Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash

The following is a reconciliation of cash and cash equivalents on the unaudited condensed consolidated balance sheets to total cash, cash equivalents and restricted cash on the unaudited condensed consolidated statements of cash flows:

In millions	June 30, 2020		December 31, 2019
Cash and cash equivalents	$	14,869	$	5,683
Restricted cash (included in other assets)	276		271
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	15,145	$	5,954

Accounts Receivable, Net

Accounts receivable, net is composed of the following:

In millions	June 30, 2020		December 31, 2019
Trade receivables	$	6,848	$	6,717
Vendor and manufacturer receivables	9,791		7,856
Premium receivables	3,080		2,663
Other receivables	2,801		2,381
Total accounts receivable, net	$	22,520	$	19,617

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by major source in each segment for the three and six months ended June 30, 2020 and 2019:

In millions	Pharmacy Services		Retail/ LTC		Health Care Benefits		Corporate/ Other		Intersegment Eliminations			Consolidated Totals
Three Months Ended June 30, 2020
Major goods/services lines:
Pharmacy	$	34,645	$	16,870	$	—	$	—	$	(9,741	)	$	41,774
Front Store	—		4,653		—		—		—			4,653
Premiums	—		—		16,913		14		—			16,927
Net investment income	—		—		127		57		—			184
Other	244		139		1,428		15		(23		)	1,803
Total	$	34,889	$	21,662	$	18,468	$	86	$	(9,764	)	$	65,341
Pharmacy Services distribution channel:
Pharmacy network (1)	$	20,536
Mail choice (2)	14,109
Other	244
Total	$	34,889
Three Months Ended June 30, 2019
Major goods/services lines:
Pharmacy (3)	$	34,698	$	16,392	$	—	$	—	$	(10,416	)	$	40,674
Front Store	—		4,875		—		—		—			4,875
Premiums	—		—		15,777		14		—			15,791
Net investment income	—		—		148		145		—			293
Other (3)	144		180		1,478		2		(6		)	1,798
Total	$	34,842	$	21,447	$	17,403	$	161	$	(10,422	)	$	63,431
Pharmacy Services distribution channel:
Pharmacy network (1) (3)	$	21,974
Mail choice (2) (3)	12,724
Other	144
Total	$	34,842

In millions	Pharmacy Services		Retail/ LTC		Health Care Benefits		Corporate/ Other		Intersegment Eliminations			Consolidated Totals
Six Months Ended June 30, 2020
Major goods/services lines:
Pharmacy	$	69,419	$	34,225	$	—	$	—	$	(19,998	)	$	83,646
Front Store	—		9,861		—		—		—			9,861
Premiums	—		—		34,534		33		—			34,567
Net investment income	—		—		220		126		—			346
Other	453		325		2,912		17		(31		)	3,676
Total	$	69,872	$	44,411	$	37,666	$	176	$	(20,029	)	$	132,096
Pharmacy Services distribution channel:
Pharmacy network (1)	$	41,636
Mail choice (2)	27,783
Other	453
Total	$	69,872
Six Months Ended June 30, 2019
Major goods/services lines:
Pharmacy (3)	$	68,111	$	32,510	$	—	$	—	$	(21,417	)	$	79,204
Front Store	—		9,674		—		—		—			9,674
Premiums	—		—		32,036		37		—			32,073
Net investment income	—		—		312		230		—			542
Other (3)	289		378		2,925		4		(12		)	3,584
Total	$	68,400	$	42,562	$	35,273	$	271	$	(21,429	)	$	125,077
Pharmacy Services distribution channel:
Pharmacy network (1) (3)	$	43,506
Mail choice (2) (3)	24,605
Other	289
Total	$	68,400

^{_____________________________________________} 

(1) Pharmacy Services pharmacy network is defined as claims filled at retail and specialty retail pharmacies, including the Company’s retail pharmacies and LTC pharmacies, but excluding Maintenance Choice^® activity, which is included within the mail choice category. Maintenance Choice permits eligible client plan members to fill their maintenance prescriptions through mail order delivery or at a CVS Pharmacy retail store for the same price as mail order.

(2) Pharmacy Services mail choice is defined as claims filled at a Pharmacy Services mail order facility, which includes specialty mail claims inclusive of Specialty Connect^® claims picked up at a retail pharmacy, as well as prescriptions filled at the Company’s retail pharmacies under the Maintenance Choice program.

(3) Certain prior year amounts have been reclassified for consistency with the current period presentation.

Contracts With Customers, Assets and Liabilities

The following table provides information about receivables and contract liabilities from contracts with customers:

In millions	June 30, 2020		December 31, 2019
Trade receivables (included in accounts receivable, net)	$	6,848	$	6,717
Contract liabilities (included in accrued expenses)	78		73

During the six months ended June 30, 2020 and 2019, the contract liabilities balance includes increases related to customers’ earnings in ExtraBucks Rewards or issuances of Company gift cards and decreases for revenues recognized during the period as a result of the redemption of ExtraBucks Rewards or Company gift cards and breakage of Company gift cards. Below is a summary of such changes:

	Six Months Ended June 30,
In millions	2020			2019
Contract liabilities, beginning of the period	$	73		$	67
Rewards earnings and gift card issuances	179			181
Redemption and breakage	(174		)	(172		)
Contract liabilities, end of the period	$	78		$	76