Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 04, 2014 | Jun. 30, 2012 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'CVS CAREMARK CORP | ' | ' |
Entity Central Index Key | '0000064803 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $69,980,197,924 |
Entity Common Stock, Shares Outstanding | ' | 1,182,427,156 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net revenues | $126,761 | $123,120 | $107,080 |
Cost of revenues | 102,978 | 100,632 | 86,518 |
Gross profit | 23,783 | 22,488 | 20,562 |
Operating expenses | 15,746 | 15,278 | 14,231 |
Operating profit | 8,037 | 7,210 | 6,331 |
Interest expense, net | 509 | 557 | 584 |
Loss on early extinguishment of debt | 0 | 348 | 0 |
Income before income tax provision | 7,528 | 6,305 | 5,747 |
Income tax provision | 2,928 | 2,436 | 2,258 |
Income from continuing operations | 4,600 | 3,869 | 3,489 |
Loss from discontinued operations, net of tax | -8 | -7 | -31 |
Net income | 4,592 | 3,862 | 3,458 |
Net loss attributable to noncontrolling interest | 0 | 2 | 4 |
Net income attributable to CVS Caremark | $4,592 | $3,864 | $3,462 |
Basic earnings per common share: | ' | ' | ' |
Income from continuing operations attributable to CVS Caremark (in dollars per share) | $3.78 | $3.05 | $2.61 |
Loss from discontinued operations attributable to CVS Caremark (in dollars per share) | ($0.01) | ($0.01) | ($0.02) |
Net income attributable to CVS Caremark (in dollars per share) | $3.77 | $3.04 | $2.59 |
Weighted average common shares outstanding (in shares) | 1,217 | 1,271 | 1,338 |
Diluted earnings per common share: | ' | ' | ' |
Income from continuing operations attributable to CVS Caremark (in dollars per share) | $3.75 | $3.02 | $2.59 |
Loss from discontinued operations attributable to CVS Caremark (in dollars per share) | ($0.01) | ($0.01) | ($0.02) |
Net income attributable to CVS Caremark (in dollars per share) | $3.74 | $3.02 | $2.57 |
Weighted average common shares outstanding (in shares) | 1,226 | 1,280 | 1,347 |
Dividends declared per common share | $0.90 | $0.65 | $0.50 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | |
Net income | $4,592 | $3,862 | $3,458 | |
Other comprehensive income (loss): | ' | ' | ' | |
Foreign currency translation adjustments, net of tax | -30 | 0 | 0 | |
Net cash flow hedges, net of income tax | 3 | 3 | -9 | |
Pension and other postretirement benefits, net of income tax | 59 | -12 | -20 | |
Net other comprehensive income (loss) | 32 | [1] | -9 | -29 |
Comprehensive income | 4,624 | 3,853 | 3,429 | |
Comprehensive loss attributable to noncontrolling interest | 0 | 2 | 4 | |
Comprehensive income attributable to CVS Caremark | $4,624 | $3,855 | $3,433 | |
[1] | All amounts are net of tax. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ||
Cash and cash equivalents | $4,089 | $1,375 | ||
Short-term investments | 88 | 5 | ||
Accounts receivable, net | 8,729 | 6,479 | ||
Inventories | 11,045 | 11,032 | ||
Deferred income taxes | 902 | 693 | ||
Other current assets | 472 | 577 | ||
Total current assets | 25,325 | 20,161 | ||
Property and equipment, net | 8,615 | 8,632 | ||
Goodwill | 26,542 | 26,395 | ||
Intangible assets, net | 9,529 | 9,753 | ||
Other assets | 1,515 | 1,280 | ||
Total assets | 71,526 | 66,221 | ||
Liabilities: | ' | ' | ||
Accounts payable | 5,548 | 5,070 | ||
Claims and discounts payable | 4,548 | 3,974 | ||
Accrued expenses | 4,768 | 4,411 | ||
Short-term debt | 0 | 690 | ||
Current portion of long-term debt | 561 | 5 | ||
Total current liabilities | 15,425 | 14,150 | ||
Long-term debt | 12,841 | 9,133 | ||
Deferred income taxes | 3,901 | 3,784 | ||
Other long-term liabilities | 1,421 | 1,501 | ||
Commitments and contingencies (Note 12) | 0 | 0 | ||
Shareholders’ equity: | ' | ' | ||
Preferred stock, par value $0.01: 0.1 shares authorized; none issued or outstanding | ' | ' | ||
Common stock, par value $0.01: 3,200 shares authorized; 1,680 shares issued and 1,180 shares outstanding at December 31, 2013 and 1,667 shares issued and 1,231 shares outstanding at December 31, 2012 | 17 | 17 | ||
Treasury stock, at cost: 500 shares at December 31, 2013 and 435 shares at December 31, 2012 | -20,169 | -16,270 | ||
Shares held in trust: 1 share at December 31, 2013 and 2012 | -31 | -31 | ||
Capital surplus | 29,777 | 29,120 | ||
Retained earnings | 28,493 | 24,998 | ||
Accumulated other comprehensive loss | -149 | [1] | -181 | [1] |
Total shareholders’ equity | 37,938 | 37,653 | ||
Total liabilities and shareholders’ equity | $71,526 | $66,221 | ||
[1] | All amounts are net of tax. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred Stock, shares authorized | 100,000 | 100,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized | 3,200,000,000 | 3,200,000,000 |
Common Stock, shares issued | 1,680,000,000 | 1,667,000,000 |
Common Stock, shares outstanding | 1,180,000,000 | 1,231,000,000 |
Treasury Stock, shares | 500,000,000 | 435,000,000 |
Shares held in trust, shares | 1,000,000 | 1,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Cash receipts from customers | $114,993 | $113,205 | $97,688 |
Cash paid for inventory and prescriptions dispensed by retail network pharmacies | -91,178 | -90,032 | -75,148 |
Cash paid to other suppliers and employees | -14,295 | -13,643 | -13,635 |
Interest received | 8 | 4 | 4 |
Interest paid | -534 | -581 | -647 |
Income taxes paid | -3,211 | -2,282 | -2,406 |
Net cash provided by operating activities | 5,783 | 6,671 | 5,856 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -1,984 | -2,030 | -1,872 |
Proceeds from sale-leaseback transactions | 600 | 529 | 592 |
Proceeds from sale of property and equipment and other assets | 54 | 23 | 4 |
Acquisitions (net of cash acquired) and other investments | -415 | -378 | -1,441 |
Purchase of available-for-sale investments | -226 | 0 | -3 |
Maturity of available-for-sale investments | 136 | 0 | 60 |
Proceeds from sale of subsidiary | 0 | 7 | 250 |
Net cash used in investing activities | -1,835 | -1,849 | -2,410 |
Cash flows from financing activities: | ' | ' | ' |
Increase (decrease) in short-term debt | -690 | -60 | 450 |
Proceeds from issuance of long-term debt | 3,964 | 1,239 | 1,463 |
Repayments of long-term debt | 0 | -1,718 | -2,122 |
Purchase of noncontrolling interest in subsidiary | 0 | -26 | 0 |
Dividends paid | -1,097 | -829 | -674 |
Derivative settlements | 0 | 0 | -19 |
Proceeds from exercise of stock options | 500 | 836 | 431 |
Excess tax benefits from stock-based compensation | 62 | 28 | 21 |
Repurchase of common stock | -3,976 | -4,330 | -3,001 |
Other | 0 | 0 | -9 |
Net cash used in financing activities | -1,237 | -4,860 | -3,460 |
Effect of exchange rate changes on cash and cash equivalents | 3 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 2,714 | -38 | -14 |
Cash and cash equivalents at the beginning of the year | 1,375 | 1,413 | 1,427 |
Cash and cash equivalents at the end of the year | 4,089 | 1,375 | 1,413 |
Reconciliation of net income to net cash provided by operating activities: | ' | ' | ' |
Net income | 4,592 | 3,862 | 3,458 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 1,870 | 1,753 | 1,568 |
Stock-based compensation | 141 | 132 | 135 |
Loss on early extinguishment of debt | 0 | 348 | 0 |
Gain on sale of subsidiary | 0 | 0 | -53 |
Deferred income taxes and other noncash items | -86 | -111 | 144 |
Change in operating assets and liabilities, net of effects from acquisitions: | ' | ' | ' |
Accounts receivable, net | -2,210 | -387 | -748 |
Inventories | 12 | -853 | 586 |
Other current assets | 105 | 3 | -420 |
Other assets | -135 | -99 | -49 |
Accounts payable and claims and discounts payable | 1,024 | 1,147 | 1,128 |
Accrued expenses | 471 | 766 | 105 |
Other long-term liabilities | -1 | 110 | 2 |
Net cash provided by operating activities | $5,783 | $6,671 | $5,856 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common stock: | Treasury stock: | Shares held in trust: | Capital surplus: | Retained earnings: | Accumulated other comprehensive loss: | |
In Millions, except Share data, unless otherwise specified | ||||||||
Balance Beginning at Dec. 31, 2010 (Beginning of year) | ' | ' | ' | ' | ' | $19,303 | ' | |
Balance Beginning (Beginning of year, as adjusted) | ' | ' | ' | ' | ' | 19,264 | ' | |
Balance Beginning at Dec. 31, 2010 | ' | 16 | -9,030 | -56 | 27,610 | ' | -143 | |
Balance Beginning (in shares) at Dec. 31, 2010 | ' | 1,624,000,000 | 259,000,000 | 2,000,000 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | |
Adjustment to opening balance (Adjustment) | [1] | ' | ' | ' | ' | ' | 0 | ' |
Changes in inventory accounting principles (Note 2) (Changes in inventory accounting principles (Note 2)) | ' | ' | ' | ' | ' | 0 | ' | |
Stock options exercised and issuance of stock awards (in shares) | ' | 16,000,000 | ' | ' | ' | ' | ' | |
Stock options exercised and issuance of stock awards | ' | 0 | ' | ' | ' | ' | ' | |
Purchase of treasury shares (in shares) | ' | ' | -84,000,000 | ' | ' | ' | ' | |
Purchase of treasury shares | ' | ' | -3,001 | ' | ' | ' | ' | |
Employee stock purchase plan issuances (in shares) | ' | ' | 3,000,000 | ' | ' | ' | ' | |
Employee stock purchase plan issuances | ' | ' | 78 | ' | ' | ' | ' | |
Transfer of shares from shares held in trust (in shares) | ' | ' | 0 | ' | ' | ' | ' | |
Transfer of shares from shares held in trust | ' | ' | 0 | ' | ' | ' | ' | |
Transfer of shares held in trust to treasury stock (in shares) | ' | ' | ' | 0 | ' | ' | ' | |
Transfer of shares held in trust to treasury stock | ' | ' | ' | 0 | 0 | ' | ' | |
Stock option activity and stock awards | ' | ' | ' | ' | 495 | ' | ' | |
Tax benefit on stock options and stock awards | ' | ' | ' | ' | 21 | ' | ' | |
Purchase of noncontrolling interest in subsidiary | ' | ' | ' | ' | 0 | ' | ' | |
Net income attributable to CVS Caremark | 3,462 | ' | ' | ' | ' | 3,462 | ' | |
Common stock dividends | ' | ' | ' | ' | ' | -674 | ' | |
Foreign currency translation adjustments, net of tax | 0 | ' | ' | ' | ' | ' | 0 | |
Net cash flow hedges, net of income tax | -9 | ' | ' | ' | ' | ' | -9 | |
Pension liability adjustment, net of income tax | 20 | ' | ' | ' | ' | ' | -20 | |
Balance Ending at Dec. 31, 2011 (Beginning of year) | ' | ' | ' | ' | ' | 22,052 | ' | |
Balance Ending (Beginning of year, as adjusted) | ' | ' | ' | ' | ' | 22,052 | ' | |
Balance Ending at Dec. 31, 2011 | 38,013 | 16 | -11,953 | -56 | 28,126 | 22,052 | -172 | |
Balance Ending (in shares) at Dec. 31, 2011 | ' | 1,640,000,000 | 340,000,000 | 2,000,000 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | |
Adjustment to opening balance (Adjustment) | [1] | ' | ' | ' | ' | ' | 0 | ' |
Changes in inventory accounting principles (Note 2) (Changes in inventory accounting principles (Note 2)) | ' | ' | ' | ' | ' | -89 | ' | |
Stock options exercised and issuance of stock awards (in shares) | ' | 27,000,000 | ' | ' | ' | ' | ' | |
Stock options exercised and issuance of stock awards | ' | 1 | ' | ' | ' | ' | ' | |
Purchase of treasury shares (in shares) | ' | ' | -95,000,000 | ' | ' | ' | ' | |
Purchase of treasury shares | ' | ' | -4,330 | ' | ' | ' | ' | |
Employee stock purchase plan issuances (in shares) | ' | ' | 1,000,000 | ' | ' | ' | ' | |
Employee stock purchase plan issuances | ' | ' | 47 | ' | ' | ' | ' | |
Transfer of shares from shares held in trust (in shares) | ' | ' | -1,000,000 | ' | ' | ' | ' | |
Transfer of shares from shares held in trust | ' | ' | -34 | ' | ' | ' | ' | |
Transfer of shares held in trust to treasury stock (in shares) | ' | ' | ' | 1,000,000 | ' | ' | ' | |
Transfer of shares held in trust to treasury stock | ' | ' | ' | 25 | 9 | ' | ' | |
Stock option activity and stock awards | ' | ' | ' | ' | 955 | ' | ' | |
Tax benefit on stock options and stock awards | ' | ' | ' | ' | 28 | ' | ' | |
Purchase of noncontrolling interest in subsidiary | ' | ' | ' | ' | 2 | ' | ' | |
Net income attributable to CVS Caremark | 3,864 | ' | ' | ' | ' | 3,864 | ' | |
Common stock dividends | ' | ' | ' | ' | ' | -829 | ' | |
Foreign currency translation adjustments, net of tax | 0 | ' | ' | ' | ' | ' | 0 | |
Net cash flow hedges, net of income tax | 3 | ' | ' | ' | ' | ' | 3 | |
Pension liability adjustment, net of income tax | 12 | ' | ' | ' | ' | ' | -12 | |
Balance Ending at Dec. 31, 2012 (Beginning of year) | ' | ' | ' | ' | ' | 24,998 | ' | |
Balance Ending (Beginning of year, as adjusted) | ' | ' | ' | ' | ' | 24,998 | ' | |
Balance Ending at Dec. 31, 2012 | 37,653 | 17 | -16,270 | -31 | 29,120 | 24,998 | -181 | |
Balance Ending (in shares) at Dec. 31, 2012 | ' | 1,667,000,000 | 435,000,000 | 1,000,000 | ' | ' | ' | |
Balance Beginning at Sep. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | |
Adjustment to opening balance (Adjustment) | [1] | ' | ' | ' | ' | ' | 0 | ' |
Net income attributable to CVS Caremark | 1,125 | ' | ' | ' | ' | ' | ' | |
Balance Ending at Dec. 31, 2012 (Beginning of year) | ' | ' | ' | ' | ' | 24,998 | ' | |
Balance Ending (Beginning of year, as adjusted) | ' | ' | ' | ' | ' | 24,998 | ' | |
Balance Ending at Dec. 31, 2012 | 37,653 | 17 | -16,270 | -31 | 29,120 | 24,998 | -181 | |
Balance Beginning (in shares) at Dec. 31, 2012 | ' | 1,667,000,000 | 435,000,000 | 1,000,000 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | |
Changes in inventory accounting principles (Note 2) (Changes in inventory accounting principles (Note 2)) | ' | ' | ' | ' | ' | 0 | ' | |
Stock options exercised and issuance of stock awards (in shares) | ' | 13,000,000 | ' | ' | ' | ' | ' | |
Stock options exercised and issuance of stock awards | ' | 0 | ' | ' | ' | ' | ' | |
Purchase of treasury shares (in shares) | ' | ' | -66,000,000 | ' | ' | ' | ' | |
Purchase of treasury shares | ' | ' | -3,976 | ' | ' | ' | ' | |
Employee stock purchase plan issuances (in shares) | ' | ' | 1,000,000 | ' | ' | ' | ' | |
Employee stock purchase plan issuances | ' | ' | 77 | ' | ' | ' | ' | |
Transfer of shares from shares held in trust (in shares) | ' | ' | 0 | ' | ' | ' | ' | |
Transfer of shares from shares held in trust | ' | ' | 0 | ' | ' | ' | ' | |
Transfer of shares held in trust to treasury stock (in shares) | ' | ' | ' | 0 | ' | ' | ' | |
Transfer of shares held in trust to treasury stock | ' | ' | ' | 0 | 0 | ' | ' | |
Stock option activity and stock awards | ' | ' | ' | ' | 588 | ' | ' | |
Tax benefit on stock options and stock awards | ' | ' | ' | ' | 69 | ' | ' | |
Purchase of noncontrolling interest in subsidiary | ' | ' | ' | ' | 0 | ' | ' | |
Net income attributable to CVS Caremark | 4,592 | ' | ' | ' | ' | 4,592 | ' | |
Common stock dividends | ' | ' | ' | ' | ' | -1,097 | ' | |
Foreign currency translation adjustments, net of tax | -30 | ' | ' | ' | ' | ' | -30 | |
Net cash flow hedges, net of income tax | 3 | ' | ' | ' | ' | ' | 3 | |
Pension liability adjustment, net of income tax | -59 | ' | ' | ' | ' | ' | 59 | |
Balance Ending at Dec. 31, 2013 | $37,938 | $17 | ($20,169) | ($31) | $29,777 | $28,493 | ($149) | |
Balance Ending (in shares) at Dec. 31, 2013 | ' | 1,680,000,000 | 500,000,000 | 1,000,000 | ' | ' | ' | |
[1] | ee Note 1 - Significant Accounting Policies (Revenue Recognition - Retail Pharmacy Segment). |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Significant Accounting Policies | ' | |||||||||||||||
Significant Accounting Policies | ||||||||||||||||
Description of business - CVS Caremark Corporation and its subsidiaries (the “Company”) is the largest integrated pharmacy health care provider in the United States based upon revenues and prescriptions filled. The Company currently has three reportable business segments, Pharmacy Services, Retail Pharmacy and Corporate, which are described below. | ||||||||||||||||
Pharmacy Services Segment (the “PSS”) - The PSS provides a full range of pharmacy benefit management services including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management and claims processing. The Company’s clients are primarily employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans and individuals throughout the United States. | ||||||||||||||||
As a pharmacy benefits manager, the PSS manages the dispensing of pharmaceuticals through the Company’s mail order pharmacies and national network of nearly 68,000 retail pharmacies, consisting of approximately 41,000 chain pharmacies and 27,000 independent pharmacies, to eligible members in the benefits plans maintained by the Company’s clients and utilizes its information systems to perform, among other things, safety checks, drug interaction screenings and brand to generic substitutions. | ||||||||||||||||
The PSS’ specialty pharmacies support individuals that require complex and expensive drug therapies. The specialty pharmacy business includes mail order and retail specialty pharmacies that operate under the CVS Caremark® and CarePlus CVS/pharmacy® names. | ||||||||||||||||
The PSS also provides health management programs, which include integrated disease management for 17 conditions, through the Company’s Accordant® rare disease management offering. | ||||||||||||||||
In addition, through the Company’s SilverScript Insurance Company (“SilverScript”) subsidiary, the PSS is a national provider of drug benefits to eligible beneficiaries under the Federal Government’s Medicare Part D program. | ||||||||||||||||
The PSS generates net revenues primarily by contracting with clients to provide prescription drugs to plan members. Prescription drugs are dispensed by the mail order pharmacies, specialty pharmacies and national network of retail pharmacies. Net revenues are also generated by providing additional services to clients, including administrative services such as claims processing and formulary management, as well as health care related services such as disease management. | ||||||||||||||||
The pharmacy services business operates under the CVS Caremark® Pharmacy Services, Caremark®, CVS Caremark®, CarePlus CVS/pharmacy®, RxAmerica®, Accordant®, SilverScript® and Novologix® names. As of December 31, 2013, the PSS operated 25 retail specialty pharmacy stores, 11 specialty mail order pharmacies and four mail service dispensing pharmacies located in 22 states, Puerto Rico and the District of Columbia. | ||||||||||||||||
Retail Pharmacy Segment (the “RPS”) - The RPS sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, photo finishing, seasonal merchandise, greeting cards and convenience foods, through the Company’s CVS/pharmacy®, Longs Drugs® and Drogaria Onofre® retail stores and online through CVS.com® and Onofre.com.br. | ||||||||||||||||
The RPS also provides health care services through its MinuteClinic® health care clinics. MinuteClinics are staffed by nurse practitioners and physician assistants who utilize nationally recognized protocols to diagnose and treat minor health conditions, perform health screenings, monitor chronic conditions and deliver vaccinations. | ||||||||||||||||
As of December 31, 2013, the retail pharmacy business included 7,660 retail drugstores (of which 7,603 operated a pharmacy) located in 43 states, the District of Columbia, Puerto Rico and Brazil operating primarily under the CVS/pharmacy and Drogaria Onofre® names, the online retail websites, CVS.com and Onofre.com.br, and 800 retail health care clinics operating under the MinuteClinic® name (of which 792 were located in CVS/pharmacy stores). | ||||||||||||||||
Corporate Segment - The Corporate Segment provides management and administrative services to support the Company. The Corporate Segment consists of certain aspects of the Company’s executive management, corporate relations, legal, compliance, human resources, corporate information technology and finance departments. | ||||||||||||||||
Principles of consolidation - The consolidated financial statements include the accounts of the Company and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. | ||||||||||||||||
Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||
Fair value hierarchy - The Company utilizes the three-level valuation hierarchy for the recognition and disclosure of fair value measurements. The categorization of assets and liabilities within this hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy consist of the following: | ||||||||||||||||
• | Level 1 - Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||||||||||||||
• | Level 2 - Inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active or inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. | |||||||||||||||
• | Level 3 - Inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of inputs market participants could use in pricing the asset or liability at the measurement date, including assumptions about risk. | |||||||||||||||
Cash and cash equivalents - Cash and cash equivalents consist of cash and temporary investments with maturities of three months or less when purchased. The Company invests in short-term money market funds, commercial paper and time deposits, as well as other debt securities that are classified as cash equivalents within the accompanying consolidated balance sheets, as these funds are highly liquid and readily convertible to known amounts of cash. These investments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. | ||||||||||||||||
Short-term investments - The Company’s short-term investments consist of certificate of deposits with initial maturities of greater than three months when purchased. These investments, which were classified as available-for-sale within Level 1 of the fair value hierarchy, were carried at fair value, which approximated historical cost at December 31, 2013 and 2012. | ||||||||||||||||
Fair value of financial instruments - As of December 31, 2013, the Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable and short-term debt. Due to the short-term nature of these instruments, the Company’s carrying value approximates fair value. The carrying amount and estimated fair value of total long-term debt was $13.4 billion and $14.2 billion, respectively, as of December 31, 2013. The fair value of the Company’s long-term debt was estimated based on quoted rates currently offered in active markets for the Company’s debt, which is considered Level 1 of the fair value hierarchy. The Company had outstanding letters of credit, which guaranteed foreign trade purchases, with a fair value of $3.6 million as of December 31, 2013. There were no outstanding derivative financial instruments as of December 31, 2013 and 2012. | ||||||||||||||||
Foreign currency translation and transactions - For local currency functional locations, assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income/(loss). | ||||||||||||||||
For U.S. dollar functional currency locations, foreign currency assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates, except for non-monetary balance sheet accounts, which are remeasured at historical exchange rates. Revenue and expense are remeasured at average exchange rates in effect during each period, except for those expenses related to the nonmonetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. | ||||||||||||||||
Gains and losses arising from foreign currency transactions and the effects of remeasurements were not material for all period presented. | ||||||||||||||||
Accounts receivable - Accounts receivable are stated net of an allowance for doubtful accounts. The accounts receivable balance primarily includes amounts due from third party providers (e.g., pharmacy benefit managers, insurance companies and governmental agencies), clients and members, as well as vendors and manufacturers. Charges to bad debt are based on both historical write-offs and specifically identified receivables. | ||||||||||||||||
The activity in the allowance for doubtful accounts receivable for the years ended December 31 is as follows: | ||||||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||||||
Beginning balance | $ | 243 | $ | 189 | $ | 182 | ||||||||||
Additions charged to bad debt expense | 195 | 149 | 129 | |||||||||||||
Write-offs charged to allowance | (182 | ) | (95 | ) | (122 | ) | ||||||||||
Ending balance | $ | 256 | $ | 243 | $ | 189 | ||||||||||
Inventories - Prior to 2012, inventories were stated at the lower of cost or market on a first-in, first-out basis using the retail inventory method in the retail pharmacy stores, the weighted average cost method in the mail service and specialty pharmacies, and the cost method on a first-in, first-out basis in the distribution centers. Effective January 1, 2012, the Company changed its methods of accounting for prescription drug inventories in the RPS to the weighted average cost method. See Note 2 for additional information regarding the accounting change. Physical inventory counts are taken on a regular basis in each store and a continuous cycle count process is the primary procedure used to validate the inventory balances on hand in each distribution center and mail facility to ensure that the amounts reflected in the accompanying consolidated financial statements are properly stated. During the interim period between physical inventory counts, the Company accrues for anticipated physical inventory losses on a location-by-location basis based on historical results and current trends. | ||||||||||||||||
Property and equipment - Property, equipment and improvements to leased premises are depreciated using the straight-line method over the estimated useful lives of the assets, or when applicable, the term of the lease, whichever is shorter. Estimated useful lives generally range from 10 to 40 years for buildings, building improvements and leasehold improvements and 3 to 10 years for fixtures, equipment and internally developed software. Repair and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Application development stage costs for significant internally developed software projects are capitalized and depreciated. | ||||||||||||||||
The following are the components of property and equipment at December 31: | ||||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Land | $ | 1,460 | $ | 1,429 | ||||||||||||
Building and improvements | 2,694 | 2,614 | ||||||||||||||
Fixtures and equipment | 8,419 | 7,928 | ||||||||||||||
Leasehold improvements | 3,320 | 3,105 | ||||||||||||||
Software | 1,515 | 1,230 | ||||||||||||||
17,408 | 16,306 | |||||||||||||||
Accumulated depreciation and amortization | (8,793 | ) | (7,674 | ) | ||||||||||||
Property and equipment, net | $ | 8,615 | $ | 8,632 | ||||||||||||
The gross amount of property and equipment under capital leases was $260 million and $219 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of property and equipment under capital lease was $74 million and $64 million as of December 31, 2013 and 2012, respectively. Amortization of property and equipment under capital lease is included within depreciation expense. Depreciation expense totaled $1.4 billion, $1.3 billion and $1.1 billion in 2013, 2012 and 2011, respectively. | ||||||||||||||||
Goodwill and other indefinitely-lived assets - Goodwill and other indefinitely-lived assets are not amortized, but are subject to impairment reviews annually, or more frequently if necessary. See Note 4 for additional information on goodwill and other indefinitely-lived assets. | ||||||||||||||||
Intangible assets - Purchased customer contracts and relationships are amortized on a straight-line basis over their estimated useful lives between 10 and 20 years. Purchased customer lists are amortized on a straight-line basis over their estimated useful lives of up to 10 years. Purchased leases are amortized on a straight-line basis over the remaining life of the lease. See Note 4 for additional information about intangible assets. | ||||||||||||||||
Impairment of long-lived assets - The Company groups and evaluates fixed and finite-lived intangible assets for impairment at the lowest level at which individual cash flows can be identified, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If indicators of impairment are present, the Company first compares the carrying amount of the asset group to the estimated future cash flows associated with the asset group (undiscounted and without interest charges). If the estimated future cash flows used in this analysis are less than the carrying amount of the asset group, an impairment loss calculation is prepared. The impairment loss calculation compares the carrying amount of the asset group to the asset group’s estimated future cash flows (discounted and with interest charges). If required, an impairment loss is recorded for the portion of the asset group’s carrying value that exceeds the asset group’s estimated future cash flows (discounted and with interest charges). | ||||||||||||||||
Redeemable noncontrolling interest — Through June 29, 2012, the Company had an approximately 60% ownership interest in Generation Health, Inc. (“Generation Health”) and consolidated Generation Health in its consolidated financial statements. The nonemployee noncontrolling shareholders of Generation Health held put rights for the remaining interest in Generation Health that if exercised would require the Company to purchase the remaining interest in Generation Health in 2015 for a minimum of $26 million and a maximum of $159 million, depending on certain financial metrics of Generation Health in 2014. Since the noncontrolling shareholders of Generation Health had a redemption feature as a result of the put rights, the Company had classified the redeemable noncontrolling interest in Generation Health in the mezzanine section of the consolidated balance sheet outside of shareholders’ equity. On June 29, 2012, the Company acquired the remaining 40% interest in Generation Health from minority shareholders and employee option holders for $26 million and $5 million, respectively, for a total of $31 million. | ||||||||||||||||
