Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

Summarized Financial Information Of Segments

The following is a reconciliation of financial measures of the Company’s segments to the consolidated totals:


In millions	Health Care Benefits		Health Services (1)		Pharmacy & Consumer Wellness		Corporate/ Other		Intersegment Eliminations (2)		Consolidated Totals
Three Months Ended
June 30, 2024
Revenues from external customers	$	32,157	$	38,694	$	19,974	$	15	$	—	$	90,840
Intersegment revenues	18		3,479		9,864		—		(13,361)		—
Net investment income (loss)	300		(2)		—		96		—		394
Total revenues	32,475		42,171		29,838		111		(13,361)		91,234
Adjusted operating income (loss)	938		1,915		1,243		(352)		—		3,744

June 30, 2023
Revenues from external customers	$	26,521	$	43,032	$	19,079	$	15	$	—	$	88,647
Intersegment revenues	21		3,183		9,704		—		(12,908)		—
Net investment income	205		—		1		68		—		274
Total revenues	26,747		46,215		28,784		83		(12,908)		88,921
Adjusted operating income (loss)	1,541		1,894		1,413		(367)		—		4,481

Six Months Ended
June 30, 2024
Revenues from external customers	$	64,022	$	75,160	$	39,612	$	29	$	—	$	178,823
Intersegment revenues	36		7,298		18,951		—		(26,285)		—
Net investment income (loss)	653		(2)		—		197		—		848
Total revenues	64,711		82,456		58,563		226		(26,285)		179,671
Adjusted operating income (loss)	1,670		3,278		2,420		(667)		—		6,701

June 30, 2023
Revenues from external customers	$	52,213	$	83,843	$	37,505	$	30	$	—	$	173,591
Intersegment revenues	42		6,963		19,203		—		(26,208)		—
Net investment income (loss)	369		—		(2)		241		—		608
Total revenues	52,624		90,806		56,706		271		(26,208)		174,199
Adjusted operating income (loss)	3,365		3,574		2,547		(635)		—		8,851

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(1)Total revenues of the Health Services segment include approximately $2.8 billion and $3.4 billion of retail co-payments for the three months ended June 30, 2024 and 2023, respectively. Total revenues of the Health Services segment include approximately $6.2 billion and $7.5 billion of retail co-payments for the six months ended June 30, 2024 and 2023, respectively.

(2)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment.

Reconciliation of Consolidated Operating Income to Adjusted Operating Income

The following are reconciliations of consolidated operating income to adjusted operating income for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2024		2023		2024		2023
Operating income (GAAP measure)	$	3,045	$	3,234	$	5,316	$	6,680
Amortization of intangible assets (1)	507		485		1,015		887
Net realized capital losses (2)	90		98		108		203
Acquisition-related transaction and integration costs (3)	102		157		162		200
Opioid litigation charge (4)	—		—		100		—
Restructuring charge (5)	—		496		—		496
Office real estate optimization charges (6)	—		11		—		36
Loss on assets held for sale (7)	—		—		—		349

Adjusted operating income	$	3,744	$	4,481	$	6,701	$	8,851

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(1)The Company’s acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the unaudited condensed consolidated statements of operations in operating expenses within each segment. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.

(2)The Company’s net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in the unaudited condensed consolidated statements of operations in net investment income (loss) within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company’s business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Accordingly, the Company believes excluding net realized capital gains and losses enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends.

(3)During the three and six months ended June 30, 2024, the acquisition-related integration costs relate to the acquisitions of Signify Health and Oak Street Health. During the three and six months ended June 30, 2023, the acquisition-related transaction and integration costs relate to the acquisitions of Signify Health and Oak Street Health. The acquisition-related transaction and integration costs are reflected in the Company’s unaudited condensed consolidated statements of operations in operating expenses within the Corporate/Other segment.

(4)During the six months ended June 30, 2024, the opioid litigation charge relates to a change in the Company’s accrual related to ongoing opioid litigation matters.

(5)During the three and six months ended June 30, 2023, the restructuring charge is primarily comprised of severance and employee-related costs and asset impairment charges. During the second quarter of 2023, the Company developed an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and reduce costs. In connection with the development of this plan and the recently completed acquisitions of Signify Health and Oak Street Health, the Company also conducted a strategic review of its various transformation initiatives and determined that it would terminate certain initiatives. The restructuring charge is reflected within the Corporate/Other segment.

(6)During the three and six months ended June 30, 2023, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the planned reduction of corporate office real estate space in response to the Company’s new flexible work arrangement. The office real estate optimization charges are reflected in the Company’s unaudited condensed consolidated statements of operations in operating expenses within the Health Care Benefits, Health Services and Corporate/Other segments.

(7)During the six months ended June 30, 2023, the loss on assets held for sale relates to the LTC reporting unit within the Pharmacy & Consumer Wellness segment. During 2022, the Company determined that its LTC business was no longer a strategic asset and committed to a plan to sell it, at which time the LTC business met the criteria for held-for-sale accounting and its net assets were accounted for as assets held for sale. During the first quarter of 2023, a loss on assets held for sale was recorded to write down the carrying value of the LTC business to the Company’s best estimate of the ultimate selling price which reflected its estimated fair value less costs to sell. As of the third quarter of 2023, the Company determined the LTC business no longer met the criteria for held-for-sale accounting and accordingly the net assets associated with the LTC business were reclassified to held and used at their respective fair values.