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Segment Information | 12 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Information | 14. Segment Information Effective January 1, 2024, we operated under an updated organizational structure and re-aligned our reporting structure under two reportable segments: Pharmaceutical and Specialty Solutions segment and GMPD segment. All remaining operating segments that are not significant enough to require separate reportable segment disclosures are included in Other, which is comprised of Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics. 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 previously reported segment results have been recast to conform to this re-aligned reporting structure and reflect changes in the elimination of inter-segment revenue and allocated corporate technology and shared function expenses, which are driven by the reporting structure change. Our Pharmaceutical and Specialty Solutions 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; and repackages generic pharmaceuticals and over-the-counter healthcare products. Our GMPD segment manufactures, sources and distributes Cardinal Health brand medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. In addition to distributing Cardinal Health brand products, this segment also distributes a broad range of medical, surgical and laboratory products known as national brand products to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States and Canada. The remaining three non-reportable operating segments included in Other are Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics. These operating segments respectively operate nuclear pharmacies and radiopharmaceutical manufacturing facilities, distribute medical products to patients' homes in the United States and provide supply chain services and solutions to our customers. Revenue The following table presents revenue for the two reportable segments and the remaining operating segments, included in Other, and Corporate:
(in millions) | 2024 |  | 2023 |  | 2022
Pharmaceutical and Specialty Solutions | $ | 210,019 |  |  | $ | 188,814 |  |  | $ | 164,596 |
Global Medical Products and Distribution | 12,381 |  |  | 12,222 |  |  | 13,280 |
Other | 4,512 |  |  | 4,021 |  |  | 3,518 |
Total segment revenue | 226,912 |  |  | 205,057 |  |  | 181,394 |
Corporate (1) | (85) |  |  | (78) |  |  | (68) |
Total revenue | $ | 226,827 |  |  | $ | 204,979 |  |  | $ | 181,326 |
(1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following table presents revenue for the two reportable segments and disaggregated revenue within the remaining operating segments, included in Other, and Corporate:
(in millions) | 2024 |  | 2023 |  | 2022
Pharmaceutical and Specialty Solutions | $ | 210,019 |  |  | $ | 188,814 |  |  | $ | 164,596 |
Global Medical Products and Distribution | 12,381 |  |  | 12,222 |  |  | 13,280 |
Nuclear and Precision Health Solutions (2) | 1,369 |  |  | 1,197 |  |  | 911 |
at-Home Solutions | 2,869 |  |  | 2,584 |  |  | 2,394 |
OptiFreight® Logistics | 274 |  |  | 240 |  |  | 213 |
Other | 4,512 |  |  | 4,021 |  |  | 3,518 |
Total segment revenue | 226,912 |  |  | 205,057 |  |  | 181,394 |
Corporate (1) | (85) |  |  | (78) |  |  | (68) |
Total revenue | $ | 226,827 |  |  | $ | 204,979 |  |  | $ | 181,326 |
(1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. (2)Increase in 2023 relates to new product launches and changes in revenue presentation from agent to principal for certain customer contracts. The following table presents revenue by geographic area:
(in millions) | 2024 |  | 2023 |  | 2022
United States | $ | 225,231 |  |  | $ | 203,440 |  |  | $ | 179,471 |
International | 1,681 |  |  | 1,617 |  |  | 1,923 |
Total segment revenue | 226,912 |  |  | 205,057 |  |  | 181,394 |
Corporate (1) | (85) |  |  | (78) |  |  | (68) |
Total revenue | $ | 226,827 |  |  | $ | 204,979 |  |  | $ | 181,326 |
(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 technology and shared functions expenses, 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 operating 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); •state opioid assessment related to prior fiscal years; •shareholder cooperation agreement costs; •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 GMPD segment as discussed further in Note 5, we recognized pre-tax goodwill impairment charges of $675 million, $1.2 billion and $2.1 billion during fiscal 2024, 2023 and 2022, respectively; •litigation (recoveries)/charges, net; •other (income)/expense, net; •interest expense, net; •loss on early extinguishment of debt; or •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 $59 million, $35 million and $50 million for fiscal 2024, 2023 and 2022, respectively. The following table presents segment profit for the two reportable segments and the remaining operating segments, included in Other, and Corporate:
(in millions) | 2024 |  | 2023 |  | 2022
Pharmaceutical and Specialty Solutions | $ | 2,015 |  |  | $ | 1,881 |  |  | $ | 1,643 |
Global Medical Products and Distribution | 92 |  |  | (147) |  |  | (64) |
Other | 423 |  |  | 396 |  |  | 390 |
Total segment profit | 2,530 |  |  | 2,130 |  |  | 1,969 |
Corporate | (1,287) |  |  | (1,378) |  |  | (2,576) |
Total operating earnings/(loss) | $ | 1,243 |  |  | $ | 752 |  |  | $ | (607) |
The following tables present depreciation and amortization and additions to property and equipment for the two reportable segments and the remaining operating segments, included in Other, and Corporate:
(in millions) | 2024 |  | 2023 |  | 2022
Pharmaceutical and Specialty Solutions | $ | 184 |  |  | $ | 194 |  |  | $ | 170 |
Global Medical Products and Distribution | 205 |  |  | 173 |  |  | 176 |
Other | 79 |  |  | 71 |  |  | 65 |
Corporate | 242 |  |  | 254 |  |  | 281 |
Total depreciation and amortization | $ | 710 |  |  | $ | 692 |  |  | $ | 692 |
(in millions) | 2024 |  | 2023 |  | 2022
Pharmaceutical and Specialty Solutions | $ | 76 |  |  | $ | 56 |  |  | $ | 54 |
Global Medical Products and Distribution | 136 |  |  | 191 |  |  | 135 |
Other | 81 |  |  | 52 |  |  | 30 |
Corporate | 218 |  |  | 182 |  |  | 168 |
Total additions to property and equipment | $ | 511 |  |  | $ | 481 |  |  | $ | 387 |
The following table presents total assets for the two reportable segments and the remaining operating segments, included in Other, and Corporate at June 30:
(in millions) | 2024 |  | 2023 |  |
Pharmaceutical and Specialty Solutions | $ | 29,149 |  |  | $ | 27,715 |  |  |
Global Medical Products and Distribution (1) | 7,047 |  |  | 7,903 |  |  |
Other | 2,606 |  |  | 2,514 |  |  |
Corporate | 6,319 |  |  | 5,217 |  |  |
Total assets | $ | 45,121 |  |  | $ | 43,349 |  |  |
(1)GMPD reflects a $675 million reduction in goodwill due to pre-tax impairment charges recorded during fiscal 2024. The following table presents property and equipment, net by geographic area:
(in millions) | 2024 |  | 2023 |  |
United States | $ | 2,106 |  |  | $ | 2,025 |  |  |
International | 423 |  |  | 436 |  |  |
Property and equipment, net | $ | 2,529 |  |  | $ | 2,461 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. 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