The following is a reconciliation of the changes in the redeemable noncontrolling interest for the years ended December 31, 2012 and 2011: | ||||||||||||||||
In millions | 2012 | 2011 | ||||||||||||||
Beginning balance | $ | 30 | $ | 34 | ||||||||||||
Net loss attributable to noncontrolling interest | (2 | ) | (4 | ) | ||||||||||||
Purchase of noncontrolling interest | (26 | ) | — | |||||||||||||
Reclassification to capital surplus in connection with purchase of | ||||||||||||||||
noncontrolling interest | (2 | ) | — | |||||||||||||
Ending balance | $ | — | $ | 30 | ||||||||||||
Revenue Recognition | ||||||||||||||||
Pharmacy Services Segment - The PSS sells prescription drugs directly through its mail service dispensing pharmacies and indirectly through its retail pharmacy network. The PSS recognizes revenue from prescription drugs sold by its mail service dispensing pharmacies and under retail pharmacy network contracts where it is the principal using the gross method at the contract prices negotiated with its clients. Net revenues include: (i) the portion of the price the client pays directly to the PSS, net of any volume-related or other discounts paid back to the client (see “Drug Discounts” below), (ii) the price paid to the PSS by client plan members for mail order prescriptions (“Mail Co-Payments”) and the price paid to retail network pharmacies by client plan members for retail prescriptions (“Retail Co-Payments”), and (iii) administrative fees for retail pharmacy network contracts where the PSS is not the principal as discussed below. Sales taxes are not included in revenue. | ||||||||||||||||
Revenue is recognized when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured. The following revenue recognition policies have been established for the PSS: | ||||||||||||||||
• | Revenues generated from prescription drugs sold by mail service dispensing pharmacies are recognized when the prescription is delivered. At the time of delivery, the PSS has performed substantially all of its obligations under its client contracts and does not experience a significant level of returns or reshipments. | |||||||||||||||
• | Revenues generated from prescription drugs sold by third party pharmacies in the PSS’s retail pharmacy network and associated administrative fees are recognized at the PSS’s point-of-sale, which is when the claim is adjudicated by the PSS’s online claims processing system. | |||||||||||||||
The PSS determines whether it is the principal or agent for its retail pharmacy network transactions on a contract by contract basis. In the majority of its contracts, the PSS has determined it is the principal due to it: (i) being the primary obligor in the arrangement, (ii) having latitude in establishing the price, changing the product or performing part of the service, (iii) having discretion in supplier selection, (iv) having involvement in the determination of product or service specifications, and (v) having credit risk. The PSS’s obligations under its client contracts for which revenues are reported using the gross method are separate and distinct from its obligations to the third party pharmacies included in its retail pharmacy network contracts. Pursuant to these contracts, the PSS is contractually required to pay the third party pharmacies in its retail pharmacy network for products sold, regardless of whether the PSS is paid by its clients. The PSS’s responsibilities under its client contracts typically include validating eligibility and coverage levels, communicating the prescription price and the co-payments due to the third party retail pharmacy, identifying possible adverse drug interactions for the pharmacist to address with the prescriber prior to dispensing, suggesting generic alternatives where clinically appropriate and approving the prescription for dispensing. Although the PSS does not have credit risk with respect to Retail Co-Payments, management believes that all of the other applicable indicators of gross revenue reporting are present. For contracts under which the PSS acts as an agent, revenue is recognized using the net method. | ||||||||||||||||
Drug Discounts - The PSS deducts from its revenues any rebates, inclusive of discounts and fees, earned by its clients. Rebates are paid to clients in accordance with the terms of client contracts, which are normally based on fixed rebates per prescription for specific products dispensed or a percentage of manufacturer discounts received for specific products dispensed. The liability for rebates due to clients is included in “Claims and discounts payable” in the accompanying consolidated balance sheets. | ||||||||||||||||
Medicare Part D - The PSS, through its SilverScript Insurance Company subsidiary, participates in the Federal Government’s Medicare Part D program as a Prescription Drug Plan (“PDP”). Net revenues include insurance premiums earned by the PDP, which are determined based on the PDP’s annual bid and related contractual arrangements with the Centers for Medicare and Medicaid Services (“CMS”). The insurance premiums include a direct premium paid by CMS and a beneficiary premium, which is the responsibility of the PDP member, but is subsidized by CMS in the case of low-income members. Premiums collected in advance are initially deferred in accrued expenses and are then recognized in net revenues over the period in which members are entitled to receive benefits. | ||||||||||||||||
In addition to these premiums, net revenues include co-payments, coverage gap benefits, deductibles and co-insurance (collectively, the “Member Co-Payments”) related to PDP members’ actual prescription claims. In certain cases, CMS subsidizes a portion of these Member Co-Payments and pays the PSS an estimated prospective Member Co-Payment subsidy amount each month. The prospective Member Co-Payment subsidy amounts received from CMS are also included in net revenues. The Company assumes no risk for these amounts. If the prospective Member Co-Payment subsidies received differ from the amounts based on actual prescription claims, the difference is recorded in either accounts receivable or accrued expenses. | ||||||||||||||||
The PSS accounts for CMS obligations and Member Co-Payments (including the amounts subsidized by CMS) using the gross method consistent with its revenue recognition policies for Mail Co-Payments and Retail Co-Payments (discussed previously in this document). | ||||||||||||||||
Retail Pharmacy Segment - The RPS recognizes revenue from the sale of merchandise (other than prescription drugs) at the time the merchandise is purchased by the retail customer. Prior to the fourth quarter of 2013, revenue from the sale of prescription drugs was recognized at the time the prescription was filled as opposed to upon delivery as required under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 605, Revenue Recognition. For substantially all prescriptions, the fill date and the delivery date occur in the same reporting period. The effect on both revenue and income of recording prescription drug sales upon fill as opposed to delivery is immaterial. During the fourth quarter of 2013, the Company began recognizing revenue from the sale of prescription drugs when the prescription is picked up by the customer. This immaterial error correction is reflected in all annual and quarterly financial statements presented. For the year ended December 31, 2012, the correction reduced net revenues and net income attributable to CVS Caremark by $13 million and $13 million. For the year ended December 31, 2011, the correction reduced net revenues by $20 million and increased net income attributable to CVS Caremark by $1 million. Diluted earnings per share from net income attributable to CVS Caremark was reduced by $0.01 for the year ended December 31, 2012. There was no impact on diluted earnings per share from net income attributable to CVS Caremark in any other annual or interim period impacted by the immaterial error correction. The adjustment increased total assets and total liabilities by $309 million and $360 million as of December 31, 2012 and decreased retained earnings by $38 million and $39 million as of December 31, 2011 and 2010, respectively. | ||||||||||||||||
Customer returns are not material. Revenue generated from the performance of services in the RPS’s health care clinics is recognized at the time the services are performed. Sales taxes are not included in revenue. | ||||||||||||||||
See Note 13 for additional information about the revenues of the Company’s business segments. | ||||||||||||||||
Cost of revenues | ||||||||||||||||
Pharmacy Services Segment - The PSS’ cost of revenues includes: (i) the cost of prescription drugs sold during the reporting period directly through its mail service dispensing pharmacies and indirectly through its retail pharmacy network, (ii) shipping and handling costs, and (iii) the operating costs of its mail service dispensing pharmacies and client service operations and related information technology support costs including depreciation and amortization. The cost of prescription drugs sold component of cost of revenues includes: (i) the cost of the prescription drugs purchased from manufacturers or distributors and shipped to members in clients’ benefit plans from the PSS’ mail service dispensing pharmacies, net of any volume-related or other discounts (see “Vendor allowances and purchase discounts” below) and (ii) the cost of prescription drugs sold (including Retail Co-Payments) through the PSS’ retail pharmacy network under contracts where it is the principal, net of any volume-related or other discounts. | ||||||||||||||||
Retail Pharmacy Segment - The RPS’ cost of revenues includes: the cost of merchandise sold during the reporting period and the related purchasing costs, warehousing and delivery costs (including depreciation and amortization) and actual and estimated inventory losses. | ||||||||||||||||
See Note 13 for additional information about the cost of revenues of the Company’s business segments. | ||||||||||||||||
Vendor allowances and purchase discounts | ||||||||||||||||
The Company accounts for vendor allowances and purchase discounts as follows: | ||||||||||||||||
Pharmacy Services Segment - The PSS receives purchase discounts on products purchased. The PSS’ contractual arrangements with vendors, including manufacturers, wholesalers and retail pharmacies, normally provide for the PSS to receive purchase discounts from established list prices in one, or a combination, of the following forms: (i) a direct discount at the time of purchase, (ii) a discount for the prompt payment of invoices, or (iii) when products are purchased indirectly from a manufacturer (e.g., through a wholesaler or retail pharmacy), a discount (or rebate) paid subsequent to dispensing. These rebates are recognized when prescriptions are dispensed and are generally calculated and billed to manufacturers within 30 days of the end of each completed quarter. Historically, the effect of adjustments resulting from the reconciliation of rebates recognized to the amounts billed and collected has not been material to the PSS’ results of operations. The PSS accounts for the effect of any such differences as a change in accounting estimate in the period the reconciliation is completed. The PSS also receives additional discounts under its wholesaler contracts if it exceeds contractually defined annual purchase volumes. In addition, the PSS receives fees from pharmaceutical manufacturers for administrative services. Purchase discounts and administrative service fees are recorded as a reduction of “Cost of revenues”. | ||||||||||||||||
Retail Pharmacy Segment - Vendor allowances received by the RPS reduce the carrying cost of inventory and are recognized in cost of revenues when the related inventory is sold, unless they are specifically identified as a reimbursement of incremental costs for promotional programs and/or other services provided. Amounts that are directly linked to advertising commitments are recognized as a reduction of advertising expense (included in operating expenses) when the related advertising commitment is satisfied. Any such allowances received in excess of the actual cost incurred also reduce the carrying cost of inventory. The total value of any upfront payments received from vendors that are linked to purchase commitments is initially deferred. The deferred amounts are then amortized to reduce cost of revenues over the life of the contract based upon purchase volume. The total value of any upfront payments received from vendors that are not linked to purchase commitments is also initially deferred. The deferred amounts are then amortized to reduce cost of revenues on a straight-line basis over the life of the related contract. The total amortization of these upfront payments was not material to the accompanying consolidated financial statements. | ||||||||||||||||
Insurance - The Company is self-insured for certain losses related to general liability, workers’ compensation and auto liability. The Company obtains third party insurance coverage to limit exposure from these claims. The Company is also self-insured for certain losses related to health and medical liabilities. The Company’s self-insurance accruals, which include reported claims and claims incurred but not reported, are calculated using standard insurance industry actuarial assumptions and the Company’s historical claims experience. | ||||||||||||||||
Facility opening and closing costs - New facility opening costs, other than capital expenditures, are charged directly to expense when incurred. When the Company closes a facility, the present value of estimated unrecoverable costs, including the remaining lease obligation less estimated sublease income and the book value of abandoned property and equipment, are charged to expense. The long-term portion of the lease obligations associated with facility closings was $246 million and $288 million in 2013 and 2012, respectively. | ||||||||||||||||
Advertising costs - Advertising costs are expensed when the related advertising takes place. Advertising costs, net of vendor funding (included in operating expenses), were $177 million, $221 million and $211 million in 2013, 2012 and 2011, respectively. | ||||||||||||||||
Interest expense, net - Interest expense, net of capitalized interest, was $517 million, $561 million and $588 million, and interest income was $8 million, $4 million and $4 million in 2013, 2012 and 2011, respectively. Capitalized interest totaled $25 million, $29 million and $37 million in 2013, 2012 and 2011, respectively. | ||||||||||||||||
Shares held in trust - The Company maintains grantor trusts, which held approximately 1 million shares of its common stock at December 31, 2013 and 2012, respectively. These shares are designated for use under various employee compensation plans. Since the Company holds these shares, they are excluded from the computation of basic and diluted shares outstanding. | ||||||||||||||||
Accumulated other comprehensive loss - Accumulated other comprehensive loss consists of changes in the net actuarial gains and losses associated with pension and other postretirement benefit plans, unrealized losses on derivatives from cash flow hedges executed in previous years associated with the issuance of long-term debt, and foreign currency translation adjustments. The amount included in accumulated other comprehensive loss related to the Company’s pension and postretirement plans was $172 million pre-tax ($106 million after-tax) as of December 31, 2013 and $268 million pre-tax ($165 million after-tax) as of December 31, 2012. The net impact on cash flow hedges totaled $22 million pre-tax ($13 million after-tax) and $26 million pre-tax ($16 million after-tax) as of December 31, 2013 and 2012, respectively. Cumulative foreign currency translation adjustments at December 31, 2013 were $30 million. | ||||||||||||||||
Changes in accumulated other comprehensive income (loss) by component are shown below: | ||||||||||||||||
Year Ended December 31, 2013(1) | ||||||||||||||||
In millions | Losses on Cash Flow Hedges | Pension and Other Postretirement Benefits | Foreign Currency | Total | ||||||||||||
Balance, December 31, 2012 | $ | (16 | ) | $ | (165 | ) | $ | — | $ | (181 | ) | |||||
Other comprehensive income (loss) before | — | — | (30 | ) | (30 | ) | ||||||||||
reclassifications | ||||||||||||||||
Amounts reclassified from accumulated | 3 | 59 | — | 62 | ||||||||||||
other comprehensive income (2) | ||||||||||||||||
Net other comprehensive income (loss) | 3 | 59 | (30 | ) | 32 | |||||||||||
Balance, December 31, 2013 | $ | (13 | ) | $ | (106 | ) | $ | (30 | ) | $ | (149 | ) | ||||
-1 | All amounts are net of tax. | |||||||||||||||
-2 | The amounts reclassified from accumulated other comprehensive income for cash flow hedges are recorded within interest expense, net on the consolidated statement of income. The amounts reclassified from accumulated other comprehensive income for pension and other postretirement benefits are included in operating expenses on the consolidated statement of income. | |||||||||||||||
Stock-based compensation - Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable requisite service period of the stock award (generally 3 to 5 years) using the straight-line method. Stock-based compensation is included in operating expenses. | ||||||||||||||||
Related party transactions - The Company has an equity method investment in SureScripts, LLC (“SureScripts”), which operates a clinical health information network. The Pharmacy Services and Retail Pharmacy segments utilize this clinical health information network in providing services to its client plan members and retail customers. The Company expensed fees of approximately $48 million, $32 million and $28 million in the years ended December 31, 2013, 2012 and 2011, respectively, for the use of this network. | ||||||||||||||||
The Company’s investment in and equity in earnings in SureScripts for all periods presented is immaterial. | ||||||||||||||||
Income taxes - The Company provides for income taxes currently payable, as well as for those deferred because of timing differences between reported income and expenses for financial statement purposes versus income tax return purposes. Income tax credits are recorded as a reduction of income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax return purposes. Deferred income tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The effect of a change in income tax rates is recognized as income or expense in the period of the change. | ||||||||||||||||
Earnings per common share - Basic earnings per common share is computed by dividing: (i) net earnings by (ii) the weighted average number of common shares outstanding during the year (the “Basic Shares”). Diluted earnings per common share is computed by dividing: (i) net earnings by (ii) Basic Shares plus the additional shares that would be issued assuming that all dilutive stock awards are exercised. Options to purchase 6.2 million, 5.9 million and 30.5 million shares of common stock were outstanding as of December 31, 2013, 2012 and 2011, respectively, but were not included in the calculation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. | ||||||||||||||||
New Accounting Pronouncements | ||||||||||||||||
In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). ASU 2012-02 allows entities to use a qualitative approach to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount and recognize an impairment loss, if any, to the extent the carrying value exceeds its fair value. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material effect on the Company’s consolidated financial statements. | ||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The additional disclosures include: (1) changes in accumulated other comprehensive income balances by component and (2) significant items reclassified out of accumulated other comprehensive income. The changes in accumulated other comprehensive income balance by component will be disaggregated to separately present reclassification adjustments and current-period other comprehensive income. Significant items reclassified out of accumulated other comprehensive income by component are required to be presented either on the face of the statement of income or as separate disclosure in the notes to the financial statements. These additional disclosures may be presented before-tax or net-of-tax as long as the income tax benefit or expense attributed to each component of other comprehensive income and reclassification adjustments is presented in the financial statement or in the notes to the financial statements. ASU 2013-02 is effective for interim and annual periods beginning after December 15, 2012 and should be applied prospectively. The adoption of ASU 2013-02 did not have a material effect on the Company’s consolidated financial statements. The expanded disclosures have been included in Note 1 to these consolidated financial statements. |
Changes_in_Accounting_Principl
Changes in Accounting Principle | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Changes in Accounting Principle | ' |
Changes in Accounting Principle | |
Effective January 1, 2012, the Company changed its methods of accounting for prescription drug inventories in the RPS. Prior to 2012, the Company valued prescription drug inventories at the lower of cost or market on a first-in, first-out (“FIFO”) basis in retail pharmacies using the retail inventory method and in distribution centers using the FIFO cost method. Effective January 1, 2012, all prescription drug inventories in the RPS have been valued at the lower of cost or market using the weighted average cost method. These changes affected approximately 51% of consolidated inventories as of January 1, 2012. | |
These changes were made primarily to bring all of the pharmacy operations of the Company to a common inventory valuation methodology and to provide the Company with better information to manage its retail pharmacy operations. The Company believes the weighted average cost method is preferable to the retail inventory method and the FIFO cost method because it results in greater precision in the determination of cost of revenues and inventories by specific drug product and results in a consistent inventory valuation method for all of the Company’s prescription drug inventories as the PSS’s mail service and specialty pharmacies were already on the weighted average cost method. Most of these mail service and specialty pharmacies in the PSS were acquired in the Company’s 2007 acquisition of Caremark Rx, Inc. | |
The Company recorded the cumulative effect of these changes in accounting principle as of January 1, 2012. The Company determined that retrospective application for periods prior to 2012 is impracticable, as the period-specific information necessary to value prescription drug inventories in the Retail Pharmacy Segment under the weighted average cost method is unavailable. The Company implemented a new pharmacy cost accounting system to value prescription drug inventory as of January 1, 2012 and calculated the cumulative impact. The effect of these changes in accounting principle as of January 1, 2012 was a decrease in inventories of $146 million, an increase in current deferred income tax assets of $57 million and a decrease in retained earnings of $89 million. | |
Had the Company not made these changes in accounting principle, for the year ended December 31, 2012, income from continuing operations and net income attributable to CVS Caremark would have been approximately $19 million lower. For the year ended December 31, 2012, basic and diluted earnings per common share for income from continuing operations attributable to CVS Caremark and net income attributable to CVS Caremark would have been reduced by $0.01. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operations | ' | ||||||||||||
Discontinued Operations | |||||||||||||
On November 1, 2011, the Company sold its TheraCom, L.L.C. (“TheraCom”) subsidiary to AmerisourceBergen Corporation for $250 million, plus a working capital adjustment of $7 million which the Company received in March 2012. TheraCom is a provider of commercialization support services to the biotech and pharmaceutical industries. The TheraCom business had historically been part of the Company’s PSS. The results of the TheraCom business are presented as discontinued operations and have been excluded from both continuing operations and segment results for all periods presented. | |||||||||||||
In connection with certain business dispositions completed between 1991 and 1997, the Company retained guarantees on store lease obligations for a number of former subsidiaries, including Linens ‘n Things which filed for bankruptcy in 2008. The Company’s income (loss) from discontinued operations includes lease-related costs which the Company believes it will likely be required to satisfy pursuant to its Linens ‘n Things lease guarantees. | |||||||||||||
Below is a summary of the results of discontinued operations for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Net revenues of TheraCom | $ | — | $ | — | $ | 650 | |||||||
Income from operations of TheraCom | $ | — | $ | — | $ | 18 | |||||||
Gain on disposal of TheraCom | — | — | 53 | ||||||||||
Loss on disposal of Linens ‘n Things | (12 | ) | (12 | ) | (7 | ) | |||||||
Income tax benefit (provision) | 4 | 5 | (95 | ) | |||||||||
Loss from discontinued operations, net of tax | $ | (8 | ) | $ | (7 | ) | $ | (31 | ) |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Other Intangibles | ' | |||||||||||||||||||||||
Goodwill and Other Intangibles | ||||||||||||||||||||||||
Goodwill and other indefinitely-lived assets are not amortized, but are subject to annual impairment reviews, or more frequent reviews if events or circumstances indicate an impairment may exist. | ||||||||||||||||||||||||
When evaluating goodwill for potential impairment, the Company first compares the fair value of its two reporting units, the PSS and RPS, to their respective carrying amounts. The Company estimates the fair value of its reporting units using a combination of a future discounted cash flow valuation model and a comparable market transaction model. If the estimated fair value of the reporting unit is less than its carrying amount, an impairment loss calculation is prepared. The impairment loss calculation compares the implied fair value of a reporting unit’s goodwill with the carrying amount of its goodwill. If the carrying amount of the goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to the excess. During the third quarter of 2013, the Company performed its required annual goodwill impairment tests. The Company concluded there were no goodwill impairments as of the testing date. The carrying amount of goodwill was $26.5 billion and $26.4 billion as of December 31, 2013 and 2012, respectively (see Note 13 for a breakdown of goodwill by segment). During the year ended December 31, 2013, goodwill increased $12 million in PSS and $135 million in RPS for a total increase of $147 million. The increase in PSS was primarily due to an immaterial acquisition. The $135 million net increase in RPS was due to an immaterial acquisition which increased goodwill by $160 million, which was partially offset by a decrease of $25 million related to foreign currency translation adjustments. | ||||||||||||||||||||||||
Indefinitely-lived intangible assets are tested for impairment by comparing the estimated fair value of the asset to its carrying value. The Company estimates the fair value of its indefinitely-lived trademark using the relief from royalty method under the income approach. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized and the asset is written down to its estimated fair value. During the third quarter of 2013, the Company performed its annual impairment test of the indefinitely-lived trademark and concluded there was no impairment as of the testing date. The carrying amount of its indefinitely-lived trademark was $6.4 billion as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
The Company amortizes intangible assets with finite lives over the estimated useful lives of the respective assets, which have a weighted average useful life of 13.0 years. The weighted average useful lives of the Company’s customer contracts and relationships and covenants not to compete are 12.5 years. The weighted average lives of the Company’s favorable leases and other intangible assets are 17.1 years. Amortization expense for intangible assets totaled $494 million, $486 million and $452 million in 2013, 2012 and 2011, respectively. The anticipated annual amortization expense for these intangible assets for the next five years is $457 million in 2014, $427 million in 2015, $398 million in 2016, $375 million in 2017 and $357 million in 2018. | ||||||||||||||||||||||||
