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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of reconciliation of cash and cash equivalents

The following is a reconciliation of cash and cash equivalents on the consolidated balance sheets to total cash, cash equivalents and restricted cash on the consolidated statements of cash flows as of December 31, 2020, 2019 and 2018:


In millions	2020		2019		2018
Cash and cash equivalents	$	7,854	$	5,683	$	4,059
Restricted cash (included in other current assets)	—		—		6
Restricted cash (included in other assets)	276		271		230
Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$	8,130	$	5,954	$	4,295

Schedule of accounts receivable, net

Accounts receivable, net is composed of the following at December 31, 2020 and 2019:


In millions	2020		2019
Trade receivables	$	7,101	$	6,717
Vendor and manufacturer receivables	9,815		7,856
Premium receivables	2,628		2,663
Other receivables	2,198		2,381
Total accounts receivable, net	$	21,742	$	19,617

Schedule of property and equipment

Property and equipment consists of the following at December 31, 2020 and 2019:


In millions	2020		2019
Land	$	2,134	$	1,981
Building and improvements	3,950		3,541
Fixtures and equipment	13,125		12,401
Leasehold improvements	6,077		5,611
Software	6,020		5,400
Total property and equipment	31,306		28,934
Accumulated depreciation and amortization	(18,700)		(16,890)
Property and equipment, net	$	12,606	$	12,044

Schedule of disaggregation of revenue

The following table disaggregates the Company’s revenue by major source in each segment for the years ended December 31, 2020, 2019 and 2018:


In millions	Pharmacy Services		Retail/ LTC		Health Care Benefits		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
2020
Major goods/services lines:
Pharmacy	$	141,116	$	70,176	$	—	$	—	$	(40,003)	$	171,289
Front Store	—		19,655		—		—		—		19,655
Premiums	—		—		69,301		63		—		69,364
Net investment income	—		—		483		315		—		798
Other	822		1,367		5,683		48		(320)		7,600
Total	$	141,938	$	91,198	$	75,467	$	426	$	(40,323)	$	268,706

Pharmacy Services distribution channel:
Pharmacy network (1)	$	85,045
Mail choice (2)	56,071
Other	822
Total	$	141,938

2019
Major goods/services lines:
Pharmacy (3)	$	140,896	$	66,442	$	—	$	—	$	(41,413)	$	165,925
Front Store	—		19,422		—		—		—		19,422
Premiums	—		—		63,031		91		—		63,122
Net investment income	—		—		599		412		—		1,011
Other (3)	595		744		5,974		9		(26)		7,296
Total	$	141,491	$	86,608	$	69,604	$	512	$	(41,439)	$	256,776

Pharmacy Services distribution channel:
Pharmacy network (1)	$	88,755
Mail choice (2)	52,141
Other	595
Total	$	141,491

2018
Major goods/services lines:
Pharmacy	$	134,216	$	64,179	$	164	$	—	$	(33,714)	$	164,845
Front Store	—		19,055		—		—		—		19,055
Premiums	—		—		8,180		4		—		8,184
Net investment income	—		—		58		602		—		660
Other	520		755		560		—		—		1,835
Total	$	134,736	$	83,989	$	8,962	$	606	$	(33,714)	$	194,579

Pharmacy Services distribution channel:
Pharmacy network (1)	$	87,167
Mail choice (2)	47,049
Other	520
Total	$	134,736

_____________________________________________

(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.

Schedule of contract with customer assets and liabilities

The following table provides information about receivables and contract liabilities from contracts with customers as of December 31, 2020 and 2019:


In millions	2020		2019
Trade receivables (included in accounts receivable, net)	$	7,101	$	6,717
Contract liabilities (included in accrued expenses)	71		73

During the years ended December 31, 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:


In millions	2020		2019
Contract liabilities, beginning of period	$	73	$	67

Rewards earnings and gift card issuances	357		365
Redemption and breakage	(359)		(359)
Contract liabilities, end of period	$	71	$	73

Schedule of variable interest entities

The total amount of other variable interest holder VIE assets included in long-term investments on the consolidated balance sheets at December 31, 2020 and 2019 was as follows:


In millions	2020		2019
Hedge fund investments	$	342	$	271
Private equity investments	547		538
Real estate partnerships	200		212
Total	$	1,089	$	1,021

Schedule of discontinued operations


In millions	2020
Loss from discontinued operations	$	(12)
Income tax benefit	3
Loss from discontinued operations, net of tax	$	(9)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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