015, there was $19 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 1.95 years. | |||||||||||||
The following table presents total compensation expense recognized with respect to stock options, non-vested shares and our associate stock purchase plan: | |||||||||||||
Three Months Ended | |||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||
Stock option and non-vested share compensation expense | $ | 15,161 | $ | 13,649 | |||||||||
Associate stock purchase plan expense | 1,388 | 1,283 | |||||||||||
Amounts capitalized in software development costs, net of amortization | (92 | ) | (164 | ) | |||||||||
Amounts charged against earnings, before income tax benefit | $ | 16,457 | $ | 14,768 | |||||||||
Amount of related income tax benefit recognized in earnings | $ | 5,533 | $ | 5,184 | |||||||||
Indebtedness_Notes
Indebtedness (Notes) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Debt Table [Abstract] | ||||||||
Debt and Capital Leases Disclosures [Text Block] | Long-Term Debt and Capital Lease Obligations | |||||||
The following is a summary of indebtedness outstanding: | ||||||||
(In thousands) | April 4, 2015 | January 3, 2015 | ||||||
Note agreement, 5.54% | $ | 13,853 | $ | 14,233 | ||||
Senior Notes | 500,000 | — | ||||||
Capital lease obligations | 113,106 | 116,095 | ||||||
Debt and capital lease obligations | 626,959 | 130,328 | ||||||
Less: debt issuance costs | (792 | ) | — | |||||
Debt and capital lease obligations, net | 626,167 | 130,328 | ||||||
Less: current portion | (61,828 | ) | (67,460 | ) | ||||
Long-term debt and capital lease obligations | $ | 564,339 | $ | 62,868 | ||||
In January 2015, we issued $500 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 million of 3.18% Series 2015-A Notes due February 15, 2022, $200 million of 3.58% Series 2015-B Notes due February 14, 2025, and $75 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. As of April 4, 2015, the interest rate was 1.26% for the current interest period based on the three-month floating LIBOR rate. The debt issuance costs in the table above relate to the issuance of these Notes. 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. | ||||||||
As of April 4, 2015, we were in compliance with all debt covenants. |
Hedging_Activities
Hedging Activities | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Hedging Activities | Hedging Activities | ||||||||
The following table represents the fair value of our net investment hedge included within the condensed consolidated balance sheets: | |||||||||
Fair Value | |||||||||
(in thousands) | Balance Sheet Classification | April 4, 2015 | January 3, 2015 | ||||||
Derivatives Designated | |||||||||
Total net investment hedge | Short-term liabilities | $ | 13,853 | $ | 14,233 | ||||
The following table represents the related unrealized gain or loss, net of related income tax effects, on the net investment hedge recognized in comprehensive income: | |||||||||
(In thousands) | Net Unrealized Gain (Loss) | ||||||||
For the Three Months Ended | |||||||||
Derivatives Designated | Balance Sheet Classification | 2015 | 2014 | ||||||
Net investment hedge | Short-term liabilities | $ | 220 | $ | (91 | ) | |||
Net investment hedge | Long-term liabilities | — | (91 | ) | |||||
Total net investment hedge | $ | 220 | $ | (182 | ) | ||||
Contingencies
Contingencies | 3 Months Ended |
Apr. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies Disclosure | 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 million and $38 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. 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. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Reporting | Segment Reporting | |||||||||||||||
We have two operating segments, Domestic and Global. 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, expenses associated with our managed services business, marketing expenses, communications expenses and unreimbursed travel expenses. “Other” includes expenses that have not been allocated to the operating segments, such as software development, general and administrative expenses, acquisition costs and related adjustments, share-based compensation expense, and certain amortization and depreciation. Performance of the segments is assessed at the operating earnings level by our chief operating decision maker, who is our Chief Executive Officer. Items such as interest, income taxes, capital expenditures and total assets are managed at the consolidated level and thus are not included in our operating segment disclosures. Accounting policies for each of the reportable segments are the same as those used on a consolidated basis. | ||||||||||||||||
