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Segment Information | 9 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Segment Information | 12. 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. 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; provides pharmacy management services to hospitals and operates a limited number of pharmacies, including pharmacies in community health centers; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; and connects pharmacists, payers and pharmaceutical companies and delivers health solutions for medication therapy management, digital patient engagement and telepharmacy; 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. Revenue The following tables present revenue for each reportable segment and disaggregated revenue within our two reportable segments and Corporate:
| Three Months Ended March 31,
(in millions) | 2023 |  | 2022
Pharmaceutical Distribution and Specialty Solutions (1) (2) | $ | 46,497 |  |  | $ | 40,723 |
Nuclear and Precision Health Solutions (3) | 312 |  |  | 234 |
Pharmaceutical segment revenue | 46,809 |  |  | 40,957 |
Medical distribution and products (4) | 3,034 |  |  | 3,283 |
Cardinal Health at-Home Solutions | 650 |  |  | 601 |
Medical segment revenue | 3,684 |  |  | 3,884 |
Total segment revenue | 50,493 |  |  | 44,841 |
Corporate (5) | (6) |  |  | (5) |
Total revenue | $ | 50,487 |  |  | $ | 44,836 |
| Nine Months Ended March 31,
(in millions) | 2023 |  | 2022
Pharmaceutical Distribution and Specialty Solutions (1) (2) | $ | 139,435 |  |  | $ | 121,501 |
Nuclear and Precision Health Solutions (3) | 875 |  |  | 653 |
Pharmaceutical segment revenue | 140,310 |  |  | 122,154 |
Medical distribution and products (4) | 9,273 |  |  | 10,296 |
Cardinal Health at-Home Solutions | 1,986 |  |  | 1,822 |
Medical segment revenue | 11,259 |  |  | 12,118 |
Total segment revenue | 151,569 |  |  | 134,272 |
Corporate (5) | (10) |  |  | (11) |
Total revenue | $ | 151,559 |  |  | $ | 134,261 |
(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)Increase from prior year relates to new product launches and changes in revenue recognition presentation from agent to principal for certain customer contracts. (4)Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division. (5)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following tables present revenue by geographic area:
| Three Months Ended March 31,
(in millions) | 2023 |  | 2022
United States | $ | 49,326 |  |  | $ | 43,710 |
International | 1,167 |  |  | 1,131 |
Total segment revenue | 50,493 |  |  | 44,841 |
Corporate (1) | (6) |  |  | (5) |
Total revenue | $ | 50,487 |  |  | $ | 44,836 |
| Nine Months Ended March 31,
(in millions) | 2023 |  | 2022
United States | $ | 148,136 |  |  | $ | 130,933 |
International | 3,433 |  |  | 3,339 |
Total segment revenue | 151,569 |  |  | 134,272 |
Corporate (1) | (10) |  |  | (11) |
Total revenue | $ | 151,559 |  |  | $ | 134,261 |
(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 and 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); •shareholder cooperation agreement costs; •state opioid assessment related to prior fiscal years; •restructuring and employee severance; •amortization and other acquisition-related costs; •impairments and (gain)/loss on disposal of assets, net; in connection with goodwill impairment testing for the Medical Unit as discussed further in Note 4, we recognized cumulative goodwill impairment charges of $863 million during the nine months ended March 31, 2023; •litigation (recoveries)/charges, net; •other (income)/expense, net; •interest expense, net; •loss on early extinguishment of debt; •(gain)/loss on sale of equity interest in naviHealth; or •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. Because approval for these projects is dependent on executive management, we retain these expenses at Corporate. Investment spending within Corporate was $9 million and $20 million for the three months ended March 31, 2023 and 2022, and $20 million and $38 million for the nine months ended March 31, 2023 and 2022, respectively. The following tables present segment profit by reportable segment and Corporate:
| Three Months Ended March 31,
(in millions) | 2023 |  | 2022
Pharmaceutical (1) | $ | 600 |  |  | $ | 487 |
Medical | 20 |  |  | 59 |
Total segment profit | 620 |  |  | 546 |
Corporate | (48) |  |  | (643) |
Total operating earnings/(loss) | $ | 572 |  |  | $ | (97) |
| Nine Months Ended March 31,
(in millions) | 2023 |  | 2022
Pharmaceutical (1) | $ | 1,495 |  |  | $ | 1,319 |
Medical | 29 |  |  | 232 |
Total segment profit | 1,524 |  |  | 1,551 |
Corporate | (934) |  |  | (2,183) |
Total operating earnings/(loss) | $ | 590 |  |  | $ | (632) |
(1)Pharmaceutical segment profit includes opioid-related litigation defense and compliance costs, but does not include a one-time contingent attorney fee of $18 million incurred during the three and nine months ended March 31, 2022 related to the finalization of the Settlement Agreement. Due to the unique nature and significance of the Settlement Agreement, and the one-time, contingent nature of the fee, this related fee was included in litigation (recoveries)/charges, net in the condensed consolidated statements of earnings/(loss). Additionally, pharmaceutical segment profit during the nine months ended March 31, 2022 was positively impacted by a $16 million judgment for lost profits related to an ordinary course intellectual property rights claim. The following table presents total assets for each reportable segment and Corporate at:
(in millions) | March 31, 2023 |  | June 30, 2022
Pharmaceutical | $ | 27,954 |  |  | $ | 26,409 |
Medical (1) | 10,544 |  |  | 11,632 |
Corporate | 4,879 |  |  | 5,837 |
Total assets | $ | 43,377 |  |  | $ | 43,878 |
(1)Medical reflects cumulative $863 million goodwill impairment charges recorded in connection with the interim goodwill impairment testing for the Medical Unit during the nine months ended March 31, 2023.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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