Anthem Blue Cross 2001 Annual Report Download - page 50

48
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 $90.5 of goodwill and other intangible assets which are being amortized over periods
ranging from ten to 20 years. In 2001, goodwill was reduced by $2.1 for purchase price allocation adjustments based
on final valuation studies. 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 ranging 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 ranging 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.
Unaudited pro forma results of operations assuming the 1999 acquisitions occurred on January 1, 1999, would have
resulted in total revenues of $7,186.4, income from continuing operations of $11.5 and net income of $5.5 for 1999.
Divestitures:
2001
On May 31, 2001, Anthem Insurance and its subsidiary Anthem Alliance Health Insurance Company (“Alliance”),
sold the TRICARE operations of Alliance to a subsidiary of Humana, Inc. for $45.0. The transaction, which closed
on May 31, 2001, resulted in a gain on sale of subsidiary operations of $25.0, net of selling expenses.
1999
During 1999, the Company disposed of several small business operations, which were no longer deemed
strategically aligned with the Company’s core business. The Company recognized a loss of $14.2 (net of income tax
benefit of $6.1) on these disposals. The pro forma effects of these divestitures are insignificant to the consolidated
results of operations.
Discontinued Operations:
1999
During 1999, the Company recognized additional losses of $6.0, net of income tax benefit of $6.2, resulting from
sales agreement contingency adjustments relating to the discontinued operations sold in prior years.