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Segment Information | 12 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Segment Information | 15. 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. Revenue Our Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical and over-the-counter healthcare and consumer products in the United States. This segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; provides pharmacy management services to hospitals as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers; and repackages generic pharmaceuticals and over-the-counter healthcare products. Our Medical segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. We further expanded this segment's portfolio of manufactured products through the acquisition of the Patient Recovery Business from Medtronic in July 2017, which includes incontinence, wound care, enteral feeding, urology, operating room supply, electrode and needle, syringe and sharps disposal product lines. In addition to distributing Cardinal Health branded products, this segment also distributes a broad range of medical, surgical and laboratory products known as national brand products and provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States and Canada. The following table presents revenue for each reportable segment and Corporate:
(in millions) | 2019 |  | 2018 |  | 2017
Pharmaceutical | $ | 129,917 |  |  | $ | 121,241 |  |  | $ | 116,463 |
Medical | 15,633 |  |  | 15,581 |  |  | 13,524 |
Total segment revenue | 145,550 |  |  | 136,822 |  |  | 129,987 |
Corporate (1) | (16 | ) |  | (13 | ) |  | (11 | )
Total revenue | $ | 145,534 |  |  | $ | 136,809 |  |  | $ | 129,976 |
(1) | Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.
The following table presents disaggregated revenue within our two reportable segments:
| 2019
(in millions) |
Pharmaceutical Distribution and Specialty Solutions (1) | $ | 129,067 |
Nuclear and Precision Health Solutions | 850 |
Pharmaceutical segment revenue | 129,917 |
Medical distribution and products (2) | 13,833 |
Cardinal Health at-Home Solutions | 1,800 |
Medical segment revenue | 15,633 |
Total segment revenue | 145,550 |
Corporate (3) | (16 | )
Total revenue | $ | 145,534 |
(1) | Products and services offered by our Specialty Solutions division are referred to as “specialty pharmaceutical products and services"
(2) | Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division
(3) | Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.
The following table presents revenue by geographic area:
(in millions) | 2019 |  | 2018 |  | 2017
United States | $ | 141,479 |  |  | $ | 132,539 |  |  | $ | 125,017 |
International | 4,071 |  |  | 4,283 |  |  | 4,970 |
Total segment revenue | 145,550 |  |  | 136,822 |  |  | 129,987 |
Corporate (1) | (16 | ) |  | (13 | ) |  | (11 | )
Total revenue | $ | 145,534 |  |  | $ | 136,809 |  |  | $ | 129,976 |
(1) | Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.
Segment Profit 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, legal and compliance, including certain litigation defense costs. Corporate expenses are allocated to the segments based on headcount, level of benefit provided and other ratable allocation methodologies. The results attributable to noncontrolling interests are recorded within segment profit. 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)/expense, net; interest expense, net; loss on extinguishment of debt; and provision for/(benefit from) 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. Because approval for these projects is dependent on executive management, we retain these expenses at Corporate. Investment spending within Corporate was $55 million, $43 million and $17 million for fiscal 2019, 2018 and 2017, respectively. In connection with the naviHealth divestiture discussed in Note 2, we recognized a pre-tax gain of $508 million during fiscal 2019 which was retained at Corporate. The following tables present segment profit by reportable segment and Corporate:
(in millions) | 2019 |  | 2018 |  | 2017
Pharmaceutical | $ | 1,834 |  |  | $ | 1,992 |  |  | $ | 2,187 |
Medical | 576 |  |  | 662 |  |  | 572 |
Total segment profit | 2,410 |  |  | 2,654 |  |  | 2,759 |
Corporate | (350 | ) |  | (2,528 | ) |  | (639 | )
Total operating earnings | $ | 2,060 |  |  | $ | 126 |  |  | $ | 2,120 |
The following tables present depreciation and amortization and additions to property and equipment by reportable segment and Corporate:
(in millions) | 2019 |  | 2018 |  | 2017
Pharmaceutical | $ | 147 |  |  | $ | 156 |  |  | $ | 122 |
Medical | 288 |  |  | 278 |  |  | 156 |
Corporate | 565 |  |  | 598 |  |  | 439 |
Total depreciation and amortization | $ | 1,000 |  |  | $ | 1,032 |  |  | $ | 717 |
(in millions) | 2019 |  | 2018 |  | 2017
Pharmaceutical | $ | 35 |  |  | $ | 58 |  |  | $ | 50 |
Medical | 74 |  |  | 127 |  |  | 123 |
Corporate | 219 |  |  | 199 |  |  | 214 |
Total additions to property and equipment | $ | 328 |  |  | $ | 384 |  |  | $ | 387 |
The following table presents total assets for each reportable segment and Corporate at June 30:
(in millions) | 2019 |  | 2018 |  | 2017
Pharmaceutical | $ | 22,446 |  |  | $ | 21,421 |  |  | $ | 21,848 |
Medical | 15,284 |  |  | 16,066 |  |  | 10,688 |
Corporate | 3,233 |  |  | 2,464 |  |  | 7,576 |
Total assets | $ | 40,963 |  |  | $ | 39,951 |  |  | $ | 40,112 |
The following tables present property and equipment, net by geographic area:
(in millions) | 2019 |  | 2018 |  | 2017
United States | $ | 1,846 |  |  | $ | 1,950 |  |  | $ | 1,623 |
International | 510 |  |  | 537 |  |  | 256 |
Property and equipment, net | $ | 2,356 |  |  | $ | 2,487 |  |  | $ | 1,879 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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