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Segment Information
 3 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Information
13. 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 performance for purposes of allocating resources and assessing 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)
2016
 
2015
Pharmaceutical
$
28,762

 
$
25,140

Medical
3,279

 
2,919

Total segment revenue
32,041

 
28,059

Corporate (1)
(2
)
 
(4
)
Total revenue
$
32,039

 
$
28,055

(1)
Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.
We evaluate segment performance based on 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 and compliance. The results attributable to noncontrolling interests are recorded within segment profit. Corporate expenses are allocated to the segments based on headcount, level of benefit provided and other ratable allocation methodologies.
We do not allocate the following items to our segments: last-in first-out, or ("LIFO"), inventory charges/(credits); restructuring and employee severance; amortization and other acquisition-related costs; impairments and (gain)/loss on disposal of assets; litigation (recoveries)/charges, net; other income, net; interest expense, net; loss on extinguishment of debt; and provision for income taxes.
In addition, certain investment spending, certain portions of enterprise-wide incentive compensation, 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 $1 million and $6 million for the three months ended September 30, 2016 and 2015, respectively.
The following table presents segment profit by reportable segment and Corporate:
 
Three Months Ended September 30,
(in millions)
2016
 
2015
Pharmaceutical
$
534

 
$
657

Medical
127

 
101

Total segment profit
661

 
758

Corporate
(126
)
 
(138
)
Total operating earnings
$
535

 
$
620


The following table presents total assets for each reportable segment and Corporate at:
(in millions)
September 30,
2016
 
June 30,
2016
Pharmaceutical
$
21,034

 
$
20,662

Medical
10,553

 
10,236

Corporate
2,819

 
3,224

Total assets
$
34,406

 
$
34,122