Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Reconciliation of cash and cash equivalents

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, 2021		December 31, 2020
Cash and cash equivalents	$	9,826	$	7,854
Restricted cash (included in other assets)	218		276
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	10,044	$	8,130

Schedule of accounts receivable, net

Accounts receivable, net is composed of the following:


In millions	September 30, 2021		December 31, 2020
Trade receivables	$	8,398	$	7,101
Vendor and manufacturer receivables	11,727		9,815
Premium receivables	2,391		2,628
Other receivables	2,767		2,198
Total accounts receivable, net	$	25,283	$	21,742

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, 2021 and 2020:


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Three Months Ended September 30, 2021
Major goods/services lines:
Pharmacy	$	—	$	38,867	$	19,023	$	—	$	(10,857)	$	47,033
Front Store	—		—		5,359		—		—		5,359
Premiums	18,959		—		—		25		—		18,984
Net investment income (loss)	147		—		(33)		132		—		246
Other	1,373		179		643		14		(37)		2,172
Total	$	20,479	$	39,046	$	24,992	$	171	$	(10,894)	$	73,794

Pharmacy Services distribution channel:
Pharmacy network (1)			$	23,665
Mail choice (2)			15,202
Other			179
Total			$	39,046

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	1,412		206		377		16		(143)		1,868
Total	$	18,698	$	35,711	$	22,725	$	116	$	(10,194)	$	67,056

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


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Nine Months Ended September 30, 2021
Major goods/services lines:
Pharmacy	$	—	$	113,161	$	55,781	$	—	$	(33,025)	$	135,917
Front Store	—		—		15,255		—		—		15,255
Premiums	56,869		—		—		58		—		56,927
Net investment income	432		—		13		387		—		832
Other	4,186		520		1,945		43		(118)		6,576
Total	$	61,487	$	113,681	$	72,994	$	488	$	(33,143)	$	215,507

Pharmacy Services distribution channel:
Pharmacy network (1)			$	68,476
Mail choice (2)			44,685
Other			520
Total			$	113,681

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	4,324		659		702		33		(191)		5,527
Total	$	56,364	$	105,583	$	67,136	$	292	$	(30,223)	$	199,152

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

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(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.

Schedule of receivables and contract liabilities from contracts with customers

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


In millions	September 30, 2021		December 31, 2020
Trade receivables (included in accounts receivable, net)	$	8,398	$	7,101
Contract liabilities (included in accrued expenses)	78		71

During the nine months ended September 30, 2021 and 2020, 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	2021		2020
Contract liabilities, beginning of the period	$	71	$	73
Rewards earnings and gift card issuances	286		266
Redemption and breakage	(279)		(264)
Contract liabilities, end of the period	$	78	$	75