CVS Health (CVS) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 01, 2018
Document and Entity Information
Entity Registrant Name	CVS HEALTH Corp
Entity Central Index Key	64,803
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,018,063,785
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Operations
Net revenues	$ 46,708,000,000	$ 45,685,000,000	$ 92,401,000,000	$ 90,199,000,000
Cost of revenue	39,507,000,000	38,759,000,000	78,341,000,000	76,702,000,000
Gross profit	7,201,000,000	6,926,000,000	14,060,000,000	13,497,000,000
Operating expenses
Goodwill impairments	3,921,000,000	135,000,000	3,921,000,000	135,000,000
Other operating expenses	4,867,000,000	4,674,000,000	9,780,000,000	9,452,000,000
Operating expenses		4,809,000,000		9,587,000,000
Operating profit (loss)	(1,587,000,000)	2,117,000,000	359,000,000	3,910,000,000
Interest expense, net	475,000,000	247,000,000	948,000,000	499,000,000
Other expense	3,000,000	7,000,000	6,000,000	14,000,000
Income (loss) before income tax provision	(2,065,000,000)	1,863,000,000	(595,000,000)	3,397,000,000
Income tax provision	497,000,000	766,000,000	969,000,000	1,338,000,000
Income (loss) from continuing operations	(2,562,000,000)	1,097,000,000	(1,564,000,000)	2,059,000,000
Income (loss) from discontinued operations, net of tax	(1,000,000)	1,000,000	(1,000,000)	(8,000,000)
Net income (loss)	(2,563,000,000)	1,098,000,000	(1,565,000,000)	2,051,000,000
Net income attributable to noncontrolling interest				(1,000,000)
Net income (loss) attributable to CVS Health	$ (2,563,000,000)	$ 1,098,000,000	$ (1,565,000,000)	$ 2,050,000,000
Basic earnings (loss) per share:
Income (loss) from continuing operations attributable to CVS Health (in dollars per share)	$ (2.52)	$ 1.07	$ (1.54)	$ 2
Loss from discontinued operations attributable to CVS Health (in dollars per share)				(0.01)
Net income (loss) attributable to CVS Health (in dollars per share)	$ (2.52)	$ 1.07	$ (1.54)	$ 1.99
Weighted average shares outstanding (in shares)	1,018	1,019	1,017	1,024
Diluted earnings (loss) per share:
Income (loss) from continuing operations attributable to CVS Health (in dollars per share)	$ (2.52)	$ 1.07	$ (1.54)	$ 1.99
Loss from discontinued operations attributable to CVS Health (in dollars per share)				(0.01)
Net income (loss) attributable to CVS Health (in dollars per share)	$ (2.52)	$ 1.07	$ (1.54)	$ 1.98
Weighted average shares outstanding (in shares)	1,018	1,024	1,017	1,029
Dividends declared per share (in dollars per share)	$ 0.50	$ 0.50	$ 1	$ 1

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (2,563)	$ 1,098	$ (1,565)	$ 2,051
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(27)	(10)	(26)	(2)
Net cash flow hedges, net of tax	(4)		339	1
Total other comprehensive income (loss)	(31)	(10)	313	(1)
Comprehensive income (loss)	(2,594)	1,088	(1,252)	2,050
Comprehensive income attributable to noncontrolling interest				(1)
Comprehensive income (loss) attributable to CVS Health	$ (2,594)	$ 1,088	$ (1,252)	$ 2,049

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 43,815	$ 1,696
Short-term investments	96	111
Accounts receivable, net	14,158	13,181
Inventories	14,922	15,296
Other current assets	799	945
Total current assets	73,790	31,229
Property and equipment, net	10,249	10,292
Goodwill	34,220	38,451
Intangible assets, net	13,322	13,630
Other assets	1,709	1,529
Total assets	133,290	95,131
Liabilities:
Accounts payable	8,570	8,863
Claims and discounts payable	11,743	10,355
Accrued expenses	7,640	6,609
Short-term debt		1,276
Current portion of long-term debt	3,540	3,545
Total current liabilities	31,493	30,648
Long-term debt	61,569	22,181
Deferred income taxes	3,054	2,996
Other long-term liabilities	1,563	1,611
Total Liabilities	97,679	57,436
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; 1,716 shares issued and 1,017 shares outstanding at June 30, 2018 and 1,712 shares issued and 1,014 shares outstanding at December 31, 2017	17	17
Capital surplus	32,264	32,079
Treasury stock, at cost: 698 shares at June 30, 2018 and 697 shares at December 31, 2017	(37,749)	(37,765)
Shares held in trust: 1 share at June 30, 2018 and December 31, 2017	(31)	(31)
Retained earnings	40,965	43,556
Accumulated other comprehensive income (loss)	141	(165)
Total CVS Health shareholders’ equity	35,607	37,691
Noncontrolling interest	4	4
Total shareholders’ equity	35,611	37,695
Total liabilities and shareholders’ equity	$ 133,290	$ 95,131

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized (in shares)	100,000	100,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized (in shares)	3,200,000,000	3,200,000,000
Common Stock, shares issued (in shares)	1,716,000,000	1,712,000,000
Common Stock, shares outstanding (in shares)	1,017,000,000	1,014,000,000
Treasury Stock, shares (in shares)	698,000,000	697,000,000
Shares held in trust: 1 share at September 30, 2017 and December 31, 2016 (in shares)	1,000,000	1,000,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Cash receipts from customers	$ 87,977,000,000	$ 88,343,000,000
Cash paid for inventory and prescriptions dispensed by retail network pharmacies	(72,500,000,000)	(73,748,000,000)
Cash paid to other suppliers and employees	(8,471,000,000)	(7,000,000,000)
Interest received	194,000,000	10,000,000
Interest paid	(560,000,000)	(539,000,000)
Income taxes paid	(1,351,000,000)	(1,534,000,000)
Net cash provided by operating activities	5,289,000,000	5,532,000,000
Cash flows from investing activities:
Purchases of property and equipment	(912,000,000)	(888,000,000)
Proceeds from sale of property and equipment and other assets	7,000,000	13,000,000
Acquisitions (net of cash acquired) and other investments	(573,000,000)	(275,000,000)
Purchase of available-for-sale investments	(36,000,000)
Maturity of available-for-sale investments	37,000,000	16,000,000
Proceeds from sale of subsidiary	725,000,000
Net cash used in investing activities	(752,000,000)	(1,134,000,000)
Cash flows from financing activities:
Decrease in short-term debt	(1,276,000,000)	(774,000,000)
Proceeds from issuance of long-term debt	39,376,000,000
Repayments of long-term debt	(1,000,000)
Derivative settlements	446,000,000
Repurchase of common stock		(3,961,000,000)
Dividends paid	(1,018,000,000)	(1,028,000,000)
Proceeds from exercise of stock options	130,000,000	189,000,000
Payments for taxes related to net share settlement of equity awards	(37,000,000)	(60,000,000)
Other		(1,000,000)
Net cash provided by (used in) financing activities	37,620,000,000	(5,635,000,000)
Net increase (decrease) in cash, cash equivalents and restricted cash	42,157,000,000	(1,237,000,000)
Cash, cash equivalents and restricted cash at the beginning of the period	1,900,000,000	3,520,000,000
Cash, cash equivalents and restricted cash at the end of the period	44,057,000,000	2,283,000,000
Reconciliation of net income (loss) to net cash provided by operating activities:
Net income (loss)	(1,565,000,000)	2,051,000,000
Adjustments required to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,291,000,000	1,242,000,000
Goodwill impairments	3,921,000,000	135,000,000
Stock-based compensation	110,000,000	108,000,000
Deferred income taxes and other noncash items	252,000,000	21,000,000
Change in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, net	(1,059,000,000)	(114,000,000)
Inventories	369,000,000	492,000,000
Other current assets	(45,000,000)	(31,000,000)
Other assets	(129,000,000)	(38,000,000)
Accounts payable and claims and discounts payable	1,045,000,000	180,000,000
Accrued expenses	1,143,000,000	1,345,000,000
Other long-term liabilities	(44,000,000)	141,000,000
Net cash provided by operating activities	$ 5,289,000,000	$ 5,532,000,000

