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v3.19.3

Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 2019
Accounting Policies [Abstract] |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following represents a reconciliation of cash and cash equivalents in the unaudited condensed consolidated balance sheets to total cash, cash equivalents and restricted cash in the unaudited condensed consolidated statements of cash flows:
In millions | September 30, 2019 |  | December 31, 2018
Cash and cash equivalents | $ | 5,193 |  |  | $ | 4,059 |
Restricted cash (included in other current assets) | 6 |  |  | 6 |
Restricted cash (included in other assets) | 270 |  |  | 230 |
Total cash, cash equivalents and restricted cash in the statements of cash flows | $ | 5,469 |  |  | $ | 4,295 |
Accounts Receivable, Net | Accounts receivable, net is composed of the following:
In millions | September 30, 2019 |  | December 31, 2018
Trade receivables | $ | 6,413 |  |  | $ | 6,497 |
Vendor and manufacturer receivables | 9,029 |  |  | 7,315 |
Premium receivables | 2,340 |  |  | 2,259 |
Other receivables | 2,007 |  |  | 1,560 |
Total accounts receivable, net | $ | 19,789 |  |  | $ | 17,631 |
Disaggregation of Revenue | The following tables disaggregate the Company’s revenue by major source in each segment for the three and nine months ended September 30, 2019 and 2018:
In millions | Pharmacy Services |  | Retail/ LTC |  | Health Care Benefits |  | Corporate/ Other |  | Intersegment Eliminations |  | Consolidated Totals
Three Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |  |
Major goods/services lines: |  |  |  |  |  |  |  |  |  |  |
Pharmacy | $ | 35,872 |  |  | $ | 16,687 |  |  | $ | — |  |  | $ | — |  |  | $ | (10,007 | ) |  | $ | 42,552 |
Front Store | — |  |  | 4,614 |  |  | — |  |  | — |  |  | — |  |  | 4,614 |
Premiums | — |  |  | — |  |  | 15,507 |  |  | 32 |  |  | — |  |  | 15,539 |
Net investment income | — |  |  | — |  |  | 146 |  |  | 117 |  |  | — |  |  | 263 |
Other | 146 |  |  | 165 |  |  | 1,528 |  |  | 3 |  |  | — |  |  | 1,842 |
Total | $ | 36,018 |  |  | $ | 21,466 |  |  | $ | 17,181 |  |  | $ | 152 |  |  | $ | (10,007 | ) |  | $ | 64,810 |
Pharmacy Services distribution channel: |  |  |  |  |  |  |  |  |  |
Pharmacy network (1) | $ | 22,469 |  |  |  |  |  |  |  |  |  |  |
Mail choice (2) | 13,403 |  |  |  |  |  |  |  |  |  |  |
Other | 146 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 36,018 |  |  |  |  |  |  |  |  |  |  |
Three Months Ended September 30, 2018 |  |  |  |  |  |  |  |  |  |
Major goods/services lines: |  |  |  |  |  |  |  |  |  |  |
Pharmacy | $ | 33,733 |  |  | $ | 16,123 |  |  | $ | — |  |  | $ | — |  |  | $ | (8,088 | ) |  | $ | 41,768 |
Front Store | — |  |  | 4,557 |  |  | — |  |  | — |  |  | — |  |  | 4,557 |
Premiums | — |  |  | — |  |  | 627 |  |  | — |  |  | — |  |  | 627 |
Net investment income | — |  |  | — |  |  | 4 |  |  | 217 |  |  | — |  |  | 221 |
Other | 131 |  |  | 176 |  |  | 10 |  |  | — |  |  | — |  |  | 317 |
Total | $ | 33,864 |  |  | $ | 20,856 |  |  | $ | 641 |  |  | $ | 217 |  |  | $ | (8,088 | ) |  | $ | 47,490 |
Pharmacy Services distribution channel: |  |  |  |  |  |  |  |  |  |
Pharmacy network (1) | $ | 21,921 |  |  |  |  |  |  |  |  |  |  |
Mail choice (2) | 11,812 |  |  |  |  |  |  |  |  |  |  |
Other | 131 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 33,864 |  |  |  |  |  |  |  |  |  |  |
_____________________________________________
(1) | Pharmacy Services pharmacy network is defined as claims filled at retail and specialty retail pharmacies, including the Company’s retail pharmacies and LTC pharmacies, but excluding Maintenance Choice® activity, which is included within the mail choice category.
(2) | Pharmacy Services mail choice is defined as claims filled at a Pharmacy Services mail facility, which includes specialty mail claims inclusive of Specialty Connect® claims picked up at a CVS Pharmacy retail store, as well as prescriptions filled at the Company’s retail pharmacies under the Maintenance Choice program, which permits eligible client plan members to fill their maintenance prescriptions through mail order delivery or at a CVS Pharmacy retail store for the same price as mail order.
