Significant Accounting Policies (Tables)

9 Months Ended

Sep. 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	September 30, 2022		December 31, 2021		September 30, 2021
Cash and cash equivalents	$	17,197	$	9,408	$	9,826
Restricted cash (included in other current assets)	151		3,065		2,996
Restricted cash (included in other assets)	215		218		218
Total cash, cash equivalents and restricted cash in the statements of cash flows	$	17,563	$	12,691	$	13,040

Schedule of accounts receivable, net

Accounts receivable, net is composed of the following:


In millions	September 30, 2022		December 31, 2021
Trade receivables	$	8,016	$	7,932
Vendor and manufacturer receivables	13,534		10,573
Premium receivables	2,368		2,537
Other receivables	2,647		3,389
Total accounts receivable, net (1)	$	26,565	$	24,431

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(1)Includes accounts receivable of $248 million which have been accounted for as assets held for sale and are included in assets held for sale on the unaudited condensed consolidated balance sheet at September 30, 2022. See Note 2 ‘‘Acquisition, Divestitures and Asset Sales’’ for additional information.

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, 2022 and 2021:


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Three Months Ended September 30, 2022
Major goods/services lines:
Pharmacy	$	—	$	42,947	$	20,759	$	—	$	(11,331)	$	52,375
Front Store	—		—		5,581		—		—		5,581
Premiums	20,989		—		—		14		—		21,003
Net investment income (loss)	101		—		(10)		110		—		201
Other	1,421		269		376		18		(85)		1,999
Total	$	22,511	$	43,216	$	26,706	$	142	$	(11,416)	$	81,159

Pharmacy Services distribution channel:
Pharmacy network (1)			$	25,012
Mail choice (2)			17,935
Other			269
Total			$	43,216

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


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
Nine Months Ended September 30, 2022
Major goods/services lines:
Pharmacy	$	—	$	124,712	$	60,308	$	—	$	(33,829)	$	151,191
Front Store	—		—		16,630		—		—		16,630
Premiums	63,848		—		—		46		—		63,894
Net investment income (loss)	278		—		(44)		281		—		515
Other	4,250		777		1,516		51		(203)		6,391
Total	$	68,376	$	125,489	$	78,410	$	378	$	(34,032)	$	238,621

Pharmacy Services distribution channel:
Pharmacy network (1)			$	72,373
Mail choice (2)			52,339
Other			777
Total			$	125,489

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

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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, 2022		December 31, 2021
Trade receivables (included in accounts receivable, net)	$	8,016	$	7,932
Contract liabilities (included in accrued expenses)	74		87

During the nine months ended September 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:


	Nine Months Ended September 30,
In millions	2022		2021
Contract liabilities, beginning of the period	$	87	$	71
Rewards earnings and gift card issuances	250		286
Redemption and breakage	(263)		(279)
Contract liabilities, end of the period	$	74	$	78