Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting

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

In millions	Pharmacy Services Segment(1)(3)		Retail Pharmacy Segment		Corporate Segment		Intersegment Eliminations(2)		Consolidated Totals
Three Months Ended
June 30, 2012: Net revenues	$	18,423	$	15,846	$	¾	$	(3,555)	$	30,714
Gross profit	777		4,769		¾		(97)		5,449
Operating profit (loss)	511		1,469		(175)		(97)		1,708
June 30, 2011: Net revenues	14,374		14,826		¾		(2,786)		26,414
Gross profit	720		4,408		¾		(42)		5,086
Operating profit (loss)	448		1,240		(162)		(42)		1,484
Six Months Ended
June 30, 2012: Net revenues	36,722		31,869		¾		(7,079)		61,512
Gross profit	1,393		9,341		¾		(172)		10,562
Operating profit (loss)	860		2,766		(343)		(172)		3,111
June 30, 2011: Net revenues	28,203		29,413		¾		(5,507)		52,109
Gross profit	1,350		8,555		¾		(77)		9,828
Operating profit (loss)	839		2,336		(309)		(77)		2,789
Total assets:
June 30, 2012	36,039		28,951		1,253		(654)		65,589
December 31, 2011	35,704		28,323		1,121		(605)		64,543
Goodwill:
June 30, 2012	19,624		6,801		¾		¾		26,425
December 31, 2011	19,657		6,801		¾		¾		25,458

(1)Net revenues of the Pharmacy Services Segment include approximately $2.1 billion and $1.9 billion of retail co-payments for the three months ended June 30, 2012 and 2011, respectively, as well as $4.4 billion and $4.1 billion of retail co-payments for the six months ended June 30, 2012 and 2011, 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. Beginning in the fourth quarter of 2011, the Maintenance Choice eliminations reflect all discounts available for the purchase of mail order prescription drugs. The following amounts are eliminated in consolidation in connection with the item (ii) intersegment activity: net revenues of $840 million and $626 million for the three months ended June 30, 2012 and 2011, respectively, and $1.6 billion and $1.2 billion for the six months ended June 30, 2012 and 2011, respectively; gross profit and operating profit of $97 million and $42 million for the three months ended June 30, 2012 and 2011, respectively, and $172 million and $77 million for the six months ended June 30, 2012 and 2011, respectively.

(3)The results of the Pharmacy Services Segment for the three and six months ended June 30, 2011 have been revised to reflect the results of TheraCom as discontinued operations. See Note 6 to the condensed consolidated financial statements.