Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 01, 2016 | Oct. 27, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CERNER CORP /MO/ | |
Entity Central Index Key | 804,753 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 1, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 339,496,327 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 431,497 | $ 402,122 |
Short-term investments | 261,185 | 111,059 |
Receivables, net | 985,164 | 1,034,084 |
Inventory | 19,705 | 15,788 |
Prepaid expenses and other | 300,764 | 264,780 |
Total current assets | 1,998,315 | 1,827,833 |
Property and equipment, net | 1,476,126 | 1,309,214 |
Software development costs, net | 690,972 | 562,559 |
Goodwill | 848,452 | 799,182 |
Intangible assets, net | 591,447 | 688,058 |
Long-term investments | 143,859 | 173,073 |
Other assets | 199,356 | 202,065 |
Total assets | 5,948,527 | 5,561,984 |
Current liabilities: | ||
Accounts payable | 219,531 | 215,510 |
Current installments of long-term debt and capital lease obligations | 36,619 | 41,797 |
Deferred revenue | 308,713 | 278,443 |
Accrued payroll and tax withholdings | 204,774 | 184,225 |
Other accrued expenses | 58,423 | 57,891 |
Total current liabilities | 828,060 | 777,866 |
Long-term debt and capital lease obligations | 535,920 | 563,353 |
Deferred income taxes and other liabilities | 292,769 | 324,516 |
Deferred revenue | 13,743 | 25,865 |
Total liabilities | 1,670,492 | 1,691,600 |
Shareholders' Equity: | ||
Common stock, $.01 par value, 500,000,000 shares authorized, 353,581,189 shares issued at October 1, 2016 and 350,323,367 shares issued at January 2, 2016 | 3,536 | 3,503 |
Additional paid-in capital | 1,205,075 | 1,075,782 |
Retained earnings | 3,944,636 | 3,457,843 |
Treasury stock, 14,109,095 shares at October 1, 2016 and 10,364,691 shares at January 2, 2016 | (790,465) | (590,390) |
Accumulated other comprehensive loss, net | (84,747) | (76,354) |
Total shareholders' equity | 4,278,035 | 3,870,384 |
Total liabilities and shareholders' equity | $ 5,948,527 | $ 5,561,984 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 01, 2016 | Jan. 02, 2016 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 353,581,189 | 350,323,367 |
Treasury Stock, Shares | 14,109,095 | 10,364,691 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Revenues: | ||||
System sales | $ 301,252 | $ 325,084 | $ 913,710 | $ 899,762 |
Support, maintenance and services | 861,085 | 783,878 | 2,561,474 | 2,295,075 |
Reimbursed travel | 22,220 | 18,925 | 63,470 | 55,136 |
Total revenues | 1,184,557 | 1,127,887 | 3,538,654 | 3,249,973 |
Costs and expenses: | ||||
Cost of system sales | 93,275 | 105,760 | 296,336 | 309,761 |
Cost of support, maintenance and services | 67,475 | 65,898 | 204,313 | 186,668 |
Cost of reimbursed travel | 22,220 | 18,925 | 63,470 | 55,136 |
Sales and client service | 512,671 | 465,881 | 1,534,763 | 1,349,498 |
Software development (Includes amortization of $35,552 and $102,429 for the three and nine months ended October 1, 2016; and $29,743 and $88,450 for the three and nine months ended October 3, 2015) | 136,755 | 132,814 | 405,451 | 398,536 |
General and administrative | 87,071 | 98,705 | 267,232 | 329,061 |
Amortization of acquisition-related intangibles | 22,865 | 24,550 | 68,104 | 67,311 |
Total costs and expenses | 942,332 | 912,533 | 2,839,669 | 2,695,971 |
Operating earnings | 242,225 | 215,354 | 698,985 | 554,002 |
Other income (expense), net | (417) | 317 | 3,734 | (554) |
Earnings before income taxes | 241,808 | 215,671 | 702,719 | 553,448 |
Income taxes | (71,829) | (68,389) | (215,926) | (180,194) |
Net earnings | $ 169,979 | $ 147,282 | $ 486,793 | $ 373,254 |
Basic earnings per share | $ 0.50 | $ 0.43 | $ 1.44 | $ 1.09 |
Diluted earnings per share | $ 0.49 | $ 0.42 | $ 1.41 | $ 1.06 |
Basic weighted average shares outstanding | 338,684 | 344,040 | 338,675 | 343,933 |
Diluted weighted average shares outstanding | 344,817 | 351,364 | 344,917 | 351,891 |
Consolidated Statements Of Ope5
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Statement [Abstract] | ||||
Software development, amortization | $ 35,552 | $ 29,743 | $ 102,429 | $ 88,450 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net earnings | $ 169,979 | $ 147,282 | $ 486,793 | $ 373,254 |
Foreign currency translation adjustment and other (net of taxes (benefit) of $1,282 and $3,437 for the three and nine months ended October 1, 2016; and $(824) and $(3,053) for the three and nine months ended October 3, 2015) | (2,085) | (7,944) | (8,557) | (20,838) |
Unrealized holding gain (loss) on available-for-sale investments (net of taxes (benefit) of $(188) and $101 for the three and nine months ended October 1, 2016; and $73 and $186 for the three and nine months ended October 3, 2015) | (308) | 118 | 164 | 292 |
Comprehensive income | $ 167,586 | $ 139,456 | $ 478,400 | $ 352,708 |
Consolidated Statements Of Com7
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Foreign currency translation adjustment and other, taxes (benefit) | $ 1,282 | $ (824) | $ 3,437 | $ (3,053) |
Change in net unrealized holding gain (loss) on available-for-sale investments, taxes (benefit) | $ (188) | $ 73 | $ 101 | $ 186 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 486,793 | $ 373,254 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 371,385 | 329,075 |
Share-based compensation expense | 56,896 | 53,326 |
Provision for deferred income taxes | (25,922) | 4,671 |
Changes in assets and liabilities (net of businesses acquired): | ||
Receivables, net | 43,699 | (176,120) |
Inventory | (5,590) | 5,165 |
Prepaid expenses and other | (33,801) | (41,741) |
Accounts payable | (19,566) | (7,632) |
Accrued income taxes | 6,191 | 2,596 |
Deferred revenue | (1,780) | (3,008) |
Other accrued liabilities | (55,931) | 54,845 |
Net cash provided by operating activities | 822,374 | 594,431 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital purchases | (327,861) | (255,375) |
Capitalized software development costs | (228,803) | (204,708) |
Purchases of investments | (387,809) | (460,128) |
Sales and maturities of investments | 262,100 | 962,760 |
Purchase of other intangibles | (13,222) | (18,092) |
Acquisition of businesses | 0 | (1,372,014) |
Net cash used in investing activities | (695,595) | (1,347,557) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Long-term debt issuance | 0 | 500,000 |
Proceeds from excess tax benefits from share-based compensation | 47,202 | 57,689 |
Proceeds from exercise of options | 60,486 | 42,481 |
Treasury stock purchases | (200,075) | (200,064) |
Contingent consideration payments for acquisition of businesses | (2,074) | (11,012) |
Other | 0 | (792) |
Net cash provided by (used in) financing activities | (94,461) | 388,302 |
Effect of exchange rate changes on cash and cash equivalents | (2,943) | (8,622) |
