Segment Information

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and 2021:

	Three Months Ended								Nine Months Ended
(In millions)	September 30, 2022				September 30, 2021				September 30, 2022				September 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 (benefits)  (Selling, general and administrative expenses)	$	23	$	24	$	(35)	$	13	$	86	$	112	$	1	$	58
Charge for organizational efficiency plan  (Selling, general and administrative expenses)	—		—		—		—		17		22		—		—
(Benefits) associated with litigation matters  (Selling, general and administrative expenses)	—		—		—		—		(20)		(28)		(21)		(27)
(Gain) on sale of businesses	(1,388)		(1,735)		—		—		(1,388)		(1,735)		—		—
Debt extinguishment costs	—		—		—		—		—		—		110		141
Total impact from special items	$	(1,365)	$	(1,711)	$	(35)	$	13	$	(1,305)	$	(1,629)	$	90	$	172

Summarized segment financial information was as follows:

(In millions)	Evernorth		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Three months ended September 30, 2022
Revenues from external customers	$	34,670	$	10,328	$	78	$	—	$	45,076
Intersegment revenues	1,003		667		—		(1,670)
Net investment income	25		101		75		3		204
Total revenues	35,698		11,096		153		(1,667)		45,280
Net realized investment results from certain equity method investments	—		80		—		—		80
Adjusted revenues	$	35,698	$	11,176	$	153	$	(1,667)	$	45,360
Income (loss) before income taxes	$	1,200	$	879	$	1,752	$	(340)	$	3,491
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(17)		(1)		(4)		—		(22)
Net realized investment losses (1)	—		158		3		—		161
Amortization of acquired intangible assets	442		17		1		—		460
Special items
Integration and transaction-related costs	—		—		—		24		24
(Gain) on sale of businesses	—		—		(1,735)		—		(1,735)
Pre-tax adjusted income (loss) from operations	$	1,625	$	1,053	$	17	$	(316)	$	2,379
(In millions)	Evernorth		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Three months ended September 30, 2021
Revenues from external customers	$	32,668	$	10,283	$	869	$	—	$	43,820
Intersegment revenues	942		584		—		(1,526)
Net investment income	4		333		131		—		468
Total revenues	33,614		11,200		1,000		(1,526)		44,288
Net realized investment results from certain equity method investments	—		22		—		—		22
Adjusted revenues	$	33,614	$	11,222	$	1,000	$	(1,526)	$	44,310
Income (loss) before income taxes	$	1,074	$	1,110	$	196	$	(321)	$	2,059
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(10)		(1)		(5)		—		(16)
Net realized investment (gains) losses (1)	—		(73)		27		—		(46)
Amortization of acquired intangible assets	484		10		7		—		501
Special items
Integration and transaction-related costs	—		—		—		13		13
Pre-tax adjusted income (loss) from operations	$	1,548	$	1,046	$	225	$	(308)	$	2,511

(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
Nine months ended September 30, 2022
Revenues from external customers	$	100,675	$	31,411	$	1,736	$	—	$	133,822
Intersegment revenues	3,421		1,815		—		(5,236)
Net investment income	51		545		344		3		943
Total revenues	104,147		33,771		2,080		(5,233)		134,765
Net realized investment results from certain equity method investments	—		134		—		—		134
Adjusted revenues	$	104,147	$	33,905	$	2,080	$	(5,233)	$	134,899
Income (loss) before income taxes	$	3,114	$	2,943	$	2,134	$	(1,166)	$	7,025
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(41)		(2)		(11)		—		(54)
Net realized investment losses (1)	—		542		87		—		629
Amortization of acquired intangible assets	1,329		89		1		—		1,419
Special items
Integration and transaction-related costs	—		—		—		112		112
Charge for organizational efficiency plan	—		—		—		22		22
(Benefits) associated with litigation matters	—		—		—		(28)		(28)
(Gain) on sale of businesses	—		—		(1,735)		—		(1,735)
Pre-tax adjusted income (loss) from operations	$	4,402	$	3,572	$	476	$	(1,060)	$	7,390
(In millions)	Evernorth		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Nine months ended September 30, 2021
Revenues from external customers	$	93,640	$	30,971	$	2,610	$	—	$	127,221
Intersegment revenues	3,174		1,683		—		(4,857)
Net investment income	12		772		385		—		1,169
Total revenues	96,826		33,426		2,995		(4,857)		128,390
Net realized investment results from certain equity method investments	—		12		—		—		12
Adjusted revenues	$	96,826	$	33,438	$	2,995	$	(4,857)	$	128,402
Income (loss) before income taxes	$	2,752	$	3,266	$	630	$	(1,178)	$	5,470
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(21)		(2)		(16)		—		(39)
Net realized investment losses (gains) (1)	4		(163)		43		—		(116)
Amortization of acquired intangible assets	1,449		36		14		—		1,499
Special items
Integration and transaction-related costs	—		—		—		58		58
(Benefits) associated with litigation matters	—		—		—		(27)		(27)
Debt extinguishment costs	—		—		—		141		141
Pre-tax adjusted income (loss) from operations	$	4,184	$	3,137	$	671	$	(1,006)	$	6,986

(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 nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2022		2021		2022		2021
Products (Pharmacy revenues) (ASC 606)
Network revenues	$	16,583	$	16,488	$	48,221	$	47,792
Home delivery and specialty revenues	15,583		13,796		45,550		39,911
Other revenues	1,630		1,701		5,009		4,708
Intercompany eliminations	(1,034)		(972)		(3,349)		(3,326)
Total pharmacy revenues	32,762		31,013		95,431		89,085
Insurance premiums (ASC 944)
Cigna Healthcare
U.S. Commercial
Insured	3,821		3,591		11,312		10,692
Stop loss	1,384		1,225		4,053		3,613
Other	353		320		1,065		938
U.S. Government
Medicare Advantage	1,949		2,079		6,080		6,287
Medicare Part D	240		315		986		1,175
Other	1,029		1,241		3,007		3,606
International Health	732		646		2,146		1,920
Total Cigna Healthcare	9,508		9,417		28,649		28,231
Divested international businesses	—		800		1,500		2,418
Other	76		61		219		169
Intercompany eliminations	2		(3)		—		(6)
Total premiums	9,586		10,275		30,368		30,812
Services (Fees) (ASC 606)
Evernorth	1,875		1,623		5,289		4,393
Cigna Healthcare	1,530		1,433		4,504		4,292
Other Operations	—		4		9		14
Other revenues	(39)		23		108		150
Intercompany eliminations	(638)		(551)		(1,887)		(1,525)
Total fees and other revenues	2,728		2,532		8,023		7,324
Total revenues from external customers	$	45,076	$	43,820	$	133,822	$	127,221

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 $1.1 billion as of September 30, 2022 and December 31, 2021.