Date of Report (Date of earliest event reported): |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
99.1 | ||||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
CVS HEALTH CORPORATION | |||||||||||
Date: | November 2, 2022 | By: | /s/ Shawn M. Guertin | ||||||||
Shawn M. Guertin | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
CVS HEALTH REPORTS THIRD QUARTER RESULTS | ||||||||
WOONSOCKET, RHODE ISLAND, November 2, 2022 - CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended September 30, 2022. |
THIRD QUARTER RESULTS | KEY FINANCIAL DATA |
YEAR-TO-DATE RESULTS |
Three Months Ended September 30, | |||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | Change | ||||||||||||||
Total revenues | $ | 81,159 | $ | 73,794 | $ | 7,365 | |||||||||||
Operating income (loss) | (3,931) | 3,061 | (6,992) | ||||||||||||||
Adjusted operating income (1) | 4,233 | 4,073 | 160 | ||||||||||||||
Diluted earnings (loss) per share | $ | (2.60) | $ | 1.20 | $ | (3.80) | |||||||||||
Adjusted EPS (2) | $ | 2.09 | $ | 1.97 | $ | 0.12 |
2022 FULL-YEAR GUIDANCE | |||||
•Revised GAAP diluted EPS guidance range to $3.12 to $3.22 from $7.23 to $7.43 •Raised Adjusted EPS guidance range to $8.55 to $8.65 from $8.40 to $8.60 •Raised cash flow from operations guidance range to $13.5 billion to $14.5 billion from $12.5 billion to $13.5 billion |
CEO Commentary | “We delivered another outstanding quarter, and have raised full-year guidance as a result. We continue to execute on our strategy with a focus on expanding capabilities in health care delivery, and the announced acquisition of Signify Health will further strengthen our engagement with consumers.” -Karen S. Lynch, CVS Health President and CEO |
Q3 IN THE SPOTLIGHT |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 81,159 | $ | 73,794 | $ | 7,365 | $ | 238,621 | $ | 215,507 | $ | 23,114 | |||||||||||||||||||||||
Operating income (loss) | (3,931) | 3,061 | (6,992) | 4,128 | 10,964 | (6,836) | |||||||||||||||||||||||||||||
Adjusted operating income (1) | 4,233 | 4,073 | 160 | 13,526 | 13,165 | 361 | |||||||||||||||||||||||||||||
Net income (loss) | (3,409) | 1,587 | (4,996) | 1,865 | 6,602 | (4,737) | |||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (2.60) | $ | 1.20 | $ | (3.80) | $ | 1.40 | $ | 4.98 | $ | (3.58) | |||||||||||||||||||||||
Adjusted EPS (2) | $ | 2.09 | $ | 1.97 | $ | 0.12 | $ | 6.71 | $ | 6.43 | $ | 0.28 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 22,511 | $ | 20,479 | $ | 2,032 | $ | 68,376 | $ | 61,487 | $ | 6,889 | |||||||||||||||||||||||
Adjusted operating income (1) | 1,544 | 1,106 | 438 | 5,126 | 4,502 | 624 | |||||||||||||||||||||||||||||
Medical benefit ratio (“MBR”) (3) | 83.5 | % | 85.8 | % | (2.3) | % | 83.3% | 84.4 | % | (1.1) | % | ||||||||||||||||||||||||
Medical membership (4) | 24.3 | 23.7 | 0.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 43,216 | $ | 39,046 | $ | 4,170 | $ | 125,489 | $ | 113,681 | $ | 11,808 | |||||||||||||||||||||||
Adjusted operating income (1) | 1,877 | 1,773 | 104 | 5,368 | 5,035 | 333 | |||||||||||||||||||||||||||||
Total pharmacy claims processed (5) (6) | 584.9 | 564.4 | 20.5 | 1,736.2 | 1,662.5 | 73.7 | |||||||||||||||||||||||||||||
Pharmacy network (7) | 502.3 | 481.1 | 21.2 | 1,485.7 | 1,415.8 | 69.9 | |||||||||||||||||||||||||||||
Mail choice (8) | 82.6 | 83.3 | (0.7) | 250.5 | 246.7 | 3.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 26,706 | $ | 24,992 | $ | 1,714 | $ | 78,410 | $ | 72,994 | $ | 5,416 | |||||||||||||||||||||||
Adjusted operating income (1) | 1,398 | 1,723 | (325) | 4,865 | 5,166 | (301) | |||||||||||||||||||||||||||||
Prescriptions filled (5) (6) | 405.3 | 398.0 | 7.3 | 1,200.7 | 1,167.8 | 32.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Products | $ | 57,643 | $ | 51,853 | $ | 166,959 | $ | 149,765 | |||||||||||||||
Premiums | 21,003 | 18,984 | 63,894 | 56,927 | |||||||||||||||||||
Services | 2,312 | 2,711 | 7,253 | 7,983 | |||||||||||||||||||
Net investment income | 201 | 246 | 515 | 832 | |||||||||||||||||||
Total revenues | 81,159 | 73,794 | 238,621 | 215,507 | |||||||||||||||||||
Operating costs: | |||||||||||||||||||||||
Cost of products sold | 50,365 | 45,011 | 145,164 | 129,425 | |||||||||||||||||||
Benefit costs | 17,419 | 16,081 | 52,976 | 47,686 | |||||||||||||||||||
Opioid litigation charges | 5,220 | — | 5,704 | — | |||||||||||||||||||
Loss on assets held for sale | 2,480 | — | 2,521 | — | |||||||||||||||||||
Goodwill impairment | — | 431 | — | 431 | |||||||||||||||||||
Operating expenses | 9,606 | 9,210 | 28,128 | 27,001 | |||||||||||||||||||
Total operating costs | 85,090 | 70,733 | 234,493 | 204,543 | |||||||||||||||||||
Operating income (loss) | (3,931) | 3,061 | 4,128 | 10,964 | |||||||||||||||||||
Interest expense | 566 | 602 | 1,735 | 1,895 | |||||||||||||||||||
Loss on early extinguishment of debt | — | 363 | — | 363 | |||||||||||||||||||
Other income | (41) | (49) | (126) | (144) | |||||||||||||||||||
Income (loss) before income tax provision | (4,456) | 2,145 | 2,519 | 8,850 | |||||||||||||||||||
