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Segment Information
 6 Months Ended
Dec. 31, 2013
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 following tables present revenue for each reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated statements of earnings:
 
Three Months Ended December 31
(in millions)
2013
 
2012
Pharmaceutical (1)
$
19,443

 
$
22,747

Medical
2,799

 
2,487

Total segment revenue
22,242

 
25,234

Corporate (2)
(2
)
 
(2
)
Total revenue
$
22,240

 
$
25,232


 
Six Months Ended December 31
(in millions)
2013
 
2012
Pharmaceutical (1)
$
41,256

 
$
46,244

Medical
5,511

 
4,879

Total segment revenue
46,767

 
51,123

Corporate (2)
(4
)
 
(2
)
Total revenue
$
46,763

 
$
51,121


(1)
The decrease in Pharmaceutical segment revenue is primarily due to the expiration of our pharmaceutical distribution contract with Walgreens.
(2)
Corporate revenue consists of the elimination of inter-segment revenue.
We evaluate segment performance based upon segment profit, among other measures. Segment profit is segment revenue, less segment cost of products sold, less segment distribution, selling, general and administrative ("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 ratable allocation. 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 $6 million and $7 million for the three months ended December 31, 2013 and 2012, respectively, and $10 million and $7 million for the six months ended December 31, 2013 and 2012, respectively.
The following tables present segment profit by reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated statements of earnings:
 
Three Months Ended December 31
(in millions)
2013
 
2012
Pharmaceutical
$
482

 
$
441

Medical
131

 
94

Total segment profit
613

 
535

Corporate
(94
)
 
(29
)
Total operating earnings
$
519

 
$
506


 
Six Months Ended December 31
(in millions)
2013
 
2012
Pharmaceutical
$
916

 
$
841

Medical
238

 
168

Total segment profit
1,154

 
1,009

Corporate
(164
)
 
(46
)
Total operating earnings
$
990

 
$
963


The following table presents total assets for each reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated balance sheets at the dates indicated below:
(in millions)
December 31,
2013
 
June 30,
2013
Pharmaceutical (1)
$
14,985

 
$
16,258

Medical
6,558

 
6,521

Corporate
3,466

 
3,040

Total assets
$
25,009

 
$
25,819

(1)
The decrease in Pharmaceutical segment assets is primarily due to the expiration of our pharmaceutical distribution contract with Walgreens.