Net increase (decrease) in cash and cash equivalents | 29,375 | (373,446) |
Cash and cash equivalents at beginning of period | 402,122 | 635,203 |
Cash and cash equivalents at end of period | 431,497 | 261,757 |
Summary of acquisition transactions: | ||
Fair value of tangible assets acquired | (10,200) | 450,662 |
Fair value of intangible assets acquired | (25,000) | 637,980 |
Fair value of goodwill | 46,940 | 472,476 |
Less: Fair value of liabilities assumed | (11,740) | (167,989) |
Less: Fair value of working capital settlement payable | 0 | (21,115) |
Net cash used | $ 0 | $ 1,372,014 |
Interim Statement Presentation
Interim Statement Presentation (Notes) | 9 Months Ended |
Oct. 01, 2016 | |
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 third fiscal quarter ends on the Saturday closest to September 30. The 2016 and 2015 third quarters ended on October 1, 2016 and October 3, 2015, respectively. All references to years in these notes to condensed consolidated financial statements represent the respective three or nine months ended on such dates, unless otherwise noted . Siemens Health Services On February 2, 2015 , we acquired Siemens Health Services, as further described in Note (2). The addition of the Siemens Health Services business impacts the comparability of our condensed consolidated financial statements for the nine months ended October 1, 2016 , in relation to the nine months ended October 3, 2015 , 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 was available to U.S. associates who met a minimum level of combined age and tenure, excluding, among others, our executive officers. Associates who elected to participate in the VSP received financial benefits commensurate with their tenure and position, along with vacation payout and medical benefits. During the nine months ended October 3, 2015 , we recorded pre-tax charges for the VSP of $45 million , which is included in general and administrative expense in our condensed consolidated statements of operations. As of January 2, 2016, this program was complete. In the fourth quarter of 2016, the Company adopted a new voluntary separation plan ("2016 VSP") for eligible associates. This 2016 VSP is available to U.S. associates who meet a minimum level of combined age and tenure. Associates who elect to participate in the 2016 VSP will receive financial benefits commensurate with their tenure and position, along with vacation payout and medical benefits . The irrevocable acceptance period for most associates electing to participate in the 2016 VSP ends in December 2016. Based on the number of eligible associates, and our estimate of participation, we expect the corresponding pre-tax charge in the fourth quarter of 2016 to approximate $35 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 GAAP. The new standard is effective for the Company in the first quarter of 2018, with early adoption permitted in the first quarter of 2017. The standard permits the use of either the retrospective or cumulative effect transition method. We expect to use the cumulative effect transition method, and we do not expect to early adopt. We are currently evaluating the effect that ASU 2014-09, and its subsequent amendments discussed below, will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . ASU 2016-08 amends the principal versus agent guidance in ASU 2014-09, and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . ASU 2016-10 amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . ASU 2016-12 amends the revenue guidance in ASU 2014-09 regarding (1) assessing collectability, (2) presentation of sales taxes, (3) non-cash consideration, and (4) completed contracts and contract modifications at transition. Consolidation. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , which provides guidance when evaluating whether to consolidate certain legal entities. The updated guidance modifies evaluation criteria of limited partnerships and similar legal entities, eliminates the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships. ASU 2015-02 was effective for the Company in the first quarter of 2016. The adoption of ASU 2015-02 did not have a material impact on our consolidated financial statements and related disclosures. Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) : Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for the Company in the first quarter of 2018, with early adoption permitted. We are currently evaluating the effect that ASU 2016-01 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. Leases. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which introduces a new model that requires most leases to be reported on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The standard requires the use of the modified retrospective transition approach. ASU 2016-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. Share-Based Compensation. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 changes several aspects of the accounting for share-based payment award transactions, including: (1) accounting and cash flow classification for excess tax benefits and deficiencies, (2) forfeitures, and (3) tax withholding requirements and cash flow classification. ASU 2016-09 is effective for the Company in the first quarter of 2017, with early adoption permitted. We are currently evaluating the effect that ASU 2016-09 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt. Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which provides new guidance regarding the measurement and recognition of credit impairment for certain financial assets. Such guidance will impact how we determine our allowance for estimated uncollectible receivables and evaluate our available-for-sale investments for impairment. ASU 2016-13 is effective for the Company in the first quarter of 2020, with early adoption permitted in the first quarter of 2019. We are currently evaluating the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. Cash Flow Presentation. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which includes clarifying guidance regarding the cash flow statement presentation of contingent consideration payments made after business combinations. The standard requires use of the retrospective transition method, however entities may apply the guidance prospectively if retrospective application would be impracticable. ASU 2016-15 is effective for the Company in the first quarter of 2018, with early adoption permitted. At this time, we have not selected a transition method, nor have we determined if we will early adopt. We are currently evaluating the effect that ASU 2016-15 will have on our consolidated financial statements and related disclosures. Income Taxes. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory , which provides new guidance regarding when an entity should recognize the income tax consequences of certain intra-entity asset transfers. The standard requires the use of the modified retrospective transition approach. ASU 2016-16 is effective for the Company in the first quarter of 2018, with early adoption permitted in the first quarter of 2017. We are currently evaluating the effect that ASU 2016-16 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. |
