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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 2020 and 2019:


In millions	2021		2020		2019
Cash and cash equivalents	$	9,408	$	7,854	$	5,683
Restricted cash (included in other current assets)	3,065		2,913		2,454
Restricted cash (included in other assets)	218		276		271
Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$	12,691	$	11,043	$	8,408

Schedule of accounts receivable, net

Accounts receivable, net is composed of the following at December 31, 2021 and 2020:


In millions	2021		2020
Trade receivables	$	7,932	$	7,101
Vendor and manufacturer receivables	10,573		9,815
Premium receivables	2,537		2,628
Other receivables	3,389		2,198
Total accounts receivable, net	$	24,431	$	21,742

Schedule of property and equipment

Property and equipment consists of the following at December 31, 2021 and 2020:


In millions	2021		2020
Land	$	2,038	$	2,134
Building and improvements	4,225		3,950
Fixtures and equipment	13,619		13,125
Leasehold improvements	6,242		6,077
Software	7,426		6,020
Total property and equipment	33,550		31,306
Accumulated depreciation and amortization	(20,654)		(18,700)
Property and equipment, net	$	12,896	$	12,606

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, 2021, 2020 and 2019:


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
2021
Major goods/services lines:
Pharmacy	$	—	$	152,262	$	76,121	$	—	$	(43,765)	$	184,618
Front Store	—		—		21,315		—		—		21,315
Premiums	76,064		—		—		68		—		76,132
Net investment income	586		—		17		596		—		1,199
Other	5,536		760		2,652		57		(158)		8,847
Total	$	82,186	$	153,022	$	100,105	$	721	$	(43,923)	$	292,111

Pharmacy Services distribution channel:
Pharmacy network (1)			$	91,715
Mail choice (2)			60,547
Other			760
Total			$	153,022

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	5,683		822		1,367		48		(320)		7,600
Total	$	75,467	$	141,938	$	91,198	$	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	$	—	$	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	5,974		595		744		9		(26)		7,296
Total	$	69,604	$	141,491	$	86,608	$	512	$	(41,439)	$	256,776

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

_____________________________________________

(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 contract with customer assets and liabilities

The following table provides information about receivables and contract liabilities from contracts with customers as of December 31, 2021 and 2020:


In millions	2021		2020
Trade receivables (included in accounts receivable, net)	$	7,932	$	7,101
Contract liabilities (included in accrued expenses)	87		71

During the years ended December 31, 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:


In millions	2021		2020
Contract liabilities, beginning of period	$	71	$	73

Rewards earnings and gift card issuances	387		357
Redemption and breakage	(371)		(359)
Contract liabilities, end of period	$	87	$	71

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, 2021 and 2020 was as follows:


In millions	2021		2020
Hedge fund investments	$	463	$	342
Private equity investments	601		547
Real estate partnerships	225		200
Total	$	1,289	$	1,089

Schedule of discontinued operations

Below is a summary of the results of discontinued operations for the year ended December 31, 2020.


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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