Income tax provision (benefit) | (1,047) | 558 | 654 | 2,248 | |||||||||||||||||||
Net income (loss) | (3,409) | 1,587 | 1,865 | 6,602 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (7) | 11 | (18) | 2 | |||||||||||||||||||
Net income (loss) attributable to CVS Health | $ | (3,416) | $ | 1,598 | $ | 1,847 | $ | 6,604 | |||||||||||||||
Net income (loss) per share attributable to CVS Health: | |||||||||||||||||||||||
Basic | $ | (2.60) | $ | 1.21 | $ | 1.41 | $ | 5.01 | |||||||||||||||
Diluted | $ | (2.60) | $ | 1.20 | $ | 1.40 | $ | 4.98 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 1,315 | 1,321 | 1,313 | 1,318 | |||||||||||||||||||
Diluted | 1,315 | 1,329 | 1,324 | 1,326 | |||||||||||||||||||
Dividends declared per share | $ | 0.55 | $ | 0.50 | $ | 1.65 | $ | 1.50 |
In millions | September 30, 2022 | December 31, 2021 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 17,197 | $ | 9,408 | |||||||
Investments | 2,792 | 3,117 | |||||||||
Accounts receivable, net | 26,317 | 24,431 | |||||||||
Inventories | 18,058 | 17,760 | |||||||||
Assets held for sale | 1,498 | — | |||||||||
Other current assets | 2,479 | 5,292 | |||||||||
Total current assets | 68,341 | 60,008 | |||||||||
Long-term investments | 20,565 | 23,025 | |||||||||
Property and equipment, net | 12,626 | 12,896 | |||||||||
Operating lease right-of-use assets | 18,270 | 19,122 | |||||||||
Goodwill | 78,086 | 79,121 | |||||||||
Intangible assets, net | 25,157 | 29,026 | |||||||||
Separate accounts assets | 3,318 | 5,087 | |||||||||
Other assets | 4,849 | 4,714 | |||||||||
Total assets | $ | 231,212 | $ | 232,999 | |||||||
Liabilities: | |||||||||||
Accounts payable | $ | 13,925 | $ | 12,544 | |||||||
Pharmacy claims and discounts payable | 19,161 | 17,330 | |||||||||
Health care costs payable | 10,351 | 8,808 | |||||||||
Policyholders’ funds | 1,642 | 4,301 | |||||||||
Accrued expenses | 19,423 | 17,670 | |||||||||
Other insurance liabilities | 4,561 | 1,303 | |||||||||
Current portion of operating lease liabilities | 1,687 | 1,646 | |||||||||
Current portion of long-term debt | 1,363 | 4,205 | |||||||||
Liabilities held for sale | 296 | — | |||||||||
Total current liabilities | 72,409 | 67,807 | |||||||||
Long-term operating lease liabilities | 17,174 | 18,177 | |||||||||
Long-term debt | 50,848 | 51,971 | |||||||||
Deferred income taxes | 3,508 | 6,270 | |||||||||
Separate accounts liabilities | 3,318 | 5,087 | |||||||||
Other long-term insurance liabilities | 6,175 | 6,402 | |||||||||
Other long-term liabilities | 6,769 | 1,904 | |||||||||
Total liabilities | 160,201 | 157,618 | |||||||||
Shareholders’ equity: | |||||||||||
Preferred stock | — | — | |||||||||
Common stock and capital surplus | 48,047 | 47,377 | |||||||||
Treasury stock | (30,326) | (28,173) | |||||||||
Retained earnings | 54,571 | 54,906 | |||||||||
Accumulated other comprehensive income (loss) | (1,609) | 965 | |||||||||
Total CVS Health shareholders’ equity | 70,683 | 75,075 | |||||||||
Noncontrolling interests | 328 | 306 | |||||||||
Total shareholders’ equity | 71,011 | 75,381 | |||||||||
Total liabilities and shareholders’ equity | $ | 231,212 | $ | 232,999 |
Nine Months Ended September 30, | |||||||||||
In millions | 2022 | 2021 | |||||||||
Cash flows from operating activities: | |||||||||||
Cash receipts from customers | $ | 235,395 | $ | 209,104 | |||||||
Cash paid for inventory and prescriptions dispensed by retail network pharmacies | (138,785) | (122,129) | |||||||||
Insurance benefits paid | (51,434) | (46,965) | |||||||||
Cash paid to other suppliers and employees | (22,368) | (21,840) | |||||||||
Interest and investment income received | 327 | 582 | |||||||||
Interest paid | (1,936) | (2,095) | |||||||||
Income taxes paid | (3,070) | (2,397) | |||||||||
Net cash provided by operating activities | 18,129 | 14,260 | |||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales and maturities of investments | 5,535 | 5,559 | |||||||||
Purchases of investments | (6,439) | (7,417) | |||||||||
Purchases of property and equipment | (2,039) | (1,923) | |||||||||
Acquisitions (net of cash acquired) | (131) | (135) | |||||||||
Proceeds from sale of subsidiaries (net of cash and restricted cash sold of $2,808 and $0) | (1,928) | — | |||||||||
Other | 74 | 95 | |||||||||
Net cash used in investing activities | (4,928) | (3,821) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | — | 987 | |||||||||
Repayments of long-term debt | (4,195) | (7,823) | |||||||||
Repurchase of common stock | (2,000) | — | |||||||||
Dividends paid | (2,188) | (1,965) | |||||||||
Proceeds from exercise of stock options | 510 | 440 | |||||||||
Payments for taxes related to net share settlement of equity awards | (337) | (161) | |||||||||
Other | (119) | 80 | |||||||||
Net cash used in financing activities | (8,329) | (8,442) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 4,872 | 1,997 | |||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | 12,691 | 11,043 | |||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 17,563 | $ | 13,040 |