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies
Accounting Policies	CVS Health Corporation Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 – Accounting Policies Description of business CVS Health Corporation and its subsidiaries (collectively, “CVS Health” or the “Company”) together comprise 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/LTC and Corporate, which are described below. Pharmacy Services Segment (the “PSS”) - The PSS provides a full range of pharmacy benefit management services including plan design offerings and administration, formulary management, Medicare Part D services, mail order, specialty pharmacy and infusion services, retail pharmacy network management services, prescription management systems, clinical services, disease management services and medical spend management. The Company’s clients are primarily employers, insurance companies, unions, government employee groups, health plans, Medicare Part D, Managed Medicaid plans, plans offered on the public and private exchanges, 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 more than 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 primarily under the CVS Caremark ® , Navarro ® Health Services and Advanced Care Scripts TM (“ACS Pharmacy”) names. The Company also provides specialty infusion services and enteral nutrition services through Coram LLC and its subsidiaries (collectively, “Coram”). The PSS also provides health management programs, which include integrated disease management for 18 conditions, through the Company’s AccordantCare TM rare disease management offering. In addition, through the Company’s SilverScript Insurance Company (“SilverScript”) subsidiary, the PSS is a national provider of prescription 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 PSS operates primarily under the CVS Caremark ® Pharmacy Services, Caremark ® , CVS Caremark ® , CVS Specialty ® , AccordantCare TM , SilverScript ® , Wellpartner ® , Coram ® , NovoLogix ® , Navarro ® Health Services and ACS Pharmacy TM names. As of June 30, 2018, the PSS operated 25 retail specialty pharmacy stores, 18 specialty mail order pharmacies, four mail order dispensing pharmacies, and 87 branches for infusion and enteral services, including approximately 70 ambulatory infusion suites and three centers of excellence, located in 42 states, Puerto Rico and the District of Columbia. Retail/LTC Segment (the “RLS”) - The RLS sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, greeting cards, and photo finishing services, through the Company’s CVS Pharmacy ® , CVS ® , CVS Pharmacy y más ® , Longs Drugs ® , Navarro Discount Pharmacy ® and Drogaria Onofre TM retail stores and online through CVS.com ® , Navarro.com TM and Onofre.com.br TM . The RLS 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. T he RLS also has long-term care (“LTC”) operations, which distribute prescription drugs and provide related pharmacy consulting and other ancillary services to chronic care facilities and other care settings. Prior to January 2, 2018, the RLS also provided commercialization services under the name RxCrossroads ® (“RxC”). See “Note 3 – Goodwill” for a discussion of the divestiture of RxC. As of June 30, 2018, the RLS included 9,880 retail stores (of which 8,130 were our stores that operated a pharmacy and 1,702 were our pharmacies located within Target stores) located in 49 states, the District of Columbia, Puerto Rico and Brazil operating primarily under the CVS Pharmacy ® , CVS ® , CVS Pharmacy y más ® , Longs Drugs ® , Navarro Discount Pharmacy ® and Drogaria Onofre TM names, 37 onsite pharmacies primarily operating under the CarePlus CVS Pharmacy ® , CarePlus ® and CVS Pharmacy ® names, and 1,112 retail health care clinics operating under the MinuteClinic ® name (of which 1,108 were located in our retail pharmacy stores or Target stores), and our online retail websites, CVS.com ® , Navarro.com TM and Onofre.com.br TM . LTC operations are comprised of 156 spoke pharmacies that primarily handle new prescription orders, of which 30 are also hub pharmacies that use proprietary automation to support spoke pharmacies with refill prescriptions. LTC operates primarily under the Omnicare ® and NeighborCare ® names. 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, information technology and finance departments. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of CVS Health Corporation and its subsidiaries have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. In accordance with such rules and regulations, certain information and accompanying note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes the disclosures included herein are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, which are included in Exhibit 13 to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2017 (“2017 Form 10‑K”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Because of the influence of various factors on the Company’s operations, including business combinations, certain holidays and other seasonal influences, net income for any interim period may not be comparable to the same interim period in previous years or necessarily indicative of income for the full year. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. All material intercompany balances and transactions have been eliminated. The Company continually evaluates its investments to determine if they represent variable interests in a VIE. If the Company determines that it has a variable interest in a VIE, the Company then evaluates if it is the primary beneficiary of the VIE. The evaluation is a qualitative assessment as to whether the Company has the ability to direct the activities of a VIE that most significantly impact the entity’s economic performance. The Company consolidates a VIE if it is considered to be the primary beneficiary. Assets and liabilities of VIEs for which the Company is the primary beneficiary were not significant to the Company’s condensed consolidated financial statements. VIE creditors do not have recourse against the general credit of the Company. Fair Value of Financial Instruments 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. As of June 30, 2018, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, and the contingent consideration liability included in accrued expenses approximated their fair value due to the nature of these financial instruments. The Company invests in money market funds, commercial paper, time deposits and debt securities that are classified as cash and cash equivalents within the accompanying condensed 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. The Company’s short-term investments of $96 million at June 30, 2018 consist of certificates of deposit with initial maturities of greater than three months when purchased that mature within one year from the balance sheet date. These investments, which are classified within Level 1 of the fair value hierarchy, are carried at fair value, which approximated historical cost at June 30, 2018. The carrying amount and estimated fair value of the Company’s total long-term debt was $65.1 billion and $64.7 billion, respectively, as of June 30, 2018. The fair value of the Company’s long-term debt was estimated based on quoted prices currently offered in active markets for the Company’s debt, which is considered Level 1 of the fair value hierarchy. Accounts Receivable, Net Included within accounts receivable, net are the following, which are reflected net of allowance for doubtful accounts, customer credit allowances, and contractual allowances: June 30, December 31, In millions 2018 2017 Trade receivables $ 6,611 $ 7,873 Vendor and manufacturer receivables 7,038 5,109 Other receivables 509 199 Total accounts receivable, net $ 14,158 $ 13,181 Related Party Transactions The Company has an equity method investment in SureScripts, LLC (“SureScripts”), which operates a clinical health information network. The PSS and RLS utilize this clinical health information network in providing services to its client plan members and retail customers. The Company expensed fees for the use of this network of approximately $8 million in both the three months ended June 30, 2018 and 2017, and expensed fees for the use of this network of approximately $30 million and $25 million in the six months ended June 30, 2018 and 2017, respectively. The Company’s investment in and equity in earnings of SureScripts for all periods presented is immaterial. The Company has an equity method investment in Heartland Healthcare Services (“Heartland”). Heartland operates several long-term care pharmacies in four states. Heartland paid the Company approximately $36 million and $30 million for pharmaceutical inventory purchases during the three months ended June 30, 2018 and 2017, respectively, and $71 million and $70 million for pharmaceutical inventory purchases during the six months ended June 30, 2018 and 2017, respectively. Additionally, the Company performs certain collection functions for Heartland and then passes those customer cash collections back to Heartland. The Company’s investment in and equity in earnings of Heartland for all periods presented is immaterial. Discontinued Operations 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 Bob’s Stores and Linens ‘n Things, both of which subsequently filed for bankruptcy. See “Note 11 – Commitments and Contingencies” to the condensed consolidated financial statements. The Company’s discontinued operations include lease-related costs which the Company believes it will likely be required to satisfy pursuant to its lease guarantees. Adoption of New Revenue Recognition Standard In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In March 2016, the FASB issued ASU 2016-08, “Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net),” which amends the principal-versus-agent implementation guidance and in April 2016 the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends the guidance in those areas in the new revenue recognition standard. The Company adopted the new revenue recognition standard as of January 1, 2018 using the modified retrospective method and applying the new standard to all contracts. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. One difference was identified between the previous accounting guidance and the new accounting guidance in the RLS related to the accounting for the Company’s ExtraBucks ® Rewards customer loyalty program, which was previously accounted for under a cost deferral method. Under the new standard, this program is accounted for under a revenue deferral method. The Company recognized the cumulative effect of initially applying the new revenue recognition standard as an adjustment to beginning retained earnings. On January 1, 2018, the Company recorded an after-tax transition adjustment to reduce retained earnings by approximately $13 million ($17 million prior to tax effect). The Company expects the impact of the adoption of the new standard to be immaterial to its net revenue and net income on an ongoing basis. The following is a discussion of the Company’s revenue recognition policies by segment under the new revenue recognition accounting standard: Pharmacy Services Segment The PSS sells prescription drugs directly through its mail service dispensing pharmacies and indirectly through its retail pharmacy network. The Company’s pharmacy benefit arrangements are accounted for in a manner consistent with a master supply arrangement as there are no contractual minimum volumes and each prescription is considered a separate purchasing decision and distinct performance obligation transferred at a point in time. Pharmacy benefit management services performed in connection with each prescription claim are considered part of a single performance obligation which culminates in the dispensing of prescription drugs. The Company recognizes revenue using the gross method at the contract price negotiated with its clients when the Company has concluded it controls the prescription drug before it is transferred to the client plan members. The Company controls prescriptions dispensed indirectly through its retail pharmacy network because it has separate contractual arrangements with those pharmacies, has discretion in setting the price for the transaction and assumes primary responsibility for fulfilling the promise to provide prescription drugs to its client plan members while also performing the related pharmacy benefit management services. Net revenues include (i) the portion of the price the client pays directly to the PSS, net of any discounts earned on brand drugs or other discounts and refunds paid back to the client (see “Drug Discounts” and “Guarantees” 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) claims based administrative fees for retail pharmacy network contracts. Sales taxes are not included in revenue. The PSS recognizes revenue when control of the prescription drugs is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those prescription drugs. 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 drug is delivered to the client plan member. At the time of delivery, the PSS has performed substantially all of its performance 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’ retail pharmacy network and associated administrative fees are recognized at the PSS’ point-of-sale, which is when the claim is adjudicated by the PSS’ online claims processing system and the Company has transferred control of the prescription drug and performed all of its performance obligations. For contracts under which the PSS acts as an agent or does not control the prescription drugs prior to transfer to the client, revenue is recognized using the net method. Drug discounts – The PSS records revenue net of manufacturers’ rebates, earned by its clients based on their plan members’ utilization of brand-name formulary drugs. The PSS estimates these rebates at period-end based on actual and estimated claims data and its estimates of the manufacturers’ rebates earned by its clients. The estimates are based on the best available data at period-end and recent history for the various factors that can affect the amount of rebates due to the client. The PSS adjusts its rebates payable to clients to the actual amounts paid when these rebates are paid or as significant events occur. Any cumulative effect of these adjustments is recorded against revenues as identified. Adjustments generally result from contract changes with clients or manufacturers that have retroactive rebate adjustments, differences between the estimated and actual product mix subject to rebates, or whether the product was included in the applicable formulary. The effect of adjustments between estimated and actual amounts have not been material to the Company’s results of operations or financial position. Guarantees – The PSS also adjusts revenues for refunds owed to the client resulting from pricing guarantees and performance against defined service and performance metrics. The inputs to these estimates are not subject to a high degree of subjectivity or volatility. The effect of adjustments between estimated and actual amounts have not been material to the Company’s results of operations or financial position. Medicare Part D – The PSS participates in the federal government’s Medicare Part D program as a prescription drug plan (“PDP”) through its SilverScript subsidiary. 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 United States Centers for Medicare and Medicaid Services (“CMS”). The insurance premiums include a beneficiary premium, which is the responsibility of the PDP member, and can be subsidized by CMS in the case of low-income members, and a direct premium paid by CMS. Premiums collected in advance are initially recorded within accrued expenses and other current liabilities and are then recognized ratably as revenue 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 the PSS is paid an estimated prospective Member Co-Payment subsidy, each month. If the prospective Member Co-Payment subsidies received differ from the amounts earned from actual prescriptions transferred, the difference is recorded in either accounts receivable or accrued expenses. The PSS accounts for Member Co-Payments (including the amounts subsidized by CMS) using the gross method consistent with revenue recognition policies for Mail Co-Payments and Retail Co-Payments. The Company estimates variable consideration in the form of amounts payable, or receivable from CMS under a risk-sharing feature of the Medicare Part D program design, referred to as the risk corridor, and adjusts revenue based on calculations of additional subsidies to be received or owed to CMS at the end of the reporting year. The Company also estimates cost of revenues for claims that have been reported and are in the process of being paid or contested and for its estimate of claims that have been incurred but have not yet been reported. Historically, the effect of these adjustments has not been material to the Company’s results of operations or financial position. Retail/LTC Segment Retail Pharmacy - The retail drugstores recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation, separate and distinct from other prescription claims under other retail network arrangements. Revenues are adjusted for refunds owed to the third party payer for pricing guarantees and performance against defined value-based service and performance metrics. The inputs to these estimates are not subject to a high degree of subjectivity or volatility. The effect of adjustments between estimated and actual amounts have not been material to the Company’s results of operations or financial position. Revenue from CVS Health gift cards purchased by customers is deferred as a contract liability until goods or services are transferred. Any amounts not expected to be redeemed by customers (i.e., breakage) are recognized based on historical redemption patterns. Customer returns are not material to the Company’s results of operations or financial position. Loyalty Program - The Company’s customer loyalty program, ExtraCare ® , is comprised of two components, ExtraSavings TM and ExtraBucks ® Rewards. ExtraSavings are coupons that are recorded as a reduction of revenue when redeemed as the Company concluded that they do not represent a promise to the customer to deliver additional goods or services at the time of issuance because they are not tied to a specific transaction or spending level. ExtraBucks Rewards are accumulated by customers based on their historical spending levels. Thus, the Company has determined that there is an additional performance obligation to those customers at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the ExtraBucks Rewards transaction based upon the relative standalone selling price, which considers historical redemption patterns for the rewards. Revenue allocated to ExtraBucks Rewards is recognized as those rewards are redeemed. At the end of each period, unredeemed rewards are reflected as a contract liability. Long-term Care - Revenue is recognized when control of the promised goods or services are transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Each prescription claim represents a separate performance obligation of the Company, separate and distinct from other prescription claims under customer arrangements. A significant portion of the revenue from sales of pharmaceutical and medical products are reimbursed by the federal Medicare Part D program and, to a lesser extent, state Medicaid programs. The Company monitors its revenues and receivables from these reimbursement sources, as well as other third party insurance payors, and reduces revenue at the revenue recognition date, to properly account for the variable consideration due to anticipated differences between billed and reimbursed amounts. Accordingly, the total net revenues and receivables reported in the Company’s financial statements are recorded at the amount expected to be ultimately received from these payors. Patient co-payments associated with Medicare Part D, certain state Medicaid programs, Medicare Part B and certain third party payors are typically not collected at the time products are delivered or services are rendered, but are billed to the individuals as part of normal billing procedures and subject to normal accounts receivable collections procedures. Health Care Clinics - For services provided by the Company’s health care clinics, revenue recognition occurs for completed services provided to patients, with adjustments taken for third party payor contractual obligations and patient direct bill historical collection rates. Disaggregation of Revenue The following table disaggregates the Company’s revenue by major source in each segment for the three and six months ended June 30, 2018: Pharmacy Intersegment Consolidated In millions Services Retail/LTC Eliminations Totals Three Months Ended June 30, 2018 Major goods/services lines: Pharmacy $ 32,353 $ 15,805 $ (7,211) $ 40,947 Front Store — 4,707 — 4,707 Other 894 160 — 1,054 Total $ 33,247 $ 20,672 $ (7,211) $ 46,708 Pharmacy Services distribution channel: Mail choice (1) $ 11,787 Pharmacy network (2) 20,566 Other 894 Total $ 33,247 Six Months Ended June 30, 2018 Major goods/services lines: Pharmacy $ 63,115 $ 31,305 $ (14,168) $ 80,252 Front Store — 9,433 — 9,433 Other 2,350 366 — 2,716 Total $ 65,465 $ 41,104 $ (14,168) $ 92,401 Pharmacy Services distribution channel: Mail choice (1) $ 22,995 Pharmacy network (2) 40,120 Other 2,350 Total $ 65,465 (1) Pharmacy Services mail choice is defined as claims filled at a Pharmacy Services mail facility, which includes specialty mail claims inclusive of Specialty Connect ® claims picked up at retail, as well as prescriptions filled at our retail pharmacies under the Maintenance Choice ® program. (2) Pharmacy Services pharmacy network is defined as claims filled at retail and specialty retail pharmacies, including our retail pharmacies and long-term care pharmacies, but excluding Maintenance Choice activity, which is included within the mail choice category. Contract Balances Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example ExtraBucks ® Rewards and unredeemed CVS Health gift cards. The consideration received remains a contract liability until goods or services have been provided to the retail customer. In addition, the Company recognizes breakage on CVS Health gift cards based on historical redemption patterns. The following table provides information about receivables and contract liabilities from contracts with customers: June 30, December 31, In millions 2018 2017 Trade receivables (included in accounts receivable, net) $ 6,611 $ 7,873 Contract liabilities (included in accrued expenses) 72 53 During the six months ended June 30, 2018, the contract liabilities balance includes increases related to customers’ earnings in ExtraBucks Rewards or issuances of CVS Health gift cards and decreases for revenues recognized during the period as a result of the redemption of ExtraBucks Rewards or CVS Health gift cards and breakage of CVS Health gift cards. Below is a summary of the changes: In millions Balance, December 31, 2017 $ 53 Adoption of ASU 2014-09 17 Loyalty program earnings and gift card issuances 166 Redemption and breakage (164) Balance, June 30, 2018 $ 72 Impact of New Revenue Recognition Standard on Financial Statement Line Items The Company adopted ASU 2014-09 using the modified retrospective method. The cumulative effect of applying the new guidance to all contracts was recorded as an adjustment to retained earnings as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the condensed consolidated balance sheet as of January 1, 2018: Impact of Change in Accounting Policy As Reported Adjusted In millions December 31, 2017 Adjustments January 1, 2018 Condensed Consolidated Balance Sheet: Accrued expenses $ 6,609 $ 17 $ 6,626 Deferred income taxes 2,996 (4) 2,992 Total liabilities 57,436 13 57,449 Retained earnings 43,556 (13) 43,543 Total CVS Health shareholders' equity 37,691 (13) 37,678 Total shareholders' equity 37,695 (13) 37,682 The following tables compare the reported condensed consolidated balance sheet, statement of operations, and statement of cash flows, as of and for the three and six months ended June 30, 2018, to the pro forma amounts had the previous revenue accounting guidance remained in effect: Impact of Change in Accounting Policy As Reported Balances For the Without Three Months Ended Adoption of In millions June 30, 2018 Adjustments Topic 606 Condensed Consolidated Statement of Operations: Net revenues $ 46,708 $ 3 $ 46,711 Cost of revenues 39,507 2 39,509 Gross profit 7,201 1 7,202 Operating profit (loss) (1,587) 1 (1,586) Income (loss) before income tax provision (2,065) 1 (2,064) Income tax provision 497 — 497 Income (loss) from continuing operations (2,562) 1 (2,561) Net income (loss) (2,563) 1 (2,562) Net income (loss) attributable to CVS Health (2,563) 1 (2,562) Impact of Change in Accounting Policy As Reported Balances As of/For the Without Six Months Ended Adoption of In millions June 30, 2018 Adjustments Topic 606 Condensed Consolidated Statement of Operations: Net revenues $ 92,401 $ 10 $ 92,411 Cost of revenues 78,341 6 78,347 Gross profit 14,060 4 14,064 Operating profit 359 4 363 Income (loss) before income tax provision (595) 4 (591) Income tax provision 969 1 970 Income (loss) from continuing operations (1,564) 3 (1,561) Net income (loss) (1,565) 3 (1,562) Net income (loss) attributable to CVS Health (1,565) 3 (1,562) Condensed Consolidated Balance Sheet: Accrued expenses 7,640 (21) 7,619 Deferred income taxes 3,054 5 3,059 Total liabilities 97,679 (16) 97,663 Retained earnings 40,965 16 40,981 Total CVS Health shareholders' equity 35,607 16 35,623 Total shareholders' equity 35,611 16 35,627 Condensed Consolidated Statement of Cash Flow: Reconciliation of net income (loss) to net cash provided by operating activities: Net income (loss) (1,565) 3 (1,562) Deferred income taxes and other noncash items 252 1 253 Accrued expenses 1,143 (4) 1,139 Other Accounting Pronouncements Recently Adopted In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU requires equity investments, except those under the equity method of accounting or those that result

Proposed Aetna Acquisition

Proposed Aetna Acquisition	6 Months Ended
	Jun. 30, 2018
Proposed Aetna Acquisition
Proposed Aetna Acquisition	Note 2 – Proposed Aetna Acquisition On December 3, 2017, the Company entered into a definitive merger agreement to acquire all of the outstanding shares of Aetna Inc. (“Aetna”) for a combination of cash and stock. Under the terms of the merger agreement, Aetna shareholders will receive $145.00 per share in cash and 0.8378 CVS Health shares for each Aetna share. The transaction values Aetna at approximately $207 per share or approximately $69 billion based on the Company’s 5-day volume weighted average price ending December 1, 2017 of $74.21 per share. Including the assumption of Aetna’s debt, the total value of the transaction is approximately $77 billion. The final purchase price will be determined based on the Company’s stock price on the date of closing of the transaction. The proposed transaction was approved by stockholders of CVS Health and shareholders of Aetna at meetings held on March 13, 2018. The proposed acquisition remains subject to customary closing conditions, including the expiration of the waiting period under the federal Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approvals of state departments of insurance and U.S. and international regulators. If the transaction is not completed, the Company could be liable to Aetna for a termination fee of $2.1 billion in connection with the merger agreement, depending on the reasons leading to such termination. On February 1, 2018, CVS Health and Aetna each received a request for additional information (also known as a “second request”) from the U.S. Department of Justice (the “DOJ”) in connection with the DOJ’s review of the transactions contemplated by the definitive merger agreement.

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2018
Goodwill.
Goodwill	Note 3 – Goodwill Goodwill is not amortized, but is subject to annual impairment reviews, or more frequent reviews if events or circumstances indicate there may be impairment. Goodwill is evaluated for possible impairment by comparing the fair value of a reporting unit to its carrying value, including the goodwill assigned to that reporting unit. During the third quarter of 2017, the Company performed its required annual impairment tests of goodwill. The results of the impairment tests indicated that there was no impairment of goodwill. The fair value of the LTC reporting unit exceeded its carrying value by a narrow margin of approximately 1%. During 2018, the LTC reporting unit has continued to experience challenges that have impacted management’s ability to grow the business at the rate that was originally estimated when the Company made the acquisition of Omnicare, Inc. and when the prior year annual goodwill impairment test was performed. These challenges include lower client retention rates, lower occupancy rates in skilled nursing facilities, the deteriorating financial health of numerous skilled nursing facility customers, and continued facility reimbursement pressures. In June 2018, LTC management submitted their initial budget for 2019 and updated their 2018 annual forecast which showed a deterioration in the financial results for the remainder of 2018 and in 2019, which also caused management to update their long term forecast beyond 2019. Based on these updated projections, management determined that there were indicators that the LTC reporting unit’s goodwill may be impaired and, accordingly, an interim goodwill impairment test was performed as of June 30, 2018. The results of the impairment test showed that the fair value of the LTC reporting unit was lower than the carrying value, resulting in a $3.9 billion pre-tax goodwill impairment charge. The fair value of the LTC reporting unit was determined using a combination of a discounted cash flow method and a market multiple method. In addition to the lower financial projections, higher risk-free interest rates and lower market multiples of the peer group companies contributed to the amount of the goodwill impairment charge. As of June 30, 2018, the remaining goodwill balance in the LTC reporting unit after recording the goodwill impairment is approximately $2.7 billion. The Company also performed an impairment test of the intangible assets of the LTC reporting unit and none were impaired as of June 30, 2018. On January 2, 2018, the Company sold RxCrossroads (“RxC”) to McKesson Corporation for $725 million, at which time the remaining goodwill of this reporting unit was removed from the condensed consolidated balance sheet. Below is a summary of the changes in the carrying value of goodwill by segment for the six months ended June 30, 2018: Pharmacy In millions Services Retail/LTC Total Balance, December 31, 2017 $ 21,819 $ 16,632 $ 38,451 Acquisitions 67 35 102 Foreign currency translation adjustments — (14) (14) Divestiture of RxCrossroads subsidiary — (398) (398) Impairment — (3,921) (3,921) Balance, June 30, 2018 $ 21,886 $ 12,334 $ 34,220

Borrowings and Credit Agreement

Borrowings and Credit Agreements	6 Months Ended
	Jun. 30, 2018
Borrowings and Credit Agreements
Borrowings and Credit Agreements	Note 4 – Borrowings and Credit Agreements June 30, December 31, In millions 2018 2017 Short-term debt Commercial paper $ — $ 1,276 Long-term debt 3.25% senior exchange debentures due 2035 — 1 1.9% senior notes due 2018 2,250 2,250 2.25% senior notes due 2018 1,250 1,250 2.25% senior notes due 2019 850 850 2.8% senior notes due 2020 2,750 2,750 3.125% senior notes due 2020 2,000 — Floating rate notes due 2020 1,000 — 2.125% senior notes due 2021 1,750 1,750 4.125% senior notes due 2021 550 550 3.35% senior notes due 2021 3,000 — Floating rate notes due 2021 1,000 — 2.75% senior notes due 2022 1,250 1,250 3.5% senior notes due 2022 1,500 1,500 4.75% senior notes due 2022 399 399 4% senior notes due 2023 1,250 1,250 3.7% senior notes due 2023 6,000 — 3.375% senior notes due 2024 650 650 5% senior notes due 2024 299 299 3.875% senior notes due 2025 2,828 2,828 4.1% senior notes due 2025 5,000 — 2.875% senior notes due 2026 1,750 1,750 6.25% senior notes due 2027 372 372 4.3% senior notes due 2028 9,000 — 4.875% senior notes due 2035 652 652 4.78% senior notes due 2038 5,000 — 6.125% senior notes due 2039 447 447 5.75% senior notes due 2041 133 133 5.3% senior notes due 2043 750 750 5.125% senior notes due 2045 3,500 3,500 5.05% senior notes due 2048 8,000 — Capital lease obligations 667 670 Other 19 43 Total debt principal 65,866 27,170 Debt premiums 26 28 Debt discounts and deferred financing costs (783) (196) 65,109 27,002 Less: Short-term debt (commercial paper) — (1,276) Current portion of long-term debt (3,540) (3,545) Long-term debt $ 61,569 $ 22,181 The Company did not have any commercial paper outstanding as of June 30, 2018. In connection with its commercial paper program, the Company maintains a $1.75 billion 364-day unsecured back-up credit facility, which expires on May 16, 2019, a $1.25 billion, five-year unsecured back-up credit facility, which expires on July 1, 2020, a $1.0 billion, five-year unsecured back-up credit facility, which expires on May 18, 2022, and a $2.0 billion, five-year unsecured back-up credit facility, which expires on May 17, 2023. 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 June 30, 2018 and December 31, 2017, there were no borrowings outstanding under the back-up credit facilities. On March 9, 2018, the Company issued an aggregate of $40.0 billion of floating rate notes and unsecured senior notes, collectively the “Notes”, for total proceeds of approximately $39.4 billion, net of discounts and underwriting fees, comprised of the following: In millions 3.125% senior notes due 2020 $ 2,000 Floating rate notes due 2020 1,000 3.35% senior notes due 2021 3,000 Floating rate notes due 2021 1,000 3.7% senior notes due 2023 6,000 4.1% senior notes due 2025 5,000 4.3% senior notes due 2028 9,000 4.78% senior notes due 2038 5,000 5.05% senior notes due 2048 8,000 Total debt principal $ 40,000 The Notes pay interest semi-annually and contain redemption terms which allow or require the Company to redeem the Notes at a defined redemption price plus accrued and unpaid interest at the redemption date. The net proceeds of the Notes will be used to fund the proposed acquisition of Aetna. If the Aetna acquisition has not been completed by September 3, 2019 (the “Outside Date”) or if, prior to such date, the merger agreement is terminated or the Company otherwise publicly announces that the merger will not be consummated, then the Company will be required to redeem all outstanding 2020 Floating Rate Notes, 2021 Floating Rate Notes, 2020 Notes, 2021 Notes, 2023 Notes, 2025 Notes, 2028 Notes and 2038 Notes at a redemption price equal to 101% of the aggregate principal amount of those notes plus accrued and unpaid interest. The 2048 Notes are not subject to this mandatory redemption provision. On December 3, 2017, in connection with the proposed acquisition of Aetna, the Company entered into a $49.0 billion unsecured bridge loan facility. The Company paid approximately $221 million in fees upon entering into the agreement. The fees were capitalized in other current assets and are being amortized as interest expense over the period the bridge facility is outstanding. The bridge loan facility was reduced to $44.0 billion on December 15, 2017 upon the Company entering into a $5.0 billion term loan agreement. As discussed above, on March 9, 2018, the Company issued unsecured senior notes with an aggregate principal of $40.0 billion. At this time, the bridge loan facility was reduced to $4.0 billion and the Company paid approximately $8 million in fees to retain the bridge loan facility through the date of the proposed Aetna acquisition. These fees were capitalized in other current assets and will be amortized as interest expense over the period the bridge facility is outstanding. The Company recorded $8 million and $169 million of amortization of the bridge loan facility fees during the three and six months ended June 30, 2018, respectively, which was recorded in “Interest expense, net” on the condensed consolidated statements of operations.

