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Segment Reporting | 6 Months Ended
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Jun. 30, 2021
Segment Reporting [Abstract] |
Segment Reporting | Segment ReportingThe Company has three operating segments, Health Care Benefits, Pharmacy Services and Retail/LTC, as well as a Corporate/Other segment. The Company’s segments maintain separate financial information, and the Company’s chief operating decision maker (the “CODM”) evaluates the segments’ operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company’s segments based on adjusted operating income, which is defined as operating income (GAAP measure) excluding the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance. See the reconciliations of consolidated operating income (GAAP measure) to consolidated adjusted operating income below for further context regarding the items excluded from operating income in determining adjusted operating income. The Company uses adjusted operating income as its principal measure of segment performance as it enhances the Company’s ability to compare past financial performance with current performance and analyze underlying business performance and trends. Non-GAAP financial measures the Company discloses, such as consolidated adjusted operating income, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The following is a reconciliation of financial measures of the Company’s segments to the consolidated totals:
In millions | Health Care Benefits |  | Pharmacy Services (1) |  | Retail/ LTC |  | Corporate/ Other |  | Intersegment Eliminations (2) |  | Consolidated Totals
Three Months Ended |  |  |  |  |  |  |  |  |  |  |
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 20,367 |  |  | $ | 35,745 |  |  | $ | 16,185 |  |  | $ | 30 |  |  | $ | — |  |  | $ | 72,327 |
Intersegment revenues | 21 |  |  | 2,569 |  |  | 8,543 |  |  | — |  |  | (11,133) |  |  | — |
Net investment income | 137 |  |  | — |  |  | — |  |  | 152 |  |  | — |  |  | 289 |
Total revenues | 20,525 |  |  | 38,314 |  |  | 24,728 |  |  | 182 |  |  | (11,133) |  |  | 72,616 |
Adjusted operating income (loss) | 1,614 |  |  | 1,755 |  |  | 2,049 |  |  | (369) |  |  | (162) |  |  | 4,887 |
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 18,318 |  |  | $ | 32,623 |  |  | $ | 14,187 |  |  | $ | 29 |  |  | $ | — |  |  | $ | 65,157 |
Intersegment revenues | 23 |  |  | 2,266 |  |  | 7,475 |  |  | — |  |  | (9,764) |  |  | — |
Net investment income | 127 |  |  | — |  |  | — |  |  | 57 |  |  | — |  |  | 184 |
Total revenues | 18,468 |  |  | 34,889 |  |  | 21,662 |  |  | 86 |  |  | (9,764) |  |  | 65,341 |
Adjusted operating income (loss) | 3,464 |  |  | 1,327 |  |  | 1,057 |  |  | (343) |  |  | (177) |  |  | 5,328 |
Six Months Ended |  |  |  |  |  |  |  |  |  |  |
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 40,682 |  |  | $ | 69,058 |  |  | $ | 31,325 |  |  | $ | 62 |  |  | $ | — |  |  | $ | 141,127 |
Intersegment revenues | 41 |  |  | 5,577 |  |  | 16,631 |  |  | — |  |  | (22,249) |  |  | — |
Net investment income | 285 |  |  | — |  |  | 46 |  |  | 255 |  |  | — |  |  | 586 |
Total revenues | 41,008 |  |  | 74,635 |  |  | 48,002 |  |  | 317 |  |  | (22,249) |  |  | 141,713 |
Adjusted operating income (loss) | 3,396 |  |  | 3,262 |  |  | 3,443 |  |  | (672) |  |  | (337) |  |  | 9,092 |
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers | $ | 37,415 |  |  | $ | 64,741 |  |  | $ | 29,544 |  |  | $ | 50 |  |  | $ | — |  |  | $ | 131,750 |
Intersegment revenues | 31 |  |  | 5,131 |  |  | 14,867 |  |  | — |  |  | (20,029) |  |  | — |
Net investment income | 220 |  |  | — |  |  | — |  |  | 126 |  |  | — |  |  | 346 |
Total revenues | 37,666 |  |  | 69,872 |  |  | 44,411 |  |  | 176 |  |  | (20,029) |  |  | 132,096 |
Adjusted operating income (loss) | 4,955 |  |  | 2,508 |  |  | 2,959 |  |  | (628) |  |  | (353) |  |  | 9,441 |
_____________________________________________ (1)Total revenues of the Pharmacy Services segment include approximately $2.8 billion and $2.6 billion of retail co-payments for the three months ended June 30, 2021 and 2020, respectively, and $6.2 billion and $6.0 billion of retail co-payments for the six months ended June 30, 2021 and 2020, respectively. (2)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Pharmacy Services segment, and/or the Retail/LTC segment. Intersegment adjusted operating income eliminations occur when members of Pharmacy Services Segment clients (“PSS members”) enrolled in Maintenance Choice® elect to pick up maintenance prescriptions at one of the Company’s retail pharmacies instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail/LTC segments record the adjusted operating income on a stand-alone basis. The following are reconciliations of consolidated operating income to adjusted operating income for the three and six months ended June 30, 2021 and 2020:
| Three Months Ended June 30, |  | Six Months Ended June 30,
In millions | 2021 |  | 2020 |  | 2021 |  | 2020
Operating income (GAAP measure) | $ | 4,326 |  |  | $ | 4,680 |  |  | $ | 7,903 |  |  | $ | 8,138 |
Amortization of intangible assets (1) | 582 |  |  | 578 |  |  | 1,169 |  |  | 1,164 |
Acquisition-related integration costs (2) | 40 |  |  | 70 |  |  | 81 |  |  | 139 |
Acquisition purchase price adjustment outside of measurement period (3) | (61) |  |  | — |  |  | (61) |  |  | — |
Adjusted operating income | $ | 4,887 |  |  | $ | 5,328 |  |  | $ | 9,092 |  |  | $ | 9,441 |
_____________________________________________ (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, 2021 and 2020, acquisition-related integration costs relate to the acquisition of Aetna. 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)In June 2021, the Company received $61 million related to a purchase price working capital adjustment for an acquisition completed during the first quarter of 2020. The resolution of this matter occurred subsequent to the acquisition accounting measurement period and is reflected in the Company’s unaudited GAAP condensed consolidated statements of operations for the three and six months ended June 30, 2021 as a reduction of operating expenses within the Health Care Benefits segment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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