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Segment Information | 12 Months Ended
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Jun. 30, 2022
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. 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 pharmacies, including pharmacies in community health centers, 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. 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. This segment also distributes medical products to patients' homes in the United States through our Cardinal Health at-Home Solutions division. The following table presents revenue for each reportable segment and Corporate:
(in millions) | 2022 |  | 2021 |  | 2020
Pharmaceutical | $ | 165,491 |  |  | $ | 145,796 |  |  | $ | 137,495 |
Medical | 15,887 |  |  | 16,687 |  |  | 15,444 |
Total segment revenue | 181,378 |  |  | 162,483 |  |  | 152,939 |
Corporate (1) | (14) |  |  | (16) |  |  | (17) |
Total revenue | $ | 181,364 |  |  | $ | 162,467 |  |  | $ | 152,922 |
(1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following tables present revenue for each reportable segment and disaggregated revenue within our two reportable segments and Corporate:
(in millions) | 2022 |  | 2021 |  | 2020
Pharmaceutical Distribution and Specialty Solutions (1) (2) | $ | 164,580 |  |  | $ | 144,988 |  |  | $ | 136,693 |
Nuclear and Precision Health Solutions | 911 |  |  | 808 |  |  | 802 |
Pharmaceutical segment revenue | 165,491 |  |  | 145,796 |  |  | 137,495 |
Medical distribution and products (3) | 13,462 |  |  | 14,485 |  |  | 13,429 |
Cardinal Health at-Home Solutions | 2,425 |  |  | 2,202 |  |  | 2,015 |
Medical segment revenue | 15,887 |  |  | 16,687 |  |  | 15,444 |
Total segment revenue | 181,378 |  |  | 162,483 |  |  | 152,939 |
Corporate (4) | (14) |  |  | (16) |  |  | (17) |
Total revenue | $ | 181,364 |  |  | $ | 162,467 |  |  | $ | 152,922 |
(1)Products and services offered by our Specialty Solutions division are referred to as “specialty pharmaceutical products and services". (2)Comprised of all Pharmaceutical segment businesses except for Nuclear and Precision Health Solutions division. (3)Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division. (4)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) | 2022 |  | 2021 |  | 2020
United States | $ | 176,855 |  |  | $ | 157,756 |  |  | $ | 148,707 |
International | 4,523 |  |  | 4,727 |  |  | 4,232 |
Total segment revenue | 181,378 |  |  | 162,483 |  |  | 152,939 |
Corporate (1) | (14) |  |  | (16) |  |  | (17) |
Total revenue | $ | 181,364 |  |  | $ | 162,467 |  |  | $ | 152,922 |
(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); •surgical gown recall costs/(income); in connection with a voluntary recall for certain surgical gowns and a voluntary recall and field actions for surgical procedure packs containing affected gowns, we recognized a pre-tax charge of $85 million during fiscal 2020; •state opioid assessment related to prior fiscal years; in connection with the New York Opioid Stewardship Act as discussed further in Note 7, we recognized a pre-tax charge of $41 million during fiscal 2021; •restructuring and employee severance; •amortization and other acquisition-related costs; •impairments and (gain)/loss on disposal of assets; in connection with goodwill impairment testing for the Medical Unit as discussed further in Note 4, we recognized goodwill impairment charges of $2.1 billion during fiscal 2022; in connection with the divestiture of the Cordis business, we recognized a $60 million pre-tax write-down of the net assets held for sale during fiscal 2021; •litigation (recoveries)/charges, net; in connection with the opioid litigation as discussed further in Note 7, we recognized pre-tax charges of $1.17 billion and $5.63 billion during fiscal 2021 and 2020, respectively; •other (income)/expense, net; •interest expense, net; •loss on early extinguishment of debt; •(gain)/loss on sale of equity interest in naviHealth; in connection with the sale of our remaining equity interest in a partnership that owned naviHealth as discussed in Note 2, we recognized a $579 million pre-tax gain ($493 million after tax) during fiscal 2020; •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 $50 million, $27 million and $69 million for fiscal 2022, 2021 and 2020, respectively. The following tables present segment profit by reportable segment and Corporate:
(in millions) | 2022 |  | 2021 |  | 2020
Pharmaceutical | $ | 1,770 |  |  | $ | 1,684 |  |  | $ | 1,753 |
Medical | 216 |  |  | 577 |  |  | 663 |
Total segment profit | 1,986 |  |  | 2,261 |  |  | 2,416 |
Corporate | (2,582) |  |  | (1,789) |  |  | (6,514) |
Total operating earnings/(loss) | $ | (596) |  |  | $ | 472 |  |  | $ | (4,098) |
The following tables present depreciation and amortization and additions to property and equipment by reportable segment and Corporate:
(in millions) | 2022 |  | 2021 |  | 2020
Pharmaceutical | $ | 193 |  |  | $ | 151 |  |  | $ | 135 |
Medical | 216 |  |  | 226 |  |  | 243 |
Corporate | 283 |  |  | 406 |  |  | 535 |
Total depreciation and amortization | $ | 692 |  |  | $ | 783 |  |  | $ | 913 |
(in millions) | 2022 |  | 2021 |  | 2020
Pharmaceutical | $ | 79 |  |  | $ | 55 |  |  | $ | 47 |
Medical | 140 |  |  | 97 |  |  | 86 |
Corporate | 168 |  |  | 248 |  |  | 242 |
Total additions to property and equipment | $ | 387 |  |  | $ | 400 |  |  | $ | 375 |
The following table presents total assets for each reportable segment and Corporate at June 30:
(in millions) | 2022 |  | 2021 |  | 2020
Pharmaceutical | $ | 26,409 |  |  | $ | 23,624 |  |  | $ | 22,398 |
Medical (1) | 11,632 |  |  | 15,408 |  |  | 14,691 |
Corporate | 5,837 |  |  | 5,421 |  |  | 3,677 |
Total assets | $ | 43,878 |  |  | $ | 44,453 |  |  | $ | 40,766 |
(1) Assets of $1.1 billion classified as held for sale related to the Cordis divestiture were included within Medical at June 30, 2021. The following tables present property and equipment, net by geographic area:
(in millions) | 2022 |  | 2021 |  | 2020
United States | $ | 1,976 |  |  | $ | 1,958 |  |  | $ | 1,880 |
International | 385 |  |  | 402 |  |  | 486 |
Property and equipment, net | $ | 2,361 |  |  | $ | 2,360 |  |  | $ | 2,366 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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