HUMANA INC - 10-Q filing on 2016-11-04

GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for our reportable segments for the nine months ended September 30, 2016 were as follows:



	Retail		Group		Healthcare Services		Total
	(in millions)
Balance at January 1, 2016	$	1,069	$	385	$	1,811	$	3,265
Acquisitions	—		—		7		7
Balance at September 30, 2016	$	1,069	$	385	$	1,818	$	3,272

The following table presents details of our other intangible assets included in other long-term assets in the accompanying condensed consolidated balance sheets at September 30, 2016 and December 31, 2015.



		September 30, 2016						December 31, 2015
	Weighted Average Life	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
		($ in millions)
Other intangible assets:
Customer contracts/ relationships	9.8 yrs	$	566	$	333	$	233	$	566	$	292	$	274
Trade names and technology	8.3 yrs	104		66		38		104		54		50
Provider contracts	14.5 yrs	51		28		23		51		24		27
Noncompetes and other	8.2 yrs	32		28		4		32		26		6
Total other intangible assets	9.8 yrs	$	753	$	455	$	298	$	753	$	396	$	357

Amortization expense for other intangible assets was approximately $18 million for the three months ended September 30, 2016 and $22 million for the three months ended September 30, 2015. For the nine months ended September 30, 2016 and 2015, amortization expense for other intangible assets was approximately $59 million and $72 million, respectively. The following table presents our estimate of amortization expense for 2016 and each of the five next succeeding years:



	(in millions)
For the years ending December 31,:
2016	$	77
2017	71
2018	63
2019	52
2020	48
2021	14