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: | February 8, 2023 | By: | /s/ Shawn M. Guertin | ||||||||
Shawn M. Guertin | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
CVS HEALTH REPORTS STRONG FOURTH QUARTER AND FULL-YEAR 2022 RESULTS | ||||||||
WOONSOCKET, RHODE ISLAND, February 8, 2023 - CVS Health Corporation (NYSE: CVS) today announced operating results for the three months and year ended December 31, 2022. |
FOURTH QUARTER HIGHLIGHTS | KEY FINANCIAL DATA |
FULL-YEAR HIGHLIGHTS |
Three Months Ended December 31, | |||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | Change | ||||||||||||||
Total revenues | $ | 83,846 | $ | 76,604 | $ | 7,242 | |||||||||||
Operating income | 3,618 | 2,229 | 1,389 | ||||||||||||||
Adjusted operating income (1) | 4,006 | 4,147 | (141) | ||||||||||||||
Diluted earnings per share | $ | 1.75 | $ | 0.98 | $ | 0.77 | |||||||||||
Adjusted EPS (2) | $ | 1.99 | $ | 1.98 | $ | 0.01 |
2023 FULL-YEAR GUIDANCE | |||||
•GAAP diluted EPS guidance range of $7.73 to $7.93 •Adjusted EPS guidance range of $8.70 to $8.90 •Cash flow from operations guidance range of $12.5 billion to $13.5 billion |
CEO Commentary | “Last year was defined by outperformance across our foundational businesses, robust cash flow from operations and meaningful progress against our value-based care delivery strategy. 2022 was a year of progress, and we continue to build on that momentum with bold moves that will improve the health care experience.” -Karen S. Lynch, CVS Health President and CEO |
2022 IN THE SPOTLIGHT |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 83,846 | $ | 76,604 | $ | 7,242 | $ | 322,467 | $ | 292,111 | $ | 30,356 | |||||||||||||||||||||||
Operating income | 3,618 | 2,229 | 1,389 | 7,746 | 13,193 | (5,447) | |||||||||||||||||||||||||||||
Adjusted operating income (1) | 4,006 | 4,147 | (141) | 17,532 | 17,312 | 220 | |||||||||||||||||||||||||||||
Net income | 2,300 | 1,296 | 1,004 | 4,165 | 7,898 | (3,733) | |||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.75 | $ | 0.98 | $ | 0.77 | $ | 3.14 | $ | 5.95 | $ | (2.81) | |||||||||||||||||||||||
Adjusted EPS (2) | $ | 1.99 | $ | 1.98 | $ | 0.01 | $ | 8.69 | $ | 8.40 | $ | 0.29 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 23,033 | $ | 20,699 | $ | 2,334 | $ | 91,409 | $ | 82,186 | $ | 9,223 | |||||||||||||||||||||||
Adjusted operating income (1) | 858 | 510 | 348 | 5,984 | 5,012 | 972 | |||||||||||||||||||||||||||||
Medical benefit ratio (“MBR”) (3) | 86.0 | % | 87.0 | % | (1.0) | % | 84.0 | % | 85.0 | % | (1.0) | % | |||||||||||||||||||||||
Medical membership (4) | 24.4 | 23.8 | 0.6 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 43,747 | $ | 39,341 | $ | 4,406 | $ | 169,236 | $ | 153,022 | $ | 16,214 | |||||||||||||||||||||||
Adjusted operating income (1) | 1,988 | 1,824 | 164 | 7,356 | 6,859 | 497 | |||||||||||||||||||||||||||||
Total pharmacy claims processed (5) (6) | 600.4 | 582.2 | 18.2 | 2,336.6 | 2,244.7 | 91.9 | |||||||||||||||||||||||||||||
Pharmacy network (7) | 517.9 | 498.2 | 19.7 | 2,003.6 | 1,914.0 | 89.6 | |||||||||||||||||||||||||||||
Mail choice (8) | 82.5 | 84.0 | (1.5) | 333.0 | 330.7 | 2.3 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
In millions | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Total revenues | $ | 28,184 | $ | 27,111 | $ | 1,073 | $ | 106,594 | $ | 100,105 | $ | 6,489 | |||||||||||||||||||||||
Adjusted operating income (1) | 1,840 | 2,457 | (617) | 6,705 | 7,623 | (918) | |||||||||||||||||||||||||||||
Prescriptions filled (5) (6) | 423.1 | 419.8 | 3.3 | 1,623.8 | 1,587.6 | 36.2 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
In millions, except per share amounts | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Products | $ | 59,657 | $ | 53,973 | $ | 226,616 | $ | 203,738 | |||||||||||||||
Premiums | 21,436 | 19,205 | 85,330 | 76,132 | |||||||||||||||||||
Services | 2,430 | 3,059 | 9,683 | 11,042 | |||||||||||||||||||
