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Segment Reporting (Tables) | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Summarized Financial Information Of Segments | The following is a reconciliation of financial measures of the Company’s segments to the consolidated totals:
In millions | Pharmacy Services (1) |  | Retail/ LTC |  | Health Care Benefits |  | Corporate/ Other |  | Intersegment Eliminations |  | Consolidated Totals
Three Months Ended |  |  |  |  |  |  |  |  |  |  |
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 32,623 |  |  | $ | 14,187 |  |  | $ | 18,318 |  |  | $ | 29 |  |  | $ | — |  |  | $ | 65,157 |
Intersegment revenues | 2,266 |  |  | 7,475 |  |  | 23 |  |  | — |  |  | (9,764 | ) |  | — |
Net investment income | — |  |  | — |  |  | 127 |  |  | 57 |  |  | — |  |  | 184 |
Total revenues | 34,889 |  |  | 21,662 |  |  | 18,468 |  |  | 86 |  |  | (9,764 | ) |  | 65,341 |
Adjusted operating income (loss) | 1,327 |  |  | 1,057 |  |  | 3,464 |  |  | (343 | ) |  | (177 | ) |  | 5,328 |
June 30, 2019 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 31,988 |  |  | $ | 13,885 |  |  | $ | 17,249 |  |  | $ | 16 |  |  | $ | — |  |  | $ | 63,138 |
Intersegment revenues | 2,854 |  |  | 7,562 |  |  | 6 |  |  | — |  |  | (10,422 | ) |  | — |
Net investment income | — |  |  | — |  |  | 148 |  |  | 145 |  |  | — |  |  | 293 |
Total revenues | 34,842 |  |  | 21,447 |  |  | 17,403 |  |  | 161 |  |  | (10,422 | ) |  | 63,431 |
Adjusted operating income (loss) | 1,296 |  |  | 1,669 |  |  | 1,438 |  |  | (202 | ) |  | (170 | ) |  | 4,031 |
Six Months Ended |  |  |  |  |  |  |  |  |  |  |
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 64,741 |  |  | $ | 29,544 |  |  | $ | 37,415 |  |  | $ | 50 |  |  | $ | — |  |  | $ | 131,750 |
Intersegment revenues | 5,131 |  |  | 14,867 |  |  | 31 |  |  | — |  |  | (20,029 | ) |  | — |
Net investment income | — |  |  | — |  |  | 220 |  |  | 126 |  |  | — |  |  | 346 |
Total revenues | 69,872 |  |  | 44,411 |  |  | 37,666 |  |  | 176 |  |  | (20,029 | ) |  | 132,096 |
Adjusted operating income (loss) | 2,508 |  |  | 2,959 |  |  | 4,955 |  |  | (628 | ) |  | (353 | ) |  | 9,441 |
June 30, 2019 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 61,814 |  |  | $ | 27,731 |  |  | $ | 34,949 |  |  | $ | 41 |  |  | $ | — |  |  | $ | 124,535 |
Intersegment revenues | 6,586 |  |  | 14,831 |  |  | 12 |  |  | — |  |  | (21,429 | ) |  | — |
Net investment income | — |  |  | — |  |  | 312 |  |  | 230 |  |  | — |  |  | 542 |
Total revenues | 68,400 |  |  | 42,562 |  |  | 35,273 |  |  | 271 |  |  | (21,429 | ) |  | 125,077 |
Adjusted operating income (loss) | 2,243 |  |  | 3,158 |  |  | 3,000 |  |  | (433 | ) |  | (342 | ) |  | 7,626 |
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(1) | Total revenues of the Pharmacy Services segment include approximately $2.6 billion and $2.9 billion of retail co-payments for the three months ended June 30, 2020 and 2019, respectively, and $6.0 billion and $6.2 billion of retail co-payments for the six months ended June 30, 2020 and 2019, respectively.
Reconciliation of Operating Earnings to Net Income | The following are reconciliations of consolidated operating income to adjusted operating income for the three and six months ended June 30, 2020 and 2019:
| Three Months Ended June 30, |  | Six Months Ended June 30,
In millions | 2020 |  | 2019 |  | 2020 |  | 2019
Operating income (GAAP measure) | $ | 4,680 |  |  | $ | 3,332 |  |  | $ | 8,138 |  |  | $ | 6,022 |
Amortization of intangible assets (1) | 578 |  |  | 593 |  |  | 1,164 |  |  | 1,215 |
Acquisition-related integration costs (2) | 70 |  |  | 106 |  |  | 139 |  |  | 254 |
Store rationalization charge (3) | — |  |  | — |  |  | — |  |  | 135 |
Adjusted operating income | $ | 5,328 |  |  | $ | 4,031 |  |  | $ | 9,441 |  |  | $ | 7,626 |
_____________________________________________
(1) | The Company’s acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company’s unaudited GAAP condensed consolidated statements of operations in operating expenses within each segment. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.
(2) | During the three and six months ended June 30, 2020 and 2019, acquisition-related integration costs relate to the Aetna Acquisition. The acquisition-related integration costs are reflected in the Company’s unaudited GAAP condensed consolidated statements of operations in operating expenses within the Corporate/Other segment.
(3) During the six months ended June 30, 2019, the store rationalization charge primarily relates to operating lease right-of-use asset impairment charges in connection with the planned closure of 46 underperforming retail pharmacy stores in the second quarter of 2019. The store rationalization charge is reflected in the Company’s unaudited GAAP condensed consolidated statement of operations in operating expenses within the Retail/LTC segment.

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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