Acquisitions (Notes)
Acquisitions (Notes) | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Acquisitions On February 2, 2015 , we acquired substantially all of the assets, and assumed certain liabilities of Siemens Health Services (now referred to as "Cerner Health Services"), the health information technology business unit of Siemens AG, a stock corporation established under the laws of Germany, and its affiliates. In the first quarter of 2016, we finalized our allocation of purchase price as appraisals of tangible and intangible assets were completed: (in thousands) Receivables, net of allowances $ 226,207 Other current assets 46,682 Property and equipment 158,324 Goodwill 532,327 Intangible assets: Customer relationships 371,000 Existing technologies 201,990 Trade names 39,990 Total intangible assets 612,980 Other non-current assets 5,212 Accounts payable (42,306 ) Deferred revenue (current) (85,314 ) Other current liabilities (12,853 ) Deferred revenue (non-current) (48,130 ) Total purchase price $ 1,393,129 The changes in the carrying amounts of goodwill for the nine months ended October 1, 2016 were as follows: (In thousands) Domestic Global Total Beginning balance $ 730,837 $ 68,345 $ 799,182 Purchase price allocation adjustments for Cerner Health Services 51,827 (4,887 ) 46,940 Foreign currency translation adjustments and other — 2,330 2,330 Ending balance at October 1, 2016 $ 782,664 $ 65,788 $ 848,452 The following table provides unaudited pro forma results of operations for the nine months ended October 3, 2015 as if acquisition of the Cerner Health Services business had been completed on the first day of our 2015 fiscal year. (In thousands, except per share data) Pro forma revenues $ 3,343,653 Pro forma net earnings 379,059 Pro forma diluted earnings per share 1.08 These pro forma results are based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the period presented, nor are they indicative of our consolidated results of operations in future periods. The pro forma results for the nine months ended October 3, 2015 include pre-tax adjustments for amortization of intangible assets, fair value adjustments for deferred revenue, and the elimination of acquisition costs of $7 million , $6 million and $20 million , respectively. During the nine months ended October 3, 2015 , we incurred $20 million of pre-tax costs in connection with our acquisition of the Cerner Health Services business, which are included in general and administrative expense in our condensed consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 01, 2016 | |
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 October 1, 2016 : (In thousands) Fair Value Measurements Using Description Balance Sheet Classification Level 1 Level 2 Level 3 Money market funds Cash equivalents $ 108,378 $ — $ — Time deposits Cash equivalents — 9,199 — Commercial paper Cash equivalents — 2,500 — Time deposits Short-term investments — 44,980 — Commercial paper Short-term investments — 37,775 — Government and corporate bonds Short-term investments — 178,430 — Government and corporate bonds Long-term investments — 130,292 — The following table details our financial assets measured and recorded at fair value on a recurring basis at January 2, 2016 : (In thousands) Fair Value Measurements Using Description Balance Sheet Classification Level 1 Level 2 Level 3 Money market funds Cash equivalents $ 126,752 $ — $ — Time deposits Cash equivalents — 5,677 — Government and corporate bonds Cash equivalents — 73 — Time deposits Short-term investments — 30,989 — Commercial paper Short-term investments — 1,498 — Government and corporate bonds Short-term investments — 78,572 — Government and corporate bonds Long-term investments — 155,972 — 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 October 1, 2016 and January 2, 2016 was approximately $531 million and $505 million , respectively. The carrying amount of such debt at both October 1, 2016 and January 2, 2016 was $500 million . |
Investments
Investments | 9 Months Ended |
Oct. 01, 2016 | |
Investments [Abstract] | |
Investments | Available-for-sale Investments Available-for-sale investments at October 1, 2016 were as follows: (In thousands) Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 108,378 $ — $ — $ 108,378 Time deposits 9,199 — — 9,199 Commercial paper 2,500 — — 2,500 Total cash equivalents 120,077 — — 120,077 Short-term investments: Time deposits 44,980 — — 44,980 Commercial paper 37,825 — (50 ) 37,775 Government and corporate bonds 178,551 12 (133 ) 178,430 Total short-term investments 261,356 12 (183 ) 261,185 Long-term investments: Government and corporate bonds 130,496 17 (221 ) 130,292 Total available-for-sale investments $ 511,929 $ 29 $ (404 ) $ 511,554 Available-for-sale investments at January 2, 2016 were as follows: (In thousands) Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 126,752 $ — $ — $ 126,752 Time deposits 5,677 — — 5,677 Government and corporate bonds 73 — — 73 Total cash equivalents 132,502 — — 132,502 Short-term investments: Time deposits 30,989 — — 30,989 Commercial paper 1,500 — (2 ) 1,498 Government and corporate bonds 78,655 20 (103 ) 78,572 Total short-term investments 111,144 20 (105 ) 111,059 Long-term investments: Government and corporate bonds 156,527 14 (569 ) 155,972 Total available-for-sale investments $ 400,173 $ 34 $ (674 ) $ 399,533 We sold available-for-sale investments for proceeds of $92 million and $157 million during the nine months ended October 1, 2016 and October 3, 2015 , respectively, resulting in insignificant gains in each period. |
Receivables
Receivables | 9 Months Ended |
Oct. 01, 2016 | |
Receivables [Abstract] | |
Receivables | Receivables A summary of net receivables is as follows: (In thousands) October 1, 2016 January 2, 2016 Gross accounts receivable $ 991,816 $ 1,043,069 Less: Allowance for doubtful accounts 41,267 48,119 Accounts receivable, net of allowance 950,549 994,950 Current portion of lease receivables 34,615 39,134 Total receivables, net $ 985,164 $ 1,034,084 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 October 1, 2016 , 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 October 1, 2016 and January 2, 2016 . 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 nine months of 2016 and 2015 , we received total client cash collections of $3.8 billion and $3.2 billion , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2016 | |