Nine Months Ended September 30, | |||||||||||
In millions | 2022 | 2021 | |||||||||
Reconciliation of net income to net cash provided by operating activities: | |||||||||||
Net income | $ | 1,865 | $ | 6,602 | |||||||
Adjustments required to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 3,198 | 3,397 | |||||||||
Loss on assets held for sale | 2,521 | — | |||||||||
Goodwill impairment | — | 431 | |||||||||
Stock-based compensation | 341 | 346 | |||||||||
Gain on sale of subsidiary | (225) | — | |||||||||
Loss on early extinguishment of debt | — | 363 | |||||||||
Deferred income taxes and other noncash items | (2,250) | (645) | |||||||||
Change in operating assets and liabilities, net of effects from acquisitions: | |||||||||||
Accounts receivable, net | (2,009) | (3,504) | |||||||||
Inventories | (415) | 1,097 | |||||||||
Other assets | (311) | (88) | |||||||||
Accounts payable and pharmacy claims and discounts payable | 3,350 | 3,973 | |||||||||
Health care costs payable and other insurance liabilities | 4,687 | 348 | |||||||||
Other liabilities | 7,377 | 1,940 | |||||||||
Net cash provided by operating activities | $ | 18,129 | $ | 14,260 |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 1,244 | $ | 1,836 | $ | (1,205) | $ | (5,637) | $ | (169) | $ | (3,931) | |||||||||||||||||||||||
Amortization of intangible assets | 300 | 41 | 123 | — | — | 464 | |||||||||||||||||||||||||||||
Opioid litigation charges | — | — | — | 5,220 | — | 5,220 | |||||||||||||||||||||||||||||
Loss on assets held for sale | — | — | 2,480 | — | — | 2,480 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 1,544 | $ | 1,877 | $ | 1,398 | $ | (417) | $ | (169) | $ | 4,233 |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 716 | $ | 1,730 | $ | 1,165 | $ | (364) | $ | (186) | $ | 3,061 | |||||||||||||||||||||||
Amortization of intangible assets | 390 | 43 | 127 | 1 | — | 561 | |||||||||||||||||||||||||||||
Acquisition-related integration costs | — | — | — | 20 | — | 20 | |||||||||||||||||||||||||||||
Goodwill impairment | — | — | 431 | — | — | 431 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 1,106 | $ | 1,773 | $ | 1,723 | $ | (343) | $ | (186) | $ | 4,073 |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 4,407 | $ | 5,242 | $ | 2,018 | $ | (6,983) | $ | (556) | $ | 4,128 | |||||||||||||||||||||||
Amortization of intangible assets | 903 | 126 | 367 | 2 | — | 1,398 | |||||||||||||||||||||||||||||
Opioid litigation charges | — | — | — | 5,704 | — | 5,704 | |||||||||||||||||||||||||||||
Loss on assets held for sale | 41 | — | 2,480 | — | — | 2,521 | |||||||||||||||||||||||||||||
Gain on divestiture of subsidiary | (225) | — | — | — | — | (225) | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 5,126 | $ | 5,368 | $ | 4,865 | $ | (1,277) | $ | (556) | $ | 13,526 |
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 3,369 | $ | 4,887 | $ | 4,349 | $ | (1,118) | $ | (523) | $ | 10,964 | |||||||||||||||||||||||
Amortization of intangible assets | 1,194 | 148 | 386 | 2 | — | 1,730 | |||||||||||||||||||||||||||||
Acquisition-related integration costs | — | — | — | 101 | — | 101 | |||||||||||||||||||||||||||||
Goodwill impairment | — | — | 431 | — | — | 431 | |||||||||||||||||||||||||||||
Acquisition purchase price adjustment outside of measurement period | (61) | — | — | — | — | (61) | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 4,502 | $ | 5,035 | $ | 5,166 | $ | (1,015) | $ | (523) | $ | 13,165 |
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | ||||||||||||||||||||||
In millions, except per share amounts | Total Company | Per Common Share | Total Company | Per Common Share | |||||||||||||||||||
Net income (loss) attributable to CVS Health (GAAP measure) | $ | (3,416) | $ | (2.60) | $ | 1,598 | $ | 1.20 | |||||||||||||||
Amortization of intangible assets | 464 | 0.36 | 561 | 0.42 | |||||||||||||||||||
Opioid litigation charges | 5,220 | 3.95 | — | — | |||||||||||||||||||
Loss on assets held for sale | 2,480 | 1.88 | — | — | |||||||||||||||||||
Acquisition-related integration costs | — | — | 20 | 0.02 | |||||||||||||||||||
Goodwill impairment | — | — | 431 | 0.33 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | 363 | 0.27 | |||||||||||||||||||
Tax impact of non-GAAP adjustments | (1,985) | (1.50) | (350) | (0.27) | |||||||||||||||||||
Adjusted income attributable to CVS Health (2) | $ | 2,763 | $ | 2.09 | $ | 2,623 | $ | 1.97 | |||||||||||||||
Weighted average diluted shares outstanding (GAAP) (2) | 1,315 | 1,329 | |||||||||||||||||||||
Adjusted weighted average diluted shares outstanding (non-GAAP) (2) | 1,323 | 1,329 |
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||
In millions, except per share amounts | Total Company | Per Common Share | Total Company | Per Common Share | |||||||||||||||||||
Net income attributable to CVS Health (GAAP measure) | $ | 1,847 | $ | 1.40 | $ | 6,604 | $ | 4.98 | |||||||||||||||
Amortization of intangible assets | 1,398 | 1.06 | 1,730 | 1.30 | |||||||||||||||||||
Opioid litigation charges | 5,704 | 4.31 | — | — | |||||||||||||||||||
