Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 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	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	9,256	$	5,683
Restricted cash (included in other assets)	276		271
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	9,532	$	5,954

Accounts Receivable, Net

Accounts receivable, net is composed of the following:


In millions	September 30, 2020		December 31, 2019
Trade receivables	$	7,265	$	6,717
Vendor and manufacturer receivables	10,528		7,856
Premium receivables	2,852		2,663
Other receivables	3,171		2,381
Total accounts receivable, net	$	23,816	$	19,617

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by major source in each segment for the three and nine months ended September 30, 2020 and 2019:


In millions	Pharmacy Services		Retail/ LTC		Health Care Benefits		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Three Months Ended September 30, 2020
Major goods/services lines:
Pharmacy	$	35,505	$	17,608	$	—	$	—	$	(10,051)	$	43,062
Front Store	—		4,740		—		—		—		4,740
Premiums	—		—		17,165		17		—		17,182
Net investment income	—		—		121		83		—		204
Other	206		377		1,412		16		(143)		1,868
Total	$	35,711	$	22,725	$	18,698	$	116	$	(10,194)	$	67,056

Pharmacy Services distribution channel:
Pharmacy network (1)	$	21,473
Mail choice (2)	14,032
Other	206
Total	$	35,711

Three Months Ended September 30, 2019
Major goods/services lines:
Pharmacy (3)	$	35,872	$	16,687	$	—	$	—	$	(9,999)	$	42,560
Front Store	—		4,614		—		—		—		4,614
Premiums	—		—		15,507		32		—		15,539
Net investment income	—		—		146		117		—		263
Other (3)	146		165		1,528		3		(8)		1,834
Total	$	36,018	$	21,466	$	17,181	$	152	$	(10,007)	$	64,810

Pharmacy Services distribution channel:
Pharmacy network (1) (3)	$	22,411
Mail choice (2) (3)	13,461
Other	146
Total	$	36,018


In millions	Pharmacy Services		Retail/ LTC		Health Care Benefits		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Nine Months Ended September 30, 2020
Major goods/services lines:
Pharmacy	$	104,924	$	51,833	$	—	$	—	$	(30,032)	$	126,725
Front Store	—		14,601		—		—		—		14,601
Premiums	—		—		51,699		50		—		51,749
Net investment income	—		—		341		209		—		550
Other	659		702		4,324		33		(191)		5,527
Total	$	105,583	$	67,136	$	56,364	$	292	$	(30,223)	$	199,152

Pharmacy Services distribution channel:
Pharmacy network (1)	$	63,109
Mail choice (2)	41,815
Other	659
Total	$	105,583

Nine Months Ended September 30, 2019
Major goods/services lines:
Pharmacy (3)	$	103,983	$	49,197	$	—	$	—	$	(31,416)	$	121,764
Front Store	—		14,288		—		—		—		14,288
Premiums	—		—		47,543		69		—		47,612
Net investment income	—		—		458		347		—		805
Other (3)	435		543		4,453		7		(20)		5,418
Total	$	104,418	$	64,028	$	52,454	$	423	$	(31,436)	$	189,887

Pharmacy Services distribution channel:
Pharmacy network (1) (3)	$	65,917
Mail choice (2) (3)	38,066
Other	435
Total	$	104,418

_____________________________________________

(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	September 30, 2020		December 31, 2019
Trade receivables (included in accounts receivable, net)	$	7,265	$	6,717
Contract liabilities (included in accrued expenses)	75		73

During the nine months ended September 30, 2020 and 2019, the contract liabilities balance includes increases related to customers’ earnings in ExtraBucks Rewards 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:


	Nine Months Ended September 30,
In millions	2020		2019
Contract liabilities, beginning of the period	$	73	$	67
Rewards earnings and gift card issuances	266		269
Redemption and breakage	(264)		(264)
Contract liabilities, end of the period	$	75	$	72