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 30.7% and 32.6% for the first nine months of 2016 and 2015 , respectively. The decrease in the 2016 effective tax rate is primarily the result of the permanent reinstatement of the U.S. research and development tax credit in December 2015. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 01, 2016 | |
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 2016 2015 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 $ 169,979 338,684 $ 0.50 $ 147,282 344,040 $ 0.43 Effect of dilutive securities: Stock options and non-vested shares — 6,133 — 7,324 Diluted earnings per share: Income available to common shareholders including assumed conversions $ 169,979 344,817 $ 0.49 $ 147,282 351,364 $ 0.42 For the three months ended October 1, 2016 and October 3, 2015 , options to purchase 8.1 million and 3.9 million shares of common stock at per share prices ranging from $47.84 to $73.40 and $48.39 to $73.40 , respectively, were outstanding but were not included in the computation of diluted earnings per share because they were anti-dilutive. Nine Months Ended 2016 2015 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 $ 486,793 338,675 $ 1.44 $ 373,254 343,933 $ 1.09 Effect of dilutive securities: Stock options and non-vested shares — 6,242 — 7,958 Diluted earnings per share: Income available to common shareholders including assumed conversions $ 486,793 344,917 $ 1.41 $ 373,254 351,891 $ 1.06 For the nine months ended October 1, 2016 and October 3, 2015 , options to purchase 7.2 million and 2.5 million shares of common stock at per share prices ranging from $47.38 to $73.40 and $51.97 to $73.40 , respectively, were outstanding but were not included in the computation of diluted earnings per share because they were anti-dilutive. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation and Equity | Share-Based Compensation and Equity Stock Options Options activity for the nine months ended October 1, 2016 was as follows: (In thousands, except per share data) Number of Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Yrs) Outstanding at beginning of year 24,267 $ 34.46 Granted 4,038 55.20 Exercised (3,905 ) 17.23 Forfeited and expired (427 ) 54.47 Outstanding as of October 1, 2016 23,973 40.41 $ 531,419 6.28 Exercisable as of October 1, 2016 12,642 $ 25.96 $ 452,445 4.41 The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the nine months ended October 1, 2016 were as follows: Expected volatility (%) 29.4 % Expected term (yrs) 7 Risk-free rate (%) 1.5 % Fair value per option $ 18.35 As of October 1, 2016 , there was $168 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 3.32 years. Non-vested Shares Non-vested share activity for the nine months ended October 1, 2016 was as follows: (In thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 557 $ 59.42 Granted 55 57.68 Vested (216 ) 53.74 Forfeited (44 ) 70.49 Outstanding as of October 1, 2016 352 $ 61.25 As of October 1, 2016 , there was $10 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 1.88 years. Share-Based Compensation Cost 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 Nine Months Ended (In thousands) 2016 2015 2016 2015 Stock option and non-vested share compensation expense $ 18,942 $ 18,875 $ 56,896 $ 53,326 Associate stock purchase plan expense 1,503 1,485 4,722 4,238 Amounts capitalized in software development costs, net of amortization (95 ) (183 ) (486 ) (483 ) Amounts charged against earnings, before income tax benefit $ 20,350 $ 20,177 $ 61,132 $ 57,081 Amount of related income tax benefit recognized in earnings $ 6,045 $ 6,398 $ 18,793 $ 18,595 Treasury Stock In March 2016, our Board of Directors authorized a share repurchase program that allows the Company to repurchase shares of our common stock up to $300 million , 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 the nine months ended October 1, 2016 , we repurchased 3.7 million shares for consideration of $200 million . These shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. At October 1, 2016 , $100 million remains available for repurchase under the program. |
Contingencies
Contingencies | 9 Months Ended |
Oct. 01, 2016 | |
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 judgments or settlements to third parties related to these indemnification provisions pertaining to 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 business, results of operations, cash flows or financial condition. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 01, 2016 | |
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. The following table presents a summary of our operating segments and other expense for the three and nine months ended October 1, 2016 and October 3, 2015 : (In thousands) Domestic Global Other Total Three Months Ended 2016 Revenues $ 1,055,037 $ 129,520 $ — $ 1,184,557 Cost of revenues 161,625 21,345 — 182,970 Operating expenses 446,704 60,430 252,228 759,362 Total costs and expenses 608,329 81,775 252,228 942,332 Operating earnings (loss) $ 446,708 $ 47,745 $ (252,228 ) $ 242,225 (In thousands) Domestic Global Other Total Three Months Ended 2015 Revenues $ 997,954 $ 129,933 $ — $ 1,127,887 Cost of revenues 169,181 21,402 — 190,583 Operating expenses 403,371 60,448 258,131 721,950 Total costs and expenses 572,552 81,850 258,131 912,533 Operating earnings (loss) $ 425,402 $ 48,083 $ (258,131 ) $ 215,354 (In thousands) Domestic Global Other Total Nine Months Ended 2016 Revenues $ 3,132,566 $ 406,088 $ — $ 3,538,654 Cost of revenues 488,404 75,715 — 564,119 Operating expenses 1,304,731 183,824 786,995 2,275,550 Total costs and expenses 1,793,135 259,539 786,995 2,839,669 Operating earnings (loss) $ 1,339,431 $ 146,549 $ (786,995 ) $ 698,985 (In thousands) Domestic Global Other Total Nine Months Ended 2015 Revenues $ 2,863,207 $ 386,766 $ — $ 3,249,973 Cost of revenues 480,087 71,478 — 551,565 Operating expenses 1,157,762 170,846 815,798 2,144,406 Total costs and expenses 1,637,849 242,324 815,798 2,695,971 Operating earnings (loss) $ 1,225,358 $ 144,442 $ (815,798 ) $ 554,002 |
Acquisitions Purchase Price All
Acquisitions Purchase Price Allocation (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Receivables, net of allowances $ 226,207 Other current assets 46,682 Property and equipment 158,324 Goodwill 532,327 Intangible assets: Customer relationships 371,000 Existing technologies 201,990 Trade names 39,990 Total intangible assets 612,980 Other non-current assets 5,212 Accounts payable (42,306 ) Deferred revenue (current) (85,314 ) Other current liabilities (12,853 ) Deferred revenue (non-current) (48,130 ) Total purchase price $ 1,393,129 |
Acquisitions Goodwill Rollforwa
