XML 32 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Reporting | 3 Months Ended
--- | ---
Mar. 31, 2018
Segment Reporting |
Segment Reporting | Note 9 – Segment Reporting The Company has three reportable segments: Pharmacy Services, Retail/LTC and Corporate. As discussed in “Note 3- Goodwill”, during the three months ended March 31, 2018, the Company sold its RxC operations which were previously included in the Retail/LTC reportable segment. In conjunction with the Company’s implementation of a new enterprise resource planning system in the first quarter of 2018, the Company changed the manner in which certain shared functional costs are allocated to its reportable segments. Segment financial information for the three months ended March 31, 2017, has been retrospectively adjusted to reflect this change to the cost allocation methodology as shown below:
|  | Pharmacy |  |  |  |  |  |  |  |  |  |  |  |
|  | Services |  | Retail/LTC |  | Corporate |  | Intersegment |  | Consolidated
In millions |  | Segment |  | Segment |  | Segment |  | Eliminations |  | Totals
Cost of revenues, as previously reported |  | $ | 30,127 |  | $ | 13,665 |  |  |  |  | $ | (5,858) |  | $ | 37,934
Adjustments |  |  | 14 |  |  | (5) |  |  |  |  |  | — |  |  | 9
Cost of revenues, as adjusted |  | $ | 30,141 |  | $ | 13,660 |  |  |  |  | $ | (5,858) |  | $ | 37,943
Gross profit, as previously reported |  | $ | 1,096 |  | $ | 5,676 |  |  |  |  | $ | (192) |  | $ | 6,580
Adjustments |  |  | (14) |  |  | 5 |  |  |  |  |  | — |  |  | (9)
Gross profit, as adjusted |  | $ | 1,082 |  | $ | 5,681 |  |  |  |  | $ | (192) |  | $ | 6,571
Operating expenses, as previously reported |  | $ | 312 |  | $ | 4,265 |  | $ | 226 |  | $ | (16) |  | $ | 4,787
Adjustments |  |  | 13 |  |  | (17) |  |  | (5) |  |  | — |  |  | (9)
Operating expenses, as adjusted |  | $ | 325 |  | $ | 4,248 |  | $ | 221 |  | $ | (16) |  | $ | 4,778
Operating profit (loss), as previously reported |  | $ | 784 |  | $ | 1,411 |  | $ | (226) |  | $ | (176) |  | $ | 1,793
Adjustments |  |  | (27) |  |  | 22 |  |  | 5 |  |  | — |  |  | —
Operating profit (loss), as adjusted |  | $ | 757 |  | $ | 1,433 |  | $ | (221) |  | $ | (176) |  | $ | 1,793
The following is a reconciliation of the Company’s segments to the accompanying condensed consolidated financial statements:
|  | Pharmacy |  |  |  |  |  |  |  |  |  |  |  |
|  | Services |  | Retail/LTC |  | Corporate |  | Intersegment |  | Consolidated
In millions |  | Segment(1) |  | Segment |  | Segment |  | Eliminations(2) |  | Totals
Three Months Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues |  | $ | 32,218 |  | $ | 20,432 |  | $ | — |  | $ | (6,957) |  | $ | 45,693
Gross profit |  |  | 1,138 |  |  | 5,916 |  |  | — |  |  | (195) |  |  | 6,859
Operating profit (loss) (3)(4) |  |  | 761 |  |  | 1,624 |  |  | (264) |  |  | (175) |  |  | 1,946
March 31, 2017: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues |  |  | 31,223 |  |  | 19,341 |  |  | — |  |  | (6,050) |  |  | 44,514
Gross profit |  |  | 1,082 |  |  | 5,681 |  |  | — |  |  | (192) |  |  | 6,571
Operating profit (loss) (5) |  |  | 757 |  |  | 1,433 |  |  | (221) |  |  | (176) |  |  | 1,793
| (1) |  | Net revenues of the Pharmacy Services Segment include approximately $3.3 billion and $3.1 billion of retail co‑payments for the three months ended March 31, 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 standalone basis.
| (3) |  | The Retail/LTC Segment operating profit for the three months ended March 31, 2018 includes an $86 million loss on the divestiture of the RxCrossroads subsidiary (see “Note 3 – Goodwill” to the condensed consolidated financial statements) and $3 million of acquisition-related integration costs related to the acquisition of Omnicare.
| (4) |  | The Corporate Segment operating loss for the three months ended March 31, 2018 includes $40 million in acquisition-related transaction and integration costs related to the proposed Aetna acquisition.
| (5) |  | The Retail/LTC Segment operating profit for the three months ended March 31, 2017 includes a $199 million charge associated with store closures and $15 million of acquisition-related integration costs related to the acquisition of Omnicare.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration