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Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2011
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

7. GOODWILL AND OTHER INTANGIBLE ASSETS

The realignment of our business segments and corresponding change in our reportable segments, more fully described herein in Note 13, resulted in a change in the composition of our reporting units, the unit of accounting for goodwill. Accordingly, we reassigned goodwill to our reporting units as of January 1, 2011 using the relative fair value approach. Changes in the carrying amount of goodwill, by our new reportable segments, for the six months ended June 30, 2011 were as follows:

 

     Retail      Employer
Group
     Health &
Well-Being
Services
     Other
Businesses
     Total  
     (in thousands)  

Balance at January 1, 2011

   $ 592,844       $ 61,990       $ 1,855,522       $ 57,453       $ 2,567,809   

Acquisitions

     0         0         4,022         0         4,022   

Subsequent adjustments

     0         0         5,680         0         5,680   
                                            

Balance at June 30, 2011

   $ 592,844       $ 61,990       $ 1,865,224       $ 57,453       $ 2,577,511   
                                            

The following table presents details of our other intangible assets included in other long-term assets in the accompanying condensed consolidated balance sheets at June 30, 2011 and December 31, 2010:

 

     Weighted      June 30, 2011      December 31, 2010  
     Average             Accumulated                    Accumulated         
     Life      Cost      Amortization      Net      Cost      Amortization      Net  
     (in thousands)  

Other intangible assets:

                    

Customer contracts/relationships

     10.7 yrs       $ 417,285       $ 165,807       $ 251,478       $ 413,855       $ 145,997       $ 267,858   

Trade names

     19.6 yrs         87,400         4,565         82,835         87,400         2,268         85,132   

Provider contracts

     16.0 yrs         42,753         13,347         29,406         42,753         11,659         31,094   

Noncompetes and other

     7.4 yrs         36,937         6,331         30,606         19,475         4,085         15,390   
                                                        

Total other intangible assets

     12.2 yrs       $ 584,375       $ 190,050       $ 394,325       $ 563,483       $ 164,009       $ 399,474   
                                                        

 

Amortization expense for other intangible assets was approximately $26.0 million for the six months ended June 30, 2011 and $18.1 million for the six months ended June 30, 2010. The following table presents our estimate of amortization expense for 2011 and each of the five next succeeding years:

 

     (in thousands)  

For the years ending December 31,:

  

2011

   $ 53,280   

2012

     53,102   

2013

     49,847   

2014

     45,349   

2015

     40,017   

2016

     34,342