Acquisitions Goodwill Rollforward (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Goodwill Disclosure [Table Text Block] | The changes in the carrying amounts of goodwill for the nine months ended October 1, 2016 were as follows: (In thousands) Domestic Global Total Beginning balance $ 730,837 $ 68,345 $ 799,182 Purchase price allocation adjustments for Cerner Health Services 51,827 (4,887 ) 46,940 Foreign currency translation adjustments and other — 2,330 2,330 Ending balance at October 1, 2016 $ 782,664 $ 65,788 $ 848,452 |
Acquisitions Pro Formas (Tables
Acquisitions Pro Formas (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides unaudited pro forma results of operations for the nine months ended October 3, 2015 as if acquisition of the Cerner Health Services business had been completed on the first day of our 2015 fiscal year. (In thousands, except per share data) Pro forma revenues $ 3,343,653 Pro forma net earnings 379,059 Pro forma diluted earnings per share 1.08 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
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 October 1, 2016 : (In thousands) Fair Value Measurements Using Description Balance Sheet Classification Level 1 Level 2 Level 3 Money market funds Cash equivalents $ 108,378 $ — $ — Time deposits Cash equivalents — 9,199 — Commercial paper Cash equivalents — 2,500 — Time deposits Short-term investments — 44,980 — Commercial paper Short-term investments — 37,775 — Government and corporate bonds Short-term investments — 178,430 — Government and corporate bonds Long-term investments — 130,292 — The following table details our financial assets measured and recorded at fair value on a recurring basis at January 2, 2016 : (In thousands) Fair Value Measurements Using Description Balance Sheet Classification Level 1 Level 2 Level 3 Money market funds Cash equivalents $ 126,752 $ — $ — Time deposits Cash equivalents — 5,677 — Government and corporate bonds Cash equivalents — 73 — Time deposits Short-term investments — 30,989 — Commercial paper Short-term investments — 1,498 — Government and corporate bonds Short-term investments — 78,572 — Government and corporate bonds Long-term investments — 155,972 — |
Investments Investments (Tables
Investments Investments (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Investments [Abstract] | |
Schedule of available-for-sale investments | Available-for-sale investments at October 1, 2016 were as follows: (In thousands) Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 108,378 $ — $ — $ 108,378 Time deposits 9,199 — — 9,199 Commercial paper 2,500 — — 2,500 Total cash equivalents 120,077 — — 120,077 Short-term investments: Time deposits 44,980 — — 44,980 Commercial paper 37,825 — (50 ) 37,775 Government and corporate bonds 178,551 12 (133 ) 178,430 Total short-term investments 261,356 12 (183 ) 261,185 Long-term investments: Government and corporate bonds 130,496 17 (221 ) 130,292 Total available-for-sale investments $ 511,929 $ 29 $ (404 ) $ 511,554 Available-for-sale investments at January 2, 2016 were as follows: (In thousands) Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: Money market funds $ 126,752 $ — $ — $ 126,752 Time deposits 5,677 — — 5,677 Government and corporate bonds 73 — — 73 Total cash equivalents 132,502 — — 132,502 Short-term investments: Time deposits 30,989 — — 30,989 Commercial paper 1,500 — (2 ) 1,498 Government and corporate bonds 78,655 20 (103 ) 78,572 Total short-term investments 111,144 20 (105 ) 111,059 Long-term investments: Government and corporate bonds 156,527 14 (569 ) 155,972 Total available-for-sale investments $ 400,173 $ 34 $ (674 ) $ 399,533 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Receivables [Abstract] | |
Summary of Net Receivables | A summary of net receivables is as follows: (In thousands) October 1, 2016 January 2, 2016 Gross accounts receivable $ 991,816 $ 1,043,069 Less: Allowance for doubtful accounts 41,267 48,119 Accounts receivable, net of allowance 950,549 994,950 Current portion of lease receivables 34,615 39,134 Total receivables, net $ 985,164 $ 1,034,084 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation Of The Numerators And The Denominators Of The Basic And Diluted Per Share | Nine Months Ended 2016 2015 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 $ 486,793 338,675 $ 1.44 $ 373,254 343,933 $ 1.09 Effect of dilutive securities: Stock options and non-vested shares — 6,242 — 7,958 Diluted earnings per share: Income available to common shareholders including assumed conversions $ 486,793 344,917 $ 1.41 $ 373,254 351,891 $ 1.06 A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows: Three Months Ended 2016 2015 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 $ 169,979 338,684 $ 0.50 $ 147,282 344,040 $ 0.43 Effect of dilutive securities: Stock options and non-vested shares — 6,133 — 7,324 Diluted earnings per share: Income available to common shareholders including assumed conversions $ 169,979 344,817 $ 0.49 $ 147,282 351,364 $ 0.42 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Stock Options Activity | Options activity for the nine months ended October 1, 2016 was as follows: (In thousands, except per share data) Number of Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Yrs) Outstanding at beginning of year 24,267 $ 34.46 Granted 4,038 55.20 Exercised (3,905 ) 17.23 Forfeited and expired (427 ) 54.47 Outstanding as of October 1, 2016 23,973 40.41 $ 531,419 6.28 Exercisable as of October 1, 2016 12,642 $ 25.96 $ 452,445 4.41 |
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 nine months ended October 1, 2016 were as follows: Expected volatility (%) 29.4 % Expected term (yrs) 7 Risk-free rate (%) 1.5 % Fair value per option $ 18.35 |
Schedule of Share-based Compensation, Restricted Stock Activity | Non-vested share activity for the nine months ended October 1, 2016 was as follows: (In thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 557 $ 59.42 Granted 55 57.68 Vested (216 ) 53.74 Forfeited (44 ) 70.49 Outstanding as of October 1, 2016 352 $ 61.25 |
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 Nine Months Ended (In thousands) 2016 2015 2016 2015 Stock option and non-vested share compensation expense $ 18,942 $ 18,875 $ 56,896 $ 53,326 Associate stock purchase plan expense 1,503 1,485 4,722 4,238 Amounts capitalized in software development costs, net of amortization (95 ) (183 ) (486 ) (483 ) Amounts charged against earnings, before income tax benefit $ 20,350 $ 20,177 $ 61,132 $ 57,081 Amount of related income tax benefit recognized in earnings $ 6,045 $ 6,398 $ 18,793 $ 18,595 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Segment Reporting [Abstract] | |
