Humana 2009 Annual Report Download - page 92

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
On October 1, 2007, we acquired CompBenefits Corporation, or CompBenefits, for cash consideration of
$369.6 million. CompBenefits provides dental and vision insurance benefits. The acquisition expanded our
commercial product offerings allowing for significant cross-selling opportunities with our medical insurance
products. The total consideration paid exceeded our estimated fair value of the net tangible assets acquired by
approximately $354.9 million of which we allocated $54.1 million to other intangible assets and $300.8 million
to goodwill. The other intangible assets, which primarily consist of customer and provider contracts, have a
weighted-average useful life of 11.5 years. The acquired goodwill is not deductible for tax purposes.
During 2008, we revised the fair value estimate of certain other intangible assets and future policy benefit
reserves associated with our fourth quarter 2007 acquisitions of CompBenefits and KMG. This resulted in an
increase in goodwill of $125.7 million, primarily related to refining assumptions used to calculate the fair value
assigned to the KMG future policy benefits payable and customer contracts acquired, net of related deferred
income taxes.
On March 1, 2007, we acquired DefenseWeb Technologies, Inc., or DefenseWeb, a company responsible
for delivering customized software solutions for the Department of Defense, for cash consideration of $27.5
million.
The results of operations and financial condition of Cariten, Metcare, OSF, SecureHorizons, KMG,
CompBenefits, and DefenseWeb have been included in our consolidated statements of income since the
acquisition dates.
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