Goodwill, Other Intangibles, and Property and Equipment

12 Months Ended

Dec. 31, 2013

Goodwill Other Intangibles And Property And Equipment [Abstract]

Goodwill, Other Intangibles, and Property and Equipment

Note 8 ― Goodwill, Other Intangibles, and Property and Equipment

Goodwill is primarily reported in the Global Health Care segment ($5.7 billion) and, to a lesser extent, the Global Supplemental Benefits segment ($340 million).

Activity in Goodwill during 2013 and 2012 was as follows:

(In millions)		2013		2012
Balance at January 1,	$	6,001	$	3,164

Goodwill acquired:
Finans Emeklilik		3		113
FirstAssist		-		7
HealthSpring		-		2,541
Great American Supplement Benefits		-		168
Other		33


Impact of foreign currency translation		(8)		8

Balance at December 31,	$	6,029	$	6,001

Other intangible assets were comprised of the following at December 31:



				Accumulated		Net Carrying
(Dollars in millions)		Cost		Amortization		Value

2013
Customer relationships	$	1,289	$	635	$	654
Other		324		76		248
Total reported in other assets, including other intangibles		1,613		711		902
Value of business acquired (reported in deferred policy acquisition costs)		168		20		148
Internal-use software (reported in property and equipment)		1,942		1,307		635
Total other intangible assets	$	3,723	$	2,038	$	1,685

2012
Customer relationships	$	1,278	$	466	$	812
Other		328		80		248
Total reported in other assets, including other intangibles		1,606		546		1,060
Value of business acquired (reported in deferred policy acquisition costs)		172		2		170
Internal-use software (reported in property and equipment)		1,738		1,191		547
Total other intangible assets	$	3,516	$	1,739	$	1,777

Property and equipment was comprised of the following as of December 31:


				Accumulated		Net Carrying
(Dollars in millions)		Cost		Amortization		Value

2013
Internal-use software	$	1,942	$	1,307	$	635
Other property and equipment		1,747		918		829
Total property and equipment	$	3,689	$	2,225	$	1,464

2012
Internal-use software	$	1,738	$	1,191	$	547
Other property and equipment		1,415		842		573
Total property and equipment	$	3,153	$	2,033	$	1,120

Other property and equipment includes assets recorded under capital leases with a cost of $306 million, accumulated amortization of $16 million, and a net carrying value of $290 million as of December 31, 2013. Assets under capital leases were not material in 2012.

Depreciation and amortization was comprised of the following for the years ended December 31:


(Dollars in millions)	2013		2012		2011
Internal-use software	$	225	$	209	$	187
Other property and equipment		160		144		117
Value of business acquired (reported in deferred policy acquisition costs)		19		2		-
Other intangibles		193		205		41
Total depreciation and amortization	$	597	$	560	$	345

Other property and equipment includes depreciation on assets recorded under capital leases of $16 million in 2013.

The increase in amortization of other intangibles in 2012 relates primarily to the acquisitions of HealthSpring and, to a lesser extent, Great American Supplemental Benefits and Finans Emeklilik.

The Company estimates annual pre-tax amortization for intangible assets, including internal-use software, over the next five calendar years to be as follows: $410 million in 2014, $327 million in 2015, $253 million in 2016, $167 million in 2017, and $133 million in 2018.

- Definition

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables. Disclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables.

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