The following table is a summary of the Company’s intangible assets as of December 31: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Trademark (indefinitely-lived) | $ | 6,398 | $ | — | $ | 6,398 | $ | 6,398 | $ | — | $ | 6,398 | ||||||||||||
Customer contracts and relationships and covenants not to compete | 5,840 | (3,083 | ) | 2,757 | 5,745 | (2,812 | ) | 2,933 | ||||||||||||||||
Favorable leases and other | 800 | (426 | ) | 374 | 802 | (380 | ) | 422 | ||||||||||||||||
$ | 13,038 | $ | (3,509 | ) | $ | 9,529 | $ | 12,945 | $ | (3,192 | ) | $ | 9,753 | |||||||||||
Share_Repurchase_Programs
Share Repurchase Programs | 12 Months Ended |
Dec. 31, 2013 | |
Payments for Repurchase of Equity [Abstract] | ' |
Share Repurchase Programs | ' |
Share Repurchase Programs | |
On December 17, 2013, the Company’s Board of Directors authorized a new share repurchase program for up to $6.0 billion of outstanding common stock (the “2013 Repurchase Program”). On September 19, 2012, the Company’s Board of Directors authorized a share repurchase program for up to $6.0 billion of outstanding common stock (the “2012 Repurchase Program”). On August 23, 2011, the Company's Board of Directors authorized a share repurchase program for up to $4.0 billion of outstanding common stock (the “2011 Repurchase Program”). On June 14, 2010, our Board of Directors authorized a share repurchase program for up to $2.0 billion of outstanding common stock (the “2010 Repurchase Program”). The share repurchase authorizations, each of which was effective immediately, permitted the Company to effect repurchases from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions. The 2013 and 2012 Repurchase Programs may be modified or terminated by the Board of Directors at any time. The 2011 and 2010 Repurchase Programs have been completed, as described below. | |
Pursuant to the authorization under the 2012 Repurchase Program, effective October 1, 2013, the Company entered into a $1.7 billion fixed dollar accelerated share repurchase (“ASR”) agreement with Barclays Bank PLC (“Barclays”). Upon payment of the $1.7 billion purchase price on October 1, 2013, the Company received a number of shares of its common stock equal to 50% of the $1.7 billion notional amount of the ASR agreement or approximately 14.9 million shares at a price of $56.88 per share. The Company received approximately 11.7 million shares of common stock on December 30, 2013 at an average price of $63.83 per share, representing the remaining 50% of the $1.7 billion notional amount of the ASR agreement and thereby concluding the agreement. The total of 26.6 million shares of common stock delivered to the Company by Barclays over the term of the October 2013 ASR agreement were placed into treasury stock. | |
Pursuant to the authorizations under the 2011 and 2012 Repurchase Programs, on September 19, 2012, the Company entered into a $1.2 billion fixed dollar ASR agreement with Barclays. Upon payment of the $1.2 billion purchase price on September 20, 2012, the Company received a number of shares of its common stock equal to 50% of the $1.2 billion notional amount of the ASR agreement or approximately 12.6 million shares at a price of $47.71 per share. The Company received approximately 13.0 million shares of common stock on November 16, 2012 at an average price of $46.96 per share, representing the remaining 50% of the $1.2 billion notional amount of the ASR agreement and thereby concluding the agreement. The total of 25.6 million shares of common stock delivered to the Company by Barclays over the term of the September 2012 ASR agreement were placed into treasury stock. | |
Pursuant to the authorization under the 2011 Repurchase Program, on August 24, 2011, the Company entered into a $1.0 billion fixed dollar ASR agreement with Barclays. The ASR agreement contained provisions that establish the minimum and maximum number of shares to be repurchased during its term. Pursuant to the ASR agreement, on August 25, 2011, the Company paid $1.0 billion to Barclays in exchange for Barclays delivering 20.3 million shares of common stock to the Company. On September 16, 2011, upon establishment of the minimum number of shares to be repurchased, Barclays delivered an additional 5.4 million shares of common stock to the Company. At the conclusion of the transaction on December 28, 2011, Barclays delivered a final installment of 1.6 million shares of common stock on December 29, 2011. The aggregate 27.3 million shares of common stock delivered to the Company by Barclays, were placed into treasury stock. This represented all the repurchases that occurred during the year ended December 31, 2011 under the 2011 Repurchase Program. | |
Each of the ASR transactions described above were accounted for as an initial treasury stock transaction and a forward contract. The forward contract was classified as an equity instrument. The initial repurchase of the shares and delivery of the remainder of the shares to conclude each ASR, resulted in an immediate reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted net income per share. | |
During the year ended December 31, 2013, the Company repurchased an aggregate of 66.2 million shares of common stock for approximately $4.0 billion under the 2012 Repurchase Program, which includes shares received from the October 2013 ASR agreement described above. As of December 31, 2013, there remained an aggregate of approximately $6.7 billion available for future repurchases under the 2013 and 2012 Repurchase Programs. | |
During the year ended December 31, 2012, the Company repurchased an aggregate of 95.0 million shares of common stock for approximately $4.3 billion under the 2012 and 2011 Repurchase Programs, which includes shares received from the September 2012 ASR agreement described above. As of December 31, 2012, the 2011 Repurchase Program was complete. | |
During the year ended December 31, 2011, the Company repurchased an aggregate of 56.4 million shares of common stock for approximately $2.0 billion, completing the 2010 Repurchase Program. |
Borrowing_and_Credit_Agreement
Borrowing and Credit Agreements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Borrowing and Credit Agreements | ' | |||||||
Borrowing and Credit Agreements | ||||||||
The following table is a summary of the Company’s borrowings as of December 31: | ||||||||
In millions | 2013 | 2012 | ||||||
Commercial paper | $ | — | $ | 690 | ||||
4.875% senior notes due 2014 | 550 | 550 | ||||||
3.25% senior notes due 2015 | 550 | 550 | ||||||
1.2% senior notes due 2016 | 750 | — | ||||||
6.125% senior notes due 2016 | 421 | 421 | ||||||
5.75% senior notes due 2017 | 1,310 | 1,310 | ||||||
2.25% senior notes due 2018 | 1,250 | — | ||||||
6.6% senior notes due 2019 | 394 | 394 | ||||||
4.75% senior notes due 2020 | 450 | 450 | ||||||
4.125% senior notes due 2021 | 550 | 550 | ||||||
2.75% senior notes due 2022 | 1,250 | 1,250 | ||||||
4.0% senior notes due 2023 | 1,250 | — | ||||||
6.25% senior notes due 2027 | 1,000 | 1,000 | ||||||
6.125% senior notes due 2039 | 1,500 | 1,500 | ||||||
5.75% senior notes due 2041 | 950 | 950 | ||||||
5.3% senior notes due 2043 | 750 | — | ||||||
Enhanced Capital Advantage Preferred Securities due 2062(1) | 41 | 41 | ||||||
Deferred acquisition payables due 2015-2017(2) | 42 | — | ||||||
Mortgage notes payable | 4 | 1 | ||||||
Capital lease obligations | 390 | 171 | ||||||
13,402 | 9,828 | |||||||
Less: | ||||||||
Short-term debt (commercial paper) | — | (690 | ) | |||||
Current portion of long-term debt | (561 | ) | (5 | ) | ||||
$ | 12,841 | $ | 9,133 | |||||
-1 | The Enhanced Capital Advantage Preferred Securities (“ECAPS”) had a stated rate of interest of 6.302% through June 1, 2012, at which time the rate converted to a variable rate which was 2.3% and 2.6% at December 31, 2013 and 2012. | |||||||
-2 | Deferred acquisition payables are denominated in Brazilian real and bear interest at the Brazilian interbank deposit certificate rate which was 9.77% at December 31, 2013. | |||||||
The Company had no commercial paper outstanding as of December 31, 2013. In connection with its commercial paper program, the Company maintains a $1.25 billion, four-year unsecured back-up credit facility, which expires on May 23, 2016, a $1.25 billion, five-year unsecured back-up credit facility, which expires on February 17, 2017, and a $1.0 billion, five-year unsecured back-up credit facility, which expires on May 23, 2018. The credit facilities allow for borrowings at various rates that are dependent, in part, on the Company’s public debt ratings and require the Company to pay a weighted average quarterly facility fee of approximately 0.03%, regardless of usage. As of December 31, 2013, there were no borrowings outstanding under the back-up credit facilities. The weighted average interest rate for short-term debt was 0.27% as of December 31, 2013 and 0.35% as of December 31, 2012. | ||||||||
On December 2, 2013, the Company issued $750 million of 1.2% unsecured senior notes due December 5, 2016; $1.25 billion of 2.25% unsecured senior notes due December 5, 2018; $1.25 billion of 4.0% unsecured senior notes due December 5, 2023; and $750 million of 5.3% unsecured senior notes due December 5, 2043 (the “2013 Notes”) for total proceeds of approximately $4.0 billion, net of discounts and underwriting fees. The 2013 Notes pay interest semi-annually and may be redeemed, in whole at any time, or in part from time to time, at the Company’s option at a defined redemption price plus accrued and unpaid interest to the redemption date. The net proceeds of the 2013 Notes were used to repay commercial paper outstanding at the time of issuance and to fund the acquisition of Coram LLC in January 2014 (See Note 15). The remainder will be used for general corporate purposes. | ||||||||
On November 26, 2012, the Company issued $1.25 billion of 2.75% unsecured senior notes due December 1, 2022 (the “2012 Notes”) for total proceeds of approximately $1.24 billion, net of discounts and underwriting fees. The 2012 Notes pay interest semi-annually and may be redeemed, in whole at any time, or in part from time to time, at the Company’s option at a defined redemption price plus accrued and unpaid interest to the redemption date. The net proceeds of the 2012 Notes were used for general corporate purposes and to repay certain corporate debt. | ||||||||
On November 26, 2012, the Company announced tender offers for any and all of the 6.6% Senior Notes due 2019, and up to a maximum amount of the 6.125% Senior Notes due 2016 and 5.75% Senior Notes due 2017, for up to an aggregate principal amount of $1.0 billion. In December 2012, the Company increased the aggregate principal amount of the tender offers to $1.325 billion and completed the repurchase for the maximum amount. The Company paid a premium of $332 million in excess of the debt principal in connection with the tender offers, wrote off $13 million of unamortized deferred financing costs and incurred $3 million in fees, for a total loss on the early extinguishment of debt of $348 million. The loss was recorded in income from continuing operations on the consolidated statement of income. | ||||||||
In connection with the Company’s acquisition of the UAM Medicare Part D Business in April 2011, the Company assumed $110 million of long-term debt in the form of Trust Preferred Securities that mature through 2037. During the years ended December 31, 2012 and 2011, the Company repaid $50 million and $60 million, respectively, of the Trust Preferred Securities at par. | ||||||||
On May 12, 2011, the Company issued $550 million of 4.125% unsecured senior notes due May 15, 2021 and issued $950 million of 5.75% unsecured senior notes due May 15, 2041 (collectively, the “2011 Notes”) for total proceeds of approximately $1.5 billion, net of discounts and underwriting fees. The 2011 Notes pay interest semi-annually and may be redeemed, in whole at any time, or in part from time to time, at the Company’s option at a defined redemption price plus accrued and unpaid interest to the redemption date. The net proceeds of the 2011 Notes were used to repay commercial paper borrowings and certain other corporate debt, and were used for general corporate purposes. | ||||||||
In December 2011 and July 2012, the Company repurchased $958 million and $1 million of the principal amount of its ECAPS at par. The fees and write-off of deferred issuance costs associated with the early extinguishment of the ECAPS were de minimis. The remaining $41 million of outstanding ECAPS at December 31, 2013 are due in 2062. The ECAPS pay interest semi-annually and may be redeemed at any time, in whole or in part at a defined redemption price plus accrued interest. | ||||||||
The credit facilities, back-up credit facilities, unsecured senior notes and ECAPS contain customary restrictive financial and operating covenants. The covenants do not materially affect the Company’s financial or operating flexibility. | ||||||||
The aggregate maturities of long-term debt for each of the five years subsequent to December 31, 2013 are $561 million in 2014, $576 million in 2015, $1.2 billion in 2016, $1.3 billion in 2017 and $1.3 billion in 2018. |
Leases
Leases | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Leases | ' | |||||||||||
Leases | ||||||||||||
The Company leases most of its retail and mail order locations, ten of its distribution centers and certain corporate offices under non-cancelable operating leases, typically with initial terms of 15 to 25 years and with options that permit renewals for additional periods. The Company also leases certain equipment and other assets under noncancelable operating leases, typically with initial terms of 3 to 10 years. Minimum rent is expensed on a straight-line basis over the term of the lease. In addition to minimum rental payments, certain leases require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed when incurred. | ||||||||||||
The following table is a summary of the Company’s net rental expense for operating leases for the years ended December 31: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Minimum rentals | $ | 2,210 | $ | 2,165 | $ | 2,087 | ||||||
Contingent rentals | 41 | 48 | 49 | |||||||||
2,251 | 2,213 | 2,136 | ||||||||||
Less: sublease income | (21 | ) | (20 | ) | (19 | ) | ||||||
$ | 2,230 | $ | 2,193 | $ | 2,117 | |||||||
The following table is a summary of the future minimum lease payments under capital and operating leases as of December 31, 2013: | ||||||||||||
In millions | Capital | Operating | ||||||||||
Leases | Leases(1) | |||||||||||
2014 | $ | 46 | $ | 2,175 | ||||||||
2015 | 46 | 2,129 | ||||||||||
2016 | 47 | 2,055 | ||||||||||
2017 | 47 | 1,964 | ||||||||||
2018 | 47 | 1,853 | ||||||||||
Thereafter | 556 | 16,914 | ||||||||||
Total future lease payments | 789 | $ | 27,090 | |||||||||
Less: imputed interest | (399 | ) | ||||||||||
Present value of capital lease obligations | $ | 390 | ||||||||||
-1 | Future operating lease payments have not been reduced by minimum sublease rentals of $224 million due in the future under noncancelable subleases. | |||||||||||
The Company finances a portion of its store development program through sale-leaseback transactions. The properties are generally sold at net book value, which generally approximates fair value, and the resulting leases generally qualify and are accounted for as operating leases. The operating leases that resulted from these transactions are included in the above table. The Company does not have any retained or contingent interests in the stores and does not provide any guarantees, other than a guarantee of lease payments, in connection with the sale-leaseback transactions. Proceeds from sale-leaseback transactions totaled $600 million in 2013, $529 million in 2012 and $592 million in 2011. |
Medicare_Part_D
Medicare Part D | 12 Months Ended |
Dec. 31, 2013 | |
Medicare Part D | ' |
Medicare Part D | ' |
Medicare Part D | |
The Company offers Medicare Part D benefits through SilverScript, which has contracted with CMS to be a PDP and, pursuant to the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (“MMA”), must be a risk-bearing entity regulated under state insurance laws or similar statutes. | |
SilverScript is a licensed domestic insurance company under the applicable laws and regulations. Pursuant to these laws and regulations, SilverScript must file quarterly and annual reports with the National Association of Insurance Commissioners (“NAIC”) and certain state regulators, must maintain certain minimum amounts of capital and surplus under a formula established by the NAIC and must, in certain circumstances, request and receive the approval of certain state regulators before making dividend payments or other capital distributions to the Company. The Company does not believe these limitations on dividends and distributions materially impact its financial position. | |
The Company has recorded estimates of various assets and liabilities arising from its participation in the Medicare Part D program based on information in its claims management and enrollment systems. Significant estimates arising from its participation in this program include: (i) estimates of low-income cost subsidy, reinsurance amounts, and coverage gap discount amounts ultimately payable to or receivable from CMS based on a detailed claims reconciliation that will occur in the following year; (ii) an estimate of amounts receivable from or payable to CMS under a risk-sharing feature of the Medicare Part D program design, referred to as the risk corridor and (iii) estimates for claims that have been reported and are in the process of being paid or contested and for our estimate of claims that have been incurred but have not yet been reported. | |
As of December 31, 2013 and 2012, amounts due from CMS included in accounts receivable were $2.4 billion and $0.7 billion, respectively. |
Pension_Plans_and_Other_Postre
Pension Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension Plans and Other Postretirement Benefits | ' |
Pension Plans and Other Postretirement Benefits | |
Defined Contribution Plans | |
The Company sponsors voluntary 401(k) savings plans that cover substantially all employees who meet plan eligibility requirements. The Company makes matching contributions consistent with the provisions of the plans. | |
At the participant’s option, account balances, including the Company’s matching contribution, can be moved without restriction among various investment options. including the Company’s common stock fund under one of the defined contribution plans. The Company also maintains a nonqualified, unfunded Deferred Compensation Plan for certain key employees. This plan provides participants the opportunity to defer portions of their eligible compensation and receive matching contributions equivalent to what they could have received under the CVS Caremark 401(k) Plan absent certain restrictions and limitations under the Internal Revenue Code. The Company’s contributions under the above defined contribution plans were $235 million, $199 million and $187 million in 2013, 2012 and 2011, respectively. | |
Other Postretirement Benefits | |
The Company provides postretirement health care and life insurance benefits to certain retirees who meet eligibility requirements. The Company’s funding policy is generally to pay covered expenses as they are incurred. For retiree medical plan accounting, the Company reviews external data and its own historical trends for health care costs to determine the health care cost trend rates. As of December 31, 2013 and 2012, the Company’s other postretirement benefits have an accumulated postretirement benefit obligation of $27 million and $16 million, respectively. Net periodic benefit costs related to these other postretirement benefits were approximately $11 million in 2013 and $1 million in 2012 and 2011. The net periodic benefit costs for 2013 include a settlement loss of $8 million. | |
Pursuant to various labor agreements, the Company also contributes to multiemployer health and welfare plans that cover certain union-represented employees. The plans provide postretirement health care and life insurance benefits to certain employees who meet eligibility requirements. Total Company contributions to multiemployer health and welfare plans were $55 million, $50 million and $47 million in 2013, 2012 and 2011, respectively. | |
Pension Plans | |
During the year ended December 31, 2013, the Company sponsored ten defined benefit pension plans. Four of the plans are tax-qualified plans that are funded based on actuarial calculations and applicable federal laws and regulations. The other six plans are unfunded nonqualified supplemental retirement plans. Most of the plans were frozen in prior periods. During the years ended December 31, 2012 and 2011, the Company had a total of nine defined benefit pension plans. | |
As of December 31, 2013, the Company’s pension plans had a projected benefit obligation of $694 million and plan assets of $568 million. As of December 31, 2012, the Company’s pension plans had a projected benefit obligation of $758 million and plan assets of $527 million. Actual return on plan assets was $49 million and $62 million in 2013 and 2012, respectively. Net periodic pension costs related to these pension plans were $19 million, $31 million and $49 million in 2013, 2012 and 2011, respectively. The net periodic pension costs for 2012 include a curtailment loss of $2 million. The net periodic pension costs for 2011 include a settlement loss of $25 million due to the impact of lump sum payouts. | |
The discount rate is determined by examining the current yields observed on the measurement date of fixed-interest, high quality investments expected to be available during the period to maturity of the related benefits on a plan by plan basis. The discount rate for the plans was 4.75% in 2013 and 4.0% in 2012. The expected long-term rate of return on plan assets is determined by using the plan’s target allocation and historical returns for each asset class on a plan by plan basis. The expected long-term rate of return for all plans was 7.25% in 2013, 2012 and 2011. | |
Historically, the Company used an investment strategy which emphasized equities in order to produce higher expected returns, and in the long run, lower expected expense and cash contribution requirements. The qualified pension plan asset allocation targets were 50% equity and 50% fixed income for 2012 and 2011. Beginning in 2013, the Company changed its investment strategy to be liability management driven. The qualified pension plan asset allocation targets in 2013 were revised to hold more fixed income investments based on the change in the investment strategy. Investment allocations for the four qualified defined benefit plans range from 60% to 85% in fixed income and 15% to 40% in equities as of December 31, 2013. | |
As of December 31, 2013, the Company’s qualified defined benefit pension plan assets consisted of 23% equity, 76% fixed income and 1% money market securities of which 17% were classified as Level 1 and 83% as Level 2 in the fair value hierarchy. The Company’s qualified defined benefit pension plan assets as of December 31, 2012 consisted of 50% equity, 48% fixed income and 2% money market securities of which 84% were classified as Level 1 and 16% as Level 2 in the fair value hierarchy. | |
The Company contributed $33 million, $36 million and $92 million to the pension plans during 2013, 2012 and 2011, respectively. The Company plans to make approximately $41 million in contributions to the pension plans during 2014. | |
The Company also contributes to a number of multiemployer pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer pension plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and (iii) if the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | |
None of the multiemployer pension plans in which the Company participates are individually significant to the Company. Total Company contributions to multiemployer pension plans were $13 million, $12 million and $11 million in 2013, 2012 and 2011, respectively. |
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Incentive Plans | ' | |||||||||||||
Stock Incentive Plans | ' | |||||||||||||
Stock Incentive Plans | ||||||||||||||
Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable requisite service period of the stock award (generally three to five years) using the straight-line method. Stock-based compensation costs are included in selling, general and administrative expenses. | ||||||||||||||
Compensation expense related to stock options, which includes the 2007 Employee Stock Purchase Plan (the “2007 ESPP”) totaled $100 million, $102 million and $112 million for 2013, 2012 and 2011, respectively. The recognized tax benefit was $32 million, $33 million and $38 million for 2013, 2012 and 2011, respectively. Compensation expense related to restricted stock awards totaled $41 million, $30 million and $21 million for 2013, 2012 and 2011, respectively. | ||||||||||||||
The 2007 ESPP provides for the purchase of up to 15 million shares of common stock. In March 2013, the Board of Directors approved an amendment to the 2007 ESPP to provide an additional 15 million shares of common stock for issuance. Under the 2007 ESPP, eligible employees may purchase common stock at the end of each six month offering period at a purchase price equal to 85% of the lower of the fair market value on the first day or the last day of the offering period. During 2013, approximately 2 million shares of common stock were purchased under the provisions of the 2007 ESPP at an average price of $41.44 per share. As of December 31, 2013, approximately 17 million shares of common stock were available for issuance under the 2007 ESPP. | ||||||||||||||
The fair value of stock-based compensation associated with the 2007 ESPP is estimated on the date of grant (the first day of the six month offering period) using the Black-Scholes Option Pricing Model. | ||||||||||||||
The following table is a summary of the assumptions used to value the ESPP awards for each of the respective periods: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield(1) | 0.86 | % | 0.73 | % | 0.69 | % | ||||||||
Expected volatility(2) | 16.94 | % | 22.88 | % | 20.42 | % | ||||||||
Risk-free interest rate(3) | 0.1 | % | 0.1 | % | 0.15 | % | ||||||||
Expected life (in years)(4) | 0.5 | 0.5 | 0.5 | |||||||||||
Weighted-average grant date fair value | $ | 10.08 | $ | 9.22 | $ | 7.21 | ||||||||
-1 | The dividend yield is calculated based on semi-annual dividends paid and the fair market value of the Company’s stock at the grant date. | |||||||||||||
-2 | The expected volatility is based on the historical volatility of the Company’s daily stock market prices over the previous six month period. | |||||||||||||
-3 | The risk-free interest rate is based on the Treasury constant maturity interest rate whose term is consistent with the expected term of ESPP options (i.e., 6 months). | |||||||||||||
-4 | The expected life is based on the semi-annual purchase period. | |||||||||||||
In May 2010, the Company’s Board of Directors adopted and the shareholders approved the 2010 Incentive Compensation Plan (the “2010 ICP”). The terms of the 2010 ICP provide for grants of annual incentive and long-term performance awards to executive officers and other officers and employees of the Company or any subsidiary of the Company. Payment of such annual incentive and long-term performance awards will be in cash, stock, other awards or other property, at the discretion of the Management Planning and Development Committee of the Company’s Board of Directors. The 2010 ICP allows for a maximum of 74 million shares to be reserved and available for grants. The 2010 ICP is the only compensation plan under which the Company grants stock options, restricted stock and other stock-based awards to its employees, with the exception of the Company’s 2007 ESPP. In November 2012, the Company’s Board of Director’s approved an amendment to the 2010 ICP to eliminate the share recycling provision of the 2010 ICP. As of December 31, 2013, there were approximately 38 million shares available for future grants under the 2010 ICP. | ||||||||||||||
The Company’s restricted awards are considered non-vested share awards and require no payment from the employee. Compensation cost is recorded based on the market price on the grant date and is recognized on a straight-line basis over the requisite service period. The Company granted 1,715,000, 1,811,000 and 1,121,000 restricted stock units with a weighted average fair value of $54.30, $44.80 and $34.84 in 2013, 2012 and 2011, respectively. As of December 31, 2013, there was $89 million of total unrecognized compensation cost related to the restricted stock units that are expected to vest. These costs are expected to be recognized over a weighted-average period of 2.1 years. The total fair value of restricted shares vested during 2013, 2012 and 2011 was $41 million, $81 million and $33 million, respectively. | ||||||||||||||
