XML 78 R21.htm IDEA: XBRL DOCUMENT
v3.20.1

Investments (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2020
Investments [Abstract] |
Total Investments | Total investments at March 31, 2020 and December 31, 2019 were as follows:
| March 31, 2020 |  | December 31, 2019
In millions | Current |  | Long-term |  | Total |  | Current |  | Long-term |  | Total
Debt securities available for sale | $ | 2,451 |  |  | $ | 14,266 |  |  | $ | 16,717 |  |  | $ | 2,251 |  |  | $ | 14,671 |  |  | $ | 16,922 |
Mortgage loans | 181 |  |  | 983 |  |  | 1,164 |  |  | 122 |  |  | 1,091 |  |  | 1,213 |
Other investments | — |  |  | 1,591 |  |  | 1,591 |  |  | — |  |  | 1,552 |  |  | 1,552 |
Total investments | $ | 2,632 |  |  | $ | 16,840 |  |  | $ | 19,472 |  |  | $ | 2,373 |  |  | $ | 17,314 |  |  | $ | 19,687 |
Debt Securities Available For Sale | Debt securities available for sale at March 31, 2020 and December 31, 2019 were as follows:
In millions | Gross Amortized Cost |  | Allowance for Credit Losses (1) |  | Net Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | $ | 1,853 |  |  | $ | — |  |  | $ | 1,853 |  |  | $ | 162 |  |  | $ | — |  |  | $ | 2,015 |
States, municipalities and political subdivisions | 2,182 |  |  | — |  |  | 2,182 |  |  | 91 |  |  | (7 | ) |  | 2,266 |
U.S. corporate securities | 7,128 |  |  | (28 | ) |  | 7,100 |  |  | 412 |  |  | (109 | ) |  | 7,403 |
Foreign securities | 2,202 |  |  | (18 | ) |  | 2,184 |  |  | 112 |  |  | (48 | ) |  | 2,248 |
Residential mortgage-backed securities | 574 |  |  | — |  |  | 574 |  |  | 38 |  |  | — |  |  | 612 |
Commercial mortgage-backed securities | 662 |  |  | — |  |  | 662 |  |  | 43 |  |  | (1 | ) |  | 704 |
Other asset-backed securities | 1,509 |  |  | (2 | ) |  | 1,507 |  |  | 7 |  |  | (80 | ) |  | 1,434 |
Redeemable preferred securities | 35 |  |  | — |  |  | 35 |  |  | 1 |  |  | (1 | ) |  | 35 |
Total debt securities (2) | $ | 16,145 |  |  | $ | (48 | ) |  | $ | 16,097 |  |  | $ | 866 |  |  | $ | (246 | ) |  | $ | 16,717 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | $ | 1,791 |  |  | $ | — |  |  | $ | 1,791 |  |  | $ | 62 |  |  | $ | (1 | ) |  | $ | 1,852 |
States, municipalities and political subdivisions | 2,202 |  |  | — |  |  | 2,202 |  |  | 108 |  |  | (1 | ) |  | 2,309 |
U.S. corporate securities | 7,167 |  |  | — |  |  | 7,167 |  |  | 573 |  |  | (3 | ) |  | 7,737 |
Foreign securities | 2,149 |  |  | — |  |  | 2,149 |  |  | 200 |  |  | (1 | ) |  | 2,348 |
Residential mortgage-backed securities | 508 |  |  | — |  |  | 508 |  |  | 25 |  |  | — |  |  | 533 |
Commercial mortgage-backed securities | 654 |  |  | — |  |  | 654 |  |  | 46 |  |  | — |  |  | 700 |
Other asset-backed securities | 1,397 |  |  | — |  |  | 1,397 |  |  | 13 |  |  | (5 | ) |  | 1,405 |
Redeemable preferred securities | 30 |  |  | — |  |  | 30 |  |  | 8 |  |  | — |  |  | 38 |
Total debt securities (2) | $ | 15,898 |  |  | $ | — |  |  | $ | 15,898 |  |  | $ | 1,035 |  |  | $ | (11 | ) |  | $ | 16,922 |
_____________________________________________
(1) | Effective January 1, 2020, the Company adopted the available-for-sale debt security impairment model under ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new impairment model requires the write down of amortized cost through an allowance for credit losses, rather than through a reduction of the amortized cost basis of the available-for-sale debt security. As the Company adopted the new available-for-sale debt security impairment model on a prospective basis, there was no allowance for credit losses recorded on available-for-sale debt securities at December 31, 2019.
(2) | Investment risks associated with the Company’s experience-rated products generally do not impact the Company’s consolidated operating results. At March 31, 2020, debt securities with a fair value of $917 million, gross unrealized capital gains of $65 million and gross unrealized capital losses of $10 million and at December 31, 2019, debt securities with a fair value of $965 million, gross unrealized capital gains of $83 million and no gross unrealized capital losses were included in total debt securities, but support experience-related products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income.
