Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 19 – Segment Information

See Note 1 for a description of our segments, including the segment change effective in the fourth quarter of 2021. Prior year segment information has been adjusted to reflect the segment change and a description of our basis of reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy-related transactions between the Evernorth and Cigna Healthcare segments.

The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management believes these metrics best reflect the underlying results of business operations and permit analysis of trends in underlying revenue, expenses and profitability. We define pre-tax adjusted income from operations as income before income taxes excluding pre-tax income/loss attributable to noncontrolling interests, net realized investment results, amortization of acquired intangible assets, and special items. Cigna's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. Adjusted income (loss) from operations is measured on an after-tax basis for consolidated results and on a pre-tax basis for segment results.

The Company defines adjusted revenues as total revenues excluding the following adjustments: special items and Cigna's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business.

The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance.

The following tables present the special items recorded by the Company for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended								Six Months Ended
(In millions)	June 30, 2022				June 30, 2021				June 30, 2022				June 30, 2021
Description of Special Item Charges (Benefits) and Financial Statement Line Item(s)	After-tax		Before-tax		After-tax		Before-tax		After-tax		Before-tax		After-tax		Before-tax
Integration and transaction-related costs  (Selling, general and administrative expenses)	$	26	$	36	$	14	$	16	$	63	$	88	$	36	$	45
Charge for organizational efficiency plan  (Selling, general and administrative expenses)	17		22		—		—		17		22		—		—
Charges (benefits) associated with litigation matters  (Selling, general and administrative expenses)	(20)		(28)		—		—		(20)		(28)		(21)		(27)
Debt extinguishment costs	—		—		9		10		—		—		110		141
Total impact from special items	$	23	$	30	$	23	$	26	$	60	$	82	$	125	$	159

Summarized segment financial information was as follows:

(In millions)	Evernorth		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Three months ended June 30, 2022
Revenues from external customers	$	33,716	$	10,622	$	817	$	—	$	45,155
Intersegment revenues	1,131		586		—		(1,717)
Net investment income	16		178		131		—		325
Total revenues	34,863		11,386		948		(1,717)		45,480
Net realized investment results from certain equity method investments	—		(49)		—		—		(49)
Adjusted revenues	$	34,863	$	11,337	$	948	$	(1,717)	$	45,431
Income (loss) before income taxes	$	1,044	$	1,205	$	167	$	(431)	$	1,985
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(13)		—		(2)		—		(15)
Net realized investment (gains) losses (1)	—		(22)		68		—		46
Amortization of acquired intangible assets	444		57		—		—		501
Special items
Integration and transaction-related costs	—		—		—		36		36
Charge for organizational efficiency plan	—		—		—		22		22
Charges (benefits) associated with litigation matters	—		—		—		(28)		(28)
Pre-tax adjusted income (loss) from operations	$	1,475	$	1,240	$	233	$	(401)	$	2,547
(In millions)	Evernorth		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Three months ended June 30, 2021
Revenues from external customers	$	31,553	$	10,403	$	865	$	—	$	42,821
Intersegment revenues	1,034		590		—		(1,624)
Net investment income	5		180		125		—		310
Total revenues	32,592		11,173		990		(1,624)		43,131
Net realized investment results from certain equity method investments	—		(24)		—		—		(24)
Adjusted revenues	$	32,592	$	11,149	$	990	$	(1,624)	$	43,107
Income (loss) before income taxes	$	929	$	1,111	$	228	$	(370)	$	1,898
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(6)		—		(5)		—		(11)
Net realized investment (gains) losses (1)	2		(74)		(11)		—		(83)
Amortization of acquired intangible assets	488		12		3		—		503
Special items
Integration and transaction-related costs	—		—		—		16		16
Debt extinguishment costs	—		—		—		10		10
Pre-tax adjusted income (loss) from operations	$	1,413	$	1,049	$	215	$	(344)	$	2,333

(1) Includes the Company's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting.

