Aetna 2012 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2012 Aetna annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Annual Report- Page 91
The proposed acquisition remains subject to customary closing conditions, including expiration of the federal Hart-
Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”) waiting period and approvals of state departments
of insurance and other regulators, and therefore has not been reflected in these financial statements, including any
projections for future periods, unless expressly stated otherwise.
We completed the acquisitions of Medicity Inc. (“Medicity”), Prodigy Health Group (“Prodigy”), Genworth's
Medicare Supplement business and related blocks of in-force business and PayFlex Holdings, Inc. (“PayFlex”) in
2011. Each of these acquisitions was funded using available resources. Refer to Note 7 on page 93 for additional
information.
• Medicity Inc.
In January 2011, we acquired Medicity, a health information exchange company, for approximately $490
million, net of cash acquired. We recorded goodwill related to this transaction of approximately $385
million, an immaterial amount of which will be tax deductible. All of the goodwill related to this
acquisition was assigned to our Health Care segment.
• Prodigy Health Group
In June 2011, we acquired Prodigy, a third-party administrator of self-funded health care plans, for
approximately $600 million, net of cash acquired. We recorded goodwill related to this transaction of
approximately $445 million, of which approximately $52 million will be tax deductible. All of the
goodwill related to this acquisition was assigned to our Health Care segment.
• Genworth Financial, Inc.'s Medicare Supplement Business and Related Blocks of In-Force Business
In October 2011, we acquired Genworth's Medicare Supplement business and related blocks of in-force
business for approximately $276 million. We recorded $53 million of goodwill related to this transaction.
The excess of the purchase price over the fair market value of the net assets we acquired, including
goodwill, is tax deductible as a result of the transaction being treated as an asset purchase for tax purposes.
All of the goodwill related to this acquisition was assigned to our Health Care segment.
• PayFlex Holdings, Inc.
In October 2011, we acquired PayFlex, one of the nation’s largest independent account-based health plan
administrators, for approximately $200 million, net of cash acquired. We recorded goodwill related to this
transaction of approximately $149 million, an immaterial amount of which will be tax deductible. All of
the goodwill related to this acquisition was assigned to our Health Care segment.