Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of reconciliation of cash and cash equivalents

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, 2024		December 31, 2023
Cash and cash equivalents	$	12,507	$	8,196
Restricted cash (included in other current assets)	54		90
Restricted cash (included in other assets)	259		239
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	12,820	$	8,525

Schedule of accounts receivable, net

Accounts receivable, net at June 30, 2024 and December 31, 2023 was composed of the following:


In millions	June 30, 2024		December 31, 2023
Trade receivables	$	9,793	$	11,908
Vendor and manufacturer receivables	13,528		15,711
Premium receivables	4,430		3,714
Other receivables	4,634		3,894
Total accounts receivable, net	$	32,385	$	35,227

Roll forward of deferred acquisition costs

The following is a roll forward of deferred acquisition costs for the six months ended June 30, 2024 and 2023:


	Six Months Ended June 30,
In millions		2024		2023
Deferred acquisition costs, beginning of the period		$	1,502	$	1,219
Capitalizations		271		274
Amortization expense		(146)		(128)

Deferred acquisition costs, end of the period		$	1,627	$	1,365

Schedule of 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, 2024 and 2023:


In millions	Health Care Benefits		Health Services		Pharmacy & Consumer Wellness		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Three Months Ended June 30, 2024
Major goods/services lines:
Pharmacy	$	—	$	39,499	$	24,013	$	—	$	(12,532)	$	50,980
Front Store	—		—		5,281		—		—		5,281
Premiums	30,654		—		—		13		—		30,667
Net investment income (loss)	300		(2)		—		96		—		394
Other	1,521		2,674		544		2		(829)		3,912
Total	$	32,475	$	42,171	$	29,838	$	111	$	(13,361)	$	91,234

Health Services distribution channel:
Pharmacy network (1)			$	21,848
Mail & specialty (2)			17,651
Other			2,674
Net investment income (loss)			(2)
Total			$	42,171

Three Months Ended June 30, 2023
Major goods/services lines:
Pharmacy	$	—	$	44,706	$	22,614	$	—	$	(12,258)	$	55,062
Front Store	—		—		5,629		—		—		5,629
Premiums	25,095		—		—		13		—		25,108
Net investment income	205		—		1		68		—		274
Other	1,447		1,509		540		2		(650)		2,848
Total	$	26,747	$	46,215	$	28,784	$	83	$	(12,908)	$	88,921

Health Services distribution channel:
Pharmacy network (1)			$	27,477
Mail & specialty (2)			17,229
Other			1,509
Total			$	46,215


In millions	Health Care Benefits		Health Services		Pharmacy & Consumer Wellness		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Six Months Ended June 30, 2024
Major goods/services lines:
Pharmacy	$	—	$	77,225	$	46,797	$	—	$	(24,645)	$	99,377
Front Store	—		—		10,651		—		—		10,651
Premiums	61,033		—		—		25		—		61,058
Net investment income (loss)	653		(2)		—		197		—		848
Other	3,025		5,233		1,115		4		(1,640)		7,737
Total	$	64,711	$	82,456	$	58,563	$	226	$	(26,285)	$	179,671

Health Services distribution channel:
Pharmacy network (1)			$	42,312
Mail & specialty (2)			34,913
Other			5,233
Net investment income (loss)			$	(2)
Total			$	82,456

Six Months Ended June 30, 2023
Major goods/services lines:
Pharmacy	$	—	$	88,443	$	44,394	$	—	$	(24,990)	$	107,847
Front Store	—		—		11,226		—		—		11,226
Premiums	49,434		—		—		26		—		49,460
Net investment income (loss)	369		—		(2)		241		—		608
Other	2,821		2,363		1,088		4		(1,218)		5,058
Total	$	52,624	$	90,806	$	56,706	$	271	$	(26,208)	$	174,199

Health Services distribution channel:
Pharmacy network (1)			$	55,069
Mail & specialty (2)			33,374
Other			2,363
Total			$	90,806

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(1)Health Services pharmacy network is defined as claims filled at retail and specialty retail pharmacies, including the Company’s retail pharmacies and LTC pharmacies, as well as activity associated with Maintenance Choice®, which 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)Health Services mail & specialty is defined as specialty mail claims inclusive of Specialty Connect® claims picked up at a retail pharmacy, as well as mail order and specialty claims fulfilled by the Pharmacy & Consumer Wellness segment.

Schedule of receivables and contract liabilities from contracts with customers

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


In millions	June 30, 2024		December 31, 2023
Trade receivables (included in accounts receivable, net)	$	9,793	$	11,908
Contract liabilities (included in accrued expenses)	128		149