Humana 2008 Annual Report Download - page 93

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
8. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amount of goodwill, by segment, for the years ended December 31, 2008 and 2007
were as follows:
Commercial Government Total
(in thousands)
Balance at December 31, 2006 ................................. $ 782,501 $528,130 $1,310,631
Acquisitions and subsequent payments/adjustments ............. 335,822 17,486 353,308
Balance at December 31, 2007 ................................. 1,118,323 545,616 1,663,939
Acquisitions and subsequent payments/adjustments ............. 148,596 150,576 299,172
Balance at December 31, 2008 ................................. $1,266,919 $696,192 $1,963,111
Other intangible assets primarily relate to acquired customer contracts and are included with other long-term
assets in the consolidated balance sheets. Amortization expense for other intangible assets was approximately
$37.1 million in 2008, $22.4 million in 2007 and $20.0 million in 2006. The following table presents our estimate
of amortization expense for each of the five next succeeding fiscal years:
(in thousands)
For the years ending December 31,:
2009 ...................................................... $40,500
2010 ...................................................... 36,801
2011 ...................................................... 35,091
2012 ...................................................... 33,513
2013 ...................................................... 29,908
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, 2008 and 2007:
Weighted
Average
Life
2008 2007
Cost
Accumulated
Amortization Net Cost
Accumulated
Amortization Net
(in thousands)
Other intangible assets:
Customer contracts ....... 10.8 yrs $341,085 $86,288 $254,797 $251,107 $55,266 $195,841
Provider contracts ....... 18.0 yrs 36,253 4,903 31,350 27,783 3,022 24,761
Trade names and other .... 8.9yrs 22,486 7,345 15,141 20,416 4,245 16,171
Total other intangible
assets ........... 11.4 yrs $399,824 $98,536 $301,288 $299,306 $62,533 $236,773
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