Net investment income | 323 | 367 | 838 | 1,199 | |||||||||||||||||||
Total revenues | 83,846 | 76,604 | 322,467 | 292,111 | |||||||||||||||||||
Operating costs: | |||||||||||||||||||||||
Cost of products sold | 51,728 | 46,378 | 196,892 | 175,803 | |||||||||||||||||||
Benefit costs | 18,305 | 16,574 | 71,281 | 64,260 | |||||||||||||||||||
Opioid litigation charges | 99 | — | 5,803 | — | |||||||||||||||||||
Loss on assets held for sale | 12 | — | 2,533 | — | |||||||||||||||||||
Store impairments | — | 1,358 | — | 1,358 | |||||||||||||||||||
Goodwill impairment | — | — | — | 431 | |||||||||||||||||||
Operating expenses | 10,084 | 10,065 | 38,212 | 37,066 | |||||||||||||||||||
Total operating costs | 80,228 | 74,375 | 314,721 | 278,918 | |||||||||||||||||||
Operating income | 3,618 | 2,229 | 7,746 | 13,193 | |||||||||||||||||||
Interest expense | 552 | 608 | 2,287 | 2,503 | |||||||||||||||||||
Loss on early extinguishment of debt | — | 89 | — | 452 | |||||||||||||||||||
Other income | (43) | (38) | (169) | (182) | |||||||||||||||||||
Income before income tax provision | 3,109 | 1,570 | 5,628 | 10,420 | |||||||||||||||||||
Income tax provision | 809 | 274 | 1,463 | 2,522 | |||||||||||||||||||
Net income | 2,300 | 1,296 | 4,165 | 7,898 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 2 | 10 | (16) | 12 | |||||||||||||||||||
Net income attributable to CVS Health | $ | 2,302 | $ | 1,306 | $ | 4,149 | $ | 7,910 | |||||||||||||||
Net income per share attributable to CVS Health: | |||||||||||||||||||||||
Basic | $ | 1.76 | $ | 0.99 | $ | 3.16 | $ | 6.00 | |||||||||||||||
Diluted | $ | 1.75 | $ | 0.98 | $ | 3.14 | $ | 5.95 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 1,310 | 1,322 | 1,312 | 1,319 | |||||||||||||||||||
Diluted | 1,319 | 1,336 | 1,323 | 1,329 | |||||||||||||||||||
Dividends declared per share | $ | 0.55 | $ | 0.50 | $ | 2.20 | $ | 2.00 |
At December 31, | |||||||||||
In millions | 2022 | 2021 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 12,945 | $ | 9,408 | |||||||
Investments | 2,778 | 3,117 | |||||||||
Accounts receivable, net | 27,276 | 24,431 | |||||||||
Inventories | 19,090 | 17,760 | |||||||||
Assets held for sale | 908 | — | |||||||||
Other current assets | 2,685 | 5,292 | |||||||||
Total current assets | 65,682 | 60,008 | |||||||||
Long-term investments | 21,096 | 23,025 | |||||||||
Property and equipment, net | 12,873 | 12,896 | |||||||||
Operating lease right-of-use assets | 17,872 | 19,122 | |||||||||
Goodwill | 78,150 | 79,121 | |||||||||
Intangible assets, net | 24,754 | 29,026 | |||||||||
Separate accounts assets | 3,228 | 5,087 | |||||||||
Other assets | 4,620 | 4,714 | |||||||||
Total assets | $ | 228,275 | $ | 232,999 | |||||||
Liabilities: | |||||||||||
Accounts payable | $ | 14,838 | $ | 12,544 | |||||||
Pharmacy claims and discounts payable | 19,423 | 17,330 | |||||||||
Health care costs payable | 10,406 | 8,808 | |||||||||
Policyholders’ funds | 1,500 | 4,301 | |||||||||
Accrued expenses | 18,745 | 17,670 | |||||||||
Other insurance liabilities | 1,140 | 1,303 | |||||||||
Current portion of operating lease liabilities | 1,678 | 1,646 | |||||||||
Current portion of long-term debt | 1,778 | 4,205 | |||||||||
Liabilities held for sale | 228 | — | |||||||||
Total current liabilities | 69,736 | 67,807 | |||||||||
Long-term operating lease liabilities | 16,800 | 18,177 | |||||||||
Long-term debt | 50,476 | 51,971 | |||||||||
Deferred income taxes | 3,880 | 6,270 | |||||||||
Separate accounts liabilities | 3,228 | 5,087 | |||||||||
Other long-term insurance liabilities | 6,108 | 6,402 | |||||||||
Other long-term liabilities | 6,732 | 1,904 | |||||||||
Total liabilities | 156,960 | 157,618 | |||||||||
Shareholders’ equity: | |||||||||||
Preferred stock | — | — | |||||||||
Common stock and capital surplus | 48,193 | 47,377 | |||||||||
Treasury stock | (31,858) | (28,173) | |||||||||
Retained earnings | 56,145 | 54,906 | |||||||||
Accumulated other comprehensive income (loss) | (1,465) | 965 | |||||||||