The following table is a summary of the restricted stock unit and restricted share award activity for the year ended December 31, 2013. | ||||||||||||||
Units in thousands | Units | Weighted Average | ||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at beginning of year | 2,350 | $ | 33.32 | |||||||||||
Granted | 1,715 | 54.3 | ||||||||||||
Vested | (802 | ) | 54.58 | |||||||||||
Forfeited | (242 | ) | 46.17 | |||||||||||
Nonvested at end of year | 3,021 | $ | 38.56 | |||||||||||
All grants under the 2010 ICP are awarded at fair market value on the date of grant. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and stock-based compensation is recognized on a straight-line basis over the requisite service period. Options granted through 2010 generally become exercisable over a three-year period from the grant date. Beginning in 2011, options granted generally become exercisable over a four-year period from the grant date. Options generally expire seven years after the grant date. | ||||||||||||||
Excess tax benefits of $62 million, $28 million and $21 million were included in financing activities in the accompanying consolidated statements of cash flow during 2013, 2012 and 2011, respectively. Cash received from stock options exercised, which includes the 2007 ESPP, totaled $500 million, $836 million and $431 million during 2013, 2012 and 2011, respectively. The total intrinsic value of options exercised was $282 million, $321 million and $161 million in 2013, 2012 and 2011, respectively. The total fair value of options vested during 2013, 2012 and 2011 was $329 million, $386 million and $452 million, respectively. | ||||||||||||||
The fair value of each stock option is estimated using the Black-Scholes option pricing model based on the following assumptions at the time of grant: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield(1) | 1.65 | % | 1.44 | % | 1.43 | % | ||||||||
Expected volatility(2) | 30.96 | % | 32.49 | % | 32.62 | % | ||||||||
Risk-free interest rate(3) | 0.73 | % | 0.84 | % | 1.81 | % | ||||||||
Expected life (in years)(4) | 4.7 | 4.7 | 4.7 | |||||||||||
Weighted-average grant date fair value | $ | 12.5 | $ | 11.12 | $ | 9.19 | ||||||||
-1 | The dividend yield is based on annual dividends paid and the fair market value of the Company’s stock at the grant date. | |||||||||||||
-2 | The expected volatility is estimated using the Company’s historical volatility over a period equal to the expected life of each option grant after adjustments for infrequent events such as stock splits. | |||||||||||||
-3 | The risk-free interest rate is selected based on yields from U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the options being valued. | |||||||||||||
-4 | The expected life represents the number of years the options are expected to be outstanding from grant date based on historical option holder exercise experience. | |||||||||||||
As of December 31, 2013, unrecognized compensation expense related to unvested options totaled $170 million, which the Company expects to be recognized over a weighted-average period of 2.1 years. After considering anticipated forfeitures, the Company expects approximately 19 million of the unvested options to vest over the requisite service period. | ||||||||||||||
The following table is a summary of the Company’s stock option activity for the year ended December 31, 2013: | ||||||||||||||
Shares in thousands | Shares | Weighted Average | Weighted Average | Aggregate Intrinsic | ||||||||||
Exercise Price | Remaining | Value | ||||||||||||
Contractual | ||||||||||||||
Term | ||||||||||||||
Outstanding at December 31, 2012 | 40,929 | $ | 36.57 | 4.34 | $ | 482,249,000 | ||||||||
Granted | 8,556 | $ | 54.6 | — | — | |||||||||
Exercised | (12,568 | ) | $ | 35.04 | — | — | ||||||||
Forfeited | (1,619 | ) | $ | 41.87 | — | — | ||||||||
Expired | (560 | ) | $ | 31.18 | — | — | ||||||||
Outstanding at December 31, 2013 | 34,738 | $ | 41.4 | 4.39 | $ | 1,047,976,191 | ||||||||
Exercisable at December 31, 2013 | 14,573 | $ | 35.21 | 2.95 | $ | 529,832,395 | ||||||||
Vested and expected to vest at December | 33,601 | $ | 41.17 | 4.34 | $ | 1,021,486,782 | ||||||||
31, 2013 |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The income tax provision for continuing operations consisted of the following for the respective years: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Current: | ||||||||||||
Federal | $ | 2,623 | $ | 2,226 | $ | 1,807 | ||||||
State | 437 | 410 | 338 | |||||||||
3,060 | 2,636 | 2,145 | ||||||||||
Deferred: | ||||||||||||
Federal | (115 | ) | (182 | ) | 101 | |||||||
State | (17 | ) | (18 | ) | 12 | |||||||
(132 | ) | (200 | ) | 113 | ||||||||
Total | $ | 2,928 | $ | 2,436 | $ | 2,258 | ||||||
The following table is a reconciliation of the statutory income tax rate to the Company’s effective income tax rate for continuing operations for the respective years: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 4 | 3.9 | 3.9 | |||||||||
Other | (0.1 | ) | (0.3 | ) | 0.4 | |||||||
Effective income tax rate | 38.9 | % | 38.6 | % | 39.3 | % | ||||||
The following table is a summary of the significant components of the Company’s deferred tax assets and liabilities as of December 31: | ||||||||||||
In millions | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Lease and rents | $ | 344 | $ | 336 | ||||||||
Inventories | — | 141 | ||||||||||
Employee benefits | 213 | 202 | ||||||||||
Allowance for doubtful accounts | 79 | 137 | ||||||||||
Retirement benefits | 172 | 115 | ||||||||||
Net operating losses | 10 | 5 | ||||||||||
Depreciation | 192 | — | ||||||||||
Other | 598 | 430 | ||||||||||
Valuation allowance | (3 | ) | — | |||||||||
Total deferred tax assets | 1,605 | 1,366 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Inventories | (69 | ) | — | |||||||||
Depreciation and amortization | (4,512 | ) | (4,457 | ) | ||||||||
Total deferred tax liabilities | (4,581 | ) | (4,457 | ) | ||||||||
Net deferred tax liabilities | $ | (2,976 | ) | $ | (3,091 | ) | ||||||
Net deferred tax assets (liabilities) are presented on the consolidated balance sheets as follows: | ||||||||||||
In millions | 2013 | 2012 | ||||||||||
Deferred tax assets—current | $ | 902 | $ | 693 | ||||||||
Deferred tax assets—noncurrent (included in other assets) | 23 | — | ||||||||||
Deferred tax liabilities—noncurrent | (3,901 | ) | (3,784 | ) | ||||||||
Net deferred tax liabilities | $ | (2,976 | ) | $ | (3,091 | ) | ||||||
The Company believes it is more likely than not the deferred tax assets will be realized during future periods. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 80 | $ | 38 | $ | 35 | ||||||
Additions based on tax positions related to the current year | 19 | 15 | 3 | |||||||||
Additions based on tax positions related to prior years | 37 | 42 | 13 | |||||||||
Reductions for tax positions of prior years | (1 | ) | (2 | ) | — | |||||||
Expiration of statutes of limitation | (17 | ) | (12 | ) | (7 | ) | ||||||
Settlements | (1 | ) | (1 | ) | (6 | ) | ||||||
Ending balance | $ | 117 | $ | 80 | $ | 38 | ||||||
The Company and most of its subsidiaries are subject to U.S. federal income tax as well as income tax of numerous state and local jurisdictions. The Internal Revenue Service (“IRS”) is currently examining the Company's 2012 and 2013 consolidated U.S. federal income tax returns under its Compliance Assurance Process (“CAP”) program. The CAP program is a voluntary program under which participating taxpayers work collaboratively with the IRS to identify and resolve potential tax issues through open, cooperative and transparent interaction prior to the filing of their federal income tax return. | ||||||||||||
The Company and its subsidiaries are also currently under income tax examinations by a number of state and local tax authorities. As of December 31, 2013, no examination has resulted in any proposed adjustments that would result in a material change to the Company's results of operations, financial condition or liquidity. | ||||||||||||
Substantially all material state and local income tax matters have been concluded for fiscal years through 2008. The Company and its subsidiaries anticipate that a number of state and local income tax examinations will be concluded and statutes of limitation for open years will expire over the next twelve months, which may result in the utilization or reduction of the Company’s reserve for uncertain tax positions of up to approximately $13 million. | ||||||||||||
The Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense. During the years ended December 31, 2013, 2012 and 2011, the Company recognized interest of approximately $4 million, $4 million and $2 million, respectively. The Company had approximately $10 million accrued for interest and penalties as of December 31, 2013 and 2012. | ||||||||||||
There are no material uncertain tax positions as of December 31, 2013 the ultimate deductibility of which is highly certain but for which there is uncertainty about the timing of such deductibility. If present, such items would impact deferred tax accounting, not the annual effective income tax rate, and would accelerate the payment of cash to the taxing authority to a period earlier than expected. | ||||||||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate is approximately $95 million, after considering the federal benefit of state income taxes. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
Commitments and Contingencies | ||
Lease Guarantees | ||
Between 1991 and 1997, the Company sold or spun off a number of subsidiaries, including Bob’s Stores, Linens ‘n Things, Marshalls, Kay-Bee Toys, Wilsons, This End Up and Footstar. In many cases, when a former subsidiary leased a store, the Company provided a guarantee of the store’s lease obligations. When the subsidiaries were disposed of, the Company’s guarantees remained in place, although each initial purchaser has agreed to indemnify the Company for any lease obligations the Company was required to satisfy. If any of the purchasers or any of the former subsidiaries were to become insolvent and failed to make the required payments under a store lease, the Company could be required to satisfy these obligations. | ||
As of December 31, 2013, the Company guaranteed approximately 73 such store leases (excluding the lease guarantees related to Linens ‘n Things, which are discussed in Note 3), with the maximum remaining lease term extending through 2026. Management believes the ultimate disposition of any of the remaining guarantees will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or future cash flows. | ||
Legal Matters | ||
The Company is a party to legal proceedings, investigations and claims in the ordinary course of its business, including the matters described below. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. None of the Company’s accruals for outstanding legal matters are material individually or in the aggregate to the Company’s financial position. | ||
The Company's contingencies are subject to significant uncertainties, including, among other factors: (i) the procedural status of pending matters; (ii) whether class action status is sought and certified; (iii) whether asserted claims or allegations will survive dispositive motion practice; (iv) the extent of potential damages, fines or penalties, which are often unspecified or indeterminate; (v) the impact of discovery on the legal process; (vi) whether novel or unsettled legal theories are at issue; (vii) the settlement posture of the parties, and/or (viii) in the case of certain government agency investigations, whether a sealed qui tam lawsuit (“whistleblower” action) has been filed and whether the government agency makes a decision to intervene in the lawsuit following investigation. | ||
Except as otherwise noted, the Company cannot predict with certainty the timing or outcome of the legal matters described below, and is unable to reasonably estimate a possible loss or range of possible loss in excess of amounts already accrued for these matters. | ||
• | Caremark (the term “Caremark” being used herein to generally refer to any one or more pharmacy benefit management subsidiaries of the Company, as applicable) was a defendant in a qui tam lawsuit initially filed by a relator on behalf of various state and federal government agencies in Texas federal court in 1999. The case was unsealed in May 2005. The case sought monetary damages and alleged that Caremark’s processing of Medicaid and certain other government claims on behalf of its clients (which allegedly resulted in underpayments from our clients to the applicable government agencies) on one of Caremark’s adjudication platforms violated applicable federal or state false claims acts and fraud statutes. The United States and the States of Texas, Tennessee, Florida, Arkansas, Louisiana and California intervened in the lawsuit, but Tennessee and Florida withdrew from the lawsuit in August 2006 and May 2007, respectively. Thereafter, in 2008, the Company prevailed on several motions for partial summary judgment and, following an appellate ruling from the Fifth Circuit Court of Appeals in 2011 which affirmed in part and reversed in part these prior rulings, the claims asserted in the case against Caremark were substantially narrowed. In December 2013, this case was dismissed following a settlement between the Company and the plaintiffs. | |
In a related matter, in December 2007, the Company received a document subpoena from the Office of Inspector General (“OIG”) within the U.S. Department of Health and Human Services (“HHS”), requesting information relating to the processing of Medicaid and other government agency claims on a different adjudication platform of Caremark. The Company has provided documents and other information in response to this request for information. The Company has been conducting discussions with the United States Department of Justice (“DOJ”) and the OIG regarding a possible settlement of this matter. | ||
• | Caremark was named in a putative class action lawsuit filed in October 2003 in Alabama state court by John Lauriello, purportedly on behalf of participants in the 1999 settlement of various securities class action and derivative lawsuits against Caremark and others. Other defendants include insurance companies that provided coverage to Caremark with respect to the settled lawsuits. The Lauriello lawsuit seeks approximately $3.2 billion in compensatory damages plus other non-specified damages based on allegations that the amount of insurance coverage available for the settled lawsuits was misrepresented and suppressed. A similar lawsuit was filed in November 2003 by Frank McArthur, also in Alabama state court, naming as defendants Caremark, several insurance companies, attorneys and law firms involved in the 1999 settlement. This lawsuit was stayed as a later-filed class action, but McArthur was subsequently allowed to intervene in the Lauriello action. Following the close of class discovery, the trial court entered an Order on August 15, 2012 that granted the plaintiffs’ motion to certify a class pursuant to Alabama Rule of civil Procedures 23(b)(3) but denied their request that the class also be certified pursuant to Rule 23(b)(1). In addition, the August 15, 2012 Order appointed class representatives and class counsel. The defendants' appeal and plaintiffs' cross-appeal are pending before the Alabama Supreme Court. The proceedings in the trial court are stayed by statute pending a decision on the appeal and cross-appeal by the Alabama Supreme Court. | |
• | Various lawsuits have been filed alleging that Caremark has violated applicable antitrust laws in establishing and maintaining retail pharmacy networks for client health plans. In August 2003, Bellevue Drug Co., Robert Schreiber, Inc. d/b/a Burns Pharmacy and Rehn-Huerbinger Drug Co. d/b/a Parkway Drugs #4, together with Pharmacy Freedom Fund and the National Community Pharmacists Association filed a putative class action against Caremark in Pennsylvania federal court, seeking treble damages and injunctive relief. This case was initially sent to arbitration based on the contract terms between the pharmacies and Caremark. In October 2003, two independent pharmacies, North Jackson Pharmacy, Inc. and C&C, Inc. d/b/a Big C Discount Drugs, Inc., filed a putative class action complaint in Alabama federal court against Caremark and two PBM competitors, seeking treble damages and injunctive relief. The North Jackson Pharmacy case against two of the Caremark entities named as defendants was transferred to Illinois federal court, and the case against a separate Caremark entity was sent to arbitration based on contract terms between the pharmacies and Caremark. The Bellevue arbitration was then stayed by the parties pending developments in the North Jackson Pharmacy court case. | |
In August 2006, the Bellevue case and the North Jackson Pharmacy case were both transferred to Pennsylvania federal court by the Judicial Panel on Multidistrict Litigation for coordinated and consolidated proceedings with other cases before the panel, including cases against other PBMs. Caremark appealed the decision which vacated an order compelling arbitration and staying the proceedings in the Bellevue case and, following the appeal, the Court of Appeals reinstated the order compelling arbitration of the Bellevue case. Following remand, plaintiffs in the Bellevue case sought dismissal of their complaint to permit an immediate appeal of the reinstated order compelling arbitration and pursued an appeal to the Third Circuit Court of Appeals. In November 2012, the Third Circuit Court reversed the district court ruling and directed the parties to proceed in federal court. Motions for class certification in the coordinated cases within the multidistrict litigation, including the North Jackson Pharmacy case, remain pending, and the court has permitted certain additional class discovery and briefing. The consolidated action is now known as the In Re Pharmacy Benefit Managers Antitrust Litigation. | ||
• | In November 2009, a securities class action lawsuit was filed in the United States District Court for the District of Rhode Island purportedly on behalf of purchasers of CVS Caremark Corporation stock between May 5, 2009 and November 4, 2009. Plaintiffs subsequently amended the lawsuit to allege a class period beginning October 30, 2008. The lawsuit names the Company and certain officers as defendants and includes allegations of securities fraud relating to public disclosures made by the Company concerning the PBM business and allegations of insider trading. In addition, a shareholder derivative lawsuit was filed in December 2009 in the same court against the directors and certain officers of the Company. This lawsuit, which was stayed pending developments in the related securities class action, includes allegations of, among other things, securities fraud, insider trading and breach of fiduciary duties and further alleges that the Company was damaged by the purchase of stock at allegedly inflated prices under its share repurchase program. In January 2011, both lawsuits were transferred to the United States District Court for the District of New Hampshire. In June 2012, the court granted the Company’s motion to dismiss the securities class action. The plaintiffs subsequently appealed the court’s ruling on the motion to dismiss. In May 2013, the First Circuit Court of Appeals vacated the prior ruling and remanded the case to the district court for further proceedings. In December 2013, the district court denied the Company’s renewed motion to dismiss the lawsuit. The derivative lawsuit will remain stayed until the Company answers the securities class action complaint. | |
• | In March 2010, the Company learned that various State Attorneys General offices and certain other government agencies were conducting a multi-state investigation of certain of the Company’s business practices similar to those being investigated at that time by the U.S. Federal Trade Commission (“FTC”). Twenty-eight states, the District of Columbia and the County of Los Angeles are known to be participating in this investigation. The prior FTC investigation, which commenced in August 2009, was officially concluded in May 2012 when the consent order entered into between the FTC and the Company became final. The Company has cooperated in the multi-state investigation. | |
• | In March 2010, the Company received a subpoena from the OIG requesting information about programs under which the Company has offered customers remuneration conditioned upon the transfer of prescriptions for drugs or medications to the Company’s pharmacies in the form of gift cards, cash, non-prescription merchandise or discounts or coupons for non-prescription merchandise. The subpoena relates to an investigation of possible false or otherwise improper claims for payment under the Medicare and Medicaid programs. The Company has provided documents and other information in response to this request for information. | |
• | The Company received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) in February 2011 and subsequently received additional subpoenas and other requests for information. The SEC's requests related to, among other things, public disclosures made by the Company during 2009, transactions in the Company’s securities by certain officers and employees of the Company during 2009 and the purchase accounting for the Longs Drug Stores acquisition. The Company has provided the documents and other information requested by the SEC and has been cooperating with the SEC in this investigation. The Company has reached an agreement in principle with the staff of the Boston Regional Office of the SEC to settle certain allegations that, during the third and fourth quarters of 2009, the Company violated certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, including certain anti-fraud provisions of those statutes. The agreement in principle will be entered into by the Company on a “no admit or deny” basis, and the Company will not be restating its financial statements for any reporting period. The Company has agreed to pay a $20 million civil penalty when the settlement is finalized, and this amount has been fully reserved in the Company’s financial statements. The Company will continue to cooperate with the SEC to document the settlement terms, and the settlement remains subject to approval by the Commission and federal court as required. | |
• | In January 2012, the United States District Court for the Eastern District of Pennsylvania unsealed a first amended qui tam complaint filed in August 2011 by an individual relator, who is described in the complaint as having once been employed by a firm providing pharmacy prescription benefit audit and recovery services. The complaint seeks monetary damages and alleges that Caremark's processing of Medicare claims on behalf of one of its clients violated the federal false claims act. The United States, acting through the U.S. Attorney's Office in Philadelphia, Pennsylvania, declined to intervene in the lawsuit. Caremark filed a motion to dismiss the amended complaint and the DOJ filed a Statement of Interest with regard to Caremark's motion to dismiss. In December 2012, the court denied Caremark's motion to dismiss the amended complaint. | |
• | In January 2012, the Company received a subpoena from the OIG requesting information about its Health Savings Pass program, a prescription drug discount program for uninsured or underinsured individuals, in connection with an investigation of possible false or otherwise improper claims for payment involving HHS programs. In February 2012, the Company also received a civil investigative demand from the Office of the Attorney General of the State of Texas requesting a copy of information produced under this OIG subpoena and other information related to prescription drug claims submitted by the Company's pharmacies to Texas Medicaid for reimbursement. The Company is providing documents and other information in response to these requests for information. | |
• | A purported shareholder derivative action was filed on behalf of nominal defendant CVS Caremark Corporation against certain of the Company’s officers and members of its Board of Directors. The action, which alleged a single claim for breach of fiduciary duty relating to the Company's alleged failure to properly implement internal regulatory controls to comply with the Controlled Substances Act and the Combat Methamphetamine Epidemic Act, was originally filed in June 2012. In addition, an amended complaint was filed in November 2012 and a Supplemental Complaint was filed in April 2013. In October 2013, the court granted the Company's motion to dismiss and entered judgment dismissing the action, without prejudice. Following dismissal of the action, the same purported shareholder sent a letter to the Company's Board of Directors demanding that the Board investigate her allegations and pursue legal action against certain directors and officers of the Company. A committee of the Board of Directors is conducting a review and intends to respond to the letter as appropriate. | |
• | In November 2012, the Company received a subpoena from the OIG requesting information concerning automatic refill programs used by pharmacies to refill prescriptions for customers. The Company has been cooperating and providing documents and other information in response to this request for information. | |
The Company is also a party to other legal proceedings, inquiries and audits arising in the normal course of its business, none of which is expected to be material to the Company. The Company can give no assurance, however, that its business, financial condition and results of operations will not be materially adversely affected, or that the Company will not be required to materially change its business practices, based on: (i) future enactment of new health care or other laws or regulations; (ii) the interpretation or application of existing laws or regulations as they may relate to the Company's business, the pharmacy services, retail pharmacy or retail clinic industries or to the health care industry generally; (iii) pending or future federal or state governmental investigations of the Company’s business or the pharmacy services, retail pharmacy or retail clinic industry or of the health care industry generally; (iv) institution of government enforcement actions against the Company; (v) adverse developments in any pending qui tam lawsuit against the Company, whether sealed or unsealed, or in any future qui tam lawsuit that may be filed against the Company; or (vi) adverse developments in other pending or future legal proceedings against the Company or affecting the pharmacy services, retail pharmacy or retail clinic industry or the health care industry generally. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Segment Reporting | ||||||||||||||||||||
The Company currently has three reportable segments: Pharmacy Services, Retail Pharmacy and Corporate. | ||||||||||||||||||||
The Company evaluates its Pharmacy Services and Retail Pharmacy segment performance based on net revenue, gross profit and operating profit before the effect of certain intersegment activities and charges. The Company evaluates the performance of its Corporate Segment based on operating expenses before the effect of discontinued operations and certain intersegment activities and charges. See Note 1 for a description of the Pharmacy Services, Retail Pharmacy and Corporate segments and related significant accounting policies. | ||||||||||||||||||||
The following table is a reconciliation of the Company’s business segments to the consolidated financial statements: | ||||||||||||||||||||
In millions | Pharmacy Services | Retail Pharmacy | Corporate | Intersegment | Consolidated | |||||||||||||||
Segment(1)(2) | Segment(2) | Segment | Eliminations(2) | Totals | ||||||||||||||||
2013:00:00 | ||||||||||||||||||||
Net revenues | $ | 76,208 | $ | 65,618 | $ | — | $ | (15,065 | ) | $ | 126,761 | |||||||||
Gross profit | 4,237 | 20,112 | — | (566 | ) | 23,783 | ||||||||||||||
Operating profit | 3,086 | 6,268 | (751 | ) | (566 | ) | 8,037 | |||||||||||||
Depreciation and amortization | 560 | 1,217 | 93 | — | 1,870 | |||||||||||||||
Total assets | 38,343 | 30,191 | 4,420 | (1,428 | ) | 71,526 | ||||||||||||||
Goodwill | 19,658 | 6,884 | — | — | 26,542 | |||||||||||||||
Additions to property and equipment | 313 | 1,610 | 61 | — | 1,984 | |||||||||||||||
2012:00:00 | ||||||||||||||||||||
Net revenues | $ | 73,444 | $ | 63,641 | $ | — | $ | (13,965 | ) | $ | 123,120 | |||||||||
Gross profit | 3,808 | 19,091 | — | (411 | ) | 22,488 | ||||||||||||||
Operating profit | 2,679 | 5,636 | (694 | ) | (411 | ) | 7,210 | |||||||||||||
Depreciation and amortization | 517 | 1,153 | 83 | — | 1,753 | |||||||||||||||
Total assets | 36,057 | 29,492 | 1,408 | (736 | ) | 66,221 | ||||||||||||||
Goodwill | 19,646 | 6,749 | — | — | 26,395 | |||||||||||||||
Additions to property and equipment | 422 | 1,555 | 53 | — | 2,030 | |||||||||||||||
2011:00:00 | ||||||||||||||||||||
