Express Scripts 2014 Annual Report Download - page 74
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6. Goodwill and other intangibles
Followingisasummaryofourgoodwillandotherintangibleassetsforourtworeportablesegments,PBMand
OtherBusinessOperations.
December 31, 2014 December 31, 2013
(in millions)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Goodwill
PBM $29,290.6 $(107.1) $ 29,183.5 $29,315.4 $(107.4) $ 29,208.0
OtherBusinessOperations 97.4 — 97.4 97.4 — 97.4
$29,388.0 $(107.1) $ 29,280.9 $29,412.8 $(107.4) $ 29,305.4
Otherintangibleassets
PBM
Customercontracts(1) $17,571.4 $(5,603.2) $ 11,968.2 $17,602.3 $(3,926.2) $ 13,676.1
Tradenames 226.6 (61.3)165.3 226.6 (39.0)187.6
Miscellaneous(2) 116.6 (58.4)58.2 111.6 (47.4)64.2
17,914.6 (5,722.9)12,191.7 17,940.5 (4,012.6)13,927.9
OtherBusinessOperations
Customerrelationships 120.2 (82.6)37.6 127.3 (69.2)58.1
Tradenames 35.8 (9.9)25.9 35.8 (6.2)29.6
156.0 (92.5)63.5 163.1 (75.4)87.7
Totalotherintangibleassets $18,070.6 $(5,815.4) $ 12,255.2 $18,103.6 $(4,088.0) $ 14,015.6
(1) GrossPBMcustomercontractsbalanceasofDecember31,2014reflectsadecreaseof$2.2millionduetothe
finalizationofthepurchasepricerelatedtotheSmartDassetacquisition,asdescribedbelow.
(2) GrossPBMmiscellaneousbalanceasofDecember31,2014reflectsanincreaseof$18.6millionduetorecognitionof
deferredfinancingfeesrelatedtotheJune2014SeniorNotes(asdefinedinNote7-Financing).
Followingisasummaryofthechangeinthenetcarryingvalueofgoodwillbybusinesssegment:
(in millions) PBM
Other
Business
Operations Total
BalanceatDecember31,2012 $29,223.0 $97.4 $29,320.4
Purchasepriceallocationadjustment(1) (12.7)— (12.7)
Foreigncurrencytranslation (2.3)— (2.3)
BalanceatDecember31,2013 $29,208.0 $97.4 $29,305.4
Purchasepriceallocationadjustment(2) (22.5)— (22.5)
Foreigncurrencytranslation (2.0)— (2.0)
BalanceatDecember31,2014 $29,183.5 $97.4 $29,280.9
(1) GoodwillassociatedwiththeMergerhasbeenadjustedduetothefinalizationofthepurchasepriceallocationduring
2013.
(2) Goodwillhasbeenadjustedtocorrectcertaindeferredtaxesrelatedtoprioracquisitions.
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