Summary of the Operating Information | The following table presents a summary of our operating segments and other expense for the three and nine months ended October 1, 2016 and October 3, 2015 : (In thousands) Domestic Global Other Total Three Months Ended 2016 Revenues $ 1,055,037 $ 129,520 $ — $ 1,184,557 Cost of revenues 161,625 21,345 — 182,970 Operating expenses 446,704 60,430 252,228 759,362 Total costs and expenses 608,329 81,775 252,228 942,332 Operating earnings (loss) $ 446,708 $ 47,745 $ (252,228 ) $ 242,225 (In thousands) Domestic Global Other Total Three Months Ended 2015 Revenues $ 997,954 $ 129,933 $ — $ 1,127,887 Cost of revenues 169,181 21,402 — 190,583 Operating expenses 403,371 60,448 258,131 721,950 Total costs and expenses 572,552 81,850 258,131 912,533 Operating earnings (loss) $ 425,402 $ 48,083 $ (258,131 ) $ 215,354 (In thousands) Domestic Global Other Total Nine Months Ended 2016 Revenues $ 3,132,566 $ 406,088 $ — $ 3,538,654 Cost of revenues 488,404 75,715 — 564,119 Operating expenses 1,304,731 183,824 786,995 2,275,550 Total costs and expenses 1,793,135 259,539 786,995 2,839,669 Operating earnings (loss) $ 1,339,431 $ 146,549 $ (786,995 ) $ 698,985 (In thousands) Domestic Global Other Total Nine Months Ended 2015 Revenues $ 2,863,207 $ 386,766 $ — $ 3,249,973 Cost of revenues 480,087 71,478 — 551,565 Operating expenses 1,157,762 170,846 815,798 2,144,406 Total costs and expenses 1,637,849 242,324 815,798 2,695,971 Operating earnings (loss) $ 1,225,358 $ 144,442 $ (815,798 ) $ 554,002 |
Interim Statement Presentatio28
Interim Statement Presentation Policies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Interim Statement Presentation [Line Items] | ||
Fiscal Period, Policy [Policy Text Block] | Our third fiscal quarter ends on the Saturday closest to September 30. The 2016 and 2015 third quarters ended on October 1, 2016 and October 3, 2015, respectively. All references to years in these notes to condensed consolidated financial statements represent the respective three or nine months ended on such dates, unless otherwise noted | |
Siemens Health Services [Member] | ||
Interim Statement Presentation [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Feb. 2, 2015 | |
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 GAAP. The new standard is effective for the Company in the first quarter of 2018, with early adoption permitted in the first quarter of 2017. The standard permits the use of either the retrospective or cumulative effect transition method. We expect to use the cumulative effect transition method, and we do not expect to early adopt. We are currently evaluating the effect that ASU 2014-09, and its subsequent amendments discussed below, will have on our consolidated financial statements and related disclosures. | |
ASU 2016-08 Revenue from Contracts with Customers [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 amends the principal versus agent guidance in ASU 2014-09, and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. | |
ASU 2016-10 Revenue from Contracts with Customers [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. | |
ASU 2016-12 Revenue from Contracts with Customers [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-12 amends the revenue guidance in ASU 2014-09 regarding (1) assessing collectability, (2) presentation of sales taxes, (3) non-cash consideration, and (4) completed contracts and contract modifications at transition. | |
ASU 2015-02 Consolidation (Topic 810) [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which provides guidance when evaluating whether to consolidate certain legal entities. The updated guidance modifies evaluation criteria of limited partnerships and similar legal entities, eliminates the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships. ASU 2015-02 was effective for the Company in the first quarter of 2016. The adoption of ASU 2015-02 did not have a material impact on our consolidated financial statements and related disclosures. | |
ASU 2016-01 Financial Instruments [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for the Company in the first quarter of 2018, with early adoption permitted. We are currently evaluating the effect that ASU 2016-01 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. | |
ASU 2016-02 Leases [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which introduces a new model that requires most leases to be reported on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The standard requires the use of the modified retrospective transition approach. ASU 2016-02 is effective for the Company in the first quarter of 2019, with early adoption permitted. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. | |
ASU 2016-09 Share-Based Compensation [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 changes several aspects of the accounting for share-based payment award transactions, including: (1) accounting and cash flow classification for excess tax benefits and deficiencies, (2) forfeitures, and (3) tax withholding requirements and cash flow classification. ASU 2016-09 is effective for the Company in the first quarter of 2017, with early adoption permitted. We are currently evaluating the effect that ASU 2016-09 will have on our consolidated financial statements and related disclosures, and we do not expect to early adopt. | |
ASU 2016-13 Credit Losses [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides new guidance regarding the measurement and recognition of credit impairment for certain financial assets. Such guidance will impact how we determine our allowance for estimated uncollectible receivables and evaluate our available-for-sale investments for impairment. ASU 2016-13 is effective for the Company in the first quarter of 2020, with early adoption permitted in the first quarter of 2019. We are currently evaluating the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. | |
ASU 2016-15 Statement of Cash Flows [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which includes clarifying guidance regarding the cash flow statement presentation of contingent consideration payments made after business combinations. The standard requires use of the retrospective transition method, however entities may apply the guidance prospectively if retrospective application would be impracticable. ASU 2016-15 is effective for the Company in the first quarter of 2018, with early adoption permitted. At this time, we have not selected a transition method, nor have we determined if we will early adopt. We are currently evaluating the effect that ASU 2016-15 will have on our consolidated financial statements and related disclosures. | |
ASU 2016-16 Income Taxes [Member] | ||