Total CVS Health shareholders’ equity | 71,015 | 75,075 | |||||||||
Noncontrolling interests | 300 | 306 | |||||||||
Total shareholders’ equity | 71,315 | 75,381 | |||||||||
Total liabilities and shareholders’ equity | $ | 228,275 | $ | 232,999 |
Year Ended December 31, | |||||||||||
In millions | 2022 | 2021 | |||||||||
Cash flows from operating activities: | |||||||||||
Cash receipts from customers | $ | 313,662 | $ | 284,219 | |||||||
Cash paid for inventory and prescriptions dispensed by retail network pharmacies | (189,766) | (165,783) | |||||||||
Insurance benefits paid | (69,728) | (63,598) | |||||||||
Cash paid to other suppliers and employees | (32,662) | (31,652) | |||||||||
Interest and investment income received | 1,026 | 743 | |||||||||
Interest paid | (2,239) | (2,469) | |||||||||
Income taxes paid | (4,116) | (3,195) | |||||||||
Net cash provided by operating activities | 16,177 | 18,265 | |||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales and maturities of investments | 6,729 | 7,246 | |||||||||
Purchases of investments | (7,746) | (9,963) | |||||||||
Purchases of property and equipment | (2,727) | (2,520) | |||||||||
Acquisitions (net of cash acquired) | (139) | (146) | |||||||||
Proceeds from sale of subsidiaries (net of cash and restricted cash sold of $2,854 and $0) | (1,249) | — | |||||||||
Other | 85 | 122 | |||||||||
Net cash used in investing activities | (5,047) | (5,261) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | — | 987 | |||||||||
Repayments of long-term debt | (4,211) | (10,254) | |||||||||
Repurchase of common stock | (3,500) | — | |||||||||
Dividends paid | (2,907) | (2,625) | |||||||||
Proceeds from exercise of stock options | 551 | 549 | |||||||||
Payments for taxes related to net share settlement of equity awards | (370) | (168) | |||||||||
Other | (79) | 155 | |||||||||
Net cash used in financing activities | (10,516) | (11,356) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 614 | 1,648 | |||||||||
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 | $ | 13,305 | $ | 12,691 |
Year Ended December 31, | |||||||||||
In millions | 2022 | 2021 | |||||||||
Reconciliation of net income to net cash provided by operating activities: | |||||||||||
Net income | $ | 4,165 | $ | 7,898 | |||||||
Adjustments required to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 4,247 | 4,512 | |||||||||
Loss on assets held for sale | 2,533 | — | |||||||||
Store impairments | — | 1,358 | |||||||||
Goodwill impairment | — | 431 | |||||||||
Stock-based compensation | 447 | 484 | |||||||||
Gain on sale of subsidiaries | (475) | — | |||||||||
Loss on early extinguishment of debt | — | 452 | |||||||||
Deferred income taxes | (2,075) | (428) | |||||||||
Other noncash items | 332 | (390) | |||||||||
Change in operating assets and liabilities, net of effects from acquisitions: | |||||||||||
Accounts receivable, net | (2,971) | (2,703) | |||||||||
Inventories | (1,435) | 735 | |||||||||
Other assets | (566) | (3) | |||||||||
Accounts payable and pharmacy claims and discounts payable | 4,260 | 2,898 | |||||||||
Health care costs payable and other insurance liabilities | 1,247 | 169 | |||||||||
Other liabilities | 6,468 | 2,852 | |||||||||
Net cash provided by operating activities | $ | 16,177 | $ | 18,265 |
Three Months Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 711 | $ | 1,945 | $ | 1,760 | $ | (626) | $ | (172) | $ | 3,618 | |||||||||||||||||||||||
Amortization of intangible assets | 300 | 41 | 68 | 1 | — | 410 | |||||||||||||||||||||||||||||
Office real estate optimization charges | 97 | 2 | — | 18 | — | 117 | |||||||||||||||||||||||||||||
Gain on divestiture of subsidiary | (250) | — | — | — | — | (250) | |||||||||||||||||||||||||||||
Opioid litigation charges | — | — | — | 99 | — | 99 | |||||||||||||||||||||||||||||
Loss on assets held for sale | — | — | 12 | — | — | 12 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 858 | $ | 1,988 | $ | 1,840 | $ | (508) | $ | (172) | $ | 4,006 |
