Segment Information

9 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

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 our performance for purposes of allocating resources and assessing performance combined with the nature of the individual business activities.

The following tables present revenue for each reportable segment and Corporate:

	Three Months Ended March 31
(in millions)	2015			2014
Pharmaceutical	$	22,605		$	18,762
Medical	2,774			2,657
Total segment revenue	25,379			21,419
Corporate (1)	(4		)	8
Total revenue	$	25,375		$	21,427

	Nine Months Ended March 31
(in millions)	2015		2014
Pharmaceutical (2)	$	66,440	$	60,018
Medical	8,540		8,168
Total segment revenue	74,980		68,186
Corporate (1)	3		4
Total revenue	$	74,983	$	68,190

(1) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.

(2) Our pharmaceutical distribution contract with Walgreen Co. expired on August 31, 2013.

We evaluate segment performance based upon segment profit, among other measures. Segment profit is segment revenue, less segment cost of products sold, less segment 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. Corporate expenses are allocated to the segments based upon headcount, level of benefit provided and other ratable allocation methodologies.

We do not allocate the following items to our segments: restructuring and employee severance; amortization and other acquisition-related costs; impairments and (gain)/loss on disposal of assets; litigation (recoveries)/charges; other income, net; interest expense, net; loss on extinguishment of debt; and, provision for income taxes. In addition, certain investment 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. We encourage our segments and corporate functions to identify investment projects that will promote innovation and provide future returns. As approval decisions for such projects are dependent upon executive management, the expenses for such projects are often retained at Corporate. Investment spending within Corporate was $6 million and $7 million for the three months ended March 31, 2015 and 2014, respectively, and $12 million and $17 million for the nine months ended March 31, 2015 and 2014, respectively.

The following tables present segment profit by reportable segment and Corporate:

	Three Months Ended March 31
(in millions)	2015			2014
Pharmaceutical	$	567		$	452
Medical	102			111
Total segment profit	669			563
Corporate	(78		)	(55		)
Total operating earnings	$	591		$	508

	Nine Months Ended March 31
(in millions)	2015			2014
Pharmaceutical	$	1,559		$	1,368
Medical	330			348
Total segment profit	1,889			1,716
Corporate	(286		)	(218		)
Total operating earnings	$	1,603		$	1,498

The following table presents total assets for each reportable segment and Corporate at:

(in millions)	March 31, 2015		June 30, 2014
Pharmaceutical	$	16,655	$	15,361
Medical	7,183		6,768
Corporate	4,050		3,904
Total assets	$	27,888	$	26,033