Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

The following tables present the special items recorded by the Company in 2020, 2019 and 2018.

Three Months Ended











(In millions)	2020				2019				2018
Description of Special Item Charges (Benefits) and Financial Statement Line Item(s)	After-tax		Before-tax		After-tax		Before-tax		After-tax		Before-tax
Integration and transaction-related costs:
- Selling, general and administrative expenses	$	404	$	527	$	427	$	552	$	587	$	748
- Interest expense and other	—		—		—		—		179		227
- Net investment income	—		—		—		—		(97)		(123)
Integration and transaction-related costs	$	404	$	527	$	427	$	552	$	669	$	852
Debt extinguishment costs	$	151	$	199	$	—	$	—	$	—	$	—
Charge for organizational efficiency plan (Selling, general and administrative expenses)	24		31		162		207		—		—
Charges associated with litigation matters (Selling, general and administrative expenses)	19		25		41		51		19		25
Risk corridors recovery (Selling, general and administrative expenses)	(76)		(101)		—		—		—		—
Contractual adjustment for a former client (Pharmacy revenues)	(155)		(204)		—		—		—		—
(Gain) on sale of business	(3,217)		(4,203)		—		—		—		—
Charges (benefits) associated with tax reform:
- Selling, general and administrative expenses	$	—	$	—	$	—	$	—	$	1	$	2
- Tax (benefit)	—		—		—		—		(3)		—
Charges (benefits) associated with tax reform	$	—	$	—	$	—	$	—	$	(2)	$	2
Total impact from special items	$	(2,850)	$	(3,726)	$	630	$	810	$	686	$	879

Summarized Segment Financial Information

Summarized segment financial information for the years ended December 31 was as follows:


(In millions)	Evernorth		U.S. Medical		International Markets		Group Disability and Other		Corporate and Eliminations		Total
2020
Revenues from external customers	$	112,647	$	36,027	$	5,853	$	4,630	$	—	$	159,157
Inter-segment revenues	3,655		1,977		—		23		(5,655)
Net investment income	32		447		154		611		—		1,244
Total revenues	$	116,334	$	38,451	$	6,007	$	5,264	$	(5,655)	$	160,401
Net realized investment results from certain equity method investments	—		—		(130)		—		—		(130)
Special item related to contractual adjustment for a former client	(204)		—		—		—		—		(204)
Adjusted revenues	$	116,130	$	38,451	$	5,877	$	5,264	$	(5,655)	$	160,067
Depreciation and amortization	$	2,248	$	426	$	68	$	35	$	25	$	2,802
Income (loss) before taxes	$	3,684	$	3,956	$	1,048	$	4,514	$	(2,334)	$	10,868
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(17)		—		(20)		—		—		(37)
Net realized investment (gains) losses (1)	(17)		(77)		(161)		(24)		—		(279)
Amortization of acquired intangible assets	1,917		29		33		3		—		1,982
Special items
Integration and transaction-related costs	—		—		—		—		527		527
Debt extinguishment costs	—		—		—		—		199		199
Charge for organizational efficiency plan	—		—		—		—		31		31
Charges associated with litigation matters	—		—		—		—		25		25
Risk corridors recovery	—		(101)		—		—		—		(101)
Contractual adjustment for a former client	(204)		—		—		—		—		(204)
(Gain) on sale of business	—		—		—		(4,203)		—		(4,203)

Pre-tax adjusted income (loss) from operations	$	5,363	$	3,807	$	900	$	290	$	(1,552)	$	8,808

(In millions)	Evernorth		U.S. Medical		International Markets		Group Disability and Other		Corporate and Eliminations		Total
2019
Revenues from external customers	$	107,354	$	34,861	$	5,500	$	4,461	$	—	$	152,176
Inter-segment revenues	2,380		1,180		—		26		(3,586)
Net investment income (loss)	60		478		159		695		(2)		1,390
Total revenues	$	109,794	$	36,519	$	5,659	$	5,182	$	(3,588)	$	153,566
Revenue contribution from transitioning clients	(13,347)		—		—		—		—		(13,347)
Net realized investment results from certain equity method investments	—		—		(44)		—		—		(44)
Adjusted revenues	$	96,447	$	36,519	$	5,615	$	5,182	$	(3,588)	$	140,175
Depreciation and amortization	$	3,071	$	449	$	87	$	41	$	3	$	3,651
Income (loss) before taxes	$	3,983	$	3,904	$	785	$	562	$	(2,664)	$	6,570
Pre-tax adjustments to reconcile to adjusted income from operations
Adjustment for transitioning clients	(1,726)		—		—		—		—		(1,726)
(Income) attributable to noncontrolling interests	(4)		—		(16)		—		—		(20)
Net realized investment (gains) losses (1)	—		(112)		(43)		(66)		—		(221)
Amortization of acquired intangible assets	2,839		69		36		5		—		2,949
Special items
Integration and transaction-related costs	—		—		—		—		552		552

