Humana 2010 Annual Report Download - page 108

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. MEDICARE PART D
As discussed in Note 2, we cover prescription drug benefits in accordance with Medicare Part D under
multiple contracts with CMS. The consolidated balance sheets include the following amounts associated with
Medicare Part D as of December 31, 2010 and 2009:
2010 2009
Risk
Corridor
Settlement
CMS
Subsidies
Risk
Corridor
Settlement
CMS
Subsidies
(in thousands)
Other current assets ................................ $ 1,563 $ 16,211 $ 2,165 $ 11,660
Trade accounts payable and accrued expenses ........... (389,203) (170,231) (146,750) (402,854)
Net current liability ............................ $(387,640) $(154,020) $(144,585) $(391,194)
7. PROPERTY AND EQUIPMENT, NET
Property and equipment was comprised of the following at December 31, 2010 and 2009:
2010 2009
(in thousands)
Land ..................................... $ 18,405 $ 16,206
Buildings and leasehold improvements .......... 476,057 368,341
Equipment ................................. 539,518 536,328
Computer software .......................... 1,025,468 1,013,461
2,059,448 1,934,336
Accumulated depreciation .................... (1,244,111) (1,255,194)
Property and equipment, net ............... $ 815,337 $ 679,142
Depreciation expense was $225.1 million in 2010, $213.0 million in 2009, and $183.3 million in 2008,
including amortization expense for capitalized internally developed and purchased software of $135.5 million in
2010, $126.9 million in 2009, and $92.9 million in 2008. The table above includes $131.0 million of net property
and equipment acquired in connection with the December 21, 2010 acquisition of Concentra more fully described
in Note 3.
8. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amount of goodwill, by segment, for the years ended December 31, 2010 and 2009
were as follows:
Commercial Government Total
(in thousands)
Balance at December 31, 2008 ............................... $1,268,899 $694,212 $1,963,111
Subsequent payments/adjustments related to 2008
acquisitions ......................................... 12,726 17,087 29,813
Balance at December 31, 2009 ............................... 1,281,625 711,299 1,992,924
Acquisitions .......................................... 538,293 0 538,293
Subsequent payments/adjustments related to 2008
acquisitions ......................................... 8,731 27,861 36,592
Balance at December 31, 2010 ............................... $1,828,649 $739,160 $2,567,809
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