Share Repurchase Programs

Share Repurchase Programs	6 Months Ended
	Jun. 30, 2018
Share Repurchase Programs
Share Repurchase Programs	Note 5 – Share Repurchase Programs The following share repurchase programs have been authorized by the Company’s Board of Directors: In billions Remaining as of Authorization Date Authorized June 30, 2018 November 2, 2016 (“2016 Repurchase Program”) $ 15.0 $ 13.9 December 15, 2014 (“2014 Repurchase Program”) 10.0 — The share Repurchase Programs, each of which was effective immediately, permit the Company to effect repurchases from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase (“ASR”) transactions, and/or other derivative transactions. The 2014 Repurchase Program was completed during the second quarter of 2017. The 2016 Repurchase Program can be modified or terminated by the Board of Directors at any time. During the six months ended June 30, 2018, the Company did not repurchase any shares of common stock pursuant to the 2016 Repurchase Program. Pursuant to the authorization under the 2014 Repurchase Program, effective August 29, 2016, the Company entered into two fixed dollar ASRs with Barclays Bank PLC (“Barclays”) for a total of $3.6 billion. Upon payment of the $3.6 billion purchase price on January 6, 2017, the Company received a number of shares of its common stock equal to 80% of the $3.6 billion notional amount of the ASRs or approximately 36.1 million shares, which were placed into treasury stock in January 2017. The ASRs were accounted for as an initial treasury stock transaction for $2.9 billion and a forward contract for $0.7 billion. In April 2017, the Company received 9.9 million shares of common stock, representing the remaining 20% of the $3.6 billion notional amount of the ASRs, thereby concluding the ASRs. The remaining 9.9 million shares of common stock delivered to the Company by Barclays were placed into treasury stock and the forward contract was reclassified from capital surplus to treasury stock in April 2017. At the time they were received, the initial and final receipt of shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted earnings per share.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	Note 6 – Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of foreign currency translation adjustments, cash flow hedges associated with the forecasted issuance of long-term debt, and changes in the net actuarial gains and losses associated with pension and other postretirement benefit plans. The following table summarizes the activity within the components of accumulated other comprehensive income. Changes in accumulated other comprehensive income (loss) by component is shown on the following tables: Three Months Ended June 30, 2018 (1) Pension and Other Foreign Cash Flow Postretirement In millions Currency Hedges Benefits Total Balance, March 31, 2018 $ (128) $ 325 $ (25) $ 172 Other comprehensive loss: Other comprehensive loss before reclassifications (27) — — (27) Amounts reclassified from accumulated other comprehensive income (2) — (4) — (4) Other comprehensive loss (27) (4) — (31) Balance, June 30, 2018 $ (155) $ 321 $ (25) $ 141 Three Months Ended June 30, 2017 (1) Pension and Other Foreign Cash Flow Postretirement Currency Hedges Benefits Total Balance, March 31, 2017 $ (119) $ (4) $ (173) $ (296) Other comprehensive loss: Other comprehensive loss before reclassifications (10) — — (10) Amounts reclassified from accumulated other comprehensive income (loss) (2) — — — — Other comprehensive loss (10) — — (10) Balance, June 30, 2017 $ (129) $ (4) $ (173) $ (306) Six Months Ended June 30, 2018 (1) Pension and Other Foreign Cash Flow Postretirement Currency Hedges Benefits Total Balance, December 31, 2017 $ (129) $ (15) $ (21) $ (165) Reclassifications to retained earnings in accordance with ASU 2018-02 (3) — (3) (4) (7) (129) (18) (25) (172) Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications (26) 344 — 318 Amounts reclassified from accumulated other comprehensive income (loss) (2) — (5) — (5) Other comprehensive income (loss) (26) 339 — 313 Balance, June 30, 2018 $ (155) $ 321 $ (25) $ 141 Six Months Ended June 30, 2017 (1) Pension and Other Foreign Cash Flow Postretirement Currency Hedges Benefits Total Balance, December 31, 2016 $ (127) $ (5) $ (173) $ (305) Other comprehensive income (loss): Other comprehensive loss before reclassifications (2) — — (2) Amounts reclassified from accumulated other comprehensive income (loss) (2) — 1 — 1 Other comprehensive income (loss) (2) 1 — (1) Balance, June 30, 2017 $ (129) $ (4) $ (173) $ (306) (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 condensed consolidated statements of operations. The amounts reclassified from accumulated other comprehensive income for pension and other postretirement benefits are included in other expense on the condensed consolidated statements of operations. (3) See “Note 1 – Accounting Policies” to the condensed consolidated financial statements for additional information on the adoption of ASU 2018-02 during the first quarter of 2018. Beginning in December 2017 and during the first quarter of 2018, the Company entered into several interest rate swap and treasury lock transactions to manage interest rate risk. These agreements were designated as cash flow hedges and were used to hedge the exposure to variability in future cash flows resulting from changes in interest rates related to the anticipated issuance of long-term debt in connection with the proposed acquisition of Aetna. On March 9, 2018, the Company issued unsecured senior notes with an aggregate principal of $40.0 billion as discussed in “Note 4 – Borrowings and Credit Agreements” to the condensed consolidated financial statements. In connection with the issuance of the Notes, the Company terminated all outstanding cash flow hedges. In connection with the hedge transactions, the Company received a net amount of $446 million from the hedge counterparties upon termination, which was recorded as a deferred gain, net of tax, of $331 million in accumulated other comprehensive income (loss) and will be reclassified as a reduction of interest expense over the life of the underlying debt. The Company expects to reclassify approximately $18 million in gains associated with these cash flow hedges into earnings within the next 12 months.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Stock-Based Compensation	Note 7 – Stock-Based Compensation A summary of stock-based compensation for each of the respective periods is as follows: Three Months Ended Six Months Ended June 30, June 30, In millions 2018 2017 2018 2017 Stock-based compensation: Stock options $ 11 $ 14 $ 25 $ 34 Restricted stock units and performance share units 43 39 85 74 Total stock-based compensation $ 54 $ 53 $ 110 $ 108

Interest Expense, Net

Interest Expense, Net	6 Months Ended
	Jun. 30, 2018
Interest Expense, Net
Interest Expense, Net	Note 8 – Interest Expense, Net The following are the components of interest expense, net: Three Months Ended Six Months Ended June 30, June 30, In millions 2018 2017 2018 2017 Interest expense $ 689 $ 251 $ 1,212 $ 509 Interest income (214) (4) (264) (10) Interest expense, net $ 475 $ 247 $ 948 $ 499

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2018
Earnings (Loss) Per Share
Earnings (Loss) Per Share	Note 9 – Earnings (Loss) Per Share Earnings (loss) per share is computed using the two-class method. For periods in which the Company reports net income, diluted earnings per share is determined by using the weighted average number of common and dilutive common equivalent shares outstanding during the period, unless the effect is antidilutive. Due to the loss from continuing operations attributable to CVS Health in the three and six months ended June 30, 2018, 1.9 million and 2.3 million, respectively, of potentially dilutive common equivalent shares were excluded from the calculation of diluted earnings per share, as the impact of these shares was antidilutive. In addition, options to purchase 15.3 million and 14.3 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share, for the three and six months ended June 30, 2018, respectively, because the exercise prices of the options were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. For the same reason, options to purchase 11.0 million and 9.4 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share, for the three and six months ended June 30, 2017, respectively. The following is a reconciliation of basic and diluted earnings (loss) per share from continuing operations for the respective periods: Three Months Ended Six Months Ended June 30, June 30, In millions, except per share amounts 2018 2017 2018 2017 Numerator for earnings (loss) per share calculation: Income (loss) from continuing operations $ $ 1,097 $ $ Income from continuing operations allocated to participating securities (1) (3) (3) (8) Income from continuing operations attributable to noncontrolling interests — — — (1) Income (loss) from continuing operations attributable to CVS Health $ $ 1,094 $ $ 2,050 Denominator for earnings (loss) per share calculation: Weighted average shares, basic 1,018 1,019 1,017 Effect of dilutive securities — 5 — 5 Weighted average shares, diluted 1,018 1,024 1,017 1,029 Earnings (loss) per share from continuing operations: Basic $ (2.52) $ 1.07 $ (1.54) $ 2.00 Diluted $ (2.52) $ 1.07 $ (1.54) $ 1.99