In connection with our acquisition of the Cerner Health Services business, we commenced an evaluation of our methodology for allocating operating expenses to our reportable segments. Effective for our first quarter of 2015, certain expenses historically reported in “Other” have been allocated to the geographic segments. This new allocation reflects the manner in which the business is now managed, subsequent to the acquisition. While this reporting change did not impact our consolidated results, the segment data has been recast to be consistent for all periods presented. | ||||||||||||||||
The following table presents a summary of our operating segments and other expense for the three months ended April 4, 2015 and March 29, 2014: | ||||||||||||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
Three Months Ended 2015 | ||||||||||||||||
Revenues | $ | 870,507 | $ | 125,582 | $ | — | $ | 996,089 | ||||||||
Cost of revenues | 142,717 | 25,943 | — | 168,660 | ||||||||||||
Operating expenses | 361,086 | 50,571 | 248,860 | 660,517 | ||||||||||||
Total costs and expenses | 503,803 | 76,514 | 248,860 | 829,177 | ||||||||||||
Operating earnings (loss) | $ | 366,704 | $ | 49,068 | $ | (248,860 | ) | $ | 166,912 | |||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
Three Months Ended 2014 | ||||||||||||||||
Revenues | $ | 697,704 | $ | 87,057 | $ | — | $ | 784,761 | ||||||||
Cost of revenues | 115,345 | 13,754 | — | 129,099 | ||||||||||||
Operating expenses | 273,990 | 45,069 | 158,600 | 477,659 | ||||||||||||
Total costs and expenses | 389,335 | 58,823 | 158,600 | 606,758 | ||||||||||||
Operating earnings (loss) | $ | 308,369 | $ | 28,234 | $ | (158,600 | ) | $ | 178,003 | |||||||
Acquisitions_Purchase_Price_Al
Acquisitions Purchase Price Allocation (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Business Combinations [Abstract] | |||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of purchase price is as follows: | ||||||
(in thousands) | Allocation Amount | Estimated Weighted Average Useful Life | |||||
Receivables, net of allowances of $33,674 | $ | 237,081 | |||||
Other current assets | 51,453 | ||||||
Property and equipment | 153,226 | 20 years | |||||
Goodwill | 450,001 | ||||||
Intangible assets: | |||||||
Customer relationships | 396,000 | 10 years | |||||
Existing technologies | 201,990 | 5 years | |||||
Trade names | 39,990 | 8 years | |||||
Total intangible assets | 637,980 | ||||||
Other non-current assets | 233 | ||||||
Accounts payable | (39,488 | ) | |||||
Deferred revenue (current) | (89,531 | ) | |||||
Other current liabilities | (14,011 | ) | |||||
Deferred revenue (non-current) | (14,930 | ) | |||||
Total purchase price | $ | 1,372,014 | |||||
Acquisitions_Goodwill_Rollforw
Acquisitions Goodwill Rollforward (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Goodwill Disclosure [Text Block] | The changes in the carrying amounts of goodwill for the three months ended April 4, 2015 were as follows: | ||||||||||||
(In thousands) | Domestic | Global | Total | ||||||||||
Beginning balance | $ | 311,170 | $ | 9,368 | $ | 320,538 | |||||||
Goodwill recorded in connection with the Siemens Health Services acquisition | 397,708 | 52,293 | 450,001 | ||||||||||
Foreign currency translation adjustment and other | — | (3,317 | ) | (3,317 | ) | ||||||||
Ending balance at April 4, 2015 | $ | 708,878 | $ | 58,344 | $ | 767,222 | |||||||
Acquisitions_Pro_Forma_Tables
Acquisitions Pro Forma (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Pro Formas [Abstract] | |||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides unaudited pro forma results of operations for the three months ended April 4, 2015 and March 29, 2014 as if the acquisition had been completed on the first day of our 2014 fiscal year. | ||||||||
Three Months Ended | |||||||||
(In thousands, except per share data) | 2015 | 2014 | |||||||
Pro forma revenues | $ | 1,089,769 | $ | 1,065,800 | |||||
Pro forma net earnings | 114,333 | 99,089 | |||||||
Pro forma diluted earnings per share | 0.33 | 0.28 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||
Apr. 04, 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 April 4, 2015: | ||||||||||||||
(In thousands) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Description | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | Cash equivalents | $ | 29,679 | $ | — | $ | — | ||||||||
Time deposits | Cash equivalents | — | 8,398 | — | |||||||||||