Charge for organizational efficiency plan	—		—		—		—		207		207
Charges associated with litigation matters	—		(30)		—		—		81		51




Pre-tax adjusted income (loss) from operations	$	5,092	$	3,831	$	762	$	501	$	(1,824)	$	8,362

(1)Includes the Company's share of certain realized investment gains (losses) of its joint ventures reported using the equity method of accounting.


(In millions)	Evernorth		U.S. Medical		International Markets		Group Disability and Other		Corporate and Eliminations		Total
2018
Revenues from external customers	$	5,902	$	31,759	$	5,174	$	4,335	$	—	$	47,170
Inter-segment revenues	1,154		573		—		14		(1,741)
Net investment income (loss)	9		459		149		712		151		1,480
Total revenues	$	7,065	$	32,791	$	5,323	$	5,061	$	(1,590)	$	48,650
Revenue contributions from transitioning clients	(459)		—		—		—		—		(459)
Net realized investment results from certain equity method investments	—		—		43		—		—		43
Special items reported in integration and transaction-related costs	—		—		—		—		(123)		(123)
Adjusted revenues	$	6,606	$	32,791	$	5,366	$	5,061	$	(1,713)	$	48,111
Depreciation and amortization	$	120	$	466	$	55	$	53	$	1	$	695
Income (loss) before taxes	$	329	$	3,342	$	670	$	497	$	(1,257)	$	3,581
Pre-tax adjustments to reconcile to adjusted income from operations
Adjustment for transitioning clients	(62)		—		—		—		—		(62)
(Income) attributable to noncontrolling interests	—		—		(14)		—		—		(14)
Net realized investment (gains) losses (1)	—		36		61		25		2		124
Amortization of acquired intangible assets	113		99		18		5		—		235
Special items
Integration and transaction-related costs	—		—		—		—		852		852


Charges associated with litigation matters	—		25		—		—		—		25



Charges (benefits) associated with tax reform	—		—		—		2		—		2
Pre-tax adjusted income (loss) from operations	$	380	$	3,502	$	735	$	529	$	(403)	$	4,743

(1)Includes the Company's share of certain realized investment gains (losses) of its joint ventures reported using the equity method of accounting.

Revenue from External Customers

Revenue from external customers includes pharmacy revenues, premiums and fees and other revenues. The following table presents these revenues by product, premium and service type for the years ended December 31:



(In millions)	2020		2019		2018
Products (Pharmacy revenues) (ASC 606)
Network revenues	$	53,574	$	50,431	$	1,415
Home delivery and specialty revenues	48,792		47,768		3,997
Other	5,403		4,900		67
Total pharmacy revenues	$	107,769	$	103,099	$	5,479
Insurance premiums (ASC 944)
U.S. Medical premiums
U.S. Commercial
Health Insurance	13,389		12,523		10,710
Stop loss	4,614		4,328		4,008
Other	1,135		1,040		1,038
U.S. Government
Medicare Advantage	7,565		6,314		5,832
Medicare Part D	1,593		1,699		764
Other	4,301		4,185		4,496
Total U.S. Medical premiums	32,597		30,089		26,848
International Markets premiums	5,511		5,266		5,043
Domestic disability, life and accident premiums	4,423		4,225		4,000
Other premiums	96		134		222
Total premiums	42,627		39,714		36,113
Services (ASC 606)
Fees	8,532		9,229		5,558
Other external revenues	229		134		20
Total services	8,761		9,363		5,578
Total revenues from external customers	$	159,157	$	152,176	$	47,170

Foreign and U.S. Revenues from External Customers

Foreign and U.S. revenues from external customers for the three years ended December 31 are shown below. The Company’s foreign revenues are generated by its foreign operating entities. In the periods shown, no foreign country contributed more than 5% of consolidated revenues from external customers.


(In millions)	2020		2019		2018
United States	$	154,042	$	147,332	$	42,773
South Korea	2,123		2,022		2,093
All other foreign countries	2,992		2,822		2,304
Total	$	159,157	$	152,176	$	47,170