Three Months Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 152 | $ | 1,780 | $ | 973 | $ | (488) | $ | (188) | $ | 2,229 | |||||||||||||||||||||||
Amortization of intangible assets | 358 | 44 | 126 | 1 | — | 529 | |||||||||||||||||||||||||||||
Acquisition-related integration costs | — | — | — | 31 | — | 31 | |||||||||||||||||||||||||||||
Store impairments | — | — | 1,358 | — | — | 1,358 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 510 | $ | 1,824 | $ | 2,457 | $ | (456) | $ | (188) | $ | 4,147 |
Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 5,118 | $ | 7,187 | $ | 3,778 | $ | (7,609) | $ | (728) | $ | 7,746 | |||||||||||||||||||||||
Amortization of intangible assets | 1,203 | 167 | 435 | 3 | — | 1,808 | |||||||||||||||||||||||||||||
Office real estate optimization charges | 97 | 2 | — | 18 | — | 117 | |||||||||||||||||||||||||||||
Gain on divestiture of subsidiaries | (475) | — | — | — | — | (475) | |||||||||||||||||||||||||||||
Opioid litigation charges | — | — | — | 5,803 | — | 5,803 | |||||||||||||||||||||||||||||
Loss on assets held for sale | 41 | — | 2,492 | — | — | 2,533 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 5,984 | $ | 7,356 | $ | 6,705 | $ | (1,785) | $ | (728) | $ | 17,532 |
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services | Retail/ LTC | Corporate/ Other | Intersegment Eliminations | Consolidated Totals | |||||||||||||||||||||||||||||
Operating income (loss) (GAAP measure) | $ | 3,521 | $ | 6,667 | $ | 5,322 | $ | (1,606) | $ | (711) | $ | 13,193 | |||||||||||||||||||||||
Amortization of intangible assets | 1,552 | 192 | 512 | 3 | — | 2,259 | |||||||||||||||||||||||||||||
Acquisition-related integration costs | — | — | — | 132 | — | 132 | |||||||||||||||||||||||||||||
Store impairments | — | — | 1,358 | — | — | 1,358 | |||||||||||||||||||||||||||||
Goodwill impairment | — | — | 431 | — | — | 431 | |||||||||||||||||||||||||||||
Acquisition purchase price adjustment outside of measurement period | (61) | — | — | — | — | (61) | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 5,012 | $ | 6,859 | $ | 7,623 | $ | (1,471) | $ | (711) | $ | 17,312 |
Three Months Ended December 31, 2022 | Three Months Ended December 31, 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) | $ | 2,302 | $ | 1.75 | $ | 1,306 | $ | 0.98 | |||||||||||||||
Amortization of intangible assets | 410 | 0.31 | 529 | 0.40 | |||||||||||||||||||
Office real estate optimization charges | 117 | 0.09 | — | — | |||||||||||||||||||
Gain on divestiture of subsidiary | (250) | (0.19) | — | — | |||||||||||||||||||
Opioid litigation charges | 99 | 0.08 | — | — | |||||||||||||||||||
Loss on assets held for sale | 12 | 0.01 | — | — | |||||||||||||||||||
Acquisition-related integration costs | — | — | 31 | 0.02 | |||||||||||||||||||
Store impairments | — | — | 1,358 | 1.02 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | 89 | 0.07 | |||||||||||||||||||
Tax impact of non-GAAP adjustments | (71) | (0.06) | (674) | (0.51) | |||||||||||||||||||
Adjusted income attributable to CVS Health (2) | $ | 2,619 | $ | 1.99 | $ | 2,639 | $ | 1.98 | |||||||||||||||
Weighted average diluted shares outstanding | 1,319 | 1,336 | |||||||||||||||||||||
Year Ended December 31, 2022 | Year Ended December 31, 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) | $ | 4,149 | $ | 3.14 | $ | 7,910 | $ | 5.95 | |||||||||||||||
Amortization of intangible assets | 1,808 | 1.37 | 2,259 | 1.70 | |||||||||||||||||||
Office real estate optimization charges | 117 | 0.09 | — | — | |||||||||||||||||||
Gain on divestiture of subsidiaries | (475) | (0.36) | — | — | |||||||||||||||||||
Opioid litigation charges | 5,803 | 4.39 | — | — | |||||||||||||||||||
Loss on assets held for sale | 2,533 | 1.91 | — | — | |||||||||||||||||||
Acquisition-related integration costs | — | — | 132 | 0.10 | |||||||||||||||||||
Store impairments | — | — | 1,358 | 1.02 | |||||||||||||||||||
