Aetna 2006 Annual Report Download - page 61

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7. Goodwill and Other Acquired Intangible Assets
As a result of the acquisitions described in Note 3 on page 57, we increased the carrying value of goodwill in 2006
and 2005 as follows:
(Millions) 2006 2005
Balance, beginning of the period 4,523.2$ 3,687.8$
Goodwill acquired:
Broadspire Disability 99.0 -
ActiveHealth (10.1)
(1)
309.1
HMS (9.1)
(1)
290.8
SRC - 139.8
Other .6 95.7
(2)
Balance, end of the period 4,603.6$ 4,523.2$
(1) In 2006, we determined that additional net operating loss carry forwards are available to us from the ActiveHealth and HMS
acquisitions. As a result, goodwill was reduced in 2006 as we recognized deferred tax assets for these net operating loss carry
forwards.
(2) Primarily includes goodwill recorded related to the 2005 acquisitions of certain assets from Magellan and the remaining interest
in ASP. Refer to Note 3 on page 57 for additional information.
At December 31, 2006, goodwill was assigned to the Health Care and Group Insurance segments in the amounts of
$4.5 billion and $99 million, respectively. At December 31, 2005, all goodwill was assigned to the Health Care
segment.
Other acquired intangible assets at December 31, 2006 and 2005 were comprised of the following:
Accumulated Amortization
(Millions) Cost Amortization Net Balance Period (Years)
2006
Other acquired intangible assets:
Provider networks 696.2$ 282.0$ 414.2$ 12-25
Customer lists 250.6
(1)
51.3 199.3 4-10
Technology 56.5
(1)
21.3 35.2 3-5
Other 31.4
(1)
10.8 20.6 3-12
Trademarks 22.3 - 22.3 Indefinite
Total other acquired intangible assets 1,057.0$ 365.4$ 691.6$
2005
Other acquired intangible assets:
Customer lists 1,132.4$
(2)
937.5$ 194.9$ 4-9
Provider networks 696.2
(2)
253.2 443.0 12-25
Technology 44.1
(2)
6.2 37.9 3-5
Other 29.9
(2)
3.1 26.8 3-12
Trademarks 22.3
(2)
- 22.3 Indefinite
Total other acquired intangible assets 1,924.9$ 1,200.0$ 724.9$
(1) As a result of our acquisitions in 2006, we assigned $37.2 million to customer list assets, $12.4 million to technology assets and
$2.7 million to other assets.
(2) As a result of our acquisitions in 2005, we assigned $213.4 million to customer list assets, $16.0 million to provider network
assets, $40.1 million to technology assets, $29.9 million to other assets and $22.3 million to trademark assets.
Page 59