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2018
Segment Reporting
Segment Reporting	Note 10 – Segment Reporting The Company has two operating segments, Pharmacy Services and Retail/LTC, as well as a Corporate segment . In conjunction with the Company’s implementation of a new enterprise resource planning system in the first quarter of 2018, the Company changed the manner in which certain shared functional costs are allocated to its reportable segments. Segment financial information for the three and six months ended June 30, 2017, has been retrospectively adjusted to reflect this change to the cost allocation methodology as shown below: Three Months Ended June 30, 2017 Pharmacy Intersegment Consolidated In millions Services Retail/LTC Corporate Eliminations Totals Cost of revenues, as previously reported $ 30,856 $ 13,879 $ (5,985) $ 38,750 Adjustments 12 (3) — 9 Cost of revenues, as adjusted $ 30,868 $ 13,876 $ (5,985) $ 38,759 Gross profit, as previously reported $ 1,469 $ 5,675 $ (209) $ 6,935 Adjustments (12) 3 — (9) Gross profit, as adjusted $ 1,457 $ 5,678 $ (209) $ 6,926 Operating expenses, as previously reported $ 334 $ 4,264 $ 240 $ (20) $ 4,818 Adjustments 11 (14) (6) — (9) Operating expenses, as adjusted $ 345 $ 4,250 $ 234 $ (20) $ 4,809 Operating profit (loss), as previously reported $ 1,135 $ 1,411 $ (240) $ (189) $ 2,117 Adjustments (23) 17 6 — — Operating profit (loss), as adjusted $ 1,112 $ 1,428 $ (234) $ (189) $ 2,117 Six Months Ended June 30, 2017 Pharmacy Intersegment Consolidated In millions Services Retail/LTC Corporate Eliminations Totals Cost of revenues, as previously reported $ 60,983 $ 27,544 $ (11,843) $ 76,684 Adjustments 26 (8) — 18 Cost of revenues, as adjusted $ 61,009 $ 27,536 $ (11,843) $ 76,702 Gross profit, as previously reported $ 2,565 $ 11,351 $ (401) $ 13,515 Adjustments (26) 8 — (18) Gross profit, as adjusted $ 2,539 $ 11,359 $ (401) $ 13,497 Operating expenses, as previously reported $ 646 $ 8,529 $ 466 $ (36) $ 9,605 Adjustments 24 (31) (11) — (18) Operating expenses, as adjusted $ 670 $ 8,498 $ 455 $ (36) $ 9,587 Operating profit (loss), as previously reported $ 1,919 $ 2,822 $ (466) $ (365) $ 3,910 Adjustments (50) 39 11 — — Operating profit (loss), as adjusted $ 1,869 $ 2,861 $ (455) $ (365) $ 3,910 The following is a reconciliation of the Company’s segments to the accompanying condensed consolidated financial statements: Pharmacy Intersegment Consolidated In millions Services (1) Retail/LTC Corporate Eliminations (2) Totals Three Months Ended June 30, 2018: Net revenues $ 33,247 $ 20,672 $ — $ (7,211) $ 46,708 Gross profit 1,495 5,912 — (206) 7,201 Operating profit (loss) (3)(4) 1,088 (2,225) (263) (187) (1,587) June 30, 2017: Net revenues 32,325 19,554 — (6,194) 45,685 Gross profit (5) 1,457 5,678 — (209) 6,926 Operating profit (loss) (3)(6) 1,112 1,428 (234) (189) 2,117 Six Months Ended June 30, 2018: Net revenues $ 65,465 $ 41,104 $ — $ (14,168) $ 92,401 Gross profit 2,633 11,828 — (401) 14,060 Operating profit (loss) (3)(4)(6) 1,849 (601) (527) (362) 359 June 30, 2017: Net revenues 63,548 38,895 — (12,244) 90,199 Gross profit (5) 2,539 11,359 — (401) 13,497 Operating profit (loss) (3)(6) 1,869 2,861 (455) (365) 3,910 (1) Net revenues of the Pharmacy Services Segment include approximately $2.8 billion and $2.7 billion of retail co‑payments for the three months ended June 30, 2018 and 2017, respectively, as well as $6.1 billion and $5.8 billion of retail co‑payments for the six months ended June 30, 2018 and 2017, respectively. (2) Intersegment eliminations relate to intersegment revenue generating activities that occur between the Pharmacy Services Segment and the Retail/LTC Segment. These occur in the following ways: when members of Pharmacy Services Segment clients (“members”) fill prescriptions at the Company’s retail pharmacies to purchase covered products, when members enrolled in programs such as Maintenance Choice ® elect to pick up maintenance prescriptions at one of the Company’s retail pharmacies instead of receiving them through the mail, or when members have prescriptions filled at the Company’s long-term care pharmacies. When these occur, both the Pharmacy Services and Retail/LTC segments record the revenues, gross profit and operating profit on a stand-alone basis. (3) The Retail/LTC Segment operating profit (loss) for the three and six months ended June 30, 2018 and 2017 include goodwill impairment charges of $3.9 billion related to the LTC reporting unit and $135 million related to the RxCrossroads reporting unit, respectively. See “Note 3 – Goodwill” to the condensed consolidated financial statements. The Retail/LTC Segment operating loss for the six months ended June 30, 2018 also includes an $86 million loss on the divestiture of the RxCrossroads subsidiary. The Retail/LTC Segment operating profit for the three and six months ended June 30, 2017 also includes $6 million and $205 million, respectively, of charges associated with store closures. (4) The Corporate Segment operating loss for the three and six months ended June 30, 2018 include $39 million and $79 million, respectively, in acquisition-related transaction and integration costs related to the proposed Aetna acquisition. (5) The Retail/LTC Segment gross profit for the three and six months ended June 30, 2017 each include $5 million of acquisition-related integration costs related to the acquisition of Omnicare. (6) The Retail/LTC Segment operating profit (loss) for the six months ended June 30, 2018 and 2017 include $3 million and $25 million, respectively, of acquisition-related integration costs. The Retail/LTC Segment operating profit for the three months ended June 30, 2017 includes $10 million of acquisition-related integration costs. The integration costs are related to the acquisition of Omnicare.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies.
Commitments and Contingencies	Note 11 – Commitments and Contingencies Lease Guarantees Between 1995 and 1997, the Company sold or spun off a number of subsidiaries, including Bob’s Stores, Linens ‘n Things, and Marshalls. 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 and accounted for as discontinued operations, 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 June 30, 2018, the Company guaranteed approximately 85 such store leases (excluding the lease guarantees related to Linens ‘n Things, which have been recorded as a liability on the condensed consolidated balance sheet), with the maximum remaining lease term extending through 2029. 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. 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. · Indiana State District Council of Laborers and HOD Carriers Pension and Welfare Fund v. Omnicare, Inc., et al. (U.S. District Court for the Eastern District of Kentucky). In February 2006, two substantially similar putative class action lawsuits were filed and subsequently consolidated. The consolidated complaint was filed against Omnicare, three of its officers and two of its directors and purported to be brought on behalf of all open-market purchasers of Omnicare common stock from August 3, 2005 through July 27, 2006, as well as all purchasers who bought shares of Omnicare common stock in Omnicare’s public offering in December 2005. The complaint alleged violations of the Securities Exchange Act of 1934 and Section 11 of the Securities Act of 1933 and sought, among other things, compensatory damages and injunctive relief. After dismissals and appeals to the United States Court of Appeals for the Sixth Circuit, the United States Supreme Court remanded the case to the district court. In October 2016, Omnicare filed an answer to plaintiffs’ third amended complaint, and discovery commenced. In August 2017, the plaintiffs moved for class certification, which Omnicare has opposed. · United States ex rel. Jack Chin v. Walgreen Company, et al. (U.S. District Court for the Central District of California). In March 2010, the Company received a subpoena from the U.S. Department of Health and Human Services, Office of the Inspector General 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. In October 2016, the U.S. District Court for the Central District of California unsealed a qui tam complaint, filed in April 2009 against CVS Pharmacy and other retail pharmacies, alleging that the Company violated the federal False Claims Act, and the False Claims Acts of several states, by offering such programs. The complaint was served on the Company in January 2017. In December 2017, the same court unsealed a second qui tam complaint filed by the same relator in September 2017. The complaint is based on the same factual allegations but asserts a legal theory the Court did not permit him to add to the original case. The federal government has declined intervention in both cases. In April 2018, the Court dismissed the second lawsuit. In May 2018, the Court allowed the relator’s motion to amend the complaint to add additional related legal theories. The Company is defending the matter. · State of Texas ex rel. Myron Winkelman and Stephani Martinson, et al. v. CVS Health Corporation (Travis County Texas District Court). In February 2012, the Attorney General of the State of Texas issued Civil Investigative Demands and has issued a series of subsequent requests for documents and information in connection with its investigation concerning the CVS Health Savings Pass program and other pricing practices with respect to claims for reimbursement from the Texas Medicaid program. In January 2017, the Court unsealed a first amended petition. The amended petition alleges the Company violated the Texas Medicaid Fraud Prevention Act by submitting false claims for reimbursement to Texas Medicaid by, among other things, failing to use the price available to members of the CVS Health Savings Pass program as the usual and customary price. The amended petition was unsealed following the Company’s filing of CVS Pharmacy, Inc. v. Charles Smith, et al. (Travis County District Court), a declaratory judgment action against the State of Texas in December 2016 seeking a declaration that the prices charged to members of the CVS Health Savings Pass program do not constitute usual and customary prices under the Medicaid regulation. In March 2018, the Court denied the State of Texas’s request for temporary injunctive relief. · Corcoran et al. v. CVS Health Corporation (U.S. District Court for the Northern District of California) and Podgorny et al. v. CVS Health Corporation (U.S. District Court for the Northern District of Illinois). These putative class actions were filed against the Company in July and September 2015. The cases were consolidated in United States District Court in the Northern District of California. Plaintiffs seek damages and injunctive relief on behalf of a class of consumers who purchased certain prescription drugs under the consumer protection statutes and common laws of certain states. Several third-party payors filed similar putative class actions on behalf of payors captioned Sheet Metal Workers Local No. 20 Welfare and Benefit Fund v. CVS Health Corp. and Plumbers Welfare Fund, Local 130 v. CVS Health Corporation (both pending in the U.S. District Court for the District of Rhode Island) in February and August 2016. In all of these cases the plaintiffs allege the Company overcharged for certain prescription drugs by not submitting the price available to members of the CVS Health Savings Pass program as the pharmacy’s usual and customary price. In the consumer case (Corcoran), the Court granted summary judgment to CVS on plaintiffs’ claims in their entirety and certified certain subclasses in September 2017. The plaintiffs have filed a notice of appeal to the Ninth Circuit. The Company continues to defend these actions. · Omnicare DEA Subpoena. In September 2015, Omnicare was served with an administrative subpoena by the U.S. Drug Enforcement Administration (“DEA”). The subpoena seeks documents related to controlled substance policies, procedures, and practices at eight pharmacy locations from May 2012 to the present. In September 2017, the DEA expanded the investigation to include an additional pharmacy. The Company has been cooperating and providing documents and witnesses in response to this administrative subpoena. · Omnicare Cycle Fill Civil Investigative Demand. In October 2015, Omnicare received a Civil Investigative Demand from the United States Attorney’s Office for the Southern District of New York requesting information and documents concerning Omnicare’s cycle fill process for assisted living facilities. The Company has been cooperating with the government and providing documents and information in response to the Civil Investigative Demand. In July 2017, Omnicare also received a subpoena from the California Department of Insurance requesting documents on similar subject matter. · United States ex rel. Sally Schimelpfenig and John Segura v. Dr. Reddy's Laboratories Limited and Dr. Reddy's Laboratories, Inc. (U.S. District Court for the Eastern District of Pennsylvania). In November 2015, the Court unsealed a second amended qui tam complaint filed in September 2015. The U.S. Department of Justice (“DOJ”) declined to intervene in this action. The relators allege that the Company, Walgreens, Wal-Mart, and Dr. Reddy’s Laboratories violated the federal and various state False Claims Acts by dispensing prescriptions in unit dose packaging supplied by Dr. Reddy’s that was not compliant with the Consumer Product Safety Improvement Act and the Poison Preventive Packaging Act and thereby allegedly rendering the drugs misbranded under the Food, Drug and Cosmetic Act. In March 2017, the Court granted the Company’s motion to dismiss with leave to file an amended complaint. In March 2018, the Court granted the Company’s motion to dismiss an amended complaint with prejudice. In June 2018, the plaintiffs filed a notice of appeal. · State of California ex rel. Matthew Omlansky v. CVS Caremark Corporation (Superior Court of the State of California, County of Sacramento). In April 2016, the court unsealed a first amended qui tam complaint filed in July 2013. The government has declined intervention in this case. The relator alleges that the Company submitted false claims for payment to California Medicaid in connection with reimbursement for drugs available through the CVS Health Savings Pass program as well as certain other generic drugs. The case has been stayed pending the relator’s appeal of the judgment against him in a similar case against another retailer. · Retail DEA Matters. The Company has been also undergoing several audits by the DEA Administrator and is in discussions with the DEA and the U.S. Attorney’s Offices in several locations concerning allegations that the Company has violated certain requirements of the Controlled Substance Act. · National Opioid Litigation . In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous cases filed against various defendants by plaintiffs such as counties, cities, hospitals, Indian tribes, and third-party payors, alleging claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation captioned In re National Prescription Opiate Litigation (MDL No. 2804) is pending in the U.S. District Court for the Northern District of Ohio. This multidistrict litigation presumptively includes more than 200 relevant federal court cases that name the Company. Approximately 25 similar cases that name the Company in some capacity are pending in state courts. Such cases include a case that was re-filed in Oklahoma Circuit Court by the Cherokee Nation after it was dismissed voluntarily by the Cherokee Nation in the District Court of Cherokee Nation. The Company is defending all such federal and state matters. Additionally, the Company has received from the Attorney Generals of several states subpoenas, civil investigative demands, and/or other requests concerning opioids. · State of Mississippi v. CVS Health Corporation, et al. (Chancery Court of DeSoto County, Mississippi, Third Judicial District). In July 2016, the Company was served with a complaint filed on behalf of the State of Mississippi alleging that CVS retail pharmacies in Mississippi submitted false claims for reimbursement to Mississippi Medicaid by not submitting the price available to members of the CVS Health Savings Pass program as the pharmacy’s usual and customary price. The Company has responded to the complaint, filed a counterclaim, and moved to transfer the case to circuit court. The motion to transfer was granted, which the State has appealed, and the motion to dismiss remains pending. · Part B Insulin Products Civil Investigative Demand. In December 2016, the Company received a Civil Investigative Demand from the U.S. Attorney’s Office for the Northern District of New York, requesting documents and information in connection with a False Claims Act investigation concerning whether the Company’s retail pharmacies improperly submitted certain insulin claims to Medicare Part D rather than Part B. The Company has cooperated with the government and provided documents and information in response to the Civil Investigative Demand. · Cold Chain Logistics Civil Investigative Demand . In September 2016, the Company received from the DOJ a Civil Investigative Demand in connection with an investigation as to whether the Company’s handling of certain temperature-sensitive pharmaceuticals violates the federal Food, Drug and Cosmetic Act and the False Claims Act. The Company has been cooperating with the government and providing documents and information in response to the Civil Investigative Demand. · Insulin Products Investigation. In April 2017, the Company received a Civil Investigative Demand from the Attorney General of Washington, seeking documents and information regarding pricing and rebates for insulin products in connection with a pending investigation into unfair and deceptive acts or practice regarding insulin pricing. We have been notified by the Office of the Attorney General of Washington that information provided in response to the Civil Investigative Demand will be shared with the Attorneys General of California, Florida, Minnesota, New Mexico, the District of Columbia, and Mississippi. In July 2017, the Company received a Civil Investigative Demand from the Attorney General of Minnesota, seeking documents and information regarding pricing and rebates for insulin and epinephrine products in connection with a pending investigation into unfair and deceptive acts or practices regarding insulin and epinephrine pricing. · Bewley, et al. v. CVS Health Corporation , et al. and Prescott , et al. v. CVS Health Corporation , et al. (both pending in the U.S. District Court for the Western District of Washington). These putative class actions were filed in May 2017 against the Company and other pharmacy benefit managers and manufacturers of glucagon kits ( Bewley ) and diabetes test strips ( Prescott ). Both cases allege that, by contracting for rebates with the manufacturers of these diabetes products, the Company and other PBMs caused list prices for these products to increase, thereby harming certain consumers. The primary claims are made under federal antitrust laws, the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”), state unfair competition and consumer protection laws, and the federal Employee Retirement Income Security Act (“ERISA”). These cases have both been transferred to the United States District Court for the District of New Jersey on defendants’ motions. The Company is defending these lawsuits. · Klein , et al. v. Prime Therapeutics , et al. (U.S. District Court for the District of Minnesota). In June 2017, a putative class action complaint was filed against the Company and other pharmacy benefit managers on behalf of ERISA plan members who purchased and paid for EpiPen or EpiPen Jr. Plaintiffs allege that the pharmacy benefit managers are ERISA fiduciaries to plan members and have violated ERISA by allegedly causing higher inflated prices for EpiPen through the process of negotiating increased rebates from EpiPen manufacturer, Mylan. This case was recently consolidated with a similar matter and is now proceeding as In re EpiPen ERISA Litigation . The Company is defending the lawsuit. · Medicare Part D Civil Investigative Demand . In May 2017, the United States Attorney’s Office for the Southern District of New York issued a Civil Investigative Demand to the Company concerning possible false claims submitted to Medicare in connection with reimbursements for prescription drugs under the Medicare Part D program. The Company has been cooperating with the government and providing documents and information in response to the Civil Investigative Demand. · Shareholder Matters. In August and September 2017, four complaints were filed by putative derivative plaintiffs against certain officers and directors of the Company. Three of those actions, Sherman v. Merlo, et al., Feghali v. Merlo, et al., and Banchalter v. Merlo, et al., were filed in the U.S. District Court for the District of Rhode Island. A fourth, Boron v. Bracken, et al., was filed in Rhode Island Superior Court. These matters assert a variety of causes of action, including breach of fiduciary duty, waste of corporate assets, unjust enrichment, civil conspiracy and violation of Section 14(a) of the Exchange Act, and are premised on the allegation that the defendants approved business plans that exposed the Company to various litigations and investigations. The three federal matters have been stayed pending resolution of certain of the underlying matters, and the Company has filed a motion to dismiss the state court action. · MSP Recovery Claims Series, LLC , et al. v. CVS Health Corporation , et al. (U.S. District Court for the Western District of Texas). In September 2017, a putative class action complaint was filed against the Company, Express Scripts, Inc., and the manufacturers of insulin on behalf of assignees of claims of Medicare Advantage Organizations. Plaintiffs assert that the PBMs and manufacturers have engaged in a conspiracy whereby the PBMs sell access to their formularies by demanding the highest rebates, which in turn causes increased list prices for insulin. The plaintiffs initially asserted claims against the Company on behalf of two putative classes: (1) all Medicare C payors and (2) all Medicare D payors. The complaint asserts claims under RICO, and for common law fraud and unjust enrichment. This case was transferred to the U.S. District Court for the District of New Jersey, and the plaintiff filed an amended complaint against only the drug manufacturers, and not against the PBMs. The Company is also a party to other legal proceedings, government investigations, inquiries and audits, and has received and is cooperating with subpoenas or similar process from various governmental agencies requesting information, all 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, specialty pharmacy, retail pharmacy, long-term care 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, specialty pharmacy, retail pharmacy, long-term care pharmacy or retail clinic industry or of the health care industry generally; (iv) pending or future 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 pending or future legal proceedings against the Company or affecting the pharmacy services, specialty pharmacy, retail pharmacy, long-term care pharmacy or retail clinic industry or the health care industry generally.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. All material intercompany balances and transactions have been eliminated. The Company continually evaluates its investments to determine if they represent variable interests in a VIE. If the Company determines that it has a variable interest in a VIE, the Company then evaluates if it is the primary beneficiary of the VIE. The evaluation is a qualitative assessment as to whether the Company has the ability to direct the activities of a VIE that most significantly impact the entity’s economic performance. The Company consolidates a VIE if it is considered to be the primary beneficiary. Assets and liabilities of VIEs for which the Company is the primary beneficiary were not significant to the Company’s condensed consolidated financial statements. VIE creditors do not have recourse against the general credit of the Company.
Fair Value of Financial Instruments	Fair Value of Financial Instruments 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. As of June 30, 2018, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, and the contingent consideration liability included in accrued expenses approximated their fair value due to the nature of these financial instruments. The Company invests in money market funds, commercial paper, time deposits and debt securities that are classified as cash and cash equivalents within the accompanying condensed 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. The Company’s short-term investments of $96 million at June 30, 2018 consist of certificates of deposit with initial maturities of greater than three months when purchased that mature within one year from the balance sheet date. These investments, which are classified within Level 1 of the fair value hierarchy, are carried at fair value, which approximated historical cost at June 30, 2018. The carrying amount and estimated fair value of the Company’s total long-term debt was $65.1 billion and $64.7 billion, respectively, as of June 30, 2018. The fair value of the Company’s long-term debt was estimated based on quoted prices currently offered in active markets for the Company’s debt, which is considered Level 1 of the fair value hierarchy.
