This excerpt taken from the CVS 8-K filed Nov 5, 2009.
During the third quarter of 2009, the Company made changes to its reportable segments to reflect changes that were made to the way the Companys management evaluates the performance of operations, develops strategy and allocates resources. This change involves the reclassification of certain administrative expenses previously recorded within the Pharmacy Services and Retail Pharmacy segments to a new Corporate segment. The Corporate segment consists of costs primarily associated with executive management, corporate relations, legal, compliance, human resources, corporate information technology and finance. This change had no impact on the Companys consolidated results of operations. As a result of this change, the Companys business now includes three segments: Pharmacy Services, Retail Pharmacy and Corporate. The Companys historical segment disclosures have been revised to conform to the current presentation.
During the third quarter of 2009, the Company also made a change to its Pharmacy Services segment as it relates to the Companys intersegment activities (such as the Maintenance Choice program). This change impacts the gross profit and operating profit lines within the Pharmacy Services segment. Under the Maintenance Choice program, Pharmacy Services customers can elect to pick-up their maintenance prescriptions at Retail Pharmacy segment stores instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail Pharmacy segments will now record the revenue, gross profit and operating profit on a standalone basis and corresponding intersegment eliminations are made. This change is reflected in the segment results in the third quarter of 2009 and in the nine months ended September 30, 2009. This change had no impact on the Companys consolidated results of operations.
As result of these segment changes, the Company has provided segment disclosures under the current and historical formats for each quarter in 2008 and 2009 in the Investor Relations section of the CVS Caremark website at www.cvscaremark.com/investors.