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Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2011
Goodwill and Intangible Assets 
Goodwill and Intangible Assets

Note 4 – Goodwill and Intangible Assets

 

Goodwill and indefinitely-lived trademarks are not amortized, but are subject to annual impairment reviews, or more frequent reviews if events or circumstances indicate there may be impairment. During the three months ended September 30, 2011, the Company performed its required annual impairment tests and concluded there was no impairment of goodwill or trademarks.

 

The carrying amount of goodwill was $26.5 billion and $25.7 billion as of September 30, 2011 and December 31, 2010, respectively. The $0.8 billion increase in goodwill for the nine months ended September 30, 2011 was primarily due to an increase of approximately $1.0 billion related to the acquisition of the UAM Medicare Part D Business, partially offset by an approximately $0.2 billion reclassification of goodwill associated with the TheraCom business held for sale, which was reclassified to other current assets as a result of the anticipated sale. Intangible assets with finite useful lives are amortized over their estimated useful life.

 

The following is a summary of the Company’s intangible assets as of the respective balance sheet dates:

 

 

 

 

As of September 30, 2011

 

 

 

As of December 31, 2010

 

In millions

 

 

Gross
Carrying
Amount

 

 

 

Accumulated
Amortization

 

 

 

Net
Carrying
Amount

 

 

 

Gross
Carrying
Amount

 

 

 

Accumulated
Amortization

 

 

 

Net
Carrying
Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks (indefinitely-lived)

 

 

$

6,398

 

 

 

$

¾

 

 

 

$

6,398

 

 

 

$

6,398

 

 

 

$

¾

 

 

 

$

6,398

 

Customer contracts and relationships and covenants not to compete

 

 

5,376

 

 

 

(2,284

)

 

 

3,092

 

 

 

4,903

 

 

 

(1,982

)

 

 

2,921

 

Favorable leases and other

 

 

785

 

 

 

(328

)

 

 

457

 

 

 

762

 

 

 

(297

)

 

 

465

 

 

 

 

$

12,559

 

 

 

$

(2,612

)

 

 

$

9,947

 

 

 

$

12,063

 

 

 

$

(2,279

)

 

 

$

9,784

 

 

The amortization expense related to finite-lived intangible assets for the three and nine months ended September 30, 2011 was $118 million and $338 million, respectively. The amortization expense related to finite-lived intangible assets for the three and nine months ended September 30, 2010 was $108 million and $319 million, respectively.