Accounts Receivable, Net	Accounts Receivable, Net Included within accounts receivable, net are the following, which are reflected net of allowance for doubtful accounts, customer credit allowances, and contractual allowances: June 30, December 31, In millions 2018 2017 Trade receivables $ 6,611 $ 7,873 Vendor and manufacturer receivables 7,038 5,109 Other receivables 509 199 Total accounts receivable, net $ 14,158 $ 13,181
Related Party Transactions	Related Party Transactions The Company has an equity method investment in SureScripts, LLC (“SureScripts”), which operates a clinical health information network. The PSS and RLS utilize this clinical health information network in providing services to its client plan members and retail customers. The Company expensed fees for the use of this network of approximately $8 million in both the three months ended June 30, 2018 and 2017, and expensed fees for the use of this network of approximately $30 million and $25 million in the six months ended June 30, 2018 and 2017, respectively. The Company’s investment in and equity in earnings of SureScripts for all periods presented is immaterial. The Company has an equity method investment in Heartland Healthcare Services (“Heartland”). Heartland operates several long-term care pharmacies in four states. Heartland paid the Company approximately $36 million and $30 million for pharmaceutical inventory purchases during the three months ended June 30, 2018 and 2017, respectively, and $71 million and $70 million for pharmaceutical inventory purchases during the six months ended June 30, 2018 and 2017, respectively. Additionally, the Company performs certain collection functions for Heartland and then passes those customer cash collections back to Heartland. The Company’s investment in and equity in earnings of Heartland for all periods presented is immaterial.
Discontinued Operations	Discontinued Operations 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 Bob’s Stores and Linens ‘n Things, both of which subsequently filed for bankruptcy. See “Note 11 – Commitments and Contingencies” to the condensed consolidated financial statements. The Company’s discontinued operations include lease-related costs which the Company believes it will likely be required to satisfy pursuant to its lease guarantees.
New Accounting Pronouncements	Adoption of New Revenue Recognition Standard In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In March 2016, the FASB issued ASU 2016-08, “Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net),” which amends the principal-versus-agent implementation guidance and in April 2016 the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends the guidance in those areas in the new revenue recognition standard. The Company adopted the new revenue recognition standard as of January 1, 2018 using the modified retrospective method and applying the new standard to all contracts. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. One difference was identified between the previous accounting guidance and the new accounting guidance in the RLS related to the accounting for the Company’s ExtraBucks ® Rewards customer loyalty program, which was previously accounted for under a cost deferral method. Under the new standard, this program is accounted for under a revenue deferral method. The Company recognized the cumulative effect of initially applying the new revenue recognition standard as an adjustment to beginning retained earnings. On January 1, 2018, the Company recorded an after-tax transition adjustment to reduce retained earnings by approximately $13 million ($17 million prior to tax effect). The Company expects the impact of the adoption of the new standard to be immaterial to its net revenue and net income on an ongoing basis. The following is a discussion of the Company’s revenue recognition policies by segment under the new revenue recognition accounting standard: Pharmacy Services Segment The PSS sells prescription drugs directly through its mail service dispensing pharmacies and indirectly through its retail pharmacy network. The Company’s pharmacy benefit arrangements are accounted for in a manner consistent with a master supply arrangement as there are no contractual minimum volumes and each prescription is considered a separate purchasing decision and distinct performance obligation transferred at a point in time. Pharmacy benefit management services performed in connection with each prescription claim are considered part of a single performance obligation which culminates in the dispensing of prescription drugs. The Company recognizes revenue using the gross method at the contract price negotiated with its clients when the Company has concluded it controls the prescription drug before it is transferred to the client plan members. The Company controls prescriptions dispensed indirectly through its retail pharmacy network because it has separate contractual arrangements with those pharmacies, has discretion in setting the price for the transaction and assumes primary responsibility for fulfilling the promise to provide prescription drugs to its client plan members while also performing the related pharmacy benefit management services. Net revenues include (i) the portion of the price the client pays directly to the PSS, net of any discounts earned on brand drugs or other discounts and refunds paid back to the client (see “Drug Discounts” and “Guarantees” 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) claims based administrative fees for retail pharmacy network contracts. Sales taxes are not included in revenue. The PSS recognizes revenue when control of the prescription drugs is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those prescription drugs. 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 drug is delivered to the client plan member. At the time of delivery, the PSS has performed substantially all of its performance 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’ retail pharmacy network and associated administrative fees are recognized at the PSS’ point-of-sale, which is when the claim is adjudicated by the PSS’ online claims processing system and the Company has transferred control of the prescription drug and performed all of its performance obligations. For contracts under which the PSS acts as an agent or does not control the prescription drugs prior to transfer to the client, revenue is recognized using the net method. Drug discounts – The PSS records revenue net of manufacturers’ rebates, earned by its clients based on their plan members’ utilization of brand-name formulary drugs. The PSS estimates these rebates at period-end based on actual and estimated claims data and its estimates of the manufacturers’ rebates earned by its clients. The estimates are based on the best available data at period-end and recent history for the various factors that can affect the amount of rebates due to the client. The PSS adjusts its rebates payable to clients to the actual amounts paid when these rebates are paid or as significant events occur. Any cumulative effect of these adjustments is recorded against revenues as identified. Adjustments generally result from contract changes with clients or manufacturers that have retroactive rebate adjustments, differences between the estimated and actual product mix subject to rebates, or whether the product was included in the applicable formulary. The effect of adjustments between estimated and actual amounts have not been material to the Company’s results of operations or financial position. Guarantees – The PSS also adjusts revenues for refunds owed to the client resulting from pricing guarantees and performance against defined service and performance metrics. The inputs to these estimates are not subject to a high degree of subjectivity or volatility. The effect of adjustments between estimated and actual amounts have not been material to the Company’s results of operations or financial position. Medicare Part D – The PSS participates in the federal government’s Medicare Part D program as a prescription drug plan (“PDP”) through its SilverScript subsidiary. 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 United States Centers for Medicare and Medicaid Services (“CMS”). The insurance premiums include a beneficiary premium, which is the responsibility of the PDP member, and can be subsidized by CMS in the case of low-income members, and a direct premium paid by CMS. Premiums collected in advance are initially recorded within accrued expenses and other current liabilities and are then recognized ratably as revenue 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 the PSS is paid an estimated prospective Member Co-Payment subsidy, each month. If the prospective Member Co-Payment subsidies received differ from the amounts earned from actual prescriptions transferred, the difference is recorded in either accounts receivable or accrued expenses. The PSS accounts for Member Co-Payments (including the amounts subsidized by CMS) using the gross method consistent with revenue recognition policies for Mail Co-Payments and Retail Co-Payments. The Company estimates variable consideration in the form of amounts payable, or receivable from CMS under a risk-sharing feature of the Medicare Part D program design, referred to as the risk corridor, and adjusts revenue based on calculations of additional subsidies to be received or owed to CMS at the end of the reporting year. The Company also estimates cost of revenues for claims that have been reported and are in the process of being paid or contested and for its estimate of claims that have been incurred but have not yet been reported. Historically, the effect of these adjustments has not been material to the Company’s results of operations or financial position. Retail/LTC Segment Retail Pharmacy - The retail drugstores recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation, separate and distinct from other prescription claims under other retail network arrangements. Revenues are adjusted for refunds owed to the third party payer for pricing guarantees and performance against defined value-based service and performance metrics. The inputs to these estimates are not subject to a high degree of subjectivity or volatility. The effect of adjustments between estimated and actual amounts have not been material to the Company’s results of operations or financial position. Revenue from CVS Health gift cards purchased by customers is deferred as a contract liability until goods or services are transferred. Any amounts not expected to be redeemed by customers (i.e., breakage) are recognized based on historical redemption patterns. Customer returns are not material to the Company’s results of operations or financial position. Loyalty Program - The Company’s customer loyalty program, ExtraCare ® , is comprised of two components, ExtraSavings TM and ExtraBucks ® Rewards. ExtraSavings are coupons that are recorded as a reduction of revenue when redeemed as the Company concluded that they do not represent a promise to the customer to deliver additional goods or services at the time of issuance because they are not tied to a specific transaction or spending level. ExtraBucks Rewards are accumulated by customers based on their historical spending levels. Thus, the Company has determined that there is an additional performance obligation to those customers at the time of the initial transaction. The Company allocates the transaction price to the initial transaction and the ExtraBucks Rewards transaction based upon the relative standalone selling price, which considers historical redemption patterns for the rewards. Revenue allocated to ExtraBucks Rewards is recognized as those rewards are redeemed. At the end of each period, unredeemed rewards are reflected as a contract liability. Long-term Care - Revenue is recognized when control of the promised goods or services are transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Each prescription claim represents a separate performance obligation of the Company, separate and distinct from other prescription claims under customer arrangements. A significant portion of the revenue from sales of pharmaceutical and medical products are reimbursed by the federal Medicare Part D program and, to a lesser extent, state Medicaid programs. The Company monitors its revenues and receivables from these reimbursement sources, as well as other third party insurance payors, and reduces revenue at the revenue recognition date, to properly account for the variable consideration due to anticipated differences between billed and reimbursed amounts. Accordingly, the total net revenues and receivables reported in the Company’s financial statements are recorded at the amount expected to be ultimately received from these payors. Patient co-payments associated with Medicare Part D, certain state Medicaid programs, Medicare Part B and certain third party payors are typically not collected at the time products are delivered or services are rendered, but are billed to the individuals as part of normal billing procedures and subject to normal accounts receivable collections procedures. Health Care Clinics - For services provided by the Company’s health care clinics, revenue recognition occurs for completed services provided to patients, with adjustments taken for third party payor contractual obligations and patient direct bill historical collection rates. Disaggregation of Revenue The following table disaggregates the Company’s revenue by major source in each segment for the three and six months ended June 30, 2018: Pharmacy Intersegment Consolidated In millions Services Retail/LTC Eliminations Totals Three Months Ended June 30, 2018 Major goods/services lines: Pharmacy $ 32,353 $ 15,805 $ (7,211) $ 40,947 Front Store — 4,707 — 4,707 Other 894 160 — 1,054 Total $ 33,247 $ 20,672 $ (7,211) $ 46,708 Pharmacy Services distribution channel: Mail choice (1) $ 11,787 Pharmacy network (2) 20,566 Other 894 Total $ 33,247 Six Months Ended June 30, 2018 Major goods/services lines: Pharmacy $ 63,115 $ 31,305 $ (14,168) $ 80,252 Front Store — 9,433 — 9,433 Other 2,350 366 — 2,716 Total $ 65,465 $ 41,104 $ (14,168) $ 92,401 Pharmacy Services distribution channel: Mail choice (1) $ 22,995 Pharmacy network (2) 40,120 Other 2,350 Total $ 65,465 (1) Pharmacy Services mail choice is defined as claims filled at a Pharmacy Services mail facility, which includes specialty mail claims inclusive of Specialty Connect ® claims picked up at retail, as well as prescriptions filled at our retail pharmacies under the Maintenance Choice ® program. (2) Pharmacy Services pharmacy network is defined as claims filled at retail and specialty retail pharmacies, including our retail pharmacies and long-term care pharmacies, but excluding Maintenance Choice activity, which is included within the mail choice category. Contract Balances Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example ExtraBucks ® Rewards and unredeemed CVS Health gift cards. The consideration received remains a contract liability until goods or services have been provided to the retail customer. In addition, the Company recognizes breakage on CVS Health gift cards based on historical redemption patterns. The following table provides information about receivables and contract liabilities from contracts with customers: June 30, December 31, In millions 2018 2017 Trade receivables (included in accounts receivable, net) $ 6,611 $ 7,873 Contract liabilities (included in accrued expenses) 72 53 During the six months ended June 30, 2018, the contract liabilities balance includes increases related to customers’ earnings in ExtraBucks Rewards or issuances of CVS Health gift cards and decreases for revenues recognized during the period as a result of the redemption of ExtraBucks Rewards or CVS Health gift cards and breakage of CVS Health gift cards. Below is a summary of the changes: In millions Balance, December 31, 2017 $ 53 Adoption of ASU 2014-09 17 Loyalty program earnings and gift card issuances 166 Redemption and breakage (164) Balance, June 30, 2018 $ 72 Impact of New Revenue Recognition Standard on Financial Statement Line Items The Company adopted ASU 2014-09 using the modified retrospective method. The cumulative effect of applying the new guidance to all contracts was recorded as an adjustment to retained earnings as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the condensed consolidated balance sheet as of January 1, 2018: Impact of Change in Accounting Policy As Reported Adjusted In millions December 31, 2017 Adjustments January 1, 2018 Condensed Consolidated Balance Sheet: Accrued expenses $ 6,609 $ 17 $ 6,626 Deferred income taxes 2,996 (4) 2,992 Total liabilities 57,436 13 57,449 Retained earnings 43,556 (13) 43,543 Total CVS Health shareholders' equity 37,691 (13) 37,678 Total shareholders' equity 37,695 (13) 37,682 The following tables compare the reported condensed consolidated balance sheet, statement of operations, and statement of cash flows, as of and for the three and six months ended June 30, 2018, to the pro forma amounts had the previous revenue accounting guidance remained in effect: Impact of Change in Accounting Policy As Reported Balances For the Without Three Months Ended Adoption of In millions June 30, 2018 Adjustments Topic 606 Condensed Consolidated Statement of Operations: Net revenues $ 46,708 $ 3 $ 46,711 Cost of revenues 39,507 2 39,509 Gross profit 7,201 1 7,202 Operating profit (loss) (1,587) 1 (1,586) Income (loss) before income tax provision (2,065) 1 (2,064) Income tax provision 497 — 497 Income (loss) from continuing operations (2,562) 1 (2,561) Net income (loss) (2,563) 1 (2,562) Net income (loss) attributable to CVS Health (2,563) 1 (2,562) Impact of Change in Accounting Policy As Reported Balances As of/For the Without Six Months Ended Adoption of In millions June 30, 2018 Adjustments Topic 606 Condensed Consolidated Statement of Operations: Net revenues $ 92,401 $ 10 $ 92,411 Cost of revenues 78,341 6 78,347 Gross profit 14,060 4 14,064 Operating profit 359 4 363 Income (loss) before income tax provision (595) 4 (591) Income tax provision 969 1 970 Income (loss) from continuing operations (1,564) 3 (1,561) Net income (loss) (1,565) 3 (1,562) Net income (loss) attributable to CVS Health (1,565) 3 (1,562) Condensed Consolidated Balance Sheet: Accrued expenses 7,640 (21) 7,619 Deferred income taxes 3,054 5 3,059 Total liabilities 97,679 (16) 97,663 Retained earnings 40,965 16 40,981 Total CVS Health shareholders' equity 35,607 16 35,623 Total shareholders' equity 35,611 16 35,627 Condensed Consolidated Statement of Cash Flow: Reconciliation of net income (loss) to net cash provided by operating activities: Net income (loss) (1,565) 3 (1,562) Deferred income taxes and other noncash items 252 1 253 Accrued expenses 1,143 (4) 1,139 Other Accounting Pronouncements Recently Adopted In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU requires equity investments, except those under the equity method of accounting or those that result in the consolidation of an investee, to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. This simplifies the impairment assessment of equity investments previously held at cost. Entities are required to apply the guidance retrospectively, with the exception of the amendments related to equity investments without readily determinable fair values, which must be applied on a prospective basis. Effective January 1, 2018, the Company adopted this new accounting guidance. The adoption of this new guidance did not have a material impact on the Company’s financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 is intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. Effective January 1, 2018, the Company adopted this new accounting guidance. The adoption of this new guidance did not have a material impact on the Company’s financial position or results of operations. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which amends Accounting Standard Codification (“ASC”) Topic 230. This ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities are no longer required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. The guidance is required to be applied retrospectively. Effective January 1, 2018, the Company adopted this new accounting guidance. The following represents a reconciliation of cash and cash equivalents in the condensed consolidated balance sheet to total cash, cash equivalents and restricted cash in the condensed consolidated statement of cash flows: June 30, December 31, In millions 2018 2017 Cash and cash equivalents $ 43,815 $ 1,696 Restricted cash (included in other current assets) 14 14 Restricted cash (included in other assets) 228 190 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 44,057 $ 1,900 Restricted cash included in other current assets in the condensed consolidated balance sheets represents amounts held in escrow accounts in connection with certain recent acquisitions. Restricted cash included in other assets in the condensed consolidated balance sheets represents amounts held in a trust in the Company’s insurance captive to satisfy collateral requirements associated with the assignment of certain insurance policies. All restricted cash is invested in time deposits, money markets, and commercial paper, which are classified within Level 1 of the fair value hierarchy. Restricted cash activity was previously reported in “acquisitions (net of cash acquired) and other investments” within investing cash flows on the Company’s condensed consolidated statement of cash flows. The following is a reconciliation of the effect on the relevant line items on the statement of cash flows for the six months ended June 30, 2017 as a result of adopting this new accounting guidance: As Previously In millions Reported Adjustments As Revised Six Months Ended June 30, 2017 Acquisitions (net of cash acquired) and other investments $ (315) $ 40 $ (275) Net cash used in investing activities (1,174) 40 (1,134) Net decrease in cash, cash equivalents and restricted cash (1) (1,277) 40 (1,237) Cash, cash equivalents, and restricted cash at the beginning of the period (1) 3,371 149 3,520 Cash, cash equivalents, and restricted cash at the end of the period (1) 2,094 189 2,283 (1) Prior to the adoption of ASU 2016-18, these financial statement captions excluded restricted cash. The financial statement captions have been renamed to reflect the inclusion of restricted cash subsequent to the adoption of ASU 2016-18 on January 1, 2018. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-02 permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (“TCJA”) to retained earnings. The guidance states that because the adjustment of deferred income taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate was required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (“stranded tax effects”) are not reflected at the appropriate tax rate. During the first quarter of 2018, the Company elected to early adopt this new standard and decreased accumulated other comprehensive income and increased retained earnings in the period of adoption by $7 million due to the change in the U.S. federal corporate income tax rate in December 2017. See “Note 6 – Accumulated Other Comprehensive Income (Loss)” to the condensed consolidated financial statements for the impact of the adoption of this standard on accumulated other comprehensive income for the six months ended June 30, 2018. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Lessees will be required to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, a dual model was retained, requiring leases to be classified as either operating or finance leases. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company believes that the new standard will have a material impact on its consolidated balance sheet. The Company intends to adopt the new standard on a modified retrospective basis. The Company has a cross-functional project team focused on the implementation of the new accounting standard. The project involves among other things the implementation of new leasing systems capable of producing the data to prepare the required accounting and disclosures under the new accounting standard. The Company expects to complete this project during the fourth quarter of 2018. The Company is still evaluating the effect that implementation of this standard will have on the Company’s consolidated results of operations, cash flows, financial position and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The new standard requires the use of a forward-looking expected loss impairment model for trade and other receivables, held-to-maturity debt securities, loans and other instruments. The new standard also requires impairments and recoveries for available-for-sale debt securities to be recorded through an allowance account and revises certain disclosure requirements. The Company is currently evaluating the effect that implementation of this standard will have on the Company’s consolidated results of operations, cash flows, financial position and related disclosures.