Loss on assets held for sale | 2,521 | 1.90 | — | — | |||||||||||||||||||
Gain on divestiture of subsidiary | (225) | (0.17) | — | — | |||||||||||||||||||
Acquisition-related integration costs | — | — | 101 | 0.08 | |||||||||||||||||||
Goodwill impairment | — | — | 431 | 0.33 | |||||||||||||||||||
Acquisition purchase price adjustment outside of measurement period | — | — | (61) | (0.05) | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | 363 | 0.27 | |||||||||||||||||||
Tax impact of non-GAAP adjustments | (2,365) | (1.79) | (642) | (0.48) | |||||||||||||||||||
Adjusted income attributable to CVS Health (2) | $ | 8,880 | $ | 6.71 | $ | 8,526 | $ | 6.43 | |||||||||||||||
Weighted average diluted shares outstanding (GAAP) (2) | 1,324 | 1,326 | |||||||||||||||||||||
Adjusted weighted average diluted shares outstanding (non-GAAP) (2) | 1,324 | 1,326 |
In millions | Health Care Benefits | Pharmacy Services (a) | Retail/ LTC | Corporate/ Other | Intersegment Eliminations (b) | Consolidated Totals | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 22,511 | $ | 43,216 | $ | 26,706 | $ | 142 | $ | (11,416) | $ | 81,159 | |||||||||||||||||||||||
Adjusted operating income (loss) (1) | 1,544 | 1,877 | 1,398 | (417) | (169) | 4,233 | |||||||||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||||||||
Total revenues | 20,479 | 39,046 | 24,992 | 171 | (10,894) | 73,794 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | 1,106 | 1,773 | 1,723 | (343) | (186) | 4,073 | |||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 68,376 | $ | 125,489 | $ | 78,410 | $ | 378 | $ | (34,032) | $ | 238,621 | |||||||||||||||||||||||
Adjusted operating income (loss) (1) | 5,126 | 5,368 | 4,865 | (1,277) | (556) | 13,526 | |||||||||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||||||||
Total revenues | 61,487 | 113,681 | 72,994 | 488 | (33,143) | 215,507 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | 4,502 | 5,035 | 5,166 | (1,015) | (523) | 13,165 |
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, 2022 vs 2021 | Nine Months Ended September 30, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages and basis points (“bps”) | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 20,989 | $ | 18,959 | $ | 63,848 | $ | 56,869 | $ | 2,030 | 10.7 | % | $ | 6,979 | 12.3 | % | |||||||||||||||||||||||||||||||
Services | 1,421 | 1,373 | 4,250 | 4,186 | 48 | 3.5 | % | 64 | 1.5 | % | |||||||||||||||||||||||||||||||||||||
Net investment income | 101 | 147 | 278 | 432 | (46) | (31.3) | % | (154) | (35.6) | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 22,511 | 20,479 | 68,376 | 61,487 | 2,032 | 9.9 | % | 6,889 | 11.2 | % | |||||||||||||||||||||||||||||||||||||
Benefit costs | 17,531 | 16,260 | 53,191 | 47,971 | 1,271 | 7.8 | % | 5,220 | 10.9 | % | |||||||||||||||||||||||||||||||||||||
MBR (Benefit costs as a % of premium revenues) (3) | 83.5 | % | 85.8 | % | 83.3 | % | 84.4 | % | (230) | bps | (110) | bps | |||||||||||||||||||||||||||||||||||
Loss on assets held for sale | $ | — | $ | — | $ | 41 | $ | — | $ | — | — | % | $ | 41 | 100.0 | % | |||||||||||||||||||||||||||||||
Operating expenses | 3,736 | 3,503 | 10,737 | 10,147 | 233 | 6.7 | % | 590 | 5.8 | % | |||||||||||||||||||||||||||||||||||||
Operating expenses as a % of total revenues | 16.6 | % | 17.1 | % | 15.7 | % | 16.5 | % | |||||||||||||||||||||||||||||||||||||||
Operating income | $ | 1,244 | $ | 716 | $ | 4,407 | $ | 3,369 | $ | 528 | 73.7 | % | $ | 1,038 | 30.8 | % | |||||||||||||||||||||||||||||||
Operating income as a % of total revenues | 5.5 | % | 3.5 | % | 6.4 | % | 5.5 | % | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (1) | $ | 1,544 | $ | 1,106 | $ | 5,126 | $ | 4,502 | $ | 438 | 39.6 | % | $ | 624 | 13.9 | % | |||||||||||||||||||||||||||||||
Adjusted operating income as a % of total revenues | 6.9 | % | 5.4 | % | 7.5 | % | 7.3 | % | |||||||||||||||||||||||||||||||||||||||
Premium revenues (by business): | |||||||||||||||||||||||||||||||||||||||||||||||
Government | $ | 15,433 | $ | 13,903 | $ | 47,379 | $ | 41,717 | $ | 1,530 | 11.0 | % | $ | 5,662 | 13.6 | % | |||||||||||||||||||||||||||||||
Commercial | 5,556 | 5,056 | 16,469 | 15,152 | 500 | 9.9 | % | 1,317 | 8.7 | % |
September 30, 2022 | June 30, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands | Insured | ASC | Total | Insured | ASC | Total | Insured | ASC | Total | Insured | ASC | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Medical membership: (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 3,159 | 13,852 | 17,011 | 3,158 | 13,835 | 16,993 | 3,258 | 13,530 | 16,788 | 3,224 | 13,529 | 16,753 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Medicare Advantage | 3,260 | — | 3,260 | 3,216 | — | 3,216 | 2,971 | — | 2,971 | 2,953 | — | 2,953 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Medicare Supplement | 1,345 | — | 1,345 | 1,314 | — | 1,314 | 1,285 | — | 1,285 | 1,242 | — | 1,242 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Medicaid | 2,181 | 490 | 2,671 | 2,425 | 484 | 2,909 | 2,333 | 471 | 2,804 | 2,289 | 460 | 2,749 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total medical membership | 9,945 | 14,342 | 24,287 | 10,113 | 14,319 | 24,432 | 9,847 | 14,001 | 23,848 | 9,708 | 13,989 | 23,697 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental membership information: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Medicare Prescription Drug Plan (stand-alone) | 6,090 | 6,051 | 5,777 | 5,740 |
