Humana 2014 Annual Report Download - page 104

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
96
On July 6, 2012, we acquired Humana At Home, Inc. (formerly known as SeniorBridge Family Companies, Inc.),
or Humana At Home, a chronic-care provider of in-home care for seniors, expanding our existing clinical and home
health capabilities and strengthening our offerings for members with complex chronic-care needs. The allocation of
the purchase price resulted in goodwill of $99 million and other intangible assets of $14 million. The goodwill was
assigned to the Healthcare Services segment. Goodwill and other intangible assets are not amortizable as deductible
expenses for tax purposes. The other intangible assets, which primarily consist of customer contracts, trade name, and
technology, have a weighted average useful life of 5.2 years.
Effective March 31, 2012, we acquired Arcadian Management Services, Inc., or Arcadian, a Medicare Advantage
health maintenance organization (HMO) serving members in 15 U.S. states, increasing Medicare membership and
expanding our Medicare footprint and future growth opportunities in these areas. The allocation of the purchase price
resulted in goodwill of $44 million and other intangible assets of $38 million. The goodwill was assigned to the Retail
segment. Goodwill and other intangible assets are not amortizable as deductible expenses for tax purposes. The other
intangible assets, which primarily consist of customer contracts and provider contracts, have a weighted average useful
life of 9.7 years.
The results of operations and financial condition of American Eldercare, Metropolitan, Humana At Home, and
Arcadian have been included in our consolidated statements of income and consolidated balance sheets from the
acquisition dates. In addition, during 2014, 2013 and 2012, we acquired other health and wellness and technology
related businesses which, individually or in the aggregate, have not had, or are not expected to have, a material impact
on our results of operations, financial condition, or cash flows. Acquisition-related costs recognized in each of 2014,
2013, and 2012 were not material to our results of operations. The pro forma financial information assuming the
acquisitions had occurred as of the beginning of the calendar year prior to the year of acquisition, as well as the revenues
and earnings generated during the current year were not material for disclosure purposes.