This excerpt taken from the MHS 10-K filed Mar 1, 2005.
5. GOODWILL AND INTANGIBLE ASSETS
As of December 25, 2004 and December 27, 2003, recorded goodwill amounted to $3,310.2 million. See Note 2, Summary of Significant Accounting Policies, for further information.
Intangible assets, principally comprised of the recorded value of Medcos client relationships at the time of Mercks acquisition of the Company in 1993, are as follows ($ in millions):
For the year ended December 25, 2004, the Company revised the weighted average useful life of its intangible asset from the Merck acquisition to 23 years, which resulted in an annual amortization expense increase of $85.6 million. For the year ended December 27, 2003, this intangible asset was amortized on a straight-line basis over a weighted average useful life of 35 years. Aggregate intangible asset amortization expense for each of the five succeeding fiscal years, assuming a 23 year weighted average useful life, is estimated to be $180 million.