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Segment Reporting (Tables) | 6 Months Ended
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Jun. 30, 2018
Segment Reporting |
Reconciliation of the Company's business segments to the consolidated financial statements |
|  | Three Months Ended June 30, 2017
|  | Pharmacy |  |  |  |  |  |  |  | Intersegment |  | Consolidated
In millions |  | Services |  | Retail/LTC |  | Corporate |  | Eliminations |  | Totals
Cost of revenues, as previously reported |  | $ | 30,856 |  | $ | 13,879 |  |  |  |  | $ | (5,985) |  | $ | 38,750
Adjustments |  |  | 12 |  |  | (3) |  |  |  |  |  | — |  |  | 9
Cost of revenues, as adjusted |  | $ | 30,868 |  | $ | 13,876 |  |  |  |  | $ | (5,985) |  | $ | 38,759
Gross profit, as previously reported |  | $ | 1,469 |  | $ | 5,675 |  |  |  |  | $ | (209) |  | $ | 6,935
Adjustments |  |  | (12) |  |  | 3 |  |  |  |  |  | — |  |  | (9)
Gross profit, as adjusted |  | $ | 1,457 |  | $ | 5,678 |  |  |  |  | $ | (209) |  | $ | 6,926
Operating expenses, as previously reported |  | $ | 334 |  | $ | 4,264 |  | $ | 240 |  | $ | (20) |  | $ | 4,818
Adjustments |  |  | 11 |  |  | (14) |  |  | (6) |  |  | — |  |  | (9)
Operating expenses, as adjusted |  | $ | 345 |  | $ | 4,250 |  | $ | 234 |  | $ | (20) |  | $ | 4,809
Operating profit (loss), as previously reported |  | $ | 1,135 |  | $ | 1,411 |  | $ | (240) |  | $ | (189) |  | $ | 2,117
Adjustments |  |  | (23) |  |  | 17 |  |  | 6 |  |  | — |  |  | —
Operating profit (loss), as adjusted |  | $ | 1,112 |  | $ | 1,428 |  | $ | (234) |  | $ | (189) |  | $ | 2,117
|  | Six Months Ended June 30, 2017
|  | Pharmacy |  |  |  |  |  |  |  | Intersegment |  | Consolidated
In millions |  | Services |  | Retail/LTC |  | Corporate |  | Eliminations |  | Totals
Cost of revenues, as previously reported |  | $ | 60,983 |  | $ | 27,544 |  |  |  |  | $ | (11,843) |  | $ | 76,684
Adjustments |  |  | 26 |  |  | (8) |  |  |  |  |  | — |  |  | 18
Cost of revenues, as adjusted |  | $ | 61,009 |  | $ | 27,536 |  |  |  |  | $ | (11,843) |  | $ | 76,702
Gross profit, as previously reported |  | $ | 2,565 |  | $ | 11,351 |  |  |  |  | $ | (401) |  | $ | 13,515
Adjustments |  |  | (26) |  |  | 8 |  |  |  |  |  | — |  |  | (18)
Gross profit, as adjusted |  | $ | 2,539 |  | $ | 11,359 |  |  |  |  | $ | (401) |  | $ | 13,497
Operating expenses, as previously reported |  | $ | 646 |  | $ | 8,529 |  | $ | 466 |  | $ | (36) |  | $ | 9,605
Adjustments |  |  | 24 |  |  | (31) |  |  | (11) |  |  | — |  |  | (18)
Operating expenses, as adjusted |  | $ | 670 |  | $ | 8,498 |  | $ | 455 |  | $ | (36) |  | $ | 9,587
Operating profit (loss), as previously reported |  | $ | 1,919 |  | $ | 2,822 |  | $ | (466) |  | $ | (365) |  | $ | 3,910
Adjustments |  |  | (50) |  |  | 39 |  |  | 11 |  |  | — |  |  | —
Operating profit (loss), as adjusted |  | $ | 1,869 |  | $ | 2,861 |  | $ | (455) |  | $ | (365) |  | $ | 3,910
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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues |  | $ | 33,247 |  | $ | 20,672 |  | $ | — |  | $ | (7,211) |  | $ | 46,708
Gross profit |  |  | 1,495 |  |  | 5,912 |  |  | — |  |  | (206) |  |  | 7,201
Operating profit (loss) (3)(4) |  |  | 1,088 |  |  | (2,225) |  |  | (263) |  |  | (187) |  |  | (1,587)
June 30, 2017: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues |  |  | 32,325 |  |  | 19,554 |  |  | — |  |  | (6,194) |  |  | 45,685
Gross profit (5) |  |  | 1,457 |  |  | 5,678 |  |  | — |  |  | (209) |  |  | 6,926
Operating profit (loss) (3)(6) |  |  | 1,112 |  |  | 1,428 |  |  | (234) |  |  | (189) |  |  | 2,117
Six Months Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues |  | $ | 65,465 |  | $ | 41,104 |  | $ | — |  | $ | (14,168) |  | $ | 92,401
Gross profit |  |  | 2,633 |  |  | 11,828 |  |  | — |  |  | (401) |  |  | 14,060
Operating profit (loss) (3)(4)(6) |  |  | 1,849 |  |  | (601) |  |  | (527) |  |  | (362) |  |  | 359
June 30, 2017: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenues |  |  | 63,548 |  |  | 38,895 |  |  | — |  |  | (12,244) |  |  | 90,199
Gross profit (5) |  |  | 2,539 |  |  | 11,359 |  |  | — |  |  | (401) |  |  | 13,497
Operating profit (loss) (3)(6) |  |  | 1,869 |  |  | 2,861 |  |  | (455) |  |  | (365) |  |  | 3,910
| (1) |  | Net revenues of the Pharmacy Services Segment include approximately $2.8 billion and $2.7 billion of retail co‑payments for the three months ended June 30, 2018 and 2017, respectively, as well as $6.1 billion and $5.8 billion of retail co‑payments for the six months ended June 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 (loss) for the three and six months ended June 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” to the condensed consolidated financial statements. The Retail/LTC Segment operating loss for the six months ended June 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 six months ended June 30, 2017 also includes $6 million and $205 million, respectively, of charges associated with store closures.
| (4) |  | The Corporate Segment operating loss for the three and six months ended June 30, 2018 include $39 million and $79 million, respectively, in acquisition-related transaction and integration costs related to the proposed Aetna acquisition.
| (5) |  | The Retail/LTC Segment gross profit for the three and six months ended June 30, 2017 each include $5 million of acquisition-related integration costs related to the acquisition of Omnicare.
The Retail/LTC Segment operating profit (loss) for the six months ended June 30, 2018 and 2017 include $3 million and $25 million, respectively, of acquisition-related integration costs. The Retail/LTC Segment operating profit for the three months ended June 30, 2017 includes $10 million of acquisition-related integration costs. The integration costs are related to the acquisition of Omnicare.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
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