Aetna 2009 Annual Report Download - page 63

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7. Goodwill and Other Acquired Intangible Assets
As a result of recent acquisitions, in accordance with applicable accounting guidance, we allocated the amount paid to the
fair value of the net assets acquired, with any excess amounts recorded as goodwill. The increase in goodwill in 2009 and
2008 was as follows:
(Millions) 2009 2008
Balance, beginning of the period 5,085.6$ 5,081.0$
Goodwill acquired:
Horizon
(1)
56.8 -
Schaller Anderson 3.8 1.0
Goodhealth - 3.6
Balance, end of the period
(2)
5,146.2$ 5,085.6$
(1) Goodwill related to the acquisition of Horizon is considered preliminary, pending the final allocation of purchase price. (Refer to Note 3 on
page 55 for additional information).
(2) Approximately $5.0 billion and $104 million of goodwill was assigned to the Health Care and Group Insurance segments, respectively, at
both December 31, 2009 and 2008.
Other acquired intangible assets at December 31, 2009 and 2008 were comprised of the following:
Accumulated Amortization
(Millions) Cost Amortization Net Balance Period (Years)
2009
Other acquired intangible assets:
Provider networks 703.2$ 369.0$ 334.2$ 12-25
(2)
Customer lists 399.9 205.7 194.2 4-10
(2)
Technology 25.3 20.7 4.6 3-5
Other 58.6
(1)
23.2 35.4 2-15
Trademarks 22.3 - 22.3 Indefinite
Total other acquired intangible assets 1,209.3$ 618.6$ 590.7$
2008
Other acquired intangible assets:
Provider networks 703.2$ 340.2$ 363.0$ 12-25
Customer lists 399.9 150.8 249.1 4-10
Technology 25.3 14.7 10.6 3-5
Other 38.1 15.7 22.4 2-15
Trademarks 22.3 - 22.3 Indefinite
Total other acquired intangible assets 1,188.8$ 521.4$ 667.4$
(1) As a result of our acquisition of Horizon in 2009, we preliminarily assigned $21 million to Other.
w
(2) The amortization period for our customer lists and provider networks includes an assumption of renewal or extension of these
arrangements. At December 31, 2009, the period prior to the next renewal or extension for our provider networks ranges from 1 to 3 years
and the weighted average period prior to the next renewal or extension for our customer lists is .7 years. Any costs related to the renewal
or extension of these contracts is expensed as incurred.
We estimate annual pretax amortization for other acquired intangible assets over the next five years to be as follows:
(Millions)
2010 95.1$
2011 87.7
2012 76.2
2013 67.0
2014 47.9
Annual Report – Page 57