Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2017

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

	Pharmacy
	Services		Retail/LTC		Corporate		Intersegment		Consolidated
In millions	Segment(1)		Segment		Segment		Eliminations(2)		Totals
Three Months Ended
March 31, 2017:
Net revenues	$	31,223	$	19,341	$	—	$	(6,050)	$	44,514
Gross profit		1,096		5,676		—		(192)		6,580
Operating profit (loss) (3)		784		1,411		(226)		(176)		1,793
March 31, 2016:
Net revenues		28,765		20,112		—		(5,662)		43,215
Gross profit (4)		1,102		5,830		—		(188)		6,744
Operating profit (loss) (4)(5)		784		1,784		(212)		(171)		2,185

(1)

Net revenues of the Pharmacy Services Segment include approximately $3.1 billion and $3.0 billion of Retail Co‑Payments for the three months ended March 31, 2017 and 2016, respectively.

(2)

Intersegment eliminations relate to intersegment revenue generating activities that occur between the Pharmacy Services Segment and the Retail/LTC Segment. These occur in the following ways: when members of Pharmacy Services Segment clients (“members”) fill prescriptions at the Company’s retail pharmacies to purchase covered products, when members enrolled in programs such as Maintenance Choice® elect to pick up maintenance prescriptions at one of the Company’s retail pharmacies instead of receiving them through the mail, or when members have prescriptions filled at the Company’s long-term care pharmacies. When these occur, both the Pharmacy Services and Retail/LTC segments record the revenues, gross profit and operating profit on a standalone basis.

(3)

The Retail/LTC Segment operating profit for the three months ended March 31, 2017 includes a $199 million charge associated with store closures (see “Note 4 – Store Closures” to the condensed consolidated financial statements) and $15 million of acquisition-related integration costs. The integration costs are related to the acquisition of Omnicare.

(4)

The Retail/LTC Segment gross profit and operating profit for the three months ended March 31, 2016 includes $4 million and $61 million, respectively, of acquisition-related integration costs. The integration costs are related to the acquisitions of Omnicare and the pharmacies and clinics of Target.

Amounts revised to reflect the adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which increased consolidated operating profit by $9 million (see “Note 1 – Accounting Policies” to the condensed consolidated financial statements).