Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

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	June 30, 2022		December 31, 2021		June 30, 2021
Cash and cash equivalents	$	12,116	$	9,408	$	7,119
Restricted cash (included in other current assets)	131		3,065		2,959
Restricted cash (included in other assets)	216		218		218
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	12,463	$	12,691	$	10,296

Schedule of accounts receivable, net

Accounts receivable, net is composed of the following:


In millions	June 30, 2022		December 31, 2021
Trade receivables	$	9,084	$	7,932
Vendor and manufacturer receivables	12,242		10,573
Premium receivables	3,399		2,537
Other receivables	2,508		3,389
Total accounts receivable, net	$	27,233	$	24,431

Disaggregation of revenue

The following tables disaggregate the Company’s revenue by major source in each segment for the three and six months ended June 30, 2022 and 2021:


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Three Months Ended June 30, 2022
Major goods/services lines:
Pharmacy	$	—	$	42,567	$	20,017	$	—	$	(11,258)	$	51,326
Front Store	—		—		5,736		—		—		5,736
Premiums	21,245		—		—		15		—		21,260
Net investment income (loss)	88		—		(18)		76		—		146
Other	1,423		245		551		19		(70)		2,168
Total	$	22,756	$	42,812	$	26,286	$	110	$	(11,328)	$	80,636

Pharmacy Services distribution channel:
Pharmacy network (1)			$	24,537
Mail choice (2)			18,030
Other			245
Total			$	42,812

Three Months Ended June 30, 2021
Major goods/services lines:
Pharmacy	$	—	$	38,153	$	18,873	$	—	$	(11,094)	$	45,932
Front Store	—		—		5,254		—		—		5,254
Premiums	18,968		—		—		15		—		18,983
Net investment income	137		—		—		152		—		289
Other	1,420		161		601		15		(39)		2,158
Total	$	20,525	$	38,314	$	24,728	$	182	$	(11,133)	$	72,616

Pharmacy Services distribution channel:
Pharmacy network (1)			$	22,918
Mail choice (2)			15,235
Other			161
Total			$	38,314


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Six Months Ended June 30, 2022
Major goods/services lines:
Pharmacy	$	—	$	81,765	$	39,549	$	—	$	(22,498)	$	98,816
Front Store	—		—		11,049		—		—		11,049
Premiums	42,859		—		—		32		—		42,891
Net investment income (loss)	177		—		(34)		171		—		314
Other	2,829		508		1,140		33		(118)		4,392
Total	$	45,865	$	82,273	$	51,704	$	236	$	(22,616)	$	157,462

Pharmacy Services distribution channel:
Pharmacy network (1)			$	47,361
Mail choice (2)			34,404
Other			508
Total			$	82,273

Six Months Ended June 30, 2021
Major goods/services lines:
Pharmacy	$	—	$	74,294	$	36,758	$	—	$	(22,168)	$	88,884
Front Store	—		—		9,896		—		—		9,896
Premiums	37,910		—		—		33		—		37,943
Net investment income	285		—		46		255		—		586
Other	2,813		341		1,302		29		(81)		4,404
Total	$	41,008	$	74,635	$	48,002	$	317	$	(22,249)	$	141,713

Pharmacy Services distribution channel:
Pharmacy network (1)			$	44,811
Mail choice (2)			29,483
Other			341
Total			$	74,635

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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	June 30, 2022		December 31, 2021
Trade receivables (included in accounts receivable, net)	$	9,084	$	7,932
Contract liabilities (included in accrued expenses)	80		87

During the six months ended June 30, 2022 and 2021, 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:


	Six Months Ended June 30,
In millions	2022		2021
Contract liabilities, beginning of the period	$	87	$	71
Rewards earnings and gift card issuances	175		183
Redemption and breakage	(182)		(175)
Contract liabilities, end of the period	$	80	$	79