Goodwill impairment | — | — | 431 | 0.33 | |||||||||||||||||||
Acquisition purchase price adjustment outside of measurement period | — | — | (61) | (0.05) | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | 452 | 0.34 | |||||||||||||||||||
Tax impact of non-GAAP adjustments | (2,436) | (1.85) | (1,316) | (0.99) | |||||||||||||||||||
Adjusted income attributable to CVS Health (2) | $ | 11,499 | $ | 8.69 | $ | 11,165 | $ | 8.40 | |||||||||||||||
Weighted average diluted shares outstanding | 1,323 | 1,329 | |||||||||||||||||||||
In millions | Health Care Benefits | Pharmacy Services (a) | Retail/ LTC | Corporate/ Other | Intersegment Eliminations (b) | Consolidated Totals | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 23,033 | $ | 43,747 | $ | 28,184 | $ | 152 | $ | (11,270) | $ | 83,846 | |||||||||||||||||||||||
Adjusted operating income (loss) (1) | 858 | 1,988 | 1,840 | (508) | (172) | 4,006 | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Total revenues | 20,699 | 39,341 | 27,111 | 233 | (10,780) | 76,604 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | 510 | 1,824 | 2,457 | (456) | (188) | 4,147 | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 91,409 | $ | 169,236 | $ | 106,594 | $ | 530 | $ | (45,302) | $ | 322,467 | |||||||||||||||||||||||
Adjusted operating income (loss) (1) | 5,984 | 7,356 | 6,705 | (1,785) | (728) | 17,532 | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Total revenues | 82,186 | 153,022 | 100,105 | 721 | (43,923) | 292,111 | |||||||||||||||||||||||||||||
Adjusted operating income (loss) (1) | 5,012 | 6,859 | 7,623 | (1,471) | (711) | 17,312 |
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | Three Months Ended December 31, 2022 vs 2021 | Year Ended December 31, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages and basis points (“bps”) | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 21,426 | $ | 19,195 | $ | 85,274 | $ | 76,064 | $ | 2,231 | 11.6 | % | $ | 9,210 | 12.1 | % | |||||||||||||||||||||||||||||||
Services | 1,409 | 1,350 | 5,659 | 5,536 | 59 | 4.4 | % | 123 | 2.2 | % | |||||||||||||||||||||||||||||||||||||
Net investment income | 198 | 154 | 476 | 586 | 44 | 28.6 | % | (110) | (18.8) | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 23,033 | 20,699 | 91,409 | 82,186 | 2,334 | 11.3 | % | 9,223 | 11.2 | % | |||||||||||||||||||||||||||||||||||||
Benefit costs | 18,420 | 16,691 | 71,611 | 64,662 | 1,729 | 10.4 | % | 6,949 | 10.7 | % | |||||||||||||||||||||||||||||||||||||
MBR (Benefit costs as a % of premium revenues) (3) | 86.0 | % | 87.0 | % | 84.0 | % | 85.0 | % | (100) | bps | (100) | bps | |||||||||||||||||||||||||||||||||||
Loss on assets held for sale | $ | — | $ | — | $ | 41 | $ | — | $ | — | — | % | $ | 41 | 100.0 | % | |||||||||||||||||||||||||||||||
Operating expenses | 3,902 | 3,856 | 14,639 | 14,003 | 46 | 1.2 | % | 636 | 4.5 | % | |||||||||||||||||||||||||||||||||||||
Operating expenses as a % of total revenues | 16.9 | % | 18.6 | % | 16.0 | % | 17.0 | % | |||||||||||||||||||||||||||||||||||||||
Operating income | $ | 711 | $ | 152 | $ | 5,118 | $ | 3,521 | $ | 559 | 367.8 | % | $ | 1,597 | 45.4 | % | |||||||||||||||||||||||||||||||
Operating income as a % of total revenues | 3.1 | % | 0.7 | % | 5.6 | % | 4.3 | % | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (1) | $ | 858 | $ | 510 | $ | 5,984 | $ | 5,012 | $ | 348 | 68.2 | % | $ | 972 | 19.4 | % | |||||||||||||||||||||||||||||||
Adjusted operating income as a % of total revenues | 3.7 | % | 2.5 | % | 6.5 | % | 6.1 | % | |||||||||||||||||||||||||||||||||||||||
Premium revenues (by business): | |||||||||||||||||||||||||||||||||||||||||||||||
Government | $ | 15,762 | $ | 14,022 | $ | 63,141 | $ | 55,739 | $ | 1,740 | 12.4 | % | $ | 7,402 | 13.3 | % | |||||||||||||||||||||||||||||||
Commercial | 5,664 | 5,173 | 22,133 | 20,325 | 491 | 9.5 | % | 1,808 | 8.9 | % |