Accounting Policies (Tables)

Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of accounts receivable	June 30, December 31, In millions 2018 2017 Trade receivables $ 6,611 $ 7,873 Vendor and manufacturer receivables 7,038 5,109 Other receivables 509 199 Total accounts receivable, net $ 14,158 $ 13,181
Schedule of revenue disaggregation	Pharmacy Intersegment Consolidated In millions Services Retail/LTC Eliminations Totals Three Months Ended June 30, 2018 Major goods/services lines: Pharmacy $ 32,353 $ 15,805 $ (7,211) $ 40,947 Front Store — 4,707 — 4,707 Other 894 160 — 1,054 Total $ 33,247 $ 20,672 $ (7,211) $ 46,708 Pharmacy Services distribution channel: Mail choice (1) $ 11,787 Pharmacy network (2) 20,566 Other 894 Total $ 33,247 Six Months Ended June 30, 2018 Major goods/services lines: Pharmacy $ 63,115 $ 31,305 $ (14,168) $ 80,252 Front Store — 9,433 — 9,433 Other 2,350 366 — 2,716 Total $ 65,465 $ 41,104 $ (14,168) $ 92,401 Pharmacy Services distribution channel: Mail choice (1) $ 22,995 Pharmacy network (2) 40,120 Other 2,350 Total $ 65,465 (1) Pharmacy Services mail choice is defined as claims filled at a Pharmacy Services mail facility, which includes specialty mail claims inclusive of Specialty Connect ® claims picked up at retail, as well as prescriptions filled at our retail pharmacies under the Maintenance Choice ® program. (2) Pharmacy Services pharmacy network is defined as claims filled at retail and specialty retail pharmacies, including our retail pharmacies and long-term care pharmacies, but excluding Maintenance Choice activity, which is included within the mail choice category.
Schedule of contract balances and activity	Contract Balances Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example ExtraBucks ® Rewards and unredeemed CVS Health gift cards. The consideration received remains a contract liability until goods or services have been provided to the retail customer. In addition, the Company recognizes breakage on CVS Health gift cards based on historical redemption patterns. The following table provides information about receivables and contract liabilities from contracts with customers: June 30, December 31, In millions 2018 2017 Trade receivables (included in accounts receivable, net) $ 6,611 $ 7,873 Contract liabilities (included in accrued expenses) 72 53 During the six months ended June 30, 2018, the contract liabilities balance includes increases related to customers’ earnings in ExtraBucks Rewards or issuances of CVS Health gift cards and decreases for revenues recognized during the period as a result of the redemption of ExtraBucks Rewards or CVS Health gift cards and breakage of CVS Health gift cards. Below is a summary of the changes: In millions Balance, December 31, 2017 $ 53 Adoption of ASU 2014-09 17 Loyalty program earnings and gift card issuances 166 Redemption and breakage (164) Balance, June 30, 2018 $ 72
Schedule of new accounting pronouncements and changes in accounting principles	June 30, December 31, In millions 2018 2017 Cash and cash equivalents $ 43,815 $ 1,696 Restricted cash (included in other current assets) 14 14 Restricted cash (included in other assets) 228 190 Total cash, cash equivalents and restricted cash in the statement of cash flows $ 44,057 $ 1,900
Reconciliation of condensed consolidated statement of cash flows	As Previously In millions Reported Adjustments As Revised Six Months Ended June 30, 2017 Acquisitions (net of cash acquired) and other investments $ (315) $ 40 $ (275) Net cash used in investing activities (1,174) 40 (1,134) Net decrease in cash, cash equivalents and restricted cash (1) (1,277) 40 (1,237) Cash, cash equivalents, and restricted cash at the beginning of the period (1) 3,371 149 3,520 Cash, cash equivalents, and restricted cash at the end of the period (1) 2,094 189 2,283 (1) Prior to the adoption of ASU 2016-18, these financial statement captions excluded restricted cash. The financial statement captions have been renamed to reflect the inclusion of restricted cash subsequent to the adoption of ASU 2016-18 on January 1, 2018.
ASU 2014-09
Schedule of new accounting pronouncements and changes in accounting principles	Impact of Change in Accounting Policy As Reported Adjusted In millions December 31, 2017 Adjustments January 1, 2018 Condensed Consolidated Balance Sheet: Accrued expenses $ 6,609 $ 17 $ 6,626 Deferred income taxes 2,996 (4) 2,992 Total liabilities 57,436 13 57,449 Retained earnings 43,556 (13) 43,543 Total CVS Health shareholders' equity 37,691 (13) 37,678 Total shareholders' equity 37,695 (13) 37,682 The following tables compare the reported condensed consolidated balance sheet, statement of operations, and statement of cash flows, as of and for the three and six months ended June 30, 2018, to the pro forma amounts had the previous revenue accounting guidance remained in effect: Impact of Change in Accounting Policy As Reported Balances For the Without Three Months Ended Adoption of In millions June 30, 2018 Adjustments Topic 606 Condensed Consolidated Statement of Operations: Net revenues $ 46,708 $ 3 $ 46,711 Cost of revenues 39,507 2 39,509 Gross profit 7,201 1 7,202 Operating profit (loss) (1,587) 1 (1,586) Income (loss) before income tax provision (2,065) 1 (2,064) Income tax provision 497 — 497 Income (loss) from continuing operations (2,562) 1 (2,561) Net income (loss) (2,563) 1 (2,562) Net income (loss) attributable to CVS Health (2,563) 1 (2,562) Impact of Change in Accounting Policy As Reported Balances As of/For the Without Six Months Ended Adoption of In millions June 30, 2018 Adjustments Topic 606 Condensed Consolidated Statement of Operations: Net revenues $ 92,401 $ 10 $ 92,411 Cost of revenues 78,341 6 78,347 Gross profit 14,060 4 14,064 Operating profit 359 4 363 Income (loss) before income tax provision (595) 4 (591) Income tax provision 969 1 970 Income (loss) from continuing operations (1,564) 3 (1,561) Net income (loss) (1,565) 3 (1,562) Net income (loss) attributable to CVS Health (1,565) 3 (1,562) Condensed Consolidated Balance Sheet: Accrued expenses 7,640 (21) 7,619 Deferred income taxes 3,054 5 3,059 Total liabilities 97,679 (16) 97,663 Retained earnings 40,965 16 40,981 Total CVS Health shareholders' equity 35,607 16 35,623 Total shareholders' equity 35,611 16 35,627 Condensed Consolidated Statement of Cash Flow: Reconciliation of net income (loss) to net cash provided by operating activities: Net income (loss) (1,565) 3 (1,562) Deferred income taxes and other noncash items 252 1 253 Accrued expenses 1,143 (4) 1,139

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill.
Goodwill by Segment	Pharmacy In millions Services Retail/LTC Total Balance, December 31, 2017 $ 21,819 $ 16,632 $ 38,451 Acquisitions 67 35 102 Foreign currency translation adjustments — (14) (14) Divestiture of RxCrossroads subsidiary — (398) (398) Impairment — (3,921) (3,921) Balance, June 30, 2018 $ 21,886 $ 12,334 $ 34,220

Borrowings and Credit Agreeme21

Borrowings and Credit Agreements (Tables)	6 Months Ended
	Jun. 30, 2018
Borrowings and Credit Agreements
Summary of the Company's borrowings	June 30, December 31, In millions 2018 2017 Short-term debt Commercial paper $ — $ 1,276 Long-term debt 3.25% senior exchange debentures due 2035 — 1 1.9% senior notes due 2018 2,250 2,250 2.25% senior notes due 2018 1,250 1,250 2.25% senior notes due 2019 850 850 2.8% senior notes due 2020 2,750 2,750 3.125% senior notes due 2020 2,000 — Floating rate notes due 2020 1,000 — 2.125% senior notes due 2021 1,750 1,750 4.125% senior notes due 2021 550 550 3.35% senior notes due 2021 3,000 — Floating rate notes due 2021 1,000 — 2.75% senior notes due 2022 1,250 1,250 3.5% senior notes due 2022 1,500 1,500 4.75% senior notes due 2022 399 399 4% senior notes due 2023 1,250 1,250 3.7% senior notes due 2023 6,000 — 3.375% senior notes due 2024 650 650 5% senior notes due 2024 299 299 3.875% senior notes due 2025 2,828 2,828 4.1% senior notes due 2025 5,000 — 2.875% senior notes due 2026 1,750 1,750 6.25% senior notes due 2027 372 372 4.3% senior notes due 2028 9,000 — 4.875% senior notes due 2035 652 652 4.78% senior notes due 2038 5,000 — 6.125% senior notes due 2039 447 447 5.75% senior notes due 2041 133 133 5.3% senior notes due 2043 750 750 5.125% senior notes due 2045 3,500 3,500 5.05% senior notes due 2048 8,000 — Capital lease obligations 667 670 Other 19 43 Total debt principal 65,866 27,170 Debt premiums 26 28 Debt discounts and deferred financing costs (783) (196) 65,109 27,002 Less: Short-term debt (commercial paper) — (1,276) Current portion of long-term debt (3,540) (3,545) Long-term debt $ 61,569 $ 22,181
Schedule of debt issuances	In millions 3.125% senior notes due 2020 $ 2,000 Floating rate notes due 2020 1,000 3.35% senior notes due 2021 3,000 Floating rate notes due 2021 1,000 3.7% senior notes due 2023 6,000 4.1% senior notes due 2025 5,000 4.3% senior notes due 2028 9,000 4.78% senior notes due 2038 5,000 5.05% senior notes due 2048 8,000 Total debt principal $ 40,000

Share Repurchase Programs (Tabl

Share Repurchase Programs (Tables)	6 Months Ended
	Jun. 30, 2018
Share Repurchase Programs
Share repurchase programs	In billions Remaining as of Authorization Date Authorized June 30, 2018 November 2, 2016 (“2016 Repurchase Program”) $ 15.0 $ 13.9 December 15, 2014 (“2014 Repurchase Program”) 10.0 —

Accumulated Other Comprehensi23

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss)
Schedule of accumulated other comprehensive income (loss) by component	Three Months Ended June 30, 2018 (1) Pension and Other Foreign Cash Flow Postretirement In millions Currency Hedges Benefits Total Balance, March 31, 2018 $ (128) $ 325 $ (25) $ 172 Other comprehensive loss: Other comprehensive loss before reclassifications (27) — — (27) Amounts reclassified from accumulated other comprehensive income (2) — (4) — (4) Other comprehensive loss (27) (4) — (31) Balance, June 30, 2018 $ (155) $ 321 $ (25) $ 141 Three Months Ended June 30, 2017 (1) Pension and Other Foreign Cash Flow Postretirement Currency Hedges Benefits Total Balance, March 31, 2017 $ (119) $ (4) $ (173) $ (296) Other comprehensive loss: Other comprehensive loss before reclassifications (10) — — (10) Amounts reclassified from accumulated other comprehensive income (loss) (2) — — — — Other comprehensive loss (10) — — (10) Balance, June 30, 2017 $ (129) $ (4) $ (173) $ (306) Six Months Ended June 30, 2018 (1) Pension and Other Foreign Cash Flow Postretirement Currency Hedges Benefits Total Balance, December 31, 2017 $ (129) $ (15) $ (21) $ (165) Reclassifications to retained earnings in accordance with ASU 2018-02 (3) — (3) (4) (7) (129) (18) (25) (172) Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications (26) 344 — 318 Amounts reclassified from accumulated other comprehensive income (loss) (2) — (5) — (5) Other comprehensive income (loss) (26) 339 — 313 Balance, June 30, 2018 $ (155) $ 321 $ (25) $ 141 Six Months Ended June 30, 2017 (1) Pension and Other Foreign Cash Flow Postretirement Currency Hedges Benefits Total Balance, December 31, 2016 $ (127) $ (5) $ (173) $ (305) Other comprehensive income (loss): Other comprehensive loss before reclassifications (2) — — (2) Amounts reclassified from accumulated other comprehensive income (loss) (2) — 1 — 1 Other comprehensive income (loss) (2) 1 — (1) Balance, June 30, 2017 $ (129) $ (4) $ (173) $ (306) (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 condensed consolidated statements of operations. The amounts reclassified from accumulated other comprehensive income for pension and other postretirement benefits are included in other expense on the condensed consolidated statements of operations. (3) See “Note 1 – Accounting Policies” to the condensed consolidated financial statements for additional information on the adoption of ASU 2018-02 during the first quarter of 2018.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan	Three Months Ended Six Months Ended June 30, June 30, In millions 2018 2017 2018 2017 Stock-based compensation: Stock options $ 11 $ 14 $ 25 $ 34 Restricted stock units and performance share units 43 39 85 74 Total stock-based compensation $ 54 $ 53 $ 110 $ 108

Interest Expense, Net (Tables)

Interest Expense, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Interest Expense, Net
Components of net interest expense	Three Months Ended Six Months Ended June 30, June 30, In millions 2018 2017 2018 2017 Interest expense $ 689 $ 251 $ 1,212 $ 509 Interest income (214) (4) (264) (10) Interest expense, net $ 475 $ 247 $ 948 $ 499

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings (Loss) Per Share
Reconciliation of basic and diluted earnings per common share	Three Months Ended Six Months Ended June 30, June 30, In millions, except per share amounts 2018 2017 2018 2017 Numerator for earnings (loss) per share calculation: Income (loss) from continuing operations $ $ 1,097 $ $ Income from continuing operations allocated to participating securities (1) (3) (3) (8) Income from continuing operations attributable to noncontrolling interests — — — (1) Income (loss) from continuing operations attributable to CVS Health $ $ 1,094 $ $ 2,050 Denominator for earnings (loss) per share calculation: Weighted average shares, basic 1,018 1,019 1,017 Effect of dilutive securities — 5 — 5 Weighted average shares, diluted 1,018 1,024 1,017 1,029 Earnings (loss) per share from continuing operations: Basic $ (2.52) $ 1.07 $ (1.54) $ 2.00 Diluted $ (2.52) $ 1.07 $ (1.54) $ 1.99

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting
Reconciliation of the Company's business segments to the consolidated financial statements	Three Months Ended June 30, 2017 Pharmacy Intersegment Consolidated In millions Services Retail/LTC Corporate Eliminations Totals Cost of revenues, as previously reported $ 30,856 $ 13,879 $ (5,985) $ 38,750 Adjustments 12 (3) — 9 Cost of revenues, as adjusted $ 30,868 $ 13,876 $ (5,985) $ 38,759 Gross profit, as previously reported $ 1,469 $ 5,675 $ (209) $ 6,935 Adjustments (12) 3 — (9) Gross profit, as adjusted $ 1,457 $ 5,678 $ (209) $ 6,926 Operating expenses, as previously reported $ 334 $ 4,264 $ 240 $ (20) $ 4,818 Adjustments 11 (14) (6) — (9) Operating expenses, as adjusted $ 345 $ 4,250 $ 234 $ (20) $ 4,809 Operating profit (loss), as previously reported $ 1,135 $ 1,411 $ (240) $ (189) $ 2,117 Adjustments (23) 17 6 — — Operating profit (loss), as adjusted $ 1,112 $ 1,428 $ (234) $ (189) $ 2,117 Six Months Ended June 30, 2017 Pharmacy Intersegment Consolidated In millions Services Retail/LTC Corporate Eliminations Totals Cost of revenues, as previously reported $ 60,983 $ 27,544 $ (11,843) $ 76,684 Adjustments 26 (8) — 18 Cost of revenues, as adjusted $ 61,009 $ 27,536 $ (11,843) $ 76,702 Gross profit, as previously reported $ 2,565 $ 11,351 $ (401) $ 13,515 Adjustments (26) 8 — (18) Gross profit, as adjusted $ 2,539 $ 11,359 $ (401) $ 13,497 Operating expenses, as previously reported $ 646 $ 8,529 $ 466 $ (36) $ 9,605 Adjustments 24 (31) (11) — (18) Operating expenses, as adjusted $ 670 $ 8,498 $ 455 $ (36) $ 9,587 Operating profit (loss), as previously reported $ 1,919 $ 2,822 $ (466) $ (365) $ 3,910 Adjustments (50) 39 11 — — Operating profit (loss), as adjusted $ 1,869 $ 2,861 $ (455) $ (365) $ 3,910 The following is a reconciliation of the Company’s segments to the accompanying condensed consolidated financial statements: Pharmacy Intersegment Consolidated In millions Services (1) Retail/LTC Corporate Eliminations (2) Totals Three Months Ended June 30, 2018: Net revenues $ 33,247 $ 20,672 $ — $ (7,211) $ 46,708 Gross profit 1,495 5,912 — (206) 7,201 Operating profit (loss) (3)(4) 1,088 (2,225) (263) (187) (1,587) June 30, 2017: Net revenues 32,325 19,554 — (6,194) 45,685 Gross profit (5) 1,457 5,678 — (209) 6,926 Operating profit (loss) (3)(6) 1,112 1,428 (234) (189) 2,117 Six Months Ended June 30, 2018: Net revenues $ 65,465 $ 41,104 $ — $ (14,168) $ 92,401 Gross profit 2,633 11,828 — (401) 14,060 Operating profit (loss) (3)(4)(6) 1,849 (601) (527) (362) 359 June 30, 2017: Net revenues 63,548 38,895 — (12,244) 90,199 Gross profit (5) 2,539 11,359 — (401) 13,497 Operating profit (loss) (3)(6) 1,869 2,861 (455) (365) 3,910 (1) Net revenues of the Pharmacy Services Segment include approximately $2.8 billion and $2.7 billion of retail co‑payments for the three months ended June 30, 2018 and 2017, respectively, as well as $6.1 billion and $5.8 billion of retail co‑payments for the six months ended June 30, 2018 and 2017, respectively. (2) Intersegment eliminations relate to intersegment revenue generating activities that occur between the Pharmacy Services Segment and the Retail/LTC Segment. These occur in the following ways: when members of Pharmacy Services Segment clients (“members”) fill prescriptions at the Company’s retail pharmacies to purchase covered products, when members enrolled in programs such as Maintenance Choice ® elect to pick up maintenance prescriptions at one of the Company’s retail pharmacies instead of receiving them through the mail, or when members have prescriptions filled at the Company’s long-term care pharmacies. When these occur, both the Pharmacy Services and Retail/LTC segments record the revenues, gross profit and operating profit on a stand-alone basis. (3) The Retail/LTC Segment operating profit (loss) for the three and six months ended June 30, 2018 and 2017 include goodwill impairment charges of $3.9 billion related to the LTC reporting unit and $135 million related to the RxCrossroads reporting unit, respectively. See “Note 3 – Goodwill” to the condensed consolidated financial statements. The Retail/LTC Segment operating loss for the six months ended June 30, 2018 also includes an $86 million loss on the divestiture of the RxCrossroads subsidiary. The Retail/LTC Segment operating profit for the three and six months ended June 30, 2017 also includes $6 million and $205 million, respectively, of charges associated with store closures. (4) The Corporate Segment operating loss for the three and six months ended June 30, 2018 include $39 million and $79 million, respectively, in acquisition-related transaction and integration costs related to the proposed Aetna acquisition. (5) The Retail/LTC Segment gross profit for the three and six months ended June 30, 2017 each include $5 million of acquisition-related integration costs related to the acquisition of Omnicare. The Retail/LTC Segment operating profit (loss) for the six months ended June 30, 2018 and 2017 include $3 million and $25 million, respectively, of acquisition-related integration costs. The Retail/LTC Segment operating profit for the three months ended June 30, 2017 includes $10 million of acquisition-related integration costs. The integration costs are related to the acquisition of Omnicare.

