Annual report pursuant to Section 13 and 15(d)

Acquisitions (Tables)

v3.19.3.a.u2
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Business Acquisition, Pro Forma Information (unaudited)
The following table presents supplemental pro forma information for the year ended December 31, 2019 and 2018, respectively ($ in millions, except per share data):
 
 
Year Ended
December 31, 2019
 
Year Ended
December 31, 2018
Total revenues
 
$
102,379

 
$
88,842

Net earnings attributable to common stockholders
 
1,462

 
$
1,211

Diluted earnings per share
 
$
2.47

 
$
2.06


The following table presents supplemental pro forma information for the year ended December 31, 2018 and 2017, respectively ($ in millions, except per share data):
 
 
Year Ended
December 31, 2018
 
Year Ended
December 31, 2017
Total revenues
 
$
65,792

 
$
58,275

Net earnings attributable to common stockholders
 
$
1,342

 
$
936

Diluted earnings per share
 
$
3.22

 
$
2.27


Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The Company's allocation of the fair value of assets acquired and liabilities assumed as of the acquisition date of July 1, 2018 is as follows ($ in millions):
Assets acquired and liabilities assumed
 
 
Cash and cash equivalents
 
$
2,001

Premium and related receivables
 
442

Other current assets
 
32

Restricted deposits
 
495

Property, software and equipment
 
48

Intangible assets (a)
 
956

Other long-term assets
 
2

Total assets acquired
 
3,976

 
 
 
Medical claims liability
 
1,218

Accounts payable and accrued expenses
 
238

Return of premium payable
 
123

Unearned revenue
 
115

Other long-term liabilities
 
324

Total liabilities assumed
 
2,018

 
 
 
Total identifiable net assets
 
1,958

Goodwill (b)
 
1,663

Total assets acquired and liabilities assumed
 
$
3,621



Significant fair value adjustments are noted as follows:

(a)
The identifiable intangible assets acquired are to be measured at fair value as of the completion of the acquisition. The fair value of intangible assets is determined primarily using variations of the "income approach," which is based on the present value of the future after tax cash flows attributable to each identified intangible asset. Other valuation methods,
Schedule of Fair Values and Weighted Average Useful Loves for Identifiable Intangible Assets Acquired
The fair values and weighted average useful lives for identifiable intangible assets acquired are as follows:
 
 
Fair Value
 
Weighted Average Useful Life (in years)
Customer relationships
 
$
711

 
11
Trade name
 
196

 
20
Provider contracts
 
33

 
15
Developed technologies
 
16

 
2
Total intangible assets acquired
 
$
956

 
13


(b)
The acquisition resulted in $1.7 billion of goodwill related primarily to synergies expected from the acquisition and the assembled workforce of Fidelis Care. All of the goodwill has been assigned to the Managed Care segment. The goodwill is deductible for income tax purposes.