Government and corporate bonds | Cash equivalents | — | 1,035 | — | |||||||||||
Time deposits | Short-term investments | — | 27,246 | — | |||||||||||
Commercial paper | Short-term investments | — | 2,599 | — | |||||||||||
Government and corporate bonds | Short-term investments | — | 263,982 | — | |||||||||||
Government and corporate bonds | Long-term investments | — | 191,969 | — | |||||||||||
The following table details our financial assets measured and recorded at fair value on a recurring basis at January 3, 2015: | |||||||||||||||
(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 | — | |||||||||||
Investments_Investments_Tables
Investments Investments (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Investments [Abstract] | |||||||||||||||||
Schedule of available-for-sale investments | Available-for-sale investments at April 4, 2015 were as follows: | ||||||||||||||||
(In thousands) | Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 29,679 | $ | — | $ | — | $ | 29,679 | |||||||||
Time deposits | 8,398 | — | — | 8,398 | |||||||||||||
Government and corporate bonds | 1,035 | — | — | 1,035 | |||||||||||||
Total cash equivalents | 39,112 | — | — | 39,112 | |||||||||||||
Short-term investments: | |||||||||||||||||
Time deposits | 27,246 | — | — | 27,246 | |||||||||||||
Commercial paper | 2,600 | — | (1 | ) | 2,599 | ||||||||||||
Government and corporate bonds | 263,937 | 105 | (60 | ) | 263,982 | ||||||||||||
Total short-term investments | 293,783 | 105 | (61 | ) | 293,827 | ||||||||||||
Long-term investments: | |||||||||||||||||
Government and corporate bonds | 191,890 | 125 | (46 | ) | 191,969 | ||||||||||||
Total available-for-sale investments | $ | 524,785 | $ | 230 | $ | (107 | ) | $ | 524,908 | ||||||||
Available-for-sale investments at January 3, 2015 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 | ||||||||
Receivables_Tables
Receivables (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Summary of Net Receivables | A summary of net receivables is as follows: | |||||||
(In thousands) | April 4, 2015 | January 3, 2015 | ||||||
Gross accounts receivable | $ | 948,057 | $ | 641,160 | ||||
Less: Allowance for doubtful accounts | 53,934 | 25,531 | ||||||
Accounts receivable, net of allowance | 894,123 | 615,629 | ||||||
Current portion of lease receivables | 46,448 | 57,149 | ||||||
Total receivables, net | $ | 940,571 | $ | 672,778 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||||||||||||||
Apr. 04, 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: | |||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Earnings | Shares | Per-Share | Earnings | Shares | Per-Share | |||||||||||||||||
(In thousands, except per share data) | (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Income available to common shareholders | $ | 110,934 | 343,216 | $ | 0.32 | $ | 119,526 | 343,701 | $ | 0.35 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||
Stock options and non-vested shares | — | 8,443 | — | 8,529 | ||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Income available to common shareholders including assumed conversions | $ | 110,934 | 351,659 | $ | 0.32 | $ | 119,526 | 352,230 | $ | 0.34 | ||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule Of Stock Options Activity | Options activity for the three months ended April 4, 2015 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 | 24,629 | $ | 27 | ||||||||||
Granted | 658 | 70.15 | |||||||||||
Exercised | (1,815 | ) | 13.85 | ||||||||||
Forfeited and expired | (51 | ) | 43.81 | ||||||||||
Outstanding as of April 4, 2015 | 23,421 | 29.2 | $ | 1,020,443 | 6.14 | ||||||||
Exercisable as of April 4, 2015 | 13,117 | $ | 15.37 | $ | 752,922 | 4.64 | |||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the three months ended April 4, 2015 were as follows: | ||||||||||||
Expected volatility (%) | 26.4 | % | |||||||||||
Expected term (yrs) | 7 | ||||||||||||
Risk-free rate (%) | 1.7 | % | |||||||||||
Fair value per option | $ | 21.72 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Activity | Non-vested share activity for the three months ended April 4, 2015 was as follows: | ||||||||||||
(In thousands, except per share data) | Number of Shares | Weighted-Average | |||||||||||
Grant Date Fair Value | |||||||||||||
Outstanding at beginning of year | 506 | $ | 46.21 | ||||||||||
Granted | 156 | 70.64 | |||||||||||
Vested | (11 | ) | 42.75 | ||||||||||
Forfeited | (32 | ) | 31.94 | ||||||||||
Outstanding as of April 4, 2015 | 619 | $ | 53.22 | ||||||||||