(In millions)	Evernorth		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Six months ended June 30, 2022
Revenues from external customers	$	66,005	$	21,083	$	1,658	$	—	$	88,746
Intersegment revenues	2,418		1,148		—		(3,566)
Net investment income	26		444		269		—		739
Total revenues	68,449		22,675		1,927		(3,566)		89,485
Net realized investment results from certain equity method investments	—		54		—		—		54
Adjusted revenues	$	68,449	$	22,729	$	1,927	$	(3,566)	$	89,539
Income (loss) before income taxes	$	1,914	$	2,064	$	382	$	(826)	$	3,534
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(24)		(1)		(7)		—		(32)
Net realized investment (gains) losses (1)	—		384		84		—		468
Amortization of acquired intangible assets	887		72		—		—		959
Special items
Integration and transaction-related costs	—		—		—		88		88
Charge for organizational efficiency plan	—		—		—		22		22
Charges (benefits) associated with litigation matters	—		—		—		(28)		(28)
Pre-tax adjusted income (loss) from operations	$	2,777	$	2,519	$	459	$	(744)	$	5,011
(In millions)	Evernorth		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Six months ended June 30, 2021
Revenues from external customers	$	60,972	$	20,688	$	1,741	$	—	$	83,401
Intersegment revenues	2,232		1,099		—		(3,331)
Net investment income	8		439		254		—		701
Total revenues	63,212		22,226		1,995		(3,331)		84,102
Net realized investment results from certain equity method investments	—		(10)		—		—		(10)
Adjusted revenues	$	63,212	$	22,216	$	1,995	$	(3,331)	$	84,092
Income (loss) before income taxes	$	1,678	$	2,156	$	434	$	(857)	$	3,411
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(11)		(1)		(11)		—		(23)
Net realized investment (gains) losses (1)	4		(90)		16		—		(70)
Amortization of acquired intangible assets	965		26		7		—		998
Special items
Integration and transaction-related costs	—		—		—		45		45
Charges (benefits) associated with litigation matters	—		—		—		(27)		(27)
Debt extinguishment costs	—		—		—		141		141
Pre-tax adjusted income (loss) from operations	$	2,636	$	2,091	$	446	$	(698)	$	4,475

(1) Includes the Company's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting.

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 three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Products (Pharmacy revenues) (ASC 606)
Network revenues	$	16,107	$	16,166	$	31,638	$	31,304
Home delivery and specialty revenues	15,268		13,341		29,967		26,115
Other revenues	1,667		1,619		3,379		3,007
Intercompany eliminations	(1,070)		(1,079)		(2,315)		(2,354)
Total pharmacy revenues	31,972		30,047		62,669		58,072
Insurance premiums (ASC 944)
Cigna Healthcare
U.S. Commercial
Insured	3,771		3,578		7,491		7,101
Stop loss	1,344		1,194		2,669		2,388
Other	352		308		712		618
U.S. Government
Medicare Advantage	2,053		2,116		4,131		4,208
Medicare Part D	345		410		746		860
Other	1,038		1,227		1,978		2,365
International Health	712		633		1,414		1,274
Total Cigna Healthcare	9,615		9,466		19,141		18,814
International businesses held for sale	737		809		1,500		1,618
Other	74		50		143		108
Intercompany eliminations	—		(2)		(2)		(3)
Total premiums	10,426		10,323		20,782		20,537
Services (Fees) (ASC 606)
Evernorth	1,790		1,456		3,414		2,770
Cigna Healthcare	1,478		1,425		2,974		2,859
Other Operations	4		5		9		10
Other revenues	132		108		147		127
Intercompany eliminations	(647)		(543)		(1,249)		(974)
Total fees and other revenues	2,757		2,451		5,295		4,792
Total revenues from external customers	$	45,155	$	42,821	$	88,746	$	83,401

Evernorth may also provide certain financial and performance guarantees, including a minimum level of discounts a client may receive, generic utilization rates and various service levels. Clients may be entitled to receive compensation if we fail to meet the guarantees. Actual performance is compared to the contractual guarantee for each measure throughout the period and the Company defers revenue for any estimated payouts within Accrued expenses and other liabilities (current). These estimates are adjusted and paid following the end of the annual guarantee period. Historically, adjustments to original estimates have not been material. This guarantee liability was $1.0 billion as of June 30, 2022 and $1.1 billion as of December 31, 2021.