Net revenues | $ | 58,874 | $ | 59,579 | $ | — | $ | (11,373 | ) | $ | 107,080 | |||||||||
Gross profit | 3,279 | 17,469 | — | (186 | ) | 20,562 | ||||||||||||||
Operating profit | 2,220 | 4,913 | (616 | ) | (186 | ) | 6,331 | |||||||||||||
Depreciation and amortization | 433 | 1,060 | 75 | — | 1,568 | |||||||||||||||
Total assets | 35,704 | 28,632 | 1,121 | (605 | ) | 64,852 | ||||||||||||||
Goodwill | 19,657 | 6,801 | — | — | 26,458 | |||||||||||||||
Additions to property and equipment | 461 | 1,353 | 58 | — | 1,872 | |||||||||||||||
-1 | Net revenues of the Pharmacy Services Segment include approximately $7.9 billion, $8.4 billion and $7.9 billion of Retail co-payments for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||
-2 | Intersegment eliminations relate to two types of transactions: (i) Intersegment revenues that occur when Pharmacy Services Segment clients use Retail Pharmacy Segment stores to purchase covered products. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue on a standalone basis and (ii) Intersegment revenues, gross profit and operating profit that occur when Pharmacy Services Segment clients, through the Company’s intersegment activities (such as the Maintenance Choice program), elect to pick up their maintenance prescriptions at Retail Pharmacy Segment stores instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue, gross profit and operating profit on a standalone basis. Beginning in the fourth quarter of 2011, the Maintenance Choice eliminations reflect all discounts available for the purchase of mail order prescription drugs. The following amounts are eliminated in consolidation in connection with the item (ii) intersegment activity: net revenues of $4.3 billion, $3.4 billion and $2.6 billion for the years ended December 31, 2013, 2012 and 2011, respectively; gross profit and operating profit of $566 million, $411 million and $186 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Common Share | ' | |||||||||||
Earnings Per Common Share | ||||||||||||
The following is a reconciliation of basic and diluted earnings per common share for the respective years: | ||||||||||||
In millions, except per share amounts | 2013 | 2012 | 2011 | |||||||||
Numerator for earnings per common share calculation: | ||||||||||||
Income from continuing operations | $ | 4,600 | $ | 3,869 | $ | 3,489 | ||||||
Net loss attributable to noncontrolling interest | — | 2 | 4 | |||||||||
Income from continuing operations attributable to CVS Caremark, basic | 4,600 | 3,871 | 3,493 | |||||||||
Loss from discontinued operations, net of tax | (8 | ) | (7 | ) | (31 | ) | ||||||
Net income attributable to CVS Caremark, basic and diluted | $ | 4,592 | $ | 3,864 | $ | 3,462 | ||||||
Denominator for earnings per common share calculation: | ||||||||||||
Weighted average common shares, basic | 1,217 | 1,271 | 1,338 | |||||||||
Stock options | 8 | 8 | 8 | |||||||||
Restricted stock units | 1 | 1 | 1 | |||||||||
Weighted average common shares, diluted | 1,226 | 1,280 | 1,347 | |||||||||
Basic earnings per common share: | ||||||||||||
Income from continuing operations attributable to CVS Caremark | $ | 3.78 | $ | 3.05 | $ | 2.61 | ||||||
Loss from discontinued operations attributable to CVS Caremark | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income attributable to CVS Caremark | $ | 3.77 | $ | 3.04 | $ | 2.59 | ||||||
Diluted earnings per common share: | ||||||||||||
Income from continuing operations attributable to CVS Caremark | $ | 3.75 | $ | 3.02 | $ | 2.59 | ||||||
Loss from discontinued operations attributable to CVS Caremark | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income attributable to CVS Caremark | $ | 3.74 | $ | 3.02 | $ | 2.57 | ||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
15 Subsequent Event | |
On January 16, 2014, the Company acquired Coram LLC (“Coram”), the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group Inc. for approximately $2.1 billion. Coram is one of the nation's largest providers of comprehensive infusion services, caring for approximately 165,000 patients annually. Coram has approximately 4,600 employees, including approximately 600 nurses and 250 dietitians, operating primarily through 85 branch locations and six centers of excellence for patient intake. Coram’s results of operations will be included in the Company's Pharmacy Services Segment beginning January 16, 2014. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | |||||||||||||||||||
Quarterly Financial Information (Unaudited) | ||||||||||||||||||||
In millions, except per share amounts | First | Second | Third | Fourth | Year | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2013:00:00 | ||||||||||||||||||||
Net revenues | $ | 30,751 | $ | 31,248 | $ | 31,932 | $ | 32,830 | $ | 126,761 | ||||||||||
Gross profit | 5,577 | 5,841 | 6,027 | 6,338 | 23,783 | |||||||||||||||
Operating profit | 1,694 | 1,972 | 2,154 | 2,217 | 8,037 | |||||||||||||||
Income from continuing operations | 954 | 1,125 | 1,255 | 1,266 | 4,600 | |||||||||||||||
Loss from discontinued operations, net of tax | — | (1 | ) | (6 | ) | (1 | ) | (8 | ) | |||||||||||
Net income | 954 | 1,124 | 1,249 | 1,265 | 4,592 | |||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
Net income attributable to CVS Caremark | $ | 954 | $ | 1,124 | $ | 1,249 | $ | 1,265 | $ | 4,592 | ||||||||||
Basic earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.77 | $ | 0.92 | $ | 1.03 | $ | 1.06 | $ | 3.78 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Loss from discontinued operations attributable to | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.77 | $ | 0.92 | $ | 1.03 | $ | 1.06 | $ | 3.77 | ||||||||||
Diluted Earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.77 | $ | 0.91 | $ | 1.02 | $ | 1.05 | $ | 3.75 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Loss from discontinued operations attributable to | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.77 | $ | 0.91 | $ | 1.02 | $ | 1.05 | $ | 3.74 | ||||||||||
Dividends per common share | $ | 0.225 | $ | 0.225 | $ | 0.225 | $ | 0.225 | $ | 0.9 | ||||||||||
Stock price: (New York Stock Exchange) | ||||||||||||||||||||
High | $ | 56.07 | $ | 60.7 | $ | 62.36 | $ | 71.99 | $ | 71.99 | ||||||||||
Low | $ | 49 | $ | 53.94 | $ | 56.68 | $ | 56.32 | $ | 49 | ||||||||||
In millions, except per share amounts | First | Second | Third | Fourth | Year | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2012:00:00 | ||||||||||||||||||||
Net revenues | $ | 30,792 | $ | 30,694 | $ | 30,237 | $ | 31,397 | $ | 123,120 | ||||||||||
Gross profit | 5,106 | 5,443 | 5,645 | 6,294 | 22,488 | |||||||||||||||
Operating profit | 1,397 | 1,702 | 1,812 | 2,299 | 7,210 | |||||||||||||||
Income from continuing operations | 772 | 962 | 1,010 | 1,125 | 3,869 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | (1 | ) | (1 | ) | (5 | ) | — | (7 | ) | |||||||||||
Net income | 771 | 961 | 1,005 | 1,125 | 3,862 | |||||||||||||||
Net loss attributable to noncontrolling interest | 1 | 1 | — | — | 2 | |||||||||||||||
Net income attributable to CVS Caremark | $ | 772 | $ | 962 | $ | 1,005 | $ | 1,125 | $ | 3,864 | ||||||||||
Basic earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.6 | $ | 0.75 | $ | 0.8 | $ | 0.91 | $ | 3.05 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Income (loss) from discontinued operations attributable | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
to CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.59 | $ | 0.75 | $ | 0.79 | $ | 0.91 | $ | 3.04 | ||||||||||
Diluted Earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.59 | $ | 0.75 | $ | 0.79 | $ | 0.9 | $ | 3.02 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Income (loss) from discontinued operations attributable | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
to CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.59 | $ | 0.75 | $ | 0.79 | $ | 0.9 | $ | 3.02 | ||||||||||
Dividends per common share | $ | 0.1625 | $ | 0.1625 | $ | 0.1625 | $ | 0.1625 | $ | 0.65 | ||||||||||
Stock price: (New York Stock Exchange) | ||||||||||||||||||||
High | $ | 45.88 | $ | 46.93 | $ | 48.69 | $ | 49.8 | $ | 49.8 | ||||||||||
Low | $ | 41.01 | $ | 43.08 | $ | 43.65 | $ | 44.33 | $ | 41.01 | ||||||||||
See Note 1 - Significant Accounting Policies (Revenue Recognition - Retail Pharmacy Segment). |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Principles of consolidation | ' | |||||||
Principles of consolidation - The consolidated financial statements include the accounts of the Company and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. | ||||||||
Use of estimates | ' | |||||||
Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates | ||||||||
Fair value hierarchy | ' | |||||||
Fair value hierarchy - The Company utilizes the three-level valuation hierarchy for the recognition and disclosure of fair value measurements. The categorization of assets and liabilities within this hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy consist of the following: | ||||||||
• | Level 1 - Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||||||
• | Level 2 - Inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active or inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. | |||||||
• | Level 3 - Inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of inputs market participants could use in pricing the asset or liability at the measurement date, including assumptions about risk. | |||||||
Cash and cash equivalents | ' | |||||||
Cash and cash equivalents - Cash and cash equivalents consist of cash and temporary investments with maturities of three months or less when purchased. The Company invests in short-term money market funds, commercial paper and time deposits, as well as other debt securities that are classified as cash equivalents within the accompanying consolidated balance sheets, as these funds are highly liquid and readily convertible to known amounts of cash. These investments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. | ||||||||
Short-term investments | ' | |||||||
Short-term investments - The Company’s short-term investments consist of certificate of deposits with initial maturities of greater than three months when purchased. These investments, which were classified as available-for-sale within Level 1 of the fair value hierarchy, were carried at fair value, which approximated historical cost at December 31, 2013 and 2012. | ||||||||
Fair value of financial instruments | ' | |||||||
Fair value of financial instruments - As of December 31, 2013, the Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable and short-term debt. Due to the short-term nature of these instruments, the Company’s carrying value approximates fair value. The carrying amount and estimated fair value of total long-term debt was $13.4 billion and $14.2 billion, respectively, as of December 31, 2013. The fair value of the Company’s long-term debt was estimated based on quoted rates currently offered in active markets for the Company’s debt, which is considered Level 1 of the fair value hierarchy. The Company had outstanding letters of credit, which guaranteed foreign trade purchases, with a fair value of $3.6 million as of December 31, 2013. There were no outstanding derivative financial instruments as of December 31, 2013 and 2012. | ||||||||
Foreign currency translation and transactions | ' | |||||||
Foreign currency translation and transactions - For local currency functional locations, assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income/(loss). | ||||||||
For U.S. dollar functional currency locations, foreign currency assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates, except for non-monetary balance sheet accounts, which are remeasured at historical exchange rates. Revenue and expense are remeasured at average exchange rates in effect during each period, except for those expenses related to the nonmonetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. | ||||||||
Gains and losses arising from foreign currency transactions and the effects of remeasurements were not material for all period presented. | ||||||||
Accounts receivable | ' | |||||||
Accounts receivable - Accounts receivable are stated net of an allowance for doubtful accounts. The accounts receivable balance primarily includes amounts due from third party providers (e.g., pharmacy benefit managers, insurance companies and governmental agencies), clients and members, as well as vendors and manufacturers. Charges to bad debt are based on both historical write-offs and specifically identified receivables. | ||||||||
Inventories | ' | |||||||
Inventories - Prior to 2012, inventories were stated at the lower of cost or market on a first-in, first-out basis using the retail inventory method in the retail pharmacy stores, the weighted average cost method in the mail service and specialty pharmacies, and the cost method on a first-in, first-out basis in the distribution centers. Effective January 1, 2012, the Company changed its methods of accounting for prescription drug inventories in the RPS to the weighted average cost method. See Note 2 for additional information regarding the accounting change. Physical inventory counts are taken on a regular basis in each store and a continuous cycle count process is the primary procedure used to validate the inventory balances on hand in each distribution center and mail facility to ensure that the amounts reflected in the accompanying consolidated financial statements are properly stated. During the interim period between physical inventory counts, the Company accrues for anticipated physical inventory losses on a location-by-location basis based on historical results and current trends. | ||||||||
Property and equipment | ' | |||||||
Property and equipment - Property, equipment and improvements to leased premises are depreciated using the straight-line method over the estimated useful lives of the assets, or when applicable, the term of the lease, whichever is shorter. Estimated useful lives generally range from 10 to 40 years for buildings, building improvements and leasehold improvements and 3 to 10 years for fixtures, equipment and internally developed software. Repair and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Application development stage costs for significant internally developed software projects are capitalized and depreciated. | ||||||||
The following are the components of property and equipment at December 31: | ||||||||
In millions | 2013 | 2012 | ||||||
Land | $ | 1,460 | $ | 1,429 | ||||
Building and improvements | 2,694 | 2,614 | ||||||
Fixtures and equipment | 8,419 | 7,928 | ||||||
Leasehold improvements | 3,320 | 3,105 | ||||||
Software | 1,515 | 1,230 | ||||||
17,408 | 16,306 | |||||||
Accumulated depreciation and amortization | (8,793 | ) | (7,674 | ) | ||||
Property and equipment, net | $ | 8,615 | $ | 8,632 | ||||
The gross amount of property and equipment under capital leases was $260 million and $219 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of property and equipment under capital lease was $74 million and $64 million as of December 31, 2013 and 2012, respectively. Amortization of property and equipment under capital lease is included within depreciation expense. Depreciation expense totaled $1.4 billion, $1.3 billion and $1.1 billion in 2013, 2012 and 2011, respectively. | ||||||||
Goodwill and other indefinitely-lived assets | ' | |||||||
Goodwill and other indefinitely-lived assets - Goodwill and other indefinitely-lived assets are not amortized, but are subject to impairment reviews annually, or more frequently if necessary. See Note 4 for additional information on goodwill and other indefinitely-lived assets. | ||||||||
Intangible assets | ' | |||||||
Intangible assets - Purchased customer contracts and relationships are amortized on a straight-line basis over their estimated useful lives between 10 and 20 years. Purchased customer lists are amortized on a straight-line basis over their estimated useful lives of up to 10 years. Purchased leases are amortized on a straight-line basis over the remaining life of the lease. See Note 4 for additional information about intangible assets. | ||||||||
Impairment of long-lived assets | ' | |||||||
Impairment of long-lived assets - The Company groups and evaluates fixed and finite-lived intangible assets for impairment at the lowest level at which individual cash flows can be identified, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If indicators of impairment are present, the Company first compares the carrying amount of the asset group to the estimated future cash flows associated with the asset group (undiscounted and without interest charges). If the estimated future cash flows used in this analysis are less than the carrying amount of the asset group, an impairment loss calculation is prepared. The impairment loss calculation compares the carrying amount of the asset group to the asset group’s estimated future cash flows (discounted and with interest charges). If required, an impairment loss is recorded for the portion of the asset group’s carrying value that exceeds the asset group’s estimated future cash flows (discounted and with interest charges). | ||||||||
Redeemable noncontrolling interest | ' | |||||||
Redeemable noncontrolling interest — Through June 29, 2012, the Company had an approximately 60% ownership interest in Generation Health, Inc. (“Generation Health”) and consolidated Generation Health in its consolidated financial statements. The nonemployee noncontrolling shareholders of Generation Health held put rights for the remaining interest in Generation Health that if exercised would require the Company to purchase the remaining interest in Generation Health in 2015 for a minimum of $26 million and a maximum of $159 million, depending on certain financial metrics of Generation Health in 2014. Since the noncontrolling shareholders of Generation Health had a redemption feature as a result of the put rights, the Company had classified the redeemable noncontrolling interest in Generation Health in the mezzanine section of the consolidated balance sheet outside of shareholders’ equity. On June 29, 2012, the Company acquired the remaining 40% interest in Generation Health from minority shareholders and employee option holders for $26 million and $5 million, respectively, for a total of $31 million. | ||||||||
Revenue recognition | ' | |||||||
Revenue Recognition | ||||||||
Pharmacy Services Segment - The PSS sells prescription drugs directly through its mail service dispensing pharmacies and indirectly through its retail pharmacy network. The PSS recognizes revenue from prescription drugs sold by its mail service dispensing pharmacies and under retail pharmacy network contracts where it is the principal using the gross method at the contract prices negotiated with its clients. Net revenues include: (i) the portion of the price the client pays directly to the PSS, net of any volume-related or other discounts paid back to the client (see “Drug Discounts” below), (ii) the price paid to the PSS by client plan members for mail order prescriptions (“Mail Co-Payments”) and the price paid to retail network pharmacies by client plan members for retail prescriptions (“Retail Co-Payments”), and (iii) administrative fees for retail pharmacy network contracts where the PSS is not the principal as discussed below. Sales taxes are not included in revenue. | ||||||||
Revenue is recognized when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured. The following revenue recognition policies have been established for the PSS: | ||||||||
• | Revenues generated from prescription drugs sold by mail service dispensing pharmacies are recognized when the prescription is delivered. At the time of delivery, the PSS has performed substantially all of its obligations under its client contracts and does not experience a significant level of returns or reshipments. | |||||||
• | Revenues generated from prescription drugs sold by third party pharmacies in the PSS’s retail pharmacy network and associated administrative fees are recognized at the PSS’s point-of-sale, which is when the claim is adjudicated by the PSS’s online claims processing system. | |||||||
The PSS determines whether it is the principal or agent for its retail pharmacy network transactions on a contract by contract basis. In the majority of its contracts, the PSS has determined it is the principal due to it: (i) being the primary obligor in the arrangement, (ii) having latitude in establishing the price, changing the product or performing part of the service, (iii) having discretion in supplier selection, (iv) having involvement in the determination of product or service specifications, and (v) having credit risk. The PSS’s obligations under its client contracts for which revenues are reported using the gross method are separate and distinct from its obligations to the third party pharmacies included in its retail pharmacy network contracts. Pursuant to these contracts, the PSS is contractually required to pay the third party pharmacies in its retail pharmacy network for products sold, regardless of whether the PSS is paid by its clients. The PSS’s responsibilities under its client contracts typically include validating eligibility and coverage levels, communicating the prescription price and the co-payments due to the third party retail pharmacy, identifying possible adverse drug interactions for the pharmacist to address with the prescriber prior to dispensing, suggesting generic alternatives where clinically appropriate and approving the prescription for dispensing. Although the PSS does not have credit risk with respect to Retail Co-Payments, management believes that all of the other applicable indicators of gross revenue reporting are present. For contracts under which the PSS acts as an agent, revenue is recognized using the net method. | ||||||||
Drug Discounts - The PSS deducts from its revenues any rebates, inclusive of discounts and fees, earned by its clients. Rebates are paid to clients in accordance with the terms of client contracts, which are normally based on fixed rebates per prescription for specific products dispensed or a percentage of manufacturer discounts received for specific products dispensed. The liability for rebates due to clients is included in “Claims and discounts payable” in the accompanying consolidated balance sheets. | ||||||||
Medicare Part D - The PSS, through its SilverScript Insurance Company subsidiary, participates in the Federal Government’s Medicare Part D program as a Prescription Drug Plan (“PDP”). Net revenues include insurance premiums earned by the PDP, which are determined based on the PDP’s annual bid and related contractual arrangements with the Centers for Medicare and Medicaid Services (“CMS”). The insurance premiums include a direct premium paid by CMS and a beneficiary premium, which is the responsibility of the PDP member, but is subsidized by CMS in the case of low-income members. Premiums collected in advance are initially deferred in accrued expenses and are then recognized in net revenues over the period in which members are entitled to receive benefits. | ||||||||
In addition to these premiums, net revenues include co-payments, coverage gap benefits, deductibles and co-insurance (collectively, the “Member Co-Payments”) related to PDP members’ actual prescription claims. In certain cases, CMS subsidizes a portion of these Member Co-Payments and pays the PSS an estimated prospective Member Co-Payment subsidy amount each month. The prospective Member Co-Payment subsidy amounts received from CMS are also included in net revenues. The Company assumes no risk for these amounts. If the prospective Member Co-Payment subsidies received differ from the amounts based on actual prescription claims, the difference is recorded in either accounts receivable or accrued expenses. | ||||||||
The PSS accounts for CMS obligations and Member Co-Payments (including the amounts subsidized by CMS) using the gross method consistent with its revenue recognition policies for Mail Co-Payments and Retail Co-Payments (discussed previously in this document). | ||||||||
Retail Pharmacy Segment - The RPS recognizes revenue from the sale of merchandise (other than prescription drugs) at the time the merchandise is purchased by the retail customer. Prior to the fourth quarter of 2013, revenue from the sale of prescription drugs was recognized at the time the prescription was filled as opposed to upon delivery as required under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 605, Revenue Recognition. For substantially all prescriptions, the fill date and the delivery date occur in the same reporting period. The effect on both revenue and income of recording prescription drug sales upon fill as opposed to delivery is immaterial. During the fourth quarter of 2013, the Company began recognizing revenue from the sale of prescription drugs when the prescription is picked up by the customer. This immaterial error correction is reflected in all annual and quarterly financial statements presented. For the year ended December 31, 2012, the correction reduced net revenues and net income attributable to CVS Caremark by $13 million and $13 million. For the year ended December 31, 2011, the correction reduced net revenues by $20 million and increased net income attributable to CVS Caremark by $1 million. Diluted earnings per share from net income attributable to CVS Caremark was reduced by $0.01 for the year ended December 31, 2012. There was no impact on diluted earnings per share from net income attributable to CVS Caremark in any other annual or interim period impacted by the immaterial error correction. The adjustment increased total assets and total liabilities by $309 million and $360 million as of December 31, 2012 and decreased retained earnings by $38 million and $39 million as of December 31, 2011 and 2010, respectively. | ||||||||
Customer returns are not material. Revenue generated from the performance of services in the RPS’s health care clinics is recognized at the time the services are performed. Sales taxes are not included in revenue. | ||||||||
See Note 13 for additional information about the revenues of the Company’s business segments. | ||||||||
Cost of revenues | ' | |||||||
Cost of revenues | ||||||||
Pharmacy Services Segment - The PSS’ cost of revenues includes: (i) the cost of prescription drugs sold during the reporting period directly through its mail service dispensing pharmacies and indirectly through its retail pharmacy network, (ii) shipping and handling costs, and (iii) the operating costs of its mail service dispensing pharmacies and client service operations and related information technology support costs including depreciation and amortization. The cost of prescription drugs sold component of cost of revenues includes: (i) the cost of the prescription drugs purchased from manufacturers or distributors and shipped to members in clients’ benefit plans from the PSS’ mail service dispensing pharmacies, net of any volume-related or other discounts (see “Vendor allowances and purchase discounts” below) and (ii) the cost of prescription drugs sold (including Retail Co-Payments) through the PSS’ retail pharmacy network under contracts where it is the principal, net of any volume-related or other discounts. | ||||||||
Retail Pharmacy Segment - The RPS’ cost of revenues includes: the cost of merchandise sold during the reporting period and the related purchasing costs, warehousing and delivery costs (including depreciation and amortization) and actual and estimated inventory losses. | ||||||||
See Note 13 for additional information about the cost of revenues of the Company’s business segments. | ||||||||
Vendor allowances and purchase discounts | ' | |||||||
Vendor allowances and purchase discounts | ||||||||
The Company accounts for vendor allowances and purchase discounts as follows: | ||||||||
Pharmacy Services Segment - The PSS receives purchase discounts on products purchased. The PSS’ contractual arrangements with vendors, including manufacturers, wholesalers and retail pharmacies, normally provide for the PSS to receive purchase discounts from established list prices in one, or a combination, of the following forms: (i) a direct discount at the time of purchase, (ii) a discount for the prompt payment of invoices, or (iii) when products are purchased indirectly from a manufacturer (e.g., through a wholesaler or retail pharmacy), a discount (or rebate) paid subsequent to dispensing. These rebates are recognized when prescriptions are dispensed and are generally calculated and billed to manufacturers within 30 days of the end of each completed quarter. Historically, the effect of adjustments resulting from the reconciliation of rebates recognized to the amounts billed and collected has not been material to the PSS’ results of operations. The PSS accounts for the effect of any such differences as a change in accounting estimate in the period the reconciliation is completed. The PSS also receives additional discounts under its wholesaler contracts if it exceeds contractually defined annual purchase volumes. In addition, the PSS receives fees from pharmaceutical manufacturers for administrative services. Purchase discounts and administrative service fees are recorded as a reduction of “Cost of revenues”. | ||||||||
