Aetna 2013 Annual Report Download - page 105

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Annual Report- Page 99
7. Goodwill and Other Acquired Intangible Assets
As discussed in Note 3, we completed the Coventry acquisition in 2013. 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 change in goodwill in 2013 and 2012 is as follows:
(Millions) 2013 2012
Balance, beginning of the period $ 6,214.4 $ 6,203.9
Goodwill acquired:
Coventry (1) 4,014.8 —
Prodigy —(1.7)
Medicity —.1
PayFlex —1.6
Genworth —1.5
Other (1.7) 9.0
Balance, end of the period (2) $ 10,227.5 $ 6,214.4
(1) Goodwill related to the acquisition of Coventry is considered preliminary, pending the final allocation of the applicable purchase price.
(2) At both December 31, 2013 and 2012, approximately $113 million was assigned to the Group Insurance segment, with the remainder
assigned to the Health Care segment.
Other acquired intangible assets at December 31, 2013 and 2012 were comprised of the following:
(Millions) Cost Accumulated
Amortization Net Balance Amortization
Period (Years)
2013
Provider networks $ 1,253.2 $ 508.8 $ 744.4 12-25 (1)
Customer lists 1,347.0 361.8 985.2 5-14 (1)
Value of business acquired 149.2 48.5 100.7 20 (2)
Technology 146.6 49.5 97.1 4-10
Other 6.7 1.8 4.9 2-15
Definite-lived trademarks 165.0 25.5 139.5 9-20
Indefinite-lived trademarks 22.3 — 22.3
Total other acquired intangible assets $ 3,090.0 $ 995.9 $ 2,094.1
2012
Provider networks $ 703.2 $ 458.2 $ 245.0 12-25 (1)
Customer lists 657.4 370.2 287.2 5-14 (1)
Value of business acquired 149.2 29.2 120.0 20 (2)
Technology 116.6 28.0 88.6 5-10
Other 6.7 1.5 5.2 2-15
Definite-lived trademarks 65.0 14.6 50.4 9-20
Indefinite-lived trademarks 22.3 — 22.3
Total other acquired intangible assets $ 1,720.4 $ 901.7 $ 818.7
(1) The amortization period for our provider networks and customer lists includes an assumption of renewal or extension of these
arrangements. At December 31, 2013 and 2012, the periods prior to the next renewal or extension for our provider networks primarily
ranged from 1 to 3 years and the period prior to the next renewal or extension for our customer lists was approximately one year and two
years, respectively. Any costs related to the renewal or extension of these contracts are expensed as incurred.
(2) VOBA is being amortized over the expected life of the acquired contracts in proportion to estimated premium.