Compensation Expense Recognized In The Condensed Consolidated Statements Of Operations | The following table presents total compensation expense recognized with respect to stock options, non-vested shares and our associate stock purchase plan: | ||||||||||||
Three Months Ended | |||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||
Stock option and non-vested share compensation expense | $ | 15,161 | $ | 13,649 | |||||||||
Associate stock purchase plan expense | 1,388 | 1,283 | |||||||||||
Amounts capitalized in software development costs, net of amortization | (92 | ) | (164 | ) | |||||||||
Amounts charged against earnings, before income tax benefit | $ | 16,457 | $ | 14,768 | |||||||||
Amount of related income tax benefit recognized in earnings | $ | 5,533 | $ | 5,184 | |||||||||
Indebtedness_Tables
Indebtedness (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Debt Table [Abstract] | ||||||||
Schedule of Debt [Table Text Block] | The following is a summary of indebtedness outstanding: | |||||||
(In thousands) | April 4, 2015 | January 3, 2015 | ||||||
Note agreement, 5.54% | $ | 13,853 | $ | 14,233 | ||||
Senior Notes | 500,000 | — | ||||||
Capital lease obligations | 113,106 | 116,095 | ||||||
Debt and capital lease obligations | 626,959 | 130,328 | ||||||
Less: debt issuance costs | (792 | ) | — | |||||
Debt and capital lease obligations, net | 626,167 | 130,328 | ||||||
Less: current portion | (61,828 | ) | (67,460 | ) | ||||
Long-term debt and capital lease obligations | $ | 564,339 | $ | 62,868 | ||||
Hedging_Activities_Tables
Hedging Activities (Tables) | 3 Months Ended | ||||||||
Apr. 04, 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 table represents the fair value of our net investment hedge included within the condensed consolidated balance sheets: | ||||||||
Fair Value | |||||||||
(in thousands) | Balance Sheet Classification | April 4, 2015 | January 3, 2015 | ||||||
Derivatives Designated | |||||||||
Total net investment hedge | Short-term liabilities | $ | 13,853 | $ | 14,233 | ||||
The following table represents the related unrealized gain or loss, net of related income tax effects, on the net investment hedge recognized in comprehensive income: | |||||||||
(In thousands) | Net Unrealized Gain (Loss) | ||||||||
For the Three Months Ended | |||||||||
Derivatives Designated | Balance Sheet Classification | 2015 | 2014 | ||||||
Net investment hedge | Short-term liabilities | $ | 220 | $ | (91 | ) | |||
Net investment hedge | Long-term liabilities | — | (91 | ) | |||||
Total net investment hedge | $ | 220 | $ | (182 | ) | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summary of the Operating Information | The following table presents a summary of our operating segments and other expense for the three months ended April 4, 2015 and March 29, 2014: | |||||||||||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
Three Months Ended 2015 | ||||||||||||||||
Revenues | $ | 870,507 | $ | 125,582 | $ | — | $ | 996,089 | ||||||||
Cost of revenues | 142,717 | 25,943 | — | 168,660 | ||||||||||||
Operating expenses | 361,086 | 50,571 | 248,860 | 660,517 | ||||||||||||
Total costs and expenses | 503,803 | 76,514 | 248,860 | 829,177 | ||||||||||||
Operating earnings (loss) | $ | 366,704 | $ | 49,068 | $ | (248,860 | ) | $ | 166,912 | |||||||
(In thousands) | Domestic | Global | Other | Total | ||||||||||||
Three Months Ended 2014 | ||||||||||||||||
Revenues | $ | 697,704 | $ | 87,057 | $ | — | $ | 784,761 | ||||||||
Cost of revenues | 115,345 | 13,754 | — | 129,099 | ||||||||||||
Operating expenses | 273,990 | 45,069 | 158,600 | 477,659 | ||||||||||||
Total costs and expenses | 389,335 | 58,823 | 158,600 | 606,758 | ||||||||||||
Operating earnings (loss) | $ | 308,369 | $ | 28,234 | $ | (158,600 | ) | $ | 178,003 | |||||||
Interim_Statement_Presentation1
Interim Statement Presentation Interim Statement Presentation (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Apr. 04, 2015 |
Interim Statement Presentation [Line Items] | |
Fiscal Period, Policy [Policy Text Block] | Our 2015 and 2014 first quarters ended on AprilB 4, 2015 and MarchB 29, 2014, respectively. All references to years in these notes to condensed consolidated financial statements represent the respective three months ended on such dates, unless otherwise noted. |
Description of Postemployment Benefits | Associates who elect to participate in the VSP will receive financial benefits commensurate with their tenure and position, along with vacation payout and medical benefits. |