Nine Months Ended September 30, | |||||||||||
In millions | 2022 | 2021 | |||||||||
Health care costs payable, beginning of period | $ | 8,808 | $ | 7,936 | |||||||
Less: Reinsurance recoverables | 8 | 10 | |||||||||
Health care costs payable, beginning of period, net | 8,800 | 7,926 | |||||||||
Add: Components of incurred health care costs | |||||||||||
Current year | 53,311 | 48,243 | |||||||||
Prior years (a) | (670) | (771) | |||||||||
Total incurred health care costs (b) | 52,641 | 47,472 | |||||||||
Less: Claims paid | |||||||||||
Current year | 43,632 | 39,887 | |||||||||
Prior years | 7,468 | 6,639 | |||||||||
Total claims paid | 51,100 | 46,526 | |||||||||
Add: Premium deficiency reserve | 5 | 1 | |||||||||
Health care costs payable, end of period, net | 10,346 | 8,873 | |||||||||
Add: Reinsurance recoverables | 5 | 4 | |||||||||
Health care costs payable, end of period | $ | 10,351 | $ | 8,877 |
September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||
Days Claims Payable (9) | 54.9 | 54.3 | 51.7 | 49.1 | 51.1 |
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, 2022 vs 2021 | Nine Months Ended September 30, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Products | $ | 42,905 | $ | 38,739 | $ | 124,623 | $ | 112,816 | $ | 4,166 | 10.8 | % | $ | 11,807 | 10.5 | % | |||||||||||||||||||||||||||||||
Services | 311 | 307 | 866 | 865 | 4 | 1.3 | % | 1 | 0.1 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 43,216 | 39,046 | 125,489 | 113,681 | 4,170 | 10.7 | % | 11,808 | 10.4 | % | |||||||||||||||||||||||||||||||||||||
Cost of products sold | 40,998 | 36,925 | 119,028 | 107,714 | 4,073 | 11.0 | % | 11,314 | 10.5 | % | |||||||||||||||||||||||||||||||||||||
Gross profit (10) | 2,218 | 2,121 | 6,461 | 5,967 | 97 | 4.6 | % | 494 | 8.3 | % | |||||||||||||||||||||||||||||||||||||
Gross margin (Gross profit as a % of total revenues) (10) | 5.1 | % | 5.4 | % | 5.1 | % | 5.2 | % | |||||||||||||||||||||||||||||||||||||||
Operating expenses | $ | 382 | $ | 391 | $ | 1,219 | $ | 1,080 | $ | (9) | (2.3) | % | $ | 139 | 12.9 | % | |||||||||||||||||||||||||||||||
Operating expenses as a % of total revenues | 0.9 | % | 1.0 | % | 1.0 | % | 1.0 | % | |||||||||||||||||||||||||||||||||||||||
Operating income | $ | 1,836 | $ | 1,730 | $ | 5,242 | $ | 4,887 | $ | 106 | 6.1 | % | $ | 355 | 7.3 | % | |||||||||||||||||||||||||||||||
Operating income as a % of total revenues | 4.2 | % | 4.4 | % | 4.2 | % | 4.3 | % | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (1) | $ | 1,877 | $ | 1,773 | $ | 5,368 | $ | 5,035 | $ | 104 | 5.9 | % | $ | 333 | 6.6 | % | |||||||||||||||||||||||||||||||
Adjusted operating income as a % of total revenues | 4.3 | % | 4.5 | % | 4.3 | % | 4.4 | % | |||||||||||||||||||||||||||||||||||||||
Revenues (by distribution channel): | |||||||||||||||||||||||||||||||||||||||||||||||
Pharmacy network (7) | $ | 25,012 | $ | 23,665 | $ | 72,373 | $ | 68,476 | $ | 1,347 | 5.7 | % | $ | 3,897 | 5.7 | % | |||||||||||||||||||||||||||||||
Mail choice (8) | 17,935 | 15,202 | 52,339 | 44,685 | 2,733 | 18.0 | % | 7,654 | 17.1 | % | |||||||||||||||||||||||||||||||||||||
Other | 269 | 179 | 777 | 520 | 90 | 50.3 | % | 257 | 49.4 | % | |||||||||||||||||||||||||||||||||||||
Pharmacy claims processed: (5) (6) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (a) | 584.9 | 564.4 | 1,736.2 | 1,662.5 | 20.5 | 3.6 | % | 73.7 | 4.4 | % | |||||||||||||||||||||||||||||||||||||
Pharmacy network (7) | 502.3 | 481.1 | 1,485.7 | 1,415.8 | 21.2 | 4.4 | % | 69.9 | 4.9 | % | |||||||||||||||||||||||||||||||||||||
Mail choice (8) | 82.6 | 83.3 | 250.5 | 246.7 | (0.7) | (0.8) | % | 3.8 | 1.5 | % | |||||||||||||||||||||||||||||||||||||
Generic dispensing rate: (6) (11) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (b) | 87.5 | % | 87.1 | % | 87.7 | % | 87.3 | % | |||||||||||||||||||||||||||||||||||||||
Pharmacy network (7) | 87.8 | % | 87.4 | % | 88.1 | % | 87.6 | % | |||||||||||||||||||||||||||||||||||||||
Mail choice (8) | 85.4 | % | 85.5 | % | 85.5 | % | 85.6 | % |
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, 2022 vs 2021 | Nine Months Ended September 30, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Products | $ | 26,115 | $ | 23,971 | $ | 76,248 | $ | 69,974 | $ | 2,144 | 8.9 | % | $ | 6,274 | 9.0 | % | |||||||||||||||||||||||||||||||
Services | 601 | 1,054 | 2,206 | 3,007 | (453) | (43.0) | % | (801) | (26.6) | % | |||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (10) | (33) | (44) | 13 | 23 | 69.7 | % | (57) | (438.5) | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 26,706 | 24,992 | 78,410 | 72,994 | 1,714 | 6.9 | % | 5,416 | 7.4 | % | |||||||||||||||||||||||||||||||||||||