Retail Pharmacy Segment - Vendor allowances received by the RPS reduce the carrying cost of inventory and are recognized in cost of revenues when the related inventory is sold, unless they are specifically identified as a reimbursement of incremental costs for promotional programs and/or other services provided. Amounts that are directly linked to advertising commitments are recognized as a reduction of advertising expense (included in operating expenses) when the related advertising commitment is satisfied. Any such allowances received in excess of the actual cost incurred also reduce the carrying cost of inventory. The total value of any upfront payments received from vendors that are linked to purchase commitments is initially deferred. The deferred amounts are then amortized to reduce cost of revenues over the life of the contract based upon purchase volume. The total value of any upfront payments received from vendors that are not linked to purchase commitments is also initially deferred. The deferred amounts are then amortized to reduce cost of revenues on a straight-line basis over the life of the related contract. The total amortization of these upfront payments was not material to the accompanying consolidated financial statements. | ||||||||
Insurance | ' | |||||||
Insurance - The Company is self-insured for certain losses related to general liability, workers’ compensation and auto liability. The Company obtains third party insurance coverage to limit exposure from these claims. The Company is also self-insured for certain losses related to health and medical liabilities. The Company’s self-insurance accruals, which include reported claims and claims incurred but not reported, are calculated using standard insurance industry actuarial assumptions and the Company’s historical claims experience. | ||||||||
Facility opening and closing costs | ' | |||||||
Facility opening and closing costs - New facility opening costs, other than capital expenditures, are charged directly to expense when incurred. When the Company closes a facility, the present value of estimated unrecoverable costs, including the remaining lease obligation less estimated sublease income and the book value of abandoned property and equipment, are charged to expense. The long-term portion of the lease obligations associated with facility closings was $246 million and $288 million in 2013 and 2012, respectively. | ||||||||
Advertising costs | ' | |||||||
Advertising costs - Advertising costs are expensed when the related advertising takes place. Advertising costs, net of vendor funding (included in operating expenses), were $177 million, $221 million and $211 million in 2013, 2012 and 2011, respectively. | ||||||||
Interest expense, net | ' | |||||||
Interest expense, net - Interest expense, net of capitalized interest, was $517 million, $561 million and $588 million, and interest income was $8 million, $4 million and $4 million in 2013, 2012 and 2011, respectively. Capitalized interest totaled $25 million, $29 million and $37 million in 2013, 2012 and 2011, respectively. | ||||||||
Shares held in trust | ' | |||||||
Shares held in trust - The Company maintains grantor trusts, which held approximately 1 million shares of its common stock at December 31, 2013 and 2012, respectively. These shares are designated for use under various employee compensation plans. Since the Company holds these shares, they are excluded from the computation of basic and diluted shares outstanding. | ||||||||
Accumulated other comprehensive loss | ' | |||||||
Accumulated other comprehensive loss - Accumulated other comprehensive loss consists of changes in the net actuarial gains and losses associated with pension and other postretirement benefit plans, unrealized losses on derivatives from cash flow hedges executed in previous years associated with the issuance of long-term debt, and foreign currency translation adjustments. The amount included in accumulated other comprehensive loss related to the Company’s pension and postretirement plans was $172 million pre-tax ($106 million after-tax) as of December 31, 2013 and $268 million pre-tax ($165 million after-tax) as of December 31, 2012. The net impact on cash flow hedges totaled $22 million pre-tax ($13 million after-tax) and $26 million pre-tax ($16 million after-tax) as of December 31, 2013 and 2012, respectively. Cumulative foreign currency translation adjustments at December 31, 2013 were $30 million. | ||||||||
Stock-based compensation | ' | |||||||
Stock-based compensation - Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable requisite service period of the stock award (generally 3 to 5 years) using the straight-line method. Stock-based compensation is included in operating expenses. | ||||||||
Income taxes | ' | |||||||
Income taxes - The Company provides for income taxes currently payable, as well as for those deferred because of timing differences between reported income and expenses for financial statement purposes versus income tax return purposes. Income tax credits are recorded as a reduction of income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax return purposes. Deferred income tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The effect of a change in income tax rates is recognized as income or expense in the period of the change. | ||||||||
Earnings per common share | ' | |||||||
Earnings per common share - Basic earnings per common share is computed by dividing: (i) net earnings by (ii) the weighted average number of common shares outstanding during the year (the “Basic Shares”). Diluted earnings per common share is computed by dividing: (i) net earnings by (ii) Basic Shares plus the additional shares that would be issued assuming that all dilutive stock awards are exercised. Options to purchase 6.2 million, 5.9 million and 30.5 million shares of common stock were outstanding as of December 31, 2013, 2012 and 2011, respectively, but were not included in the calculation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. | ||||||||
New Accounting Pronouncements | ' | |||||||
New Accounting Pronouncements | ||||||||
In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). ASU 2012-02 allows entities to use a qualitative approach to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount and recognize an impairment loss, if any, to the extent the carrying value exceeds its fair value. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material effect on the Company’s consolidated financial statements. | ||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The additional disclosures include: (1) changes in accumulated other comprehensive income balances by component and (2) significant items reclassified out of accumulated other comprehensive income. The changes in accumulated other comprehensive income balance by component will be disaggregated to separately present reclassification adjustments and current-period other comprehensive income. Significant items reclassified out of accumulated other comprehensive income by component are required to be presented either on the face of the statement of income or as separate disclosure in the notes to the financial statements. These additional disclosures may be presented before-tax or net-of-tax as long as the income tax benefit or expense attributed to each component of other comprehensive income and reclassification adjustments is presented in the financial statement or in the notes to the financial statements. ASU 2013-02 is effective for interim and annual periods beginning after December 15, 2012 and should be applied prospectively. The adoption of ASU 2013-02 did not have a material effect on the Company’s consolidated financial statements. The expanded disclosures have been included in Note 1 to these consolidated financial statements. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Activity in allowance for doubtful trade accounts receivable | ' | |||||||||||||||
The activity in the allowance for doubtful accounts receivable for the years ended December 31 is as follows: | ||||||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||||||
Beginning balance | $ | 243 | $ | 189 | $ | 182 | ||||||||||
Additions charged to bad debt expense | 195 | 149 | 129 | |||||||||||||
Write-offs charged to allowance | (182 | ) | (95 | ) | (122 | ) | ||||||||||
Ending balance | $ | 256 | $ | 243 | $ | 189 | ||||||||||
Components of property and equipment | ' | |||||||||||||||
The following are the components of property and equipment at December 31: | ||||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Land | $ | 1,460 | $ | 1,429 | ||||||||||||
Building and improvements | 2,694 | 2,614 | ||||||||||||||
Fixtures and equipment | 8,419 | 7,928 | ||||||||||||||
Leasehold improvements | 3,320 | 3,105 | ||||||||||||||
Software | 1,515 | 1,230 | ||||||||||||||
17,408 | 16,306 | |||||||||||||||
Accumulated depreciation and amortization | (8,793 | ) | (7,674 | ) | ||||||||||||
Property and equipment, net | $ | 8,615 | $ | 8,632 | ||||||||||||
Reconciliation of the changes in the redeemable noncontrolling interest | ' | |||||||||||||||
The following is a reconciliation of the changes in the redeemable noncontrolling interest for the years ended December 31, 2012 and 2011: | ||||||||||||||||
In millions | 2012 | 2011 | ||||||||||||||
Beginning balance | $ | 30 | $ | 34 | ||||||||||||
Net loss attributable to noncontrolling interest | (2 | ) | (4 | ) | ||||||||||||
Purchase of noncontrolling interest | (26 | ) | — | |||||||||||||
Reclassification to capital surplus in connection with purchase of | ||||||||||||||||
noncontrolling interest | (2 | ) | — | |||||||||||||
Ending balance | $ | — | $ | 30 | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) by Component | ' | |||||||||||||||
Changes in accumulated other comprehensive income (loss) by component are shown below: | ||||||||||||||||
Year Ended December 31, 2013(1) | ||||||||||||||||
In millions | Losses on Cash Flow Hedges | Pension and Other Postretirement Benefits | Foreign Currency | Total | ||||||||||||
Balance, December 31, 2012 | $ | (16 | ) | $ | (165 | ) | $ | — | $ | (181 | ) | |||||
Other comprehensive income (loss) before | — | — | (30 | ) | (30 | ) | ||||||||||
reclassifications | ||||||||||||||||
Amounts reclassified from accumulated | 3 | 59 | — | 62 | ||||||||||||
other comprehensive income (2) | ||||||||||||||||
Net other comprehensive income (loss) | 3 | 59 | (30 | ) | 32 | |||||||||||
Balance, December 31, 2013 | $ | (13 | ) | $ | (106 | ) | $ | (30 | ) | $ | (149 | ) | ||||
-1 | All amounts are net of tax. | |||||||||||||||
-2 | The amounts reclassified from accumulated other comprehensive income for cash flow hedges are recorded within interest expense, net on the consolidated statement of income. The amounts reclassified from accumulated other comprehensive income for pension and other postretirement benefits are included in operating expenses on the consolidated statement of income. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Summary of results of discontinued operations | ' | ||||||||||||
Below is a summary of the results of discontinued operations for the years ended December 31: | |||||||||||||
In millions | 2013 | 2012 | 2011 | ||||||||||
Net revenues of TheraCom | $ | — | $ | — | $ | 650 | |||||||
Income from operations of TheraCom | $ | — | $ | — | $ | 18 | |||||||
Gain on disposal of TheraCom | — | — | 53 | ||||||||||
Loss on disposal of Linens ‘n Things | (12 | ) | (12 | ) | (7 | ) | |||||||
Income tax benefit (provision) | 4 | 5 | (95 | ) | |||||||||
Loss from discontinued operations, net of tax | $ | (8 | ) | $ | (7 | ) | $ | (31 | ) |
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of the Company's intangible assets | ' | |||||||||||||||||||||||
The following table is a summary of the Company’s intangible assets as of December 31: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Trademark (indefinitely-lived) | $ | 6,398 | $ | — | $ | 6,398 | $ | 6,398 | $ | — | $ | 6,398 | ||||||||||||
Customer contracts and relationships and covenants not to compete | 5,840 | (3,083 | ) | 2,757 | 5,745 | (2,812 | ) | 2,933 | ||||||||||||||||
Favorable leases and other | 800 | (426 | ) | 374 | 802 | (380 | ) | 422 | ||||||||||||||||
$ | 13,038 | $ | (3,509 | ) | $ | 9,529 | $ | 12,945 | $ | (3,192 | ) | $ | 9,753 | |||||||||||
Borrowing_and_Credit_Agreement1
Borrowing and Credit Agreements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of the Company's borrowings | ' | |||||||
The following table is a summary of the Company’s borrowings as of December 31: | ||||||||
In millions | 2013 | 2012 | ||||||
Commercial paper | $ | — | $ | 690 | ||||
4.875% senior notes due 2014 | 550 | 550 | ||||||
3.25% senior notes due 2015 | 550 | 550 | ||||||
1.2% senior notes due 2016 | 750 | — | ||||||
6.125% senior notes due 2016 | 421 | 421 | ||||||
5.75% senior notes due 2017 | 1,310 | 1,310 | ||||||
2.25% senior notes due 2018 | 1,250 | — | ||||||
6.6% senior notes due 2019 | 394 | 394 | ||||||
4.75% senior notes due 2020 | 450 | 450 | ||||||
4.125% senior notes due 2021 | 550 | 550 | ||||||
2.75% senior notes due 2022 | 1,250 | 1,250 | ||||||
4.0% senior notes due 2023 | 1,250 | — | ||||||
6.25% senior notes due 2027 | 1,000 | 1,000 | ||||||
6.125% senior notes due 2039 | 1,500 | 1,500 | ||||||
5.75% senior notes due 2041 | 950 | 950 | ||||||
5.3% senior notes due 2043 | 750 | — | ||||||
Enhanced Capital Advantage Preferred Securities due 2062(1) | 41 | 41 | ||||||
Deferred acquisition payables due 2015-2017(2) | 42 | — | ||||||
Mortgage notes payable | 4 | 1 | ||||||
Capital lease obligations | 390 | 171 | ||||||
13,402 | 9,828 | |||||||
Less: | ||||||||
Short-term debt (commercial paper) | — | (690 | ) | |||||
Current portion of long-term debt | (561 | ) | (5 | ) | ||||
$ | 12,841 | $ | 9,133 | |||||
-1 | The Enhanced Capital Advantage Preferred Securities (“ECAPS”) had a stated rate of interest of 6.302% through June 1, 2012, at which time the rate converted to a variable rate which was 2.3% and 2.6% at December 31, 2013 and 2012. | |||||||
-2 | Deferred acquisition payables are denominated in Brazilian real and bear interest at the Brazilian interbank deposit certificate rate which was 9.77% at December 31, 2013. |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Summary of net rental expense for operating leases | ' | |||||||||||
The following table is a summary of the Company’s net rental expense for operating leases for the years ended December 31: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Minimum rentals | $ | 2,210 | $ | 2,165 | $ | 2,087 | ||||||
Contingent rentals | 41 | 48 | 49 | |||||||||
2,251 | 2,213 | 2,136 | ||||||||||
Less: sublease income | (21 | ) | (20 | ) | (19 | ) | ||||||
$ | 2,230 | $ | 2,193 | $ | 2,117 | |||||||
Summary of future minimum lease payments under capital and operating leases | ' | |||||||||||
The following table is a summary of the future minimum lease payments under capital and operating leases as of December 31, 2013: | ||||||||||||
In millions | Capital | Operating | ||||||||||
Leases | Leases(1) | |||||||||||
2014 | $ | 46 | $ | 2,175 | ||||||||
2015 | 46 | 2,129 | ||||||||||
2016 | 47 | 2,055 | ||||||||||
2017 | 47 | 1,964 | ||||||||||
2018 | 47 | 1,853 | ||||||||||
Thereafter | 556 | 16,914 | ||||||||||
Total future lease payments | 789 | $ | 27,090 | |||||||||
Less: imputed interest | (399 | ) | ||||||||||
Present value of capital lease obligations | $ | 390 | ||||||||||
-1 | Future operating lease payments have not been reduced by minimum sublease rentals of $224 million due in the future under noncancelable subleases. |
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Incentive Plans | ' | |||||||||||||
Summary of the assumptions used to value the ESPP awards | ' | |||||||||||||
The following table is a summary of the assumptions used to value the ESPP awards for each of the respective periods: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield(1) | 0.86 | % | 0.73 | % | 0.69 | % | ||||||||
Expected volatility(2) | 16.94 | % | 22.88 | % | 20.42 | % | ||||||||
Risk-free interest rate(3) | 0.1 | % | 0.1 | % | 0.15 | % | ||||||||
Expected life (in years)(4) | 0.5 | 0.5 | 0.5 | |||||||||||
Weighted-average grant date fair value | $ | 10.08 | $ | 9.22 | $ | 7.21 | ||||||||
-1 | The dividend yield is calculated based on semi-annual dividends paid and the fair market value of the Company’s stock at the grant date. | |||||||||||||
-2 | The expected volatility is based on the historical volatility of the Company’s daily stock market prices over the previous six month period. | |||||||||||||
-3 | The risk-free interest rate is based on the Treasury constant maturity interest rate whose term is consistent with the expected term of ESPP options (i.e., 6 months). | |||||||||||||
-4 | The expected life is based on the semi-annual purchase period. | |||||||||||||
Summary of the restricted stock unit and restricted share award activity | ' | |||||||||||||
The following table is a summary of the restricted stock unit and restricted share award activity for the year ended December 31, 2013. | ||||||||||||||
Units in thousands | Units | Weighted Average | ||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at beginning of year | 2,350 | $ | 33.32 | |||||||||||
Granted | 1,715 | 54.3 | ||||||||||||
Vested | (802 | ) | 54.58 | |||||||||||
Forfeited | (242 | ) | 46.17 | |||||||||||
Nonvested at end of year | 3,021 | $ | 38.56 | |||||||||||
Black-Scholes option pricing model, assumptions | ' | |||||||||||||
The fair value of each stock option is estimated using the Black-Scholes option pricing model based on the following assumptions at the time of grant: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield(1) | 1.65 | % | 1.44 | % | 1.43 | % | ||||||||
Expected volatility(2) | 30.96 | % | 32.49 | % | 32.62 | % | ||||||||
Risk-free interest rate(3) | 0.73 | % | 0.84 | % | 1.81 | % | ||||||||
Expected life (in years)(4) | 4.7 | 4.7 | 4.7 | |||||||||||
Weighted-average grant date fair value | $ | 12.5 | $ | 11.12 | $ | 9.19 | ||||||||
-1 | The dividend yield is based on annual dividends paid and the fair market value of the Company’s stock at the grant date. | |||||||||||||
-2 | The expected volatility is estimated using the Company’s historical volatility over a period equal to the expected life of each option grant after adjustments for infrequent events such as stock splits. | |||||||||||||
-3 | The risk-free interest rate is selected based on yields from U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the options being valued. | |||||||||||||
-4 | The expected life represents the number of years the options are expected to be outstanding from grant date based on historical option holder exercise experience. | |||||||||||||
Summary of the Company's stock option activity | ' | |||||||||||||
The following table is a summary of the Company’s stock option activity for the year ended December 31, 2013: | ||||||||||||||
Shares in thousands | Shares | Weighted Average | Weighted Average | Aggregate Intrinsic | ||||||||||
Exercise Price | Remaining | Value | ||||||||||||
Contractual | ||||||||||||||
Term | ||||||||||||||
Outstanding at December 31, 2012 | 40,929 | $ | 36.57 | 4.34 | $ | 482,249,000 | ||||||||
Granted | 8,556 | $ | 54.6 | — | — | |||||||||
Exercised | (12,568 | ) | $ | 35.04 | — | — | ||||||||
Forfeited | (1,619 | ) | $ | 41.87 | — | — | ||||||||
Expired | (560 | ) | $ | 31.18 | — | — | ||||||||
Outstanding at December 31, 2013 | 34,738 | $ | 41.4 | 4.39 | $ | 1,047,976,191 | ||||||||
Exercisable at December 31, 2013 | 14,573 | $ | 35.21 | 2.95 | $ | 529,832,395 | ||||||||
Vested and expected to vest at December | 33,601 | $ | 41.17 | 4.34 | $ | 1,021,486,782 | ||||||||
31, 2013 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of income tax provision for continuing operations | ' | |||||||||||
The income tax provision for continuing operations consisted of the following for the respective years: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Current: | ||||||||||||
Federal | $ | 2,623 | $ | 2,226 | $ | 1,807 | ||||||
State | 437 | 410 | 338 | |||||||||
3,060 | 2,636 | 2,145 | ||||||||||
Deferred: | ||||||||||||
Federal | (115 | ) | (182 | ) | 101 | |||||||
State | (17 | ) | (18 | ) | 12 | |||||||
(132 | ) | (200 | ) | 113 | ||||||||
Total | $ | 2,928 | $ | 2,436 | $ | 2,258 | ||||||
Reconciliation of the statutory income tax rate to the Company's effective income tax rate for continuing operations | ' | |||||||||||
The following table is a reconciliation of the statutory income tax rate to the Company’s effective income tax rate for continuing operations for the respective years: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 4 | 3.9 | 3.9 | |||||||||
Other | (0.1 | ) | (0.3 | ) | 0.4 | |||||||
Effective income tax rate | 38.9 | % | 38.6 | % | 39.3 | % | ||||||
Summary of the significant components of the Company's deferred tax assets and liabilities | ' | |||||||||||
The following table is a summary of the significant components of the Company’s deferred tax assets and liabilities as of December 31: | ||||||||||||
In millions | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Lease and rents | $ | 344 | $ | 336 | ||||||||
Inventories | — | 141 | ||||||||||
Employee benefits | 213 | 202 | ||||||||||
Allowance for doubtful accounts | 79 | 137 | ||||||||||
Retirement benefits | 172 | 115 | ||||||||||
Net operating losses | 10 | 5 | ||||||||||
Depreciation | 192 | — | ||||||||||
Other | 598 | 430 | ||||||||||
Valuation allowance | (3 | ) | — | |||||||||
Total deferred tax assets | 1,605 | 1,366 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Inventories | (69 | ) | — | |||||||||
Depreciation and amortization | (4,512 | ) | (4,457 | ) | ||||||||
Total deferred tax liabilities | (4,581 | ) | (4,457 | ) | ||||||||
Net deferred tax liabilities | $ | (2,976 | ) | $ | (3,091 | ) | ||||||
Schedule of net deferred tax assets (liabilities) | ' | |||||||||||
Net deferred tax assets (liabilities) are presented on the consolidated balance sheets as follows: | ||||||||||||
In millions | 2013 | 2012 | ||||||||||
Deferred tax assets—current | $ | 902 | $ | 693 | ||||||||
Deferred tax assets—noncurrent (included in other assets) | 23 | — | ||||||||||
Deferred tax liabilities—noncurrent | (3,901 | ) | (3,784 | ) | ||||||||
Net deferred tax liabilities | $ | (2,976 | ) | $ | (3,091 | ) | ||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
In millions | 2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 80 | $ | 38 | $ | 35 | ||||||
Additions based on tax positions related to the current year | 19 | 15 | 3 | |||||||||
Additions based on tax positions related to prior years | 37 | 42 | 13 | |||||||||
Reductions for tax positions of prior years | (1 | ) | (2 | ) | — | |||||||
Expiration of statutes of limitation | (17 | ) | (12 | ) | (7 | ) | ||||||
Settlements | (1 | ) | (1 | ) | (6 | ) | ||||||
Ending balance | $ | 117 | $ | 80 | $ | 38 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Reconciliation of the Company's business segments to the consolidated financial statements | ' | |||||||||||||||||||
The following table is a reconciliation of the Company’s business segments to the consolidated financial statements: | ||||||||||||||||||||
In millions | Pharmacy Services | Retail Pharmacy | Corporate | Intersegment | Consolidated | |||||||||||||||
Segment(1)(2) | Segment(2) | Segment | Eliminations(2) | Totals | ||||||||||||||||
2013:00:00 | ||||||||||||||||||||
Net revenues | $ | 76,208 | $ | 65,618 | $ | — | $ | (15,065 | ) | $ | 126,761 | |||||||||
Gross profit | 4,237 | 20,112 | — | (566 | ) | 23,783 | ||||||||||||||
Operating profit | 3,086 | 6,268 | (751 | ) | (566 | ) | 8,037 | |||||||||||||
Depreciation and amortization | 560 | 1,217 | 93 | — | 1,870 | |||||||||||||||
Total assets | 38,343 | 30,191 | 4,420 | (1,428 | ) | 71,526 | ||||||||||||||
Goodwill | 19,658 | 6,884 | — | — | 26,542 | |||||||||||||||
Additions to property and equipment | 313 | 1,610 | 61 | — | 1,984 | |||||||||||||||
2012:00:00 | ||||||||||||||||||||
Net revenues | $ | 73,444 | $ | 63,641 | $ | — | $ | (13,965 | ) | $ | 123,120 | |||||||||
Gross profit | 3,808 | 19,091 | — | (411 | ) | 22,488 | ||||||||||||||
Operating profit | 2,679 | 5,636 | (694 | ) | (411 | ) | 7,210 | |||||||||||||
Depreciation and amortization | 517 | 1,153 | 83 | — | 1,753 | |||||||||||||||
Total assets | 36,057 | 29,492 | 1,408 | (736 | ) | 66,221 | ||||||||||||||
Goodwill | 19,646 | 6,749 | — | — | 26,395 | |||||||||||||||
Additions to property and equipment | 422 | 1,555 | 53 | — | 2,030 | |||||||||||||||
2011:00:00 | ||||||||||||||||||||
Net revenues | $ | 58,874 | $ | 59,579 | $ | — | $ | (11,373 | ) | $ | 107,080 | |||||||||
Gross profit | 3,279 | 17,469 | — | (186 | ) | 20,562 | ||||||||||||||
Operating profit | 2,220 | 4,913 | (616 | ) | (186 | ) | 6,331 | |||||||||||||
Depreciation and amortization | 433 | 1,060 | 75 | — | 1,568 | |||||||||||||||
Total assets | 35,704 | 28,632 | 1,121 | (605 | ) | 64,852 | ||||||||||||||
Goodwill | 19,657 | 6,801 | — | — | 26,458 | |||||||||||||||
Additions to property and equipment | 461 | 1,353 | 58 | — | 1,872 | |||||||||||||||
-1 | Net revenues of the Pharmacy Services Segment include approximately $7.9 billion, $8.4 billion and $7.9 billion of Retail co-payments for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||
-2 | Intersegment eliminations relate to two types of transactions: (i) Intersegment revenues that occur when Pharmacy Services Segment clients use Retail Pharmacy Segment stores to purchase covered products. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue on a standalone basis and (ii) Intersegment revenues, gross profit and operating profit that occur when Pharmacy Services Segment clients, through the Company’s intersegment activities (such as the Maintenance Choice program), elect to pick up their maintenance prescriptions at Retail Pharmacy Segment stores instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue, gross profit and operating profit on a standalone basis. Beginning in the fourth quarter of 2011, the Maintenance Choice eliminations reflect all discounts available for the purchase of mail order prescription drugs. The following amounts are eliminated in consolidation in connection with the item (ii) intersegment activity: net revenues of $4.3 billion, $3.4 billion and $2.6 billion for the years ended December 31, 2013, 2012 and 2011, respectively; gross profit and operating profit of $566 million, $411 million and $186 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Reconciliation of basic and diluted earnings per common share | ' | |||||||||||
The following is a reconciliation of basic and diluted earnings per common share for the respective years: | ||||||||||||
In millions, except per share amounts | 2013 | 2012 | 2011 | |||||||||
Numerator for earnings per common share calculation: | ||||||||||||
Income from continuing operations | $ | 4,600 | $ | 3,869 | $ | 3,489 | ||||||
Net loss attributable to noncontrolling interest | — | 2 | 4 | |||||||||
Income from continuing operations attributable to CVS Caremark, basic | 4,600 | 3,871 | 3,493 | |||||||||
Loss from discontinued operations, net of tax | (8 | ) | (7 | ) | (31 | ) | ||||||
Net income attributable to CVS Caremark, basic and diluted | $ | 4,592 | $ | 3,864 | $ | 3,462 | ||||||
Denominator for earnings per common share calculation: | ||||||||||||
Weighted average common shares, basic | 1,217 | 1,271 | 1,338 | |||||||||
Stock options | 8 | 8 | 8 | |||||||||
Restricted stock units | 1 | 1 | 1 | |||||||||
Weighted average common shares, diluted | 1,226 | 1,280 | 1,347 | |||||||||
Basic earnings per common share: | ||||||||||||
Income from continuing operations attributable to CVS Caremark | $ | 3.78 | $ | 3.05 | $ | 2.61 | ||||||
Loss from discontinued operations attributable to CVS Caremark | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income attributable to CVS Caremark | $ | 3.77 | $ | 3.04 | $ | 2.59 | ||||||
Diluted earnings per common share: | ||||||||||||
Income from continuing operations attributable to CVS Caremark | $ | 3.75 | $ | 3.02 | $ | 2.59 | ||||||
Loss from discontinued operations attributable to CVS Caremark | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income attributable to CVS Caremark | $ | 3.74 | $ | 3.02 | $ | 2.57 | ||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | |||||||||||||||||||
In millions, except per share amounts | First | Second | Third | Fourth | Year | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2013:00:00 | ||||||||||||||||||||
Net revenues | $ | 30,751 | $ | 31,248 | $ | 31,932 | $ | 32,830 | $ | 126,761 | ||||||||||
Gross profit | 5,577 | 5,841 | 6,027 | 6,338 | 23,783 | |||||||||||||||
Operating profit | 1,694 | 1,972 | 2,154 | 2,217 | 8,037 | |||||||||||||||
Income from continuing operations | 954 | 1,125 | 1,255 | 1,266 | 4,600 | |||||||||||||||
Loss from discontinued operations, net of tax | — | (1 | ) | (6 | ) | (1 | ) | (8 | ) | |||||||||||
Net income | 954 | 1,124 | 1,249 | 1,265 | 4,592 | |||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