Interim Statement Presentation [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory, which provides new guidance regarding when an entity should recognize the income tax consequences of certain intra-entity asset transfers. The standard requires the use of the modified retrospective transition approach. ASU 2016-16 is effective for the Company in the first quarter of 2018, with early adoption permitted in the first quarter of 2017. We are currently evaluating the effect that ASU 2016-16 will have on our consolidated financial statements and related disclosures, and we have not determined if we will early adopt. | |
2015 VSP [Member] | ||
Interim Statement Presentation [Line Items] | ||
Description of Postemployment Benefits | Associates who elected to participate in the VSP received financial benefits commensurate with their tenure and position, along with vacation payout and medical benefits. | |
Postemployment Benefits, Period Expense | $ 45 | |
2016 VSP [Member] | ||
Interim Statement Presentation [Line Items] | ||
Description of Postemployment Benefits | Associates who elect to participate in the 2016 VSP will receive financial benefits commensurate with their tenure and position, along with vacation payout and medical benefits | |
Estimated Severance Benefits | $ 35 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | Feb. 02, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 848,452 | $ 799,182 | ||
Goodwill, Acquired During Period | 46,940 | |||
Goodwill, Translation Adjustments | $ 2,330 | |||
Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | Feb. 2, 2015 | |||
Business Acquisition, Name of Acquired Entity | Siemens Health Services | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $ 226,207 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Assets | 46,682 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 158,324 | |||
Goodwill | 532,327 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 612,980 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 5,212 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (42,306) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | (85,314) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (12,853) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Deferred Revenue | (48,130) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 1,393,129 | |||
Business Acquisition, Pro Forma Revenue | $ 3,343,653 | |||
Business Acquisition, Pro Forma Net Income (Loss) | $ 379,059 | |||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 1.08 | |||
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 period presented, nor are they indicative of our consolidated results of operations in future periods. | |||
Business Acquisition, Transaction Costs | $ 20,000 | |||
Customer Relationships [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 371,000 | |||
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 | |||
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 | |||
Domestic Segment | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 782,664 | 730,837 | ||
Goodwill, Acquired During Period | 51,827 | |||
Goodwill, Translation Adjustments | 0 | |||
Global Segment | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 65,788 | $ 68,345 | ||
Goodwill, Acquired During Period | (4,887) | |||
Goodwill, Translation Adjustments | $ 2,330 | |||
Acquired Intangible Amortization [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related Adjustments | 7,000 | |||
Fair Value Adjustment to Deferred Revenue [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related Adjustments | 6,000 | |||
Acquisition-related Costs [Member] | Siemens Health Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related Adjustments | $ 20,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Oct. 01, 2016 | Jan. 02, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt, including current maturities | $ 531 | $ 505 |
Carrying amount of long-term debt | $ 500 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $ 511,554 | $ 399,533 |
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 | 108,378 | 126,752 |
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 | 9,199 | 5,677 |
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 | 2,500 | |
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 | 73 | |
Short-term investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 261,185 | 111,059 |
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 | 44,980 | 30,989 |
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 | 37,775 | 1,498 |
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 | 178,430 | 78,572 |
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 | $ 130,292 | $ 155,972 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Investments [Abstract] | ||
Proceeds from Sale of Available-for-sale Securities | $ 92 | $ 157 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | $ 511,929 | $ 400,173 |
Gross Unrealized Gains | 29 | 34 |
Gross Unrealized Losses | (404) | (674) |
Fair Value | 511,554 | 399,533 |
Cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 120,077 | 132,502 |
Fair Value | 120,077 | 132,502 |
Cash equivalents [Member] | Money market funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 108,378 | 126,752 |
Fair Value | 108,378 | 126,752 |
Cash equivalents [Member] | Time deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 9,199 | 5,677 |
Fair Value | 9,199 | 5,677 |
Cash equivalents [Member] | Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 2,500 | |
Fair Value | 2,500 | |
Cash equivalents [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 73 | |
Fair Value | 73 | |
Short-term investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 261,356 | 111,144 |
Gross Unrealized Gains | 12 | 20 |
Gross Unrealized Losses | (183) | (105) |
Fair Value | 261,185 | 111,059 |
Short-term investments [Member] | Time deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 44,980 | 30,989 |
Fair Value | 44,980 | 30,989 |
Short-term investments [Member] | Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 37,825 | 1,500 |
Gross Unrealized Losses | (50) | (2) |
Fair Value | 37,775 | 1,498 |
Short-term investments [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 178,551 | 78,655 |
Gross Unrealized Gains | 12 | 20 |
Gross Unrealized Losses | (133) | (103) |
Fair Value | 178,430 | 78,572 |
Long-term investments [Member] | Government and corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 130,496 | 156,527 |
Gross Unrealized Gains | 17 | 14 |
Gross Unrealized Losses | (221) | (569) |
Fair Value | $ 130,292 | $ 155,972 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) - USD ($) $ in Billions | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Receivables [Abstract] | ||
Client cash collections | $ 3.8 | $ 3.2 |
Receivables (Summary Of Net Rec
Receivables (Summary Of Net Receivables) (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Receivables [Abstract] | ||
Gross accounts receivable | $ 991,816 | $ 1,043,069 |