Cost of products sold | 20,272 | 18,381 | 58,591 | 53,375 | 1,891 | 10.3 | % | 5,216 | 9.8 | % | |||||||||||||||||||||||||||||||||||||
Gross profit (10) | 6,434 | 6,611 | 19,819 | 19,619 | (177) | (2.7) | % | 200 | 1.0 | % | |||||||||||||||||||||||||||||||||||||
Gross margin (Gross profit as a % of total revenues) (10) | 24.1 | % | 26.5 | % | 25.3 | % | 26.9 | % | |||||||||||||||||||||||||||||||||||||||
Loss on assets held for sale | $ | 2,480 | $ | — | $ | 2,480 | $ | — | $ | 2,480 | 100.0 | % | $ | 2,480 | 100.0 | % | |||||||||||||||||||||||||||||||
Goodwill impairment | — | 431 | — | 431 | (431) | (100.0) | % | (431) | (100.0) | % | |||||||||||||||||||||||||||||||||||||
Operating expenses | 5,159 | 5,015 | 15,321 | 14,839 | 144 | 2.9 | % | 482 | 3.2 | % | |||||||||||||||||||||||||||||||||||||
Operating expenses as a % of total revenues | 19.3 | % | 20.1 | % | 19.5 | % | 20.3 | % | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (1,205) | $ | 1,165 | $ | 2,018 | $ | 4,349 | $ | (2,370) | (203.4) | % | $ | (2,331) | (53.6) | % | |||||||||||||||||||||||||||||||
Operating income (loss) as a % of total revenues | (4.5) | % | 4.7 | % | 2.6 | % | 6.0 | % | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (1) | $ | 1,398 | $ | 1,723 | $ | 4,865 | $ | 5,166 | $ | (325) | (18.9) | % | $ | (301) | (5.8) | % | |||||||||||||||||||||||||||||||
Adjusted operating income as a % of total revenues | 5.2 | % | 6.9 | % | 6.2 | % | 7.1 | % | |||||||||||||||||||||||||||||||||||||||
Revenues (by major goods/service lines): | |||||||||||||||||||||||||||||||||||||||||||||||
Pharmacy | $ | 20,759 | $ | 19,023 | $ | 60,308 | $ | 55,781 | $ | 1,736 | 9.1 | % | $ | 4,527 | 8.1 | % | |||||||||||||||||||||||||||||||
Front Store | 5,581 | 5,359 | 16,630 | 15,255 | 222 | 4.1 | % | 1,375 | 9.0 | % | |||||||||||||||||||||||||||||||||||||
Other | 376 | 643 | 1,516 | 1,945 | (267) | (41.5) | % | (429) | (22.1) | % | |||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (10) | (33) | (44) | 13 | 23 | 69.7 | % | (57) | (438.5) | % | |||||||||||||||||||||||||||||||||||||
Prescriptions filled (5) (6) (a) | 405.3 | 398.0 | 1,200.7 | 1,167.8 | 7.3 | 1.8 | % | 32.9 | 2.8 | % | |||||||||||||||||||||||||||||||||||||
Same store sales increase: (12) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 9.9 | % | 9.6 | % | 9.5 | % | 7.3 | % | |||||||||||||||||||||||||||||||||||||||
Pharmacy | 11.3 | % | 8.8 | % | 9.7 | % | 8.4 | % | |||||||||||||||||||||||||||||||||||||||
Front Store | 5.1 | % | 12.3 | % | 9.0 | % | 3.7 | % | |||||||||||||||||||||||||||||||||||||||
Prescription volume (6) | 3.8 | % | 9.0 | % | 4.3 | % | 8.1 | % | |||||||||||||||||||||||||||||||||||||||
Generic dispensing rate (6) (11) (b) | 88.0 | % | 86.6 | % | 88.0 | % | 86.6 | % |
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, 2022 vs 2021 | Nine Months Ended September 30, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 14 | $ | 25 | $ | 46 | $ | 58 | $ | (11) | (44.0) | % | $ | (12) | (20.7) | % | |||||||||||||||||||||||||||||||
Services | 18 | 14 | 51 | 43 | 4 | 28.6 | % | 8 | 18.6 | % | |||||||||||||||||||||||||||||||||||||
Net investment income | 110 | 132 | 281 | 387 | (22) | (16.7) | % | (106) | (27.4) | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 142 | 171 | 378 | 488 | (29) | (17.0) | % | (110) | (22.5) | % | |||||||||||||||||||||||||||||||||||||
Cost of products sold | 11 | 11 | 31 | 27 | — | — | % | 4 | 14.8 | % | |||||||||||||||||||||||||||||||||||||
Benefit costs | 53 | 69 | 274 | 168 | (16) | (23.2) | % | 106 | 63.1 | % | |||||||||||||||||||||||||||||||||||||
Opioid litigation charges | 5,220 | — | 5,704 | — | 5,220 | 100.0 | % | 5,704 | 100.0 | % | |||||||||||||||||||||||||||||||||||||
Operating expenses | 495 | 455 | 1,352 | 1,411 | 40 | 8.8 | % | (59) | (4.2) | % | |||||||||||||||||||||||||||||||||||||
Operating loss | (5,637) | (364) | (6,983) | (1,118) | (5,273) | (1,448.6) | % | (5,865) | (524.6) | % | |||||||||||||||||||||||||||||||||||||
Adjusted operating loss (1) | (417) | (343) | (1,277) | (1,015) | (74) | (21.6) | % | (262) | (25.8) | % |
Year Ending December 31, 2022 | |||||||||||||||||||||||
Low | High | ||||||||||||||||||||||
In millions, except per share amounts | Total Company | Per Common Share | Total Company | Per Common Share | |||||||||||||||||||
Net income attributable to CVS Health (GAAP measure) | $ | 4,142 | $ | 3.12 | $ | 4,277 | $ | 3.22 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Amortization of intangible assets | 1,860 | 1.40 | 1,860 | 1.40 | |||||||||||||||||||
Opioid litigation charges | 5,704 | 4.30 | 5,704 | 4.30 | |||||||||||||||||||
Loss on assets held for sale | 2,521 | 1.90 | 2,521 | 1.90 | |||||||||||||||||||
Gain on divestiture of subsidiary | (225) | (0.17) | (225) | (0.17) | |||||||||||||||||||
Tax impact of non-GAAP adjustments | (2,652) | (2.00) | (2,652) | (2.00) | |||||||||||||||||||
Adjusted income attributable to CVS Health (2) | $ | 11,350 | $ | 8.55 | $ | 11,485 | $ | 8.65 | |||||||||||||||
Weighted average diluted shares outstanding | 1,327 | 1,327 |
D!