Postemployment Benefit Plans, Policy [Policy Text Block] | We account for voluntary separation benefits in accordance with the provisions of Accounting Standards Codification (ASC) Topic 712, Compensation-Nonretirement Postemployment Benefits. Voluntary separation benefits are recorded to expense when the associates irrevocably accept the offer and the amount of the termination liability is reasonably estimable |
Estimated Severance Benefits | $32 |
Siemens Health Services [Member] | |
Interim Statement Presentation [Line Items] | |
Business Acquisition, Effective Date of Acquisition | 2-Feb-15 |
ASU 2014-09 Revenue from Contracts with Customers [Member] | |
Interim Statement Presentation [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 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. In April 2015, the FASB issued an exposure draft to propose a delay of the effective date for one year, which would make the effective date for the Company the first quarter of 2018. 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. |
ASU 2015-03 Interest - Imputation of Interest [Member] | |
Interim Statement Presentation [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. ASU 2015-03 is effective for the Company in the first quarter of 2016, with early adoption permitted, and retrospective application required. The Company has chosen to adopt the standard early, effective in the first quarter of 2015. The adoption of ASU 2015-03 did not have a material impact on our condensed consolidated financial statements. Refer to Note (9) for further information regarding debt issuance costs. |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | |||
Apr. 04, 2015 | Mar. 29, 2014 | Feb. 02, 2015 | Jan. 03, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $767,222,000 | $320,538,000 | ||
Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | 2-Feb-15 | |||
Business Acquisition, Name of Acquired Entity | Siemens Health Services | |||
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 scale for R&D investment, and adds over 5,000 highly-skilled associates that will enhance our capabilities. | |||
Business Combination, Goodwill Recognized, Description | 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 and comprise the resulting goodwill recorded. | |||
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 services including support, hosting, managed services, implementation services, and strategic consulting | |||
Business Combination, Consideration Transferred | 1,370,000,000 | |||
Business Combination, Base Purchase Price | 1,300,000,000 | |||
Business Acquisition, Date of Acquisition Agreement | 5-Aug-14 | |||
Business Acquisition, Transaction Costs | 17,000,000 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Reasons | The allocation of purchase price is preliminary and subject to changes, which could be significant, as appraisals of tangible and intangible assets are finalized, working capital and pension obligation adjustments are agreed upon and finalized, and additional information becomes available. | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 237,081,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Allowance | 33,674,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Assets | 51,453,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 153,226,000 | |||
Business Combination, Recognized Identifiable Assets Acquired, PP&E, Weighted Average Useful Life | 20 years | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 637,980,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 233,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | -39,488,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | -89,531,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | -14,011,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Deferred Revenue | -14,930,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 1,372,014,000 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 450,001,000 | |||
Goodwill | 767,222,000 | 450,001,000 | 320,538,000 | |
Goodwill, Acquired During Period | 450,001,000 | |||
Goodwill, Translation Adjustments | -3,317,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 176,000,000 | |||
Business Combination, Pro Forma Information, Disclosure Impracticable | Disclosure of the earnings contribution from the Cerner Health Services business is not practicable, as we have already integrated operations in many areas. | |||
Business Acquisition, Pro Forma Revenue | 1,089,769,000 | 1,065,800,000 | ||
Business Acquisition, Pro Forma Net Income (Loss) | 114,333,000 | 99,089,000 | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $0.33 | $0.28 | ||
