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Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2019
Accounting Policies [Abstract] |
Schedule of reconciliation of cash and cash equivalents | The following is a reconciliation of cash and cash equivalents on the consolidated balance sheets to total cash, cash equivalents and restricted cash on the consolidated statements of cash flows as of December 31, 2019, 2018 and 2017:
In millions | 2019 |  | 2018 |  | 2017
Cash and cash equivalents | $ | 5,683 |  |  | $ | 4,059 |  |  | $ | 1,696 |
Restricted cash (included in other current assets) | — |  |  | 6 |  |  | 14 |
Restricted cash (included in other assets) | 271 |  |  | 230 |  |  | 190 |
Total cash, cash equivalents and restricted cash at the end of the period in the consolidated statements of cash flows | $ | 5,954 |  |  | $ | 4,295 |  |  | $ | 1,900 |
Schedule of accounts receivable, net | Accounts receivable, net is composed of the following at December 31, 2019 and 2018:
In millions | 2019 |  | 2018
Trade receivables | $ | 6,717 |  |  | $ | 6,497 |
Vendor and manufacturer receivables | 7,856 |  |  | 7,315 |
Premium receivables | 2,663 |  |  | 2,259 |
Other receivables | 2,381 |  |  | 1,560 |
Total accounts receivable, net | $ | 19,617 |  |  | $ | 17,631 |
Schedule of allowance for doubtful accounts | The activity in the allowance for doubtful accounts receivable for the years ended December 31, 2019, 2018 and 2017 is as follows:
In millions | 2019 |  | 2018 |  | 2017
Beginning balance | $ | 287 |  |  | $ | 162 |  |  | $ | 158 |
Additions charged to bad debt expense | 111 |  |  | 162 |  |  | 139 |
Write-offs charged to allowance | (79 | ) |  | (37 | ) |  | (135 | )
Ending balance | $ | 319 |  |  | $ | 287 |  |  | $ | 162 |
Schedule of property and equipment | Property and equipment consists of the following at December 31, 2019 and 2018:
In millions | 2019 |  | 2018
Land | $ | 1,981 |  |  | $ | 1,872 |
Building and improvements | 4,068 |  |  | 3,785 |
Fixtures and equipment | 13,807 |  |  | 13,028 |
Leasehold improvements | 5,611 |  |  | 5,384 |
Software | 3,467 |  |  | 2,800 |
Total property and equipment | 28,934 |  |  | 26,869 |
Accumulated depreciation and amortization | (16,890 | ) |  | (15,520 | )
Property and equipment, net | $ | 12,044 |  |  | $ | 11,349 |
Schedule of disaggregation of revenue | The following table disaggregates the Company’s revenue by major source in each segment for the years ended December 31, 2019 and 2018:
In millions | Pharmacy Services |  | Retail/ LTC |  | Health Care Benefits |  | Corporate/ Other |  | Intersegment Eliminations |  | Consolidated Totals
2019 |  |  |  |  |  |  |  |  |  |  |
Major goods/services lines: |  |  |  |  |  |  |  |  |  |  |
Pharmacy | $ | 140,896 |  |  | $ | 66,442 |  |  | $ | — |  |  | $ | — |  |  | $ | (41,439 | ) |  | $ | 165,899 |
Front Store | — |  |  | 19,422 |  |  | — |  |  | — |  |  | — |  |  | 19,422 |
Premiums | — |  |  | — |  |  | 63,031 |  |  | 91 |  |  | — |  |  | 63,122 |
Net investment income | — |  |  | — |  |  | 599 |  |  | 412 |  |  | — |  |  | 1,011 |
Other | 595 |  |  | 744 |  |  | 5,974 |  |  | 9 |  |  | — |  |  | 7,322 |
Total | $ | 141,491 |  |  | $ | 86,608 |  |  | $ | 69,604 |  |  | $ | 512 |  |  | $ | (41,439 | ) |  | $ | 256,776 |
Pharmacy Services distribution channel: |  |  |  |  |  |  |  |  |  |
Pharmacy network (1) | $ | 88,755 |  |  |  |  |  |  |  |  |  |  |
Mail choice (2) | 52,141 |  |  |  |  |  |  |  |  |  |  |
Other | 595 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 141,491 |  |  |  |  |  |  |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |
Major goods/services lines: |  |  |  |  |  |  |  |  |  |  |
Pharmacy | $ | 134,216 |  |  | $ | 64,179 |  |  | $ | 164 |  |  | $ | — |  |  | $ | (33,714 | ) |  | $ | 164,845 |
Front Store | — |  |  | 19,055 |  |  | — |  |  | — |  |  | — |  |  | 19,055 |
Premiums | — |  |  | — |  |  | 8,180 |  |  | 4 |  |  | — |  |  | 8,184 |
Net investment income | — |  |  | — |  |  | 58 |  |  | 602 |  |  | — |  |  | 660 |
Other | 520 |  |  | 755 |  |  | 560 |  |  | — |  |  | — |  |  | 1,835 |
Total | $ | 134,736 |  |  | $ | 83,989 |  |  | $ | 8,962 |  |  | $ | 606 |  |  | $ | (33,714 | ) |  | $ | 194,579 |
Pharmacy Services distribution channel: |  |  |  |  |  |  |  |  |  |
Pharmacy network (1) (3) | $ | 87,167 |  |  |  |  |  |  |  |  |  |  |
Mail choice (2) (3) | 47,049 |  |  |  |  |  |  |  |  |  |  |
Other | 520 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 134,736 |  |  |  |  |  |  |  |  |  |  |
_____________________________________________
(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. Maintenance choice 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.
(2) | Pharmacy Services mail choice is defined as claims filled at a Pharmacy Services mail order facility, which includes specialty mail claims inclusive of Specialty Connect® claims picked up at a retail pharmacy, as well as prescriptions filled at the Company’s retail pharmacies under the Maintenance Choice program.
(3) Certain prior year amounts have been reclassified for consistency with the current period presentation.
Schedule of contract with customer assets and liabilities | The following table provides information about receivables and contract liabilities from contracts with customers as of December 31, 2019 and 2018:
In millions | 2019 |  | 2018
Trade receivables (included in accounts receivable, net) | $ | 6,717 |  |  | $ | 6,497 |
Contract liabilities (included in accrued expenses) | 73 |  |  | 67 |
During the year ended December 31, 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 | 2019 |  | 2018
Balance at December 31, 2018 | $ | 67 |  |  | $ | 53 |
Adoption of ASU 2014-09 | — |  |  | 17 |
Rewards earnings and gift card issuances | 365 |  |  | 332 |
Redemption and breakage | (359 | ) |  | (335 | )
Balance at December 31, 2019 | $ | 73 |  |  | $ | 67 |
Schedule of variable interest entities | The total amount of other variable interest holder VIE assets included in long-term investments on the consolidated balance sheets at December 31, 2019 and 2018 was as follows:
In millions | 2019 |  | 2018
Hedge fund investments | $ | 271 |  |  | $ | 270 |
Private equity investments | 538 |  |  | 524 |
Real estate partnerships | 212 |  |  | 275 |
Total | $ | 1,021 |  |  | $ | 1,069 |
Schedule of discontinued operations | Below is a summary of the results of discontinued operations for the year ended December 31, 2017:
In millions | 2017
Loss from discontinued operations | $ | (13 | )
Income tax benefit | 5 |
Loss from discontinued operations, net of tax | $ | (8 | )
Schedule of new accounting pronouncements | As a result of applying the new lease accounting standard using a modified retrospective method, the following adjustments were made to accounts on the 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
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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