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Segment Reporting
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has three operating segments, Pharmacy Services, Retail/LTC and Health Care Benefits, as well as a Corporate/Other segment. The Company’s segments maintain separate financial information, and the Company’s chief operating decision maker (the “CODM”) evaluates the segments’ operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company’s segments based on adjusted operating income, which is defined as operating income (GAAP measure) excluding the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance. See the reconciliations of operating income (GAAP measure) to adjusted operating income below for further context regarding the items excluded from operating income in determining adjusted operating income. The Company uses adjusted operating income as its principal measure of segment performance as it enhances the Company’s ability to compare past financial performance with current performance and analyze underlying business performance and trends. Non-GAAP financial measures the Company discloses, such as consolidated adjusted operating income, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP.

The following is a reconciliation of financial measures of the Company’s segments to the consolidated totals:
In millions
Pharmacy 
Services (1)
Retail/
LTC		Health Care
Benefits		Corporate/
Other		Intersegment
Eliminations		Consolidated
Totals
Three Months Ended
September 30, 2020
Revenues from external customers$33,492 $14,770 $18,557 $33 $— $66,852 
Intersegment revenues 2,219 7,955 20 — (10,194)— 
Net investment income— — 121 83 — 204 
Total revenues35,711 22,725 18,698 116 (10,194)67,056 
Adjusted operating income (loss)1,619 1,412 1,080 (303)(186)3,622 
September 30, 2019
Revenues from external customers$33,680 $13,805 $17,027 $35 $— $64,547 
Intersegment revenues 2,338 7,661 8 — (10,007)— 
Net investment income— — 146 117 — 263 
Total revenues36,018 21,466 17,181 152 (10,007)64,810 
Adjusted operating income (loss)1,439 1,516 1,423 (252)(179)3,947 
Nine Months Ended
September 30, 2020
Revenues from external customers$98,233 $44,314 $55,972 $83 $— $198,602 
Intersegment revenues7,350 22,822 51 — (30,223)— 
Net investment income— — 341 209 — 550 
Total revenues105,583 67,136 56,364 292 (30,223)199,152 
Adjusted operating income (loss)4,127 4,371 6,035 (931)(539)13,063 
September 30, 2019
Revenues from external customers$95,494 $41,536 $51,976 $76 $— $189,082 
Intersegment revenues8,924 22,492 20 — (31,436)— 
Net investment income— — 458 347 — 805 
Total revenues104,418 64,028 52,454 423 (31,436)189,887 
Adjusted operating income (loss)3,682 4,674 4,423 (685)(521)11,573 
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(1)Total revenues of the Pharmacy Services segment include approximately $2.5 billion and $2.7 billion of retail co-payments for the three months ended September 30, 2020 and 2019, respectively, and $8.5 billion and $8.9 billion of retail co-payments for the nine months ended September 30, 2020 and 2019, respectively.
The following are reconciliations of consolidated operating income to adjusted operating income for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended
September 30,		Nine Months Ended
September 30,
In millions2020201920202019
Operating income (GAAP measure)$3,249 $2,928 $11,387 $8,950 
Amortization of intangible assets (1)
587 607 1,751 1,822 
Acquisition-related integration costs (2)
57 111 196 365 
(Gain) loss on divestiture of subsidiary (3)
(271)205 (271)205 
Store rationalization charges (4)
— 96 — 231 
Adjusted operating income$3,622 $3,947 $13,063 $11,573 
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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 Company’s unaudited GAAP 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)During the three and nine months ended September 30, 2020 and 2019, acquisition-related integration costs relate to the Aetna Acquisition. The acquisition-related integration costs are reflected in the Company’s unaudited GAAP condensed consolidated statements of operations in operating expenses within the Corporate/Other segment.
(3)During the three and nine months ended September 30, 2020, the gain on divestiture of subsidiary represents the pre-tax gain on the sale of the Workers’ Compensation business, which the Company sold on July 31, 2020 for approximately $850 million. The gain on divestiture is reflected as a reduction in operating expenses in the Company’s unaudited GAAP condensed consolidated statements of operations within the Health Care Benefits segment. During the three and nine months ended September 30, 2019, the loss on divestiture of subsidiary represents the pre-tax loss on the sale of Onofre, which occurred on July 1, 2019. The loss on divestiture primarily relates to the elimination of the cumulative translation adjustment from accumulated other comprehensive income and is reflected in operating expenses in the Company’s unaudited GAAP condensed consolidated statements of operations within the Retail/LTC segment.
(4)During the three and nine months ended September 30, 2019, the store rationalization charges relate to the planned closure of 22 underperforming retail pharmacy stores in the first quarter of 2020. During the nine months ended September 30, 2019, the store rationalization charges also relate to the planned closure of 46 underperforming retail pharmacy stores in the second quarter of 2019. The store rationalization charges primarily relate to operating lease right-of-use asset impairment charges and are reflected in the Company’s unaudited GAAP condensed consolidated statements of operations in operating expenses within the Retail/LTC segment.