Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020		December 31, 2019
Cash and cash equivalents	$	10,081	$	5,683
Restricted cash (included in other assets)	256		271
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	10,337	$	5,954

Accounts Receivable, Net

Accounts receivable, net is composed of the following:



In millions	March 31, 2020		December 31, 2019
Trade receivables	$	7,698	$	6,717
Vendor and manufacturer receivables	8,585		7,856
Premium receivables	3,916		2,663
Other receivables	2,838		2,381
Total accounts receivable, net	$	23,037	$	19,617

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by major source in each segment for the three months ended March 31, 2020 and 2019:



In millions	Pharmacy Services		Retail/ LTC		Health Care Benefits		Corporate/ Other		Intersegment Eliminations			Consolidated Totals
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	209		186		1,484		2		(8		)	1,873
Total	$	34,983	$	22,749	$	19,198	$	90	$	(10,265	)	$	66,755

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

Three Months Ended March 31, 2019
Major goods/services lines:
Pharmacy ⁽³⁾	$	33,413	$	16,118	$	—	$	—	$	(11,001	)	$	38,530
Front Store	—		4,799		—		—		—			4,799
Premiums	—		—		16,259		23		—			16,282
Net investment income	—		—		164		85		—			249
Other ⁽³⁾	145		198		1,447		2		(6		)	1,786
Total	$	33,558	$	21,115	$	17,870	$	110	$	(11,007	)	$	61,646

Pharmacy Services distribution channel:
Pharmacy network ^{(1) (3)}	$	21,532
Mail choice^{(2) (3)}	11,881
Other	145
Total	$	33,558

^{_____________________________________________}

(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.


(3)	Certain prior year amounts have been reclassified for consistency with the current period presentation.

Contracts With Customers, Assets and Liabilities

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



In millions	March 31, 2020		December 31, 2019
Trade receivables (included in accounts receivable, net)	$	7,698	$	6,717
Contract liabilities (included in accrued expenses)	85		73

During the three months ended March 31, 2020 and 2019, the contract liabilities balance includes increases related to customers’ earnings in ExtraBucksRewards 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	2020			2019
Contract liabilities, beginning of the period	$	73		$	67
Rewards earnings and gift card issuances	99			90
Redemption and breakage	(87		)	(82		)
Contract liabilities, end of the period	$	85		$	75