Accounting Policies - Descripti

Accounting Policies - Description of Business (Details)	6 Months Ended
	Jun. 30, 2018statesegmentclinicpharmacyitemstoreCenter
Segment reporting information
Number of reportable segments | segment	3
Pharmacy Services Segment
Segment reporting information
Number of pharmacies (more than 68,000)	68,000
Number of chain pharmacies	41,000
Number of independent pharmacies	27,000
Number of conditions for integrated disease management | item	18
Centers of excellence for infusion and enteral services | Center	3
Number of states pharmacies operated | state	42
Pharmacy Services Segment | Specialty stores
Segment reporting information
Number of pharmacies (more than 68,000)	25
Pharmacy Services Segment | Specialty mail order
Segment reporting information
Number of pharmacies (more than 68,000)	18
Pharmacy Services Segment | Mail service
Segment reporting information
Number of pharmacies (more than 68,000)	4
Pharmacy Services Segment | Infusion and Enteral Branches
Segment reporting information
Number of infusion and enteral branches	87
Pharmacy Services Segment | Ambulatory Infusion Suites
Segment reporting information
Number of infusion and enteral branches	70
Retail/LTC Segment
Segment reporting information
Number of states pharmacies operated | state	49
Number of drugstores | store	9,880
Number of on-site pharmacies	37
Number of LTC spoke pharmacies | store	156
Number of LTC hub pharmacies | store	30
Retail/LTC Segment | MinuteClinic
Segment reporting information
Number of drugstores | clinic	1,112
Retail/LTC Segment | Minute Clinic Within C V S Pharmacy Stores
Segment reporting information
Number of drugstores | clinic	1,108
Retail/LTC Segment | Pharmacy
Segment reporting information
Number of drugstores | store	8,130
Target Pharmacy Acquisition | Retail/LTC Segment
Segment reporting information
Number of pharmacies acquired	1,702

Accounting Policies - Fair Valu

Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies
Short-term investments	$ 96	$ 111
Carrying amount of long-term debt	65,100
Estimated fair value of long-term debt	$ 64,700

Accounting Policies - Accounts

Accounting Policies - Accounts Receivable, net (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies
Trade receivables	$ 6,611	$ 7,873
Vendor and manufacturer receivables	7,038	5,109
Other receivables	509	199
Total accounts receivable, net	$ 14,158	$ 13,181

Accounting Policies - Related P

Accounting Policies - Related Party Transactions (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)state	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)state	Jun. 30, 2017USD ($)
Related Party Transaction
Expenses from transactions with related party	$ 8	$ 8	$ 30	$ 25
Equity Method Investee
Related Party Transaction
Other revenues from transactions with related party	$ 36	$ 30	$ 71	$ 70
Heartland Healthcare Services
Related Party Transaction
Number of states in which entity operates | state	4		4

Accounting Policies - Revenue A

Accounting Policies - Revenue Adoption Retained Earnings Adjustment (Details) - ASU 2014-09 $ in Millions	Jan. 01, 2018USD ($)
Retained earnings adjustment
Retained earnings adjustment net of tax	$ (13)
Retained earnings adjustment before of tax	$ (17)

Accounting Policies - Revenue D

Accounting Policies - Revenue Disaggregation (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Revenue Disaggregation
Net revenue	$ 46,708	$ 92,401
Pharmacy
Revenue Disaggregation
Net revenue	40,947	80,252
Front Store
Revenue Disaggregation
Net revenue	4,707	9,433
Other
Revenue Disaggregation
Net revenue	1,054	2,716
Operating Segments | Pharmacy Services Segment
Revenue Disaggregation
Net revenue	33,247	65,465
Operating Segments | Pharmacy Services Segment | Pharmacy
Revenue Disaggregation
Net revenue	32,353	63,115
Operating Segments | Pharmacy Services Segment | Mail choice
Revenue Disaggregation
Net revenue	11,787	22,995
Operating Segments | Pharmacy Services Segment | Pharmacy network
Revenue Disaggregation
Net revenue	20,566	40,120
Operating Segments | Pharmacy Services Segment | Other
Revenue Disaggregation
Net revenue	894	2,350
Operating Segments | Retail/LTC Segment
Revenue Disaggregation
Net revenue	20,672	41,104
Operating Segments | Retail/LTC Segment | Pharmacy
Revenue Disaggregation
Net revenue	15,805	31,305
Operating Segments | Retail/LTC Segment | Front Store
Revenue Disaggregation
Net revenue	4,707	9,433
Operating Segments | Retail/LTC Segment | Other
Revenue Disaggregation
Net revenue	160	366
Intersegment Eliminations
Revenue Disaggregation
Net revenue	(7,211)	(14,168)
Intersegment Eliminations | Pharmacy
Revenue Disaggregation
Net revenue	$ (7,211)	$ (14,168)

Accounting Policies - Contract

Accounting Policies - Contract Balances and Activity (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies
Receivables (included in accounts receivable, net)		$ 6,611	$ 7,873
Contract liabilities (included in accrued expenses)	$ 53	$ 72	$ 53
Rollforward of contract liabilities
Balance at beginning of period	53
Adoption of ASU 2014-09	17
Loyalty program earnings and gift card issuance	166
Redemption and breakage	(164)
Balance at end of period	$ 72

Accounting Policies - Impact of

Accounting Policies - Impact of New Revenue Recognition Standard on Financial Statement Line Items (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Condensed Consolidated Statements of Operations
Net revenue	$ 46,708		$ 92,401
Cost of revenue	39,507	$ 38,759	78,341	$ 76,702
Gross profit	7,201	6,926	14,060	13,497
Operating profit (loss)	(1,587)	2,117	359	3,910
Income (loss) before income tax provision	(2,065)	1,863	(595)	3,397
Income tax provision	497	766	969	1,338
Income (loss) from continuing operations	(2,562)	1,097	(1,564)	2,059
Net income (loss)	(2,563)	1,098	(1,565)	2,051
Net income (loss) attributable to CVS Health	(2,563)	1,098	(1,565)	2,050
Condensed Consolidated Balance Sheets
Accrued expenses	7,640		7,640		$ 6,626	$ 6,609
Deferred income taxes	3,054		3,054		2,992	2,996
Total Liabilities	97,679		97,679		57,449	57,436
Retained earnings	40,965		40,965		43,543	43,556
Total CVS Health shareholders’ equity	35,607		35,607		37,678	37,691
Total shareholders’ equity	35,611		35,611		37,682	$ 37,695
Reconciliation of net income to net cash provided by operating activities:
Net income (loss)	(2,563)	$ 1,098	(1,565)	2,051
Deferred income taxes and other noncash items			252	21
Accrued expenses			1,143	$ 1,345
ASU 2014-09 | Adjustment
Condensed Consolidated Statements of Operations
Net revenue	(3)		(10)
Cost of revenue	(2)		(6)
Gross profit	(1)		(4)
Operating profit (loss)	(1)		(4)
Income (loss) before income tax provision	(1)		(4)
Income tax provision			(1)
Income (loss) from continuing operations	(1)		(3)
Net income (loss)	(1)		(3)
Net income (loss) attributable to CVS Health	(1)		(3)
Condensed Consolidated Balance Sheets
Accrued expenses	21		21		17
Deferred income taxes	(5)		(5)		(4)
Total Liabilities	16		16		13
Retained earnings	(16)		(16)		(13)
Total CVS Health shareholders’ equity	(16)		(16)		(13)
Total shareholders’ equity	(16)		(16)		$ (13)
Reconciliation of net income to net cash provided by operating activities:
Net income (loss)	(1)		(3)
Deferred income taxes and other noncash items			(1)
Accrued expenses			4
ASU 2014-09 | As previously reported
Condensed Consolidated Statements of Operations
Net revenue	46,711		92,411
Cost of revenue	39,509		78,347
Gross profit	7,202		14,064
Operating profit (loss)	(1,586)		363
Income (loss) before income tax provision	(2,064)		(591)
Income tax provision	497		970
Income (loss) from continuing operations	(2,561)		(1,561)
Net income (loss)	(2,562)		(1,562)
Net income (loss) attributable to CVS Health	(2,562)		(1,562)
Condensed Consolidated Balance Sheets
Accrued expenses	7,619		7,619
Deferred income taxes	3,059		3,059
Total Liabilities	97,663		97,663
Retained earnings	40,981		40,981
Total CVS Health shareholders’ equity	35,623		35,623
Total shareholders’ equity	35,627		35,627
Reconciliation of net income to net cash provided by operating activities:
Net income (loss)	$ (2,562)		(1,562)
Deferred income taxes and other noncash items			253
Accrued expenses			$ 1,139

Accounting Policies - New Accou

Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Cash and cash equivalents and restricted cash
Cash and cash equivalents				$ 43,815	$ 1,696
Total cash, cash equivalents and restricted cash in the statement of cash flows	$ 1,900	$ 1,900	$ 3,520	44,057	1,900
Condensed Consolidated Statements of Cash Flows
Acquisitions (net of cash acquired) and other investments		(573)	(275)
Net cash used in investing activities		(752)	(1,134)
Net decrease in cash, cash equivalents and restricted cash		42,157	(1,237)
Cash, cash equivalents and restricted cash at the beginning of the period	1,900	1,900	3,520
Cash, cash equivalents and restricted cash at the end of the period		44,057	2,283
Adjustments Early Adoption | ASU 2018-02 | Adjustments
Condensed Consolidated Statements of Operations
Amounts reclassified from accumulated other comprehensive income (loss)	(7)
ASU 2016-18
Cash and cash equivalents and restricted cash
Cash and cash equivalents				43,815	1,696
Total cash, cash equivalents and restricted cash in the statement of cash flows	1,900	1,900		44,057	1,900
Condensed Consolidated Statements of Cash Flows
Cash, cash equivalents and restricted cash at the beginning of the period	$ 1,900	1,900
Cash, cash equivalents and restricted cash at the end of the period		$ 44,057
ASU 2016-18 | Previously Reported
Cash and cash equivalents and restricted cash
Total cash, cash equivalents and restricted cash in the statement of cash flows			3,371
Condensed Consolidated Statements of Cash Flows
Acquisitions (net of cash acquired) and other investments			(315)
Net cash used in investing activities			(1,174)
Net decrease in cash, cash equivalents and restricted cash			(1,277)
Cash, cash equivalents and restricted cash at the beginning of the period			3,371
Cash, cash equivalents and restricted cash at the end of the period			2,094
ASU 2016-18 | Adjustments
Cash and cash equivalents and restricted cash
Total cash, cash equivalents and restricted cash in the statement of cash flows			149
Condensed Consolidated Statements of Cash Flows
Acquisitions (net of cash acquired) and other investments			40
Net cash used in investing activities			40
Net decrease in cash, cash equivalents and restricted cash			40
Cash, cash equivalents and restricted cash at the beginning of the period			149
Cash, cash equivalents and restricted cash at the end of the period			$ 189
ASU 2016-18 | Other Current Assets
Cash and cash equivalents and restricted cash
Restricted Cash and Cash Equivalents				14	14
ASU 2016-18 | Other Long-Term Assets
Cash and cash equivalents and restricted cash
Restricted Cash and Cash Equivalents				$ 228	$ 190

Proposed Aetna Acquisition (Det

Proposed Aetna Acquisition (Details) - Aetna $ / shares in Units, $ in Billions	Dec. 03, 2017USD ($)$ / sharesshares
Business Acquisition
Cash consideration for shares acquired (dollars per share) | $ / shares	$ 145
Shares exchanged for each share acquired (in shares) | shares	0.8378
The assigned value per share of acquiree (dollars per share) | $ / shares	$ 207
Assigned value of acquiree | $	$ 69
Weighted average share price analysis	5 days
Consideration transferred | $	$ 77
Potential termination fees | $	$ 2.1
Aetna Acquisition
Business Acquisition
Share price (dollars per share) | $ / shares	$ 74.21

Goodwill (Details)

Goodwill (Details) - USD ($)	1 Months Ended	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 02, 2018
Goodwill
Goodwill, impairment loss		$ 3,921,000,000	$ 0	$ 135,000,000	$ 3,921,000,000	$ 135,000,000
Goodwill
Goodwill, beginning balance					38,451,000,000
Acquisitions					102,000,000
Foreign currency translation adjustments					(14,000,000)
Divestiture of RxCrossroads subsidiary					(398,000,000)
Impairment		(3,921,000,000)	$ 0	(135,000,000)	(3,921,000,000)	(135,000,000)
Goodwill, ending balance	$ 34,220,000,000	34,220,000,000			34,220,000,000
Pharmacy Services Segment
Goodwill
Goodwill, beginning balance					21,819,000,000
Acquisitions					67,000,000
Goodwill, ending balance	21,886,000,000	21,886,000,000			21,886,000,000
Retail/LTC Segment
Goodwill
Goodwill, impairment loss					3,921,000,000
Goodwill
Goodwill, beginning balance					16,632,000,000
Acquisitions					35,000,000
Foreign currency translation adjustments					(14,000,000)
Divestiture of RxCrossroads subsidiary					(398,000,000)
Impairment					(3,921,000,000)
Goodwill, ending balance	12,334,000,000	12,334,000,000			12,334,000,000
Rx Crossroads
Goodwill
Goodwill, impairment loss				135,000,000		135,000,000
Goodwill
Impairment				$ (135,000,000)		$ (135,000,000)
Disposal group
Consideration							$ 725,000,000
LTC reporting unit
Goodwill
Goodwill, impairment loss		3,900,000,000			3,900,000,000
Fair value exceeding carrying value (as a percent)			1.00%
Intangible asset impairment	0
Goodwill
Impairment		(3,900,000,000)			(3,900,000,000)
Goodwill, ending balance	$ 2,700,000,000	$ 2,700,000,000			$ 2,700,000,000

Borrowings and Credit Agreeme39

Borrowings and Credit Agreements - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Borrowings and Credit Agreements
Total debt principal	$ 65,866	$ 27,170
Debt premiums	26	28
Debt discounts and deferred financing costs	(783)	(196)
Long-term debt, net of premiums, discounts and deferred costs	65,109	27,002
Short-term debt (commercial paper)		(1,276)
Current portion of long-term debt	(3,540)	(3,545)
Long-term debt	61,569	22,181
1.9% senior notes due 2018
Borrowings and Credit Agreements
Total debt principal	$ 2,250	2,250
Interest rate, stated percentage	1.90%
2.25% senior notes due 2018
Borrowings and Credit Agreements
Total debt principal	$ 1,250	1,250
Interest rate, stated percentage	2.25%
2.25% senior notes due 2019
Borrowings and Credit Agreements
Total debt principal	$ 850	850
Interest rate, stated percentage	2.25%
2.8% senior notes due 2020
Borrowings and Credit Agreements
Total debt principal	$ 2,750	2,750
Interest rate, stated percentage	2.80%
3.125% senior notes due 2020
Borrowings and Credit Agreements
Total debt principal	$ 2,000
Interest rate, stated percentage	3.125%
Floating rate notes due 2020
Borrowings and Credit Agreements
Total debt principal	$ 1,000
2.125% senior notes due 2021
Borrowings and Credit Agreements
Total debt principal	$ 1,750	1,750
Interest rate, stated percentage	2.125%
4.125% senior notes due 2021
Borrowings and Credit Agreements
Total debt principal	$ 550	550
Interest rate, stated percentage	4.125%
3.35% senior notes due 2021
Borrowings and Credit Agreements
Total debt principal	$ 3,000
Interest rate, stated percentage	3.35%
Floating rate notes due 2021
Borrowings and Credit Agreements
Total debt principal	$ 1,000
2.75% senior notes due 2022
Borrowings and Credit Agreements
Total debt principal	$ 1,250	1,250
Interest rate, stated percentage	2.75%
3.5% senior notes due 2022
Borrowings and Credit Agreements
Total debt principal	$ 1,500	1,500
Interest rate, stated percentage	3.50%
4.75% senior notes due 2022
Borrowings and Credit Agreements
Total debt principal	$ 399	399
Interest rate, stated percentage	4.75%
4% senior notes due 2023
Borrowings and Credit Agreements
Total debt principal	$ 1,250	1,250
Interest rate, stated percentage	4.00%
3.7% senior notes due 2023
Borrowings and Credit Agreements
Total debt principal	$ 6,000
Interest rate, stated percentage	3.70%
3.375% senior notes due 2024
Borrowings and Credit Agreements
Total debt principal	$ 650	650
Interest rate, stated percentage	3.375%
5% senior notes due 2024
Borrowings and Credit Agreements
Total debt principal	$ 299	299
Interest rate, stated percentage	5.00%
3.875% senior notes due 2025
Borrowings and Credit Agreements
Total debt principal	$ 2,828	2,828
Interest rate, stated percentage	3.875%
4.1% senior notes due 2025
Borrowings and Credit Agreements
Total debt principal	$ 5,000
Interest rate, stated percentage	4.10%
2.875% senior notes due 2026
Borrowings and Credit Agreements
Total debt principal	$ 1,750	1,750
Interest rate, stated percentage	2.875%
6.25% senior notes due 2027
Borrowings and Credit Agreements
Total debt principal	$ 372	372
Interest rate, stated percentage	6.25%
4.3% senior notes due 2028
Borrowings and Credit Agreements
Total debt principal	$ 9,000
Interest rate, stated percentage	4.30%
3.25% senior exchange debentures due 2035
Borrowings and Credit Agreements
Total debt principal		$ 1
Interest rate, stated percentage		3.25%
4.875% senior notes due 2035
Borrowings and Credit Agreements
Total debt principal	$ 652	$ 652
Interest rate, stated percentage	4.875%
4.78% senior notes due 2038
Borrowings and Credit Agreements
Total debt principal	$ 5,000
Interest rate, stated percentage	4.78%
6.125% senior notes due 2039
Borrowings and Credit Agreements
Total debt principal	$ 447	447
Interest rate, stated percentage	6.125%
5.75% senior notes due 2041
Borrowings and Credit Agreements
Total debt principal	$ 133	133
Interest rate, stated percentage	5.75%
5.3% senior notes due 2043
Borrowings and Credit Agreements
Total debt principal	$ 750	750
Interest rate, stated percentage	5.30%
5.125% senior notes due 2045
Borrowings and Credit Agreements
Total debt principal	$ 3,500	3,500
Interest rate, stated percentage	5.125%
5.05% senior notes due 2048
Borrowings and Credit Agreements
Total debt principal	$ 8,000
Interest rate, stated percentage	5.05%
Capital lease obligation
Borrowings and Credit Agreements
Total debt principal	$ 667	670
Other
Borrowings and Credit Agreements
Total debt principal	19	43
Commercial Paper
Borrowings and Credit Agreements
Total debt principal	$ 0	$ 1,276

