CVS 2015 Annual Report Download - page 26

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Management’s Discussion and Analysis
of Financial Condition and Results of Operations
24 CVS Health
Our Retail/LTC Segment also provides health care services through our 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.
We believe our clinics provide high quality services that are affordable and convenient. Through the acquisition of
Target’s clinics, we added 79 clinics in December 2015.
Our proprietary loyalty card program, ExtraCare®, has about 70 million active cardholders, making it one of the
largest and most successful retail loyalty card programs in the country.
As of December 31, 2015, our Retail/LTC Segment included 9,655 retail stores (of which 7,897 were our stores that
operated a pharmacy and 1,672 were our pharmacies located within Target store) located in 49 states, the District
of Columbia, Puerto Rico and Brazil operating primarily under the CVS Pharmacy®, CVS®, Longs Drugs®, Navarro
Discount Pharmacy® and Drogaria OnofreTM names, 32 onsite pharmacies primarily operating under the CarePlus
CVS PharmacyTM, CarePlus® and CVS Pharmacy® names, and 1,135 retail health care clinics operating under the
MinuteClinic® name (of which 1,049 were located in CVS Pharmacy stores), and our online retail websites, CVS.com®,
Navarro.comTM and Onofre.com.brTM. LTC operations are comprised of 143 spoke pharmacies that primarily handle
new prescription orders, of which 32 are also hub pharmacies that use proprietary automation to support spoke
pharmacies with refill prescriptions. LTC operates primarily under the Omnicare® and NeighborCare® names.
Overview of Our Corporate Segment
The Corporate Segment provides management and administrative services to support the Company. The Corporate
Segment consists of certain aspects of our executive management, corporate relations, legal, compliance, human
resources, corporate information technology and finance departments.
Results of Operations
Summary of our Consolidated Financial Results
YEAR ENDED DECEMBER 31,
IN MILLIONS, EXCEPT PER SHARE AMOUNTS 2015 2014 2013
Net revenues
$ 153,290
$ 139,367 $ 126,761
Cost of revenues
126,762
114,000 102,978
Gross profit
26,528
25,367 23,783
Operating expenses
17,074
16,568 15,746
Operating profit
9,454
8,799 8,037
Interest expense, net
838
600 509
Loss on early extinguishment of debt
—
521 —
Income before income tax provision
8,616
7,678 7,528
Income tax provision
3,386
3,033 2,928
Income from continuing operations
5,230
4,645 4,600
Income (loss) from discontinued operations, net of tax
9
(1) (8)
Net income
5,239
4,644 4,592
Net income attributable to noncontrolling interest
(2)
— —
Net income attributable to CVS Health
$ 5,237
$ 4,644 $ 4,592
Diluted earnings per share:
Income from continuing operations attributable to CVS Health
$ 4.62
$ 3.96 $ 3.75
Income (loss) from discontinued operations attributable to CVS Health
$ 0.01
$ — $ (0.01)
Net income attributable to CVS Health
$ 4.63
$ 3.96 $ 3.74