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Goodwill And Other Intangible Assets
9 Months Ended
Sep. 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 nine months ended September 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         6,427         0         6,427   

Subsequent adjustments

     0         0         5,680         0         5,680   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at September 30, 2011

   $ 592,844       $ 61,990       $ 1,867,629       $ 57,453       $ 2,579,916   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

 

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

Other intangible assets:

                    

Customer contracts/relationships

     10.7 yrs       $ 417,290       $ 175,714       $ 241,576       $ 413,855       $ 145,997       $ 267,858   

Trade names

     19.6 yrs         87,400         5,713         81,687         87,400         2,268         85,132   

Provider contracts

     16.0 yrs         42,753         14,192         28,561         42,753         11,659         31,094   

Noncompetes and other

     7.4 yrs         36,940         8,094         28,846         19,475         4,085         15,390   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total other intangible assets

     12.2 yrs       $ 584,383       $ 203,713       $ 380,670       $ 563,483       $ 164,009       $ 399,474   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Amortization expense for other intangible assets was approximately $39.7 million for the nine months ended September 30, 2011 and $28.6 million for the nine months ended September 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

   $ 53,294   

2012

     53,104   

2013

     49,849   

2014

     45,351   

2015

     40,019   

2016

     34,343