United Healthcare 2015 Annual Report Download - page 80

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6. Property, Equipment and Capitalized Software
A summary of property, equipment and capitalized software is as follows:
(in millions)
December 31,
2015
December 31,
2014
Land and improvements ................................................. $ 237 $ 310
Buildings and improvements ............................................. 2,420 2,295
Computer equipment ................................................... 1,945 1,693
Furniture and fixtures ................................................... 790 675
Less accumulated depreciation ........................................... (2,163) (1,982)
Property and equipment, net ............................................. 3,229 2,991
Capitalized software .................................................... 2,642 2,399
Less accumulated amortization ........................................... (1,010) (972)
Capitalized software, net ................................................ 1,632 1,427
Total property, equipment and capitalized software, net ........................ $ 4,861 $ 4,418
Depreciation expense for property and equipment for 2015, 2014 and 2013 was $613 million, $532 million and
$445 million, respectively. Amortization expense for capitalized software for 2015, 2014 and 2013 was $430
million, $422 million and $411 million, respectively.
7. Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill, by reportable segment, were as follows:
(in millions) UnitedHealthcare OptumHealth OptumInsight OptumRx Consolidated
Balance at January 1, 2014 .............. $ 24,251 $ 2,860 $ 3,653 $ 840 $ 31,604
Acquisitions ......................... 266 978 591 — 1,835
Foreign currency effects and adjustments,
net ............................... (487) (4) (8) — (499)
Balance at December 31, 2014 ........... 24,030 3,834 4,236 840 32,940
Acquisitions ......................... 128 1,817 89 10,732 12,766
Foreign currency effects and adjustments,
net ............................... (1,233) 9 (29) — (1,253)
Balance at December 31, 2015 ........... $ 22,925 $ 5,660 $ 4,296 $ 11,572 $ 44,453
The increase in the Company’s goodwill is primarily due to the acquisition of Catamaran. For more detail on the
Catamaran acquisition, see Note 3 of the Notes to the Consolidated Financial Statements.
The gross carrying value, accumulated amortization and net carrying value of other intangible assets were as
follows:
December 31, 2015 December 31, 2014
(in millions)
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Customer-related ..................... $10,270 $ (2,796) $ 7,474 $ 5,021 $ (2,399) $ 2,622
Trademarks and technology ............. 682 (249) 433 527 (202) 325
Trademarks — indefinite-lived .......... 358 — 358 539 — 539
Other .............................. 209 (83) 126 267 (84) 183
Total ............................... $11,519 $ (3,128) $ 8,391 $ 6,354 $ (2,685) $ 3,669
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