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Segment Information
 6 Months Ended
Dec. 31, 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 December 31,
(in millions)
2016
 
2015
Pharmaceutical
$
29,743

 
$
28,287

Medical
3,410

 
3,162

Total segment revenue
33,153

 
31,449

Corporate (1)
(3
)
 
(4
)
Total revenue
$
33,150

 
$
31,445

 
Six Months Ended December 31,
(in millions)
2016
 
2015
Pharmaceutical
$
58,505

 
$
53,427

Medical
6,690

 
6,081

Total segment revenue
65,195

 
59,508

Corporate (1)
(6
)
 
(9
)
Total revenue
$
65,189

 
$
59,499

(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: 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 $5 million for the three months ended December 31, 2016 and 2015, respectively, and $2 million and $11 million for the six months ended December 31, 2016 and 2015, respectively.
The following table presents segment profit by reportable segment and Corporate:
 
Three Months Ended December 31,
(in millions)
2016
 
2015
Pharmaceutical
$
537

 
$
627

Medical
159

 
106

Total segment profit
696

 
733

Corporate
(154
)
 
(170
)
Total operating earnings
$
542

 
$
563

 
Six Months Ended December 31,
(in millions)
2016
 
2015
Pharmaceutical
$
1,071

 
$
1,285

Medical
286

 
207

Total segment profit
1,357

 
1,492

Corporate
(281
)
 
(309
)
Total operating earnings
$
1,076

 
$
1,183



The following table presents total assets for each reportable segment and Corporate at:
(in millions)
December 31,
2016
 
June 30,
2016
Pharmaceutical
$
21,874

 
$
20,662

Medical
10,600

 
10,236

Corporate
2,547

 
3,224

Total assets
$
35,021

 
$
34,122