| Changes in carrying amounts of goodwill by reportable segments |
The changes in the carrying amounts of goodwill by reportable segment for the years ended December 31, 2013 and 2012 are as follows (in thousands): | | | | | | | | | | | | | | PBM | | HCIT | | Total | Balance at December 31, 2011 | $ | 271,380 |
| | $ | 19,665 |
| | $ | 291,045 |
| HealthTran acquisition (1) | 173,642 |
| | — |
| | 173,642 |
| Catalyst Merger (2) | 4,010,235 |
| | — |
| | 4,010,235 |
| Separate transactions (3) | (4,607 | ) | | — |
| | (4,607 | ) | Measurement periods adjustments (4) | 7,723 |
| | — |
| | 7,723 |
| Balance at December 31, 2012 | 4,458,373 |
| | 19,665 |
| | 4,478,038 |
| Acquisitions (5) | 225,761 |
| | — |
| | 225,761 |
| Measurement periods adjustments (6) | 16,476 |
| | — |
| | 16,476 |
| Balance at December 31, 2013 | $ | 4,700,610 |
| | $ | 19,665 |
| | $ | 4,720,275 |
|
| | (1) | Initial goodwill recorded for the acquisition of HealthTran in January 2012. |
| | (2) | Initial goodwill recorded in connection with the Merger with Catalyst in July 2012. |
| | (3) | Adjustments to goodwill for transactions entered into and executed by Catalyst prior to the Merger deemed to have future benefit to the Company and not recorded as part of purchase accounting. |
| | (4) | Adjustments to purchase price, including settlement of working capital adjustment for recent acquisitions during the measurement period. The measurement period adjustments were not recast in the 2011 consolidated financial statements as they were not deemed material. |
| | (5) | Initial goodwill recorded in connection with the acquisition of Restat in October 2013 and another insignificant acquisition in 2013. |
| | (6) | Adjustments to the fair value of assets acquired and liabilities assumed for recent acquisitions during the measurement period. The measurement period adjustments were not recast to the 2012 consolidated financial statements as they were not deemed material. |
|
| Components of intangible assets |
Definite-lived intangible assets are amortized over the useful lives of the related assets. The components of intangible assets were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013 | | December 31, 2012 | | Gross Carrying Amount | | Accumulated Amortization | | Net | | Gross Carrying Amount | | Accumulated Amortization | | Net | Customer relationships | $ | 1,528,475 |
| | $ | 355,737 |
| | $ | 1,172,738 |
| | $ | 1,346,874 |
| | $ | 155,343 |
| | $ | 1,191,531 |
| Acquired software | — |
| | — |
| | — |
| | 3,765 |
| | 3,765 |
| | — |
| Trademarks/Trade names | 1,000 |
| | 250 |
| | 750 |
| | 14,070 |
| | 14,070 |
| | — |
| Non-compete agreements | 13,430 |
| | 6,463 |
| | 6,967 |
| | 10,410 |
| | 4,294 |
| | 6,116 |
| Licenses | 2,060 |
| | 1,096 |
| | 964 |
| | 2,060 |
| | 716 |
| | 1,344 |
| Total | $ | 1,544,965 |
| | $ | 363,546 |
| | $ | 1,181,419 |
| | $ | 1,377,179 |
| | $ | 178,188 |
| | $ | 1,198,991 |
|
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