CPSI 2017 Annual Report

87 17. SEGMENT REPORTING Our chief operating decision makers ("CODM") utilize three operating segments, "Acute Care EHR", "Post-acute Care EHR" and "TruBridge", based on our three distinct business units with unique market dynamics and opportunities. Revenues and costs of sales are primarily derived from the provision of services and sales of our proprietary software, and our CODM assess the performance of these three segments at the gross profit level. Operating expenses and items such as interest, income tax, capital expenditures and total assets are managed at a consolidated level and thus are not included in our operating segment disclosures. Our CODM group is comprised of the Chief Executive Officer, Chief Growth Officer, Chief Operating Officer, and Chief Financial Officer. Accounting policies for each of the reportable segments are the same as those used on a consolidated basis. As of January 1, 2017, the operating segment formerly identified as "TruBridge, Rycan, and Other Outsourcing" is now identified as "TruBridge". The following table presents a summary of the revenues, cost of sales, and gross profit of our three operating segments for the years ended December 31, 2017, 2016, and 2015: Year Ended December 31, (In thousands) 2017 2016 2015 Revenues: Acute Care EHR. . . . . . . . . . . . . . . . . . $ 164,228 $ 159,146 $ 118,385 Post-acute Care EHR . . . . . . . . . . . . . . 24,033 26,519 — TruBridge . . . . . . . . . . . . . . . . . . . . . . . 88,666 81,607 63,789 Total revenues . . . . . . . . . . . . . . . . . . . . . . 276,927 267,272 182,174 Cost of sales: Acute Care EHR. . . . . . . . . . . . . . . . . . 68,513 74,746 52,500 Post-acute Care EHR . . . . . . . . . . . . . . 7,481 9,610 — TruBridge . . . . . . . . . . . . . . . . . . . . . . . 49,636 45,656 35,216 Total cost of sales . . . . . . . . . . . . . . . . . . . 125,630 130,012 87,716 Gross profit: Acute Care EHR. . . . . . . . . . . . . . . . . . 95,715 84,400 65,885 Post-acute Care EHR . . . . . . . . . . . . . . 16,552 16,909 — TruBridge . . . . . . . . . . . . . . . . . . . . . . . 39,030 35,951 28,573 Total gross profit . . . . . . . . . . . . . . . . . . . . 151,297 137,260 94,458 Corporate operating expenses . . . . . . . . . . (156,111) (122,885) (69,372) Other income. . . . . . . . . . . . . . . . . . . . . . . 407 220 405 Loss on extinguishment of debt . . . . . . . . (1,340) — — Interest expense. . . . . . . . . . . . . . . . . . . . . (7,736) (6,609) — Income (loss) before taxes . . . . . . . . . . . . $ (13,483) $ 7,986 $ 25,491