Business Acquisition, Pro Forma Information, Description | These pro forma results are based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the periods presented, nor are they indicative of our consolidated results of operations in future periods. | |||
Domestic Segment | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 708,878,000 | 311,170,000 | ||
Goodwill, Acquired During Period | 397,708,000 | |||
Goodwill, Translation Adjustments | 0 | |||
Global Segment | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 58,344,000 | 9,368,000 | ||
Goodwill, Acquired During Period | 52,293,000 | |||
Goodwill, Translation Adjustments | -3,317,000 | |||
Customer Relationships [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 396,000,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Developed Technology Rights [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 201,990,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
Trade Names [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 39,990,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | |||
Intangible Amortization Adjustment [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related Adjustments | 7,000,000 | 22,000,000 | ||
Fair Value Adjustment to Deferred Revenue [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related Adjustments | 6,000,000 | 19,000,000 | ||
Acquisition-related Costs [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related Adjustments | $17,000,000 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt, including current maturities | $545 | $15 |
Carrying amount of long-term debt | $514 | $14 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
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 | $524,908 | $1,319,392 |
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 | 29,679 | 189,137 |
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 | 8,398 | 9,989 |
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 | |
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 | 1,035 | |
Short-term investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 293,827 | 785,663 |
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 | 27,246 | 52,829 |
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 | 2,599 | 435,544 |
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 | 263,982 | 297,290 |
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 | $191,969 | $218,965 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2014 |
Investments [Abstract] | |
Proceeds from Sale of Available-for-sale Securities | $55 |
Investments_Details
Investments (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | $524,785 | $1,319,899 |
Gross Unrealized Gains | 230 | 96 |
Gross Unrealized Losses | -107 | -603 |
Fair Value | 524,908 | 1,319,392 |
Cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 39,112 | 314,764 |
Fair Value | 39,112 | 314,764 |
Cash equivalents [Member] | Money market funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 29,679 | 189,137 |
Fair Value | 29,679 | 189,137 |
Cash equivalents [Member] | Time deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 8,398 | 9,989 |
Fair Value | 8,398 | 9,989 |
Cash equivalents [Member] | Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 115,638 | |
Fair Value | 115,638 | |
Cash equivalents [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 1,035 | |
Fair Value | 1,035 | |
Short-term investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 293,783 | 785,696 |
Gross Unrealized Gains | 105 | 70 |
Gross Unrealized Losses | -61 | -103 |
Fair Value | 293,827 | 785,663 |
Short-term investments [Member] | Time deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 27,246 | 52,830 |
Gross Unrealized Losses | -1 | |
Fair Value | 27,246 | 52,829 |
Short-term investments [Member] | Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 2,600 | 435,555 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | -1 | -12 |
Fair Value | 2,599 | 435,544 |
Short-term investments [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 263,937 | 297,311 |
Gross Unrealized Gains | 105 | 69 |
Gross Unrealized Losses | -60 | -90 |
Fair Value | 263,982 | 297,290 |
Long-term investments [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 191,890 | 219,439 |
Gross Unrealized Gains | 125 | 26 |
Gross Unrealized Losses | -46 | -500 |
Fair Value | $191,969 | $218,965 |
Receivables_Narrative_Details
Receivables (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Receivables [Abstract] | ||
Client cash collections | $981 | $868 |