M\@'Z @,"# (4 AT")@(O C@"00)+ E0"70)G G$">@*$ HX"F *B JP"M@+!
M LL"U0+@ NL"]0, PL#%@,A RT#. -# T\#6@-F W(#?@.* Y8#H@.N [H#
MQP/3 ^ #[ /Y! 8$$P0@!"T$.P1(!%4$8P1Q!'X$C 2:!*@$M@3$!-,$X03P
M!/X%#044%]@8&!A8&)P8W!D@&
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M',P<]1T>'4<=:AZ4'KX>Z1\3'SX?:1^4'[\?ZB 5($$@
M;""8(,0@\"$<(4@A=2&A( &YXS'DJ>8EYYWI&
M>J5[!'MC>\)\(7R!?.%]07VA?@%^8G["?R-_A'_E@$> J($*@6N!S8(P@I*"
M](-7@[J$'82 A..%1X6KA@Z& X&X?\!Y_EQ7EG6N6LK2/?RJ
MIS4;=4_^"%%%%9GH!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %
M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44
M44 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !111
M0 4444 %%%% "J=M:-IXCN+3[DC8]&^8?^/9Q^%9O6DVBA-HB=.,U9I->9UE
MI\0Y$XE0-_NY4_U'\JV[/QU;W'#;D/\ M#(_,9KSG)6D(W5HJTDYY
M-92KKH>C1RB3UF[>2_JQW%_\057B%"?=N!^0Y/Z5S>H>)[B]X9R!Z)\H_3D_
MC62<4H]JQE4E(]*E@J%+9)OONPHHHJ3H"BBB@84444 %%%% !1110 4444 %
M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44
M44 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 K2L?$D]C
M]R0X'\+?,/UZ?ABLWK28 H3:(G3C45FDUYG;:?\ $,-Q,F/=#Q^1/]372V&M
M0W_^J<$^F<-^1YKR7- )'(K6->2W."KE5*7PW3^]'M%%>8Z=XNN+'"[MZCL_
M/ZYS^M=3IOCJ&Y^63,9]^5_/_P"M^-:QJQ9YU;+J]+6UUY'2T4R&=9P'0AE/
M0J01^8I]:'&%%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %
M%%% !1110 5'/")U,;<3
M#I*OZKP?TQ7-9KBE'E;1]3AZJJTHR[H****1L%%%% !1110 4444 %%%% !1
M110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%
M% !1110 4444 %%%% !1110 444"@#L_AW>_ZRW/LP_D?Z5VM>7^$KO[+=(>
MSDH?^!#C]<5ZA751=XGSV9T^2NWWU"BBBM#A"BBB@ HHHH **** "BBB@ HH
MHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB
M@ HHHH **** "BBB@ HHHH **** "BBB@ KG/'5[Y%OY8ZR,!^ Y/\A71UY_
MX_O?-F6 =$7/XMS_ "Q457:+.O+Z?/7CY:_U\SEZ***Y#Z0**** "BBB@ HH
MHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB
M@ HHHH **** "BBB@ HHHH **** "BBB@ HHI",].M F[:G=?#VPV(]P>K':
M/HO7\R?TKKZIZ18_884A_NJ,_4\G]E1RNC#5^\_ZZ%N]U6:]YE=F]NB_D.*J$TFW-+TK-NYVQ@HJR5D%%
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M*(-1X5L-_=;@_P"!_ FMHU(R/-KX*M1U:T[HUJ***LY@HHHH **** "BBB@
MHHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "B
MBB@ HHHH **** "BBB@ HHHH **** "BBB@#@?B[_JH?]\_RKRZO4?B[_JH?
M]\_RKRZ@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHH
MH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
M KT/X0??G_W4_FU>>5Z'\(/OS_[J?S:@#TRBBB@ HHHH **** "BBB@ HHHH
M **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
MHHHH **** "BBB@ HHHH **** /(?BI_Q]C_ *Y+_-JXZNQ^*G_'V/\ KDO\
MVKCJ "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ H
MHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "O7
MOA7_ ,>A_P"NK?R6O(:]>^%?_'H?^NK?R6@#L:*** "BBB@ HHHH **** "B
MBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ***
M* "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
MHHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "B
MBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ***
M* "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
MHHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "B
MBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ***
M* "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M **** "O&/B5_P ?K_[J?^@BO9Z\8^)7_'Z_^ZG_ *"* .7HHHH **** "BB
MB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M /0_A!]^?_=3^;5Z97F?P@^_/_NI_-J],H **** "BBB@ HHHH **** "BBB
M@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH *
M*** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** *.N?\>\W
M_7*3_P!!-?/U?0.N?\>\W_7*3_T$U\_4 %%%% !1110 4444 %%%% !1110
M4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110![QX2_P"/2#_K
MDG\JUZR/"7_'I!_UR3^5:] !1110 4444 %%%% !1110 4444 %%%% !1110
M 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !
M1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%
M%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 444
M4 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110
M 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !
