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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of reconciliation of cash and cash equivalents

The following is a reconciliation of cash and cash equivalents on the consolidated balance sheets to total cash, cash equivalents and restricted cash on the consolidated statements of cash flows as of December 31, 2022, 2021 and 2020:


In millions	2022		2021		2020
Cash and cash equivalents	$	12,945	$	9,408	$	7,854
Restricted cash (included in other current assets)	144		3,065		2,913
Restricted cash (included in other assets)	216		218		276
Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$	13,305	$	12,691	$	11,043

Schedule of accounts receivable, net

Accounts receivable, net was composed of the following at December 31, 2022 and 2021:


In millions	2022		2021
Trade receivables	$	8,983	$	7,932
Vendor and manufacturer receivables	12,395		10,573
Premium receivables	2,676		2,537
Other receivables	3,449		3,389
Total accounts receivable, net (1)	$	27,503	$	24,431

_____________________________________

(1)Includes accounts receivable of $227 million which have been accounted for as assets held for sale and are included in assets held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.

Schedule of property and equipment

Property and equipment consisted of the following at December 31, 2022 and 2021:


In millions	2022		2021
Land	$	1,996	$	2,038
Building and improvements	4,545		4,225
Fixtures and equipment	12,978		13,619
Leasehold improvements	6,238		6,242
Software	8,843		7,426
Total property and equipment	34,600		33,550
Accumulated depreciation and amortization	(21,483)		(20,654)
Property and equipment, net (1)	$	13,117	$	12,896

_____________________________________

(1)Includes property and equipment of $244 million which have been accounted for as assets held for sale and are included in assets held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.

Schedule of disaggregation of revenue

The following table disaggregates the Company’s revenue by major source in each segment for the years ended December 31, 2022, 2021 and 2020:


In millions	Health Care Benefits		Pharmacy Services		Retail/ LTC		Corporate/ Other		Intersegment Eliminations		Consolidated Totals
2022
Major goods/services lines:
Pharmacy	$	—	$	168,134	$	82,010	$	—	$	(45,023)	$	205,121
Front Store	—		—		22,780		—		—		22,780
Premiums	85,274		—		—		56		—		85,330
Net investment income (loss)	476		—		(44)		406		—		838
Other	5,659		1,102		1,848		68		(279)		8,398
Total	$	91,409	$	169,236	$	106,594	$	530	$	(45,302)	$	322,467

Pharmacy Services distribution channel:
Pharmacy network (1)			$	97,668
Mail choice (2)			70,466
Other			1,102
Total			$	169,236

2021
Major goods/services lines:
Pharmacy	$	—	$	152,262	$	76,121	$	—	$	(43,765)	$	184,618
Front Store	—		—		21,315		—		—		21,315
Premiums	76,064		—		—		68		—		76,132
Net investment income	586		—		17		596		—		1,199
Other	5,536		760		2,652		57		(158)		8,847
Total	$	82,186	$	153,022	$	100,105	$	721	$	(43,923)	$	292,111

Pharmacy Services distribution channel:
Pharmacy network (1)			$	91,715
Mail choice (2)			60,547
Other			760
Total			$	153,022

2020
Major goods/services lines:
Pharmacy	$	—	$	141,116	$	70,176	$	—	$	(40,003)	$	171,289
Front Store	—		—		19,655		—		—		19,655
Premiums	69,301		—		—		63		—		69,364
Net investment income	483		—		—		315		—		798
Other	5,683		822		1,367		48		(320)		7,600
Total	$	75,467	$	141,938	$	91,198	$	426	$	(40,323)	$	268,706

Pharmacy Services distribution channel:
Pharmacy network (1)			$	85,045
Mail choice (2)			56,071
Other			822
Total			$	141,938

_____________________________________________

(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 as of December 31, 2022 and 2021:


In millions	2022		2021
Trade receivables (included in accounts receivable, net)	$	8,983	$	7,932
Contract liabilities (included in accrued expenses)	71		87

During the years ended December 31, 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:


In millions	2022		2021
Contract liabilities, beginning of period	$	87	$	71

Rewards earnings and gift card issuances	340		387
Redemption and breakage	(356)		(371)
Contract liabilities, end of period	$	71	$	87

Schedule of variable interest entities

Other variable interest holder VIE assets included in long-term investments on the consolidated balance sheets at December 31, 2022 and 2021 were as follows:


In millions	2022		2021
Hedge fund investments	$	589	$	463
Private equity investments	707		601
Real estate partnerships	241		225
Total	$	1,537	$	1,289

Schedule of discontinued operations

Below is a summary of the results of discontinued operations for the year ended December 31, 2020.


In millions	2020
Loss from discontinued operations	$	(12)
Income tax benefit	3
Loss from discontinued operations, net of tax	$	(9)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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