Receivables_Summary_Of_Net_Rec
Receivables (Summary Of Net Receivables) (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Gross accounts receivable | $948,057 | $641,160 |
Less: Allowance for doubtful accounts | 53,934 | 25,531 |
Accounts receivable, net of allowance | 894,123 | 615,629 |
Current portion of lease receivables | 46,448 | 57,149 |
Total receivables, net | $940,571 | $672,778 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 33.60% | 34.00% |
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 | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Income available to common shareholders, basic | $110,934 | $119,526 |
Income available to common shareholders including assumed conversions, diluted | $110,934 | $119,526 |
Basic weighted average shares outstanding | 343,216 | 343,701 |
Stock options and non-vested shares, incremental shares | 8,443 | 8,529 |
Diluted weighted average shares outstanding | 351,659 | 352,230 |
Basic earnings per share | $0.32 | $0.35 |
Diluted earnings per share | $0.32 | $0.34 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 1 | 3.7 |
Antidilutive securities excluded from computation of earnings per share, exercise price, lower range limit | $51.97 | $41.08 |
Antidilutive securities excluded from computation of earnings per share, exercise price, upper range limit | $70.98 | $60.37 |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule Of Stock Options Activity) (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at beginning of year, number of shares | 24,629 |
Outstanding at beginning of year, weighted-average exercise price | $27 |
Granted, number of shares | 658 |
Granted, weighted-average exercise price | $70.15 |
Exercised, number of shares | -1,815 |
Exercised, weighted-average exercise price | $13.85 |
Forfeited and expired, number of shares | -51 |
Forfeited and expired, weighted-average exercise price | $43.81 |
Outstanding end of year, number of shares | 23,421 |
Outstanding at end of year, weighted-average exercise price | $29.20 |
Outstanding at end of year, aggregate intrinsic value | $1,020,443 |
Outstanding at end of year, weighted-average remaining contractual term | 6 years 1 month 19 days |
Exercisable at end of year, number of shares | 13,117 |
Exercisable at end of year, weighted-average exercise price | $15.37 |
Exercisable at end of year, aggregate intrinsic value | $752,922 |
Exercisable at end of year, weighted-average remaining contractual term | 4 years 7 months 19 days |
ShareBased_Compensation_Schedu1
Share-Based Compensation (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details) (USD $) | 3 Months Ended |
Apr. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected volatility (%) | 26.40% |
Expected term (yrs) | 7 years |
Risk-free rate (%) | 1.70% |
Fair value per option | $21.72 |
ShareBased_Compensation_Schedu2
Share-Based Compensation (Schedule Of Non-Vested Shares Activity) (Details) (Restricted Stock [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at beginning of year, number of shares | 506 |
Outstanding at beginning of year, weighted-average grant date fair value | $46.21 |
Granted, number of shares | 156 |
Granted, weighted-average grant date fair value | $70.64 |
Vested, number of shares | -11 |
Vested, weighted-average grant date fair value | $42.75 |
Forfeited, number of shares | -32 |
Forfeited, weighted-average grant date fair value | $31.94 |
Outstanding at end of year, number of shares | 619 |
Outstanding at end of year, weighted-average grant date fair value | $53.22 |
ShareBased_Compensation_Compen
Share-Based Compensation (Compensation Expense Recognized In The Condensed Consolidated Statements Of Operations) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts charged against earnings, before income tax benefit | $16,457 | $14,768 |
Amount of related income tax benefit recognized in earnings | 5,533 | 5,184 |
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 | 15,161 | 13,649 |
Associate stock purchase plan expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts charged against earnings, before income tax benefit | 1,388 | 1,283 |
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 | ($92) | ($164) |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Apr. 04, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 19 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | 140 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period of recognition for remaining share-based compensation expense | 3 years 3 months 18 days |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period of recognition for remaining share-based compensation expense | 1 year 11 months 12 days |
