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Segment Reporting
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment ReportingThe Company has three operating segments, Health Care Benefits, Pharmacy Services and Retail/LTC, 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 consolidated operating income (GAAP measure) to consolidated 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 millionsHealth Care
Benefits
Pharmacy 
Services (1)
Retail/
LTC		Corporate/
Other
Intersegment
Eliminations (2)
Consolidated
Totals
Three Months Ended
June 30, 2022
Revenues from external customers$22,645 $39,859 $17,952 $34 $— $80,490 
Intersegment revenues 23 2,953 8,352 — (11,328)— 
Net investment income (loss)88 — (18)76 — 146 
Total revenues22,756 42,812 26,286 110 (11,328)80,636 
Adjusted operating income (loss)1,831 1,855 1,862 (555)(183)4,810 
June 30, 2021
Revenues from external customers$20,367 $35,745 $16,185 $30 $— $72,327 
Intersegment revenues 21 2,569 8,543 — (11,133)— 
Net investment income137 — — 152 — 289 
Total revenues20,525 38,314 24,728 182 (11,133)72,616 
Adjusted operating income (loss)1,614 1,755 2,049 (369)(162)4,887 
Six Months Ended
June 30, 2022
Revenues from external customers$45,642 $76,055 $35,386 $65 $— $157,148 
Intersegment revenues46 6,218 16,352 — (22,616)— 
Net investment income (loss)177 — (34)171 — 314 
Total revenues45,865 82,273 51,704 236 (22,616)157,462 
Adjusted operating income (loss)3,582 3,491 3,467 (860)(387)9,293 
June 30, 2021
Revenues from external customers$40,682 $69,058 $31,325 $62 $— $141,127 
Intersegment revenues41 5,577 16,631 — (22,249)— 
Net investment income285 — 46 255 — 586 
Total revenues41,008 74,635 48,002 317 (22,249)141,713 
Adjusted operating income (loss)3,396 3,262 3,443 (672)(337)9,092 
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(1)Total revenues of the Pharmacy Services segment include approximately $3.1 billion and $2.8 billion of retail co-payments for the three months ended June 30, 2022 and 2021, respectively, and $6.9 billion and $6.2 billion of retail co-payments for the six months ended June 30, 2022 and 2021, respectively.
(2)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Pharmacy Services segment, and/or the Retail/LTC segment. Intersegment adjusted operating income eliminations occur when members of Pharmacy Services Segment clients (“PSS members”) enrolled in Maintenance Choice® elect to pick up maintenance prescriptions at one of the Company’s retail pharmacies instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail/LTC segments record the adjusted operating income on a stand-alone basis.
The following are reconciliations of consolidated operating income to adjusted operating income for the three and six months ended June 30, 2022 and 2021:
Three Months Ended
June 30,		Six Months Ended
June 30,
In millions2022202120222021
Operating income (GAAP measure)$4,569 $4,326 $8,059 $7,903 
Amortization of intangible assets (1)
466 582 934 1,169 
Gain on divestiture of subsidiary (2)
(225)— (225)— 
Legal settlement (3)
— — 484 — 
Loss on assets held for sale (4)
— — 41 — 
Acquisition-related integration costs (5)
— 40 — 81 
Acquisition purchase price adjustment outside of measurement period (6)
— (61)— (61)
Adjusted operating income$4,810 $4,887 $9,293 $9,092 
_____________________________________________
(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 unaudited 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 six months ended June 30, 2022, the gain on divestiture of subsidiary represents the pre-tax gain on the sale of PayFlex, which the Company sold on June 1, 2022, for approximately $775 million. The gain on divestiture is reflected as a reduction in operating expenses in the Company’s unaudited condensed consolidated statements of operations within the Health Care Benefits segment.
(3)During the six months ended June 30, 2022, the legal settlement relates to the agreement with the State of Florida, entered into in March 2022, to resolve claims dating back more than a decade related to opioid medications. Under this agreement, CVS Health Corporation settled all opioid claims against it and its subsidiaries by the State of Florida for $484 million, inclusive of certain legal fees, to be paid over a period of 18 years. The legal settlement is reflected in the unaudited condensed consolidated statement of operations in operating expenses within the Corporate/Other segment.
(4)During the six months ended June 30, 2022, the loss on assets held for sale relates to the Commercial Business reporting unit within the Health Care Benefits segment. In March 2022, the Company reached an agreement to sell its Thailand business, which was included in the Commercial Business reporting unit. At that time, a portion of the Commercial Business goodwill was specifically allocated to the Thailand business. The net assets of the Thailand business were accounted for as assets held for sale at March 31, 2022. The carrying value of the Thailand business was determined to be greater than its fair value and a loss on assets held for sale was recorded during the first quarter of 2022. The sale closed in the second quarter of 2022, and the ultimate loss on the sale was not material. The loss on assets held for sale is reflected in the unaudited condensed consolidated statement of operations in operating expenses within the Health Care Benefits segment.
(5)During the three and six months ended June 30, 2021, acquisition-related integration costs relate to the acquisition of Aetna. The acquisition-related integration costs are reflected in the unaudited condensed consolidated statements of operations in operating expenses within the Corporate/Other segment.
(6)In June 2021, the Company received $61 million related to a purchase price working capital adjustment for an acquisition completed during the first quarter of 2020. The resolution of this matter occurred subsequent to the acquisition accounting measurement period and is reflected in the Company’s unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2021 as a reduction of operating expenses within the Health Care Benefits segment.