Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2011

Segment Reporting

Reconciliation of the Company's business segments to the condensed consolidated financial statements

In millions	Pharmacy Services Segment(1)		Retail Pharmacy Segment		Corporate Segment		Intersegment Eliminations(2)		Consolidated Totals
Three Months Ended
September 30, 2011:
Net revenues	$	14,798	$	14,693	$	¾	$	(2,817)	$	26,674
Gross profit	914		4,306		¾		(42)		5,178
Operating profit (loss)	657		1,123		(154)		(42)		1,584
September 30, 2010(3):
Net revenues	11,762		14,159		¾		(2,210)		23,711
Gross profit	873		4,181		¾		(39)		5,015
Operating profit (loss)	646		1,039		(168)		(39)		1,478
Nine Months Ended
September 30, 2011:
Net revenues	43,000		44,106		¾		(8,323)		78,783
Gross profit	2,263		12,860		¾		(117)		15,006
Operating profit (loss)	1,496		3,459		(465)		(117)		4,373
September 30, 2010(3):
Net revenues	35,151		42,448		¾		(6,410)		71,189
Gross profit	2,460		12,397		¾		(92)		14,765
Operating profit (loss)	1,763		3,164		(459)		(92)		4,376
Total assets:
September 30, 2011	35,817		28,774		1,203		(543)		65,251
December 31, 2010	32,254		28,927		1,439		(451)		62,169
Goodwill:
September 30, 2011	19,705		6,801		¾		¾		26,506
December 31, 2010	18,868		6,801		¾		¾		25,669

(1)Net revenues of the Pharmacy Services segment include approximately $1.9 billion and $1.6 billion of retail co-payments for the three months ended September 30, 2011 and 2010, respectively, as well as $6.0 billion and $5.0 billion of retail co-payments for the nine months ended September 30, 2011 and 2010, respectively.

(2)Intersegment eliminations relate to two types of transactions: (i) Intersegment revenues that occur when Pharmacy Services segment customers use Retail Pharmacy segment stores to purchase covered products. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue on a standalone basis, and (ii) Intersegment revenues, gross profit and operating profit that occur when Pharmacy Services segment customers, through the Company’s intersegment activities (such as the Maintenance Choice program), elect to pick-up their maintenance prescriptions at Retail Pharmacy segment stores instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue, gross profit and operating profit on a standalone basis. As a result, both the Pharmacy Services and the Retail Pharmacy segments include the following results associated with this activity: net revenues of $657 million and $489 million for the three months ended September 30, 2011 and 2010, respectively, and $1.8 billion and $1.3 billion for the nine months ended September 30, 2011 and 2010, respectively; gross profit and operating profit of $42 million and $39 million for the three months ended September 30, 2011 and 2010, respectively, and $117 million and $92 million for the nine months ended September 30, 2011 and 2010, respectively.

(3)The results of the Pharmacy Services segment for the three and nine months ended September 30, 2010 have been revised to reflect the results of TheraCom as discontinued operations. See Note 3 to the condensed consolidated financial statements.