Net income attributable to CVS Caremark | $ | 954 | $ | 1,124 | $ | 1,249 | $ | 1,265 | $ | 4,592 | ||||||||||
Basic earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.77 | $ | 0.92 | $ | 1.03 | $ | 1.06 | $ | 3.78 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Loss from discontinued operations attributable to | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.77 | $ | 0.92 | $ | 1.03 | $ | 1.06 | $ | 3.77 | ||||||||||
Diluted Earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.77 | $ | 0.91 | $ | 1.02 | $ | 1.05 | $ | 3.75 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Loss from discontinued operations attributable to | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.77 | $ | 0.91 | $ | 1.02 | $ | 1.05 | $ | 3.74 | ||||||||||
Dividends per common share | $ | 0.225 | $ | 0.225 | $ | 0.225 | $ | 0.225 | $ | 0.9 | ||||||||||
Stock price: (New York Stock Exchange) | ||||||||||||||||||||
High | $ | 56.07 | $ | 60.7 | $ | 62.36 | $ | 71.99 | $ | 71.99 | ||||||||||
Low | $ | 49 | $ | 53.94 | $ | 56.68 | $ | 56.32 | $ | 49 | ||||||||||
In millions, except per share amounts | First | Second | Third | Fourth | Year | |||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2012:00:00 | ||||||||||||||||||||
Net revenues | $ | 30,792 | $ | 30,694 | $ | 30,237 | $ | 31,397 | $ | 123,120 | ||||||||||
Gross profit | 5,106 | 5,443 | 5,645 | 6,294 | 22,488 | |||||||||||||||
Operating profit | 1,397 | 1,702 | 1,812 | 2,299 | 7,210 | |||||||||||||||
Income from continuing operations | 772 | 962 | 1,010 | 1,125 | 3,869 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | (1 | ) | (1 | ) | (5 | ) | — | (7 | ) | |||||||||||
Net income | 771 | 961 | 1,005 | 1,125 | 3,862 | |||||||||||||||
Net loss attributable to noncontrolling interest | 1 | 1 | — | — | 2 | |||||||||||||||
Net income attributable to CVS Caremark | $ | 772 | $ | 962 | $ | 1,005 | $ | 1,125 | $ | 3,864 | ||||||||||
Basic earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.6 | $ | 0.75 | $ | 0.8 | $ | 0.91 | $ | 3.05 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Income (loss) from discontinued operations attributable | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
to CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.59 | $ | 0.75 | $ | 0.79 | $ | 0.91 | $ | 3.04 | ||||||||||
Diluted Earnings per common share: | ||||||||||||||||||||
Income from continuing operations attributable to | $ | 0.59 | $ | 0.75 | $ | 0.79 | $ | 0.9 | $ | 3.02 | ||||||||||
CVS Caremark | ||||||||||||||||||||
Income (loss) from discontinued operations attributable | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||||
to CVS Caremark | ||||||||||||||||||||
Net income attributable to CVS Caremark | $ | 0.59 | $ | 0.75 | $ | 0.79 | $ | 0.9 | $ | 3.02 | ||||||||||
Dividends per common share | $ | 0.1625 | $ | 0.1625 | $ | 0.1625 | $ | 0.1625 | $ | 0.65 | ||||||||||
Stock price: (New York Stock Exchange) | ||||||||||||||||||||
High | $ | 45.88 | $ | 46.93 | $ | 48.69 | $ | 49.8 | $ | 49.8 | ||||||||||
Low | $ | 41.01 | $ | 43.08 | $ | 43.65 | $ | 44.33 | $ | 41.01 | ||||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
segment | |
Segment reporting information | ' |
Number of reportable segments | 3 |
Pharmacy Services Segment | ' |
Segment reporting information | ' |
Number of pharmacies | 68,000 |
Number of Chain Pharmacies | 41,000 |
Number of Independent Pharmacies | 27,000 |
Number of conditions for integrated disease management | 17 |
Number of states pharmacies operated | 22 |
Pharmacy Services Segment | Specialty stores | ' |
Segment reporting information | ' |
Number of pharmacies | 25 |
Pharmacy Services Segment | Specialty mail order | ' |
Segment reporting information | ' |
Number of pharmacies | 11 |
Pharmacy Services Segment | Mail service | ' |
Segment reporting information | ' |
Number of pharmacies | 4 |
Retail Pharmacy Segment | ' |
Segment reporting information | ' |
Number of states pharmacies operated | 43 |
Number of drugstores | 7,660 |
Retail Pharmacy Segment | MinuteClinic within CVS Pharmacy Stores | ' |
Segment reporting information | ' |
Number of drugstores | 792 |
Retail Pharmacy Segment | MinuteClinic | ' |
Segment reporting information | ' |
Number of drugstores | 800 |
Retail Pharmacy Segment | CVS/pharmacy | ' |
Segment reporting information | ' |
Number of drugstores | 7,603 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value of Financial Instruments | ' | ' | ' |
Carrying amount of long-term debt | $13,400,000,000 | ' | ' |
Estimated fair value of long-term debt | 14,200,000,000 | ' | ' |
Fair value of outstanding letters of credit | 3,600,000 | ' | ' |
Activity in the allowance for doubtful trade accounts receivable | ' | ' | ' |
Beginning balance | 243,000,000 | 189,000,000 | 182,000,000 |
Additions charged to bad debt expense | 195,000,000 | 149,000,000 | 129,000,000 |
Write-offs charged to allowance | -182,000,000 | -95,000,000 | -122,000,000 |
Ending balance | 256,000,000 | 243,000,000 | 189,000,000 |
Components of property and equipment | ' | ' | ' |
Property and equipment, gross | 17,408,000,000 | 16,306,000,000 | ' |
Accumulated depreciation and amortization | -8,793,000,000 | -7,674,000,000 | ' |
Property and equipment, net | 8,615,000,000 | 8,632,000,000 | ' |
Property and equipment under capital leases | 260,000,000 | 219,000,000 | ' |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 74,000,000 | 64,000,000 | ' |
Depreciation expense | 1,400,000,000 | 1,300,000,000 | 1,100,000,000 |
Leasehold improvements | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Property and equipment, gross | 3,320,000,000 | 3,105,000,000 | ' |
Land | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Property and equipment, gross | 1,460,000,000 | 1,429,000,000 | ' |
Fixtures and equipment | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Property and equipment, gross | 8,419,000,000 | 7,928,000,000 | ' |
Software | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Property and equipment, gross | 1,515,000,000 | 1,230,000,000 | ' |
Building and building improvements | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Property and equipment, gross | $2,694,000,000 | $2,614,000,000 | ' |
Minimum | Building | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Estimated useful life, minimum (in years) | '10 years | ' | ' |
Minimum | Fixtures, equipment and internally developed software | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Estimated useful life, minimum (in years) | '3 years | ' | ' |
Maximum | Building | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Estimated useful life, minimum (in years) | '40 years | ' | ' |
Maximum | Fixtures, equipment and internally developed software | ' | ' | ' |
Components of property and equipment | ' | ' | ' |
Estimated useful life, minimum (in years) | '10 years | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 3) | 12 Months Ended |
Dec. 31, 2013 | |
Intangible assets | ' |
Estimated useful life (in years) | '13 years |
Purchased customer lists | ' |
Intangible assets | ' |
Estimated useful life (in years) | '10 years |
Minimum | Purchased customer contracts and relationships | ' |
Intangible assets | ' |
Estimated useful life (in years) | '10 years |
Maximum | Purchased customer contracts and relationships | ' |
Intangible assets | ' |
Estimated useful life (in years) | '20 years |
Significant_Accounting_Policie6
Significant Accounting Policies (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 29, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 |
Generation Health, Inc. | Generation Health, Inc. | Generation Health, Inc. | Generation Health, Inc. | Generation Health, Inc. | ||||||||||||
Minimum | Maximum | |||||||||||||||
Redeemable Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in Generation Health, Inc. (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' |
2015 purchase price for redeemable noncontrolling interest on exercise of put rights by nonemployee owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26 | $159 |
Remaining interest acquired in Generation Health (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' |
Acquisition from minority interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26 | ' | ' | ' | ' |
Acquisition from employee option holders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' |
Aggregate acquisition cost of Remaining interest in Generation Health | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31 | ' | ' | ' | ' |
Reconciliation of the changes in the redeemable noncontrolling interest: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 34 | ' | ' |
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | -1 | -1 | 0 | -2 | -4 | ' | -2 | -4 | ' | ' |
Purchase of noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -26 | 0 | ' | ' |
Reclassification to capital surplus in connection with purchase of noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | 0 | ' | ' |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $30 | ' | ' |
Significant_Accounting_Policie7
Significant Accounting Policies (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 |
Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Minimum | Maximum | ||||||||||||
Net revenues | $32,830 | $31,932 | $31,248 | $30,751 | $31,397 | $30,237 | $30,694 | $30,792 | $126,761 | $123,120 | $107,080 | ($13) | ($20) | ' | ' | ' |
Comprehensive income attributable to CVS Caremark | ' | ' | ' | ' | ' | ' | ' | ' | 4,624 | 3,855 | 3,433 | -13 | 1 | ' | ' | ' |
Earnings Per Share, Diluted | $1.05 | $1.02 | $0.91 | $0.77 | $0.90 | $0.79 | $0.75 | $0.59 | $3.74 | $3.02 | $2.57 | ($0.01) | ' | ' | ' | ' |
Earnings per share, basic and diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' |
Total assets | 71,526 | ' | ' | ' | 66,221 | ' | ' | ' | 71,526 | 66,221 | 64,852 | 309 | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 360 | ' | ' | ' | ' |
Retained earnings | 28,493 | ' | ' | ' | 24,998 | ' | ' | ' | 28,493 | 24,998 | ' | ' | -38 | -39 | ' | ' |
Vendor allowances and purchase discounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days from end of each completed quarter within which rebates are calculated and billed to manufacturers | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' |
Facility, opening and closing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term portion of lease obligations associated with facility closings | 246 | ' | ' | ' | 288 | ' | ' | ' | 246 | 288 | ' | ' | ' | ' | ' | ' |
Advertising costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs, net of vendor funding | ' | ' | ' | ' | ' | ' | ' | ' | 177 | 221 | 211 | ' | ' | ' | ' | ' |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 517 | 561 | 588 | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 4 | 4 | ' | ' | ' | ' | ' |
Capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 29 | 37 | ' | ' | ' | ' | ' |
Shares held in trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares held in trust, shares | 1 | ' | ' | ' | 1 | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount included in accumulated other comprehensive loss related to pension and postretirement plans, pre-tax | -172 | ' | ' | ' | -268 | ' | ' | ' | -172 | -268 | ' | ' | ' | ' | ' | ' |
Amount included in accumulated other comprehensive loss related to pension and postretirement plans, after-tax | -106 | ' | ' | ' | -165 | ' | ' | ' | -106 | -165 | ' | ' | ' | ' | ' | ' |
Net impact on cash flow hedges, pre-tax | 22 | ' | ' | ' | 26 | ' | ' | ' | 22 | 26 | ' | ' | ' | ' | ' | ' |
Net impact on cash flow hedges, after-tax | 13 | ' | ' | ' | 16 | ' | ' | ' | 13 | 16 | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($30) | ' | ' | ' | ' | ' | ' | ' | ($30) | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requisite service period of the stock award (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years |
Earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock outstanding but not included in the calculation of diluted earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 6.2 | 5.9 | 30.5 | ' | ' | ' | ' | ' |
Significant_Accounting_Policie8
Significant Accounting Policies (Details 6) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Accounting Policies [Abstract] | ' | ' | ' | ||
Related Party Transaction, Expenses from Transactions with Related Party | $48 | $32 | $28 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ||
Balance Beginning | -181 | [1] | ' | ' | |
Other comprehensive income (loss) before reclassifications | -30 | [1] | ' | ' | |
Amounts reclassified from accumulated other comprehensive income | 62 | [1],[2] | ' | ' | |
Net other comprehensive income (loss) | 32 | [1] | -9 | -29 | |
Balance Ending | -149 | [1] | -181 | [1] | ' |
Losses on Cash Flow Hedges | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ||
Balance Beginning | -16 | [1] | ' | ' | |
Other comprehensive income (loss) before reclassifications | 0 | [1] | ' | ' | |
Amounts reclassified from accumulated other comprehensive income | 3 | [1],[2] | ' | ' | |
Net other comprehensive income (loss) | 3 | [1] | ' | ' | |
Balance Ending | -13 | [1] | ' | ' | |
Pension and Other Postretirement Benefits | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ||
Balance Beginning | -165 | [1] | ' | ' | |
Other comprehensive income (loss) before reclassifications | 0 | [1] | ' | ' | |
Amounts reclassified from accumulated other comprehensive income | 59 | [1],[2] | ' | ' | |
Net other comprehensive income (loss) | 59 | [1] | ' | ' | |
Balance Ending | -106 | [1] | ' | ' | |
Foreign Currency | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ||
Balance Beginning | 0 | [1] | ' | ' | |
Other comprehensive income (loss) before reclassifications | -30 | [1] | ' | ' | |
Amounts reclassified from accumulated other comprehensive income | 0 | [1],[2] | ' | ' | |
Net other comprehensive income (loss) | -30 | [1] | ' | ' | |
Balance Ending | ($30) | [1] | ' | ' | |
[1] | All amounts are net of tax. | ||||
[2] | The amounts reclassified from accumulated other comprehensive income for cash flow hedges are recorded within interest expense, net on the consolidated statement of income. The amounts reclassified from accumulated other comprehensive income for pension and other postretirement benefits are included in operating expenses on the consolidated statement of income. |
Changes_in_Accounting_Principl1
Changes in Accounting Principle (Details) (Change in methods of valuing prescription drug inventories, USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Change in methods of valuing prescription drug inventories | ' | ' | ' | ' |
Effect of changes in accounting principle | ' | ' | ' | ' |
Percentage of consolidated inventories affected by change in accounting principle | ' | ' | ' | 51.00% |
Decrease in inventories | ($146) | ' | ' | ' |
Increase in current deferred income tax assets | 57 | ' | ' | ' |
Decrease in retained earnings | ' | ' | ' | -89 |
Increase in net income | ' | $19 | ' | ' |
Decrease in basic earnings per common share | ' | ' | ($0.01) | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TheraCom LLC [Member] | TheraCom LLC [Member] | TheraCom LLC [Member] | TheraCom LLC [Member] | TheraCom LLC [Member] | Linens N Things [Member] | Linens N Things [Member] | Linens N Things [Member] | ||||||||||||
Discontinued operation disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $7 | $250 | $250 | ' | ' | ' | ' | ' | ' | ' |
Working capital adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 650 | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 18 | ' | ' | ' | ' |
Gain (Loss) on disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 53 | ' | -12 | -12 | -7 |
Income tax benefit (provision) | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 5 | -95 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from discontinued operations, net of tax | ($1) | ($6) | ($1) | $0 | $0 | ($5) | ($1) | ($1) | ($8) | ($7) | ($31) | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
unit | |||
Intangible assets | ' | ' | ' |
Number of reporting units | 2 | ' | ' |
Goodwill | $26,542,000,000 | $26,395,000,000 | $26,458,000,000 |
Goodwill, period increase (decrease) | 147,000,000 | ' | ' |
Finite-lived intangible assets weighted average useful life (in years) | '13 years | ' | ' |
Amortization expense related to finite-lived intangible assets | 494,000,000 | 486,000,000 | 452,000,000 |
Anticipated annual amortization expenses | ' | ' | ' |
Anticipated annual amortization expenses, 2014 | 457,000,000 | ' | ' |
Anticipated annual amortization expenses, 2015 | 427,000,000 | ' | ' |
Anticipated annual amortization expenses, 2016 | 398,000,000 | ' | ' |
Anticipated annual amortization expenses, 2017 | 375,000,000 | ' | ' |
Anticipated annual amortization expenses, 2018 | 357,000,000 | ' | ' |
Intangible assets, gross carrying amount | 13,038,000,000 | 12,945,000,000 | ' |
Finite-lived intangible asset, accumulated amortization | -3,509,000,000 | -3,192,000,000 | ' |
Intangible assets, net carrying amount | 9,529,000,000 | 9,753,000,000 | ' |
Customer contracts and relationships and covenants not to compete | ' | ' | ' |
Intangible assets | ' | ' | ' |
Finite-lived intangible assets weighted average useful life (in years) | '12 years 6 months | ' | ' |
Anticipated annual amortization expenses | ' | ' | ' |
Intangible assets, gross carrying amount | 5,840,000,000 | 5,745,000,000 | ' |
Finite-lived intangible asset, accumulated amortization | -3,083,000,000 | -2,812,000,000 | ' |
Intangible assets, net carrying amount | 2,757,000,000 | 2,933,000,000 | ' |
Favorable leases and other | ' | ' | ' |
Intangible assets | ' | ' | ' |
Finite-lived intangible assets weighted average useful life (in years) | '17 years 1 month | ' | ' |
Anticipated annual amortization expenses | ' | ' | ' |
Intangible assets, gross carrying amount | 800,000,000 | 802,000,000 | ' |
Finite-lived intangible asset, accumulated amortization | -426,000,000 | -380,000,000 | ' |
Intangible assets, net carrying amount | 374,000,000 | 422,000,000 | ' |
Trademarks (indefinitely-lived) | ' | ' | ' |
Intangible assets | ' | ' | ' |
Indefinite-lived intangible assets | 6,400,000,000 | 6,400,000,000 | ' |
Anticipated annual amortization expenses | ' | ' | ' |
Intangible assets, gross carrying amount | 6,398,000,000 | 6,398,000,000 | ' |
Finite-lived intangible asset, accumulated amortization | 0 | 0 | ' |
Intangible assets, net carrying amount | 6,398,000,000 | 6,398,000,000 | ' |
Acquisition in 2007 [Member] | ' | ' | ' |
Intangible assets | ' | ' | ' |
Goodwill, period increase (decrease) | 160,000,000 | ' | ' |
Pharmacy Services Segment | ' | ' | ' |
Intangible assets | ' | ' | ' |
Goodwill | 19,658,000,000 | 19,646,000,000 | 19,657,000,000 |
Goodwill, period increase (decrease) | 12,000,000 | ' | ' |
Retail Pharmacy Segment | ' | ' | ' |
Intangible assets | ' | ' | ' |
Goodwill | 6,884,000,000 | 6,749,000,000 | 6,801,000,000 |
Goodwill, period increase (decrease) | 135,000,000 | ' | ' |
Corporate Segment [Member] | ' | ' | ' |
Intangible assets | ' | ' | ' |
Goodwill | 0 | 0 | 0 |
Goodwill, period increase (decrease) | ($25,000,000) | ' | ' |
Share_Repurchase_Programs_Deta
Share Repurchase Programs (Details) (USD $) | Dec. 31, 2012 | Oct. 02, 2013 | Dec. 31, 2013 | Dec. 30, 2013 | Sep. 19, 2012 | Nov. 16, 2012 | Dec. 29, 2011 | Dec. 31, 2013 | Sep. 16, 2011 | Aug. 25, 2011 | Aug. 24, 2011 | Dec. 31, 2013 | Sep. 19, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 23, 2011 | Jun. 14, 2010 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
In Billions, except Share data in Millions, unless otherwise specified | 1-Oct-13 | 1-Oct-13 | 1-Oct-13 | 19-Sep-12 | 16-Nov-12 | 24-Aug-11 | 24-Aug-11 | 24-Aug-11 | 24-Aug-11 | 24-Aug-11 | 2013 Repurchase Program | 2012 Repurchase Program | 2012 Repurchase Program | 2012 Repurchase Program | 2011 Repurchase Program | 2010 Repurchase Program | 2010 Repurchase Program | 2011 and 2012 Share Repurchase Programs | 2011 and 2012 Share Repurchase Programs | |
Accelerated share repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, authorized amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6 | $6 | ' | ' | $4 | $2 | ' | ' | ' |
Amount under ASR agreement entered with Barclays | ' | 1.7 | ' | ' | 1.2 | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional purchase price (as a percent) | ' | ' | 50.00% | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased under ASR agreement with Barclays | 25.6 | 14.9 | 26.6 | 11.7 | 12.6 | 13 | ' | ' | ' | 20.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock price of shares repurchased under ASR agreement with Barclays (in dollars per share) | ' | $56.88 | $63.83 | ' | $47.71 | $46.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price paid under ASR agreement with Barclays | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares repurchased under ASR agreement with Barclays | ' | ' | ' | ' | ' | ' | ' | ' | 5.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares receivable under ASR agreement with Barclays | ' | ' | ' | ' | ' | ' | 1.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased under ASR agreement with Barclays & placed into treasury stock | ' | ' | ' | ' | ' | ' | ' | 27.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56.4 | 66.2 | 95 |
Repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | 2 | ' | 4.3 |
Amount available for repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.70 | ' | ' | ' | ' | ' | ' |
Borrowing_and_Credit_Agreement2
Borrowing and Credit Agreements (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 26, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 02, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 26, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 12-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 26, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 02, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 12-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 26, 2012 | Dec. 31, 2013 | Dec. 02, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 02, 2013 | Nov. 26, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2011 | 12-May-11 | |||||
Commercial paper | Commercial paper | 4.875% senior notes due 2014 | 4.875% senior notes due 2014 | 3.25% senior notes due 2015 | 3.25% senior notes due 2015 | 1.2% senior notes due 2016 | 1.2% senior notes due 2016 | 6.125% senior notes due 2016 | 6.125% senior notes due 2016 | 6.125% senior notes due 2016 | 5.75% senior notes due 2017 | 5.75% senior notes due 2017 | 2.25% senior notes due 2018 | 2.25% senior notes due 2018 | 2.25% senior notes due 2018 | 6.6% senior notes due 2019 | 6.6% senior notes due 2019 | 6.6% senior notes due 2019 | 4.75% senior notes due 2020 | 4.75% senior notes due 2020 | 4.125% senior notes due 2021 | 4.125% senior notes due 2021 | 4.125% senior notes due 2021 | 2.75% senior notes due 2022 | 2.75% senior notes due 2022 | 2.75% senior notes due 2022 | 4.0% senior notes due 2023 | 4.0% senior notes due 2023 | 4.0% senior notes due 2023 | 6.25% senior notes due 2027 | 6.25% senior notes due 2027 | 6.125% senior notes due 2039 | 6.125% senior notes due 2039 | 5.75% senior notes due 2041 | 5.75% senior notes due 2041 | 5.75% senior notes due 2041 | 5.75% senior notes due 2041 | 5.3% senior notes due 2043 | 5.3% senior notes due 2043 | 5.3% senior notes due 2043 | Enhanced Capital Advantage Preferred Securities due 2062 | Enhanced Capital Advantage Preferred Securities due 2062 | Enhanced Capital Advantage Preferred Securities due 2062 | Enhanced Capital Advantage Preferred Securities due 2062 | Enhanced Capital Advantage Preferred Securities due 2062 | Deferred Acquisition Payables due 2015-2017 [Member] | Deferred Acquisition Payables due 2015-2017 [Member] | Mortgage notes payable | Mortgage notes payable | Capital lease obligations | Capital lease obligations | Unsecured back-up credit facility expiring on May 2013 | Unsecured back-up credit facility expiring on February 2017 | Unsecured back-up credit facility expiring on May 2015 | Unsecured back-up credit facilities | Unsecured Senior Notes 1.25 Percent Due in 2016 [Member] | 6.125%, 5.75% and 6.6% senior notes due in 2016, 2017 and 2019, respectively | 6.125%, 5.75% and 6.6% senior notes due in 2016, 2017 and 2019, respectively | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | 2011 Notes | |||||||||
UAM Medicare Part D Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total debt | ' | $13,402,000,000 | $9,828,000,000 | ' | $0 | $690,000,000 | $550,000,000 | $550,000,000 | $550,000,000 | $550,000,000 | $750,000,000 | $0 | $421,000,000 | $421,000,000 | ' | $1,310,000,000 | $1,310,000,000 | $1,250,000,000 | ' | $0 | $394,000,000 | $394,000,000 | ' | $450,000,000 | $450,000,000 | ' | $550,000,000 | $550,000,000 | ' | $1,250,000,000 | $1,250,000,000 | $1,250,000,000 | ' | $0 | $1,000,000,000 | $1,000,000,000 | $1,500,000,000 | $1,500,000,000 | ' | $950,000,000 | $950,000,000 | ' | $750,000,000 | ' | $0 | ' | ' | $41,000,000 | [1] | $41,000,000 | [1] | ' | $42,000,000 | [1] | $0 | [1] | $4,000,000 | $1,000,000 | $390,000,000 | $171,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term debt (commercial paper) | ' | 0 | -690,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Current portion of long-term debt | ' | 561,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Long-term debt | ' | 12,841,000,000 | 9,133,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt instrument interest rate stated percentage | ' | ' | ' | ' | ' | ' | 4.88% | ' | 3.25% | ' | 1.20% | ' | 6.13% | ' | 6.13% | 5.75% | ' | 2.25% | 2.25% | ' | 6.60% | ' | 6.60% | 4.75% | ' | 4.13% | 4.13% | ' | 2.75% | 2.75% | ' | 4.00% | 4.00% | ' | 6.25% | ' | 6.13% | ' | 5.75% | 5.75% | ' | 5.75% | 5.30% | 5.30% | ' | ' | ' | ' | ' | 6.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.20% | ' | ' | ' | ' | ' | ' | ||||
Debt instrument variable interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.30% | 2.60% | ' | 9.77% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maximum borrowing capacity under unsecured back-up credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000,000 | 1,250,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Term of unsecured back-up credit facility (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Facility fee under unsecured back-up credit facility (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.03% | ' | ' | ' | ' | ' | ' | ' | ||||
Short-term debt, weighted average interest rate (as a percent) | ' | 0.27% | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000,000 | ' | ' | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ||||
Proceeds from issuance of long-term debt | ' | 3,964,000,000 | 1,239,000,000 | 1,463,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,240,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | ||||
Principal amount of unsecured notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 950,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Proceeds from Issuance of Senior Long-term Debt | 4,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maximum aggregate principal amount of tender offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 1,325,000,000 | ' | ' | ' | ' | ||||
Tender premium on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332,000,000 | ' | ' | ' | ' | ||||
Write-off of unamortized deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | ' | ' | ' | ' | ||||
Tender fees on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ||||
Loss on early extinguishment of debt | ' | 0 | 348,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 348,000,000 | ' | ' | ' | ' | ||||
Long-term debt assumed in connection with business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,000,000 | ' | ||||
Repayments of long-term debt | ' | 0 | 1,718,000,000 | 2,122,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 60,000,000 | ' | ' | ||||
Repurchase of outstanding ECAPS through tender offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 958,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Aggregate maturities of long-term debt: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
2014 | ' | 561,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
2015 | ' | 576,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
2016 | ' | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
2017 | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
2018 | ' | $1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | The Enhanced Capital Advantage Preferred Securities (“ECAPSâ€) had a stated rate of interest of 6.302% through June 1, 2012, at which time the rate converted to a variable rate which was 2.3% and 2.6% at December 31, 2013 and 2012.(2)Deferred acquisition payables are denominated in Brazilian real and bear interest at the Brazilian interbank deposit certificate rate which was 9.77% at December 31, 2013. |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net rental expense for operating leases | ' | ' | ' | |
Minimum rentals | $2,210 | $2,165 | $2,087 | |
Contingent rentals | 41 | 48 | 49 | |
Gross lease rental expense | 2,251 | 2,213 | 2,136 | |
Less: sublease income | -21 | -20 | -19 | |
Net lease rental expense | 2,230 | 2,193 | 2,117 | |
Future minimum lease payments under operating leases | ' | ' | ' | |