Indebtedness_Details
Indebtedness (Details) (USD $) | 3 Months Ended | ||
Apr. 04, 2015 | Jan. 29, 2015 | Jan. 03, 2015 | |
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $626,959,000 | $130,328,000 | |
Debt Issuance Cost | -792,000 | 0 | |
Long-term Debt and Capital Lease Obligations, Net of Debt Issuance Costs | 626,167,000 | 130,328,000 | |
Long-term Debt and Capital Lease Obligations, Current | -61,828,000 | -67,460,000 | |
Long-term Debt and Capital Lease Obligations | 564,339,000 | 62,868,000 | |
Note Agreement, 5.54% [Member] | |||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | 13,853,000 | 14,233,000 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | 500,000,000 | 0 | |
Debt Instrument, Face Amount | 500,000,000 | ||
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 | ||
Series 2015-A [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 225,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.18% | ||
Debt Instrument, Maturity Date | 15-Feb-22 | ||
Debt Instrument, Frequency of Periodic Payment | payable semiannually | ||
Debt Instrument, Date of First Required Payment | 15-Aug-15 | ||
Series 2015-B [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 200,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.58% | ||
Debt Instrument, Maturity Date | 14-Feb-25 | ||
Series 2015-C [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 75,000,000 | ||
Debt Instrument, Maturity Date | 15-Feb-22 | ||
Debt Instrument, Frequency of Periodic Payment | payable quarterly | ||
Debt Instrument, Date of First Required Payment | 15-May-15 | ||
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $113,106,000 | $116,095,000 | |
London Interbank Offered Rate (LIBOR) [Member] | Series 2015-C [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Adjusted LIBOR Rate | ||
Debt Instrument, Interest Rate During Period | 1.26% |
Hedging_Activities_Fair_Value_
Hedging Activities (Fair Value Of Net Investment Hedge Within Condensed Consolidated Balance Sheets And Unrealized Gain Or Loss) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Jan. 03, 2015 |
Derivatives, Fair Value [Line Items] | |||
Fair Value | $13,853 | $14,233 | |
Net Unrealized Gain (Loss) | 220 | -182 | |
Short-term liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Net Unrealized Gain (Loss) | 220 | -91 | |
Long-term liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Net Unrealized Gain (Loss) | $0 | ($91) |
Contingencies_Details
Contingencies (Details) | 3 Months Ended |
Apr. 04, 2015 | |
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 million and $38 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 |
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 |
Segment_Reporting_Summary_Of_T
Segment Reporting (Summary Of The Operating Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Segment Reporting Information [Line Items] | ||
Description of Effect on Previously Reported Segment Information for Change in Composition of Reportable Segments | In connection with our acquisition of the Cerner Health Services business, we commenced an evaluation of our methodology for allocating operating expenses to our reportable segments. Effective for our first quarter of 2015, certain expenses historically reported in bOtherb have been allocated to the geographic segments. This new allocation reflects the manner in which the business is now managed, subsequent to the acquisition. While this reporting change did not impact our consolidated results, the segment data has been recast to be consistent for all periods presented | |
Revenue | $996,089 | $784,761 |
Cost of revenues | 168,660 | 129,099 |
Operating expenses | 660,517 | 477,659 |
Total costs and expenses | 829,177 | 606,758 |
Operating earnings (loss) | 166,912 | 178,003 |
Domestic Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 870,507 | 697,704 |
Cost of revenues | 142,717 | 115,345 |
Operating expenses | 361,086 | 273,990 |
Total costs and expenses | 503,803 | 389,335 |
Operating earnings (loss) | 366,704 | 308,369 |
Global Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 125,582 | 87,057 |
Cost of revenues | 25,943 | 13,754 |
Operating expenses | 50,571 | 45,069 |
Total costs and expenses | 76,514 | 58,823 |
Operating earnings (loss) | 49,068 | 28,234 |
Other | ||
Segment Reporting Information [Line Items] | ||
Operating expenses | 248,860 | 158,600 |
Total costs and expenses | 248,860 | 158,600 |
Operating earnings (loss) | ($248,860) | ($158,600) |