December 31, 2022 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands | Insured | ASC | Total | Insured | ASC | Total | Insured | ASC | Total | ||||||||||||||||||||||||||||||||||||||||||||
Medical membership: (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 3,136 | 13,896 | 17,032 | 3,159 | 13,852 | 17,011 | 3,258 | 13,530 | 16,788 | ||||||||||||||||||||||||||||||||||||||||||||
Medicare Advantage | 3,270 | — | 3,270 | 3,260 | — | 3,260 | 2,971 | — | 2,971 | ||||||||||||||||||||||||||||||||||||||||||||
Medicare Supplement | 1,363 | — | 1,363 | 1,345 | — | 1,345 | 1,285 | — | 1,285 | ||||||||||||||||||||||||||||||||||||||||||||
Medicaid | 2,234 | 497 | 2,731 | 2,181 | 490 | 2,671 | 2,333 | 471 | 2,804 | ||||||||||||||||||||||||||||||||||||||||||||
Total medical membership | 10,003 | 14,393 | 24,396 | 9,945 | 14,342 | 24,287 | 9,847 | 14,001 | 23,848 | ||||||||||||||||||||||||||||||||||||||||||||
Supplemental membership information: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Medicare Prescription Drug Plan (standalone) | 6,128 | 6,090 | 5,777 |
Year Ended December 31, | |||||||||||
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 | 71,541 | 64,761 | |||||||||
Prior years (a) | (654) | (788) | |||||||||
Total incurred health care costs (b) | 70,887 | 63,973 | |||||||||
Less: Claims paid | |||||||||||
Current year | 61,640 | 56,323 | |||||||||
Prior years | 7,646 | 6,792 | |||||||||
Total claims paid | 69,286 | 63,115 | |||||||||
Add: Premium deficiency reserve | — | 16 | |||||||||
Health care costs payable, end of period, net | 10,401 | 8,800 | |||||||||
Add: Reinsurance recoverables | 5 | 8 | |||||||||
Health care costs payable, end of period | $ | 10,406 | $ | 8,808 |
December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Days Claims Payable (9) | 52.5 | 54.9 | 54.3 | 51.7 | 49.1 |
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | Three Months Ended December 31, 2022 vs 2021 | Year Ended December 31, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Products | $ | 43,381 | $ | 39,035 | $ | 168,004 | $ | 151,851 | $ | 4,346 | 11.1 | % | $ | 16,153 | 10.6 | % | |||||||||||||||||||||||||||||||
Services | 366 | 306 | 1,232 | 1,171 | 60 | 19.6 | % | 61 | 5.2 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 43,747 | 39,341 | 169,236 | 153,022 | 4,406 | 11.2 | % | 16,214 | 10.6 | % | |||||||||||||||||||||||||||||||||||||
Cost of products sold | 41,393 | 37,180 | 160,421 | 144,894 | 4,213 | 11.3 | % | 15,527 | 10.7 | % | |||||||||||||||||||||||||||||||||||||
Gross profit (10) | 2,354 | 2,161 | 8,815 | 8,128 | 193 | 8.9 | % | 687 | 8.5 | % | |||||||||||||||||||||||||||||||||||||
Gross margin (Gross profit as a % of total revenues) (10) | 5.4 | % | 5.5 | % | 5.2 | % | 5.3 | % | |||||||||||||||||||||||||||||||||||||||
Operating expenses | $ | 409 | $ | 381 | $ | 1,628 | $ | 1,461 | $ | 28 | 7.3 | % | $ | 167 | 11.4 | % | |||||||||||||||||||||||||||||||
Operating expenses as a % of total revenues | 0.9 | % | 1.0 | % | 1.0 | % | 1.0 | % | |||||||||||||||||||||||||||||||||||||||
Operating income | $ | 1,945 | $ | 1,780 | $ | 7,187 | $ | 6,667 | $ | 165 | 9.3 | % | $ | 520 | 7.8 | % | |||||||||||||||||||||||||||||||
Operating income as a % of total revenues | 4.4 | % | 4.5 | % | 4.2 | % | 4.4 | % | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (1) | $ | 1,988 | $ | 1,824 | $ | 7,356 | $ | 6,859 | $ | 164 | 9.0 | % | $ | 497 | 7.2 | % | |||||||||||||||||||||||||||||||
Adjusted operating income as a % of total revenues | 4.5 | % | 4.6 | % | 4.3 | % | 4.5 | % | |||||||||||||||||||||||||||||||||||||||
Revenues (by distribution channel): | |||||||||||||||||||||||||||||||||||||||||||||||
Pharmacy network (7) | $ | 25,295 | $ | 23,239 | $ | 97,668 | $ | 91,715 | $ | 2,056 | 8.8 | % | $ | 5,953 | 6.5 | % | |||||||||||||||||||||||||||||||
Mail choice (8) | 18,127 | 15,862 | 70,466 | 60,547 | 2,265 | 14.3 | % | 9,919 | 16.4 | % | |||||||||||||||||||||||||||||||||||||
Other | 325 | 240 | 1,102 | 760 | 85 | 35.4 | % | 342 | 45.0 | % | |||||||||||||||||||||||||||||||||||||
