Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

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


	Managed Care		Specialty Services		Total
Balance, December 31, 2020	$	16,974	$	1,678	$	18,652
Acquisition and purchase accounting adjustments	1,139		29		1,168
Divestitures	—		(24)		(24)
Reallocation	250		(250)		—

Translation impact	(25)		—		(25)
Balance, December 31, 2021	18,338		1,433		19,771
Acquisition and purchase accounting adjustments	172		905		1,077
Divestitures	—		(1,533)		(1,533)
Reallocation	4		(4)		—
Impairments	(66)		(304)		(370)
Translation impact	(133)		—		(133)
Balance, December 31, 2022	$	18,315	$	497	$	18,812

The decrease in the Specialty Services segment goodwill in 2022 was primarily driven by the ongoing portfolio review divestiture related activity during the year as discussed in Note 3. Acquisitions and Divestitures. In 2022, divestiture related reductions to goodwill included the completed divestitures of PANTHERx and Magellan Rx, as well as goodwill reclassified to other current assets associated with the divestiture of Magellan Specialty Health, which was considered held for sale as of December 31, 2022. The acquired goodwill in 2022 represents goodwill associated with the Magellan acquisition.

The Company's Specialty Services segment impairments in 2022 was primarily the result of the impairment of Federal Services business, which included $216 million of goodwill, in conjunction with the December 2022 announcement from the DoD that the Company was not awarded a TRICARE Managed Care Support Contract. The Managed Care segment impairment was the result of the divestiture of the Spanish and Central European businesses.

The majority of the increase in the Managed Care segment goodwill in 2021 was related to the acquisition of the remaining 60% interest in Circle Health.

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


					Weighted Average Life in Years
	2022		2021		2022	2021
Purchased contract rights and customer relationships	$	7,850	$	8,068	13.4	13.5
Trade names	983		1,107		15.4	13.3
Provider contracts	612		492		14.0	13.8
Developed technologies	390		369		5.3	5.4
Intangible assets	9,835		10,036		13.4	13.2
Less accumulated amortization:
Purchased contract rights and customer relationships	(2,193)		(1,642)
Trade names	(263)		(206)
Provider contracts	(183)		(139)
Developed technologies	(285)		(225)
Total accumulated amortization	(2,924)		(2,212)
Intangible assets, net	$	6,911	$	7,824

As described above, the decrease in intangible assets in 2022 was primarily driven by divestiture related activity, which included related impairments, during the year as discussed with goodwill above and in Note 3. Acquisitions and Divestitures.

Amortization expense was $817 million, $770 million, and $719 million for the years ended December 31, 2022, 2021, and 2020, respectively. Estimated total amortization expense related to the December 31, 2022 intangible assets for each of the five succeeding fiscal years is as follows ($ in millions):


	Estimated Total Amortization Expense
2023	$	723
2024	707
2025	706
2026	689
2027	678