Goodwill and Intangible Assets

Goodwill and Intangible Assets

The following table summarizes the changes in goodwill by operating segment ($ in millions):



	Managed Care			Specialty Services		Total
Balance as of December 31, 2015	$	361		$	481	$	842
Acquisitions and purchase accounting adjustments	3,657			216		3,873
Translation impact	(3		)	—		(3		)
Balance as of December 31, 2016	4,015			697		4,712
Acquisitions and purchase accounting adjustments	—			37		37
Balance as of December 31, 2017	$	4,015		$	734	$	4,749

Goodwill was related to the acquisitions and fair value allocations discussed in Note 3, Health Net and Note 4, Acquisitions and Noncontrolling Interest.

Intangible assets at December 31, consist of the following ($ in millions):



							Weighted Average Life in Years
	2017			2016			2017	2016
Purchased contract rights	$	1,173		$	1,171		12.6	12.6
Provider contracts	274			285			11.9	10.7
Customer relationships	22			22			8.2	8.2
Trade names	162			163			9.6	9.6
Developed technologies	109			110			5.0	5.0
Other Intangibles	7			—			2.8	—
Intangible assets	1,747			1,751			11.6	11.5
Less accumulated amortization:
Purchased contract rights	(188		)	(95		)
Provider contracts	(66		)	(55		)
Customer relationships	(21		)	(21		)
Trade names	(34		)	(17		)
Developed technologies	(40		)	(18		)
Total accumulated amortization	(349		)	(206		)
Intangible assets, net	$	1,398		$	1,545

Amortization expense was $156 million, $147 million and $24 million for the years ended December 31, 2017, 2016 and 2015, respectively. Estimated total amortization expense related to intangible assets for each of the five succeeding fiscal years is as follows ($ in millions):



Year	Expense
2018	$	156
2019	156
2020	154
2021	134
2022	128

- 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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