Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

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	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	5,598	$	7,854
Restricted cash (included in other assets)	313		276
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	5,911	$	8,130

Accounts Receivable, Net

Accounts receivable, net is composed of the following:


In millions	March 31, 2021		December 31, 2020
Trade receivables	$	7,748	$	7,101
Vendor and manufacturer receivables	10,556		9,815
Premium receivables	3,101		2,628
Other receivables	2,450		2,198
Total accounts receivable, net	$	23,855	$	21,742

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by major source in each segment for the three months ended March 31, 2021 and 2020:


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Three Months Ended March 31, 2021
Major goods/services lines:
Pharmacy	$	—	$	36,141	$	17,885	$	—	$	(11,074)	$	42,952
Front Store	—		—		4,642		—		—		4,642
Premiums	18,942		—		—		18		—		18,960
Net investment income	148		—		46		103		—		297
Other	1,393		180		701		14		(42)		2,246
Total	$	20,483	$	36,321	$	23,274	$	135	$	(11,116)	$	69,097

Pharmacy Services distribution channel:
Pharmacy network (1)			$	21,893
Mail choice (2)			14,248
Other			180
Total			$	36,321

Three Months Ended March 31, 2020
Major goods/services lines:
Pharmacy	$	—	$	34,774	$	17,355	$	—	$	(10,257)	$	41,872
Front Store	—		—		5,208		—		—		5,208
Premiums	17,621		—		—		19		—		17,640
Net investment income	93		—		—		69		—		162
Other	1,484		209		186		2		(8)		1,873
Total	$	19,198	$	34,983	$	22,749	$	90	$	(10,265)	$	66,755

Pharmacy Services distribution channel:
Pharmacy network (1)			$	21,100
Mail choice (2)			13,674
Other			209
Total			$	34,983

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(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.

Contracts With Customers, Assets and Liabilities

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


In millions	March 31, 2021		December 31, 2020
Trade receivables (included in accounts receivable, net)	$	7,748	$	7,101
Contract liabilities (included in accrued expenses)	80		71

During the three months ended March 31, 2021 and 2020, 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:


	Three Months Ended March 31,
In millions	2021		2020
Contract liabilities, beginning of the period	$	71	$	73
Rewards earnings and gift card issuances	93		99
Redemption and breakage	(84)		(87)
Contract liabilities, end of the period	$	80	$	85