Anthem Blue Cross 2000 Annual Report Download - page 10

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Anthem Insurance Companies, Inc.
Notes to Consolidated Financial Statements (continued)
1. Basis of Presentation and Significant Accounting Policies (continued)
Other revenue principally includes amounts from the sales of prescription drugs and revenues are recognized as
prescription drug orders are delivered or shipped.
Federal Income Taxes: Anthem files a consolidated return with its subsidiaries that qualify as defined by the Internal
Revenue Code.
Reclassifications: Certain prior year balances have been reclassified to conform to the current year presentation.
2. Acquisitions, Divestitures and Discontinued Operations
Acquisitions:
2000
On June 5, 2000, the Company completed its purchase of substantially all of the assets and liabilities of Associated
Hospital Service of Maine, formerly d/b/a Blue Cross and Blue Shield of Maine (“BCBS-ME”), in accordance with
the Asset Purchase Agreement dated July 13, 1999. The purchase price was $95.4 (including direct costs of
acquisition) and resulted in $92.6 of goodwill and other intangible assets which are being amortized over periods
which range from ten to 20 years. The application of purchase accounting for this acquisition is subject to further
refinement based on final valuation studies and post-closing adjustments in certain circumstances. This acquisition
was accounted for as a purchase and the net assets and results of operations have been included in the Company’ s
consolidated financial statements from the purchase date. The pro forma effects of the BCBS-ME acquisition would
not be material to the Company’ s consolidated results of operations for periods preceding the purchase date.
1999
On October 27, 1999, the Company completed its purchase of the assets and liabilities of New Hampshire-Vermont
Health Services, formerly d/b/a Blue Cross Blue Shield of New Hampshire (“BCBS-NH”), in accordance with the
Asset Purchase Agreement entered into on February 19, 1999. The purchase price was $125.4 (including direct
costs of acquisition), which resulted in $107.9 of goodwill and other intangible assets which are being amortized
over periods which range from two to 20 years.
On November 16, 1999, the Company completed its purchase of the stock of Rocky Mountain Hospital and Medical
Service, formerly d/b/a Blue Cross and Blue Shield of Colorado and Blue Cross and Blue Shield of Nevada
(“BCBS-CO/NV”). The purchase price was $160.7 (including direct costs of acquisition) and resulted in $152.1 of
goodwill and other intangible assets which are being amortized over periods which range from five to 20 years.
These acquisitions were accounted for as purchases and the net assets and results of operations have been included
in the Company’ s consolidated financial statements from the respective purchase dates. During 2000, purchase
price allocations for these acquisitions were refined based on final valuation studies resulting in increases to
goodwill and other intangible assets of $33.8.