Pharmacy claims processed: (5) (6) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (a) | 600.4 | 582.2 | 2,336.6 | 2,244.7 | 18.2 | 3.1 | % | 91.9 | 4.1 | % | |||||||||||||||||||||||||||||||||||||
Pharmacy network (7) | 517.9 | 498.2 | 2,003.6 | 1,914.0 | 19.7 | 4.0 | % | 89.6 | 4.7 | % | |||||||||||||||||||||||||||||||||||||
Mail choice (8) | 82.5 | 84.0 | 333.0 | 330.7 | (1.5) | (1.8) | % | 2.3 | 0.7 | % | |||||||||||||||||||||||||||||||||||||
Generic dispensing rate: (6) (11) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (b) | 86.4 | % | 85.4 | % | 87.4 | % | 86.8 | % | |||||||||||||||||||||||||||||||||||||||
Pharmacy network (7) | 86.6 | % | 85.4 | % | 87.7 | % | 87.0 | % | |||||||||||||||||||||||||||||||||||||||
Mail choice (8) | 85.5 | % | 85.5 | % | 85.6 | % | 85.6 | % | |||||||||||||||||||||||||||||||||||||||
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | Three Months Ended December 31, 2022 vs 2021 | Year Ended December 31, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Products | $ | 27,514 | $ | 25,678 | $ | 103,762 | $ | 95,652 | $ | 1,836 | 7.2 | % | $ | 8,110 | 8.5 | % | |||||||||||||||||||||||||||||||
Services | 670 | 1,429 | 2,876 | 4,436 | (759) | (53.1) | % | (1,560) | (35.2) | % | |||||||||||||||||||||||||||||||||||||
Net investment income (loss) | — | 4 | (44) | 17 | (4) | (100.0) | % | (61) | (358.8) | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 28,184 | 27,111 | 106,594 | 100,105 | 1,073 | 4.0 | % | 6,489 | 6.5 | % | |||||||||||||||||||||||||||||||||||||
Cost of products sold | 21,093 | 19,457 | 79,684 | 72,832 | 1,636 | 8.4 | % | 6,852 | 9.4 | % | |||||||||||||||||||||||||||||||||||||
Gross profit (10) | 7,091 | 7,654 | 26,910 | 27,273 | (563) | (7.4) | % | (363) | (1.3) | % | |||||||||||||||||||||||||||||||||||||
Gross margin (Gross profit as a % of total revenues) (10) | 25.2 | % | 28.2 | % | 25.2 | % | 27.2 | % | |||||||||||||||||||||||||||||||||||||||
Loss on assets held for sale | $ | 12 | $ | — | $ | 2,492 | $ | — | $ | 12 | 100.0 | % | $ | 2,492 | 100.0 | % | |||||||||||||||||||||||||||||||
Store impairments | — | 1,358 | — | 1,358 | (1,358) | (100.0) | % | (1,358) | (100.0) | % | |||||||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | 431 | — | — | % | (431) | (100.0) | % | |||||||||||||||||||||||||||||||||||||
Operating expenses | 5,319 | 5,323 | 20,640 | 20,162 | (4) | (0.1) | % | 478 | 2.4 | % | |||||||||||||||||||||||||||||||||||||
Operating expenses as a % of total revenues | 18.9 | % | 19.6 | % | 19.4 | % | 20.1 | % | |||||||||||||||||||||||||||||||||||||||
Operating income | $ | 1,760 | $ | 973 | $ | 3,778 | $ | 5,322 | $ | 787 | 80.9 | % | $ | (1,544) | (29.0) | % | |||||||||||||||||||||||||||||||
Operating income as a % of total revenues | 6.2 | % | 3.6 | % | 3.5 | % | 5.3 | % | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (1) | $ | 1,840 | $ | 2,457 | $ | 6,705 | $ | 7,623 | $ | (617) | (25.1) | % | $ | (918) | (12.0) | % | |||||||||||||||||||||||||||||||
Adjusted operating income as a % of total revenues | 6.5 | % | 9.1 | % | 6.3 | % | 7.6 | % | |||||||||||||||||||||||||||||||||||||||
Revenues (by major goods/service lines): | |||||||||||||||||||||||||||||||||||||||||||||||
Pharmacy | $ | 21,702 | $ | 20,340 | $ | 82,010 | $ | 76,121 | $ | 1,362 | 6.7 | % | $ | 5,889 | 7.7 | % | |||||||||||||||||||||||||||||||
Front Store | 6,150 | 6,060 | 22,780 | 21,315 | 90 | 1.5 | % | 1,465 | 6.9 | % | |||||||||||||||||||||||||||||||||||||
Other | 332 | 707 | 1,848 | 2,652 | (375) | (53.0) | % | (804) | (30.3) | % | |||||||||||||||||||||||||||||||||||||
Net investment income (loss) | — | 4 | (44) | 17 | (4) | (100.0) | % | (61) | (358.8) | % | |||||||||||||||||||||||||||||||||||||
Prescriptions filled (5) (6) (a) | 423.1 | 419.8 | 1,623.8 | 1,587.6 | 3.3 | 0.8 | % | 36.2 | 2.3 | % | |||||||||||||||||||||||||||||||||||||
Same store sales increase: (12) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 7.7 | % | 13.4 | % | 9.0 | % | 8.9 | % | |||||||||||||||||||||||||||||||||||||||