2014 | 2,175 | [1] | ' | ' |
2015 | 2,129 | [1] | ' | ' |
2016 | 2,055 | [1] | ' | ' |
2017 | 1,964 | [1] | ' | ' |
2018 | 1,853 | [1] | ' | ' |
Thereafter | 16,914 | [1] | ' | ' |
Total future lease payments | 27,090 | [1] | ' | ' |
Minimum sublease rentals due in future under non-cancelable subleases | 224 | ' | ' | |
Future minimum lease payments under capital leases | ' | ' | ' | |
2014 | 46 | ' | ' | |
2015 | 46 | ' | ' | |
2016 | 47 | ' | ' | |
2017 | 47 | ' | ' | |
2018 | 47 | ' | ' | |
Thereafter | 556 | ' | ' | |
Total future lease payments | 789 | ' | ' | |
Less: imputed interest | -399 | ' | ' | |
Present value of capital lease obligations | 390 | ' | ' | |
Proceeds from sale-leaseback transactions | $600 | $529 | $592 | |
Retail and mail order locations, distribution centers and corporate offices | ' | ' | ' | |
Operating leased assets | ' | ' | ' | |
Number of distribution centers leased | 10 | ' | ' | |
Retail and mail order locations, distribution centers and corporate offices | Minimum | ' | ' | ' | |
Operating leased assets | ' | ' | ' | |
Non-cancelable operating leases, initial term (in years) | '15 years | ' | ' | |
Retail and mail order locations, distribution centers and corporate offices | Maximum | ' | ' | ' | |
Operating leased assets | ' | ' | ' | |
Non-cancelable operating leases, initial term (in years) | '25 years | ' | ' | |
Equipment and other assets | Minimum | ' | ' | ' | |
Operating leased assets | ' | ' | ' | |
Non-cancelable operating leases, initial term (in years) | '3 years | ' | ' | |
Equipment and other assets | Maximum | ' | ' | ' | |
Operating leased assets | ' | ' | ' | |
Non-cancelable operating leases, initial term (in years) | '10 years | ' | ' | |
[1] | Future operating lease payments have not been reduced by minimum sublease rentals of $224 million due in the future under noncancelable subleases. |
Medicare_Part_D_Medicare_Part_
Medicare Part D Medicare Part D (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable, net | $8,729 | $6,479 |
Centers for Medicare and Medicaid Services [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable, net | $2,400 | $700 |
Pension_Plans_and_Other_Postre1
Pension Plans and Other Postretirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Plan | Plan | ||
Defined benefit plan | ' | ' | ' |
Employer's contributions under defined contribution plans | $235 | $199 | $187 |
Number of defined benefit plans | ' | 9 | 9 |
Other Postretirement Benefits | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Benefit obligation | 27 | 16 | ' |
Net periodic benefit cost | 11 | 1 | 1 |
Settlements losses included in net periodic costs | -8 | ' | ' |
Total Company contributions to multiemployer pension plans | 55 | 50 | 47 |
Pension Plans | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Benefit obligation | 694 | 758 | ' |
Net periodic benefit cost | 19 | 31 | 49 |
Settlements losses included in net periodic costs | ' | ' | -25 |
Number of defined benefit plans | 10 | ' | ' |
Fair value of plan assets | 568 | 527 | ' |
Actual return on plan assets | 49 | 62 | ' |
Curtailment losses included in net periodic costs | ' | 2 | ' |
Discount rate (as a percent) | 4.75% | 4.00% | ' |
Expected long-term rate of return on plan assets (as a percent) | 7.25% | 7.25% | 7.25% |
Equity securities target allocation (as a percent) | ' | 50.00% | 50.00% |
Employer's contributions under defined benefit plans | 33 | 36 | 92 |
Estimated future employer contributions in next fiscal year | 41 | ' | ' |
Pension Plans | Level 1 | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 17.00% | 84.00% | ' |
Pension Plans | Level 2 | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 83.00% | 16.00% | ' |
Pension Plans | Fixed Income Securities [Member] | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 76.00% | 48.00% | ' |
Pension Plans | Fixed Income Securities [Member] | Minimum | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 60.00% | ' | ' |
Pension Plans | Fixed Income Securities [Member] | Maximum | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 85.00% | ' | ' |
Pension Plans | Equity Securities [Member] | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 23.00% | 50.00% | ' |
Pension Plans | Equity Securities [Member] | Minimum | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 15.00% | ' | ' |
Pension Plans | Equity Securities [Member] | Maximum | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 40.00% | ' | ' |
Pension Plans | Money Market Funds [Member] | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Equity securities (as a percent) | 1.00% | 2.00% | ' |
Tax-qualified funded pension plans | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Number of defined benefit plans | 4 | ' | ' |
Unfunded nonqualified supplemental retirement plans | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Number of defined benefit plans | 6 | ' | ' |
Multiemployer Plans, Pension [Member] | ' | ' | ' |
Defined benefit plan | ' | ' | ' |
Total Company contributions to multiemployer pension plans | $13 | $12 | $11 |
Stock_Incentive_Plans_Details
Stock Incentive Plans (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Minimum | Maximum | Employee Stock [Member] | Employee Stock [Member] | Employee Stock [Member] | Employee Stock Purchase Plan 2007 [Member] | Employee Stock Purchase Plan 2007 [Member] | Employee Stock Purchase Plan 2007 [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | ||||
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Requisite service period of the stock award (in years) | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Compensation expense related to share-based compensation | ' | ' | $100 | $102 | $112 | ' | ' | ' | $41 | $30 | $21 | |||
Recognized tax benefit on compensation expense | ' | ' | $32 | $33 | $38 | ' | ' | ' | ' | ' | ' | |||
Maximum number of shares that can be purchased under ESPP | ' | ' | ' | ' | ' | ' | 15 | 15 | ' | ' | ' | |||
Employee purchase price, percentage of fair market value of ordinary shares | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | |||
Shares of common stock purchased for ESPP | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | |||
Average price of shares of common stock purchased for ESPP (in dollars per share) | ' | ' | ' | ' | ' | $41.44 | ' | ' | ' | ' | ' | |||
Shares of common stock available for issue under ESPP | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | |||
Fair value of each stock option estimated using the Black-Scholes Option Pricing Model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Dividend yield (as a percent) | ' | ' | 0.86% | [1] | 0.73% | [1] | 0.69% | [1] | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 16.94% | [2] | 22.88% | [2] | 20.42% | [2] | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | 0.10% | [3] | 0.10% | [3] | 0.15% | [3] | ' | ' | ' | ' | ' | ' |
Expected life (in years) | ' | ' | '6 months | [4] | '6 months | [4] | '6 months | [4] | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | $10.08 | $9.22 | $7.21 | ' | ' | ' | ' | ' | ' | |||
Offering period for stock purchase plan (in months) | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | |||
[1] | The dividend yield is calculated based on semi-annual dividends paid and the fair market value of the Company’s stock at the grant date. | |||||||||||||
[2] | The expected volatility is based on the historical volatility of the Company’s daily stock market prices over the previous six month period. | |||||||||||||
[3] | The risk-free interest rate is based on the Treasury constant maturity interest rate whose term is consistent with the expected term of ESPP options (i.e., 6 months). | |||||||||||||
[4] | The expected life is based on the semi-annual purchase period. |
Stock_Incentive_Plans_Details_
Stock Incentive Plans (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity Incentive Plan 2010 [Member] | Equity Incentive Plan 2010 [Member] | Restricted Unit and Restricted Share Award [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Options Granted, During and Subsequent to Fiscal 2004 [Member] | Options Granted, Beginning from 2011 [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares authorized | ' | ' | ' | ' | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future grants under the ICP | ' | ' | ' | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | 1,715,000 | 1,715,000 | 1,811,000 | 1,121,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted (in dollars per share) | ' | ' | ' | ' | ' | $54.30 | $54.30 | $44.80 | $34.84 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested share-based awards, expected to vest | ' | ' | ' | ' | ' | ' | $89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested share-based awards, expected to vest, period of recognition (in years) | ' | ' | ' | ' | ' | ' | '2 years 1 month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of restricted shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41 | 81 | 33 | ' | ' | ' | ' | ' |
Summary of the restricted unit and restricted share award activity under the ICPs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested at beginning of year (in shares) | ' | ' | ' | ' | ' | 2,350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | 1,715,000 | 1,715,000 | 1,811,000 | 1,121,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | -802,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | -242,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested at end of year (in shares) | ' | ' | ' | ' | ' | 3,021,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at beginning of year (in dollars per share) | ' | ' | ' | ' | ' | $33.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted (in dollars per share) | ' | ' | ' | ' | ' | $54.30 | $54.30 | $44.80 | $34.84 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value, Vested (in dollars per share) | ' | ' | ' | ' | ' | $54.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value, Forfeited (in dollars per share) | ' | ' | ' | ' | ' | $46.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at end of year (in dollars per share) | ' | ' | ' | ' | ' | $38.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ' | ' | ' |
Expiration period for options granted (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' |
Excess tax benefits from stock-based compensation | 62 | 28 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from stock options exercised | 500 | 836 | 431 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | 282 | 321 | 161 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $329 | $386 | $452 |
Stock_Incentive_Plans_Details_1
Stock Incentive Plans (Details 3) (USD $) | 12 Months Ended | |||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Summary of option activities | ' | ' | ' | |||
Options vested and expected to vest end of the period (in shares) | 33,601 | ' | ' | |||
Weighted Average Exercise Price | ' | ' | ' | |||
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share) | $41.17 | ' | ' | |||
Weighted Average Remaining Contractual Term (in years) | ' | ' | ' | |||
Weighted Average Remaining Contractual Term, Options vested and expected to vest (in years) | '4 years 4 months 2 days | ' | ' | |||
Aggregate Intrinsic Value | ' | ' | ' | |||
Aggregate Intrinsic Value, Options vested and expected to vest | $1,021,486,782 | ' | ' | |||
Employee Stock Option [Member] | ' | ' | ' | |||
Fair value of each stock option estimated using the Black-Scholes Option Pricing Model | ' | ' | ' | |||
Dividend yield (as a percent) | 1.65% | [1] | 1.44% | [1] | 1.43% | [1] |
Expected volatility (as a percent) | 30.96% | [2] | 32.49% | [2] | 32.62% | [2] |
Risk-free interest rate (as a percent) | 0.73% | [3] | 0.84% | [3] | 1.81% | [3] |
Expected life (in years) | '4 years 8 months | [4] | '4 years 8 months | [4] | '4 years 8 months | [4] |
Weighted-average grant date fair value (in dollars per share) | $12.50 | $11.12 | $9.19 | |||
Unrecognized compensation expense related to unvested options | 170,000,000 | ' | ' | |||
Unrecognized compensation expense related to unvested options, period of recognition (in years) | '2 years 1 month 8 days | ' | ' | |||
Unvested options to vest over the requisite service period | 19,000,000 | ' | ' | |||
Summary of option activities | ' | ' | ' | |||
Outstanding at the beginning of the period (in shares) | 40,929 | ' | ' | |||
Granted (in shares) | 8,556 | ' | ' | |||
Exercised (in shares) | -12,568 | ' | ' | |||
Forfeited (in shares) | -1,619 | ' | ' | |||
Expired (in shares) | -560 | ' | ' | |||
Outstanding at the end of the period (in shares) | 34,738 | 40,929 | ' | |||
Options exercisable (in shares) | 14,573 | ' | ' | |||
Weighted Average Exercise Price | ' | ' | ' | |||
Weighted Average Exercise Price, options outstanding at the beginning of the period (in dollars per share) | $36.57 | ' | ' | |||
Weighted Average Exercise Price, options granted (in dollars per share) | $54.60 | ' | ' | |||
Weighted Average Exercise Price, options exercised (in dollars per share) | $35.04 | ' | ' | |||
Weighted Average Exercise Price, options forfeited (in dollars per share) | $41.87 | ' | ' | |||
Weighted Average Exercise Price, options expired (in dollars per share) | $31.18 | ' | ' | |||
Weighted Average Exercise Price, options outstanding at the end of the period (in dollars per share) | $41.40 | $36.57 | ' | |||
Weighted Average Exercise Price, options exercisable (in dollars per share) | $35.21 | ' | ' | |||
Weighted Average Remaining Contractual Term (in years) | ' | ' | ' | |||
Weighted Average Remaining Contractual Term, options outstanding (in years) | '4 years 4 months 20 days | '4 years 4 months 2 days | ' | |||
Weighted Average Remaining Contractual Term, Options, options exercisable (in years) | '2 years 11 months 11 days | ' | ' | |||
Aggregate Intrinsic Value | ' | ' | ' | |||
Aggregate Intrinsic Value, options outstanding | 1,047,976,191 | 482,249,000 | ' | |||
Aggregate Intrinsic Value, options exercisable | $529,832,395 | ' | ' | |||
[1] | The dividend yield is based on annual dividends paid and the fair market value of the Company’s stock at the grant date. | |||||
[2] | The expected volatility is estimated using the Company’s historical volatility over a period equal to the expected life of each option grant after adjustments for infrequent events such as stock splits. | |||||
[3] | The risk-free interest rate is selected based on yields from U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the options being valued. | |||||
[4] | The expected life represents the number of years the options are expected to be outstanding from grant date based on historical option holder exercise experience. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income tax provision | ' | ' | ' |
Federal | $2,623 | $2,226 | $1,807 |
State | 437 | 410 | 338 |
Total current income tax provision | 3,060 | 2,636 | 2,145 |
Federal | -115 | -182 | 101 |
State | -17 | -18 | 12 |
Total deferred income tax provision | -132 | -200 | 113 |
Total | 2,928 | 2,436 | 2,258 |
Reconciliation of the statutory income tax rate to the Company's effective income tax rate | ' | ' | ' |
Statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 4.00% | 3.90% | 3.90% |
Other | -0.10% | -0.30% | 0.40% |
Effective income tax rate | 38.90% | 38.60% | 39.30% |
Deferred tax assets: | ' | ' | ' |
Lease and rents | 344 | 336 | ' |
Inventories | 0 | 141 | ' |
Employee benefits | 213 | 202 | ' |
Allowance for doubtful accounts | 79 | 137 | ' |
Retirement benefits | 172 | 115 | ' |
Net operating losses | 10 | 5 | ' |
Depreciation | 192 | 0 | ' |
Other | 598 | 430 | ' |
Valuation allowance | -3 | 0 | ' |
Total deferred tax assets | 1,605 | 1,366 | ' |
Deferred tax liabilities: | ' | ' | ' |
Inventories | -69 | 0 | ' |
Depreciation and amortization | -4,512 | -4,457 | ' |
Total deferred tax liabilities | -4,581 | -4,457 | ' |
Net deferred tax liabilities | -2,976 | -3,091 | ' |
Net deferred tax assets (liabilities) presented on the consolidated balance sheets | ' | ' | ' |
Deferred tax assets—current | 902 | 693 | ' |
Deferred tax assets—noncurrent valuation allowance | 23 | 0 | ' |
Deferred tax liabilities—noncurrent | -3,901 | -3,784 | ' |
Net deferred tax liabilities | -2,976 | -3,091 | ' |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ' | ' |
Beginning balance | 80 | 38 | 35 |
Additions based on tax positions related to the current year | 19 | 15 | 3 |
Additions based on tax positions related to prior years | 37 | 42 | 13 |
Reductions for tax positions of prior years | -1 | -2 | 0 |
Expiration of statutes of limitation | -17 | -12 | -7 |
Settlements | -1 | -1 | -6 |
Ending balance | 117 | 80 | 38 |
Utilization or reduction of the company's reserve for uncertain tax positions over the next twelve months | 13 | ' | ' |
Interest recognized related to unrecognized tax benefits | 4 | 4 | 2 |
Accrued interest and penalties related to unrecognized tax benefits | 10 | 10 | ' |
Unrecognized tax benefits that would impact effective tax rate | $95 | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
31-May-05 | Oct. 31, 2003 | Dec. 31, 2013 | |
item | item | item | |
Loss contingencies | ' | ' | ' |
Number of store leases guaranteed | ' | ' | 73 |
Number of adjudication platforms under investigation | 1 | ' | ' |
Number of pharmacies filing putative action | ' | 2 | ' |
Number of competitors against whom putative actions are filed | ' | 2 | ' |
Number of Caremark entities named as defendants | ' | 2 | ' |
Number of states participating in multi-state investigation | ' | ' | 28 |
Lauriello Lawsuit | ' | ' | ' |
Loss contingencies | ' | ' | ' |
Lauriello lawsuit, amount sought in compensatory damages | ' | 3,200,000,000 | ' |
SEC Investigation [Domain] | ' | ' | ' |
Loss contingencies | ' | ' | ' |
Civil Penalty under SEC | ' | ' | 20,000,000 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
segment | ||||||||||||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | |||
Segment reporting information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | $32,830,000,000 | $31,932,000,000 | $31,248,000,000 | $30,751,000,000 | $31,397,000,000 | $30,237,000,000 | $30,694,000,000 | $30,792,000,000 | $126,761,000,000 | $123,120,000,000 | $107,080,000,000 | |||
Gross profit | 6,338,000,000 | 6,027,000,000 | 5,841,000,000 | 5,577,000,000 | 6,294,000,000 | 5,645,000,000 | 5,443,000,000 | 5,106,000,000 | 23,783,000,000 | 22,488,000,000 | 20,562,000,000 | |||
Operating profit | 2,217,000,000 | 2,154,000,000 | 1,972,000,000 | 1,694,000,000 | 2,299,000,000 | 1,812,000,000 | 1,702,000,000 | 1,397,000,000 | 8,037,000,000 | 7,210,000,000 | 6,331,000,000 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,870,000,000 | 1,753,000,000 | 1,568,000,000 | |||
Total assets | 71,526,000,000 | ' | ' | ' | 66,221,000,000 | ' | ' | ' | 71,526,000,000 | 66,221,000,000 | 64,852,000,000 | |||
Goodwill | 26,542,000,000 | ' | ' | ' | 26,395,000,000 | ' | ' | ' | 26,542,000,000 | 26,395,000,000 | 26,458,000,000 | |||
Additions to property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 1,984,000,000 | 2,030,000,000 | 1,872,000,000 | |||
Pharmacy Services Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment reporting information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 76,208,000,000 | [1],[2] | 73,444,000,000 | [1],[2] | 58,874,000,000 | [1],[2] |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 4,237,000,000 | [2] | 3,808,000,000 | [2] | 3,279,000,000 | [2] |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 3,086,000,000 | [2] | 2,679,000,000 | [2] | 2,220,000,000 | [2] |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 560,000,000 | 517,000,000 | 433,000,000 | |||
Total assets | 38,343,000,000 | ' | ' | ' | 36,057,000,000 | ' | ' | ' | 38,343,000,000 | 36,057,000,000 | 35,704,000,000 | |||
Goodwill | 19,658,000,000 | ' | ' | ' | 19,646,000,000 | ' | ' | ' | 19,658,000,000 | 19,646,000,000 | 19,657,000,000 | |||
Additions to property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 313,000,000 | 422,000,000 | 461,000,000 | |||
Net revenues, retail co-payments | ' | ' | ' | ' | ' | ' | ' | ' | 7,900,000,000 | 8,400,000,000 | 7,900,000,000 | |||
Retail Pharmacy Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment reporting information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 65,618,000,000 | [2] | 63,641,000,000 | [2] | 59,579,000,000 | [2] |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 20,112,000,000 | [2] | 19,091,000,000 | [2] | 17,469,000,000 | [2] |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 6,268,000,000 | [2] | 5,636,000,000 | [2] | 4,913,000,000 | [2] |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,217,000,000 | 1,153,000,000 | 1,060,000,000 | |||
Total assets | 30,191,000,000 | ' | ' | ' | 29,492,000,000 | ' | ' | ' | 30,191,000,000 | 29,492,000,000 | 28,632,000,000 | |||
Goodwill | 6,884,000,000 | ' | ' | ' | 6,749,000,000 | ' | ' | ' | 6,884,000,000 | 6,749,000,000 | 6,801,000,000 | |||
Additions to property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 1,610,000,000 | 1,555,000,000 | 1,353,000,000 | |||
Corporate Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment reporting information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | -751,000,000 | -694,000,000 | -616,000,000 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 93,000,000 | 83,000,000 | 75,000,000 | |||
Total assets | 4,420,000,000 | ' | ' | ' | 1,408,000,000 | ' | ' | ' | 4,420,000,000 | 1,408,000,000 | 1,121,000,000 | |||
Goodwill | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 | |||
Additions to property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 61,000,000 | 53,000,000 | 58,000,000 | |||
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment reporting information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | -15,065,000,000 | [2] | -13,965,000,000 | [2] | -11,373,000,000 | [2] |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | -566,000,000 | [2] | -411,000,000 | [2] | -186,000,000 | [2] |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | -566,000,000 | [2] | -411,000,000 | [2] | -186,000,000 | [2] |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Total assets | -1,428,000,000 | ' | ' | ' | -736,000,000 | ' | ' | ' | -1,428,000,000 | -736,000,000 | -605,000,000 | |||
Goodwill | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 | |||
Additions to property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Number of type of transactions related to intersegment eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | |||
Intersegment activity, net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,300,000,000 | 3,400,000,000 | 2,600,000,000 | |||
Intersegment activity, gross profit and operating profit | ' | ' | ' | ' | ' | ' | ' | ' | $566,000,000 | $411,000,000 | $186,000,000 | |||
[1] | Net revenues of the Pharmacy Services Segment include approximately $7.9 billion, $8.4 billion and $7.9 billion of Retail co-payments for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
[2] | Intersegment eliminations relate to two types of transactions: (i) Intersegment revenues that occur when Pharmacy Services Segment clients use Retail Pharmacy Segment stores to purchase covered products. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue on a standalone basis and (ii) Intersegment revenues, gross profit and operating profit that occur when Pharmacy Services Segment clients, through the Company’s intersegment activities (such as the Maintenance Choice program), elect to pick up their maintenance prescriptions at Retail Pharmacy Segment stores instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue, gross profit and operating profit on a standalone basis. Beginning in the fourth quarter of 2011, the Maintenance Choice eliminations reflect all discounts available for the purchase of mail order prescription drugs. The following amounts are eliminated in consolidation in connection with the item (ii) intersegment activity: net revenues of $4.3 billion, $3.4 billion and $2.6 billion for the years ended December 31, 2013, 2012 and 2011, respectively; gross profit and operating profit of $566 million, $411 million and $186 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator for earnings per common share calculation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $1,266 | $1,255 | $1,125 | $954 | $1,125 | $1,010 | $962 | $772 | $4,600 | $3,869 | $3,489 |
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 0 | 2 | 4 |
Income from continuing operations attributable to CVS Caremark, basic | ' | ' | ' | ' | ' | ' | ' | ' | 4,600 | 3,871 | 3,493 |
Loss from discontinued operations, net of tax | -1 | -6 | -1 | 0 | 0 | -5 | -1 | -1 | -8 | -7 | -31 |
Net income attributable to CVS Caremark | $1,265 | $1,249 | $1,124 | $954 | $1,125 | $1,005 | $962 | $772 | $4,592 | $3,864 | $3,462 |
Denominator for earnings per common share calculation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares, basic | ' | ' | ' | ' | ' | ' | ' | ' | 1,217 | 1,271 | 1,338 |
Stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 8 | 8 |
Restricted stock units (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Weighted average common shares, diluted | ' | ' | ' | ' | ' | ' | ' | ' | 1,226 | 1,280 | 1,347 |
Basic earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to CVS Caremark (in dollars per share) | $1.06 | $1.03 | $0.92 | $0.77 | $0.91 | $0.80 | $0.75 | $0.60 | $3.78 | $3.05 | $2.61 |
Loss from discontinued operations attributable to CVS Caremark (in dollars per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ($0.01) | ($0.01) | ($0.02) |
Net income attributable to CVS Caremark (in dollars per share) | $1.06 | $1.03 | $0.92 | $0.77 | $0.91 | $0.79 | $0.75 | $0.59 | $3.77 | $3.04 | $2.59 |
Diluted earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to CVS Caremark (in dollars per share) | $1.05 | $1.02 | $0.91 | $0.77 | $0.90 | $0.79 | $0.75 | $0.59 | $3.75 | $3.02 | $2.59 |
Loss from discontinued operations attributable to CVS Caremark (in dollars per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ($0.01) | ($0.01) | ($0.02) |
Net income attributable to CVS Caremark (in dollars per share) | $1.05 | $1.02 | $0.91 | $0.77 | $0.90 | $0.79 | $0.75 | $0.59 | $3.74 | $3.02 | $2.57 |
Subsequent_Event_Details
Subsequent Event (Details) (Coram LLC [Member], Subsequent Event [Member], USD $) | 0 Months Ended |
In Billions, unless otherwise specified | Jan. 16, 2014 |
Branch | |
Patient | |
Subsequent Event [Line Items] | ' |
Acquisition price | $2.10 |
Number of patients | 165,000 |
Number of branch locations acquired | 85 |
Employee [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of employees | 4,600 |
Nurses [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of employees | 600 |
Dietitians [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of employees | 250 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $32,830 | $31,932 | $31,248 | $30,751 | $31,397 | $30,237 | $30,694 | $30,792 | $126,761 | $123,120 | $107,080 |
Gross profit | 6,338 | 6,027 | 5,841 | 5,577 | 6,294 | 5,645 | 5,443 | 5,106 | 23,783 | 22,488 | 20,562 |
Operating profit | 2,217 | 2,154 | 1,972 | 1,694 | 2,299 | 1,812 | 1,702 | 1,397 | 8,037 | 7,210 | 6,331 |
Income from continuing operations | 1,266 | 1,255 | 1,125 | 954 | 1,125 | 1,010 | 962 | 772 | 4,600 | 3,869 | 3,489 |
Loss from discontinued operations, net of tax | -1 | -6 | -1 | 0 | 0 | -5 | -1 | -1 | -8 | -7 | -31 |
Net income | 1,265 | 1,249 | 1,124 | 954 | 1,125 | 1,005 | 961 | 771 | 4,592 | 3,862 | 3,458 |
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 0 | 2 | 4 |
Net income attributable to CVS Caremark | $1,265 | $1,249 | $1,124 | $954 | $1,125 | $1,005 | $962 | $772 | $4,592 | $3,864 | $3,462 |
Basic earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to CVS Caremark (in dollars per share) | $1.06 | $1.03 | $0.92 | $0.77 | $0.91 | $0.80 | $0.75 | $0.60 | $3.78 | $3.05 | $2.61 |
Income (loss) from discontinued operations attributable to CVS Caremark (in dollars per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ($0.01) | ($0.01) | ($0.02) |
Net income attributable to CVS Caremark (in dollars per share) | $1.06 | $1.03 | $0.92 | $0.77 | $0.91 | $0.79 | $0.75 | $0.59 | $3.77 | $3.04 | $2.59 |
Diluted earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to CVS Caremark (in dollars per share) | $1.05 | $1.02 | $0.91 | $0.77 | $0.90 | $0.79 | $0.75 | $0.59 | $3.75 | $3.02 | $2.59 |
Income (loss) from discontinued operations attributable to CVS Caremark (in dollars per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ($0.01) | ($0.01) | ($0.02) |
Net income attributable to CVS Caremark (in dollars per share) | $1.05 | $1.02 | $0.91 | $0.77 | $0.90 | $0.79 | $0.75 | $0.59 | $3.74 | $3.02 | $2.57 |
Dividends per common share | $0.23 | $0.23 | $0.23 | $0.23 | $0.16 | $0.16 | $0.16 | $0.16 | $0.90 | $0.65 | $0.50 |
High | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NYSE Stock Price (in dollars per share) | $71.99 | $62.36 | $60.70 | $56.07 | $49.80 | $48.69 | $46.93 | $45.88 | $71.99 | $49.80 | ' |
Low | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NYSE Stock Price (in dollars per share) | $56.32 | $56.68 | $53.94 | $49 | $44.33 | $43.65 | $43.08 | $41.01 | $49 | $41.01 | ' |