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Segment Information | 3 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Segment Information | 13. Segment Information Effective January 1, 2024, we operated under an updated organizational structure and re-aligned our reporting structure under two reportable segments: Pharma 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 Pharma 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 disaggregated revenue within the remaining operating segments, included in Other, and Corporate:
| Three Months Ended September 30,
(in millions) | 2024 |  | 2023
Pharmaceutical and Specialty Solutions | $ | 47,990 |  |  | $ | 50,588 |
Global Medical Products and Distribution | 3,123 |  |  | 3,032 |
Nuclear and Precision Health Solutions | 373 |  |  | 324 |
at-Home Solutions | 739 |  |  | 667 |
OptiFreight® Logistics | 74 |  |  | 60 |
Other | 1,186 |  |  | 1,051 |
Total segment revenue | 52,299 |  |  | 54,671 |
Corporate (1) | (22) |  |  | (21) |
Total revenue | $ | 52,277 |  |  | $ | 54,650 |
(1)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:
| Three Months Ended September 30,
(in millions) | 2024 |  | 2023
United States | $ | 51,891 |  |  | $ | 54,270 |
International | 408 |  |  | 401 |
Total segment revenue | 52,299 |  |  | 54,671 |
Corporate (1) | (22) |  |  | (21) |
Total revenue | $ | 52,277 |  |  | $ | 54,650 |
(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 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; we recognized a pre-tax goodwill impairment charge of $585 million during the three months ended September 30, 2023; •litigation (recoveries)/charges, net; •other (income)/expense, net; •interest expense, net; •loss on early extinguishment of debt; •provision for/(benefit from) income taxes In addition, certain investment spending and 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 $12 million and $6 million for the three months ended September 30, 2024 and 2023, respectively. The following table presents segment profit for the two reportable segments and the remaining operating segments, included in Other, and Corporate:
| Three Months Ended September 30,
(in millions) | 2024 |  | 2023
Pharmaceutical and Specialty Solutions | $ | 530 |  |  | $ | 456 |
Global Medical Products and Distribution | 8 |  |  | 12 |
Other (1) | 104 |  |  | 96 |
Total segment profit | 642 |  |  | 564 |
Corporate | (74) |  |  | (596) |
Total operating earnings/(loss) | $ | 568 |  |  | $ | (32) |
(1) Comprised of the remaining operating segments, Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight® Logistics. Segment Assets The following table presents total assets for two reportable segments and the remaining operating segments, included in Other, and Corporate:
(in millions) | September 30, 2024 |  | June 30, 2024
Pharmaceutical and Specialty Solutions | $ | 29,215 |  |  | $ | 29,149 |
Global Medical Products and Distribution | 7,148 |  |  | 7,047 |
Other | 2,611 |  |  | 2,606 |
Corporate | 4,085 |  |  | 6,319 |
Total assets | $ | 43,059 |  |  | $ | 45,121 |

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