HUMANA INC | 2013 | FY | 3


8. GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of goodwill for our reportable segments has been retrospectively adjusted to conform to the 2013 segment change discussed in Note 2, as well as refinements in our estimates regarding the allocation of purchase price associated with our Metropolitan acquisition discussed in Note 3. Changes in the carrying amount of goodwill for our reportable segments for the years ended December 31, 2013 and 2012 were as follows:

 

     Retail     Employer
Group
     Health &
Well -Being
Services
    Other
Businesses
     Total  
     (in millions)  

Balance at December 31, 2011

   $ 762      $ 196       $ 1,733      $ 49       $ 2,740   

Acquisitions

     172        0         679        43         894   

Subsequent payments/adjustments

     (3     9         0        0         6   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Balance at December 31, 2012

   $ 931      $ 205       $ 2,412      $ 92       $ 3,640   

Acquisitions

     76        0         40        0         116   

Dispositions

     0        0         (17     0         (17

Subsequent payments/adjustments

     0        0         (6     0         (6
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Balance at December 31, 2013

   $ 1,007      $ 205       $ 2,429      $ 92       $ 3,733   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

The following table presents details of our other intangible assets included in other long-term assets in the accompanying consolidated balance sheets at December 31, 2013 and 2012:

 

    Weighted
Average
Life
    2013     2012  
      Cost     Accumulated
Amortization
    Net     Cost     Accumulated
Amortization
    Net  
          (in millions)  

Other intangible assets:

             

Customer contracts/relationships

    9.6 yrs      $ 792      $ 310      $ 482      $ 733      $ 237      $ 496   

Trade names and technology

    13.1 yrs        200        40        160        190        21        169   

Provider contracts

    15.0 yrs        51        23        28        51        19        32   

Noncompetes and other

    6.5 yrs        52        29        23        51        17        34   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other intangible assets

    10.3 yrs      $ 1,095      $ 402      $ 693      $ 1,025      $ 294      $ 731   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amortization expense for other intangible assets was approximately $117 million in 2013, $75 million in 2012, and $54 million in 2011. The following table presents our estimate of amortization expense for each of the five next succeeding fiscal years:

 

     (in millions)  

For the years ending December 31,:

  

2014

   $ 114   

2015

     103   

2016

     95   

2017

     85   

2018

     78   

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