Goodwill, Other Intangibles, and Property and Equipment

12 Months Ended

Dec. 31, 2015

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 ($0.3 billion).

Goodwill activity during 2015 and 2014 was as follows:

(In millions)		2015		2014
Balance at January 1,	$	5,989	$	6,029

Goodwill acquired:
QualCare Alliance Networks, Inc.		74		-
Other		-		3

Impact of foreign currency translation		(44)		(43)
Balance at December 31,	$	6,019	$	5,989

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



				Accumulated		Net Carrying
(In millions)		Cost		Amortization		Value

2015
Customer relationships	$	1,264	$	867	$	397
Other		302		131		171
Total reported in other assets, including other intangibles		1,566		998		568
Value of business acquired (reported in deferred policy acquisition costs)		232		48		184
Internal-use software (reported in property and equipment)		2,442		1,708		734
Total other intangible assets	$	4,240	$	2,754	$	1,486

2014
Customer relationships	$	1,266	$	779	$	487
Other		313		91		222
Total reported in other assets, including other intangibles		1,579		870		709
Value of business acquired (reported in deferred policy acquisition costs)		165		30		135
Internal-use software (reported in property and equipment)		2,191		1,467		724
Total other intangible assets	$	3,935	$	2,367	$	1,568

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


				Accumulated		Net Carrying
(In millions)		Cost		Amortization		Value

2015
Internal-use software	$	2,442	$	1,708	$	734
Other property and equipment		1,574		774		800
Total property and equipment	$	4,016	$	2,482	$	1,534

2014
Internal-use software	$	2,191	$	1,467	$	724
Other property and equipment		1,740		962		778
Total property and equipment	$	3,931	$	2,429	$	1,502

Other property and equipment includes assets recorded under capital leases with a cost of $90 million, accumulated amortization of $44 million, and a net carrying value of $46 million as of December 31, 2015. Other property and equipment includes assets recorded under capital leases with a cost of $84 million, accumulated amortization of $36 million, and a net carrying value of $48 million as of December 31, 2014. Current capital lease agreements are for equipment and generally have a term of 48 months with the equipment returned to the lessor at the end of the term.

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


(In millions)	2015		2014		2013
Internal-use software	$	288	$	260	$	225
Other property and equipment		160		153		160
Value of business acquired (reported in deferred policy acquisition costs)		18		12		19
Other intangibles ⁽¹⁾		119		163		193
Total depreciation and amortization	$	585	$	588	$	597

(1) Includes the one-time $23 million benefit of a 2015 acquisition in which the fair value of acquired net assets exceeded the purchase price.

Other property and equipment includes amortization on assets recorded under capital leases of $22 million in 2015 and $20 million in 2014.

The Company estimates annual pre-tax amortization for intangible assets, including internal-use software, over the next five calendar years to be as follows: $432 million in 2016, $313 million in 2017, $216 million in 2018, $151 million in 2019, and $82 million in 2020.

- 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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