Audwin Chang's Report

\n\nThe acquisition of Aetna by CVS Health in 2018 significantly influenced the company's financial landscape. Here's a detailed breakdown of the contributions from this strategic move:\n\n- Goodwill: The acquisition led to a substantial increase in goodwill, distributed across CVS Health's business segments as follows:\n - Health Care Benefits: $44,484 million\n - Pharmacy Services: $1,500 million\n - Retail/LTC: $700 million\n - Total goodwill amounted to $46,684 million, with approximately $165 million being deductible for income tax purposes.\n\n- Intangible Assets: The Aetna acquisition also brought a variety of intangible assets to CVS Health, valued at a total of $23,746 million. These assets, along with their weighted average useful lives, include:\n - Customer relationships: $13,630 million (14.4 years)\n - Technology: $1,060 million (3.0 years)\n - Provider networks: $4,200 million (20.0 years)\n - Value of Business Acquired: $590 million (20.0 years)\n - Trademark (definite-lived): $65 million (5.0 years)\n - Trademark (indefinitely-lived): $4,100 million\n\n- Consolidated Results Of Operations: For the year ending December 31, 2018, CVS Health reported $5.6 billion in revenues and $146 million in income before income tax provision, attributable to Aetna's operations from the acquisition date to the end of the year.\n\n- Investments: The total investments as of December 31, 2018, were categorized as follows:\n - Debt securities available for sale: $15,255 million\n - Mortgage loans: $1,361 million\n - Other investments: $1,638 million\n - The cumulative total investments reached $18,254 million.\n\nThese figures underscore the significant role the Aetna acquisition has played in shaping CVS Health's financial position and operational results in 2018.