In millions | Pharmacy Services |  | Retail/ LTC |  | Health Care Benefits |  | Corporate/ Other |  | Intersegment Eliminations |  | Consolidated Totals
Nine Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |  |
Major goods/services lines: |  |  |  |  |  |  |  |  |  |  |
Pharmacy | $ | 103,983 |  |  | $ | 49,197 |  |  | $ | — |  |  | $ | — |  |  | $ | (31,436 | ) |  | $ | 121,744 |
Front Store | — |  |  | 14,288 |  |  | — |  |  | — |  |  | — |  |  | 14,288 |
Premiums | — |  |  | — |  |  | 47,543 |  |  | 69 |  |  | — |  |  | 47,612 |
Net investment income | — |  |  | — |  |  | 458 |  |  | 347 |  |  | — |  |  | 805 |
Other | 435 |  |  | 543 |  |  | 4,453 |  |  | 7 |  |  | — |  |  | 5,438 |
Total | $ | 104,418 |  |  | $ | 64,028 |  |  | $ | 52,454 |  |  | $ | 423 |  |  | $ | (31,436 | ) |  | $ | 189,887 |
Pharmacy Services distribution channel: |  |  |  |  |  |  |  |  |  |
Pharmacy network (1) | $ | 66,071 |  |  |  |  |  |  |  |  |  |  |
Mail choice (2) | 37,912 |  |  |  |  |  |  |  |  |  |  |
Other | 435 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 104,418 |  |  |  |  |  |  |  |  |  |  |
Nine Months Ended September 30, 2018 |  |  |  |  |  |  |  |  |  |
Major goods/services lines: |  |  |  |  |  |  |  |  |  |  |
Pharmacy | $ | 99,432 |  |  | $ | 47,428 |  |  | $ | — |  |  | $ | — |  |  | $ | (24,840 | ) |  | $ | 122,020 |
Front Store | — |  |  | 13,990 |  |  | — |  |  | — |  |  | — |  |  | 13,990 |
Premiums | — |  |  | — |  |  | 2,684 |  |  | — |  |  | — |  |  | 2,684 |
Net investment income | — |  |  | — |  |  | 10 |  |  | 475 |  |  | — |  |  | 485 |
Other | 405 |  |  | 542 |  |  | 29 |  |  | — |  |  | — |  |  | 976 |
Total | $ | 99,837 |  |  | $ | 61,960 |  |  | $ | 2,723 |  |  | $ | 475 |  |  | $ | (24,840 | ) |  | $ | 140,155 |
Pharmacy Services distribution channel: |  |  |  |  |  |  |  |  |  |
Pharmacy network (1) | $ | 64,625 |  |  |  |  |  |  |  |  |  |  |
Mail choice (2) | 34,807 |  |  |  |  |  |  |  |  |  |  |
Other | 405 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 99,837 |  |  |  |  |  |  |  |  |  |  |
_____________________________________________
(1) | Pharmacy Services pharmacy network is defined as claims filled at retail and specialty retail pharmacies, including the Company’s retail pharmacies and LTC pharmacies, but excluding Maintenance Choice® activity, which is included within the mail choice category.
(2) Pharmacy Services mail choice is defined as claims filled at a Pharmacy Services mail facility, which includes specialty mail claims inclusive of Specialty Connect® claims picked up at a CVS Pharmacy retail store, as well as prescriptions filled at the Company’s retail pharmacies under the Maintenance Choice program, which permits eligible client plan members to fill their maintenance prescriptions through mail order delivery or at a CVS Pharmacy retail store for the same price as mail order.
Contracts With Customers, Assets and Liabilities | The following table provides information about receivables and contract liabilities from contracts with customers:
In millions | September 30, 2019 |  | December 31, 2018
Trade receivables (included in accounts receivable, net) | $ | 6,413 |  |  | $ | 6,497 |
Contract liabilities (included in accrued expenses) | 72 |  |  | 67 |
During the nine months ended September 30, 2019, the contract liabilities balance includes increases related to customers’ earnings in ExtraBucks Rewards or issuances of Company gift cards and decreases for revenues recognized during the period as a result of the redemption of ExtraBucks Rewards or Company gift cards and breakage of Company gift cards. Below is a summary of such changes:
In millions |
Balance at December 31, 2018 | $ | 67 |
Loyalty program earnings and gift card issuances | 269 |
Redemption and breakage | (264 | )
Balance at September 30, 2019 | $ | 72 |
Impact of New Lease Standard on Balance Sheet Line Items | As a result of applying the new lease accounting standard using a modified retrospective method, the following adjustments were made to accounts on the condensed consolidated balance sheet as of January 1, 2019:
|  | Impact of Change in Accounting Policy
In millions |  | As Reported December 31, 2018 |  | Adjustments |  | As Adjusted January 1, 2019
Condensed Consolidated Balance Sheets: |  |  |  |  |  |
Other current assets |  | $ | 4,581 |  |  | $ | (48 | ) |  | $ | 4,533 |
Total current assets |  | 45,243 |  |  | (48 | ) |  | 45,195 |
Property and equipment, net |  | 11,349 |  |  | 11 |  |  | 11,360 |
Operating lease right-of-use assets |  | — |  |  | 20,987 |  |  | 20,987 |
Intangible assets, net |  | 36,524 |  |  | (217 | ) |  | 36,307 |
Other assets |  | 5,046 |  |  | (521 | ) |  | 4,525 |
Total assets |  | 196,456 |  |  | 20,212 |  |  | 216,668 |
Accrued expenses |  | 10,711 |  |  | (52 | ) |  | 10,659 |
Current portion of operating lease liabilities |  | — |  |  | 1,803 |  |  | 1,803 |
Current portion of long-term debt |  | 1,265 |  |  | 2 |  |  | 1,267 |
Total current liabilities |  | 44,009 |  |  | 1,753 |  |  | 45,762 |
Long-term operating lease liabilities |  | — |  |  | 18,832 |  |  | 18,832 |
Long-term debt |  | 71,444 |  |  | (96 | ) |  | 71,348 |
Deferred income taxes |  | 7,677 |  |  | 63 |  |  | 7,740 |
Other long-term liabilities |  | 2,780 |  |  | (518 | ) |  | 2,262 |
Total liabilities |  | 137,913 |  |  | 20,034 |  |  | 157,947 |
Retained earnings |  | 40,911 |  |  | 178 |  |  | 41,089 |
Total CVS Health shareholders’ equity |  | 58,225 |  |  | 178 |  |  | 58,403 |
Total shareholders’ equity |  | 58,543 |  |  | 178 |  |  | 58,721 |

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