Business Combinations Business Combinations (Notes)

12 Months Ended

Dec. 31, 2020

Business Combination Disclosure [Text Block]

Business Combinations

During the year ended December 31, 2020, the Company completed several business combinations for total cash consideration of $7.9 billion.

The total consideration exceeded the fair value of the net tangible assets acquired by $8.1 billion, of which $1.7 billion has been allocated to finite-lived intangible assets and $6.4 billion to goodwill. The majority of goodwill is not deductible for income tax purposes.

Acquired tangible assets (liabilities) at acquisition date were:


(in millions)
Cash and cash equivalents	$	715
Accounts receivable and other current assets	735
Property, equipment and other long-term assets	816
Medical costs payable	(316)
Accounts payable and other current liabilities	(861)
Other long-term liabilities	(817)
Total net tangible assets	$	272

The preliminary purchase price allocations for the various business combinations are subject to adjustment as valuation analyses, primarily related to intangible assets and contingent and tax liabilities, are finalized. See Note 6 for a summary of the acquisition date fair values and weighted-average useful lives assigned to acquired finite-lived intangible assets.

The results of operations and financial condition of acquired entities have been included in the Company’s consolidated results and the results of the corresponding operating segment as of date of acquisition. Through December 31, 2020, acquired entities impact on revenue and net earnings was not material.

Unaudited pro forma revenues for the years ended December 31, 2020 and 2019 as if the acquisitions had occurred on January 1, 2019 were immaterial for both periods. The pro forma effects of the acquisitions on net earnings were immaterial for both years.