Fair Value of Debt Securities by Contractual Maturity | The net amortized cost and fair value of debt securities at March 31, 2020 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid, or the Company intends to sell a security prior to maturity.
In millions | Net Amortized Cost |  | Fair Value
Due to mature: |  |  |
Less than one year | $ | 1,219 |  |  | $ | 1,225 |
One year through five years | 5,292 |  |  | 5,399 |
After five years through ten years | 3,135 |  |  | 3,233 |
Greater than ten years | 3,708 |  |  | 4,110 |
Residential mortgage-backed securities | 574 |  |  | 612 |
Commercial mortgage-backed securities | 662 |  |  | 704 |
Other asset-backed securities | 1,507 |  |  | 1,434 |
Total | $ | 16,097 |  |  | $ | 16,717 |
Debt Securities In An Unrealized Capital Loss Position | Summarized below are the debt securities the Company held at March 31, 2020 and December 31, 2019 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position:
| Less than 12 months |  | Greater than 12 months |  | Total
In millions, except number of securities | Number of Securities |  | Fair Value |  | Unrealized Losses |  | Number of Securities |  | Fair Value |  | Unrealized Losses |  | Number of Securities |  | Fair Value |  | Unrealized Losses
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | 8 |  |  | $ | 20 |  |  | $ | — |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 8 |  |  | $ | 20 |  |  | $ | — |
States, municipalities and political subdivisions | 174 |  |  | 314 |  |  | 7 |  |  | — |  |  | — |  |  | — |  |  | 174 |  |  | 314 |  |  | 7 |
U.S. corporate securities | 1,622 |  |  | 1,712 |  |  | 108 |  |  | 6 |  |  | 2 |  |  | 1 |  |  | 1,628 |  |  | 1,714 |  |  | 109 |
Foreign securities | 513 |  |  | 630 |  |  | 48 |  |  | — |  |  | — |  |  | — |  |  | 513 |  |  | 630 |  |  | 48 |
Residential mortgage-backed securities | 14 |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 21 |  |  | — |  |  | — |
Commercial mortgage-backed securities | 21 |  |  | 50 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | 50 |  |  | 1 |
Other asset-backed securities | 589 |  |  | 893 |  |  | 67 |  |  | 89 |  |  | 68 |  |  | 13 |  |  | 678 |  |  | 961 |  |  | 80 |
Redeemable preferred securities | 6 |  |  | 11 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | 11 |  |  | 1 |
Total debt securities | 2,947 |  |  | $ | 3,630 |  |  | $ | 232 |  |  | 102 |  |  | $ | 70 |  |  | $ | 14 |  |  | 3,049 |  |  | $ | 3,700 |  |  | $ | 246 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | 52 |  |  | $ | 168 |  |  | $ | 1 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 52 |  |  | $ | 168 |  |  | $ | 1 |
States, municipalities and political subdivisions | 66 |  |  | 115 |  |  | 1 |  |  | 2 |  |  | 5 |  |  | — |  |  | 68 |  |  | 120 |  |  | 1 |
U.S. corporate securities | 181 |  |  | 305 |  |  | 2 |  |  | 2 |  |  | — |  |  | 1 |  |  | 183 |  |  | 305 |  |  | 3 |
Foreign securities | 39 |  |  | 75 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 39 |  |  | 75 |  |  | 1 |
Residential mortgage-backed securities | 30 |  |  | 16 |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  | 39 |  |  | 16 |  |  | — |
Commercial mortgage-backed securities | 16 |  |  | 49 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | 49 |  |  | — |
Other asset-backed securities | 138 |  |  | 254 |  |  | 1 |  |  | 187 |  |  | 182 |  |  | 4 |  |  | 325 |  |  | 436 |  |  | 5 |
Total debt securities | 522 |  |  | $ | 982 |  |  | $ | 6 |  |  | 200 |  |  | $ | 187 |  |  | $ | 5 |  |  | 722 |  |  | $ | 1,169 |  |  | $ | 11 |
The maturity dates for debt securities in an unrealized capital loss position at March 31, 2020 were as follows:
| Supporting experience-rated products |  | Supporting remaining products |  | Total
In millions | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Due to mature: |  |  |  |  |  |  |  |  |  |  |
Less than one year | $ | 7 |  |  | $ | — |  |  | $ | 163 |  |  | $ | 3 |  |  | $ | 170 |  |  | $ | 3 |
One year through five years | 30 |  |  | 1 |  |  | 1,082 |  |  | 44 |  |  | 1,112 |  |  | 45 |
After five years through ten years | 61 |  |  | 4 |  |  | 776 |  |  | 60 |  |  | 837 |  |  | 64 |
Greater than ten years | 55 |  |  | 4 |  |  | 515 |  |  | 49 |  |  | 570 |  |  | 53 |
Commercial mortgage-backed securities | 1 |  |  | — |  |  | 49 |  |  | 1 |  |  | 50 |  |  | 1 |
Other asset-backed securities | 16 |  |  | 1 |  |  | 945 |  |  | 79 |  |  | 961 |  |  | 80 |
Total | $ | 170 |  |  | $ | 10 |  |  | $ | 3,530 |  |  | $ | 236 |  |  | $ | 3,700 |  |  | $ | 246 |
Activity in Mortgage Loan Portfolio | During the three months ended March 31, 2020 and 2019, the Company had the following activity in its mortgage loan portfolio:
| Three Months Ended March 31,
In millions | 2020 |  | 2019
New mortgage loans | $ | 8 |  |  | $ | 41 |
Mortgage loans fully repaid | 44 |  |  | 52 |
Mortgage loans foreclosed | — |  |  | — |
