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Segment Information
 3 Months Ended
Sep. 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 following table presents revenue for each reportable segment and Corporate:
 
Three Months Ended September 30
(in millions)
2014
 
2013
Pharmaceutical (1)
$
21,209

 
$
21,813

Medical
2,852

 
2,711

Total segment revenue
24,061

 
24,524

Corporate (2)
9

 
(1
)
Total revenue
$
24,070

 
$
24,523


(1)
Our pharmaceutical distribution contract with Walgreen Co. expired on August 31, 2013.
(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 $2 million and $3 million for the three months ended September 30, 2014 and 2013, respectively.
The following table presents segment profit by reportable segment and Corporate:
 
Three Months Ended September 30
(in millions)
2014
 
2013
Pharmaceutical
$
451

 
$
433

Medical
113

 
106

Total segment profit
564

 
539

Corporate
(98
)
 
(68
)
Total operating earnings
$
466

 
$
471