Humana 2010 Annual Report Download - page 102

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
total consideration paid exceeded our estimated fair value of the net tangible assets acquired by approximately
$145.8 million of which we allocated $52.3 million to other intangible assets and $93.5 million to goodwill. The
other intangible assets, which primarily consist of customer contracts, have a weighted-average useful life of 11.6
years. The acquired goodwill is not deductible for tax purposes.
On August 29, 2008, we acquired Metcare Health Plans, Inc., or Metcare, for cash consideration of
approximately $14.9 million. The acquisition expanded our Medicare HMO membership in central Florida.
On May 22, 2008, we acquired OSF Health Plans, Inc., or OSF, a managed care company serving both
Medicare and commercial members in central Illinois, for cash consideration of approximately $87.3 million,
including the payment of $3.3 million during 2009 to settle a purchase price contingency. This acquisition
expanded our presence in Illinois, broadening our ability to serve multi-location employers with a wider range of
products including our specialty offerings. The total consideration paid exceeded our estimated fair value of the
net tangible assets acquired by approximately $31.1 million of which we allocated $10.1 million to other
intangible assets and $21.0 million to goodwill. The other intangible assets, which primarily consist of customer
contracts, have a weighted-average useful life of 9.9 years. The acquired goodwill is not deductible for tax
purposes.
On April 30, 2008, we acquired UnitedHealth Group’s Las Vegas, Nevada individual SecureHorizons
Medicare Advantage HMO business, or SecureHorizons, for cash consideration of approximately $185.3 million,
plus subsidiary capital and surplus requirements of $40 million. The acquisition expanded our presence in the
Las Vegas market. The total consideration paid exceeded our estimated fair value of the net tangible assets
acquired by approximately $185.3 million of which we allocated $69.3 million to other intangible assets and
$116.0 million to goodwill. The other intangible assets, which primarily consist of customer contracts, have a
weighted-average useful life of 10.9 years. The acquired goodwill is not deductible for tax purposes.
The purchase agreements for certain of the acquisitions discussed above occurring prior to January 1, 2009
contain provisions under which there may be future contingent consideration paid or received primarily
associated with balance sheet settlements. Any contingent consideration paid or received will be recorded as an
adjustment to goodwill when the contingencies are resolved. We do not expect these adjustments to be material.
The results of operations and financial condition of Cariten, Metcare, OSF, and SecureHorizons have been
included in our consolidated statements of income and consolidated balance sheets since the acquisition dates.
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