Pharmacy | 9.1 | % | 11.8 | % | 9.5 | % | 9.3 | % | |||||||||||||||||||||||||||||||||||||||
Front Store | 3.1 | % | 18.9 | % | 7.4 | % | 7.6 | % | |||||||||||||||||||||||||||||||||||||||
Prescription volume (6) | 3.1 | % | 12.8 | % | 4.0 | % | 9.3 | % | |||||||||||||||||||||||||||||||||||||||
Generic dispensing rate (6) (11) (b) | 85.9 | % | 83.4 | % | 87.4 | % | 85.7 | % |
Change | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | Three Months Ended December 31, 2022 vs 2021 | Year Ended December 31, 2022 vs 2021 | ||||||||||||||||||||||||||||||||||||||||||||
In millions, except percentages | 2022 | 2021 | 2022 | 2021 | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 10 | $ | 10 | $ | 56 | $ | 68 | $ | — | — | % | $ | (12) | (17.6) | % | |||||||||||||||||||||||||||||||
Services | 17 | 14 | 68 | 57 | 3 | 21.4 | % | 11 | 19.3 | % | |||||||||||||||||||||||||||||||||||||
Net investment income | 125 | 209 | 406 | 596 | (84) | (40.2) | % | (190) | (31.9) | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 152 | 233 | 530 | 721 | (81) | (34.8) | % | (191) | (26.5) | % | |||||||||||||||||||||||||||||||||||||
Cost of products sold | 11 | 10 | 42 | 37 | 1 | 10.0 | % | 5 | 13.5 | % | |||||||||||||||||||||||||||||||||||||
Benefit costs | 45 | 44 | 319 | 212 | 1 | 2.3 | % | 107 | 50.5 | % | |||||||||||||||||||||||||||||||||||||
Opioid litigation charges | 99 | — | 5,803 | — | 99 | 100.0 | % | 5,803 | 100.0 | % | |||||||||||||||||||||||||||||||||||||
Operating expenses | 623 | 667 | 1,975 | 2,078 | (44) | (6.6) | % | (103) | (5.0) | % | |||||||||||||||||||||||||||||||||||||
Operating loss | (626) | (488) | (7,609) | (1,606) | (138) | (28.3) | % | (6,003) | (373.8) | % | |||||||||||||||||||||||||||||||||||||
Adjusted operating loss (1) | (508) | (456) | (1,785) | (1,471) | (52) | (11.4) | % | (314) | (21.3) | % |
Year Ending December 31, 2023 | |||||||||||||||||||||||
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) | $ | 10,040 | $ | 7.73 | $ | 10,295 | $ | 7.93 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Amortization of intangible assets | 1,620 | 1.25 | 1,620 | 1.25 | |||||||||||||||||||
Office real estate optimization charges | 60 | 0.05 | 60 | 0.05 | |||||||||||||||||||
Tax impact of non-GAAP adjustments | (425) | (0.33) | (425) | (0.33) | |||||||||||||||||||
Adjusted income attributable to CVS Health (2) | $ | 11,295 | $ | 8.70 | $ | 11,550 | $ | 8.90 | |||||||||||||||
Weighted average diluted shares outstanding | 1,298 | 1,298 |
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%%
M%%!04444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%
M% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444
M %%%% !1110 4444 %%%% "JQ7D'!'I6S8>+[FTXW;U]'&?UX-8O6C@4U)K8
MSJ485%:23]3T#3_'L4W$JE#Z_>7].?TKHK6\2Z&^-@P]5(->.Y].:DM[E[<[
MT)4^JG!K2-=K<\^ME--ZP;7KJOZ^\]DHKS[3?'DL'$H$B^OW6_/I^GXUU>F>
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%=$9J6QXU?"U:+]Y:=^A;HHHJC **** "BBB@ HHHH *
M*** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HH
MHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB
M@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH *
M*** .?\ 'O\ QXS?[J_^A"O$*]O\>_\ 'C-_NK_Z$*\0H **** "BBB@ HHH
MH **** "BBB@ HHHH **** "O8OAA_QYC_??^=>.U[%\,/\ CS'^^_\ .@#K
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@#A?BW_ ,>\?_77_P!E->55ZK\6_P#CWC_ZZ_\ LIKRJ@ HHHH ****
M "BBB@ HHHH **** "BBB@ HHHH *]]\-?\ 'K!_UPB_] %>!5[[X:_X]8/^
MN$7_ * * -*BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "B
MBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ***
M* "BBB@ HHHH **** "BL'6_&UMI&5=MSC^!/F/X]A^)K@=9^)]Q>96$")/;
MYG_,]/P ^M 'J&HZO#IHWS.J#W/)^@ZG\*XS5OBQ''E;9"Q_O/\ *OY=3^E>
M9SW#7!+N2S'J6))/XFHZ -W5?&EUJ?#R$*?X4^5?IQR?Q)K"HHH **** "BB
MB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M "BBB@ HHHH **** "BBB@ IT
?5RJK'X6I?@=_16!8^-K>YX8E#_
M +8_J,BMN&X6<;D(8>JD$?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