
	Three Months Ended September 30, 2017
	Pharmacy						Intersegment		Consolidated
In millions	Services		Retail/LTC		Corporate		Eliminations		Totals
Cost of revenues, as previously reported	$	31,251	$	13,908			$	(6,104)	$	39,055
Adjustments		13		(4)				—		9
Cost of revenues, as adjusted	$	31,264	$	13,904			$	(6,104)	$	39,064

Gross profit, as previously reported	$	1,645	$	5,685			$	(204)	$	7,126
Adjustments		(13)		4				—		(9)
Gross profit, as adjusted	$	1,632	$	5,689			$	(204)	$	7,117

Operating expenses, as previously reported	$	292	$	4,132	$	220	$	(17)	$	4,627
Adjustments		13		(24)		2		—		(9)
Operating expenses, as adjusted	$	305	$	4,108	$	222	$	(17)	$	4,618

Operating profit (loss), as previously reported	$	1,353	$	1,553	$	(220)	$	(187)	$	2,499
Adjustments		(26)		28		(2)		—		—
Operating profit (loss), as adjusted	$	1,327	$	1,581	$	(222)	$	(187)	$	2,499


	Nine Months Ended September 30, 2017
	Pharmacy						Intersegment		Consolidated
In millions	Services		Retail/LTC		Corporate		Eliminations		Totals
Cost of revenues, as previously reported	$	92,234	$	41,452			$	(17,947)	$	115,739
Adjustments		39		(12)				—		27
Cost of revenues, as adjusted	$	92,273	$	41,440			$	(17,947)	$	115,766

Gross profit, as previously reported	$	4,210	$	17,036			$	(605)	$	20,641
Adjustments		(39)		12				—		(27)
Gross profit, as adjusted	$	4,171	$	17,048			$	(605)	$	20,614

Operating expenses, as previously reported	$	938	$	12,661	$	686	$	(53)	$	14,232
Adjustments		37		(55)		(9)		—		(27)
Operating expenses, as adjusted	$	975	$	12,606	$	677	$	(53)	$	14,205

Operating profit (loss), as previously reported	$	3,272	$	4,375	$	(686)	$	(552)	$	6,409
Adjustments		(76)		67		9		—		—
Operating profit (loss), as adjusted	$	3,196	$	4,442	$	(677)	$	(552)	$	6,409

The following is a reconciliation of the Company’s segments to the accompanying condensed consolidated financial statements:


	Pharmacy						Intersegment		Consolidated
In millions	Services(1)		Retail/LTC		Corporate		Eliminations(2)		Totals
Three Months Ended
September 30, 2018:
Net revenues	$	33,763	$	20,856	$	—	$	(7,350)	$	47,269
Gross profit		1,737		5,814		—		(223)		7,328
Operating profit (loss) (4)(6)		1,345		1,491		(287)		(196)		2,353
September 30, 2017:
Net revenues		32,896		19,593		—		(6,308)		46,181
Gross profit (5)		1,632		5,689		—		(204)		7,117
Operating profit (loss) (3)(4)(6)		1,327		1,581		(222)		(187)		2,499
Nine Months Ended
September 30, 2018:
Net revenues	$	99,228	$	61,960	$	—	$	(21,518)	$	139,670
Gross profit		4,370		17,642		—		(624)		21,388
Operating profit (loss) (3)(4)(6)		3,194		890		(814)		(558)		2,712
September 30, 2017:
Net revenues		96,444		58,488		—		(18,552)		136,380
Gross profit (5)		4,171		17,048		—		(605)		20,614
Operating profit (loss) (3)(4)(6)		3,196		4,442		(677)		(552)		6,409

(1)

Net revenues of the Pharmacy Services Segment include approximately $2.7 billion and $2.6 billion of retail co‑payments for the three months ended September 30, 2018 and 2017, respectively, as well as $8.8 billion and $8.4 billion of retail co‑payments for the nine months ended September 30, 2018 and 2017, 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 stand-alone basis.

(3)

The Retail/LTC Segment operating profit for the nine months ended September 30, 2018 and 2017 include goodwill impairment charges of $3.9 billion related to the LTC reporting unit and $135 million related to the RxCrossroads reporting unit, respectively. See “Note 3 – Goodwill and Intangible Assets” to the condensed consolidated financial statements. The Retail/LTC Segment operating profit for the nine months ended September 30, 2018 also includes an $86 million loss on the divestiture of the RxCrossroads subsidiary. The Retail/LTC Segment operating profit for the three and nine months ended September 30, 2017 also includes $6 million and $211 million, respectively, of charges associated with store closures.

(4)

The Corporate Segment operating loss for the three and nine months ended September 30, 2018 include $66 million and $145 million, respectively, in acquisition-related transaction and integration costs related to the proposed acquisition of Aetna. The Corporate Segment operating loss for the three and nine months ended September 30, 2017 include $3 million reduction in integration costs for a change in estimate related to the acquisition of Omnicare.

(5)

The Retail/LTC Segment gross profit for the three and nine months ended September 30, 2017 include $2 million and $7 million, respectively, of acquisition-related integration costs related to the acquisition of Omnicare.

(6)

The Retail/LTC Segment operating profit for the three months ended September 30, 2018 and 2017 include $4 million and $9 million, respectively, of acquisition-related integration costs. The Retail/LTC Segment operating profit for the nine months ended September 30, 2018 and 2017 include $7 million and $34 million, respectively, of acquisition-related integration costs. The integration costs are related to the acquisition of Omnicare.