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Segment Information
 12 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
Our operations are principally managed on a products and services basis and are comprised of two operating segments, which are the same as our reportable segments: Pharmaceutical and Medical. The factors for determining the reportable segments include the manner in which management evaluates our performance combined with the nature of the individual business activities.
The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products in the United States. This segment also operates nuclear pharmacies and cyclotron facilities, provides pharmacy services to hospitals and other healthcare facilities, and provides services to healthcare companies supporting the marketing, distribution and payment for specialty pharmaceutical products. Through our Cardinal Health China division, this segment imports and distributes pharmaceuticals, over-the-counter healthcare and consumer products as well as provides specialty pharmacy and other services in China.
The Medical segment distributes a broad range of medical, surgical and laboratory products to hospitals, ambulatory surgery centers, clinical laboratories, physician offices and other healthcare providers in the United States, Canada and China and to patients in the home in the United States. This segment also manufactures, sources and develops its own line of private brand medical and surgical products. Our medical and surgical products are sold directly or through third-party distributors in the United States, Canada, Europe and other regions internationally.
The following table presents revenue for each reportable segment and Corporate:
(in millions)
2014
 
2013
 
2012
Pharmaceutical (1)
$
80,110

 
$
91,097

 
$
97,925

Medical
10,962

 
10,060

 
9,642

Total segment revenue
91,072

 
101,157

 
107,567

Corporate (2)
12

 
(64
)
 
(15
)
Total revenue
$
91,084

 
$
101,093

 
$
107,552


(1)
Our pharmaceutical distribution contract with Walgreens expired on August 31, 2013. Our pharmaceutical distribution contract with Express Scripts, Inc. expired on September 30, 2012.
(2)
Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.
We evaluate segment performance based upon segment profit, among other measures. Segment profit is segment revenue, less segment cost of products sold, less segment SG&A expenses. Segment SG&A expenses include share-based compensation expense as well as allocated corporate expenses for shared functions, including corporate management, corporate finance, financial and customer care shared services, human resources, information technology and legal. Corporate expenses are allocated to the segments based upon headcount, level of benefit provided and other ratable allocation methodologies. Other income, net, interest expense, net and provision for income taxes are not allocated to the segments.
Restructuring and employee severance, amortization and other acquisition-related costs, impairments and loss on disposal of assets and litigation (recoveries)/charges, net are not allocated to the segments. In addition, certain investment and other spending are not allocated to the segments. Investment spending generally includes the first-year spend for certain projects that require incremental investments in the form of additional operating expenses. We encourage our segments and corporate functions to identify investment projects that will promote innovation and provide future returns. As approval decisions for such projects are dependent upon executive management, the expenses for such projects are often retained at Corporate. Investment spending within Corporate was $33 million, $37 million and $21 million for fiscal 2014, 2013 and 2012, respectively.
The following table presents segment profit by reportable segment and Corporate:
(in millions)
2014
 
2013
 
2012
Pharmaceutical
$
1,745

 
$
1,734

 
$
1,558

Medical
444

 
372

 
332

Total segment profit
2,189

 
2,106

 
1,890

Corporate
(304
)
 
(1,110
)
 
(98
)
Total operating earnings
$
1,885

 
$
996

 
$
1,792


The following tables present depreciation and amortization and additions to property and equipment by reportable segment and at Corporate:
(in millions)
2014
 
2013
 
2012
Pharmaceutical
$
128

 
$
125

 
$
114

Medical
130

 
137

 
119

Corporate
201

 
135

 
92

Total depreciation and amortization
$
459

 
$
397

 
$
325


(in millions)
2014
 
2013
 
2012
Pharmaceutical
$
72

 
$
46

 
$
44

Medical
72

 
48

 
100

Corporate
105

 
101

 
116

Total additions to property and equipment
$
249

 
$
195

 
$
260


The following table presents total assets for each reportable segment and Corporate at June 30:
(in millions)
2014
 
2013
 
2012
Pharmaceutical
$
15,361

 
$
16,258

 
$
16,642

Medical
6,768

 
6,521

 
4,399

Corporate
3,904

 
3,040

 
3,219

Total assets
$
26,033

 
$
25,819

 
$
24,260


The following tables present revenue and property and equipment, net by geographic area:
(in millions)
2014
 
2013
 
2012
United States
$
87,449

 
$
97,994

 
$
105,205

International
3,635

 
3,099

 
2,347

Total revenue
$
91,084

 
$
101,093

 
$
107,552

(in millions)
2014
 
2013
 
2012
United States
$
1,301

 
$
1,355

 
$
1,425

International
158

 
134

 
126

Property and equipment, net
$
1,459

 
$
1,489

 
$
1,551