Mortgage Loan Internal Credit Rating | ased on the Company’s assessments at March 31, 2020 and December 31, 2019, the amortized cost basis of the Company's mortgage loans within each credit quality indicator by year of origination was as follows:
| Amortized Cost Basis by Year of Origination
In millions, except credit quality indicator | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Total
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
1 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | — |  |  | $ | 41 |  |  | $ | 56 |
2 to 4 | 5 |  |  | 94 |  |  | 95 |  |  | 164 |  |  | 139 |  |  | 589 |  |  | 1,086 |
5 and 6 | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 12 |  |  | 13 |
7 | — |  |  | — |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  | 9 |
Total | $ | 5 |  |  | $ | 94 |  |  | $ | 96 |  |  | $ | 188 |  |  | $ | 139 |  |  | $ | 642 |  |  | $ | 1,164 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
1 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | — |  |  | $ | 43 |  |  | $ | 58 |
2 to 4 | 5 |  |  | 88 |  |  | 93 |  |  | 206 |  |  | 140 |  |  | 611 |  |  | 1,143 |
5 and 6 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 12 |
7 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 5 |  |  | $ | 88 |  |  | $ | 93 |  |  | $ | 221 |  |  | $ | 140 |  |  | $ | 666 |  |  | $ | 1,213 |
Net Investment Income | Sources of net investment income for the three months ended March 31, 2020 and 2019 were as follows:
| Three Months Ended March 31,
In millions | 2020 |  | 2019
Debt securities | $ | 144 |  |  | $ | 156 |
Mortgage loans | 15 |  |  | 17 |
Other investments | 47 |  |  | 26 |
Gross investment income | 206 |  |  | 199 |
Investment expenses | (8 | ) |  | (9 | )
Net investment income (excluding net realized capital gains or losses) | 198 |  |  | 190 |
Net realized capital gains (losses) (1) | (36 | ) |  | 59 |
Net investment income (2) | $ | 162 |  |  | $ | 249 |
_____________________________________________
(1) | Net realized capital losses include credit-related and yield-related impairment losses on debt securities of $45 million and $41 million, respectively, in the three months ended March 31, 2020. Net realized capital gains are net of other than temporary impairment losses on debt securities of $7 million in the three months ended March 31, 2019.
(2) | Net investment income includes $11 million for both the three months ended March 31, 2020 and 2019 related to investments supporting experience-rated products.
Proceeds and Related Gross Realized Capital Gains and Losses From the Sale of Debt Securities | Excluding amounts related to experience-rated products, proceeds from the sale of available for sale debt securities and the related gross realized capital gains and losses for the three months ended March 31, 2020 and 2019 were as follows:
| Three Months Ended March 31,
In millions | 2020 |  | 2019
Proceeds from sales | $ | 723 |  |  | $ | 1,489 |
Gross realized capital gains | 20 |  |  | 35 |
Gross realized capital losses | 35 |  |  | 2 |

X
- Definition Table representing activities in mortgage loan portfolio during the period. + References No definition available. + Details
Name: | cvs_ActivityInMortgageLoanPortfolioTableTextBlock
Namespace Prefix: | cvs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition This item includes proceeds from the sale of debt securities and the related gross realized capital gains and losses, excluding amounts related to experience-rated and discontinued products. + References No definition available. + Details
Name: | cvs_ProceedsAndRelatedGrossRealizedCapitalGainsLossesFromSaleOfDebtSecuritiesTableTextBlock
Namespace Prefix: | cvs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule detailing credit quality information related to financing receivables by credit quality indicator and by class of financing receivable. + References No definition available. + Details
Name: | cvs_ScheduleOfMortgageLoanInternalCreditRatingsTableTextBlock
Namespace Prefix: | cvs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition This item includes total investments, both current and long-term. + References No definition available. + Details
Name: | cvs_TotalInvestmentsTableTextBlock
Namespace Prefix: | cvs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 + Details
Name: | us-gaap_DebtSecuritiesAvailableForSaleTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.9) -URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 220 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.2) -URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.7(a),(b)) -URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.8) -URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227 + Details
Name: | us-gaap_InvestmentIncomeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=118939692&loc=d3e27290-111563 + Details
Name: | us-gaap_ScheduleOfUnrealizedLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration