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74 CVS Health
Notes to Consolidated Financial Statements
The Company amortizes intangible assets with finite lives over the estimated useful lives of the respective assets,
which have a weighted average useful life of 15.5 years. The weighted average useful lives of the Company’s
customer contracts and relationships and covenants not to compete are 15.5 years. The weighted average lives
of the Company’s favorable leases and other intangible assets are 15.6 years. Amortization expense for intangible
assets totaled $611 million, $518 million and $494 million in 2015, 2014 and 2013, respectively. The anticipated
annual amortization expense for these intangible assets for the next five years is as follows:
IN MILLIONS
2016 $ 760
2017 735
2018 705
2019 662
2020 490
The following table is a summary of the Company’s intangible assets as of December 31:
2015 2014
Gross
Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
IN MILLIONS Amount Amortization Amount Amount Amortization
Amount
Trademark (indefinitely-lived)
$ 6,398 $ — $ 6,398
$ 6,398 $ — $ 6,398
Customer contracts and relationships
and covenants not to compete
10,594 (4,092) 6,502
6,521 (3,549) 2,972
Favorable leases and other
1,595 (617) 978
880 (476) 404
$ 18,587 $ (4,709) $ 13,878
$ 13,799 $ (4,025) $ 9,774
5 | Share Repurchase Programs
The following share repurchase programs were authorized by the Company’s Board of Directors:
IN BILLIONS
Authorization Date Authorized Remaining
December 15, 2014 (“2014 Repurchase Program”) $ 10.0 $ 7.7
December 17, 2013 (“2013 Repurchase Program”) $ 6.0 $ —
September 19, 2012 (“2012 Repurchase Program”) $ 6.0 $ —
The share Repurchase Programs, each of which was effective immediately, permit the Company to effect repur-
chases from time to time through a combination of open market repurchases, privately negotiated transactions,
accelerated share repurchase (“ASR”) transactions, and/or other derivative transactions. The 2014 Repurchase
Program may be modified or terminated by the Board of Directors at any time. The 2013 and 2012 Repurchase
Programs have been completed, as described in the following paragraphs.
Pursuant to the authorization under the 2014 Repurchase Program, effective December 11, 2015, the Company
entered into a $725 million fixed dollar ASR with Barclays Bank PLC (“Barclays”). Upon payment of the $725 million
purchase price on December 14, 2015, the Company received a number of shares of its common stock equal to
80% of the $725 million notional amount of the ASR or approximately 6.2 million shares. At the conclusion of the
ASR program, the Company may receive additional shares equal to the remaining 20% of the $725 million notional
amount. The initial 6.2 million shares of common stock delivered to the Company by Barclays were placed into treasury