M1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%
M%% !1110 4444 %%%% !6'XE\2KI2[%P92.!V'N?\\T>)?$JZ4NQ<&5AP.P]
MS_GFO-IYVN&,CDEB
?Q,/X?;Z_P OKTX$MNZT$[CF@G%
W;J*]"5@XR.0>A%>,>U=+X4\4FP(MY>8ST/7;_ /6]NW45M2JV
MT9Y./R_FO4@M>J_KK^9Z'12*P<9'(/0BEKH/&"BBB@ HHHH **** "BBB@ H
MHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BB
MB@ HHHH **** "BBB@ KSCQAK_\ :$GE(?W<9Q]6Z$_AT'_UZZ3QGKGV&/R4
M/[R0?DO<_P!!_P#6KSK.>>U85I_9/7RO"_\ +U_+_,****P/8"BBB@ HHHH
M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ H
MHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BB
MB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@#N
M/ >M>8#9N>5Y3Z=Q^'^>E=A7CMI=M9NLR?>0Y'^?0C@UZSI]\M]&LR=&&?\
M$?@:Z:,[JQX&9X;V=3G6TOS+-%%%:GGA1110 4V2,2 J>01@CZTZB@#Q_4+0
MV4CPG^%B/\#^(JN1VKJOB!I_ERK..DBX/U7_ !!'Y5RF<\UQ3CRR:/J,-5]K
M2C+NO^'%HHHI&X4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !111
M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%%
MC9\(7GV:Z3T?*G\>GZXKT^O&8Y#$1(.JD$?4
M/S2F9BQZL23]37HWCB]^SVY0=9&"_AU/\L?C7FV.]<]=ZI'MY13M"4N[_(6B
MBBL3U HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH *
M*** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH *!13HH3.1&O+,
M0!]3TH$VDKG?^ K#R(3,>LC'\EX'ZYKIZAL[46J+$.B*!^0J:NV*LDCY6O4]
MI4E+NPHHHIF8445%
W;J*]"5@XR.0>A%>,>U=+X5\5'3R()C^Z/0]=O\
M];V[=16U*K;1GDYAE_->I!:]5_77\ST.BD5@XR.0>A%+70>,%%%% !1110 4
M444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !11
M10 4444 %%%% !1110 5!>WBV:-,_"J,G_/O4]<'XZUKSV%JA^5#EL=V]/P_
MG]*F
1!,
GY?3>E4Z,\G,<#O4C\T=U1116YXX4
M444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !11
M10 4444 87C'5?L$!53\\ORCZ?Q'\OYBO-#S6SXLU7[?.Q'W4^5?3CJ?Q/Z8
MK&'K7)5ES2/H\OP_LJ*ON]6%%%%0=@4444 %%%% !1110 4444 %%%% !111
M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%%
M!1110 4444 %%%% !1110 4444 %%%% !1110 444 9XH$&,48S6[I?@V>]P
MQ'EH>[YS_P!\]?SQ75:=X(@M>7!D;_;Z?]\CC\\U<:4F
6_P!8^"WMZ+^'\ZNG#F9R8[%*A3=OB>W]>1I:=IZ:?&(8QA5'
MY^I/N:LT45UGSC;;N%%%% @HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** (;NU6[0
MQ.,JPP17E6LZ6VF2&%NW(/J#T/\ C[UZW6#XOT3^THMZC]Y'DK[CN/\ #WK.
MK#F5^IW9?BO8SY7\+_JYYK1117*?0A1110 4444 %%%% !1110 4444 %%%%
M !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444
M%%%% !1110 4444 %%%% &KX6O/LMU&>S':?^!#'\Z]3KQ='*'>.JGC\*]CM
M9Q<(LHZ.H(_$9KHH/1H\3-X6G&?
AT%%%%=1\\%%%% !111
M0 4444 %>>>/EVW ]XU/ZL*]#K@_B%'B5&]4Q^1/^-9UOA.[*W;$+T9R=%%%
MA:3KD6J#=&>1U4_>'X?Y%>39'XT^&5H2'4D
M$="#@C\JTA5<=.APXK+X5_>6DOP^9[-17"Z1X]:/"7 W#^\O#?B.A_#'XUU]
MAJL6H#=$P;Z=1]1U%=$9J6QXU?"U:+]Y:=^A;HHHJC **** "BBB@ HHHH *
M*** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HH
MHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB
M@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
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M "BBB@ HHHH **** "BBB@ IT
?5RJK'X6I?@=_16!8^-K>YX8E#_
M +8_J,BMN&X6<;D(8>JD$?I6BDGL<-2E.G\2:)****9 4444 %%%% !1110
M4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1
M110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%
M% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444
M %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 <_X]_X\9O\
M=7_T(5XA7M_CW_CQF_W5_P#0A7B% !1110 4444 %%%% !1110 4444 %%%%
M !1110 5[%\,/^/,?[[_ ,Z\=KV+X8?\>8_WW_G0!UM%%% !1110 4444 %%
M%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 444
M4 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110
M 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110!POQ;_X]X_\
MKK_[*:\JKU7XM_\ 'O'_ -=?_937E5 !1110 4444 %%%% !1110 4444 %%
M%% !1110 5[[X:_X]8/^N$7_ * *\"KWWPU_QZP?]<(O_0!0!I4444 %%%%
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MUM
:XQ[T;\5:K27F<=3*Z$MO=]#V2"Y6X&Y#U4@C]*
MDKQJ.=HCN4E3ZJ2#^8K8L_&5S:\;]P]'&?U^M:*NNIQU,HJ+X9)^NAZ;17
M'V?Q#5N)4(]T(/Z''\S6Y9^)K>[X609]&^4_KC]*T4XOJ<57"5J7Q19J44G6
MEJC **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BB
MB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** .?\>_\ 'C-_
MNK_Z$*\0KV_Q[_QXS?[J_P#H0KQ"@ HHHH **** "BBB@ HHHH **** "BBB
M@ HHHH *]B^&'_'F/]]_YUX[7L7PP_X\Q_OO_.@#K:*** "BBB@ HHHH ***
M* "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
MHHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@#A?BW_P >\?\
MUU_]E->55ZK\6_\ CWC_ .NO_LIKRJ@ HHHH **** "BBB@ HHHH **** "B
MBB@ HHHH *]]\-?\>L'_ %PB_P#0!7@5>^^&O^/6#_KA%_Z * -*BBB@ HHH
MH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
M HHHH **** "BBB@ HHI"<
?Y9KT2O(-,N_L
)?+\@HHHK0XPHHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
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M=;O/M<\DO8L0<#] *S^M*3FC&*X6[NY]5"*C%16R"BBB@L**** "BBB@ H
MHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BB
MB@ HHHH **** "BBB@ HHHH$6](L?M\J0_WFP?IU;]!7K@&*X;X>Z?N=[@]%
M&T?4]?R _6NZKIHQM&YX.:U>>MR_RA1116IYX4444 %%%% !1110 4444 %%
M%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 5=1TU-10Q2#(/Y
M@^H]Z\SUO0GTE]K