Less: Allowance for doubtful accounts | 41,267 | 48,119 |
Accounts receivable, net of allowance | 950,549 | 994,950 |
Current portion of lease receivables | 34,615 | 39,134 |
Total receivables, net | $ 985,164 | $ 1,034,084 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 30.70% | 32.60% |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of The Numerators And The Denominators Of The Basic And Diluted Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Earnings Per Share [Abstract] | ||||
Income available to common shareholders, basic | $ 169,979 | $ 147,282 | $ 486,793 | $ 373,254 |
Income available to common shareholders including assumed conversions, diluted | $ 169,979 | $ 147,282 | $ 486,793 | $ 373,254 |
Basic weighted average shares outstanding | 338,684 | 344,040 | 338,675 | 343,933 |
Stock options and non-vested shares, incremental shares | 6,133 | 7,324 | 6,242 | 7,958 |
Diluted weighted average shares outstanding | 344,817 | 351,364 | 344,917 | 351,891 |
Basic earnings per share | $ 0.50 | $ 0.43 | $ 1.44 | $ 1.09 |
Diluted earnings per share | $ 0.49 | $ 0.42 | $ 1.41 | $ 1.06 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 8.1 | 3.9 | 7.2 | 2.5 |
Antidilutive securities excluded from computation of earnings per share, exercise price, lower range limit | $ 47.84 | $ 48.39 | $ 47.38 | $ 51.97 |
Antidilutive securities excluded from computation of earnings per share, exercise price, upper range limit | $ 73.40 | $ 73.40 | $ 73.40 | $ 73.40 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Stock Options Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Oct. 01, 2016USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at beginning of year, number of shares | shares | 24,267 |
Outstanding at beginning of year, weighted-average exercise price | $ / shares | $ 34.46 |
Granted, number of shares | shares | 4,038 |
Granted, weighted-average exercise price | $ / shares | $ 55.20 |
Exercised, number of shares | shares | (3,905) |
Exercised, weighted-average exercise price | $ / shares | $ 17.23 |
Forfeited and expired, number of shares | shares | (427) |
Forfeited and expired, weighted-average exercise price | $ / shares | $ 54.47 |
Outstanding end of year, number of shares | shares | 23,973 |
Outstanding at end of year, weighted-average exercise price | $ / shares | $ 40.41 |
Outstanding at end of year, aggregate intrinsic value | $ | $ 531,419 |
Outstanding at end of year, weighted-average remaining contractual term | 6 years 3 months 10 days |
Exercisable at end of year, number of shares | shares | 12,642 |
Exercisable at end of year, weighted-average exercise price | $ / shares | $ 25.96 |
Exercisable at end of year, aggregate intrinsic value | $ | $ 452,445 |
Exercisable at end of year, weighted-average remaining contractual term | 4 years 4 months 28 days |
Share-Based Compensation (Sch40
Share-Based Compensation (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details) | 9 Months Ended |
Oct. 01, 2016$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected volatility (%) | 29.40% |
Expected term (yrs) | 7 years |
Risk-free rate (%) | 1.50% |
Fair value per option | $ 18.35 |
Share-Based Compensation (Sch41
Share-Based Compensation (Schedule Of Non-Vested Shares Activity) (Details) - Restricted Stock [Member] shares in Thousands | 9 Months Ended |
Oct. 01, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at beginning of year, number of shares | shares | 557 |
Outstanding at beginning of year, weighted-average grant date fair value | $ / shares | $ 59.42 |
Granted, number of shares | shares | 55 |
Granted, weighted-average grant date fair value | $ / shares | $ 57.68 |
Vested, number of shares | shares | (216) |
Vested, weighted-average grant date fair value | $ / shares | $ 53.74 |
Forfeited, number of shares | shares | (44) |
Forfeited, weighted-average grant date fair value | $ / shares | $ 70.49 |
Outstanding at end of year, number of shares | shares | 352 |
Outstanding at end of year, weighted-average grant date fair value | $ / shares | $ 61.25 |
Share-Based Compensation (Compe
Share-Based Compensation (Compensation Expense Recognized In The Condensed Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amounts charged against earnings, before income tax benefit | $ 20,350 | $ 20,177 | $ 61,132 | $ 57,081 |
Amount of related income tax benefit recognized in earnings | 6,045 | 6,398 | 18,793 | 18,595 |
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 | 18,942 | 18,875 | 56,896 | 53,326 |
Associate stock purchase plan expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amounts charged against earnings, before income tax benefit | 1,503 | 1,485 | 4,722 | 4,238 |
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 | $ (95) | $ (183) | $ (486) | $ (483) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) shares in Millions, $ in Millions | 9 Months Ended |
Oct. 01, 2016USD ($)shares | |
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 | $ 10 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | 168 |
Stock Repurchase Program, Authorized Amount | $ 300 |
Stock Repurchased During Period, Shares | shares | 3.7 |
Payments for Repurchase of Common Stock | $ 200 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 100 |
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 25 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 10 months 18 days |
Segment Reporting (Summary Of T
Segment Reporting (Summary Of The Operating Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,184,557 | $ 1,127,887 | $ 3,538,654 | $ 3,249,973 |
Cost of revenues | 182,970 | 190,583 | 564,119 | 551,565 |
Operating expenses | 759,362 | 721,950 | 2,275,550 | 2,144,406 |
Total costs and expenses | 942,332 | 912,533 | 2,839,669 | 2,695,971 |
Operating earnings (loss) | 242,225 | 215,354 | 698,985 | 554,002 |
Domestic Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,055,037 | 997,954 | 3,132,566 | 2,863,207 |
Cost of revenues | 161,625 | 169,181 | 488,404 | 480,087 |
Operating expenses | 446,704 | 403,371 | 1,304,731 | 1,157,762 |
Total costs and expenses | 608,329 | 572,552 | 1,793,135 | 1,637,849 |
Operating earnings (loss) | 446,708 | 425,402 | 1,339,431 | 1,225,358 |
Global Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 129,520 | 129,933 | 406,088 | 386,766 |
Cost of revenues | 21,345 | 21,402 | 75,715 | 71,478 |
Operating expenses | 60,430 | 60,448 | 183,824 | 170,846 |
Total costs and expenses | 81,775 | 81,850 | 259,539 | 242,324 |
Operating earnings (loss) | 47,745 | 48,083 | 146,549 | 144,442 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating expenses | 252,228 | 258,131 | 786,995 | 815,798 |
Total costs and expenses | 252,228 | 258,131 | 786,995 | 815,798 |
Operating earnings (loss) | $ (252,228) | $ (258,131) | $ (786,995) | $ (815,798) |