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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles Goodwill and Other Intangibles
Goodwill

Below is a summary of the changes in the carrying amount of goodwill by segment for the years ended December 31, 2020 and 2019:
In millionsPharmacy
Services		Retail/
LTC		Health Care
Benefits		Total
Balance at December 31, 2018$23,388 $10,806 $44,484 $78,678 
Segment realignment194 — (194)— 
Purchase accounting adjustments— — 1,071 1,071 
Other(1)1 — — 
Balance at December 31, 201923,581 10,807 45,361 79,749 
Acquisitions34 — 274 308 
Divestiture of Workers’ Compensation business— — (505)(505)
Balance at December 31, 2020$23,615 $10,807 $45,130 $79,552 

During the year ended December 31, 2020, the decrease in the carrying amount of goodwill was primarily driven by the divestiture of the Workers’ Compensation business, partially offset by goodwill associated with immaterial acquisitions. During the year ended December 31, 2019, the increase in the carrying amount of goodwill was primarily driven by purchase accounting adjustments associated with the Aetna Acquisition. See Note 2 ‘‘Acquisitions and Divestitures’’ for further discussion regarding the Workers’ Compensation business divestiture and the Aetna Acquisition.

During 2019, the Company also realigned the composition of its segments to correspond with changes to its operating model and to reflect how the Chief Operating Decision Maker (the “CODM”) reviews information and manages the business. As a result of this realignment, the Company reallocated the associated goodwill balance to the Pharmacy Services and Health Care Benefits segments based on a relative fair value approach.

Goodwill Impairment
During the third quarter of both 2020 and 2019, the Company performed its required annual impairment tests of goodwill. The results of these impairment tests indicated that there was no impairment of goodwill. At both December 31, 2020 and 2019, cumulative goodwill impairments were $6.1 billion.
The LTC reporting unit has experienced industry-wide challenges that have impacted management’s ability to grow the business at the rate that was originally estimated when the Company acquired Omnicare, Inc. (“Omnicare”) in 2015. Those challenges include lower client retention rates, lower occupancy rates in skilled nursing facilities, the deteriorating financial health of numerous skilled nursing facility customers which resulted in a number of customer bankruptcies in 2018, and continued facility reimbursement pressures.

Following the update of its current and long-term forecasts in June 2018, management determined that there were indicators that the LTC reporting unit’s goodwill may be impaired and, accordingly, management performed an interim goodwill impairment test as of June 30, 2018. The results of that interim impairment test showed that the fair value of the LTC reporting unit was lower than the carrying value, resulting in a $3.9 billion pre-tax goodwill impairment charge in the second quarter of 2018.

During the third quarter of 2018, the Company performed its required annual impairment tests of goodwill and concluded there was no impairment of goodwill or trade names.

During the fourth quarter of 2018, the LTC reporting unit missed its forecast primarily due to operational issues and customer liquidity issues, including one significant customer bankruptcy. Additionally, LTC management submitted updated projected financial results which showed significant additional deterioration primarily due to continued industry and operational challenges including lower occupancy rates in skilled nursing facilities, significant deterioration in the financial health of numerous skilled nursing facility customers and continued facility reimbursement pressures. Based on these updated projections, management determined that there were indicators that the LTC reporting unit’s goodwill may be further impaired and, accordingly, management performed an interim goodwill impairment test during the fourth quarter of 2018. The results of that interim impairment test showed that the fair value of the LTC reporting unit was lower than the carrying value, resulting in an additional $2.2 billion pre-tax goodwill impairment charge in the fourth quarter of 2018.

As of December 31, 2020, the remaining goodwill balance in the LTC reporting unit was $431 million.
Intangible Assets

The following table is a summary of the Company’s intangible assets as of December 31, 2020 and 2019:
In millions, except weighted average lifeGross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Weighted
Average
Life (years)
2020
Trademarks (indefinite-lived)$10,498 $— $10,498 N/A
Customer contracts/relationships and covenants not to compete24,952 (8,923)16,029 14.9
Technology1,060 (739)321 3.0
Provider networks4,203 (440)3,763 20.0
Value of Business Acquired 590 (119)471 20.0
Other320 (260)60 7.7
Total $41,623 $(10,481)$31,142 15.2
2019
Trademarks (indefinite-lived)$10,498 $— $10,498 N/A
Customer contracts/relationships and covenants not to compete25,447 (8,128)17,319 14.8
Technology1,060 (386)674 3.0
Provider networks4,200 (229)3,971 20.0
Value of Business Acquired 590 (63)527 20.0
Other364 (232)132 8.1
Total$42,159 $(9,038)$33,121 15.1
Amortization expense for intangible assets totaled $2.3 billion, $2.4 billion and $1.0 billion for the years ended December 31, 2020, 2019 and 2018, respectively. The projected annual amortization expense for the Company’s intangible assets for the next five years is as follows:
In millions
2021$2,249 
20221,842 
20231,812 
20241,770 
20251,718