Business Combinations (Notes)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

8.    Business Combinations

During the nine months ended September 30, 2019, the Company completed several business combinations for total cash consideration of $9.7 billion.

The total consideration exceeded the estimated fair value of the net tangible assets acquired by $8.6 billion, of which $2.0 billion has been allocated to finite-lived intangible assets and $6.6 billion to goodwill. The goodwill is not deductible for income tax purposes.

Acquired tangible assets (liabilities) at acquisition date were:

(in millions)
Cash and cash equivalents	$	1,537
Accounts receivable and other current assets	1,775
Property, equipment and other long-term assets	1,941
Medical costs payable	(868		)
Accounts payable and other current liabilities	(1,669		)
Other long-term liabilities	(1,283		)
Total net tangible assets	$	1,433

The preliminary purchase price allocations for the various business combinations are subject to adjustment as valuation analyses, primarily related to intangible assets and contingent and tax liabilities, are finalized.

The acquisition date fair values and weighted-average useful lives assigned to acquired finite-lived intangible assets were:

(in millions, except years)	Fair Value		Weighted-Average Useful Life
Customer-related	$	1,670	14
Trademarks and technology	117		4
Other	164		10
Total acquired finite-lived intangible assets	$	1,951	13

The results of operations and financial condition of acquired entities have been included in the Company’s consolidated results and the results of the corresponding operating segment as of date of acquisition. Through September 30, 2019, acquired entities’ impact on revenues and net earnings was not material.

Unaudited pro forma revenues for the nine months ended September 30, 2019 and 2018 as if the acquisitions had occurred on January 1, 2018 were immaterial for both periods. The pro forma effects of the acquisitions on net earnings were immaterial for both years.