Humana 2015 Annual Report Download - page 110

Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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one year. Giving effect to this deferral, the new guidance is effective for us beginning with annual and interim periods
in 2018. We are currently evaluating the impact on our results of operations, financial condition, and cash flows.
There are no other recently issued accounting standards that apply to us or that are expected to have a material
impact on our results of operations, financial condition, or cash flows.
3. ACQUISITIONS AND DIVESTITURES
On June 1, 2015, we completed the sale of our wholly owned subsidiary, Concentra Inc., or Concentra, to MJ
Acquisition Corporation, a joint venture between Select Medical Holdings Corporation and Welsh, Carson, Anderson
& Stowe XII, L.P., a private equity fund, for approximately $1,055 million in cash, excluding approximately $22 million
of transaction costs. In connection with the sale, we recognized a pre-tax gain, net of transaction costs, of $270 million
which is reported as gain on sale of business in the accompanying condensed consolidated statements of income for
the year ended December 31, 2015.
In March 2015, we classified Concentra as held-for-sale and aggregated Concentra's assets and liabilities separately
on the balance sheet, including a reclassification of the December 31, 2014 balance sheet for comparative purposes.
The assets and liabilities of Concentra that were disposed of on June 1, 2015 and classified as held-for-sale as of
December 31, 2014 were as follows:
June 1, 2015 December 31, 2014
Assets (in millions)
Receivables, net $ 130 $ 115
Property and equipment, net 197 191
Goodwill 480 480
Other intangible assets, net 124 132
Other assets 27 25
Total assets disposed/held-for-sale $ 958 $ 943
Liabilities
Trade accounts payable and accrued expenses 81 90
Other liabilities 114 116
Total liabilities disposed/held-for-sale $ 195 $ 206
Net assets disposed $ 763 $ 737
For the year ended December 31, 2015, the accompanying condensed consolidated statements of income include
revenues related to Concentra of $411 million in 2015, $998 million in 2014, and $981 million in 2013.
On September 6, 2013, we acquired American Eldercare Inc., or American Eldercare, the largest provider of nursing
home diversion services in the state of Florida, serving frail and elderly individuals in home and community-based
settings. American Eldercare complements our core capabilities and strength in serving seniors and disabled individuals
with a unique focus on individualized and integrated care, and has contracts to provide Medicaid long-term support
services across the entire state of Florida. The enrollment effective dates for the various regions ranged from August
2013 to March 2014. The allocation of the purchase price resulted in goodwill of $76 million and other intangible assets
of $75 million. The goodwill was assigned to the Retail segment. The other intangible assets, which primarily consist
of customer contracts and technology, have a weighted average useful life of 9.3 years. Goodwill and other intangible
assets are amortizable as deductible expenses for tax purposes.
The results of operations and financial condition of American Eldercare has been included in our consolidated
statements of income and consolidated balance sheets from the acquisition date. In addition, during 2015, 2014 and