Borrowings and Credit Agreeme40

Borrowings and Credit Agreements - Additional Information (Details) - USD ($)	Mar. 09, 2018	Dec. 03, 2017	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Dec. 15, 2017
Borrowings and Credit Agreements
Carrying amount of long-term debt			$ 65,100,000,000	$ 65,100,000,000
Aetna Acquisition
Borrowings and Credit Agreements
Redemption percentage				101.00%
Unsecured senior notes of $40 billion
Borrowings and Credit Agreements
Debt instrument, face amount	$ 40,000,000,000
Proceeds from issuance of debt	39,400,000,000
Carrying amount of long-term debt	40,000,000,000
3.125% senior notes due 2020
Borrowings and Credit Agreements
Debt instrument, face amount	$ 2,000,000,000
Interest rate, stated percentage	3.125%
Floating rate notes due 2020
Borrowings and Credit Agreements
Debt instrument, face amount	$ 1,000,000,000
3.35% senior notes due 2021
Borrowings and Credit Agreements
Debt instrument, face amount	$ 3,000,000,000
Interest rate, stated percentage	3.35%
Floating rate notes due 2021
Borrowings and Credit Agreements
Debt instrument, face amount	$ 1,000,000,000
3.7% senior notes due 2023
Borrowings and Credit Agreements
Debt instrument, face amount	$ 6,000,000,000
Interest rate, stated percentage	3.70%
4.1% senior notes due 2025
Borrowings and Credit Agreements
Debt instrument, face amount	$ 5,000,000,000
Interest rate, stated percentage	4.10%
4.3% senior notes due 2028
Borrowings and Credit Agreements
Debt instrument, face amount	$ 9,000,000,000
Interest rate, stated percentage	4.30%
4.78% senior notes due 2038
Borrowings and Credit Agreements
Debt instrument, face amount	$ 5,000,000,000
Interest rate, stated percentage	4.78%
5.05% senior notes due 2048
Borrowings and Credit Agreements
Debt instrument, face amount	$ 8,000,000,000
Interest rate, stated percentage	5.05%
Term loan in connection with Aetna purchase | Aetna Acquisition
Borrowings and Credit Agreements
Debt instrument, face amount						$ 5,000,000,000
Unsecured Backup Credit Facilities
Borrowings and Credit Agreements
Commitment fee percentage				0.03%
Long-term line of credit			0	$ 0	$ 0
Unsecured Backup Credit Facilities | Unsecured Backup Credit Facility Expiring May 16 2019
Borrowings and Credit Agreements
Maximum borrowing capacity			1,750,000,000	$ 1,750,000,000
Line of credit facility term (in years)				364 days
Unsecured Backup Credit Facilities | Unsecured Backup Credit Facility Expiring May 17 2023
Borrowings and Credit Agreements
Maximum borrowing capacity			2,000,000,000	$ 2,000,000,000
Line of credit facility term (in years)				5 years
Unsecured Backup Credit Facilities | Unsecured Backup Credit Facility Expiring July 1, 2020
Borrowings and Credit Agreements
Maximum borrowing capacity			1,250,000,000	$ 1,250,000,000
Line of credit facility term (in years)				5 years
Unsecured Backup Credit Facilities | Unsecured Backup Credit Facility Expiring May 18, 2022
Borrowings and Credit Agreements
Maximum borrowing capacity			1,000,000,000	$ 1,000,000,000
Line of credit facility term (in years)				5 years
Unsecured Debt | Unsecured Bridge Loan | Aetna Acquisition
Borrowings and Credit Agreements
Debt issuance fees paid		$ 221,000,000
Amortization of loan facility fees			$ 8,000,000	$ 169,000,000
Debt instrument, face amount		$ 49,000,000,000				$ 44,000,000,000
Carrying amount of long-term debt	$ 4,000,000,000
Extension fees paid for extension of bridge loan facility	$ 8,000,000

Share Repurchase Programs (Deta

Share Repurchase Programs (Details) $ in Billions	Aug. 29, 2016USD ($)agreement	Apr. 30, 2017shares	Jun. 30, 2018USD ($)shares	Jun. 30, 2018USD ($)shares	Jan. 31, 2017shares	Jan. 06, 2017
2016 Repurchase Program
Share repurchases
Share repurchase program, authorized amount			$ 15	$ 15
Amount available for repurchases			$ 13.9	$ 13.9
Repurchase of common stock (in shares) | shares			0	0
2014 Repurchase Program
Share repurchases
Share repurchase program, authorized amount			$ 10	$ 10
2014 Repurchase Program | August 29, 2016
Share repurchases
Number of agreements | agreement	2
Amount under ASR agreement	$ 3.6
ASR, shares received as a percent of notional amount						80.00%
Shares repurchased under ASR agreement (in shares) | shares					36,100,000
ASR, shares to be received at end of program as a percent of notional amount		20.00%
ASR, maximum number of shares (in shares) | shares		9,900,000
Transfer of shares to treasury stock value	2.9
2014 Repurchase Program | Forward contract | August 29, 2016
Share repurchases
Derivative, Notional Amount	$ 0.7

Accumulated Other Comprehensi42

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	Mar. 09, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period			$ 37,695		$ 37,695
Total other comprehensive income (loss)		$ (31)		$ (10)	313	$ (1)
End of period		35,611			35,611
Payments received from termination of cash flow hedge	$ 446				446
Gains recorded in accumulated other comprehensive income	331
Cash flow hedge gains expected to be reclassified in next 12 months					18
Foreign Currency
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period		(128)		(119)		(127)
Beginning of the year, adjusted							$ (129)
Other comprehensive income (loss) before reclassifications		(27)		(10)	(26)	(2)
Total other comprehensive income (loss)		(27)		(10)	(26)	(2)
End of period		(155)	(128)	(129)	(155)	(129)
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period		325		(4)		(5)
Beginning of the year, adjusted							(18)
Other comprehensive income (loss) before reclassifications					344
Amounts reclassified from accumulated other comprehensive income (loss)		(4)			(5)	1
Total other comprehensive income (loss)		(4)			339	1
End of period		321	325	(4)	321	(4)
Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period		(25)		(173)		(173)
Beginning of the year, adjusted							(25)
End of period		(25)	(25)	(173)	(25)	(173)
Accumulated Other Comprehensive Income (Loss).
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period		172		(296)		(305)
Beginning of the year, adjusted							(172)
Other comprehensive income (loss) before reclassifications		(27)		(10)	318	(2)
Amounts reclassified from accumulated other comprehensive income (loss)		(4)			(5)	1
Total other comprehensive income (loss)		(31)		(10)	313	(1)
End of period		$ 141	172	$ (306)	141	$ (306)
Adjustments Early Adoption | ASU 2018-02 | Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) rollforward
Retained earnings adjustment							(3)
Adjustments Early Adoption | ASU 2018-02 | Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) rollforward
Retained earnings adjustment							(4)
Adjustments Early Adoption | ASU 2018-02 | Accumulated Other Comprehensive Income (Loss).
Accumulated Other Comprehensive Income (Loss) rollforward
Retained earnings adjustment							$ (7)
Previously Reported | Foreign Currency
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period			(129)		(129)
Previously Reported | Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period			(15)		(15)
Previously Reported | Pension and Other Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period			(21)		(21)
Previously Reported | Accumulated Other Comprehensive Income (Loss).
Accumulated Other Comprehensive Income (Loss) rollforward
Beginning of period			$ (165)		$ (165)
Unsecured senior notes of $40 billion
Accumulated Other Comprehensive Income (Loss) rollforward
Aggregate Principal	$ 40,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Compensation
Stock-based compensation expense	$ 54	$ 53	$ 110	$ 108
Employee Stock Option
Compensation
Stock-based compensation expense	11	14	25	34
Restricted Stock Units (RSUs)
Compensation
Stock-based compensation expense	$ 43	$ 39	$ 85	$ 74

Interest Expense, Net (Details)

Interest Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest Expense
Interest expense	$ 689	$ 251	$ 1,212	$ 509
Interest income	(214)	(4)	(264)	(10)
Interest expense), net	$ 475	$ 247	$ 948	$ 499

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator for earnings (loss) per share calculation:
Income (loss) from continuing operations	$ (2,562)	$ 1,097	$ (1,564)	$ 2,059
Income from continuing operations allocated to participating securities	(1)	(3)	(3)	(8)
Income from continuing operations attributable to noncontrolling interest				(1)
Income (loss) from continuing operations attributable to CVS Health	$ (2,563)	$ 1,094	$ (1,567)	$ 2,050
Denominator for earnings per share calculation:
Weighted average shares, basic (in shares)	1,018	1,019	1,017	1,024
Effect of dilutive securities (in shares)		5		5
Weighted average shares, diluted (in shares)	1,018	1,024	1,017	1,029
Earnings (loss) per share from continuing operations:
Earnings (loss) per share, basic (in dollars per share)	$ (2.52)	$ 1.07	$ (1.54)	$ 2
Earnings (loss) per share, diluted (in dollars per share)	$ (2.52)	$ 1.07	$ (1.54)	$ 1.99
Common Equivalent Shares
Reconciliation of basic and diluted earnings per common share
Antidilutive securities excluded from computation of earnings per share (in shares)	1.9		2.3
Employee Stock Option
Reconciliation of basic and diluted earnings per common share
Antidilutive securities excluded from computation of earnings per share (in shares)	15.3	11	14.3	9.4

Segment Reporting (Details)

Segment Reporting (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment reporting information
Number of operating segments | segment				2
Number of reportable segments | segment				3
Net revenues	$ 46,708,000,000		$ 45,685,000,000	$ 92,401,000,000	$ 90,199,000,000
Cost of revenue	39,507,000,000		38,759,000,000	78,341,000,000	76,702,000,000
Gross profit	7,201,000,000		6,926,000,000	14,060,000,000	13,497,000,000
Operating expenses			4,809,000,000		9,587,000,000
Operating profit (loss)	(1,587,000,000)		2,117,000,000	359,000,000	3,910,000,000
Goodwill, impairment loss	3,921,000,000	$ 0	135,000,000	3,921,000,000	135,000,000
Pharmacy Services Segment
Segment reporting information
Net revenues, retail co-payments	2,800,000,000		2,700,000,000	6,100,000,000	5,800,000,000
Retail/LTC Segment
Segment reporting information
Goodwill, impairment loss				3,921,000,000
Loss on disposal				86,000,000
Retail/LTC Segment | Operating profit
Segment reporting information
Restructuring Charges			6,000,000		205,000,000
Rx Crossroads
Segment reporting information
Goodwill, impairment loss			135,000,000		135,000,000
LTC reporting unit
Segment reporting information
Goodwill, impairment loss	3,900,000,000			3,900,000,000
LTC reporting unit | Operating profit
Segment reporting information
Goodwill, impairment loss	3,900,000,000			3,900,000,000
Operating Segments | Pharmacy Services Segment
Segment reporting information
Net revenues	33,247,000,000		32,325,000,000	65,465,000,000	63,548,000,000
Cost of revenue			30,868,000,000		61,009,000,000
Gross profit	1,495,000,000		1,457,000,000	2,633,000,000	2,539,000,000
Operating expenses			345,000,000		670,000,000
Operating profit (loss)	1,088,000,000		1,112,000,000	1,849,000,000	1,869,000,000
Operating Segments | Retail/LTC Segment
Segment reporting information
Net revenues	20,672,000,000		19,554,000,000	41,104,000,000	38,895,000,000
Cost of revenue			13,876,000,000		27,536,000,000
Gross profit	5,912,000,000		5,678,000,000	11,828,000,000	11,359,000,000
Operating expenses			4,250,000,000		8,498,000,000
Operating profit (loss)	(2,225,000,000)		1,428,000,000	(601,000,000)	2,861,000,000
Operating Segments | Corporate Segment
Segment reporting information
Operating expenses			234,000,000		455,000,000
Operating profit (loss)	(263,000,000)		(234,000,000)	(527,000,000)	(455,000,000)
Intersegment Eliminations
Segment reporting information
Net revenues	(7,211,000,000)		(6,194,000,000)	(14,168,000,000)	(12,244,000,000)
Cost of revenue			(5,985,000,000)		(11,843,000,000)
Gross profit	(206,000,000)		(209,000,000)	(401,000,000)	(401,000,000)
Operating expenses			(20,000,000)		(36,000,000)
Operating profit (loss)	(187,000,000)		(189,000,000)	(362,000,000)	(365,000,000)
Previously Reported
Segment reporting information
Cost of revenue			38,750,000,000		76,684,000,000
Gross profit			6,935,000,000		13,515,000,000
Operating expenses			4,818,000,000		9,605,000,000
Operating profit (loss)			2,117,000,000		3,910,000,000
Previously Reported | Operating Segments | Pharmacy Services Segment
Segment reporting information
Cost of revenue			30,856,000,000		60,983,000,000
Gross profit			1,469,000,000		2,565,000,000
Operating expenses			334,000,000		646,000,000
Operating profit (loss)			1,135,000,000		1,919,000,000
Previously Reported | Operating Segments | Retail/LTC Segment
Segment reporting information
Cost of revenue			13,879,000,000		27,544,000,000
Gross profit			5,675,000,000		11,351,000,000
Operating expenses			4,264,000,000		8,529,000,000
Operating profit (loss)			1,411,000,000		2,822,000,000
Previously Reported | Operating Segments | Corporate Segment
Segment reporting information
Operating expenses			240,000,000		466,000,000
Operating profit (loss)			(240,000,000)		(466,000,000)
Previously Reported | Intersegment Eliminations
Segment reporting information
Cost of revenue			(5,985,000,000)		(11,843,000,000)
Gross profit			(209,000,000)		(401,000,000)
Operating expenses			(20,000,000)		(36,000,000)
Operating profit (loss)			(189,000,000)		(365,000,000)
Adjustments.
Segment reporting information
Cost of revenue			9,000,000		18,000,000
Gross profit			(9,000,000)		(18,000,000)
Operating expenses			(9,000,000)		(18,000,000)
Adjustments. | Operating Segments | Pharmacy Services Segment
Segment reporting information
Cost of revenue			12,000,000		26,000,000
Gross profit			(12,000,000)		(26,000,000)
Operating expenses			11,000,000		24,000,000
Operating profit (loss)			(23,000,000)		(50,000,000)
Adjustments. | Operating Segments | Retail/LTC Segment
Segment reporting information
Cost of revenue			(3,000,000)		(8,000,000)
Gross profit			3,000,000		8,000,000
Operating expenses			(14,000,000)		(31,000,000)
Operating profit (loss)			17,000,000		39,000,000
Adjustments. | Operating Segments | Corporate Segment
Segment reporting information
Operating expenses			(6,000,000)		(11,000,000)
Operating profit (loss)			6,000,000		11,000,000
Omnicare, Inc. | Retail/LTC Segment | Gross Profit
Segment reporting information
Acquisition related costs			5,000,000		5,000,000
Omnicare, Inc. | Retail/LTC Segment | Operating profit
Segment reporting information
Integration related costs			$ 10,000,000	3,000,000	$ 25,000,000
Aetna Acquisition | Corporate Segment | Operating profit
Segment reporting information
Business Combination Acquisition Related Costs And Integration Related Costs	$ 39,000,000			$ 79,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	1 Months Ended			2 Months Ended
	Dec. 31, 2017item	Sep. 30, 2015pharmacy	Feb. 28, 2006lawsuititemdirector	Sep. 30, 2017complaint	Jun. 30, 2018itemstore
Loss contingencies
Number of store leases guaranteed | store					85
Number of material accruals for outstanding legal matters					0
Number of pharmacies indicated in subpoena | pharmacy		8
Omnicare, Inc.
Loss contingencies
New claims filed, number | lawsuit			2
Number of officers named in lawsuit			3
Number of directors named in lawsuit | director			2
National Opioid Litigation
Loss contingencies
the number of relevant federal court cases that named the company	200
The number of relevant state court cases that named the company	25
Shareholder Matters
Loss contingencies
Number of complaints | complaint				4
Number of complaints filed in Rhode Island | complaint				3