GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in goodwill for the years ended December 31, 2015 and 2014 were as follows:



	2015			2014

Balance, beginning of year	$	6,032		$	5,649
Goodwill acquired during the year	33			383
Reclassification to assets held for sale	(160		)	—
Balance, end of year	$	5,905		$	6,032

Principally all of the Company’s goodwill as of December 31, 2015 and 2014 was associated with its DIS business.

For the year ended December 31, 2015, goodwill acquired during the period was principally associated with the MemorialCare and Superior Mobile Medics acquisitions (see Note 5), of which $32 million is deductible for tax purposes. The reclassification to assets held for sale was principally associated with Clinical Trials and non-core assets (see Note 6). Acquisitions during the year also resulted in $26 million of intangible assets, principally comprised of customer-related intangibles and tradenames.

For the year ended December 31, 2014, goodwill acquired was principally associated with the Solstas, Summit Health and Steward acquisitions (see Note 5), of which $90 million is deductible for tax purposes. Acquisitions during the year also resulted in $270 million of intangible assets, principally comprised of customer-related intangibles and tradenames.

Intangible assets at December 31, 2015 and 2014 consisted of the following:



	Weighted Average Amort-ization Period (Years)	December 31, 2015							December 31, 2014
	Weighted Average Amort-ization Period (Years)	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Amortizing intangible assets:
Customer-related intangibles	19	$	936	$	(296	)	$	640	$	929	$	(259	)	$	670
Non-compete agreements	6	6		(3		)	3		43		(37		)	6
Technology	16	93		(35		)	58		118		(38		)	80
Other	9	106		(59		)	47		152		(82		)	70
Total	17	1,141		(393		)	748		1,242		(416		)	826

Intangible assets not subject to amortization:
Tradenames		235		—			235		244		—			244
Other		1		—			1		1		—			1
Total intangible assets		$	1,377	$	(393	)	$	984	$	1,487	$	(416	)	$	1,071

For the year ended December 31, 2015, intangible assets with a net book value of $16 million (original cost of $48 million and accumulated amortization of $32 million), principally associated with Clinical Trials and non-core assets (see Note 6), were reclassified to assets held for sale. During the second quarter of 2015, a fully amortized contractual non-compete agreement (original cost of $37 million and accumulated amortization of $37 million) that expired was written-off. Additionally, the Company recognized impairment charges associated with intangible assets of $16 million associated with Celera Products and winding down a subsidiary, which have been included in other operating expense (income), net for the year ended December 31, 2015.

Amortization expense related to intangible assets was $81 million, $94 million and $79 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of December 31, 2015 is as follows:



Year Ending December 31,
2016	$	70
2017	66
2018	62
2019	62
2020	62
Thereafter	426
Total	$	748

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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